Major Research Project On

Comparision of car loan schemes of HDFC and SBI in Indore

A dissertation submitted in partial fulfillment of Masters of business administration (2007-2009)

Guided by:
Mrs Vishakha kutumbale Lecturer SOE DAVV, Indore

Submitted By:


I undersigned hereby declare that the project titled

‘Comparision of car loan schemes of HDFC and SBI in Indore’ is based on my own authentic work. The work done by others if referred has been properly acknowledged.

To whomsoever it may concern. This is to certify that Ms. Vibha Saboo has completed her Major Research Project titled ‘Comparision of car loan schemes of HDFC and SBI in Indore’ under my supervision. This project is the original work of the candidate. I am fully satisfied with the project work and recommend its acceptance in the partial fulfillment of the award of the degree of Masters Of Business Administration.

Mrs. Vishakha Kutumbale Lecturer SOE DAVV, Indore.

The greatest gift of all is knowledge. A person cannot learn on his own but requires constant support, encouragement and guidance, it has been said that Gratitude is the most sincere expression from the heart. I take this opportunity to express my gratitude to the many who have contributed to the successful completion of this dissertation. I have been very fortunate in having a knowledgeable astute and guide Mrs Vishakha kutumbale (faculty, SOE, Indore) whose consecration, approbation and encouragements made it possible for me to complete the project. Her knowledge and instructions enabled me to develop a clear framework for the study. It is a great pleasure for me to express my deep sense of respect and gratitude to Dr. Ganesh Kawadia (Head of the Department) for his timely encouragement and constructive criticism during the entire project. I would also like to thank the entire faculties without whose co-operation and kind consideration this project would’ve been incomplete. Words fail me as I thank my family members for their constant encouragement, support and endeavors throughout the project. Last but not the least I thank my friends whose strong support provided me this diligent sense of achievement. Vibha Saboo MBA (FS) – IV sem

Table of contents

Introduction Literature Review Research Objective Research methodology  Subject  Sampling Method  Data collection tools  Data analysis tools Customer Survey: Questionnaire Findings and Suggestions Bibliography

Personal car loans are one such loan plan.. And with high disposable incomes comes an urge to upgrade your lifestyle! And what can be a better way of upgrading your lifestyle than buying a car? This is especially true since you have so many lenders eager and willing to extend a loan for your vehicle purchase. For most of the individuals cars are meant only for those who can afford it. Under these loans you can obtain 80-90% of the total amount required to finance the car. However. Usually the buyer is routed to the banks through the car dealer (new and old). The dealers even help in cutting down the interest rate for the buyers’ sake. With these loans you have the requisite finance to purchase car of any make or model available in the market today.. The car loan rate today is higher than ever before. The car loan rates are as high as 13-14 percent per annum and are set to increase further.Introduction Car Loans – More Than Meets the Eye With the income levels rising in India. The amount can be paid back in easy instalments over a Period of 5-7 years. making the purchase of your dream car so easy. . a hard bargaining can cut the interest rates. However now there are several loan plans available in the financial market which is meant to provide adequate finances to the individuals who are looking forward to buy their dream car. many families have a high disposable income these days. One chief reason is that most individuals do not have the finances required to afford it. from where a purchase is imminent. Almost 80 percent of the auto sales are financed by loans in India.

Buyers are not aware that it is not the bank that is actually cutting down the interest rates. who agrees to pay the charges equal to the reduced rates. agents and dealers. Car dealers who achieve sales above the target offer higher discounts than other dealer with the same manufacturer. Public sector banks and private banks offer car loans at varying rates (difference in a few basis points also count). agents and dealers help to reduce the interest rates. Dealers receive incentives on sales when they meet the target of the manufacturers. All banks function under the same base rate that is applicable to each and every loan. The bank charges fees for providing this service to the manufacturer. The car manufacturer selects banks that have a wide network and deep penetration across the country. but the manufacturers. The lending institution has the freedom to reduce the pricing of car loan. How the manufacturer. can contribute while the buyer gets a loan at apparently reduced rates. banks have a facility where car manufacturers. Apart from the base rates. . Mostly the bankers or dealers aid to reduce the interest rates by 1 percent to 1. In return the manufacturer pass on these charges to the car buyer in the form of car loan. The lending institutions include the incentives in the pricing of the car loan. The dealer discount: Dealers are the retailers for car in the auto sector.5 percent at the maximum. This is done at the behest of the car dealer. dealers and agents who contribute to lower the interest rate on behalf of them. Each of these dealers is associated with different car manufacturer and retail products. This is the benefit that a buyer gets in a competitive market. But these points can help save a lot of money in the long run. The car manufacturer’s financial aid: Financial incentives are offered by the car manufacturers to selected lending institutions in order to push sales of their cars.

When buyer gets agents discounts it is mostly standard commission. the agent helps to reduce the car loan amount. The secured option of the loan is preferable in case you are looking for a bigger amount. these loans are offered broadly in two categories of secured and unsecured option. which in turn affects the interest rates. Since there is an asset to bank upon. As these loans are entirely crafted to help you purchase your dream car. then you should go for unsecured option of the loans. they are called co-applicants. Car Loan Finance can be taken either singly or jointly.the standard rate and the incentives on target achievement. there are also some additional benefits that may come along such as free . To avail this option. you have to pledge any valuable asset such as home. The approved amount depends mostly on the equity value of the collateral. non homeowners. By giving away the standard commission. Applying for personal car loans In general. The dealer negotiates the discount based on the contribution made by the agent on the sales performance of the dealership. Moreover the collateral free condition paves the way for borrowers like tenants.The agent’s interest: The agents are the key people who actually help a buyer to complete all the formalities for a car loan. The agent is the person who negotiates with the dealers for the discounts. The agent receives a commission from both the bank and the dealer. if there are more than one persons looking for Car Finance. These loans can be obtained without involving any collateral. lenders offer these loans at comparatively low rates. The discounts depend upon the number of cars sold from the dealership by the agents. The presence of the collateral assures the lender that the amount is safe and will be duly returned. and students etc to obtain the finances. real estate etc as collateral. When more than one person seeks Car Finance. If you are thinking of availing a smaller amount. Banks have two types of commissions .

After giving a notice to the Hirer. the Hirer has to pay for the deficiency in case there is a shortfall. discount on the accessories and upholsteries. The Customer has a choice to repay the loan. hiring. or using the Vehicle. Here. and the amount of the loan. In case of default. depending on your capacity to repay loan. The amount of EMI is dependent on three factors: the loan term. Registration amount and Insurance: For an individual. Margin Money Scheme / Regular Auto Loan (finance option) This is the most basic. you pay your share of the cost of car – called the Margin Money – and the bank gives the rest as a loan. .6% of the showroom price. accidental cover etc. the Registration amount is 3. and it is a method of repaying the loan. The Hirer also has to pay for any damages caused to the Vehicle. Immediate possession can be taken by the authorized official recruited by the Finance Company by entering the premises where the Vehicle is kept. The options are available from 1-7 years. the Finance Company has the options of selling. and the most popular cover. Insurance rate applicable for both individuals and companies is at a flat rate of 3. For a company. the bank finances 85 – 90% of the cost of the car. Thus.5% of the showroom price. Time Duration or Tenure of the Loan: The time period in which the Customer has to repay the loan to the Finance Company is called the Tenure. the rate of interest. The margin money is usually 10 – 15% of the cost of the car.5% of the showroom price of the car. If the Vehicle is resold. the options open for the Finance Company are: It may be demanded by the Finance Company that the Vehicle is returned to the company. EMI (Equated Monthly Instalments): An EMI comprises of a part of the Principal and the interest. it is 10.

But since the tenure is long. Some banks do offer zero prepayment penalty – especially during special promotions.5% of the loan amount. interest rate on loans for used cars is higher than the rate of interest for new cars – it is higher by 2 – 4%. which you give in the form of Post Dated Cheques (PDCs). and therefore would end up paying a lot more in the form of interest compared to a shorter duration loan. It can be anywhere from 0% to 2. As the tenure increases. Tenure: The tenure of this type of auto loan is usually 1 to 7 years. Prepayment Penalty: There is a heavy prepayment penalty in case you want to pay back your car loan ahead of schedule – it ranges from 4% to 6% of the outstanding loan amount. Processing / Administrative Charges: This is a fee to cover the administrative expenses that the bank incurs to process your loan application. a higher tenure would enable you to opt for a higher loan amount. Thus.You repay the loan in the form of Equated Monthly Instalments (EMIs). Also. Rate of Interest: The rate of interest on auto loans is higher than home loans. . you would pay many EMIs. the bank may stipulate that you would incur a fee if you prepay more than 10% of your outstanding loan amount. The rate of interest for loans of longer duration is usually higher than the rate of interest on shorter duration loans. the monthly EMI reduces for the same loan amount. There can also be a limit to the amount you can prepay – for example. but is normally lower than personal loans. The current rates of interest for car loans (for new cars) range from 10% to 16%.

This is usually a small amount (Rs. but still pay a higher EMI (and higher interest) because the EMI is calculated on 100% of the amount. 94. you get loan for 100% of the cost of the car. This means that you get a loan that is less than 100% of the cost of the car. if you avail a loan of Rs. the amount they spend on stamp papers. but still pay a higher EMI (and higher interest) because the EMI is calculated on 100% of the amount. 200 to Rs. you would end up getting only Rs.This fee has an effect of decreasing your loan amount (and therefore. 1000). Variants of Margin Money Scheme Advance Equated Monthly Instalments (Advance EMI) Scheme: Here. The deposit. you get a loan that is only 70 – 90% of the cost of the car. Again. 00. but should anyway be considered while comparing loans from various banks. and the bank finances 100% of the car value. Security Deposit Scheme: In this scheme. 3. But the caveat is that you have to pay 4 to 8 EMIs in advance. but this interest is lower than the interest on your loan. You earn an interest on this deposit. Some prominent auto finance providers are: • • State Bank of India (SBI) HDFC Bank . Auto / Car Loan Players All the major banks and NBFCs offer auto / car loans. along with the interest. 2. you pay 10 to 30% of the loan amount to the bank as a security deposit for the loan. Documentation Charges: Many banks charge documentation charge to cover their expense of documentation of your loan – for example. is returned to you once you repay the entire loan.000.000 with a processing fee of 2%. For example. increasing the cost of your loan).

They are known for their customer friendly attitude and little documentation. but the public sector banks are really bad while offering car loans. they . Most buyers in India are first time car owners. Various Banking as well as Non-Banking Financial Companies are offering Car Loan Finance such as Citibank. difference between them is striking. Their network ensures easy buying. or private banks that advertise aggressively. it is viable. We cannot say that one is definitely better than the other. Processing paperwork takes longer time in case of Banks. Saraswat Bank. Maruti Finance. and Sundaram Finance etc. They will easily choose to take a loan from bank where they have an account.• • • ICICI Bank Citi Bank Axis Bank (Formerly. Private Banks have a complicated system of fines. registering and insuring a car. UTI Bank) PUBLIC OR PRIVATE BANK CAR LOANS Bank is the easiest source to get a Car Loan Finance. Nationalised or Private Bank – which is better for car loans? Almost 85 percent of auto sales in India are supported by loans. The scenario of Car Loan Finance in India is quite eminent. The rate of interests for used cars is cheaper when compared to nationalised banks. but the same for new cars is very high. which are very popular in urban and semi-urban areas. Private Banks First let us look at private banks. in case of delay in re-payment. SBI Car Loans. HDFC Bank. Some other Finance Companies are providing better service than Banks. Nearly 40 percent of them are car buyers and the percentage is only growing. as each of them have their own advantages and disadvantages. sometimes within two days. Loans get released in few days. If there is an acquaintance with the Bank. ICICI Bank.

Nationalised banks. But it is not the same in all cases. its age. HDFC Bank have varying rates based on the car you wish to buy. However. if any. being government agencies. You will not only be subject to a long list of questions while opting for a loan from a private bank. and insufficient balance is enough ground for rejecting a loan application. The difference is all the more gaping when it comes to used cars. PUBLIC V/S PRIVATE BANKS: A car loan can be availed for as low as 10% from a non-AC PSU bank. Loans are sanctioned against only if the applicant is able to offer guarantors or collateral security of a higher value. Some of the draw backs are – such banks only entertain customers who have large bank balances. Even after all this the borrower cannot be sure that the required sum will be sanctioned. the model. This is why no interest rate figure is revealed unless all the details are provided to a private bank. The interest rate charged by most PSU banks is usually the same for fresh and used cars. But their interest rate for purchase of used cars is very high. They do not charge any fine for delay in re-payment. The lengthy processing time and red-tapism force applicants to loose hope. and in case of used cars. All their activities are accountable to the higher authorities who can be approached for redressal of grievances. Nationalised Banks The nationalised banks. but would also have to pay through the nose for the same loan that would be cheaper elsewhere. private banks such as ICICI Bank. for which your plush bank may well charge around 17.charge compound interest rates which can escalate the EMI by a huge margin.5%. go into a lot of paperwork before passing an application. offer low interest rates for new cars. .

Banks may ask for a surety if the eligibility criteria in terms of age between 21 and 60 years and others are not met.In comparison. The eligibility criterion for a used car loan is stricter there. So. a person’s monthly salary should not be reduced to less than 40%. for Rs 10 lakh car. the difference between public and private banks would be in the margin for the loan rather than the interest rate. the bank would finance only to the extent of Rs 8 lakh (Rs 10 lakh . Another important aspect to enquire about at a bank is whether interest would be charged on a reducing balance basis or on the total amount sought as loan. are stringent with the percentage of equated monthly instalment (EMI) with respect to monthly salary of the loan seeker. Apart from that. the duration. But. of course. This would have a huge impact on your EMI. be common to all banks. the only questions asked at the PSU banks would be the amount of loan that you are seeking. don’t get lured by the lower margin provided by private banks for used cars. however. . Margin is the extent to which a bank would provide the loan. For instance. In case of used cars.20% of Rs 10 lakh). A surety is nothing but a person who would repay the loan if the loan seeker is unable to pay back. Even hidden charges may be levied under the name of a processing fee that could run into thousands. then only 80% of the used car value would be funded by the bank. his salary and period of employment would. Questions such as whether the loan seeker has an account with the bank. Canara Bank says that after deducting the EMI. your salary slip. income tax returns for three years. if a bank has a margin of up to 20% for used car loans. Most banks have an upper ceiling on the EMI that a salary holder can pay. Banks. For example. Remember that the loan is disbursed directly to the car dealer and you would have to provide the contact details of the dealer. salary account statement for at least a year would also be needed. which would not exceed Rs 225-300 per lakh in case of public sector banks. and whether the car is fresh or used.

Interest is charged on the entire Rs 10 lakh. There are loans with fixed interest rates . terms and read the fine print of car loan offer. as they are assured that a fixed sum of money will be paid towards the loan re-payment. the rate of interest does not vary based on market fluctuation. irrespective of the amount repaid. The banks are careful to fix a range for each type of loan. The next type of loan rate is the variable rate or floating rate of interest. interest would be charged on the total loan amount minus the amount repaid. the first things you do is to go for a car loan. As a result. 10% on Rs 10 lakh would be much higher than 10% on Rs 9. This is helpful when you see that interest rates are going up and there is no likelihood of it coming down.In the reducing balance method. In contrast. Loan interest .In this type. You could reap benefits if the rate of interest is lowered by banks. The rate will go up to an agreed rate towards the end of loan. But applying for a car loan is a huge task which requires a lot of could help in comparision When you plan to buy a car. .8 lakh and so on. In this type you pay a lower interest rate at the beginning of the loan duration and the rate goes up.9 lakh and then Rs 9. the effective rate of interest would come down. It should be noted that. the rate of interest varies during loan duration. So. In this form of loan. interest is charged on the outstanding loan amount alone. by the end of a month’s repayment. People who like to take risk can certainly go for such loan rates. The basic thing you will have to ascertain is the rate of interest offered by various banks. a flat interest rate would hit you harder because the total loan amount is considered while calculating the interest rate. It is better to compare car loan rates. The third type of car loan is adjustable rate loan. This type of car loan is good for those who are not planning to repay the loan amount sooner than the agreed duration. Most car buyers go for such loans.

the RBI increase the CRR which causes the short of deposits with banks that in turn elevate the interest rates on loans. This is commonly called as the interest rate or the loan rate. Cash Reserve Ratio (CRR) CRR primarily used to regulate the lending capacity of banks which further controls the money supply in the economy. PLR is necessary to pull out the excessive money in the economy. PLR are utilized by the government to control inflation by increasing or decreasing its rates. CRR is entirely controlled by the RBI. Several factors that affect the interest rate on loans: Prime Lending Rate (PLR): PLR is the rate of interest based on which the banks lend money to their credit-worthy customers. This has brought wind of relief for potential car buyers who have been postponing their plan to buy car for a long time. RBI’s policy. Apart from the bank’s policy. Recently due to credit crunch in the market RBI has made CRR cuts to . the PLR rates are influenced by both the repo rate and cash reserve ratio rates. Though this rate is not set by the RBI but broadly they denote the interest rates in the economy. Additionally. This rate is considered as the standard rate for most of the loans. This directly impacts the interest rate on loans offered by different banks putting extra burden on car buyers. liquidity in the market along with the demand for credit by consumers (both retail and industrial) decides the PLR. In the recent times we have seen the CRR (Cash Reserve Ratio) and the Repo rates being slashed. When there is enormous money supply causing an upward pressure on inflation.Top Factors that affect the Interest Rates on Car Loans Financial aids from banks and financial institutions always come with an unseen price and not at free of cost.

This step is taken so that RBI will have a hold over the bank's credit expansion. These rates will further enhance the liquidity in the financial system resulting in increase or decrease in PLR. government bonds. A reduction in the repo rate will be beneficial for the banks to get the money at a cheaper rate. SLR (Statutory Liquidity Ratio) Rate Before offering credit to the customers it is necessary for the banks to maintain a repository of funds. the cost of borrowing funds of the banks rise this is then passed to the public as higher interest rates on loans. Benchmark Prime Lending Rate (BPLR) Some time ago. It can be in any form like cash. So when Reverse Repo Rate increases. Some banks were planning to pass on the benefits to the existing . This was expected to impact the interest rates on loans. Reverse Repo Rate Reverse repo rate is the rate at which the banks deposit their money to the RBI. And the loans become expensive whenever the repo rate increases. gold.bring liquidity into the financial system. those who had been subjected to steep interest hikes eagerly looked forward to see the interest rate cuts from their banks. Repo rate In case of credit crisis. etc. therefore influencing the car loan Interest rates. the Indian car industry is still experiencing credit crisis and as result many car financiers in the country have either hiked the interest rates by 100 basis points (1%) or are planning to do so very soon. It is rate fixed by the RBI for the banks. the banks take the financial support from the RBI and this is where the Repo rate falls in. Despite the cut in the CRR.

In fact. Finally. The State Bank of India is a leading Bank that introduced the facility of ATM Cards and Internet Banking to all its Branches in the interiors of India. The banks are required to make necessary changes in existing car loans. Not Just the SBI Branches but also the SBI ATMs are found in the nook and corner of India. the interest rate was fixed with certain low or high percentage depending upon the BPLR. in regards to its employees and branches.customers while others were cutting down interest rates only for their new customers. As the banks are given the right to set the percentage for the BPLR. The extensive reach of SBI Branches in the rural areas in India has made it touch the lives of the millions. SBI State Bank of India is the largest Bank in India and in the entire Indian Sub-continent with far flung Branches. the State Bank of India is the largest bank in the world. this change or floating interest can come into effect on a quarterly or yearly basis or with immediate effect. The State Bank of India has been instrumental in carrying out innovations in personal banking to make the transactions easy for its customers. the . with the most extensive Networking all over the world and many leading SBI Associate Banks. In fact. Thus the interest rates on loans are largely depends on the BPLR. In the true sense of the term. The percentage is decided by the banks focussing on the factors like loan eligibility and credit profile of a loan seeker. Founded in 1806. According to bank policies. SBI has evolved to be a major Bank in India to provide financial assistance. they offer attractive values to their new customers but continue to charge higher interest rate for older customers.

ELIGIBLITY:• • Individual between the age of 21-65 years of age. the Foreign Offices division. 100.000/. Today. • • • LOAN AMOUNT . In fact. and small utility vehicles. A Permanent employee of State / Central Government. Net Annual Income Rs.State Bank of India has been a visionary Bank with the incorporation of all the modern and contemporary trends.the Domestic division. SBI CAR LOAN PURPOSE:-  Term loan for purchase of: new passenger cars. Not just Financial Services. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings . SBI Card has been provided to all the rural clients so to enable them to enjoy the fruits of Globalization. multi utility and small  Used cars. State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. the Foreign Department and the International Services division. No financing of old vehicles on the basis of duplicate registration books. up to 5 yrs old. The State Bank of India has been instrumental in facilitating Finance for Agriculture by dedicating special Rural Branches.and above. At the same time. Private company or a reputed establishment or A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities. Multi utility vehicles. but Counselling on the SBI-State Bank of India Interest Rates and various SBI Loans meant for labourers is provided. Public Sector Undertaking. utility vehicles.

00% p. Rate of Interest 12.25% below SBAR i. INTEREST:. 15 lacs.25% p.a.e.There is no upper limit for the amount of a car loan. Loan amount for used car is subject to a maximum limit of Rs.5 lac 0. If married. A maximum loan amount of 2. 7. MARGIN PAYMENT: 15% of ‘on road’ price.50% p. whichever is higher. At SBAR i. 3.a.e.00% above SBAR i.00% p.Calculation method: Daily reducing method.5 times the net annual income can be sanctioned. 12.25% above SBAR i. New Car Tenure & above) Up to 3 years (for loans below Rs. Up to 3 years (for loans Rs. Used Vehicles Tenure Up to 3 years Above 3 yrs up to 7 yrs Rate of Interest 3. 15.e. your spouse's income could also be considered provided the spouse becomes a co-borrower in the loan. REPAYMENT PERIOD:-  Max 7 yrs INSURANCE:The vehicle to be kept comprehensively insured in the name of borrower for the market price or at least 10 % above the loan amount outstanding.a.e.a. 15. .

A copy of passport /voters ID card/PAN card.5 lac) Above 3 yrs up to 5 yrs (for all loans) Above 5 yrs up to 7 yrs (for all loans) SECURITY: Hypothecation of vehicle and noting of hypothecation charge in the books of R. At SBAR i. 12.e. DOCUMENTS REQUIRED: 1.00% p. Returns/Form 16: 2 years for salaried employees and 3 years for professional/self-employed/businessmen duly accepted by the ITO. . 6.50% p.  No other security to be obtained. I.  Minimum: Rs. Statement of Bank account of the borrower for last 12 months.T. 2 passport size photographs of borrower(s). 3. 5. 500/ Maximum Rs.T. 0.a. Latest salary-slip showing all deductions 7. Proof of residence.O. 10.000  25% of processing fee will be retained if application is rejected after pre-sanction survey. if his/her income has been taken into account for computing eligibility of loan. Signature identification from bankers of borrower(s).25% above SBAR i. 12.50% of Loan amount and to be paid upfront.e. 2. PROCESSING FEES:  0.a. 4.  Guarantee of spouse.7. 8. Proof of official address for non-salaried individuals.

.4 million units. OBJECTIVES AND BACKGROUND Housing finance sector Against the milieu of rapid urbanisation and a changing socio-economic scenario. from the beginning. the demand for housing has grown explosively. Today. Having identified housing as a priority area in the Ninth Five Year Plan (1997-2002).76 million units is from rural areas and 6. in 1977. Background HDFC was incorporated in 1977 with the primary objective of meeting a social need . HDFC was promoted with an initial share capital of Rs. the National Housing Policy has envisaged an investment target of Rs. stand testimony to our success. of which 12. The importance of the housing sector in the economy can be illustrated by a few key statistics. has been to enhance residential housing stock and promote home ownership. to property related services and a training facility.that of promoting home ownership by providing long-term finance to households for their housing needs. According to the National Building Organisation (NBO). the skill to understand the clientele and the desire to give them your best. The housing industry is the second largest employment generator in the country.HDFC was found out nearly three decades ago.500 billion for this sector. the total demand for housing is estimated at 2 million units per year and the total housing shortfall is estimated to be 19. HDFC objective.HDFC also offer specialised financial services to their customer base through partnerships with some of the best financial institutions worldwide. Now. HDFC offerings range from hassle-free home loans and deposit products. 100 million. the solution for success is customer satisfaction. All required is the courage to innovate.64 million units from urban areas. nearly three million satisfied customers whose dream HDFC helped realise. 1.

Business Objectives . taxation. Organization and management HDFC is a professionally managed organisation with a board of directors consisting of eminent persons who represent various fields including finance. construction and urban policy & development. d) provide consistently high returns to shareholders.The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner. designed to deliver increasing value to shareholders. The board primarily focuses on strategy formulation. Organisational Goals HDFC's main goals are to a) develop close relationships with individual households.within 48 hours. policy and control. and e) to grow through diversification by leveraging off the existing client base. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. ranging from 12 to 84 months. b) maintain its position as the premier housing finance institution in the country. HDFC CAR LOAN: NEW CAR LOANS Features:  Covers the widest range of cars and multi-utility vehicles in India.  Flexible repayment options.  Borrow up to 3 times your annual salary  Speedy processing . . and to promote home ownership. Benefits:  Repay with easy EMIs.  Avail 100% finance on your favourite car. c) transform ideas into viable and creative solutions.

) Depends on the car Min. we have special rates for you.To Fastrack your loan. LOAN SLAB: Min. Period (Yrs) 7 Interest Rate (%) 13.  If you are an existing HDFC Bank Car Loan customer with a clear repayment of 12 months or more we can Top-Up your car loan to the extent of the original loan value. Attractive car loan plans . Period (Yrs) 1 Max. Amount (Rs.) 1 Max.25 -16. Finance (%) 100 .  Attractive Interest rates  Hassle-free documentation. LOAN PROCESSING TIME: 48 hrs.25 Max. Customer Privileges  If you are an HDFC Bank account holder. you can get fast approvals on your loans with minimal documentation. Eligibility Criteria:  Minimum age of Applicant: 21 years  Maximum age of Applicant at loan maturity: 58 years  Minimum employment: 1 year in current employment and minimum 2 years of employment  Minimum Annual Income: Rs 100000 net annual income  Telephone: Must at residence LOAN AMOUNT: Up to 90% of the invoice value of the car. Amount (Rs. TENURE OPTIONS: 12-84 months.  If you have had a Preferred Account or a Corporate Salary Account with HDFC Bank for more than six months.

 Address Proof: .price Documents required:  Proof of Identity:. Legible)  Income Proof: . driving licence( Laminated. PAN Card.To Fastrack your loan. .  Attractive car loan plans . Recent.Not mandatory USED CAR LOANS: Features and benefits  Choose any car manufactured in India within a certain age. Voters Id car.Passport copy.  Repay with easy EMIs. just choose the plan that is right for you.  Borrow up to 3 times your annual salary.  Available for almost all car models at attractive interest rates.Ration card/Driving licence/Voters card/passport copy/telephone bill/ electricity bill/Life insurance policy PAN Card.If you are a existing HDFC Bank Auto loan customer with a clear track record of 12 months or more.  Bank Statement:.  Additional loan on existing loan . ranging from 12 to 60 months. Customer Privileges  Special benefits for HDFC Bank account holders.Latest salary slip with form 16.  Borrow up to 80% of the value of the car.  Flexible repayment options. then you can get an additional loan to the extent of your existing loan amount at attractive rate of interest.

3000/Agri /PSL Charges Cheque swapping charges Loan cancellation / re-booking charges Bounce Cheque Charges > 4 Lacs :Rs.24.Upto 2. including income of the spouse: Rs 100000 net annual income  Telephone: Necessary at residence LOAN AMOUNT: Up to 80% of the invoice value of the car. you can get fast approvals on your loans with minimal documentation. Eligibility Criteria  Minimum age of Applicant: 21 years  Maximum age of Applicant at loan maturity: 60 years  Minimum employment: 1 year in current employment and minimum 2 years of employment  Gross household income i.2% of Loan amount or Rs. whichever is lower Car-n-cash / Balance Transfer . De FEES AND CHARGES FOR CAR LOANS n of charges Cheque bouncing charges Rs.2000/2.5 Lacs : Rs. whichever is lower NEW CAR.5000/-.51 to 4 lacs : Rs.48 or 60 months. 3500/Rs 2000 Rs 500/Rs 1000/Rs 450/- . If you have had a Preferred Account or a Corporate Salary Account with HDFC Bank for more than six months.4000/-.e. At actuals 2% per month Used cars -2% of loan amount or Rs. TENURE OPTIONS: 12. 450 6% of POS for preclosures within 1 year from 1st EMI FC Charges 5% of POS for preclosures within 13-24 months from 1st EMI 3% of POS for preclosures post 24 months from 1st EMI No foreclosure allowed within 6 months from date of Stamp Duty Late Payment Penalty Processing fees availing the car loan.36.

 Proof of Identity: Any one of Passport copy. Photo driving licence with birth date (laminated. School/College Leaving certificate. Photo driving licence with birth date. Telephone bill. HDFC bank corporate salary account statement for salary credits of above Rs 8000 for three months. Photo driving licence with birth date (laminated. Credit Card statement with credit card copy. Employer certificate/ID. Electricity bill. Photo Driving licence with DOB. PAN Card. recent. Voters ID card.  Income Proof: Latest salary slip with latest form 16/latest ITR. legible). Passport copy.per case  Age Proof: Any one of Passport copy. Repossession & Incidental charges Duplicate no due certificate / NOC Transaction fees for Suraksha Kavach Documents required: Rs 500/Rs 500/At actuals Rs 500/Rs 500/. Credit Card statement with credit card copy. Photo ration card with DOB.Statement Charges (per statement) Duplicate Repayment Schedule charges Legal. Copy of margin money paid to bank. Employer certificate/ID.  Address Proof: Any one of Photo Ration card with DOB.  Sign Verification Proof: Any one of Passport copy. Banker's verification. Photo ration card with DOB. recent. Voters ID card. . PAN Card. legible).

2. 3. However what most consumers don’t realize is that the lender should not be chosen on interest rates alone. Upfront fees payable. studied on “car loan analysis” that the first thing that consumers look for is the interest rate. .LITERATURE REVIEW Several studies and researches have been done on this topic in which they have suggested various ways of choosing car loans. 6. 5. Harshvardhan Roongta. Cost factor. (1994). Lender calculates loan eligibility differently. their effect on customers and comparison of various car loan providers on various basis. Familiarity of the lender with legal procedures can be another important consideration. Features. Apnaloan. 4. interest rates on car loans. CEO. charged by the lender. The other factors which are equally if not more important are as follows: 1. Certain value added features. Prepayment charges.

We increased our retail prime-lending rate (RPLR) by 50 basis points last December. Menon points out that the attraction of a floating rate car loan is that it does not attract a part prepayment charge. GM (Mumbai Region). HDFC Ltd. there was a trend of floating rate car loans being more popular as compared to the fixed rate loan. Key factors for this are: 1. This could appeal to individuals who get lump sum bonuses. head of retail assets at IDBI bank researched on “Floating rate of car Loan” in 1998 that floating rate interest would continue to be the dominant preference of the customer.S. HDFC in 1999 researched on “Factors effecting hike in interest rates of car Loans” that a hike in rates depends on each lender's funding composition and timing when the liabilities have to be re-priced. governments have turned to the consumer for growth after decades of export-led economics that held consumerism in check. Prashant Joshi. As of now. In East Asia.” says Mr. this trend is continuing. General Manager (Corporate Planning and Finance). Suresh Menon. Mr.Mr. Director. Mr. 2. researched on “Floating rate on car Loans” in 2002 that in the last one year. Entry of more players Mr. Tax benefits 3. Declining interest rates. If the existing scenario of the hardening in bond yields continues. for instance. Leo Puri. expert (1997) studied on “car loan market in India” that the car loan market has grown at a compounded rate of over 40% over the last 4 years. Ranjan. which they can use to reduce their loan exposure. McKinsey & Company (1999) researched on “Competitive market of car Loan” that emerging markets are following developed markets in a consumer revolution that has intensified over the past 10 years. Rajeev Mitra personalfn. The . then the rates may have to be revisited".

Research Objective The main object of the study is to assess strengths and weakness of Public and Private sector banks in providing car loan schemes based on certain criteria’s. auto loans.consumer is being leveraged through mortgages. but the rise will be around 25-50 basis points and not alarmingly high. Other major objective is to assess present scenario of car finance. Murthy.  To analyse factors that affect decision of selecting car loan services. . credit cards and other forms of consumer finance. V. Mr. General Manager (Retail). Union Bank of India researched on Current Scenario on car Loan Rates in year 2001 that given the current market and economic scenario. Objectives can be listed as:  To develop questionnaire for comparing car loan schemes of HDFC & SBI. there will be pressure on car loan rates. This has become the focus of all rapidly growing financial institutions across markets. In the medium term there will be an upward trend.S. typically following an "S curve" of rising consumer finance penetration relative to per capita income.R. Consumer finance in a market evolves over time. Banks that enter this arena without having built their risk management processes will face increased credit losses over time and could trigger mini-crises.

 Open new vistas for further research. Research Methodology Research design method to be in the study is of primary in nature and includes the following: • • Research done for collecting various details about subject matter using internet and related research work done earlier. and is used to collect data from respondents. Find out best car loan service provider from HDFC and SBI in Indore region. This method is used in order to make reference to phenomena as the existing real life and it is relatively economical in terms of time and recourses. Questionnaire designed on the basis of learning. .  To compare the role of public sector and private sector in car loan. • The questionnaires so designed that it not only reveal the customers preference but on the basis of collected data it is also tried to find out the acceptance of customers that is the market penetration of the technology in last few months.

The sample random sampling is a basic sampling design. which allows equal representation and selection of samples. certain factors were identified which could have a probable effect on the choice of Car loan providers. this was done in anticipation that such a sampling of subject will provide the necessary variety of information required for the study. These subjects were drawn randomly from the different socio-economic class for sample. Subject Subject for the study were 1 hundred respondents of Indore. During the formulation of the questionnaire. Sampling Method Population – Customers of Car Loans in Indore region. Tools Used for data collection For collection of primary data. Sample Frame – the data was collected through personal contacts and consist of customers who have taken Car Loans. As such questionnaire was only technique used for collection of primary data. selected numbers of persons (who have presently availed Car Loan) were personally interviewed using a structured questionnaire. Sampling Technique – The technique used to collect data is simple random sampling. Tools Used for data Analysis . Sample Size – hundred customers.• The data so collected through these tools are analysed on statistics using frequency and chi square testing methods to reach the result. The selection of the subject was done in such a way to include all categories of people keeping the focus on educated as well as uneducated and.

GENDER:  Male  Female  35-45 yrs.In this I have used the SPSS software for finding the frequencies. Customer Survey Questionnaire on Car Loan PERSONAL DETAILS:NAME: ____________________________________________________________ AGE:  20-35 yrs.  45-55 yrs.  55-65 yrs. BACKGROUND: . applying chi square method to calculate from the collected primary data and survey also. Different factors are analysed which have impact on selection of public and private sector banks. From the findings and methods applied it is clear that all the factors are significant for the research study.

5-4.5 HOW LONG YOU HAVE BEEN ASSOCIATED WITH THIS BANK:  Less than 1 Yr. Purpose of taking loan:  New car  Used car LOAN TENURE:  1-3 year INTEREST TYPE:  Fixed METHOD OF CALCULATING INTEREST:  Daily reducing balance method  Annual reducing balance method HOW DO YOU COME TO KNOW ABOUT CAR LOAN OF THIS BANK:  Newspaper  T.V commercial  Floating  3-5 year  5-7 year .5-3.  1-2 Yr.  2-3 Yr.5 lakh  3. Rural EMPLOYMENT STATUS:  Employed (full time)  Unemployed PROFESSION:  Academics  Private firms  Any other  Semi urban  Urban  Employed (part time)  Retired  Bank employee  Government Organization YOUR INCOME CATEGORY (per annum)  1-2.  3-4 Yr  More than 4 Yrs.5 lakh  More than 4.5 lakh CAR LOAN DETAILS: FROM WHICH BANK CAR LOAN IS TAKEN:  HDFC  SBI  2.

6 10.5 3.9 100.1 100.    Internet Magazine/ hoarding Verbal communication Any other then specify________________________ TIME TAKEN FOE THE LOAN PROCEDURE TO COMPLETE  1-2 days PREPAYMENT FEES  Yes PROCESSING FEES:  Yes  No  No  2-3 days  more than 3 days WHY DO YOU CHOOSE THIS BANK FOR TAKING CAR LOAN:          Nearness of the bank Charges of providing loan Amicable staff Query solution Interest rates Trustworthiness On other’s advice Comparative analysis Flexibility in payment ARE YOU SATISFIED WITH THE LOAN SERVICES PROVIDED BY THIS BANK:  Yes  No DATA ANALYSIS The data collected from different residents of Indore is categorised as follows (frequency and percentage showing the details of customer profile).0 .9 85.0 53.9 31.5 3. FREQUENCY TABLES AGE: Frequency Percent Valid Percent Cumulative Percent 20-35 35-45 Valid 45-55 55-65 Total 41 24 8 3 76 53.9 100.6 10.9 31.5 96.0 53.

4 42.9 17.0 EMPLOYMENT: Frequency Percent employed (full time) Valid employed (part time) Total 63 13 76 82.4 19.8 85.5 100.7 27.6 11.0 Cumulative Percent 82.8 85.7 27.0 72.4 27.6 11.5 100.0 BACKGROUND: Frequency Percent Valid Percent Cumulative Percent rural Valid semiurban urban Total 2 9 65 76 2.1 100.4 27.6 30.0 72.1 69.0 2.GENDER: Frequency Percent Valid Percent Cumulative Percent male Valid female Total 55 21 76 72.0 2.6 100.6 30.9 100.4 100.3 Cumulative Percent 22.0 PROFFESION: Frequency Percent Valid academics bank employee private firms government 17 15 21 23 22.6 14.1 100.7 100.4 19.0 Valid Percent 82.5 100.9 17.6 100.3 Valid Percent 22.0 .

.1 27.1 27.0 Thus the above tables depict the detail analysis of respondents from whom the data is collected.2 86.5 Total 13 32 21 10 76 Percent 17.0 100.2 100.1 59.0 Cumulative Percent 17.5 lakh Valid 3.5 lakh 2.6 13.0 INCOME: Frequency 1-2.2 100.0 Valid Percent 17.1 42.5-4.5-3.6 13.8 100.1 42.5 lakh above 4.organisation Total 76 100.

2. Sig.1.004 From the above table it can be seen that the chi square value is . EFFECTS OF SOURCES ON TAKING LOAN BANK*SOURCE CROSS TABULATION Source newspaper internet magazine/hoarding bank Total hdfc sbi 14 6 20 5 7 12 Chi-Square Tests Value Pearson Chi-Square 13. It means different sources have significant effect on selection of bank.004 which shows that there is a significant relation between bank selection and sources of car loan. (2-sided) . It can be concluded that verbal communications have higher impact on bank selection. SHOWS THE SATISFACTION LEVEL OF LOAN SEEKERS BANK*SATISFIED .214(a) Df 3 14 7 21 Total verbal newspaper communication 5 18 23 38 38 76 Asymp.

005 which shows that there is a significant relation between bank selection for car loan and satisfaction level of the loan seekers. (2-sided) .014 . Sig. EFFECT OF AGE ON BANK SELECTION BANK*AGE Age 20-35 Bank Total hdfc sbi 26 15 41 35-45 11 13 24 45-55 1 7 8 55-65 0 3 3 Total 20-35 38 38 76 Chi-Square Tests Value Pearson Chi-Square 10.Satisfied no Bank Total Hdfc sbi 13 3 16 Yes 25 35 60 Total no 38 38 76 Value Pearson Chi-Square 7. Sig. (2-sided) . It can be concluded that SBI loan seekers are more satisfied with their bank services as compared to HDFC.618(a) df 3 Asymp.005 From the above table it can be seen that the chi square value is .917(b) df 1 Asymp. 3.

It means that profession of the people does not produce significant effect on selection of the bank for taking car loan.286 which shows statistically that the relation between profession of the loan seeker and selection of the bank is insignificant. MOST PREFFERED SOURCES ACCORDING TO PROFESSION PROFESSION*SOURCE Source newspaper internet magazine/hoarding academics bank employee profession private firms government organisation Total 4 5 5 6 20 5 2 4 1 12 5 4 5 7 21 verbal communication 3 4 7 9 23 Total newspaper 17 15 21 23 76 . (2-sided) .286 Here chi square value is .From the above table it can be seen that the chi square value is . Sig. 4.778(a) df 3 Asymp. EFFECT OF PROFESSION ON BANK SELECTION BANK*PROFESSION Profession academics bank Total hdfc sbi 7 10 17 bank employee 5 10 15 private firms 13 8 21 government organisation 13 10 23 Total Academics 38 38 76 Chi-Square Tests Value Pearson Chi-Square 3.014 which shows that there is a significant relation between bank selection and age of the car loan seeker. 5. It can be concluded that that people between the age group of 20-35 prefer HDFC for taking loans.

(2-sided) .307(a) df 9 Asymp.393 which shows statistically that the relation between income of the loan seekers and selection of interest type for car loan is insignificant. EFFECT OF INCOME ON TENURE INCOME*TENURE tenure 1-3 year income 1-2. Sig.5-3.5 lakh 3. 6.5 lakh 3 9 4 3-5 year 5 15 12 5-7 years 5 8 5 Total 1-3 year 13 32 21 . Sig. 7.5 lakh above 4. (2-sided) .Chi-Square Tests Value Pearson Chi-Square 6.5-3.393 Here chi square value is .709 Here chi square value is .5-4.5-4.709 which shows statistically that the relation between the profession of the loan seeker and the sources available for loan is insignificant.992(a) df 3 Asymp. EFFECT ON INTEREST TYPE ACCORDING TO INCOME INCOME*INTEREST TYPE Interest type fixed 1-2.5 lakh Income 2.5 lakh 2.5 Total 2 5 7 3 17 floating 11 27 14 7 59 Total fixed 13 32 21 10 76 Chi-Square Tests Value Pearson Chi-Square 2.5 lakh 3. Means income does not produce significant effect on the interest type of the loan.

It can be concluded that persons in the income group of 2.5 Total 4 20 2 34 4 22 10 76 Chi-Square Tests Value Pearson Chi-Square 4.5-4. (2-sided) .047 From the above table it can be seen that the chi square value is .5 lakh above 4. (2-sided) .5-4.5 lakh 3.5 lakh Income 2.589 Here chi square value is .5-3.5 lakh mostly prefer to take loan for new cars. EFFECT OF AGE ON PURPOSE AGE*PURPOSE Purpose Total . 8.047 which shows that there is a significant relation between income of the loan seekers and purpose of taking car loan.5 Total 8 30 18 9 65 used car 5 2 3 1 11 Total new car 13 32 21 10 76 Chi-Square Tests Value Pearson Chi-Square 7. 9.953(a) df 3 Asymp. EFFECT OF INCOME ON PURPOSE OF TAKING LOAN INCOME*PURPOSE purpose new car 1-2. Sig.654(a) df 6 Asymp. Sig.above 4.5-3.589 which shows statistically that the relation between the income of the loan seeker and tenure of the car loan is insignificant.5 and 3.

627(a) df 3 Asymp.077 Here chi square value is .New car 20-35 age 35-45 45-55 55-65 Total 35 20 7 3 65 used car 6 4 1 0 11 new car 41 24 8 3 76 Chi-Square Tests Value Pearson Chi-Square . 10.890 Here chi square value is . EFFECT OF AGE ON SELECTION OF THE BANK ON THE BASIS OF PROCEDURE TIME AGE*PROCEDURE TIME Procedure time 1-2 days 20-35 age 35-45 45-55 55-65 Total 22 8 1 0 31 2-3 days 4 3 0 0 7 more than 3 days 15 13 7 3 38 Total 1-2 days 41 24 8 3 76 Chi-Square Tests Value Pearson Chi-Square 11.077 which shows statistically that the relation between the age of the loan seekers and selection of the bank on the basis of procedure time is .402(a) df 6 Asymp. (2-sided) .890 which shows statistically that the relation between the age of the loan seekers and their purpose of taking car loan is insignificant. Sig. (2-sided) . Sig.

(2-sided) . Means age does not produce significant effect on the tenure of the car loan. 12.512 which shows statistically that the relation between the age of the loan seeker and tenure of the car loan is insignificant.512 Here chi square value is .253(a) df 6 Asymp. Sig. EFFECT OF AGE ON SELECTION OF THE BANK ON THE BASIS OF NEARNESS OF THE BANK AGE*NEARNESS nearness no 20-35 Age 35-45 45-55 55-65 Total 29 18 4 0 51 yes 12 6 4 3 25 Total no 41 24 8 3 76 . EFFECT OF AGE ON TENURE AGE*TENURE Tenure 1-3 year 20-35 Age 35-45 45-55 55-65 Total 11 6 3 0 20 3-5 year 16 13 4 1 34 5-7 years 14 5 1 2 22 Total 1-3 year 41 24 8 3 76 Chi-Square Tests Value Pearson Chi-Square 5. 11. It means age does not produce significant effect on bank selection on the basis of procedure time.insignificant.

044 which shows that there is a significant relation between the age and selection of the bank on the basis of nearness of the bank. It means age have significant effect on selection of bank on the basis of nearness. Sig.763 which shows statistically that the relation between the trustworthiness of the bank and getting associated with it is insignificant.851(a) df 4 Asymp.Chi-Square Tests Value Pearson Chi-Square 8. It can be concluded that persons between the age group of 45-55 give more importance to nearness as one of the factor in bank selection.763 Here chi square value is . IMPORTANCE OF TRUSTWORTHINESS AS ONE OF THE FACTOR IN BANK SELECTION ASSOCIATED*TRUSTWORTHINESS trustworthiness no less than 1 year 1-2 year Associated 2-3 year 3-4 year more than 4 year Total 0 5 8 5 4 22 yes 1 12 13 13 15 54 Total No 1 17 21 18 19 76 Chi-Square Tests Value Pearson Chi-Square 1.044 From the above table it can be seen that the chi square value is . Means being . 13. Sig. (2-sided) . (2-sided) .102(a) df 3 Asymp.

00 From the above table we can conclude that surveyed customers give more importance to trustworthiness and query solution as the factors for selecting bank for taking car loans.00 trustw orthine ss 76 0 54.00 Interest rates 76 0 46. Though it can be inferred from the above table that persons associated with the bank for more than 4 years have more trust on that bank and they select the bank for taking car loan on this basis as well.00 Amicable staff 76 0 48. satisfying the customer’s needs.00 Compa rative analysi s 76 0 45.00 Repay ment flexibilit y 76 0 39. .00 Others advice 76 0 45. 14.associated with the bank does not produce significant effect on the trustworthiness as one of the factor in bank selection for taking car loan.00 Query solution 76 0 52. FREQUENCY TABLE OF DIFFERENT FACTORS AVAILABLE FOR TAKING CAR LOAN nearne ss N Valid Missi ng Sum 76 0 25.00 Loan charges 76 0 40. Trustworthiness and query solution implies certain features of bank like no hidden costs. solving the customers queries through e-banking and various modes.

As the maturity factor increases i.  Indian Consumer has a mentality of entrusting upon his/her relative.Findings and results  As there is marginal propensity to consume and service class people have Lesser Disposable Income .  HDFC Loans are preferred by Clientile base of people who are having Annual Compensation close to 3. they draw conclusions that this Car loan scheme is better. Carrying on with the same. a PSU. maximum Car Loan Drawers are influenced by Verbal Communcation in comparision to other means of Advertisements.friend for most of Financial Sevices Product.5L and more.e.5Lacs Anuual Compensation bears a closer relationship with HNI clinets so they prefer HDFC or Private Sector on account of Services and Privileges being offered.  As SBI is the largest bank of India so it is least affected by Market Fluctutaions which comes as a major influencer when Floating Interest rate . the population is coming towards SBI. On taking a they require maximum amount of different types of loans and thus maximum Car Loan availability is made to them .  HDFC is more popular in segment of age group 25-34 which speaks of Young Earning Population’s Inclination toward Private Sector.As 3. age.

 In SBI the method followed for interest calculation is daily reducing balance method while in HDFC it is annual reducing balance method.  Youngsters between the age group of 20-35 prefer taking loan for new car with their loan processing time completed within 1-2 days. As in SBI there are no charges for processing. While HDFC charges for all such things and even there are some hidden charges. So youngsters prefer HDFC. This in essence lowers your effective rate of interest significantly. which is more beneficial to the customers.  Persons in the age group of 45-55 have reached the maturity stage and health problems also set taken and as Interest rate is the First major concern so maximum feedbacks are given on the basis of it. So it does not provide complete transparency to its customers. so that the person can have quick access to the banking resources. So at this stage they prefer nearness as one of the major influences. documentation and prepayment and even it provides complete transparency to its customers. interest is calculated only on the outstanding loan amount. In daily reducing.25%.75%-12.25% while of HDFC is 13.  In all we can say that SBI has better car loan scheme than HDFC. As SBI provides processing time of 7-8 days and HDFC provides customer’s with the loan processing done within 48 hrs. which reduces every time you pay off your EMIs or make any prepayments.On account of services.  Interest rate charged by SBI for providing car loan is 11. .25-16. HDFC stand a bit better than SBI.

.  Customers may be biased while filling questionnaires.Limitations  Time constraint has become a big constraint.  Study this topic in the time period of few months was not sufficient hence due to time constraint there may be other aspects also which may not have come up.  The sample size being taken for drawing a conclusion was too small to get an accurate result.           .com      

autoindia.  .com    www.

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