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Submitted to: Ms. Neetu Rani (Assit prof)

Submitted By: Gurpreet Kaur BBA 6 t h sem 1191503






I wish to express our gratitude to Punjab State Cooperative Bank management for giving us an opportunity to be a part of their esteem organization and enhance our knowledge by granting permission to do our training project under their guidance. My sincere thanks are due to entire staff of Bharat group of college for the co-operation during my study. Lastly thanks not lest my acknowledge is to all my family members for being a good of not only finance but also encouragement and constant inspiration during my study.

Gurpreet kaur


Gurpreet kaur 4 . No attempt has been made to manipulate any information and it is authentic to the best of my knowledge. All the sources of information have been duly disclosed. GURPREET KAUR . here by declare the project undertaken by me on “NON AGRICULTURE LOANS OF COOPERATIVE BANK” is my original piece of work and is done with the total integrity to my pursue my research objectives.DECLARATION I.

During the course of this project we actually realized how true it is when we analyzed the Banking Industry. 5 . for which I have studied about the NON AGRICULTURE LOANS and collected data of the bank for the last 10 years for its relevance. This project enabled us to know about the consumers’ needs and competitors’ activities in the real world of Banking. The subject of my study is “NON AGRICULTURE LOANS OF COOPERATIVE BANK”.PREFACE Someone has rightly said that practical knowledge is far better than classroom teaching.

acceptance of deposits and lending.a dealer in debts which aims at earning profit by accepting deposits from public. respectively. and  It lends this money to those who require it.WHAT IS A BANK Bank is an institution that deals in money and its substitutes and provides other financial services. A bank is one that accepts deposits from public and lends money. which are repayable on demand or otherwise. namely.  "Bank collects money from those who have it to spare or who are saving it out of their income. through cheques. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged. Thus "A bank is a commercial establishment ." 6 .” This definition brings out the two important functions of a banker. drafts or otherwise. and which are used for lending or investment.

integrated. more particularly to the organized sector. while farmers. the All India Rural Credit Survey Committee submitted its report recommending creation of a strong. over the years has gone through various phases after establishment of Reserve Bank of India in 1935 during the British Rule.employed had to depend on the money lenders who exploit them by charging higher interest rates. small entrepreneurs. were being deployed in organized. a scheme of Social Control was set up whose main function was to periodically assess the demand for bank credit from various sectors of the economy to determine 7 . State-partnered commercial banking institution with effective machinery of branches spread all over the country. In February 1966. Earlier to the creation of RBI. transporters. Another evaluation of the banking in India was undertaken during 1966. 1955 by acquiring the substantial part of share capital by RBI. professionals and self . The recommendation of this committee led to the establishment of first Public Sector Bank in the name of State Bank of India on July 1.HISTORY OF INDIAN BANKING Indian banking system. of the princely states. The bulk of deposits collected. the imperial Bank of India was looking after the central bank functions. to function as Central Bank of the country. associate banks came into fold of public sector banking. as the private banks were still not extending the required support in the form of credit disbursal. sectors of the industry and trade. In 1954.

The scheme however. in 1980. with the submission of report by the Narasimham Committee on Reforms in Financial Services Sector during 1991. there was substantial increase in the number of branches opened in rural/semi-urban centers bringing down the population per bank branch to 12000 approx. 2629 crores. While the 1970s and 1980s saw the high growth rate of branch banking network. 1813 crores and with 4134 branches accounting or 80% of advances. deposits of Rs. RRBs were established (on the recommendation of M.the priorities for grant of loans and advances so as to ensure optimum and efficient utilization of resources. The Service Area Approach was introduced during 1989. the consolidation phase started in late 80s and more particularly during early 90s. Narasimham Committee report) under the sponsorship and support of public sector bank as the 3rd component multi agency credit system for the agricultural and rural development. 6 more banks were nationalized which brought 91% of the deposits and 84% of the advances in the Public Sector Banking. 28. loans of Rs. banking in India has evolved through four distinct phases. In the post nationalized period. In these five decades since independence. did not provide any remedy. During December 1969. On July19.50 crores. Subsequently. during 1976. the government promulgated Banking Companies (Acquisition and Transfer of Undertakings) Ordinance 1969 to acquire 14 bigger commercial banks with paid up capital of Rs. RBI introduced the lead Bank Scheme on recommendations of FK Nariman Committee. 1969. namely: 8 .

a determined effort was made to make banking facilities available to the masses. A major development was the transformation of imperial Bank into State Bank of India in 1955 and nationalization of 14 major private banks during 1969. customer services. which saw marked slowdown in the branch expansion. credit management.This phase began in mid60s but gained momentum after nationalization of banks and continued till 1984.The phase started in 1985 when RBI took a series of policy initiatives. Foundation Phase: .  Expansion Phase: . The focus during this period was to lay the foundation for a sound banking system in the country.  Consolidation Phase: . Most importantly.This phase can be considered to cover 1950s till nationalization of banks in 1969. Attention was paid to improving house keeping.  Reforms Phase: . which had no access to the banking hitherto. more competition. staff productivity and profitability of banks. technological 9 . As a result the phase witnessed the development of necessary legislative framework for facilitating re-organization and consolidation of the banking system. Branch network of the banks was widened at a very fast pace covering the rural and semi urban population. credit flows were guided towards the priority sectors.The macro economics crisis faced by the country in 1991 paved the way for the extensive financial sector reforms which brought deregulation of interest rates. for meeting the requirement of Indian economy.

prudential guidelines on asset classification and income recognition. According to NAFCUB. along with some small scale industries and selfemployment driven activities. Some of the cooperative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. small scale units. The cooperative banks are an important constituent of the Indian Financial System. home finance. industries. consumer finance. milk. Their role in rural financing continues to be important even today. hatchery. and the number of offices them operates. the expectations they are supposed to fulfill. their number. capital adequacy. and their business in the urban areas also has increased phenomenally in the recent years mainly due to the sharp increase in the number of primary co-operative banks. etc. COOPERATIVE BANKS The cooperative bank has history of almost 100 years. cattle. the cooperative banks in urban areas mainly finance various categories of people for self employment. the total deposits & lending of cooperative banks 10 . autonomy packages. While the cooperative banks in rural areas mainly finance agricultural base activities including farming. personal finance.changes. The cooperative movement originated in the West. etc. personal finance etc. judging by the role assigned to them. but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world.

They finance small borrowers in industrial and trade sectors besides professional and salary classes. Though registered under the Co-operative Societies Act of the Respective State (where formed originally) the banking related activities of the cooperative banks are also regulated by the reserve bank of India. 11 .are much more than old private sector banks and also the new private sector banks. Regulated by the RBI. 1965. which operate both in urban and non urban centers. and their ability to catch the never of the local clientele. they are governed by the banking regulation act 1949 and banking laws (Cooperative societies) act. They are governed by the Banking Regulation Act 1949 and banking Laws Act 1965. the cooperative banks are small sized units organized in the cooperative sector. personal interaction with customers. This exponential growth of cooperative banks is attributed mainly to their much better local reach.

STRUCTURE OF COOPERATIVE BANKING The cooperative banking structure in India is divided into 4 components: a) b) c) d) Primary cooperative credit society Central cooperative banks State cooperative banks Land development banks STRUCTURE OF COOPERATIVE BANKING Cooperative Credit Institution Agricultural Credit Institution Non-agricultural Credit Institution Short-term Institution Long Term Credit Institution Land Development Banks Primary Agricultural Societies 12 State Coop Bank Central Coop Bank .

Its funds are obtained from share capital. deposits. The funds of the bank consist of share capital. accept deposits from them. The funds of the society are derived from the share capital. The bank provides loans to primary credit societies within the limit of the borrowing capacity of societies. gives loan to the needy borrowers and collects repayments. However. loans and overdrafts from SCBs. loans and overdrafts from the RBI.STATE COOPERATIVE BANKS (SCBs) The SCB is a federation of central cooperative bank and act as watchdog of the cooperative banking structure in the state. LAND DEVELOPMENT BANKS 13 . PRIMARY COOPERATIVE CREDIT SOCIETY It is a village institution.  There can be mixed CCBs whose membership is open to both individuals and cooperatives societies. The SCBs lend money to CBs and primary societies and not directly to farmers. They are of 2 types:  There can be cooperative banking unions whose membership is open only to cooperative societies. which directly deals with the rural people. deposits. some loans are also given to individuals and others. deposits of members and loans from CCBs. It encourages savings among the agriculturalists. CENTRAL COOPERATIVE BANKS (CCBs): These are the federation of primary credit societies in a district.

The sources of funds for the banks are debentures subscribed by both central and state government. Thus. The establishment of land development banks now known as cooperative and rural development banks (CARDBS) is an effort in this direction.Cooperative banks and commercial banks by their very nature are not in position to provide long term loans because their deposits are mainly demand deposits. the apex of the cooperative organizations in the state is the State Bank to which Central Banks are affiliated. These banks do not accept deposits from general public. the supervision of LDBs was given to national bank of agriculture and rural development (NABARD). Recently. The primary societies are mostly affiliated to the Central Banks. 14 . The state government and RBI govern LDBs. there was great need for a specialized institution for supplying long term credit to agriculturalists. Thus.

interference has become a regular feature in the day-to-day administration of the cooperative institution. Participation of the nominated directors in the election of the chairman. 15 . Low level of recovery. Due to cooperative legislation and administration mandates Govt. High transaction of cost. Nomination of board of director by the government. Some of the problem area that arise out of the applicability of the cooperative legislative are (i) (ii) (iii) Deliberate control of cooperative by the government. Administered rate of interest structure for a long time.PROBLEMS FACED BY COOPERATIVE BANKS 1) The cooperative financial institution is facing severe problems which have restricted their ability to ensure smooth flow of credit and also in meeting the requirement of the farming (i) (ii) (iii) (iv) 2) Limited ability to mobilize resources.

whose recommendation is primarily taken into consideration while according permission. 6) On the number of occasion's institution like Food Corporation of India. 16 . 5) There is the condition of government guarantee by NABARD while sanctioning credit limits to SCBs and DCCBs but at no stage the commercial bank and regional rural banks are called upon to execute any Govt. 7) SCBs does not provide loan directly to farmers due to which they cannot keep pace with the changing requirements of the farmers. Indian Oil Corporation. Guarantee while sanctioning reference by NABARD. The state cooperative banks are not able to formulate their respective policies for investment of their funds that include their surplus resources because of certain restrictions. Hindustan Petroleum etc. have issued instruction in writing that demand draft/pay order should be obtained from the nationalization/schedule bank. 4) Prior approval of RBI is mandatory for opening of new branches of SCBs.(iv) 3) Deputation of government officials to cooperative institutions etc. The SCBs are required to submit the proposal for opening of new branches to RBI through NABARD.

Promotion and sustainance of economic interest & providing easy finance, cost effective and quality banking services to customer & PACs.

 To serve as a Balancing center for corporative societies in the state.  To promote the economic interest for the members of the bank and cooperative societies  To provide credit and banking facilities to the members and nonmembers.  To act as higher financing agency for the members Central Cooperative Bank.


 To promote and develop saving and credit instrument for economic and social welfare of the members in particular and others in general in Punjab State.

 Saving Bank Account  Current Account  Fixed Deposits  Long Term Deposits  Recurring Deposits  Collection instruments of drafts, cheques and various other

LOANS Loans to Public
 Consumer durable loans

 Personal loan to salary class  Housing loans

Loans to central cooperative banks: (Re-finance)
 Short term agriculture  Medium term agriculture loan  Short term non agriculture loan (Consumption loan)  Non farm sector loan  Rural and urban housing  Tow wheeler loan  Revolving cash credit limit to farmers  Cash credit fertilizer  Cash credit limit to cooperative sugar mills

Loans to other cooperative apex institution
 To House Fed Punjab  To IFFCO

 Bill discounting  ATMs  Telebanking  24 hour banking  Foreign Exchange

The constitution of the board is given as under:  One director from each Central Cooperative bank  Two directors to be elected out of the representative of affiliated cooperative societies order than central cooperative bank. One from apex cooperative societies and one form other member cooperative societies. 20 . The Board of Director is constituted for a period of five years.  Maximum three nominees of the government so far as government's contribution of share capital of the bank are concerned.  Registrar or his nominees not below the rank of additional registrar.MANAGEMENT The board of Directors lays down the board policies regarding the working of the bank.

FUNCTIONS OF THE BANK According to the banking regulation act 1956. banking means "Accepting for the purpose of landing or investment of deposits of money from the public. Drafts and order or otherwise. In the absence of the board. elects from the elected members the chairman and vice chairman. the administrator looks after the bank.. The members of the Board of Directors." BANK FUNCTION PRINCIPAL ANCILLARY 21 . repayable of demand or otherwise and withdrawal by cheques. Managing Director of the bank  Representative of NABARD.

ACCOUNTING DEPOSITS GRANTING ADVANCES SAFE DEPOSITS LOCKERS ISSUE ISSUE OF OF GURANTEES PAY ORDER/DD FINANCIAL HIGHLIGHTS INVESTMENT OF FUNDS: (A) STATUTORY REQUIREMENTS: - 25% of the total time liabilities are invested in the shape of SLR in Government Securities by the bank while the central cooperative banks can keep this with the Punjab State Cooperative Bank. Remaining is being invested in Loan Portfolios. Chandigarh. 5% of the total time and liabilities is kept as Cash Reserve Ratio under the RBI Act in the shape of Current Account with RBI Act in the shape of Current Account with RBI. (A) ADVANCES AND LOANS: 22 .

electric motors with or 23 .33% 2008 92. No coercive action is being taken. diesel engines.29 Short Term Agricultural Recovery (DCCBs): The recovery of short term agricultural loan of DCCBs has improved.80 2007 92. The recovery is being effective through persuasive methods.28 5894.00 5907.00 6740.07% (3) Medium Term Agricultural Advances: - The central cooperative banks are advancing Medium term Agricultural Loans in the state for various purposes namely-purchase and installation of pump sets. The farmers in the State are being provided credit for raising Kharif and Rabi Crops in the shape of cash and kind component.63 5828.00 ADVANCEMENT (IN Cr.) 4544. The Agricultural Advances made during the last four years are as under:- YEAR 2006-07 2007-08 2008-09 2009-10 2) TARGET (IN Cr.T Agricultural Loan for the last 4 years given as follows: 2006 91.16% 2009 82.) 4128.56 4801. The annual recovery of S.(1) Short Term Agricultural Advances: The short term agricultural loan is advanced by the cooperative banks for the Seasonal Agricultural Operations known as Crop Loan.00 6000.

harvesters.87 Revolving Cash Credits: A unique scheme was evolved to bring the farmers from uninstitutional credit to the cooperative credit structure.55 2091.31 196.without pump.the disbursement of M.The central cooperative banks have sanctioned credit limits as detailed below: YEARS 2007-08 2008-09 2009-10 NO.75 . disk arrowa. preparation of orchards and is as under YEARS 2007-08 2008-09 2009-10 (4) AMOUNT ADVANCE(IN CR) 117. OF BENEFICIARIES 132011 142226 148799 24 LIMITS SANCTIONED (IN Cr.57 210.00 lacs per acre subject to the maximum of Rs. tyrecarts etc.) 1527.1.00 1919. pouitry farms. purchase of agricultural implements. seeds. Rate of interest is 11%.00 lacs to the farmers for fulfilling their socio economic liabilities without falling pray to the clutches of private/non institutional money lenders. construction of bunds. the Cooperative Banks are providing Rs. land reclamation and land improvement. Under this a scheme. purchase and installation of gobar gas plants and purchase of shares of cooperative sugar mills etc.T. purchase of milch cattle. machinery.

50 42.48 49.71 71. such as for the purpose of television.(5) Non Farm Sector Loan: Another most important features of the cooperative banks in the State is that they started advances for Non Farm Sector during the year 1993 and advanced loans as detailed: YEARS 2007-08 2008-09 2009-10 NO.32 (6) Loans for Consumer Durables: Loans for consumer durables. OF BENEFICIARIES 9590 8013 4873 LIMITS SANCTIONED (IN Cr.70 79.50 25 . refrigerator.) 56. air conditioner and other household items etc were disbursed by CCBs as under: - YEAR 2007-08 2008-09 2009-10 AMOUNT DISBURSED (IN CR) 80.

000/.95 Housing Scheme: These loans are provided by the Central Cooperative Banks for construction of new house. reapir/extension and renovation of 26 .(7) Cash Credit to be Businessmen and Traders: Under this scheme.49 (8) Two Wheeler Loan to Farmers: A scheme of NABARD was started in February 2002. 50. a cash credit limit is sanctioned up to Rs25. from the Central Cooperative Banks in the State of Punjab.72 280.62 32.40 306.00 Lakhs to small businessmen and traders depending upon their business turnover on easy terms at 14% normal rate of interest. YEAR 2007-08 2008-09 2009-10 (9) AMOUNT ADVANCED (IN CR) 43.whichever is less. These limits sanctioned to the traders are detailed below: - YEAR 2007-08 2008-09 2009-10 CC LIMIT SANCTIONED (IN CR) 245. The farmers can take 75% of two-wheeler's cost or Rs.33 39.

5.16 61.00 lakhs. The year wise detail is given below: YEAR 2007-08 2008-09 27 AMOUNT DISBURSED (IN CR) 103.22 133.08 This scheme has been introduced in December 2002.existing house and the maximum limit of these loans is Rs.33 90.82 84. This loan can be advanced to salaried employees upto Rs. through all the branches of Punjab State Cooperative Bank and for all the 19 Central Cooperative Banks in the State of Punjab. loan is available for new vehicle like Car. YEAR 2007-08 2008-09 2009-10 (11) Personal Loan Scheme: - AMOUNT DISBURSED (IN CR) 39.Lorry etc upto 80% of the value of the vehicle or Rs.78 . Mini Bus. 10.64 101.00 lakhs @ 14%.10 Under vehicle loan scheme. whichever is less. 2. YEAR 2007-08 2008-09 2009-10 (10) Vehicle Loan Scheme: - AMOUNT ADVANCED (IN CR) 94.00 Lakhs.

24 23.  To evaluate and suggest efficient and effective provisions for the loans being provided.  To analyze the customer satisfaction level on the loans provided by the bank.08 48.34 29. The figures are given below: YEAR 2006-07 2007-08 2008-09 APEX BANK 26. 28 .55 18.79 10. The objectives of the study undertaken are:  To study the Non Agriculture Loans provided by the bank and to know in detail the procedure for applying these loans.73 TOTAL 101.2009-10 126.84 24.34 CCBs 74.07 OBJECTIVES OF THE STUDY The research project is made on "The Punjab State Cooperative Bank".44 PROFITS All the Cooperative Banks in the state are in loss.

Research is a step-by-step approach to investigate the problem in order to find a solution. not one. the purpose of which is to consider in detail the features of peculiar to the individual case. In such an even we employ the case study method of investigation. Examples include census data collected by 29 . RESEARCH METHODOLOGY Research can be described as 'a purposeful investigation'. which can be employed to solve a problem so it is important for the investigator to consider his problem carefully at the outset and make use of techniques that are appropriate to it. We will make use of two kinds of data: 1) PRIMARY DATA This data happens to be original in character as it is Collected a fresh and for the first time. When we desire a great deal of information concerning each individual or occurrence to be studied. but several methods. There are many techniques. To analyze the profits and advances of the bank in the previous three years time period. Such data are published by authorities who themselves are responsible for their collection. so the research worker must often make use of. much of our data may be nonquantitative by its nature. Just as the carpenter needs to use more than one tool in completing a piece of work.

which can be collected by. In this study we will make use of primary data. The sources of secondary data can broadly be classified under two heads: a) PUBLISHED SOURCES: The various sources of published data are: 30 . c. questionnaire method will be used to gather information from the management and employees. This method will be used to collect data from respondents in this study. TELEPHONE INTERVIEW: The respondents are contacted on phone for recording their responses.Indian Government. In this study the secondary data will be obtained from the booklets and journals of the companies under study in order to get information relevant to the case. b. the investigator collects the information through personal observation. OBSERVATION METHOD: In this method. which has already been collected and processed by some other agency. The primary data is collected by personally interviewing individuals and recording their responses in a structured questionnaire. one or more of following methods:a. 2) SECONDARY DATA: This corresponds to the data. Of all these methods of primary data collection. QUESTIONNAIRE METHOD: This is one of the most popular methods of data collection. d. MAILED QUESTIONNAIRE METHOD: A preset questionnaire is mailed to a selected list of persons who are requested to fill it & mail it back. This method saves time but the respondent should have a telephone.

documents required and other formalities related to these loans are studied. Such sources can be used where necessary. A detailed study of the procedure for applying to these loans. There are various sources of unpublished data such as records maintained by various Government and private offices. studies made research institutions. TOPIC UNDERTAKEN FOR THIS STUDY During the training period. thus is providing these non-agricultural loans only. b) UNPUBLISHED SOURCES: All statistical material is not always published. I concentrated only on five kinds of loans. Bathinda. scholars etc.• Reports and official publication of international bodies such as the " World Bank" International Labour Organization" • Central and State government • Semi official publications of various local bodies such as Municipal Corporations and District Boards. These loans are stated as under: • Personal Loan • Consumer Loan 31 . The reason being that the branch has provisions for only these four finds of loans. which are provided by the Cooperative Bank.

it is seen that whether the amount left is sufficient enough to pay the EMIs of the loan. 32 . whether it is repaid or not. If all the formalities are meeting. In the process. after the eligibility of the customer is checked. the consumer has to first of all give an application to the Registrar applying for the loan.• Vehicle Loan • Education Loan To apply for a loan. the file is moved to the Registrar for further notification and sanctioning of the loan. which is prepared by the Accounts Department of the office. This scheme was introduced in 2001. Then it is checked whether the customer has taken a loan before and if yes. whether the loan has been used for the stated purpose. holiday tour with your family or any other basic requirement without giving any purpose of loan. It is checked with the help of the salary slip of the customer. buying a computer. a person from the bank is sent to verify that. After making all the deductions. Furnishing your home. marriage of son/daughter. it is seen that whether the customer is able to repay the monthly installments. After the loan is sanctioned. The detail procedure of each loan is discussed as follow: PERSONAL LOAN Personal loan scheme has been framed which aims at providing credit facility for meeting out Social Economic needs of employees such as: Child Education.

Punjab State Cooperative Banks and Chandigarh Administration its board.Main feature of this scheme are Eligibility criteria class:All salaried employees of Punjab Government Chief Auditors Cooperative Department.00 lac. corporations except on deputation with Chandigarh administration boards and corporations.57 years One year after confirmation 14% 12 times of Gross S/salary or Rs. Purpose Age Service tenure Credit facility for meeting out socioEconomic needs Minimum 21 years and max. whichever is less Rate of interest Loan limit Collateral Security Two Good Sureties as per Satisfaction of the bank 33 .2.

DOCUMENTS REQUIRED Pre-sanction • Application form • Latest photograph • Bank account statement • Proof of income employer certificate of identify proof of continuity of current job • Proof of residence of the borrower and guarantor Post-sanction • Demand pronote 34 . General No employee will be given this loan facility who has defaulted in repayment of loan in any other scheme. A prepayment fee of 1% will be payable on the outstanding loan amount.Margin Repayment period Monthly Installment per Lac Payment of loan No margin required Maximum 5 Years Rs. No part-prepayment is allowed.2326.00 Loan is repayable in equal installments in the form of post dated chequess. The 1st installment will start after one month. The loan shall be repaid before retirement. Option to repay loan : -Loanee will have the option to prepay the loan at one time during the tenure of loan in lump sum.

only) • Signature verification • Post dated cheques ADVANCEMENT Under this scheme Rs.) 35 .44 Cr.• Agreement (N J stamp paper for Rs. 126. 15/.78 Cr. 133. 140 120 100 80 60 40 20 0 2006-07 2007-08 2008-09 2009-10 Amount disbursed (in Cr.22 crores were advanced during the year 200708and Rs. 103. were advanced during the year 2009-10. has been advanced during the year 2007-08 and Rs.

Main feature of this scheme are Beneficiary The bank may grant loan to the individual salary earners and non salary earners. marriage of son/daughter/brother/sister or self etc and also for providing overdraft facility to the saving account and current account holders.CONSUMER LOAN The Punjab State Cooperative Bank to make advances to the individuals directly for the purchase of consumer durables like refrigerator. scooter. education. television. radio etc and for meeting other domestic expenses like expenses on medical. 36 .

• The loan should be advanced for acquiring new assets only. • The loan should be advanced against hypothecation of the asset/assets required/to be acquired.1Lac.Purpose Loan limit Rate of Interest Margin Repayment Period Monthly Installment Per Lac Collateral Security Tenure of loan for the purchase of consumer Durables Maximum amount upto Rs. • The borrower is required to produce two witnesses who should also be a nominal member of the bank while signing the agreement. 14% 25% Maximum 5 Years Rs.2326.00 Two Good Sureties as per Satisfaction of the bank The loan should be repayable in monthly installments. 37 . • The bank should take the original invoice from the dealer. CONDITIONS FOR APPLYING THE LOAN The following conditions are required to be fulfilled in order to apply for the loan: • The borrower should be enrolled as a nominal member of the bank. The total duration of loan should not exceed five years. Purchase of second hand articles should not be financed.

71 Cr. 79. • Letter of waiver • An authority letter from the borrower to recover the installment • Application form • Surety bond • Hypothecation agreement ADVANCEMENT The bank has advanced Rs. 38 .50 Cr. from the employer of the borrower under section 39 of the act for the repayment of the loan in case the borrower fails to repay his loan.DOCUMENTS REQUIRED • Promissory note • Agreement bond • Salary certificate • An authority letter from the loan and corresponding undertaking. which was advanced by the bank in the year 2009. 71. Till the end of March 2010 as compared to Rs.

120 100 80 60 40 20 0 2006-07 2007-08 2008-09 2009-10 amount disbursed(in Cr.) SHEKARI EDUCATION LOAN FACILITY Main feature of this scheme are Beneficiary 39 Any Individual with 50%marks .

No immovable security is required if the loanee is the employee of Punjab Govt. Loan limit Rate of Interest Margin Repayment period Max. • His age of the Father/Guardian should not be more than 65 years till full recovery of loan.In 10+2 Purpose students To provide financial assistance to Deserving and meritorious For pursuing higher studies in India or Abroad Age • Minimum 17 years and Maximum 35 years. 9% No margin required The installment will start after Completion of course.10 lac.5 Lac. Disbursement of loan 40 . For the loan up to Rs. amount up to Rs. Security Collateral security: Mortgage of property value of 100% of loan amount. Insurance: Insurance policy will be taken on the life of the student for an amount equal to the loan amount assigned in favour of the bank.or Coop Department etc.. Max Period 5 years.

The branch will get sanction of total loan amount from the competent authority. 41 . the payment shall be made to the applicant. 2) Repayment of loan. if any Post-sanction: • Application nominal membership from the student/parent/guardian and guarantor. but will disburse the amount based on yearly expenses of the course. DOCUMENTS REQUIRED Pre-sanction: • Salary slip for the six months • Income proof • Income tax returns • Academic records • Particulars of scholarship won. • Third party payment in favour of concerned university or college. • In case purchase of Equipment/Books/Computer. • DP note • Letter of lien and set off • Letter of waiver • Letter of guarantee from guarantors • Loan agreement Affidavit from parent/guardian regarding: 1) Payment of interest. incase of default by the applicant.

PRECAUTION FOR DISBURSEMENT • Third party payment except for purchase of equipment/books. 5) Mortgage of collateral security duly registered & mutation in favour of the bank. VEHICLE LOAN 42 . • Payment of loan amount for the 2nd year is made after obtaining the documents relating to passing the first year & so on. 4) He will intimate the bank regarding any change in the status of study. if required. if any.3) He will not go abroad permanently without prior permission of the bank.

5% Maximum 5 Years Insurance Comprehensive insurance jointly With the name of Bank and Borrower. Lorry etc. Firm. For the purchase of new vehicle for business and personal use Max. loan is available for new vehicles like Car. Trust. 20% Upto Rs.10 Lac.3 Lac : 13% Above Rs. Amount up to Rs. HUF. Mini Bus.Under vehicle loan scheme. Purpose Loan Limit Margin Rate of Interest Repayment period . Collateral Security Two Good Sureties as per satisfaction of the Bank Besides the hypothecation of the vehicle 43 .3 Lac: 13. Main feature of this scheme are Beneficiary Coop Societies or a Company Individual. Or 80% of cost of the vehicle.

• Quotation of the vehicle. • Identity proof. Authorization letter. • Residence proof of borrower and Guarantors. Proof of business. Copy of resolution. 44 . Proof of office on case of firms.DOCUMENTS Pre-sanction • Application for the loan. • Document relating to collateral security. In case of business: • In case of firms: a) b) c) Copy of the partnership deed. if income tax payee Copy of balance sheet and profit & loss a/c for the three years. In case of salaried employee: a) b) c) a) b) c) Form 16 Latest salary statement with deduction Income tax returns for the last three years. ITRs for the last three years. if applicable • Proof of income. • In case of companies: a) b) Memorandum and article of association. • Copy of the Driving License.

• Duly signed post dated cheques for the installments. • Letter of waiver. 84. Original invoice. ADVANCEMENTS The bank has advanced Rs. • Letter of lien and set off. • Hypothecation deed. guarantor and mortgagor. One set of duplicate keys.08 Cr.Post sanction • Application for the nominal membership of the borrower. Copy of Registration Certificate. while the amount was Rs. • D. • Mortgage deed duly registered and mutation in the favour of the bank. PRECAUTION FOR THE DISBURSEMENT: The following documents to be obtained after disbursement: • • • • Insurance cover. • Loan agreement. 45 . if applicable. note. to the customer in the year 2009-10.82 Cr. in the year 2008-09. 61.P.

90 80 70 60 50 40 30 20 10 0 Amount disbursed (in Cr.) 3-D Column 3 2005-06 2006-07 2007-08 2008-09 46 .

No 1. 0 Yes No 47 . 50 2.Data Analysis and Interpretation Q.Yes 2. 1 1.1 Are you Customer of this bank? Table No.

11000-15000 4. Above 1.Q. 5 5. 16000-20000 5. 6000-10000 3. 10 3.2 Income segment do you belong? Table No.15 2.1000-5000 2.2 1.3 Have you an account in this bank? 48 . 13 4. 7 1000-5000 6000-10000 11000-15000 16000-20000 Above Q.

0 Yes No Q. 3 1. 4 From How many years you are customer of this bank? 49 .Yes 2.Table No.No 1. 50 2.

12 3. From 5-10 year 4. Above 10 year 1. 5 Why you prefer this bank? Table No.Table No. From 2-5 year 3. 4 1. 5 50 . 18 1-2 year 2-5 year 5-10 year Above 10 year Q. 10 4. 10 2. From 1-2 year 2.

All of the above 1. 15 Low interest rates Less Documentations Easy Disbursement All of the above Q.10 2. House loan 51 1.Personal loan 2. 12 4. 6 What type of loan you prefer to fulfill your needs? Table No.Less documentations 3. 15 . 20 2.Low interest rates 2. Easy disbursement 4. 6 1. 13 3.1.

7 1. 9 Personal loan House loan Consumer loan Vehicle loan Q.3. Yes 2. 50 2. 0 . Consumer loan 4. Vehicle loan 3. No 52 1. 6 4.7 Security demand by the bank while taking loan? Table No.

Yes No Q. 20 53 . Slow 3. 8 1. Can’t say 1. 25 2.8 Disbursement of loan by the bank? Table No. Quick 2. 5 3.

Can’t say 1. 2 54 .10 4. Better 4.Quick slow can't say Q. 30 2. Good 3.9 Perception of customers towards loan procedure? Table No. 9 1.Well 2. 8 3.

10 How you feel about the services? Table No.10 4. Can’t say 1.12 3.Well good better can't say Q. 3 55 . 25 2. Better 4. 10 1. Good 3.Well 2.

Well good better can't say CONCLUSION With the help of the research work done. and by interpretation of the responses of the customers. following conclusions can be made: • It is clear that the bank's personal loans and house building loans are more popular and hence the customers taking these loans are more than the other customers. 56 . 57 .000/. 4.• During the analysis.14 days. non employees and businessmen. • The rate of interest of bank is reasonable which the reason is for most of the employees for taking loan from the institution. • The average processing time for the loan is 7 . it was found that mostly the employees of the bank are the customers of the bank. • The bank has three categories of its customers as its own employees.000/• The bank is able to reach up to the satisfaction level of its customers. 1.00. BIBLIOGRAPHY • Financial Accounting By Jain & Narang • Research Methodology by C. hence mostly the employees undertaken a loan ranging between Rs.50.Kothari • Annual Reports of Punjab State Cooperative Bank • 1700/. • As the customers are the middle income group having an average salary of Rs. • The customers have suggested that the formalities included during the loan processing should be reduced.per month and there is a direct correlation between the income of the employees and the amount of loan taken.

Yes 2.2 Income segment do you belong to? 58 .in Questionnaire Q.pbcooperatives. No Q.• Are you customer of this bank? 1.

Low interest rates 2.4 For how many years you are associated with this bank? 1. Above 10 year Q.3 Do you have an account in this bank? 1. From 1-2 year 2. Form 2-5 year 3.1.5 Why do you prefer this bank? 1. 16000-20000 5. 11000-15000 4. All of the above Q. Personal loan 2. Less documentations 3. 6000-10000 3. 1000-5000 2.6 What type of loan you prefer to fulfill your need? 1. Yes 2. From 5-10 year 4. Easy disbursement 4. Above Q. No Q. House loan 59 .

Better 4. Yes 2. Quick 2. Slow 3. Well 2. Better 4. Well 2. Can’t say 60 . No Q.3. Vehicle loan Q. Good 3.9How is the Perception of customers towards loan procedure? 1.10 What is your perception about the services? 1. Can’t say Q. Can’t say Q.8 How is the Disbursement of loan by the bank? 1.7 Does the bank demand Security while taking loan? 1. Consumer loan 4. Good 3.