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.


I, 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.

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.


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

namely. which are repayable on demand or otherwise. respectively. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged. through cheques. and which are used for lending or investment.  "Bank collects money from those who have it to spare or who are saving it out of their income.a dealer in debts which aims at earning profit by accepting deposits from public." 5 . A bank is one that accepts deposits from public and lends money. drafts or otherwise. Thus "A bank is a commercial establishment .WHAT IS A BANK Bank is an institution that deals in money and its substitutes and provides other financial services. acceptance of deposits and lending. and  It lends this money to those who require it.” This definition brings out the two important functions of a banker.

more particularly to the organized sector. In February 1966.employed had to depend on the money lenders who exploit them by charging higher interest rates. small entrepreneurs. as the private banks were still not extending the required support in the form of credit disbursal. In 1954. to function as Central Bank of the country. integrated. 1955 by acquiring the substantial part of share capital by RBI. over the years has gone through various phases after establishment of Reserve Bank of India in 1935 during the British Rule. Another evaluation of the banking in India was undertaken during 1966. sectors of the industry and trade. a scheme of Social 6 . State-partnered commercial banking institution with effective machinery of branches spread all over the country. The bulk of deposits collected. while farmers. were being deployed in organized.HISTORY OF INDIAN BANKING Indian banking system. 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. associate banks came into fold of public sector banking. of the princely states. professionals and self . Earlier to the creation of RBI. the All India Rural Credit Survey Committee submitted its report recommending creation of a strong. transporters. the imperial Bank of India was looking after the central bank functions.

On July19. The Service Area Approach was introduced during 1989. deposits of Rs. 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. The scheme however. RBI introduced the lead Bank Scheme on recommendations of FK Nariman Committee. 6 more banks were nationalized which brought 91% of the deposits and 84% of the advances in the Public Sector Banking. did not provide any remedy. loans of Rs. 1969. RRBs were established (on the recommendation of M. the government promulgated Banking Companies (Acquisition and Transfer of Undertakings) Ordinance 1969 to acquire 14 bigger commercial banks with paid up capital of Rs. the consolidation phase started in late 80s and more particularly during early 90s. While the 1970s and 1980s saw the high growth rate of branch banking network. 7 . with the submission of report by the Narasimham Committee on Reforms in Financial Services Sector during 1991.50 crores. in 1980. 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. 1813 crores and with 4134 branches accounting or 80% of advances.Control was set up whose main function was to periodically assess the demand for bank credit from various sectors of the economy to determine the priorities for grant of loans and advances so as to ensure optimum and efficient utilization of resources. Subsequently. during 1976. 2629 crores. In the post nationalized period. During December 1969. 28.

Attention was paid to improving house keeping. 8 . banking in India has evolved through four distinct phases. credit management. Branch network of the banks was widened at a very fast pace covering the rural and semi urban population. for meeting the requirement of Indian economy.  Expansion Phase: . credit flows were guided towards the priority sectors. a determined effort was made to make banking facilities available to the masses. The focus during this period was to lay the foundation for a sound banking system in the country. customer services. staff productivity and profitability of banks.This phase began in mid60s but gained momentum after nationalization of banks and continued till 1984.In these five decades since independence. As a result the phase witnessed the development of necessary legislative framework for facilitating re-organization and consolidation of the banking system. which saw marked slowdown in the branch expansion. Most importantly.This phase can be considered to cover 1950s till nationalization of banks in 1969.  Consolidation Phase: . 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. which had no access to the banking hitherto.The phase started in 1985 when RBI took a series of policy initiatives. namely:  Foundation Phase: .

technological changes. The cooperative banks are an important constituent of the Indian Financial System. home finance. along with some small scale industries and selfemployment driven activities. autonomy packages. etc. The cooperative movement originated in the West. industries. While the cooperative banks in rural areas mainly finance agricultural base activities including farming. but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. hatchery. capital adequacy.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. 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. personal finance etc. their number. personal finance. Some of 9 . milk. more competition. COOPERATIVE BANKS The cooperative bank has history of almost 100 years. etc. judging by the role assigned to them. Reforms Phase: . prudential guidelines on asset classification and income recognition. and the number of offices them operates. consumer finance. the cooperative banks in urban areas mainly finance various categories of people for self employment. small scale units. cattle. Their role in rural financing continues to be important even today. the expectations they are supposed to fulfill.

They are governed by the Banking Regulation Act 1949 and banking Laws Act 1965. 10 . 1965. personal interaction with customers. which operate both in urban and non urban centers. 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. According to NAFCUB. the cooperative banks are small sized units organized in the cooperative sector. the total deposits & lending of cooperative banks are much more than old private sector banks and also the new private sector banks.the cooperative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. Regulated by the RBI. and their ability to catch the never of the local clientele. This exponential growth of cooperative banks is attributed mainly to their much better local reach. they are governed by the banking regulation act 1949 and banking laws (Cooperative societies) act. They finance small borrowers in industrial and trade sectors besides professional and salary classes.

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 11 .

loans and overdrafts from SCBs. some loans are also given to individuals and others. However. CENTRAL COOPERATIVE BANKS (CCBs): These are the federation of primary credit societies in a district. PRIMARY COOPERATIVE CREDIT SOCIETY It is a village institution. The bank provides loans to primary credit societies within the limit of the borrowing capacity of societies. deposits. They are of 2 types:  There can be cooperative banking unions whose membership is open only to cooperative societies. Its funds are obtained from share capital. accept deposits from them. deposits. which directly deals with the rural people.State Coop Bank Central Coop Bank Land Development Banks Primary Agricultural Societies 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.  There can be mixed CCBs whose membership is open to both individuals and cooperatives societies. It encourages savings among the agriculturalists. The funds of the bank consist of share capital. The SCBs lend money to CBs and primary societies and not directly to farmers. gives loan to the needy borrowers and collects repayments. loans and overdrafts from the RBI. The funds of the 12 .

13 . The sources of funds for the banks are debentures subscribed by both central and state government. deposits of members and loans from CCBs. The state government and RBI govern LDBs. Recently. These banks do not accept deposits from general public. there was great need for a specialized institution for supplying long term credit to agriculturalists. the supervision of LDBs was given to national bank of agriculture and rural development (NABARD). The establishment of land development banks now known as cooperative and rural development banks (CARDBS) is an effort in this direction. The primary societies are mostly affiliated to the Central Banks. Thus.society are derived from the share capital. the apex of the cooperative organizations in the state is the State Bank to which Central Banks are affiliated. LAND DEVELOPMENT BANKS 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. Thus.

Some of the problem area that arise out of the applicability of the cooperative legislative are (i) (ii) Deliberate control of cooperative by the government. High transaction of cost. Due to cooperative legislation and administration mandates Govt. Nomination of board of director by the government. interference has become a regular feature in the day-to-day administration of the cooperative institution. 14 . Low level of recovery.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. Administered rate of interest structure for a long time.

6) On the number of occasion's institution like Food Corporation of India. 15 . Hindustan Petroleum etc. Deputation of government officials to cooperative institutions etc. have issued instruction in writing that demand draft/pay order should be obtained from the nationalization/schedule bank. Indian Oil Corporation. 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. whose recommendation is primarily taken into consideration while according permission. 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. 4) Prior approval of RBI is mandatory for opening of new branches of SCBs. Guarantee while sanctioning reference by NABARD. The SCBs are required to submit the proposal for opening of new branches to RBI through NABARD. 7) SCBs does not provide loan directly to farmers due to which they cannot keep pace with the changing requirements of the farmers.(iii) (iv) 3) Participation of the nominated directors in the election of the chairman.

 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. 16 . cost effective and quality banking services to customer & PACs.MISSION Promotion and sustainance of economic interest & providing easy finance. OBJECTIVES OF BANK  To serve as a Balancing center for corporative societies in the state.

 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 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 board of Directors lays down the board policies regarding the working of the bank. The Board of Director is constituted for a period of five years. 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.


repayable of demand or otherwise and withdrawal by cheques. In the absence of the board. elects from the elected members the chairman and vice chairman." BANK FUNCTION 20 .  Managing Director of the bank  Representative of NABARD. Drafts and order or otherwise. Maximum three nominees of the government so far as government's contribution of share capital of the bank are concerned. The members of the Board of Directors. 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.  Registrar or his nominees not below the rank of additional registrar. the administrator looks after the bank..

Chandigarh. 5% of the total time and liabilities is kept as Cash Reserve Ratio under the RBI Act in 21 .PRINCIPAL ANCILLARY 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.

The farmers in the State are being provided credit for raising Kharif and Rabi Crops in the shape of cash and kind component.00 ADVANCEMENT (IN Cr. Remaining is being invested in Loan Portfolios.33% 2008 92.80 2007 92. The annual recovery of S. 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.00 6000.63 5828.07% 22 .T Agricultural Loan for the last 4 years given as follows: 2006 91.56 4801. (A) ADVANCES AND LOANS: (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.the shape of Current Account with RBI Act in the shape of Current Account with RBI.28 5894.) 4128. The recovery is being effective through persuasive methods.00 5907.16% 2009 82.29 Short Term Agricultural Recovery (DCCBs): The recovery of short term agricultural loan of DCCBs has improved. No coercive action is being taken.) 4544.00 6740.

1.6. purchase and installation of gobar gas plants and purchase of shares of cooperative sugar mills etc. preparation of orchards and plantation. disk arrowa. pouitry farms. purchase of milch cattle. electric motors with or without is as under YEARS 2007-08 2008-09 2009-10 (4) AMOUNT ADVANCE(IN CR) 117. seeds. Under this a scheme.The central cooperative banks have sanctioned credit limits as detailed below: - 23 . tyrecarts etc.31 196. construction of bunds.00 lacs per acre subject to the maximum of Rs.57 210. diesel engines. harvesters. land reclamation and land improvement. machinery.00 lacs to the farmers for fulfilling their socio economic liabilities without falling pray to the clutches of private/non institutional money lenders. the Cooperative Banks are providing Rs. Rate of interest is 11%.(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.T. purchase of agricultural implements.the disbursement of M.87 Revolving Cash Credits: A unique scheme was evolved to bring the farmers from uninstitutional credit to the cooperative credit structure.

air conditioner and other household items etc were disbursed by CCBs as under: - 24 .) 1527.55 2091. OF BENEFICIARIES 132011 142226 148799 LIMITS SANCTIONED (IN Cr.YEARS 2007-08 2008-09 2009-10 NO.) 56. refrigerator. such as for the purpose of television.50 42.00 1919.75 (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. OF BENEFICIARIES 9590 8013 4873 LIMITS SANCTIONED (IN Cr.48 49.32 (6) Loans for Consumer Durables: Loans for consumer durables.

71 71.000/.YEAR 2007-08 2008-09 2009-10 AMOUNT DISBURSED (IN CR) 80.50 (7) Cash Credit to be Businessmen and Traders: Under this scheme. a cash credit limit is sanctioned up to Rs25. 50.33 25 .70 79.whichever is less.00 Lakhs to small businessmen and traders depending upon their business turnover on easy terms at 14% normal rate of interest. from the Central Cooperative Banks in the State of Punjab.49 (8) Two Wheeler Loan to Farmers: A scheme of NABARD was started in February 2002. YEAR 2007-08 AMOUNT ADVANCED (IN CR) 43. These limits sanctioned to the traders are detailed below: - YEAR 2007-08 2008-09 2009-10 CC LIMIT SANCTIONED (IN CR) 245.72 280. The farmers can take 75% of two-wheeler's cost or Rs.40 306.

08 This scheme has been introduced in December 2002.16 61.33 90. 10. YEAR 2007-08 2008-09 2009-10 AMOUNT ADVANCED (IN CR) 94. YEAR 2007-08 2008-09 2009-10 (11) Personal Loan Scheme: - AMOUNT DISBURSED (IN CR) 39.82 84.62 32. 5. through all the branches of Punjab State Cooperative Bank and for all the 19 Central Cooperative Banks in the State of Punjab. Mini Bus. whichever is less.64 101. reapir/extension and renovation of existing house and the maximum limit of these loans is Rs.95 Housing Scheme: These loans are provided by the Central Cooperative Banks for construction of new house. This loan can be advanced 26 .00 lakhs.10 (10) Vehicle Loan Scheme: - Under vehicle loan scheme. loan is available for new vehicle like Car.00 Lakhs.Lorry etc upto 80% of the value of the vehicle or Rs.2008-09 2009-10 (9) 39.

07 OBJECTIVES OF THE STUDY The research project is made on "The Punjab State Cooperative Bank".34 29. The year wise detail is given below: YEAR 2007-08 2008-09 2009-10 AMOUNT DISBURSED (IN CR) 103.84 24.08 48.24 23.34 CCBs 74. 2. The figures are given below: YEAR 2006-07 2007-08 2008-09 APEX BANK 26.78 salaried employees upto Rs.73 TOTAL 101. 27 .79 10.55 18.44 PROFITS All the Cooperative Banks in the state are in loss. 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.00 lakhs @ 14%.22 133.

so the research worker must often make use of.  To evaluate and suggest efficient and effective provisions for the loans being provided. We will make use of two kinds of data: 28 . In such an even we employ the case study method of investigation. the purpose of which is to consider in detail the features of peculiar to the individual case. When we desire a great deal of information concerning each individual or occurrence to be studied. but several methods.  To analyze the profits and advances of the bank in the previous three years time period. RESEARCH METHODOLOGY Research can be described as 'a purposeful investigation'. There are many techniques. much of our data may be nonquantitative by its nature. not one. Research is a step-by-step approach to investigate the problem in order to find a solution. 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. Just as the carpenter needs to use more than one tool in completing a piece of work. To analyze the customer satisfaction level on the loans provided by the bank.

This method will be used to collect data from respondents in this study. the investigator collects the information through personal observation. In this study the secondary data will be obtained from the booklets and journals of the companies under study in order to get information 29 . b. one or more of following methods:a. This method saves time but the respondent should have a telephone. which has already been collected and processed by some other agency. MAILED QUESTIONNAIRE METHOD: A preset questionnaire is mailed to a selected list of persons who are requested to fill it & mail it back. The primary data is collected by personally interviewing individuals and recording their responses in a structured questionnaire. Of all these methods of primary data collection. In this study we will make use of primary data. 2) SECONDARY DATA: This corresponds to the data. OBSERVATION METHOD: In this method. QUESTIONNAIRE METHOD: This is one of the most popular methods of data collection. d. Such data are published by authorities who themselves are responsible for their collection.1) PRIMARY DATA This data happens to be original in character as it is Collected a fresh and for the first time. Examples include census data collected by Indian Government. questionnaire method will be used to gather information from the management and employees. TELEPHONE INTERVIEW: The respondents are contacted on phone for recording their responses. which can be collected by. c.

b) UNPUBLISHED SOURCES: All statistical material is not always published.relevant to the case. Bathinda. The reason being that the branch has provisions for only these four finds of loans. scholars etc. TOPIC UNDERTAKEN FOR THIS STUDY During the training period. Such sources can be used where necessary. I concentrated only on five kinds of loans. There are various sources of unpublished data such as records maintained by various Government and private offices. which are provided by the Cooperative Bank. The sources of secondary data can broadly be classified under two heads: a) PUBLISHED SOURCES: The various sources of published data are: • 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. studies made research institutions. A detailed study of the procedure for 30 . thus is providing these non-agricultural loans only.

whether the loan has been used for the stated purpose. whether it is repaid or not. a person from the bank is sent to verify that. These loans are stated as under: • Personal Loan • Consumer Loan • Vehicle Loan • Education Loan To apply for a loan. In the process. Then it is checked whether the customer has taken a loan before and if yes. the consumer has to first of all give an application to the Registrar applying for the loan. After making all the deductions.applying to these loans. marriage of 31 . the file is moved to the Registrar for further notification and sanctioning of the loan. after the eligibility of the customer is checked. it is seen that whether the amount left is sufficient enough to pay the EMIs of the loan. If all the formalities are meeting. It is checked with the help of the salary slip of the customer. which is prepared by the Accounts Department of the office. 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. documents required and other formalities related to these loans are studied. buying a computer. it is seen that whether the customer is able to repay the monthly installments. Furnishing your home.

holiday tour with your family or any other basic requirement without giving any purpose of loan. Punjab State Cooperative Banks and Chandigarh Administration its board. Purpose Age Service tenure Credit facility for meeting out socioEconomic needs Minimum 21 years and max.57 years One year after confirmation 14% 32 Rate of interest . This scheme was introduced in 2001.son/daughter. Main feature of this scheme are Eligibility criteria class:All salaried employees of Punjab Government Chief Auditors Cooperative Department. corporations except on deputation with Chandigarh administration boards and corporations.

00 Loan is repayable in equal installments in the form of post dated chequess.2. whichever is less Two Good Sureties as per Satisfaction of the bank No margin required Maximum 5 Years Rs. The loan shall be repaid before retirement.00 lac. A prepayment fee of 1% will be payable on the outstanding loan amount.Loan limit Collateral Security Margin Repayment period Monthly Installment per Lac Payment of loan 12 times of Gross S/salary or Rs.2326. Option to repay loan : -Loanee will have the option to prepay the loan at one time during the tenure of loan in lump sum. The 1st installment will start after one month. No part-prepayment is allowed. DOCUMENTS REQUIRED Pre-sanction • Application form • Latest photograph • Bank account statement 33 . General No employee will be given this loan facility who has defaulted in repayment of loan in any other scheme.

103. 126.78 Cr. has been advanced during the year 2007-08 and Rs. 15/.only) • Signature verification • Post dated cheques ADVANCEMENT Under this scheme Rs. were advanced during the year 2009-10.• 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 • Agreement (N J stamp paper for Rs. 133. 34 .22 crores were advanced during the year 200708and Rs.44 Cr.

140 120 100 80 60 40 20 0 2006-07 2007-08 2008-09 2009-10 Amount disbursed (in Cr.) 35 .

Main feature of this scheme are Beneficiary The bank may grant loan to the individual salary earners and non salary earners. education.1Lac. scooter. radio etc and for meeting other domestic expenses like expenses on medical.00 Two Good Sureties as per Satisfaction of the bank .CONSUMER LOAN The Punjab State Cooperative Bank to make advances to the individuals directly for the purchase of consumer durables like refrigerator.2326. 14% 25% Maximum 5 Years Rs. marriage of son/daughter/brother/sister or self etc and also for providing overdraft facility to the saving account and current account holders. television. Purpose Loan limit Rate of Interest Margin Repayment Period Monthly Installment Per Lac Collateral Security Tenure of loan 36 for the purchase of consumer Durables Maximum amount upto Rs.

DOCUMENTS REQUIRED • Promissory note • Agreement bond • Salary certificate • An authority letter from the loan and corresponding undertaking. The total duration of loan should not exceed five years.The loan should be repayable in monthly installments. • The bank should take the original invoice from the dealer. Purchase of second hand articles should not be financed. • The borrower is required to produce two witnesses who should also be a nominal member of the bank while signing the agreement. • The loan should be advanced for acquiring new assets only. 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. 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. • Letter of waiver • An authority letter from the borrower to recover the installment • Application form 37 . • The loan should be advanced against hypothecation of the asset/assets required/to be acquired.

50 Cr. 79.71 Cr.• Surety bond • Hypothecation agreement ADVANCEMENT The bank has advanced Rs.) 38 . which was advanced by the bank in the year 2009. 120 100 80 60 40 20 0 2006-07 2007-08 2008-09 2009-10 amount disbursed(in Cr. 71. Till the end of March 2010 as compared to Rs.

• His age of the Father/Guardian should not be more than 65 years till full recovery of loan. Max Period 5 years.10 lac.SHEKARI EDUCATION LOAN FACILITY Main feature of this scheme are Beneficiary Purpose students For pursuing higher studies in India or Abroad Any Individual with 50%marks In 10+2 To provide financial assistance to Deserving and meritorious Age • Minimum 17 years and Maximum 35 years. amount up to Rs. 9% No margin required The installment will start after Completion of course. Loan limit Rate of Interest Margin Repayment period Max. Security 39 .

For the loan up to Rs. • Third party payment in favour of concerned university or college. the payment shall be made to the applicant..or Coop Department etc. • DP note • Letter of lien and set off 40 . No immovable security is required if the loanee is the employee of Punjab Govt. Disbursement of loan The branch will get sanction of total loan amount from the competent authority. 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. if any Post-sanction: • Application nominal membership from the student/parent/guardian and guarantor.5 Lac. • In case purchase of Equipment/Books/Computer.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.

41 . 4) He will intimate the bank regarding any change in the status of study. 2) Repayment of loan. PRECAUTION FOR DISBURSEMENT • Third party payment except for purchase of equipment/books.• Letter of waiver • Letter of guarantee from guarantors • Loan agreement Affidavit from parent/guardian regarding: 1) Payment of interest. • Payment of loan amount for the 2nd year is made after obtaining the documents relating to passing the first year & so on. 3) He will not go abroad permanently without prior permission of the bank. incase of default by the applicant. 5) Mortgage of collateral security duly registered & mutation in favour of the bank. if any. if required.

Amount up to Rs. Trust. Or 80% of cost of the vehicle. Main feature of this scheme are Beneficiary Coop Societies or a Company Individual. HUF. Mini Bus. 20% Upto Rs. Lorry etc. For the purchase of new vehicle for business and personal use Max.3 Lac: 13.3 Lac : 13% Above Rs. Purpose Loan Limit Margin Rate of Interest Repayment period .10 Lac. Firm.5% Maximum 5 Years Insurance Comprehensive insurance jointly With the name of Bank and 42 .VEHICLE LOAN Under vehicle loan scheme. loan is available for new vehicles like Car.

• Residence proof of borrower and Guarantors. In case of business: • In case of firms: 43 . • Identity proof. ITRs for the last three years. • Copy of the Driving License. • Document relating to collateral security. Proof of business. 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.Borrower. • Quotation of the vehicle. Collateral Security Two Good Sureties as per satisfaction of the Bank Besides the hypothecation of the vehicle DOCUMENTS Pre-sanction • Application for the loan. if applicable • Proof of income. if income tax payee Copy of balance sheet and profit & loss a/c for the three years.

44 . • Letter of lien and set off. • Loan agreement. • Mortgage deed duly registered and mutation in the favour of the bank.a) b) c) Copy of the partnership deed.P. Authorization letter. PRECAUTION FOR THE DISBURSEMENT: The following documents to be obtained after disbursement: • • • • Insurance cover. • D. One set of duplicate keys. Proof of office on case of firms. • In case of companies: a) b) Memorandum and article of association. Original invoice. Copy of Registration Certificate. if applicable. • Duly signed post dated cheques for the installments. Copy of resolution. note. guarantor and mortgagor. • Hypothecation deed. Post sanction • Application for the nominal membership of the borrower. • Letter of waiver.

61. while the amount was Rs.) 3-D Column 3 45 . 90 80 70 60 50 40 30 20 10 0 2005-06 2006-07 2007-08 2008-09 Amount disbursed (in Cr.82 Cr.ADVANCEMENTS The bank has advanced Rs.08 Cr. 84. in the year 2008-09. to the customer in the year 2009-10.

50 2. 1 1.Data Analysis and Interpretation Q. 0 46 .1 Are you Customer of this bank? Table No.Yes 2.No 1.

1000-5000 2. 7 47 . 11000-15000 4. 5 5.15 2.2 Income segment do you belong? Table No. Above 1. 10 3. 6000-10000 3. 13 4.Yes No Q.2 1. 16000-20000 5.

No 1.Yes 2. 3 1. 0 48 . 50 2.1000-5000 6000-10000 11000-15000 16000-20000 Above Q.3 Have you an account in this bank? Table No.

Yes No Q. From 2-5 year 49 1. 4 1. 12 . 4 From How many years you are customer of this bank? Table No. 10 2. From 1-2 year 2.

10 4. 12 4. 5 1. 13 3.Low interest rates 2. 5 Why you prefer this bank? Table No. Above 10 year 3. Easy disbursement 4.All of the above 50 1.3. From 5-10 year 4.10 2. 15 . 18 1-2 year 2-5 year 5-10 year Above 10 year Q.Less documentations 3.

Low interest rates Less Documentations Easy Disbursement All of the above Q. 20 2. 6 1.Personal loan 2. 9 51 . Consumer loan 4. 6 What type of loan you prefer to fulfill your needs? Table No. 6 4. Vehicle loan 1. 15 3. House loan 3.

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

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

Good 3. Better 4. 30 2.Well 2.10 4. Can’t say 1.9 Perception of customers towards loan procedure? Table No. 2 54 . 8 3.Quick slow can't say Q. 9 1.

25 2.10 4. 3 55 . Good 3.Well good better can't say Q. Better 4.10 How you feel about the services? Table No.12 3. Can’t say 1.Well 2. 10 1.

56 .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.

000/.14 days. • As the customers are the middle income group having an average salary of Rs. 57 .000/• The bank is able to reach up to the satisfaction level of its Rs. • The bank has three categories of its customers as its own employees. it was found that mostly the employees of the bank are the customers of the bank. hence mostly the employees undertaken a loan ranging between• During the analysis. 1.50.Kothari • Annual Reports of Punjab State Cooperative Bank • www. • The customers have suggested that the formalities included during the loan processing should be reduced. non employees and businessmen.00. 1700/. • The rate of interest of bank is reasonable which the reason is for most of the employees for taking loan from the institution.per month and there is a direct correlation between the income of the employees and the amount of loan taken. BIBLIOGRAPHY • Financial Accounting By Jain & Narang • Research Methodology by C. • The average processing time for the loan is 7 .

No Q.• Questionnaire Q.2 Income segment do you belong to? 58 .1 Are you customer of this bank? 1. Yes 2.pbcooperatives.

1000-5000 2. House loan 59 . All of the above Q.1. From 1-2 year 2. Easy disbursement 4. Yes 2. 11000-15000 4. 6000-10000 3.3 Do you have an account in this bank? 1. Above 10 year Q. Less documentations 3. Form 2-5 year 3. From 5-10 year 4. Personal loan 2.4 For how many years you are associated with this bank? 1. No Q. Above Q. 16000-20000 5.5 Why do you prefer this bank? 1.6 What type of loan you prefer to fulfill your need? 1. Low interest rates 2.

9How is the Perception of customers towards loan procedure? 1. Slow 3. Quick 2. Well 2. No Q.8 How is the Disbursement of loan by the bank? 1.10 What is your perception about the services? 1.7 Does the bank demand Security while taking loan? 1. Consumer loan 4. Can’t say 60 .3. Better 4. Can’t say Q. Good 3. Well 2. Yes 2. Good 3. Vehicle loan Q. Better 4. Can’t say Q.