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INSTITUTE OF MANAGEMENT STUDIES

A PROJECT REPORT
ON

“Evaluation of customer satisfaction on personal loan”


( HDFC&ICICI )

Submitted by
SHAMILKUMAR.Y.H.
Reg No’s: MBA/08/16
2009-2010

Under the Guidance of

Mr. ROHIT C KALASKAR

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Certificate

This is to certify that the project work entitled “Evaluation of

customer satisfaction on personal loan ( HDFC&ICICI )” has

been successfully carried out by SHAMILKUMAR.Y.H.

(MBA/08/16) of MBA III Tri-Semester student, under our

supervision and guidance.

Mr. Rohit C Kalaskar External Examiner


Sec.Gen & Professor
HET’s IMS Hubli

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DECLARATION

I the student studying in MBA Third Tri-semester here by declare

that the project work entitled “Evaluation of customer satisfaction

on personal loan ( HDFC&ICICI )”successfully completed and

submitted by me. Under the guidance of Rohit. C. Kalaskar Sec Gen &

Prof, HET’s INSTITUTE OF MANAGEMENT STUDIES. This is my

original work and has not been submitted earlier to any other

Institution.

The report is for the fulfillment of the Third Tri-semester MBA. The

Matter in this report is based on the data collected by me at” Evaluation

of customer satisfaction on personal loan ( HDFC&ICICI )” , in

HUBLI.

Signature
SHAMILKUMAR.Y.H
Place: HUBLI
Date: 17 /08/2009

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ACKNOWLEDGEMENT

The success of this project would be incomplete if I don’t acknowledge those

people who have really put their effort to make my project successful and worthwhile.

I take it as my pleasure and honor to express my sincere gratitude to who helped

me in complete my project and respondents, who not only gave me opportunity to do my

project in their company but also helped me a lot, For their kind support and information

required for the fulfillment of this project successfully whose guidance has made me to

learn something valuable inputs.

I am very grateful to my Prof. Rohit. C. Kalaskar for giving me an opportunity to

conduct this study.

And I sincerely thank to all the Faculty members, Respondents, who have spared their

valuable time and have provided all the information required by me.

Lastly I take this opportunity to thank again the person behind the curtain Prof.

Rohit .C. Kalaskar. whose guidance has made me to learn something valuable and gain

some experience and learning about the subject and its practicality. His concepts and

practical exposure helped me a lot and it was great pleasure and honor working under

him.

By: SHAMILKUMAR

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TABLE CONTENTS

o Introduction

o Need for the study

o Methodology

o Data collection

o Data analysis (tools)

o Findings

o Consumer satisfaction

o Data analysis

o Questionnaires

o Conclusion

o Reference

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Introduction and
schemes of study

Introduction:-

A personal loan is a sum of money that an adult person borrows to meet his

financial needs and requirements. An individual can take an easy personal

loan or a guaranteed personal loan for a variety of reasons. Loans for

personal debt help provide funds to purchase that dream boat or car, pay for

your mortgage arrears or home improvement contacted by a lender who will

help answer any and help you get the relief you seek. Once you receive your

money it is yours for whatever purpose you need. It is important that you

pay back the money on the date set by your assigned lender. By making the

process safe and easy many people are able to get the funding they need with

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no trouble. Personal Loans strives to match you up with a lender who will

look out for your needs. This is why we are on top of our.

We are a service that is dedicated to customer satisfaction in all

aspects of the payday loan process. Providing a safe process can really put

the customer at ease. There are enough hassles each day that can surround a

person.

What are personal Loans and how are they different from other:-

Many times you would have experienced financial crisis. During such events

you would have borrowed money from your neighbor or acquaintance.

These kinds of loans which are available in banks and other financial

institution are known as personal loans .A personal loan can be a secured

Or unsecured one depending upon the company's practices,

Your credit history etc Have a look at more on personal loans from this

article. This article covers.

• What are personal loans?


• What are its uses?
• What are the types in it?
• Benefits of secured and unsecured loans
• Who will provide personal loans?

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• How one can avail personal loans?

A personal loan is a sum of money that an adult person borrows to meet his

financial needs and requirements. An individual can take an easy personal

loan or a guaranteed personal loan for a variety of reasons. Loans for

personal debt help provide funds to purchase that dream boat or car,

pay for your mortgage arrears or home improvement requirements- in fact

personal loans help meet most of the financial emergencies that an

individual can think of. Personal loans are often the most preferred type of

loan on account of their flexibility. The two most common types of

Personal loans are:

• Secured Loans and

• Unsecured Loans

Both these options are linked to the choice that one can use

any fixed asset to serve as collateral to secure an easy personal loan.

A Secured Personal Loan:-

• The loan that is secured against some sort of immovable/movable

asset is known as secured loan.

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• This sort of guaranteed personal loans is easily available on account

of the collateral that is provided.

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Alongside; thereby making the lending institutions more

Comfortable in forwarding the loan:-


• Secured personal loans involve rates of interest that are much lower

and easy options for repayment.

• Due to the collateral that is provided, banks and financial institutions

usually are unperturbed by defaults in payments or by debts that are

pending.

• Secured personal loans are made available to the individual within a

period of thirty days after submitting an application.

How Does a Secured Personal Loan Benefit the Borrower

And the Lender:-


1. Secured Personal Loans can be repaid over a longer period of time,

with a lower monthly payment.

2. They are cost effective on account of the low rates of interest

charged on the loan.

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3. Since the loan has been secured by pledging the assets of the

borrower, the risk to the lender's investment is greatly reduced.

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Their easy availability is another factor. Very few loan applications for

secured loans are turned down; since the loan would be secured on the

strength of the borrower’s assets

Is an Unsecured Personal Loan A Viable Alternative To The

Secured Loan?
• In such a loan, the sum of money given by the bank or by the financial

institution is not secured by any collateral.

• As this loan is unsecured, the lender's risk in the investment is high,

and therefore the borrower is charged a higher rate of interest than

those applying for a secured loan.

• Apart from this, the lender also conducts a thorough check on the

financial worth of the individual applying for the loan.

• While the loan amounts can extend anywhere between 500 and 25,

0000 pounds, the rates of interest are higher account of the risks

involved.

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• These sorts of loans are usually reserved for tenants, for those persons

who do not own homes, and for those who are not in any position to

offer any collateral.

• Because there is no collateral to secure these loans, lenders are usually

wary of giving large sums of money.

• In case of default on the part of the borrower, then the lender would

have no option but to resort to the clauses of the credit agreement, and

approach legal aid to help recover the money.

The Benefits behind an Unsecured Personal Loan:-


• There is no requirement of collateral, and the borrower need not

pledge his assets to procure the loan.

• There is no necessity for documents regarding the borrower's tax

returns, or for financial statements. The information on the borrower's

• Financial background need not be verified by supporting documents.

Quick approvals, and an easy application process, are other attractive

benefits of this loan.

Top of Form

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Tips on the Personal Loan Process:-

Paying back your personal loan is so important. If you are confused on the

date of repayment, take the time to confirm it with your lender. Make sure

they give you a specific date! You also need to make sure you know all the

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rules the lender might have. If you take time and read through the rules they

set out, you will have a better chance of completing this process as they see

fit. When in doubt, just take your time and get answers to all the questions

you might have. Your lender will be happy you are trying to get this process

right.

Due to the globalization and privatization the cost of living is increased to

two times of the previous years and due this the life style has changed

people use to live high standard of living and attracted to glamorous life.

Competition is increased because of higher education. Investments and

proper utilization of money and time took place in people mind so they are

taking the loans throw banks. Banks are trying to provide good service to the

customer here this study gives an idea about the customer satisfaction of

Personal loans. Today’s the world the personnel loan is so much required

because most of the people are come from middle class family but they also

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want fulfill there dreams and they want personnel loan because they want

satisfied life.

Without a sound and effective banking system in India it cannot

have a healthy economy. The banking system of India should not

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only be hassle free but it should be able to meet new challenges posed by the

technology and any other external and internal factors. For the past three

decades India's banking system has several outstanding achievements to its

credit. The most striking is its extensive reach. It is no longer confined to

only metropolitans or cosmopolitans in India. In fact, Indian banking system

has reached even to the remote corners of the country. This is one of the

main reasons of India's growth process. Not long ago, an account holder had

to wait for hours at the bank counters for getting a draft or for withdrawing

his own money. Today, he has a choice. Gone are days when the most

efficient bank transferred money from one branch to other in two days. Now

it is simple as instant messaging or dial a pizza. Money has become the

order of the day.

Need for the study:-

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This survey helps the researcher to understand that the technology in

banking as well as how its effects on costumer .The basic need of

undertaking this survey is to submit a project report to the institute as the

part of the academics.

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Helpful tips to get personal loans:-

The personal loan is often borrowed to meet the unforeseen expenses .But if

you have the habit of using personal loans to meet needless expenses you are

at risk .If the expense can wait till you get the required amount on your own

then what is the need of personal loan The article throws light on factors to

be kept in mind while going personal loan way. This article covers

• Questions that you should ask yourself

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• Types of personal loans

• Factors affecting personal loans

• Tips on getting best deal personal loans

Here are some very simple personal loans tips that would help you make an

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Informed decision about the type of loan to get and who and where you

could get it from. The First Question you should be really asking yourself is:

1. Do I really need it?

2. Can I manage without a personal loan?

3. Is it for a frivolous expense- like a holiday- that I could really avoid?

4. Is it possible that I could secure the money by other means- like

Borrowing from a relative, taking up a part time job, sale of an asset?

If you can avoid it, then don't take the monkey on your back!

A Personal Loan would vary according to certain factors:-

The amount that is to be borrowed:-

• The rate of interest

• Whether it is a fixed or a variable rate of interest

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• Loan repayment term( in months or years)

• The down payment or deposit

• The associated fees or costs- broker fees, prepayment fees, origination

fees.

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• The insurance that the lender would require

In other words, you are buying a sum of money for more than it would cost

the lender. It would be a mistake to consider only the rate of interest before

taking a personal loan. There are also arrangements fees and penalties of

prepayment that you would have to consider. Many of the "no-fee" credit

lines carry with them a prepayment penalty. This is the way the

lender/broker makes his profit. Please work out the total expenses of your

small or big personal loan before signing up for the loan agreement.

Personal Loans are of various types, mainly Secured Personal Loans and

Unsecured Personal Loans.

METHODOLOGY:

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From 2 sources data can be collected

⇒ External sources.

⇒ Internal sources.

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This data can be classified into

 Primary data

 Secondary data

Primary data have been collected directly with the help of

Questioners or by survey method.

The secondary data have been collected from the internet

and Maxine’s.

Sample Size: 100 Respondents

Sample Area: Hubli ( )

Sampling Technique: Non- probability sampling –

(Judgmental)

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ANALYSIS OF DATA (TOOLS):-

The data and information obtained from the respondents are put into sp

sform. Then the data is been organized in such a way that they would yield

specific results to the objective of the study. The data is organized in the

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tally.

Marks and various charts, graphs & pie charts that will help to have

overview of the fact and figures. All the work is done under the data, which

is collected, form the respondents. From the process data the research loudly

speaks of its findings and implications that aid in arriving at a conclusion

A personal loan buying guide?

If you are indecisive about getting a personal loan, then you probably need a

guide to help you choose the best loans whether secured or unsecured one.

The article enlightens you about the personal loan buying guide .Take a look

at it. This article covers

• What is a personal loan buying guide?

• What are the important features of a personal loan?

• What are the types of loans?

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• Glossary of a personal loan buying guide In case you require

additional money to launch a business, or for debt consolidation, or to

pay for a vacation or for purchasing a car, opting for the ideal personal

loan- whether fast personal loans, or short term personal.

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Loans- may be the answer. And there are banks, credit unions, building

Societies willing to fund your financial requirements in the form of secured

Loans or unsecured personal loans, and acting as your personal loan guide.

Especially many lenders specialize in personal loans to individuals with bad

Credit, so you may get approval for a loan, despite having declared

bankruptcy, or despite having county court judgments going against you

earlier.

There are varied structures to personal loans. The Important Features of a

Personal Loan are: -

• The security that is required for the loan


• The APR or the rate of interest
• The repayment schedule

Types of Loans:-

One of the key distinctions between the different types of personal loans is

the security that the lender requires. By security we refer to the collateral

that is offered to the bank in order to secure the loan. If you default in your

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repayment schedule, the lender reserves the right to take hold of the

collateral and seize it so that he may repay the loan. Top quality collateral

would reduce the risk to the lender, who would therefore be offering the

personal loan at a much lower rate of interest. We find that individuals who

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have a history of adverse of credit rating or who have declared bankruptcy,

usually find it difficult to obtain a personal loan, without having to first offer

top quality collateral to secure the loan.

Unsecured Loans:-

Unsecured loans are those personal loans that are:-

• Made to individuals which do not have a pre-requirement of

Collateral, as the credit quality of the individual and his financial

circumstances, are sufficient enough for the lender to provide

Funding/credit without collateral.

• We find most lenders limiting the amount of the unsecured personal

loan to less than 15,000 or 25,000 pounds, without special credit

approval.

• Lenders might explicitly restrict the unsecured personal loan so as to

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exclude a particular purpose- for example, starting a business.

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Secured Loans:-

Most secured personal loans utilize:-

• The excess equity in your home, or any other properties as collateral.

But other assets are also accepted. Home equity is the nothing but the

difference between the total value of your house, and the amount of

mortgage that is outstanding on it.

• It is important to note that as you are using your home as your

collateral, you are putting it at risk, if you fail to make your loan

repayments on time, and according to the term payment schedule.

• The amount of personal loan could be limited by the value of the

collateral.

• The loan could be used for almost any purpose, however, and is very

often cheaper than an unsecured loan.

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Short Term Personal Loan:-

The features of such short term personal loans extend to

include: -

• A high rate of interest, on account of the period or repayment being

for a very short term.

• Banks who disburse these short term personal loans, usually insist on

collateral, but financial online companies require only a credit check

before approving the loan.

• Both banks and financial companies have limits to the amount of loan

that is to be offered, and those individuals who require larger sums,

will have to tap other sources


Sometimes you are in need of fast cash, a quick payday loan, to meet an

unexpected money crisis. This is where a fast cash advance loan comes in

handy. A fast personal loan is

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• Very alike a bank loan-only cash advances are for a shorter term, and

easier to qualify for.

• Requires that the applicant must be at least 18 years of age.

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• Traditionally for a two week term

• There are maximum limits to the fast personal loans borrowed.

Data analysis:-

Consumer satisfaction

0.7
0.6
0.5 Series4
0.4 Series3
0.3 Series2
0.2 Series1
0.1
0
1 2 3 4 5

The people have their account

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which bank do you
have account
ICICI

HDFC

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Less document requiring:-

1
2
3
4
5

Service providing:-

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0.5

0.4
Series1
0.3
Series2
0.2 Series3

0.1 Series4

0
1 2 3 4 5 6

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Findings & Limitations:-

• All experienced things can’t put on the paper.

• It is conducted in open market, things tend to change rapidly.

• Because of the busy schedule respondents may not have answered


properly which may not hold true in case they would have been given
lot of time to answer.

• The research was conducted in Hubli city only, so analysis and


recommendations may not be applicable to other cities.

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Sample size was 100

I feel this small size cannot represent the whole consumer’s opinion

Consumer satisfaction:-

• Now there are lots of private loan lenders willing to lend at a decent

rate of return.It is said that borrowing loans from private lenders is often

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beneficial owing to their promptness an easy procedure. But still it is

always prudent to do your own research about these private loan

providers .This article helps you to choose the best loan provider on your

own .This article brings to lightOnce the borrower has built a track record

of repayments on not only one, but on several of these types of loans, the

private investors for personal loans would be impressed at his ability to

repay, and would have usually no hesitation in funding him money for

other requirements that he would be needing later.

• When a private lender begins to trust the borrower's ability to choose

good projects that establish safe margins for him, and once the borrower

demonstrates his ability to make timely payments, the sky is the limit

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with regard to procuring funds for various financial projects.

Further, word would spread among the network of private lenders of

the borrower's ability to choose the right sort of project for funding and

Other private lenders may also contact him and express an interest in his

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Conclusion:-

Personal loan is important for all person life because of there

Situation and condition of life and improve in their economical

Condition. In ICICI and HDFC those are giving good service

Because they are not having more legal procedure which must

helpful to the poor and middle income people.

We make the survey about the personnel loan more

People are using the loans because of their fulfilling there

Requirements and make growth for there family.

In this survey we got that more people are from middle class, they want

to fulfills their requirements

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Questionnaires

1) Are you aware of the interest rate on personal loan?

1) YES

2) NO

2) Are you taken any loan?

1) Yes

2) No

3) What is the rate of interest of your personal loan?...........

4) Which bank would you prefer for personal loan?

1) ICICI

2) IDBI

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5) Which bank has less documents for personal loan?

1) ICICI

2) HDFC

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6) Which bank do you prefer for personal loan?

1) ICICI 2) IDBI

7) For what would you like to take personal loan…………..

8) Are documents of personal loan are customer friendly?


1) Yes
2) No

9) Are you aware of the process of personal loan?


1) Yes
2) No

10) Do you prefer for have single or multiple loan?

1) Single
2) Multiple

11)do you provide any co lateral security for personal loan ?

1) Insurance policies
2) Land
3) Gold

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DEMOGRAPHICS

NAME: -----------------------------------
GENDER: -----------------------------
AGE: ------------------------------------------
QUALIFICATION: ---------------------------------------
PROFESSION: ----------------------------------------------
MONTHY INCOME: ---------------------------------
PHONE NO: -----------------------------------------
EMAIL ID: --------------------------------------------

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Reference

Internet

www.google.com

www.yahoo.com

www.rediffmail.com

News papers

Business line

Deccan Herald

The Hindu

Books

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Magazines

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THANK YOU

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