A SUMMER INTERNSHIP UNDERGONE

AT

“A STUDY ON PROBLEMS OF BUYERS WITH

SPECIAL REFERENCE AVAILING CAR LOAN TOWARDS A.R.A.S P.V.P.V Ltd. MADURAI” A Project report submitted to Institute of Co-Operative Management in partial fulfillment of the requirements for the award of the degree of

Master of Business Administration
Submitted By

S.ananth
(A9410359)

MASTER OF BUSINESS ADMINISTRATION

INSTITUTE OF CO-OPERATIVE MANAGEMENT
(AN INSTITUTION OF NATIONAL COUNCIL FOR COOPERATIVE TRAINING, NEWDELHI)

CHINNA UDAIPPU, PTC POST, MADURAI

S.ANANTH REG NO: A9410359 Department of management studies MBA Programme INSTITUTE OF CO-OPERATIVE MANAGEMENT Madurai-625022

Statement by the Candidate I here by state that this project entitled “A STUDY ON PROBLEMS OF BUYERS WITH SPECIAL REFERENCE AVAILING CAR LOAN TOWARDS A.R.A.S.P.V.P.V. Ltd. MADURAI” Submitted for the award of the degree of master of Business Administration is my original work and that no part of this work has been submitted for the award of any other degree, Diploma, Fellowship or other part of this title.

Place: Madurai Date:

Signature of the Candidate
(S.ANANTH)

LIST OF CONTENTS

CHAPTER I
II

TITLE INTRODUCTION
COMPANY PROFILE

PAGE.NO

8 17 25 28 58 63 65

III

RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION

IV V

FINDINGS, SUGGETIONS AND CONCLUSION BIBILOGRAPHY ANNEXURE

7 4.9 4.LIST OF TABLES Table No.8 4. of Respondents got Required loan amount No.1 4.5 4. of family members of Respondents Income/annum of Respondents House detail of Respondents Model of car of Respondents List of banks where Respondents got loan Purpose of buying car of Respondents No. of Respondents got proper guidance from the bank/company .2 4.10 4.3 4.6 4.11 4.12 Gender of Respondents Age of Respondents Educational qualification of the Respondents Occupation of the Respondents No.4 4. Particulars Page No 31 32 33 34 35 36 37 38 39 41 42 43 4.

17 4.16 4.25 4.19 Opinion about Documentation Opinion about Time of sanctioning of loan Opinion about processing fee Opinion about Down payment Repayment period of Respondents Opinion about Interest rate Willingness of Respondents towards Frequency of paying repayment amount Problem due to delay in repayment amount Better choice of getting loan Performance rate of Public sector bank Performance rate of Private sector bank Performance rate of Finance company Change proposed of car Reason for changing of buying 44 45 46 47 48 49 50 4.22 4.24 4.4.15 4.26 51 52 53 54 55 56 57 LIST OF CHARTS .20 4.23 4.13 4.14 4.21 4.18 4.

6 4.8 4.14 44 45 .5 4.Table No.11 4.13 4. of Respondents got Required loan amount No.10 4. of Respondents got proper guidance from the bank/company Opinion about Documentation Opinion about Time of sanctioning of loan 4. Particulars Page No 31 32 33 34 35 36 37 38 39 41 42 43 4.7 4.9 4.1 4. of family members of Respondents Income/annum of Respondents House detail of Respondents Model of car of Respondents List of banks where Respondents got loan Purpose of buying car of Respondents No.12 Gender of Respondents Age of Respondents Educational qualification of the Respondents Occupation of the Respondents No.4 4.3 4.2 4.

23 4.19 Opinion about processing fee Opinion about Down payment Repayment period of Respondents Opinion about Interest rate Willingness of Respondents towards Frequency of paying repayment amount Problem due to delay in repayment amount Better choice of getting loan Performance rate of Public sector bank Performance rate of Private sector bank Performance rate of Finance company Change proposed of car Reason for changing of buying 46 47 48 49 50 4.15 4.22 4.24 4.18 4.17 4.4.26 51 52 53 54 55 56 57 .25 4.16 4.21 4.20 4.

Dealers and lenders offer a variety of loan terms and payment schedules.CHAPTER-I Introduction INTRODUCTION What to Consider When Deciding to Finance Before you buy your car. Compare the Annual . shop for the best financing.

Other conditions to consider when determining financing: • Sometimes. With these conditions. Do not take possession of the car until the financing paperwork is final. shop around for the best deal and compare the annual percentage rates (APR).Percentage Rate (APR) and total finance charges offered by banks. Be cautious about advertisements offering financing to first-time buyers or people with bad credit. You will be better prepared to negotiate the selling price and make your buying decision. If you agree to financing that carries a high APR. you may be taking a big risk. Do not sign anything until you have made a final decision to buy. look at the total cost and not just the monthly payments. When comparing the offers. savings and loans institutions. dealer’s offer very low financing rates for specific cars or models. credit unions. If the car is repossessed or declared a total loss because of an accident. Keep these rules in mind while shopping: • • • • Because interest rates vary. you may be obligated to pay a considerable amount to repay the loan even after the proceeds from the sale of the car or the Insurance payment have been deducted. Others are application the internet to chase for the best . • Advantages of Getting Car Loan Financing From a Bank : Many bodies generally adopt coffer loans as a acceptable antecedent of costs back it comes to purchasing a car. you may be required to make a large down payment. These offers often require a big down payment and a high APR. Read and understand every document you are asked to sign. the amount you receive from the sale may be far less than the amount you need to pay off the loan. If you decide to sell the car before the loan expires. To qualify for these special interest rates. and other loan companies with the financing offered by the auto dealer. you may find it is more affordable to pay higher financing charges on a car with a lower sales price. but may not be willing to negotiate the price of these cars. Or you may need to purchase a car that requires a smaller down payment. and few bodies adopt brokers as they generally arise costly.

For archetype you apperceive abounding bodies who assignment there and accept formed with the coffer in abounding ways. This will abetment you get your car accommodation faster as a lender who knows and assurance you is added acceptable to action accommodation with a more acceptable terms. Your claimed coffer is additionally advantageous because as a member. and bethink accumulation the loans commonly appoint the everyman absorption bulk appropriately a lower account payment. If you accept an absolute car accommodation with the bank.antecedent for a car loan. this is accessible by acclimation the atomic bulk of money to be repaid anniversary ages appropriately acceptable those attractive for lower rates. the abounding bodies advantageous absorption to them aftereffect in them assuming beneath burden to accomplish money off of anniversary individual. and they assuredly apprehend that their own banks are calmly the best option. by because the two abstracted accommodation repayments. Banks are additionally acceptable as far as pre-approval is concerned. The action of preapproval enables you to acclimatize to a specific accommodation bulk budget. Low absorption bulk is the best ample affection of any auto loan. They generally accord out pre-approval faster alike afore you get the car that you want. and accept you for car accommodation up to specific amount. In general. and additionally accord you added adaptability and abandon to get a car that you deserve and its apparent price. A best costs aeon is additionally addition advantage of a coffer car accommodation as compared to added lenders. it is accessible that you can consolidate the loans. Also. Banks accept the everyman absorption ante because of aerial aggregate of loans they have. your own coffer provides you with a lot of allowances which you cannot get from added . As they aim to accession the business with you. you may be accepting alternate access with them. they appetite to accomplish you blessed and loyal customer. if you accept a acceptable clue almanac with them they’ll be accommodating to do business with you. The advantages of banks as a antecedent of accounts for automobiles accommodate the actuality that the coffer loans are actual bargain in agreement of repayments as they commonly appoint low absorption ante as compared to added sources. They are able to extend the accommodation claim aeon over a best aeon of time. Hence.

Robert Worley has been accepted in the car accommodation industry for abundant years and writes accessories to advice consumers accept the upsides and drawbacks of accepting car loans and bad acclaim car loans. accustomed questions in his accessories and account posts. OBJECTIVES OF THE STUDY  To know the purchasing details of buyers. .2. Robert is amazing at answering common.sources. The pre-approval processes and lower absorption ante alone accomplish the coffer sole antecedent for a car accommodation for anyone. 1.

SCOPE OF THE STUDY  This study will help the company to identify the problems of the buyers.  To find out the buyers expectations in accessing car loan. 1. .3. To identify the problems of buyers in availing car loan.

 This study points out the practical problems faced by the borrowers from the bank/finance company. . 1. REVIEW OF LITERATURE Overview of the different options an individual can take if he has trouble paying his car payment.4.  This study will be used to understand the problems and expectations of the car loan borrower in and around Madurai.

The borrower can take a number of actions if he is in this position. They can also offer to spread the loan out over a longer time frame. which could actually lower his present interest loan. he should contact the finance company—the institution that loaned him the money. such as acute financial hardship. they will also need certain details of his financial situation such as specific expenses and income. they will want to know why. To assist him appropriately. but although this would give him a lower monthly payment it would be at the expense of a higher interest rate. Once he tells the lender that he cannot pay the car loan. Because of any number of reasons.Those who want to buy a car but can't cover the amount in cash can apply for an auto loan. his payment history and his credit score. It is in his best interest to tell the lender about his situation sooner than later so he can possibly avoid repossession and other collection methods. The borrower does . Lender Options for Problems with Paying a Car Loan The lender may offer the borrower different options to prevent his account from defaulting. Upon approval. Note that lenders generally have a limit on how many deferments customers can receive. Point of Contact for Problems with Paying a Car Loan Once the borrower realizes he is unable to pay his car loan. The lender will often do their best to help him because they want to keep him as a customer. The lender may also suggest refinancing his current loan. he may be unable to repay the auto loan. the lender may offer to defer his payment by 30 days. Depending on why he cannot pay. the borrower is responsible for the entire loan amount plus applicable interest.

not have to use the original finance company to refinance his loan. 1. data are collected only from the borrowers residing in and around Madurai city.5. If he prefers. LIMITATIONS  The sample size is restricted to 50 respondents.com to search for a different lender. .  Due to time constraint. due to the time constraint  50 customer sample cannot be generalized to entire universe. he can visit Bankrate.

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it was formerly known as TELCO (TATA Engineering and Locomotive Company).CHAPTER – II COMPANY PROFILE Tata Motors Limited (NSE: TATAMOTORS. is a multinational corporation headquartered in Mumbai. BSE: 500570. NYSE: TTM). India. . Tata Motors has a consolidated revenue of USD 16 billion after the acquisition of British automotive brands Jaguar and Land Rover in 2008. Part of the Tata Group.

as well as in Argentina.[7] Tata Motors has auto manufacturing and assembly plants in Jamshedpur. In 2004. Tata Motors is also the designer and manufacturer of the iconic Tata Nano. In 2004 it acquired Tata Daewoo Commercial Vehicle and in late 2005 it acquired 21% Aragonese Hispano Carrocera giving it controlling rights of the company. Based on consumer demand. and is in the top 3 makers of passenger cars. In India. The company is the world’s fourth largest truck manufacturer. as well as on the New York Stock Exchange. Tata Motors in 2005. he decided that building a small car would be the most practical new venture. which ended in 1969.000 or approximately USD 2300. Despite the success of its commercial vehicles.It is India's largest company in the automobile and commercial vehicle sector with upwards of 70% cumulative Market share in the Domestic Commercial vehicle segment.[2] and the second largest manufacturer of commercial vehicles in the world. The company was established in 1935 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with DaimlerBenz AG of Germany. It was also exported to Europe namely the UK and Italy. Tata ranks as the leader in every commercial vehicle segment. Pantnagar. Tata realized his company had to diversify and he began to look at other products. The OICA ranked it as the 19th largest automaker. South Africa and Thailand. Established in 1945.[1] based on figures for 2007. now known as Tata Daewoo Commercial Vehicle. was ranked among the top 10 corporations in India with an annual revenue exceeding INR 320 billion. Designed to be inexpensive and simple to build and maintain. in South Korea. Recently it had . which also includes the Daimler and Lanchester brands. now a fullyowned subsidiary. which at INR 100. It has formed a Joint Venture with Marcopolo of Brazil and introduced low-floor buses in the Indian Market. the company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG. In March 2008. India's first fully indigenous passenger car. the Indica became an instant hit in the Indian market.[3] Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange. So in 1998 it launched Tata Indica. when the company began manufacturing locomotives. Lucknow. Tata Motors launches its first truck in collaboration with Mercedes-Benz HISTORY: Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. Ahmedabad and Pune in India. it acquired the Jaguar Land Rover (JLR) business from the Ford Motor Company. and a midsized player on the world market with 0. Since then it has never looked back. is the cheapest car in the world.[4][5][6] and the purchase was completed on 2 June 2008. It also acquired Hispano Carrocera SA.81% market share in 2007 according to OICA data. Tata Motors bought Daewoo's truck manufacturing unit. and the world’s second largest bus manufacturer.

Organisation Structure: P. Vasu .[9] 2.V. 1994) and Tata Safari (1998. powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. a light commercial vehicle). named Indica V2.A. the car's excellent fuel economy. Vishnu – G.PARTHASARATHY. for Sales P. A newer version of the car. Tata Motors also successfully exported large quantities of the car to South Africa. India's first sports utility vehicle).S. SivaKumar – G. was a major improvement over the previous version and quickly became a mass-favourite. A badge engineered version of the car was sold in the United Kingdom as the Rover CityRover.R. SundraMurthy – Sukrith Hyndai Establishment: 1927 – Ambastor & Tractor . After the launch of three more vehicles. for Service P.V TATA cars started in 1927 by P. a multi utility vehicle. Tata Estate (1992. Though the car was initially panned by auto-analysts. the first fully indigenous passenger car of India.P. a stationwagon design based on the earlier 'TataMobile' (1989).acquired British Jaguar Land Rover (JLR) business.P.Managing Director. Tata Sumo (LCV. which was a failure and was declared the worst car ever driven on BBC Top Gear show[8].M. which also includes Daimler and Lanchester brand names The first generation Tata Indica's excellent fuel economy. P.M. Tata launched the Indica in 1998. Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra.The success of Indica in many ways marked the rise of Tata Motors. After years of dominating the commercial vehicle market in India.1 COMPANY PROFILE A.E. powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry.

DOCUMENTATION FROM CUSTOMER SIDE:  FORM 20  FORM 60  AUTHORIZATION LETTER  6 PHOTO COPIES  ADDRESS PROOF (Ration card or Voter Id or Passport) . Thirunelveli. Indigo. Nano) Service: There are four teams in service section. Indica. Sumo. Dindugal & Sivakasi Company: Sales: There are five teams in sales (Fiat.1988 – Tata (First dealership in Madurai) 1998 – Fiat (Here only) Branches in Puthur.

938." .2 Product Profile: Tata Motors Limited is India's largest automobile company. HYPOTHESIS LETTER FOR FINANCE CUSTOMER ONLY 2.70.85 cores (USD 14 billion) in 2008-09. with consolidated revenues of Rs. and among the top three in passenger vehicles with winning products in the compact. and the world's second largest bus manufacturer. The company is the world's fourth largest truck manufacturer.000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics. The company's 24. It is the leader in commercial vehicles in each segment. midsize car and utility vehicle segments.

In 2006. LISTS OF CARS IN TATA INDICA: o o INDICA DLE INDICA DLS INDICA VISTA: (1) INDICA AQUA (2) INDICA AURA (3) INDICA TERRA AQUA : .Established in 1945. it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. Tata Motors' presence indeed cuts across the length and breadth of India. services and spare parts network comprises over 3500 touch points. Through subsidiaries and associate companies. with the Xenon having been launched in Thailand in 2008. has also emerged as an international automobile company. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. Tata Motors has operations in the UK. while also exporting these products to several international markets. Lucknow (Uttar Pradesh). The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck. Hispanic’s presence is being expanded in other markets. In 2005. The company is establishing a new plant at Sanand (Gujarat). South Korea. Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. Following a strategic alliance with Fiat in 2005. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand). Pune (Maharashtra). The company's dealership. the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). In 2006. Tata Motors. Tata Motors also distributes and markets Fiat branded cars in India. since the first rolled out in 1954. sales. Pantnagar (Uttarakhand) and Dharwad (Karnataka). Over 4 million Tata vehicles ply on Indian roads.

(1) INDICA VISTA AQUA TDI (2) INDICA VISTA AQUA QUADRAJET AURA: (1) AURA QUADARJET (2) AURA ABS (3) AURA+ TERRA: (1) TERRA TDI (2) TERRA QUADRAJET INDICO CS: (1) INDIGO CSLS (2) INDIGO CSLX INDIGO CS: (1) INDIGO CS GLS (2) INDIGO CS GLX INDIGO MANZA (1) (2) (3) (4) FIAT: (1) LINEA (2) PUNTO LINEA: (1) LINEA ACTIVE (2) LINEA DYNAMIC AQUA AURA AURA ABS AURA+ .

(3) LINEA EMOTION (4) LINEA EMOTION PACK PUNTO: (1) (2) (3) (4) NANO: (1) NANO STD (2) NANO CS (3) NANO LX PUNTO ACTIVE PUNTO DYNAMIC PUNTO EMOTION PUNTO EMOTION PACK .

RESEARCH DESIGN: Research design is purely on the basis of the framework of plan for a study that guides in collection and analysis of data. It is a way to systematically solve the research problem. RESEARCH METHODOLOGY Research methodology is purely and simply the frame work or plan for a study that guides the collection and analysis of the data.III RESEARCH METHODOLOGY 3. The objective of the descriptive research understood the . It may be understood as a science of studying how research is done scientifically. Different types of research designs have emerged on account of the different perspectives from which research study can be viewed.CHAPTER .

 The main characteristic of it is the researcher has no control over the variables. The major purpose of it is description of the state of affairs as it exists at present. TYPES OF DATA There are two types of data.  Primary data  Secondary data Primary data: .expectation of recruiting process in order to design the problem of investigation and to determine the priorities for the future research. TYPE OF RESEARCH: The type of research followed in this research is descriptive research Descriptive research:  Descriptive research includes surveys and fact finding enquiries of different kinds. he or she only report what has happened or what is happening.

one is the primary data and secondary data.  Secondary data from interest sites related to the company. SOURCES OF DATA: After identifying and defining the problem and the specific information required to solve the problem. . The data for the research is collected from both primary data and secondary data. the next step is to look for the source of data which will yield the desired result. There are mainly two types of data that a researcher can collect. The sources are  Primary data has collected through structured questionnaire.Primary data are those which are collected a fresh and for the first time and thus happen to be original in character. Secondary data: Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. and sometimes both are gathered.

CHAPTER – IV DATA ANAYLYSIS & INTERPRETATION DATA ANALYSIS & INTERPRETATION The researcher has used a well-structured questionnaire for this study Period of data collection: The data were collected during the period from May 17. 2010 SAMPLING PROCEDURE . 2010 to May 21.

of respondents TOOLS FOR PRESENTATION Tables and charts are used for interpreting the data. Sample area: The sample area chosen for the study are people from in and around Madurai. Percentage is used in making comparison about two or more series of data. Sample size: 50 respondents were taken for this study.  Pie chart  Column chart  Bar chart. .Type of sampling technique: Convenience sampling technique is used to sort out the samples from the total universe. TOOL FOR ANALYSIS The collected data are analyzed by using percentage analysis Percentage analysis: Percentage refers to a special kind of ratio. It is also used to compare the relative terms of two or more services of data. Percentage is also used to describe relationship. Formula: Number of respondents X 100 Total no.

 Line chart. representations. Cylinder chart. roles. Cultures construct differences in gender. These social constructions attach themselves to behaviors. The following table projects the gender of the study. TABLE 4. Sexuality concerns physical and biological differences that distinguish males from females.1 GENDER : It is important to understand gender as different from sexuality. and sometimes to values and beliefs that are specific to either men or women. . 4. expectations.1: GENDER OF RESPONDENTS.

Gender Male Female Total No.2 AGE: The latter part of life. the majority 38 (76%) respondents are male and the rest 12 (24%) of them are female.1: GENDER OF RESPONDENTS . seniority. out of 50 respondents. ILLUSTRATION 4. TABLE 4. state of being old. an advanced period of life. 4.1 that.2: AGE GROUP OF RESPONDENTS Age 20-40 No. of respondents 38 12 50 Percentage % 76 24 100 It is inferred from the table 4. The following table refers the age group of the respondents of the study. of respondents 18 Percentage % 36 .

14 (28%) of the respondents are age group above 50.40-50 Above 50 Total 18 14 50 36 28 100 It is inferred from the table 4. also. acquired. 18 (36%) of the respondents are age group between 20-40. or discipline of character.2 that is out of 50 respondents.3: EDUCATIONAL QUALIFICATION Educational qualification No. 18 (36%) of the respondents are age group between 40-50.3 EDUCATIONAL QUALIFICATION: The act or process of educating. the result of educating. ILLUSTRATION 4. of respondents Percentage .2: AGE GROUP OF RESPONDENTS 4. the act or process of training by a prescribed or customary course of study or discipline TABLE 4. as determined by the knowledge skill.

ILLUSTRATION 4. an avocation. 4 (8%) of the respondents are illiterate. 36 (72%) of the respondents have educational qualification up to UG. c.4 shows the occupational status of the respondents. The act or process of holding or possessing a place. 10 (20%) of the respondents are having educational qualification of PG level.Illiterate Upto UG PG Total 4 36 10 50 8 72 20 100 It is inferred from the table 4. TABLE 4. b. An activity that serves as one's regular source of livelihood.3: EDUCATIONAL QUALIFICATION 4.4: OCCUPATIONAL STATUS .3 that. An activity engaged in especially as a means of passing time. The table 4.4 OCCUPATIONAL STATUS: a. out of 50 respondents. a vocation.

4: OCCUPATIONAL STATUS 4. Family members Upto 4 members 4-6 members TABLE 4. OF FAMILY MEMBERS No. The table3. ILLUSTRATION 4. 35 (70%) of the respondents are business people .5 shows the number of family members of the respondents. b.5 NO. considered as a group.Occupational status Salary Business Total No. 15 (30%) of the respondents are salary class people.4 that. of respondents Percentage% 17 33 34 66 . A social unit consisting of one or more adults together with the children they care for: a single-parent family. of respondents 15 35 50 Percentage% 30 70 100 It is inferred from the table 4. whether dwelling together or not: the traditional family. A basic social unit consisting of parents and their children.5: NO. OF FAMILY MEMBERS: a.

ILLUSTRATION 4. 33 (66%) of the respondents are having 4-6 family members. of respondents Percentage% Upto 3 lakhs 3-5 lakhs 23 24 46 48 .6 INCOME: The amount of money or its equivalent received during a period of time in exchange for labor or services. OF FAMILY MEMBERS 4.5: NO. TABLE 4. 17 (34%) of the respondents are having Upto 4 family members. or as profit from financial investments.6: INCOME OF THE RESPONDENTS / ANNUM Income/Annum No.5 that. from the sale of goods or property.Above 6 members Total 0 50 0 100 It is inferred from the table 4.

6 that. OF RESPONDENTS HAVING OWN HOUSE Own house Yes No.More than 5 lakhs Total 3 50 6 100 It is inferred from the table 4.7: NO.6: INCOME OF THE RESPONDENTS/ANNUM 4. 23 (46%) of the respondents Income/annum is up to 3lakhs. OF RESPONDENTS HAVING OWN HOUSE: A home is a place of residence or refuge and comfort. 24 (48%) of the respondents income/annum is 35 lakhs. of respondents 47 Percentage% 94 . TABLE 4.7 NO. It is usually a place in which an individual or a family can rest and be able to store personal property. 3 (6%) of the respondents income/annum is more than 5 lakhs. ILLUSTRATION 4.

out of 50 respondents.8 MODEL OF THE CAR: Model means a representation. TABLE 4. 47 (94%) of the respondents are having own house. ILLUSTRATION 4.8: MODEL OF THE CAR No. OF RESPONDENTS HAVING OWN HOUSE 4. of respondents Percentage% 21 15 42 30 Model of the car Indica DLE Nano .7: NO.No Total 3 50 6 100 It is obtained from the table 4.7 that. generally in miniature. to show the construction or appearance of something. 3 (6%) of the respondents are tenant.

21 (42%) of the respondents are having Indigo car. 15 (30%) of the respondents are having nano car.9: NAME OF THE BANKS WHERE RESPONDENTS GOT THEIR LOAN . 14(28%) of the respondents are having Indigo car . TABLE 4. ILLUSTRATION 4.9 NAME OF THE BANKS WHERE RESPONDENTS GOT THEIR LOAN: Car financing is a procedure wherein those who want to buy a Car do so by getting the money for payment from another source and then paying it back a little at a time over a certain period.8 that.Indigo Total 14 50 28 100 It is extracted from the table 4. out of 50 respondents.8: MODEL OF THE CAR 4.

2% of respondents got loan from IOB.Name of the bank SBI Pandyan Grama bank HDFC Axis bank Bank of India Sundaram Finance Allahabad bank Sri ram chits Indian Overseas Bank Tata finance Kotak Mahindra ICICI Bank L&t Century Bank of India Canara Bank Karur Vysya Bank Tamilnadu Mercantile Bank Bank of Baroda Total No. 6% of respondents got loan from SBI. of Percentage respondents % 3 2 3 3 1 4 2 4 6 9 2 1 3 2 1 1 2 1 50 6 4 6 6 2 8 4 8 12 18 4 2 6 4 2 2 4 2 100 It is inferred from the table 4. 2% of respondents got loan from bank of india. 6% of respondents got loan from HDFC. 8% of respondents got loan from sundaram finance.9 that. 2% of respondents got loan from KVB. 6% of respondents got loan from Axis bank. 4% of respondents got loan from . 4% of respondents got loan from Kotak Mahindra. 4% of respondents got loan from TMB.

Pandyan grama bank. 2% of respondents got loan from Bank of Baroda. of respondents Percentage% . ILLUSTRATION 4. 6% of respondents got loan from L&T.9: NAME OF THE BANKS WHERE RESPONDENTS GOT THEIR LOAN 4. Purpose can be synonymous with the goal or the intended result of an action.18% of respondents got loan from Tata finance.10 PURPOSE OF CAR: Purpose is the intent behind an action being done. Purpose of car TABLE 4. an object existing or being made or used.10: PURPOSE OF CAR No.

ILLUSTARTION 4. three wheelers. auto loan.10 that. Finance agencies give loans on cars.10: PURPOSE OF CAR 4. two wheelers.Own use Commercial purpose Total 47 3 50 94 6 100 It is inferred from the table 4. One can avail of the advance EMI schemes. Whether it’s brand new car or motorcycle or used cars. out of 50 respondents 47 (94%) of the respondents bought car for own use.11 NO OF RESPONDENTS GOT THE REQUIRED LOAN AMOUNT: Now days Cars are seen as a status symbol and with various car loans available in the market now it’s within the reach of all the people to get their dream come true. deposit payment schemes or margin money schemes. there is wide range of financing schemes available with different terms and conditions as per the model. 3 (6%) of respondents bought for commercial purpose. .

12: NO OF RESPONDENTS GOT PROPER GUIDANCE.11: NO.TABLE 4. Proper guidance No. of respondents Percentage Yes 50 100 . of respondents Percentage% Yes No Total 50 0 50 100 0 100 It is known from the table 4. Got the required amount No. ILLUSTRATION 4.12 NO OF RESPONDENTS GOT PROPER GUIDANCE: Guidance is very important since this thins can be more eligible in paying the attention to others. all the 50 (100%) of the respondents got the required loan amount.11 that.11: NO OF RESPONDENTS GOT THE REQUIRED LOAN AMOUNT.OF RESPONDENTS GOT THE REQUIRED LOAN AMOUNT 4. TABLE 4.

4.No Total 0 50 0 100 It is inferred from the table 4. proof. of respondents Percentage% . all the 50 (100%) of respondents got proper guidance form the bank/finance company. or other instrument conveying information in the case.13 OPINION ABOUT DOCUMENTATION: Documentation is an original or official paper relied upon as the basis. Documentation TABLE 4. or support of anything else. any material substance on which the thoughts of men are represented by any species of conventional mark or symbol. book. ILLUSTRATION 4. in its most extended sense.13: OPINION ABOUT DOCUMENTATION No.12: NO OF RESPONDENTS GOT PROPER GUIDANCE. including any writing.12 that.

9(18%) of the respondents are having no opinion. 25 (50%) of respondents are satisfied. Everyone gets the exact same amount of time each and every day.13: OPINION ABOUT DOCUMENTATION. of respondents Percentage% Very fast Fast 2 12 4 24 . out of 50 respondents.Highly satisfied Satisfied No opinion Not satisfied Highly not satisfied Total 1 25 9 15 0 50 2 50 18 30 0 100 It is cleared the table 4.14: OPINIION ABOUT TIME OF SANCTIONING OF LOAN Time of sanctioning of loan No. 1 (2%) of the respondents are highly satisfied with documentation. 4. TABLE 4. ILLUSTRATION 4.14 OPINIION ABOUT TIME OF SANCTIONING OF LOAN: Time is a very special resource in that you cannot store it or save it for later.13 that. 30% of respondents are not satisfied with documentation. you can never get it back. If you don't use your time wisely.

of respondents 0 10 Percentage% 0 20 . 7 (4%) of the respondents felt that time of sanctioning loan is very fast.15 OPINION ABOUT PROCESSING FEE: Processing fee is the initial service charge imposed by a lending institution on a borrower for placing a loan on the institution's books. ILLUSTRATION 4. and 10(20%) of respondents felt that time of sanctioning loan is very slow. out of 50 respondents.14 that. 12 (24%) of respondents felt that the time of sanctioning loan is fast. 17(34%) of respondents felt that time is slow.15: OPINION ABOUT PROCESSING FEE Processing fee Very high High No.14: OPINION ABOUT TIME OF SANCTIONING OF LOAN 4. TABLE 4. 9(18%) of the respondents are having no opinion.No opinion Slow Very slow Total 9 17 10 50 18 34 20 100 It is inferred from the table 4.

Moderate Low Very low Total 40 0 0 50 80 0 0 100 It is inferred from the table 4.16 OPINION ABOUT DOWN PAYMENT: A down payment is the amount paid in advance of delivery of the purchased good or service. ILLUSTRATION 4. usually to demonstrate good faith. Down payment Very high TABLE 4. A down payment can be associated with any kind of purchase.15 that. of respondents Percentage% 0 0 . out of 50 respondents. 40(80%) of respondents felt processing fee is moderate.15: OPINION ABOUT PROCESSING FEE 4. 10(20%) of the respondents felt processing fee is high.16: OPINION ABOUT DOWN PAYMENT No.

then the interest rate would be 90/1000 *100% = 9%. if a lender (such as a bank) charges a customer $90 in a year on a loan of $1000. 3(6%) of the respondents felt that down payment is high.17: OPINION ABOUT INTEREST RATE No. of respondents Percentage% .17OPINION ABOUT INTEREST RATE: A rate which is charged or paid for the use of money. For example. Interest rates often change as a result of inflation and Federal Reserve policies. 2(4%) of the respondents felt that down payment is low. ILLUSTRATION 4. An interest rate is often expressed as an annual percentage of the principal.High Moderate Low Very low Total 3 45 2 0 50 6 90 4 0 100 It is obtained from the table 4.16: OPINION ABOUT DOWN PAYMENT 4. 45(90%) of respondents felt that down payment is moderate.16 that. Interest rate TABLE 4.

or semi-annual). quarter. month. Repayment period 2 years 3 years 4 years TABLE 4. out of 50 respondents.17 that.18 REPAYMENT PERIOD: The time period required for repayment of an installment loan in fixed installments at regular intervals (for example. 29(58%) of respondents felt interest rate is moderate.17: OPINION ABOUT INTEREST RATE 4.18: REPAYMENT PERIOD No. ILLUSTRATION 4. of respondents Percentage 13 25 12 26 50 24 . 2(4%) of the respondents felt that interest rate is low.Very high High Moderate Low Very low Total 0 19 29 2 0 50 0 38 58 4 0 100 It is inferred from the table 4. 19(38%) of the respondents felt that interest rate is high.

Total 50 100 It is shown in the table 4. free choice or consent of the will.19 WILLINGNESS OF FREQUENCY OF REPAYMENT: Willingness is the quality or state of being willing. The following table 4. TABLE 4. out of 50 respondents. of respondents Percentage% 47 94 .19 shows the willingness of frequency of repayment of loan. ILLUSTRATION 4. freedom from reluctance. 25(50%) of respondents repayment period is 3 years.18: REPAYMENT PERIOD 4. readiness of the mind to do or forbear.19: WILLINGNESS OF FREQUENCY OF REPAYMENT Willingness of buyers frequency of repayment amount Monthly No. 12(24%) of the respondents repayment period is 4 years. 13(26%) of respondents repayment is 2 years.18 that.

3(6%) of respondents want to pay the repayment once in 2 months. out of 50 respondents. of respondents 0 50 50 Percentage% 0 100 100 .20: PROBLEM DUE TO DELAY IN REPAYMENT Problem due to delay in repayment Yes No Total No. 47(94%) of respondents want to pay the repayment monthly.20 PROBLEM DUE TO DELAY IN REPAYMENT: TABLE4.19: WILLINGNESS OF FREQUENCY OF REPAYMENT 4. ILLUSTRATION 4.Once in 2 months Total 3 50 6 100 It is inferred from the table 4.19 that.

20 that. all the 50(100%) respondents does not face the problem due to delay in repayment . of respondents Percentage% Public sector bank 14 28 Private sector bank 14 28 Finance company 22 44 Total 50 100 . TABLE 4.20: PROBLEM DUE TO DELAY IN REPAYMENT 4.21 OPINION ABOUT BETTER CHOICE OF GETTING LOAN: In present days.21: OPINION ABOUT BETTER CHOICE OF GETTING LOAN Better for getting loan No. ILLUSTRATION 4. Here. the table 4.21 shows the opinion of respondents about better choice of getting loan.It is inferred from the table 4. all the banks and financial institutions are offering the car loan.

The table 4. representation by action.21: OPINION ABOUT BETTER CHOICE OF GETTING LOAN 4.It is inferred from the table 4.22 PERFORMANCE RATE OF PUBLIC SECTOR BANK: The act of performing. 22(44%) of the respondents felt finance company is suitable for getting loan. TABLE 4. 14(28%) of the respondents felt public sector bank is better for getting loan.22: PERFORMANCE RATE OF PUBLIC SECTOR BANK Public sector bank No. of respondents Percentage% Below 40% 40-60% 13 17 26 34 . 14(28%) of respondents felt private sector bank is better for getting loan. as.21 that. achievement. execution. out of 50 respondents.22 abstracts the performance rate of public sector bank. the carrying into execution or action. accomplishment. ILLUSTRATION 4. the performance of an undertaking of a duty.

17(34%) of respondents gave 40-60%.22 that. 12(24%) of the respondents gave 60-80%. 13(26%) of the respondents gave below 40% for performance rate of public sector bank.23 PERFORMANCE RATE OF PRIVATE SECTOR BANK: Performance is that which is performed or accomplished.23 shows the performance rate of private sector bank. The table 4. 8(16%) of respondents gave above 80%. esp. a thing done or carried through. an act.22: PERFORMANCE RATE OF PUBLIC SECTOR BANK 4. ILLUSTRATION 4.. a deed. of respondents Percentage% Below 40% 40-60% 4 17 8 34 .23: PERFORMANCE RATE OF PRIVATE SECTOR BANK Private sector bank No. TABLE 4. a feat.60-80% Above 80% Total 12 8 50 24 16 100 It is obtained from the table 4. an action of an elaborate or public character. an achievement.

60-80% Above 80% Total

22 7 50

44 14 100

It is inferred from the table 4.23 that, out of 50 respondents 4(8%) of the respondents gave below 40% for performance rate of private sector bank, 17(34%) of respondents gave 40-60%, 22(44%) of the respondents gave 60-80%, 7(14%) of respondents gave above 80%.
ILLUSTRATION 4.23: PERFORMANCE RATE OF PRIVATE SECTOR BANK

4.24 PERFORMANCE RATE OF FINACNE COMPANY:

The table 4.24 explains the performance rate of finance company.
TABLE 4.24: PERFORMANCE RATE OF FINACNE COMPANY Finance company No. of respondents Percentage% Upto 40% 40-60% 60-80% Above 80% 9 18 14 9 18 36 28 18

Total

50

100

It is inferred from the table 4.24 that, out of 50 respondents, 9(18%) of the respondents gave below 40% for performance of finance company, 18(36%) of respondents gave 40-60%, 14(28%) of the respondents gave 60-80%, 9(18%) of respondents gave above 80%.

ILLUSTRATION 4.24: PERFORMANCE RATE OF FINACNE COMPANY

4.25 CHANGE PROPOSED OF CAR:

In general, some persons proposed to buy something, but due to some reasons they may changed their proposal. Here the table 3.25 refers the number of buyers changed the proposal of car.
TABLE 4.25: NO. OF BUYERS WHO CHANGE PROPOSED OF CAR Change proposed of car No. of respondents Percentage% Yes No 6 44 12 88

Total

50

100

It is inferred from the table 4.25 that, out of 50 respondents 6(12%) of the respondents change proposed of car, 44(88%) of respondents did not change proposed of car.

ILLUSTRATION 4.25: NO. OF BUYERS WHO CHANGE PROPOSED OF CAR

4.26 REASON FOR CHANGING THE BUYING:

When a buyer changed their proposal of buying means, there are some reasons or factors influencing him/her. The table 4.26 shows the reason for changing the buying.
TABLE 4.26: REASON FOR CHANGING THE BUYING Reason for changing No. of respondents Percentage% Non availability Appearance of present car High price 0 4 2 0 80 20

Non availability of required loan amount Total 0 6 0 100 It is inferred from the table that.26: REASON FOR CHANGING THE BUYING . 2(20%) of respondents changed their buying due to price of desired car . 4(80%) of the respondents changed their buying due to appearance of present car. out of 50 respondents. ILLUSTRATION 4.

V FINDINGS. 36% of respondents belongs to 40-50 age group. . 2. 76% of respondents are male.CHAPTER.1 FINDINGS 1. SUGGESTIONS & CONCLUSION 5. 72% of respondents are up to UG level. 3.

4.100% of respondents got proper guidance. 12 . 10.50% of respondents are satisfied with documentation. 5. 7. 100% of respondents got required loan amount. 13 . 94% of respondents are having own house. 20% of respondents felt that time of sanctioning is very slow. 42% of respondents bought Indigo DLE model.90% of respondents felt down payment is moderate. 94% of respondents buy car for own use. 70% of respondents are business group. 15. 16 . members. 9. 11 .34% of respondents felt that time of sanctioning is slow. 6. 17. 14. 66% of respondents are having 4-6 family 48% of respondents are having income/annum 3- 5 lakhs. 58% of respondents felt interest rate is moderate. 8. . 80% of respondents felt processing fee is moderate.

100% of respondents does not have problem due to delay in repayment. • To sanction the loan amount in quick processing time. 23. 50% of respondents willing to repay monthly. 25. 24. getting 5. 50% of respondents repayment period is 3 years. 80% of respondents changed buying of car due to appearance of present car.2 SUGGESTIONS: • To reduce the over documentation. 22. 26. 36% of respondents felt finance company is better for loan. 34% of respondent felt public sector bank is better for getting loan. 88% of respondents changed proposed buying of car. 20. 20% of respondents changed buying of car due to high price. 21.18. . 44% of respondents felt private sector bank is better for getting loan. 19.

• The company may provide direct installment scheme to the buyers.3. 5. In this study more number of respondents are just satisfied with . • Performance rate of the finance company and public sector bank should be improved. CONCLUSION: This study precisely indicates the problems of buyers in availing car loan.• Interest rate may be flexible according to the repayment period.

Respondents are expected to reduce the interest rate. Only few of respondents changed their buying due to appearance of the present car and price of the proposed car. Finance company place third for getting loan. Most of the respondents felt that time of sanctioning the loan amount is slow. Respondents are got the required loan amount from the bank/finance company. .documentation. In the overall study Public sector bank places first choice for getting loan. All banks/finance company gave the proper guidance to the respondents. Respondents are satisfied with the processing fee as well as down payment. Private sector bank place second for providing loan.

BIBLIOGRAPHY .

MARKETING MANAGEMENT by DEBRAJ DATTA & MAHUA DATTA.COM.R.COM.COM.COM WWW.CAPITALCARLOAN. WWW. WWW. . WWW. 6.EDMUD. 3. 7. 2. 5.GOOGLE.PERSONALBUDGETING. KOTHARI.GURUJI. RESEARCH METHODOLY IN BUSINESS by C. 4.COM WWW.SUITE201.BIBLIOGRAPHY AND WEBLIOGRAPHY: 1.

Educational qualification : i) Illiterate [ ] ii) Upto UG [ ] Sex : M / F iii) PG [ ] .S P.V Ltd.A. Name : 2.R. Address : 4.” QUESTIONNAIRE I. MADURAI. Age : 3. PERSONAL DATA 1.V.ANNEXURE “A STUDY ON PROBLEMS OF BUYERS WITH SPECIAL REFERENCE AVAILING CAR LOAN TOWARDS A.P.

No. 8. specify its nature :……………………. PROBLEMS IN AVAILING CAR LOAN 1. Occupation : i) Salary class [ ] ii) Business [ ] If Business. Do you have own house? (i) Yes [ ] (ii) No [ ] II. ………………… 2. Income per Annum : i) Upto 3lakhs [ ] iii) More than 6 members [ ] ii) 3-5lakhs [ ] iii) Above 5 lakhs [ ] . PURCHASING DETAILS 1. specify the reason: …………………………………………………………… 2. specify the name of the bank/ Finance company) …………………………………………… III. Mode of finance : i) Own fund [] ii) Loan [ ] ( If Loan. Did you get the proper guidance from the bank/finance company ? i) Yes [ ] ii) No []. Purpose of car. Documentation : i) Highly satisfied [ ] ii) Satisfied [ ] iii) No opinion [ ] . of family members : i) Upto 4 members [ ] ii) 4-6 members [ ] 7.. What brand of car did you buy? ……………………………………… its Price Rs. OPINION OF CUSTOMER: 1. i) Own use [ ] ii) Commercial purpose [ ] 3. If No. Did you get required amount? i) Yes [ ] ii) No [ ]. 6.5.

Public sector bank: i) Below 40% [ ] ii) 40-60% [ ] iii) 60-80% [ ] ii.. Processing Fee: i) Very high [ ] ii) High [ ] iii) Moderate [ ] iv) Low [ ] v) Very low [ ] 4. 9. (a) How much time did the Bank/Finance Company taken for sanctioning the loan? …………………. (b) Give the rate of performance in percentage: i. specify it …………………………………………………………………………. i) Non-availability [ ] ii) Appearance of present car [ ] .. (b) Time of sanctioning: i) Very fast [ ] ii) Fast [ ] iii) No opinion [ ] iv) Slow [ ] v) Very slow [ ] 3.years. 7. Private sector bank: i) Below 40% [ ] ii) 40-60% [ ] iii) 60-80% [ ] iii.days. Did you face any problem due to delaying of repayment amount? (i) Yes [ ] (ii) No [ ] If Yes. iii) Moderate [ ] iv) Low [ ] v) Very low [ ] ii) High [ ] iii) Moderate [ ] iv) Low [ ] v) Very low [ ] Repayment period: ……………….iv) Not satisfied [ ] v) Highly not satisfied [ ] 2. Interest rate: i) Very high [ ] 6.Which one is better for getting loan? i) Public sector bank [ ] ii) Private sector bank [ ] iii) Finance company [ ] Specify the reason ………………………………………………………………….. (a). Down payment: i) Very high [ ] ii) High [ ] 5. Finance company: i) Below 40% [ ] ii) 40-60% [ ] iii) 60-80% [ ] v) Above 80% [ ] iv) Above 80%[ ] iv) Above 80% [ ] 10. Will you change the proposed purchase of car? (i) Yes [ ] (ii) No [ ] If yes. specify the reason………………………………………………………………. How frequently you pay the repayment amount? i) Monthly [ ] ii) Once in 2 months [ ] iii) Quarterly [ ] iv) Others [ ] 8..

.............iii) High price [ ] iv) Non-availability of required loan amount [ ] IV... …………………………………………………………………………………………………… ………………………………………………………………………………………………….......................ANANTH) ..... MAKE YOUR SUGGESTIONS for easy access of loan …………………………………………………....... by ( s... THANKS FOR YOUR CO-OPERATION.............................

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