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Final Project On EDUCATION LOAN OF ABHYUDAYA BANK
Final Project On EDUCATION LOAN OF ABHYUDAYA BANK
PROJECT ON
OF
ABHUDAYA BANK”
SUBMITTED TO
SEMESTER V
(SEAT NO: )
BY
2016-2017
DECLARATION BY THE RESERCH STUDENT
I hereby declare that this project titled ““EDUCATION LOAN SCHEME OF
ABHUDAYA BANK”. Submitted by me is based on actual work carried out
by me under the guidance and supervision of MR.MAHESH KANDALKAR.
It is in future to state that this work is not submitted anywhere else for
any examination.
SIGNATURE OF STUDENT
(NIYATI WARKAR)
ACKOWLEDGEMENT
My over riding debt due to our Principal MRS. Dr. PADAMAJA ARVIND
MAM and librarian MRS.BHARATI RAO MAM.
Last but not the least I cannot forget my friends and my parents
whose constant encouragement and support made this task a happy job.
SIGNATURE
Email: sia.college@yahoo.com
CERTIFICATE
1. INTRODUCTION OF TOPIC 6
2. REVIEW OF LITERATURE 12
5. CONCLUSION 63
6. BIBLIOGRAPHY 65
CHAPTER 1
INTRODUCTION
TITLE
THE PROJECT
ON
EDUCATION LOAN SCHEME
OF
ABHUDAYA BANK
Importance of loan scheme:
students.
Abhyudaya Bank
Type: Co-Operative
Website : www.abhyudayabank.co.in
HISTORY
of
Abhyudaya Co-Operative Bank
The Beginning:
A dedicated group of social workers and labour movement activists,
imbued with the spirit of service to the cause of mill workers, other
industrial and hitherto neglected economically weaker sections of society
started Abhyudaya Co-op. Credit Society Ltd. in 1964, with a small share
capital of Rs. 5,000. The area of Kalachowki, Sewri, Parel and their
surroundings were predominantly populated by low income industrial labour
and lower middle class people at that time. In a short period of time
Abhyudaya Co-op. Credit Society got converted into an Urban Co-op.
Bank. Finally in June 1965, Abhyudaya Co-op. Bank Ltd. was established
full-fledged co-operative Bank.
A Forward March:
The Bank was conferred with Scheduled Bank Status by Reserve Bank of
India in September 1988. Over a span of 51years, it became one of the
leading Urban Co-op. On 11 January 2007 the Bank was registered as a
multi-state co-operative bank by the Central Registrar, New Delhi.
BRANCHES OF ABHUDAYA BANK
Maharashtra
Gujarat
Karnataka.
The Bank further proposes to extend its area of operation to other States.
Recurring Deposit Scheme – in this scheme the depositor has the facility
to make monthly deposits of smaller amounts which would cumulate into a
large corpus. The account can be opted with a minimum monthly deposit of
Rs.50 and loans up to 90% can also be availed on the deposits.
The fixed deposits earn a rate of interest which depends on the tenure
chosen. The general range of interest rates for the bank’s fixed deposit
schemes is 6.50% to 8.50%. Senior citizens get an additional interest rate
which can be 0.25% or 0.50% with the latter being more common.
Loan Schemes of the Bank
The Abhyudaya Co-Operative Bank Limited also has multiple types of loan
schemes for varied requirements and purposes. These include:
Vehicle Loan (Private) – loan for buying a private vehicle for private
purposes with a maximum of Rs.75 lakhs
Taxi - Auto Loans – specific loans provided to buy a taxi or an auto. The
maximum allowable amount is 90% of the on-road price of the vehicle
The Bank has launched its interactive website for easy accessibility of
various products & services for its customers. Bank has successfully
implemented Core Banking Solution (CBS) technology, through this
technology the bank is offering Any Branch Banking Service to the
customers. Bank customers can transact cash, transfer of fund, clearing,
remittances, etc. from any branch of the bank. Bank is offering Abhyudaya
RuPay Debit Card which can be used for cash withdrawals, mini
statements, balance enquiry and can be used at Point of Sale terminals for
merchant transactions. The bank has offsite ATM’s installed at Abhyudaya
Nagar & Ghatkopar. Bank is providing all types of Foreign Exchange &
Money Transfer Services such as MoneyGram & Xpress Money. Bank is
also offering Tele-banking and Internet Banking services. Customers of our
bank can get monthly statement of account through email. Bank has
installed Cash Deposit Machines at New Panvel, Vashi & Nehru Nagar,
subsequently Bank will install Cash Deposit Machines at other Branches.
Bank has implemented / adopted other RBI Schemes such as RTGS, ECS,
NEFT, Speed Clearing etc. Bank has taken corporate Agency of LIC of
India & The New India Assurance Co. Ltd. And all types of life insurance
policies of LIC & general insurance policies of The New India Assurance
Co. Ltd. Are made available at our branches.
Out of 111 branches, 55 branches are rendering all seven days a week
service to the customers. The customers are free to operate on other
banks ATMs through NFS Network of more than 2.20 Lakh ATMs and
customers of other banks can transact from 114 ATMs machines installed
by our bank. The Bank has offsite ATM’s installed at Abhyudaya Nagar &
Ghatkopar. Bank is also offering Demat, Pan Card Facility, & Online Tax
Payment Services through network of our branches. In two branches viz.
Vashi & New Panvel 'Franking' facility has been made available for the
general public.
ABHYUDAYA BANK IN PURSUIT
OF GROWTH
Shri Puneethkumar R. Shetty : Managing Director
Shri Rajeev D. Gangal : Chief General Manager
Eligibility:
The rate of interest charged on the loan depends on the gender of the
student and the amount of loan availed:
For boys:
Loans up to Rs.10 lakhs charge an interest rate of 13% per annum and
loans above Rs.10 lakhs charge an interest rate of 14% per annum.
For girls:
Documents required:
The following documents should be submitted:
Rate of Interest
The Vocational Education Loan would charge a 13% rate of
interest for boy students and a 12.50% rate of interest for girl
students.
EMI Calculator
Every loan of the bank can be calculated to give the payable instalment
through the bank’s EMI calculator facility which calculates the EMIs
payable for the loan. One would have to provide the loan amount, the
repayment tenure and the rate of interest in the required fields and the
instalment would be calculated. For example:
A loan for higher education in India taken by a male student for Rs.10 lakhs
and repayable within 10 years would attract a rate of 13% and the
corresponding EMI would come to Rs.14, 932. If the loan would have been
availed by a girl child, the equivalent EMI would have come to Rs.14, 638
at a rate of interest of 12.50%If the loan is taken for vocational education to
the tune of Rs.1 lakh and payable in 5 years, the rate of interest for a boy
would have been 13% with an EMI of Rs.2276. For a girl, the EMI would
have reduced to Rs.2250 at an interest rate of 12.50%.
CHAPTER 3
RESEARCH
&
METHODOLOGY
Research meaning
Research is the systematic process of collecting and analyzing information (data)
in order increase our understanding of the phenomenon about which we are
concerned or interested.
The following kind of projects usually don't make for good research:
self-enlightenment
comparing data sets
correlating data sets
problems with yes/no answer
Methodology
The underlying and analysis of how research does or should proceed often
influenced by discipline.
"An epistemology” is a theory of knowledge. It is the theory that decides what can
be observed.
TABLE
Data collection
Questionnaire
External source Internal source
Survey observations
Experiments
Sales records
Internet
Marketing activities
Cost information
Published
Standardised Distribution reports
data
Source Feedback
Electronic Printed
Store audits
Primary source is use to collect initial material during the research process.
Primary data is the data that the researcher collects himself using methods such as
surveys, direct observations, interviews, as well as logs. Primary data is the reliable
way to collect data because the researcher we know where it came from and how it
was collected and analyse since he did it himself. Primary sourness of information
allows the learner to accesses original and unedited information. A primary source
requires the learner to interact with the source and extract information.
1) Surveys
2) Questionnaires
3) Observation
4) Experiments
Survey Research
Survey can divide in to two categories: the Questioner and the interviews
questionnaires are usually are in the written format that the respondent completes.
Interviews are completed by the interviewer base on the respondent says.
Sometimes, it’s hard to tell the difference between the questionnaires and the
interview. For instance, some people think questioner always asked short closed-
Ended questions while interviews always asked open-ended once. But you will see
questionnaires with open –ended questions and their will often be a series of closed
ended questions asked in an interview.
Survey research has change dramatically during last few decades. We have
Automated telephone Service that use random dealing methods there are
computerized kiosks in public places that allow People to ask input. A whole new
variation of group interview as evolved has focus group methodology.
Increasingly, survey research is tightly integrated with the delivery of service.
Your Hotel room has a survey on the desk. Indian railway and catering company
presents a short customer satisfaction survey when you Travel By a Railways. You
get a call for an interview several days after your last call to a computer company
for technical assistance. You are asked to complete a short survey when you visit a
website.
When most people think of questionnaires, they think of the male survey. All of us
have at some time or the other, receive a questionnaire in the mail there are many
advantages in mail surveys. They are relatively inexpensive to administrator. You
can send the exact same instrument to a wide number of people. They allow the
respondents to fill it out at their often very low. And, mail questionnaires are not
the best vehicles asking for the details return responses.
2. Secondary Source can be a valuable source of new ideas that can be explored
later through primary research.
4. Secondary Source also helps to define the population, select the sample
primary information collection and define the parameters of primary research.
1. The most significant benefit of Secondary Source is saving in cost and time.
2. This involve very little time, effort and money compared to primary
research.
will be the only solution. For e.g., If a firm needs information on the entire
population
of some country, it will neither be physically nor financially possible for the
company to obtain it.
5. In some cases Secondary Source can be more accurate than primary data. For
example,
it can get more reliable information from government released sources than
companies themselves.
Limitations of Secondary Sources
1. Problems of fit are likely to occur between the date required for current
research and the available data.
2. The researchers have no knowledge of how the data were collected, not do
they have any control over it. Therefore, they do not know anything about its
accuracy or its bounds of error.
3. It is also very difficult to evaluate the accuracy of the data already collected
4. In many cases the Secondary Source may not be sufficient to meet the data
requirement
for the research at hand. Secondary Source can be outdate, and hence, cannot be
used in current research.
Suitability
The central problem of Secondary Source by which definition was not gathered
for purposes of the present research.
Data definitions, categories, levels of aggregation may differ, if only slightly, from
those required, time series many not be continuous.
Validity of data may vary - government sources likely to be valid, but company
statistics may be unreliable, minutes of meetings may be ‘messaged’; newspaper
articles adhere to journalistic standards’; Integration of Secondary Source with
each other and with primary data also an issue.
Common sources of Secondary Source are social science surveys and data from
government agencies, including the Bureau of the Census, the Bureau of Labor
Statistics and various other agencies. The data collected is most often collected
via survey research methods. Data from experimental studies may also be used.
Process Management
Data
Analysis
Process management provides the frame work for initiating and directing a data analysis
project. A widely accepted approach within the discipline is the Cross Industry Standard
process of Data Mining (CRISP-DM). A complete explanation of the steps in the steps in
the process and supporting documentation can be found at http://www.crisp-dm.org/ .
Aside from a frame work data analysis requires a solid foundation, which is the data
itself. Previous articles have outlined the data life cycle (Higdon, Keith M.,
“Understanding the Data Lifecycle, “John Liner Review , Vol, 24, NO. 1, Standard
Publishing Corp, Boston, MA, Spring 2010) and its five stages.
1. Capture
2. Storage
3. Access
4. Analysis
5. Deployment
When considering a data analysis project, understanding the first three stages of the
lifecycle create the foundation by setting boundaries around what is currently possible.
The purpose of this article is to expand on the processes within stage 4 (analysis) with
additional considerations for making the act of solution deployment (stage 5) have a
more practical impact. By having a better understanding of the methods of analysis,
metrics commonly used in data analysis and statistical techniques, risk management
departments will be in a better position to assess their need for analysis, to indentify the
resources and commitment necessary to design and implement a data analysis project,
and to set appropriate expectations as to the usefulness of the information obtained.
Questionnaire
“In general the word questionnaire refers to a device for securing answer
to the questions by using form which the respondent fills in himself.” .
Tools preparation
The tools chosen for the research work was questionnaire. It consisted of
one questionnaire forms which are asked to customers . A list of 9
questions was asked to customer to know there point of view.
1. Do you know about the education loan offered by this bank ?
Yes 70%
No 30%
80%
70%
60%
50% YES
40% NO
30%
20%
10%
0%
YES NO
Interpretation:
From the above graph it is clear that 70% of respondent know about the
education loan whereas 30% of them are not aware about it.
2. How you came to know about the education loan of this bank ?
Advertisement 64%
70%
60%
50% Advertisement
40%
word of mouth
30%
20%
Referred by your family /
10% friend
0%
Advertisement word of mouth Referred by
your family /
friend
Interpretation:
From the above graph 64% of the respondents came to know about the education
loan through advertisement, 20% came to know through word of mouth & 16%
came to know through friend/family.
3. What made you select this bank?
60%
50%
10%
0%
Service Quality Simple Interest Rate Advertisement
Procedure
Interpretation:
From the above graph it is clear that 56% of respondent selected this bank
because of its service quality,18% selected this bank because of the simple
procedure,14% selected due to low interest rate and 12 % through
advertisement.
4. Do you like the marketing strategy of bank ?
Good 76%
Average 20%
Poor 4%
80%
70%
60%
good
50%
average
40%
bad
30%
20%
10%
0%
good average bad
Interpretation:
From the above graph it is clear than 76% of respondent felt that the
marketing strategy of the bank is good, 20% felt it's average, 4 % said it's
poor.
5. For which course you have taken Education Loan ?
C.A 24%
C.S 16%
NIIT’s 10%
MBA 50%
50%
45%
40%
35% CA
30%
CS
25%
NIIT's
20%
MBA
15%
10%
5%
0%
CA CS NIIT's MBA
Interpretation:
From the above graph it is clear that 24% of respondent have taken
education loan for chartered accountant, 16% for company secretary, and
10% for NIIt's course & 50% for MBA
6. Are you satisfied by the service of bank ?
Yes 70%
No 30%
80%
70%
60%
50%
YES
40% NO
30%
20%
10%
0%
YES NO
Interpretation:
From the above graph 70% are satisfied with bank's service
whereas 30% are not satisfied.
7. Do the interest rate charged by bank on loan reasonable ?
Yes 76%
No 24%
80%
70%
60%
50% YES
40% NO
30%
20%
10%
0%
YES NO
Interpretation:
Yes 68%
No 32%
70%
60%
50%
YES
40%
NO
30%
20%
10%
0%
YES NO
Interpretation:
From the above graph it is clear that 68% of respondent said that
education loan was passed immediately but 32% said that it was not
passed immediately.
9. Do you get any tax benefit ?
Yes 78%
No 22%
80%
70%
60%
50% Yes
40% No
30%
20%
10%
0%
Yes No
Interpretation:
From the above graph we came to know that 78% of respondent said that
they got the tax benefit & 22% said they didn’t get tax benefit yet.
CHAPTER 5
CONCLUSION
The study on education loan of abhudaya bank gave a vast learning
experience to me and has helped to enhance my knowledge.
Education loans are important and helpful to all parts of society. Abhudaya
bank provides ‘Education Loans’ which helps financial counselors,
students, and their parents because loans enable people to make informed
decisions about paying off debts. The wide variety of Education loan
programs by Abhudaya Bank also makes it easier for students to save and
even build credit. Finally, these loans enable students to continue their
Eduation which will create their bright career.
Customer of Abhudaya Bank get education loan at very low interest rate
and the time span of returning the loan amount is also good and
documentation work is also easy so customer find it easy to take loan from
Abhudaya Bank and therefore they preferred to choose Abhudaya Bank to
take education loan .
Therefore, all this easy procedure helped the bank for customer retention
and to get more and more customer.
CHAPTER 6
BIBLIOGRAPHY
Bibliography
https://en.wikipedia.org/wiki/Abhyudaya_Co-
operative_Bank_Ltd
https://www.abhyudayabank.co.in/english/Profile.aspx
http://www.paisabazaar.com/abhyudaya-co-operative-
bank/education-loan/