CONTENTS :

Sl.No. PARTICULARS

1. INTRODUCTION
1.1Business description
1.2Mission
1.3Vision and Values

2. RESEARCH METHODOLGY
2.1 Title of the study
2.2 Duration of the project
2.3 Objectives
2.4 Sources of data collection
2.5 Scope of study
2.6 Limitations of the study

3. FINDINGS

4. CONCLUSION

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1.INTRODUCTION

1.1 COMPANY DESCRIPTION

Axis Bank India, the first bank to begin operations as new private banks in
1994 after the Government of India allowed private banks to be established.
Axis Bank was jointly promoted by the Administrator of the specified
undertaking of the
 Init Trust of India
 Life Insurance of India
 General Insurance Corporation of India
Also with associates viz. National Insurance Company Ltd., the New India
Assurance Company. The Oriental Insurance Corporation and United
Insurance Company Ltd.
1.2 MISSION
 Customer service and product innovation turned to diverse needs
of individual and corporate clientele.
 Continuous technology up gradating while maintaining human
values.
 Progressive globalization and achieving international standards.
 Efficiency and effectiveness built on ethical practices.
 Customer satisfaction through providing quality service
effectively and efficiently.
1.3 VISION AND VALUES
To be the preferred financial solutions provider excelling in customer
delivery through insight, empowered employees and smart use of
technology.
Core values
 Customer centricity
 Ethics
 Transparency
 Teamwork
 Ownership

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Axis bank offers its services majority in four parts:
A. Personal
B. Corporate
C. NRI
D. Priority banking
1.4 FEATURES
 Priority banking lounge
 Dedicated relationship manager
 Home banking
 Exclusive priority banking International debit card
 Investment privileges
 Lifestyle privileges
 Atms

2. RESEARCH METHODOLOGY
2.1 TITLE OF THE STUDY :
“ A comprehensive study on the commercial loans being provided Axis Bank,
Tezpur Branch.”
2.2 DURATION OF THE PROJECT : Short time project.
2.3 OBJECTIVES OF THE STUDY:
Banking and finance can be called as the nerves of any economic system as
they accelerate the process of economic development through canalization of
adequate finance. Commercial loans are granted to a variety of business
entities, usually to assist with short-term funding needs for operational costs
or for the purchase of equipment to facilitate the operating process. Financial
institutions play so important in economic development but at the same time
economic development determines the growth and development of banking
institutions the role of various kind of banking institution.
Main objective of our research is:
 To study various kind of commercial loans offered by Axis Bank,
Tezpur branch.
 Eligibility criteria and the documents required for application of loans.
 Procedure for disbursing commercial loans and time required for its
sanction.

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  Repayment tenure and procedure

2.4 SOURCES OF DATA

 Secondary data: Secondary data provides a starting point for any
research and offer valuable sources of already existing information. It is
easiest to gather and the cost of collection is very low. For our
assignment we have basically collected the data from axis bank
website.
 Primary data: Primary data are usually freshly gathered data for a
specific purpose. For our assignment primary data collection was
basically through distribution of questionnaires.
We have also taken up other methods like personal interviews with the
manager and some of the employees which have also contributed to our
study.

2.5 SCOPE OF STUDY

Axis bank is one of the most famous banks in India. In our study we are
basically focusing on the various types of commercial loans provided by this
bank for the upliftment and economic growth of the residents of this zone
Products:
1. Business Loan
2. Loan against property
3. Loan against security
4. Commercial vehicle loan

A finance degree is not required to know that the current economy is tough.
Unemployment rates are still at an all-time high, and many companies have
gone bankrupt, while others are barely hanging on by a thread. In fact, in
today’s ever-changing and fluxing economic climate, business loans are
about the only option small business owners have for obtaining cash to
further their companies. With an efficient business loan, almost any
enterprise can see immediate growth as long as they use the additional
capital wisely.

2.6 LIMITATIONS OF THE STUDY

This report had to work under several constraints and limitations. Some of
the key limitations are:

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  The period of the study was limited, which may not be enough to
understand the whole working of the Banks.
 For gathering the information, only a few employees were taken into
consideration.
 The sources by which the information was gathered were limited as
only two personnel’s were interviewed and also the data were taken
from the company’s website.
 Also, the report has been prepared by very less experienced
researcher i.e, the students.

3.FINDINGS
3.1Types Of Commercial Loan offered by Axis Bank
3.1.1 Business Loan
3.1.2 Loan against property
3.1.3 Loan against security
3.1.4 Commercial vehicle and construction vehicle loan

3.1.1 Commercial loams

Features for Business Loan :
 No collaterals
 Loans upto Rs 50 lakhs
 Competitive Pricing

Eligibility:
 Business Vintage – Minimum 3yrs
 Turn over- 30 lakhs to 10 Cr
 Age- 21 to 65

Documentation:
 Last 2 years ITR
 PAN Card/ Form 60 for all applicant / Co-applicant / Guarantor
 Audit Report
 KYC Documents

Constitution which are eligible:

 Individual (with business registration)

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  Proprietorship Firm
 Partnership
 Limited Liability Partnership
 Pvt ltd Companies
 Unlisted Public Ltd. Companies
 Trust & Societies (for educational institutes / Hospitals)

Interest Rate on Loan Offered: The interest will be determined based on

assessment of the business profile, financial assessment, past track record,
loan amount and tenure.

3.1.2 Loan against Property

Features and Benefits:

One can avail loan against commercial property, residential property, or a
loan to purchase a commercial property.

Interest rate: Interest rates starts at 11.0%.

Eligibility:
Axis Bank provides Loan Against Property for salaried employees, self-
employed individuals and self-employed professionals. The required
eligibility criteria based on ones occupation and age is to be fulfilled to avail
the loan. Individuals who are eligible for a loan against property:
Salaried individuals:
 Any individual who is in permanent service in the government or a
reputed company.
 The applicant should be above 24 years of age at the time of loan
commencement and upto the age of superannuation.
Self-employed individuals:
 Any individual filing Income Tax returns can apply.
 The applicant should be above 24 years of age at the time of loan
commencement and up to 65 years at the time of maturity.
Self Employed Professionals:
 Professionals (i.e., doctors, engineers, dentists, architects, chartered
accountants, cost accountants, company secretary, and management
consultants only) can apply.
 The applicant should be above 24 years of age at the time of loan
commencement and up to 65 years or less at the time of loan
maturity..

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3.1.3 Loan Against Security

Features and Benefits: one can avail loans against securities for upto 85%of
security value.
interest rates: rate of interest starting at 10.50%

Eligibility:

Individuals who are eligible for a Loan against Shares & Mutual Funds:
 Resident Indians above the age of 18
 NRIs above the age of 18
Entities which are eligible for a Loan against Debt Mutual Funds:
 Resident Indians
 NRIs
 HUFs
 Sole Proprietorship
 Partnership firm
 Private Limited Companies
Individuals who are eligible for a Loan against a Life Insurance Policy:
 Resident Indians

Documents required: The following documents are required along with the
loan against securities application:

 Proof of identity (any one of the following):

o Voter ID card
o Driving license
o PAN card
o Employee ID card
o Government department ID card

 Proof of Income (any one of the following)

o Latest salary slip showing all deductions
o Form 16 with recent salary certificate/Income Tax returns
of last 2 years

 Proof of residence (any one of the following):

o Bank account statement
o Latest electricity bill
o Latest mobile / telephone bill
o Latest LIC policy / insurance premium receipt

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 o Existing house lease agreement

 Bank Statement / Pass Book of last 6 months

 Latest statement of holding for mutual funds

 Pledge form for the creation of pledge

 Optional – Guarantor Form (Mandatory in case of joint holding)

Interest Rate: floating not fixed.

3.1.4Commercial vehicle and construction vehicle loan

I.New Commercial vehicle loan

Interest rates: Starting at 10.25%

Tenure: tenure from 1 year to 5 years
Loan Eligibility: Commercial Vehicle and Commercial Equipment Loan are
available for:
 Self-Employed Individuals
 Proprietorships
 Partnership Firms
 Private Limited Companies
 Limited Companies
 Registered Trusts
 Societies

II.Used Commercial Vehicle Loan

Interest rate: 10.25%

Tenure: From 1 year to 4 years (subject to vehicle not exceeding 8 years at
the end of the proposed tenure)
Loan Eligibility: Used Commercial Vehicle loans are available for:
 Self-Employed Individuals
 Proprietorships
 Partnership Firms
 Private Limited Companies
 Limited Companies
 LLP
 HUF
 Registered Trusts

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  Societies

3.2 Time for processing of loans

Varies from 5secs (Instant Loan) to 2 weeks (Business Loans) and also
depends on the different factors like:
 Document presentation and verification
 Type of loans etc.

3.4. Time for disbursement of Business loans

If the customers provide all the relevant documents such as ITR (Income Trade
returns), Income certificate etc and also if all the other documents are
supporting the personal details of the customer i.e., the customer fulfils the
eligibility criteria and everything is found satisfactory the loan is disbursed in
about two weeks.
3.5. Rate of processing fee on business loan
Depending on the profile of the business and amount of loan it varies from
1.5%-3%.
3.6. Maximum term for a business loan.
Depends on the amount of the loan and consumer’s preference it can vary from
2 to 10 years.
3.7. Which are the vehicles financed.
Any kind of commercial vehicles (Auto, Bus, Taxi etc.) and Construction
equipments (Cranes, Rollers, Earthmovers etc.) (Both new and used)
3.8. Can a new business get a line of credit or loan
No, Axis Bank financing requires that your business be under current
ownership of at least 3 years.

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CONCLUSION:

From the study we can conclude that Axis Bank has provides four different
loans namely; Personal loans , Corporate loans, NRI and Priority Banking.
We have particulary studied about the commercials loans such as business
loans, loans against security, loan against property and commercial vehicle
loan. We have found that the eligibility criterion and the documentation
varies according to the type of the loans and also the bank charges different
interest rates to different rates.

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