Customer Satisfaction Study of Citifinancial Personal Loans

CUSTOMER SATISFACTION AND CREDIT PROCEDURE STUDY
OF CITIFINANCIAL PERSONAL LOANS
TABLE OF CONTENTS
S.NO. CHAPTER PAGE

NUMBER
1 EXECUTIVE SUMMARY 7
2 AIM OF THE STUDY 8
3 Dr. GALLUP & GALLUP ORGANIZATION 9
4 DESIGN OF THE STUDY 29
5 PERSONAL LOANS 33
6 PERSONAL LOANS MARKET IN INDIA 39
7 CITIGROUP 41
8 CITIFINANCIAL 46
9 ANALYSIS & INTERPRETATION 48
10 FINDINGS 68
11 RECOMMEDATION 71
12 CONCLUSION 73
LIST OF TABLES & GRAPHS

Babasabpatilfreepptmba.com Page 1
S.NO. TOPIC PAGE

NUMBER
1 Customer Age Profile
1 Customer satisfaction regarding overall service of 51

Citifinancial.
2 Customer opinion regarding Citifinancial‟s ability to 53

keep up its promises.
3 Customer opinion regarding Citifinanacial‟s ability to 55

meet its customers‟ needs.
4 Customer opinion regarding Citifinancial as a 57

trustworthy bank.
5 Customer satisfaction regarding time taken for loan 59

approval.
6 Customer satisfaction regarding EMI schemes offered 61

by Citifinancial.
7 Customer satisfaction regarding interest rate charged 63

by Citifinancial.
8 Customer satisfaction regarding processing fees 65

charged by Citifinancial.
EXECUTIVE SUMMARY
Personal Loan market in India is growing by leaps and bounds. The major players include
ICICI which tops the list along with HDFC, Citibank, ABN AMRO, HSBC, all the
nationalized Banks, co-operative banks, other financial institutions and unorganized
money lenders.
The project is a customer satisfaction study which involved city of Dharwad. The
research involved studying existing customers. It covered each and every aspect of
personal loan which can affect customer satisfaction. The main objective of the study was
to find out areas where customers are not satisfied with the service offered by
Citifinancial regarding personal loan. The study alo aimed at studying the credit
procedure at citifinancial.
Citifianancial mainly caters to the B and C segment of the market. The Loan amount lent
is between 10,000 to 50,000. The rate of interest varies from 16% to 36% depending
upon the credit procedure.
The study shows that most of the customers are happy with the service given by the
citifinancial. But the reason of dissatisfaction mainly lies with the interest rates and
processing charges.
Citifinancial can introduce schemes that can suit for premium segment too. Also ETC
arrangements are better since some of the cases Cheques required are more in some
cases.
OBJECTIVES OF THE STUDY
1. To study the customer profile of citifinancial

The major objective of the study is to understand the profile of customer segment of
citifinancial.
2. To Study the customer perception towards citifianacial consumer loans

The aim of the study is to understand the customers perception about citifinancial
personal loans which includes queries regarding interest rates, service, and other factors.
3. To study the personal loan market in India.

With the entry of private players personal loan industry in India has expanded. Also
added is the increase in the number of middle class mass in India.
4. To understand the working of citifinancial.

Citifinancial is one one the flagship members of citigroup. One of the major objectives of
the study is to get an insight into the world‟s largest financial company.
NEED FOR STUDY
Financial Sector in India is expanding many folds. Every other day there is a new
company coming up with new services. The need for study arouse with the entry of
numerous institutions who came up with personal loan products. But personal loan being
a unsecured loan risk is no doubt more in the business.
People require immediate cash for various reasons. Increase in the avenues of spending
has triggered off a good market for personal loans. There are various documents and
procedures of different banks and Institutions who lend personal loans.
Citifinancial being one of the pioneer lending institutions is excelling in personal loan
sector. It an institutions which is catering to the most risky profiles but at the same time is
expanding rapidly in the market with profits too.
This study was initiated to study organization, product policy, customer profile and the
personal loan market in India.
The major intension is to know the customers perception towards personal loans of
citifianancial.
SCOPE OF THE STUDY

The study is limited to the city of Dharwad only. It is also restricted to the study of
citifianancial only. Also the location being Upcountry, it does not reflects the perception
of customers of metro cities where personal loan market is at hype.
The study includes organization study and credit policy but excludes any financial data.
The study covered each & every aspect of the customers. The study focused on customer
reaction with respect to the overall service & each & every aspect of the product such as
interest rate, EMI etc.
DESIGN OF THE
STUDY
RESEARCH METHODOLOGY
1. Data Collection:
Mainly two types of data were used for data collection viz:
Secondary data: The main source was the customer data base which was obtained at
Citifinancial office at Dharwad. It was used to find out all general information about the
existing customers such as their names, their residential & official address & their phone
numbers. Also the product policy of Citifianancial which provided major data about the
product and credit policy. Also articles from the news papers, magazines and websites
were used.
Primary data: The main source was the questionnaire which was designed to collect all
the primary data such customer reaction towards all the aspects of the product.
2. Steps involved in sampling Process:

a. Defining population:
Respondents are existing customers of citifianancial Dharwad
b. Specifying sampling frame:
Sampling frame is the database provided by citifinancial Dharwad.
c. Specifying the sampling Unit:
Customers who have availed loan from citifianancial.
d. Specifying the sampling method:
Non-Probability Convinience sampling method was used for data collection.
e. Determining sampling size:
Total target respondents were 50
d. Specifying the sampling plan:
Selected different category of the customers.
3. Type Of Questions:
To collect the primary data, a questionnaire was devised which consisted of:
Dichotomous questions: Having three options
Balanced scaling questions: Having three points on which the customers were required
to rate.
Apart from this, Demographic based questions were there to collect data about the
customers regarding their names, age, income, occupation, household income, amount of
loan & the number of installments.
4. Analysis:
Single Tabulation was used for arranging the collected data & for analyzing &
interpretation
LIMITATIONS
Though the study has covered each & every aspect of customer satisfaction but it has
neglected customer-employee interaction, which contributes highly to the customer
satisfaction. Due to this, though the study may help in finding out the areas where
Citifinancial needs to improve with respect to product features but it will not help
Citifinancial in deciding whether to train its employees or not for dealing in a better way
with the customers
CONCEPTUAL
FRAMEWORK
PERSONAL LOANS
DEFIATIONS:
Loan: A Loan is an amount of money given to the other person with or without a
collateral or a guarantor for a certain period of time anticipating the repayment of lent
money with certain returns.
Personal Loan: “An amount of money borrowed from a bank or other lender by an
individual”.
It is a loan based on a consumer's income, debt and credit history. It is a loan obtained by
an individual for personal (as opposed to business or investment) purposes. A personal
loan is generally an unsecured loan.
Personal Loan establishes consumer credit that is granted for personal use; usually
unsecured and based on the borrower's integrity and ability to pay.
A personal loan is a lump sum which you borrow from a bank, building society or
another lender.
The simplest explanation of the use of the word "personal" is to describe these types of
loans is that, the money that is borrowed is to be used for personal reasons. If the aim of
the loan was to finance the purchase of a home, that is a mortgage. If the purpose of the
loan is to help a business to expand, that is a business loan. If you are taking out a loan to
fund something that will be for your own personal use, or to help you out with personal
issues, then that is a personal loan. The best way to expand on this would be to look at
what a personal loan could be used for.
A personal loan is an amount of money offered, normally by lending institutions such as

banks and building societies, on the condition that it will be paid back at some later date.
Personal loans are available in a whole host of formats and can range from 10000
upwards. The term of the loan is often dependent on whether the lender requires security
to be offered by the borrower and the size of the regular repayments you wish to make.
Under most personal loan arrangements you receive a lump sum, equal to the amount of
the agreed loan and in return you agree to make regular repayments. These repayments
are normally monthly and cover both the interest due and the capital outstanding loan
amount. If you have established the loan as a 'repayment' type loan then the repayments
will include an amount to pay off some of the capital and reduce your outstanding debt.
Payments are made throughout the term of the loan to ensure that the total debt is repaid
to the lending institution.
AMOUNT OF PERSONAL LOAN
Amount wise personal loans may range from 10,000 to 10, 00,000.
RATE OF INTEREST
Currently, interest rates across all banks are in range of 10% to 22%. The interest rate
usually depends on three factors:
Amount of loan: Higher the amount lower will be the interest rate & vice verse.
Type of loan: While secured loan carries lower rate where as unsecured loan carries
higher rate.
Customer Segment: Rate of interest is higher in case of high risk segment and vice versa
PERSONAL LOANS
USES OF PERSONAL LOAN
The range of uses for the money is very wide indeed. Common uses include the purchase
of a new car, a holiday or the repayment (consolidation) of existing debt.
Frequently the lending institution will ask for details of the reason you require the loan.
Although the purpose of the loan may have little impact on their decision to grant the
money, it can have some influence on the maximum term of the loan.
It is more likely that larger sized loans, for purchases such as cars, home improvements
etc. will result in a longer repayment term. It is not uncommon for the purchase of a car
to established with a repayment term of 3 years whilst the term for home improvement
loans can be for much longer terms (sometimes as long as ten years).
SUITABILITY OF PERSOAL LOAN
If you are looking to borrow money over a period of less than ten years, whether you
need the money for a purchase or perhaps to repay existing debt, then a personal loan
may be suitable for the needs
Personal loans are just another form of credit. If you are considering a personal loan to
run alongside other forms of personal credit such as overdrafts and credit cards, you must
give careful consideration to whether you will be able to afford the total of your regular
payments. When considering the situation it is wise to take into account your ability to
pay were you unable to work due to any reasons.
PERSONAL LOANS
ACCESSABILITY TO PERSOAL LOAN
There are hundreds of potential lenders willing to offer you the opportunity to borrow
from them. However the offer of finance does depend upon your ability to repay the debt
and your previous credit history. Those applicants that have had credit difficulties in the
past can find it more difficult to obtain access to a personal loan compared to those
applicants that have a better credit history.
It is normally true that the better the credit risk you are, the easier you will find it to
obtain a personal loan. It is also likely that people who have the best credit histories will
be offered the best deals. This normally means a lower interest rate is charged or the
repayment terms are longer.
DIFFERENCE BETWEEN PERSONAL LOAN AND BANK LOAN

There isn't much of a difference between a bank loan and a personal loan. They are in
essence the same thing. In a bank loan one can are borrow an amount of money against
property or an asset or in consideration of his/her creditworthiness to repay at agreed
intervals with interest added to the sum.
The difference is that a bank specifically provides a bank loan. A few years ago, the
bank was one of the only places a customer could get a loan, which is why people used to
say they needed a good relationship with their bank manager. Obviously, this isn't the
case now, as building societies and many other financial companies also offer loans.
MERITS & DEMERITS OF PERSONAL LOAN
MERITS: Positive side of a personal loan is that, it is quick and easy to avail. Moreover
usually a personal loanis lent without any security and guaranty
PERSONAL LOANS
TYPES OF PERSOAL LOAN
Unsecured personal loan: Is a debt that you can acquire where you do not have to
use any specific collateral to back the loan. Usually, the people who would be eligible for
this type of loan would be people
An unsecured loan will mean less risk to the person taking out the loan than a secured
loan. This is due to the fact that a person will not have to use their home as insurance for
the loan. The negative aspect of this is that due to the lack of insurance, the interest
payments set will be higher, as the loan provider will need to cover the added risk of not
being able to get their money back. A positive aspect of the unsecured loan could be that
your application is processed a lot quicker, so you can get hold of money more rapidly.
This speed is due to the fact that your home will not need to be valued to make sure your
security is available. Another upshot of this is that you can submit an application, get a
reply and answer very quickly to your application, and just because you have submitted
does not mean you are under an obligation to take up the loan.
Secured personal loan: Is a loan that is specifically assigned for home owners. This
is where the home is used as collateral, which is a larger risk for a customer than an
unsecured loan, because if you fall into difficulties or are unable to repay the loan for any
particular reason your home is at risk. One of the most vital points to understand about a
secured loan is that it is not best used as a solution to debt problems, because it is even
more important that you have budgeted properly to cover the loan payments. Many
people with debt problems have them precisely because they are not good at budgeting to
cover loan payments.
Secured personal loans could be taken out for various reasons. You could want to make
home improvements, for which you can borrow money secured on your home, as you are
hopefully increasing its value. Perhaps it could be for a debt consolidation loan, where
you take out a loan for an amount large enough to pay off several other debts for a longer
period
PERSONAL
LOANS
MARKET
IN
INDIA
PERSONAL LOANS MARKET IN INDIA
In recent times, personal loans market in India is witnessing a rapid growth. Over the
year 2002-03 personal loans disbursement has grown by 39%. Consumer credit in India
is currently growing at around 45%-50% annually, and considering that the Indian
economy is expected to grow at around 8% this year, demand for consumer loans
including personal loans is expected to remain strong. The growth is high in unsecured
personal loans as compared to secured personal loans.
Following are some of the factors responsible for growth in personal loans market in
India:
Falling interest rates: Interest rates have gradually fell form above 25% to below 20%
across all banks over the years.
Change in consumer behavior: Once customers hesitated to take loans from banks but
now they are looking at it from a positive angle.
Shift in focus of banks from corporate lending towards retail lending: Banks are now
concentrating more on retail loans including personal loans, home loans & auto loans due
to the growth in retail loans.
Positive demographics: There is rapid growth in urban population, who are most likely
to take retail loans. Apart from this middle class segment is growing, which account for
about 70-80% of the total loan seekers.
MAJOR PLAYERS: At preset ICICI Bank is the market leader having more than
30% market share in personal loans market, followed by HDFC Bank. Apart from this
there are several other banks including Government banks, Private banks & MNC banks
who are in the lead. In case of MNC banks, Citifinancial tops the list with respect to total
loan disbursements & in terms of market share. It is followed by HSBC, Standard
Chartered bank, ABN AMRO & others.
CITIGROUP
CITIGROUP
LEGACY
Citigroup Inc., today's pre-eminent financial services company, with some 200 million
customer accounts in more than 100 countries, dates back to the history of Citibank,
which began in 1812; Travelers Life & Annuity, since 1864; Smith Barney, founded in
1873; Banamex, formed in 1884 as a result of the merger of Banco Nacional Mexicano
and Banco Mercantil Mexicano; and Salomon Brothers, which dates back to 1910 and
later merged with Smith Barney, a subsidiary of Travelers Group at the time.
Other major brand names under Citigroup's trademark red umbrella include Citi Cards,
CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners Club, Citigroup Asset
Management, The Citigroup Private Bank and CitiCapital.
FAMILY TREE
Citigroup is largely organized into four groups: Citigroup Global Consumer Group, the
Global Corporate and Investment Banking Group, Citigroup Global Investment
Management, and Global Wealth Management.
CITIGROUP
PRODUCT LINES
Global Consumer Group
Cards
o World‟s largest provider of credit cards

o Third Quarter '04 Net Income of $1.267 billion
Consumer Finance
o World‟s consumer finance leader

o Third Quarter '04 Net Income of $643 million
Retail Banking
o Citibank: highest-rated, leading global brand

Global Corporate and Investment Banking Group
Capital Markets & Banking
o #1 underwriter of Combined Debt and Equity and Equity-related

transactions
Global Transaction Services
o Leading provider of transaction products; $7.3 trillion in assets

under custody
CITIGROUP
PRODUCT LINES
Global Investment Management
Life Insurance & Annuities
o One of the fastest growing life insurers in the U.S with expanding
international presence
Asset Management
o A leader with $500.7 billion in assets under management

Global Wealth Management
Private Client Services
o A leader in managed accounts with $1.087 trillion in total client

assets
Private Bank
o Offers widest range of services to more than 25,000 of the world‟s

most successful and influential families
CITIGROUP
IN
INDIA
Citigroup opened its first office in India in 1902 in Kolkatta. Since then they have
become one of India's most diverse and recognized financial service providers operating
in 450 offices and branches across India. Citigroup India has 5,000 employees
nationwide. Their operations encompass a premier global corporate and investment bank
and a well-established consumer business under the Citibank and CitiFinancial brands.
The global corporate and investment banking group provides a comprehensive range of
financial services including treasury management, transaction services, securities
custodianship, foreign exchange, fixed income and equities sales and trading, and
corporate finance to corporate clients, governments and financial institutions.
Citibank India is the country's leading retail bank with a history of innovation and
customer service. Today we are the largest issuer of credit cards and offer mortgages,
personal loans, insurance, and investment services for on-shore customers. Citibank India
also provides banking services to the international Indian community in 23 cities around
the World.
CITIFINANCIAL
CITFINANCIAL
Since 1912, CitiFinancial has been helping people realize their financial goals and
dreams. Headed by CEO and President Harry D. Goff, CitiFinancial is a member of
Citigroup, the world's largest financial services provider.
They have more than 2000 offices in the United States and Canada. Each branch manager
runs their CitiFinancial office as if it is their own business, so loan decisions are made
locally.
They provide home improvement loans, bill consolidation loans, money for tuition,
vacation getaways and unexpected expenses. They have a solution that helps you afford
what you want or need most in life. They‟ll get you the money you need when you need
it!
Products & Services:
 Personal loans
 Home loans
 Auto loans
Citifinancial personal loan: It can be used to pay off your credit card bills, meet
your unexpected expenses or it can be used for education or travel purpose. At this time,
CitiFinancial Personal Loans are not available for business purposes. Their specialty is
extending credit for personal, family and household purposes.
Qualification criteria: CitiFinancial grants personal loans to people over age 18 who
have established credit and can secure the loan with personal property. Some established
credit, like a gasoline or store credit card, is necessary, and employment or other steady
income is required. We also make unsecured loans to homeowners. People just beginning
to establish credit may be asked to have another responsible adult co-sign for the loan.
The Indian middle class, which constitutes a large market, has doubled over the last
decade and is set to multiply in the coming years. The Citifinancial target market falls in
this category and the company is already catering to finance requirements for consumer
durables, two wheelers, and automobiles to this segment. We have a customer base of
over 200000 customers, of which 25% customers have more than a year‟s credit history
with the Citifinancial. We are now targeting our consumer durable and two wheeler
customers for providing them with Personal loans with an objective to retain performing
customers build loyalty and create lasting relationships.
The middle class salaried individual segment and the small business segment have also
shown an appetite for small ticket loans to meet personal needs, debt consolidation and
short-term capital needs for business. Citifinancial has sought to address these financing
needs by launching a personal loan program for individuals who have no prior financing
relationship with us. This is referred to as the new borrower program.
The existing players in the market are ICICI, Citibank, ABN Amro Bank, Standard
Chartered Bank, American Express and GE Countrywide. In the last one year hectic
activity to promote the product has been visible in the market. Our focus on strengthening
bonds with existing customers, geographical reach and relationship-based approach will
provide as a unique competitive advantage
ORGANISATION STRUCTURE:
Citifinancial has a flat organization structure. In fact there are only four steps between an
officer and MD.
The grade structure applicable to all employees on the rolls of Citifinancial Consumer
Finance India Limited is:
Grade Designation
5 Vice President
4 Assistant Vice President
3 Manager / Senior Manager
2 Assistant Manager / Management Associate
1 Officer / Senior Officer / Secretary
PROCESS
The minimum qualification required for any employee of Citifinancial India is

graduation.
All hiring is executed by the Regional HR teams.
A hiring request could arise from vacancies created on account of:
 Replacement of an employee who has left the organization or movement of an

employee to a different position / location
 Creation of a new position
 Business expansion
HR receives a hiring request (verbal/email) from the line manager. A hiring request
should be in line with the manpower plan which is duly approved by the country business
head and head of financial control. Wherever vacancies are not provided for in the
manpower plan, the hiring must be approved by the country business head.
The hiring request may be accompanied by specifications related to the level and profile
of the incumbent
HR, in conjunction with the line manager decides to source candidates through:
 Internal movements - Key internal movements are decided and agreed upon by
business and functional heads. Movements are discussed with line managers and
reported by HR every month.
 Databases existing with HR – These may be created through referrals and / or

direct applications
 Empanelled recruitment consultants - HR maintains a panel of approved

recruitment agencies, along with agreements and rate lists. While the line
manager or HR could interact with the agency during the course of hiring, no
recruitment agency can be empanelled without the approval of HR.
 Recruitment advertisements on any media – These are released keeping in mind

the requirement, cost and other options open for recruitment.
All job advertisements should cover the following areas:
1. Brief profile of the Company

2. Level / title of the position and brief outline of responsibilities
3. Candidate qualification and experience profile
4. Response time for applications
Text should be non-discriminatory in nature and should specifically avoid reference to

sex, creed and religion. The content and presentation of the advertisement should be in
compliance with Citigroup branding guideline.
Candidates are shortlist from applications received in the following manner:
 Not suitable - rejected

 Suitable – Called for personal interview
 Meet minimum requirement but not suitable for immediate requirement – stored
in data of short listed candidates
In the process of short listing, no candidate should be discriminated against on the basis
of gender, religion, ethnicity or age.
Candidates short listed are called for a personal interview with the line manager, or HR
PRODUCT DESCRIPTION
S. PRODUCT NEW BORROWER PROGRAM EXISTING PL PLUS

NO PARAMETERS BORROWER PROGRAM
PROGRAM
CORE SURROGATE
PROGRAM PROGRAMS
1 Target Market  Salaried  Freedom Existing Existing and

Individuals Loan- Citifinancial New
 Self Individuals customers customers of
employed who have a with Section A
professionals repayment performance and B
 Self track with any of: segment with
employed other bank or  · 4 higher
businessmen financial months in Equity.
institution. CD, TW
The loan must and Auto
be running or (Corporate
not closed and
earlier than 6 Individual)
months from  · 9
the date of months in
application. PL
 Debt  · 14
consolidation months in
– Individuals Pro Credit
who hold a
Classic or
Gold card or
its variants &
the card must
have been in
existence for
more than a
year. 2
 Suvidha
Cross Sell:
Salaried: 3
salary credits
in Citibank
suvidha a/c &
a minimum
net salary
credit of Rs
3500/-pm
Self-
employed:
monthly
average
balance of
3500 for the
last 6 months
 Mobile
phone
subscribers-
Minimum
average
monthly
billing of
Rs 1000/- in
the last 3
months
2 Locations All approved All approved All approved All approved

locations and locations and locations and locations and
those which those which those which those which
might be might be might be might be
approved by approved by approved by approved by
management in management in management management
future future in future in future
3 Minimum Loan Rs.10000 Rs.10000 Rs.10000 Rs. 75000

Amount
 Rs 50000  Rs 50000  Rs.  Rs.
4 Maximum (as (as 100000 (as 200000
Loan amount communicate communicate communicat
d to the d to the ed to the
market) market) market)
 Rs. 200000  Rs. 200000  Rs 200000
(as per PP) (as per PP) (as per
CCPP)
5 Minimum 12 months 12 months 12 months 12 months

Tenor
6 Maximum 48 months 48 months 48 months 48 months

Tenor

PROGRAM
CORE SURROGATE
PROGRAM PROGRAMS*
7 Sources of  Branch  Branch  N.A  Branch

Acquisition walk in „s walk in „s walk in„s
 Direct  Direct  Direct
selling selling selling
Agencies Agencies Agencies
 · Direct  Direct  Direct
mailing mailing mailing
 Cross sell  Cross sell  Cross sell
/marketing /marketing /marketing
programs programs programs
 Tele-
calling
Agencies
 Existing
borrowers
8 Restricted  As per list  As per list  N.A  As per

Profiles defined and defined and list defined
any other any other and any
profiles as profiles as other
defined by defined by profiles as
the location 3 the location 3 defined by
the location
3
9 Restricted  Restricted  Restricted  N.A  Restricted

Areas Area List to Area List to Area List to
be based on be based on be based on
collection and collection and collection
market market and market
feedback and feedback and feedback
reviewed reviewed and
from time to from time to reviewed
time. time. from time
to time.
10 Interest rate  Loans to be  Loans to be  Loans to  Loans to

extended extended be extended be extended
based on the based on the based on based on
grid grid the grid the grid
provided, provided, provided, provided,
which will be which will be which will which will

revised/repris revised/repris be revised be revised
ed based on ed based on /reprised /reprised
business business based on based on
requirements requirements business business
and approved and approved requirement requiremen
by the by the s and ts and
Business Business approved approved
Head Head by the by the
Business Business
Head Head
Cross-loan Cross-loan
recourse recourse
available available
11 Fee Typically 2% of the loan amount and as decided by Business

Manager
12 Other Charges  Cheque swap charges – Rs 500

 Prepayment Charges - 4%
 Cheque returned charges - Rs 150 per instrument bounce
 Penal Charges - Rs 250
 Any other charges as decided by the management

PROGRAM
CORE SURROGATE
PROGRAM PROGRAMS*
13 Credit Credit Credit Decision As per the Credit

Approvals Decision to be to be based on existing Decision to
based on the the Citifinancial borrower be based on
Citifinancial Underwriting qualifying the
Underwriting Standards. All grid. All Citifinancial
Standards. All approvals to be approvals to Underwriting
approvals to signed off by be signed off Standards.
be signed off officer having by officer All approvals
by officer requisite having to be signed

having authority as per requisite off by officer
requisite credit authority as having
authority as delegation per credit requisite
per credit matrix delegation authority as
delegation matrix. per credit
matrix delegation
matrix
14 Repayments  Through  Through  Through  Through

Post dated Post dated Post dated Post dated
Cheques to Cheques to be Cheques to Cheques to
be collected collected at be collected be collected
at the time the time of at the time at the time
of disbursal disbursal of of disbursal of disbursal
of the Loan the Loan of the Loan of the Loan
payable on payable on the payable on payable on
the 5th of 5th of the the 5th of the 5th of
the month. month the month. the month.
 Through  Through  Through  Through
ECS Standing ECS ECS
Instructions
on the
CITIBANK
SUVIDHA
a/c for
SUVIDHA
customers
 · Through
ECS
15 Targeted IRR As decided by management
16 Collateral None. Citifinancial recourse will be based on the Loan agreement

and the PDCs/ECS mandate signed by the customer
UNDERWRITING STANDARDS- Principle terms and

conditions
S. CRITERIA NEW BORROWER EXISTING PL PLUS

NO PROGRAM BORROWER PROGRAM
PROGRAM
CORE SURROGATE
PROGRAM PROGRAMS
 Income
surrogate
 Debt
consolidation
 Mobile phone
subscribers
 Citibank
Suvidha
customers
1 Minimum  21 yrs  21yrs  21yrs  21yrs
Age
2 Maximum  065 yrs  65 yrs  65 yrs  65 yrs
Age on
Loan
Maturity
3 Income  Rs Not applicable till  Not applicable 1. Existing
40000/- loan amount Rs for finance Consumer
per 50000 provided amount less Durables
annum the following than Rs 50000. customers
Surrogate income  For loan with the
indicators are amount greater following
considered than Rs 50000, criteria are
 Freedom Loan latest income eligible
–Last 6 months proof to be
repayment track taken with  Single
with another minimum of product >Rs
bank or Rs. 40000 p.a. 30000/-
financial  Min 8 MOB
institution with  Max One
no emi bounce (Refer to section EMI bounce
in last 3 months. on criteria of in last 8
 Debt approval for loan months
Consolidation- amounts greater  All EMI
Last 2 months than Rs 50000 cleared
credit Card without a valid  No bounce
statements income proof in last 3
 Mobile Phone document for months
subscriber- repeat customer)  · Min EMI
Minimum
monthly Rs 2000/-
average billing
for the last 3 2. Auto
months to be Rs customers( of
800/- Citifinancial
 Suvidha and other
customers- finance
Salaried: 3 company)
months salary with 12 MOB
credits in record of a
Suvidha a/c car (except
with minimum matiz, cielo,
salary credit of Siena, auto
Rs 3500. Self- taxi) with the
Employed: following
Monthly criteria
average balance  Max 1
of 3500/- for the EMI
last 6 months. bounce,
 All
EMI‟s
paid,
 No
bounce
in the
last 3
months
3. Salaried
applicants
with a
standard
income proof
above Rs
125000
4. Doctors
(MBBS with
running
practice) with
standard
income proof
above Rs
100000.
5. Gold Card
holder with
credit limit
above
Rs 100000
with last 3
bills paid on
minimum
amount due.
6. Self-
employed
individuals
with standard
income proof
greater than
Rs 100000
7. 12 months
track on a PL
with other
finance
company(onl
y new
borrowers)
where
minimum
finance
amount is Rs
75000 and
minimum
emi is Rs
3500
8. 9 month
track on a
housing loan
with other
finance
company
with
maximum 1
emi bounce
and no emi
bounce in last
3 months.
Loan to be
current as on
date.
Minimum
housing loan
amount to be
Rs 500000
and minimum
emi Rs 5000.
Loan to be
active or
closed not
later than 6
months from
the time of
loan
application
9. Any other
criteria as
approved by
Credit & Risk
Director
Income proof
required in
100% cases.
Minimum
income Rs
40000 pa(where
other surrogates
are available)
 3 months
4 Bank  3  3 months N.A from date of
Statements months from date of application for
from application New
date of  6 months for Customers
applicati Freedom Loan  Not required
on program for Existing
Customers
CRITERIA NEW BORROWER PROGRAM EXISTING PL PLUS

BORROWER PROGRAM
PROGRAM
CORE SURROGATE
PROGRAM PROGRAMS
5 Current  At least 1  At least 1  N.A  At least 1

employment year year year for new
borrowers
 Not
applicable for
Existing
Customers
6 Residence  1 year for  1 year for  N.A  1 year for

stability Rented Rented rented
accommodati accommodati accommodatio
on on n
 6 months  6 months  6 months for
for self for self self
owned/parent owned/parent owned/parenta
al/ company al/ company l/ co. provided
provided provided  Not
accommodati accommodati applicable for
on on Existing
Customers
7 Telephone At least one At least one At least one At least one

Requirement direct line at direct line at direct line at direct line at
(direct residence or residence or residence or residence or
contactability) office office office office
Ref to
Annexure IV
on phone
acceptability
criteria.
8 CPV office Mandatory for Mandatory for Mandatory for Mandatory for
self employed self employed self employed all self
only only only where employed new
borrower cases,
 The and for existing
previous borrowers only
loan was a where

Fast track
loan  The previous
 Was loan is a Fast
foreclosed track loan
earlier than  Was
6 months foreclosed
from the earlier than 6
date of months from
application the date of
 Change in application
address  Change in
from address from
previous previous
loan loan
 Loan  For all self
amount employed
greater new
than Rs borrowers
75000
9 CPV Mandatory for Mandatory for Mandatory for Mandatory for

Residence all cases all cases all cases all new
where borrower cases
and for existing
 The customer cases
previous where
loan is a
Fast track  The previous
loan* loan is a Fast
 Was track loan
foreclosed  Was
earlier than foreclosed
6 months earlier than 6
from the months from
date of the date of
application application
 Change in  Change in
address address from
from previous
previous loan
loan
 Loan
amount
greater
than Rs
75000
10 Telephone Mandatory for Mandatory for Mandatory for Mandatory for

Verification the applicant & the applicant & the applicant the applicant in
one reference. one reference. all cases.
(Reference tvr Reference tvr to
waived where be done in New
applicant has an borrower cases
active running
repayment
track for more
than 6 months
with another
financier)
11 De- De-duplication check on Citifinancial database, Citibank Negative

duplication database and watch list customers (SDN & RBI watch list) mandatory
Check for all.
Note:
Fast track for Sales Finance (CD/2W) - Physical verification report is not required for
“Fast Track” applications where the loan amount for durables (net of advance emis) is
less than Rs.30000 for individuals salaried in government/limited companies or less than
Rs.20000 for self employed individuals. For two wheelers, if the LTV is below 80%
(subject to finance amount net of advance EMI‟S being less than Rs.35000), the loan
becomes a fast track case.
Sl. CRITER EXISTING

IA PL PLUS
N NEW BORROWER PROGRAM BORROWER
PROGRAM
O PROGRAM
CORE PROGRAM SURROGATE

PROGRAMS
12 Two references are Two references are N.A N.A in existing

Reference mandatory. Can be mandatory. Can be borrowers
s friends/colleagues/relatives friends/colleagues/rel Two references are
in the same city atives in the same city mandatory for all
new borrowers.
Can be
friends/colleagues/r
elatives in the same
city, for all new
borrowers
13 Personal Mandatory for all cases Mandatory for all N.A Mandatory for all
Discussio Refer to section on cases cases
n interviews Refer to section on Refer to section
interviews on interviews
14 Budget Mandatory Mandatory Mandatory for Mandatory

Analysis Refer to section on Budget Refer to section on Loan amounts Refer to section on
analysis Budget analysis greater than Budget analysis
Rs 50000.
Refer to section
on Budget
analysis
15 Repayment N.A Freedom Loan: For existing

1. 1.
Track  § Minimum 6 borrowers:
Minimum
months as evident by Minimum 8MOB
4 months
bank statements or on sales finance
for
Statement of account loan
Auto/Sales
from previous Minimum 12 MOB
Finance
financier. on auto loan from
2. 2. 9
 § Loan should be us or other finance
months for
running or not closed PL company
earlier than 6 months For new borrowers:
3. 3. 14
from the date of 12months track on
application. months for PL.

 § PDC and ECS pro credit 9 months track on
based repayment to be housing loan
considered.  § No
Debt Consolidation: EMI
 § Credit card to bounces in
be in existence for a the last 3
minimum of 1 year. months
 § Expiry on the  §
card to be greater than Never
3 months from the date beyond
of application. bucket 2
 § Last 2 months  §
statements to be Loan
analyzed. status to
Suvidha customers: current at
 § Salaried: 3 the time of
months salary credit in new loan
a/c with minimum
salary credit of Rs Mortgage
3500 pm. customers do
 § In Self- not fall into
employed: No bounce repeat
in last 6 months and customer
monthly average bracket. They
balance of 3500/- in should be
the last 6 months. treated as new
Mobile phone borrower if
subscribers: they come for
 § Minimum 3 a loan
months billing
statements with an
average monthly
billing of Rs 800/-
16 Loan emi Between 10000& Freedom Loan: Max emi  As per the Max emi capped at
Eligibility 50000(Rs 200000 as capped at 150% of the emi existing 70% of the
per the PP) as per of track loan till loan borrower monthly verifiable
budget analysis. amount Rs 50000. grid, on first income.
Debt ratio is capped at Debt burden capped at and second
70% 70% for all loan amounts enhancemen
greater than Rs 50000. t, for loan
Subject to budget analysis. amount less
Debt Consolidation : Max than Rs
30000 for classic cards and 50000,emi

its variants .Max 50000 for to be 150%
Gold card and its variants . of previous
Max loan amount to be 1.5 loan or as
times the credit limit or the determined
absolute loan Cap , by debt
whichever is lesser. Emi as ratio cap
per the budget analysis which ever
Mobile phone subscriber: is higher.
Max emi can be 300% of  · Debt
the average billing amount ratio capped
of last 3 months till loan at 70% for
amount Rs 50000. Subject first
to budget analysis enhancemen
Debt burden capped at t & loan
70% for all loan amounts amount
greater than Rs 50000. greater than
Subject to budget analysis Rs50000/-
Suvidha customers: Max  ·
emi can be 70% of salary Following
credit per month subject to categories
budget analysis not eligible
Suvidha Account holders:
For salaried applicants: a) a)
Last 3 months Citibank Collections
Suvidha bank statements foreclosed
with monthly salary credit cases
of not less than Rs 3500 b) b) Write
for last 3 months. Debt off cases
burden capped at 70% with write
For self employed off amount
applicants: Last 6 months more that
Citibank Suvidha bank Rs 500
statements with monthly c) c) Any
average balance of not less case beyond
than Rs 3500 . Debt bucket 2
Burden capped at 70% d) d) AHFS
e) e)
Mortgages/
Home Loan
customers
17 Debt Burden Capped at 70% of Not applicable till loan Not applicable Capped at 70% of
applicant‟s gross amount less than equal till loan amount the applicant‟s
disposable to Rs 50000 where the less than equal to gross disposable
verifiable income emi and loan amount is Rs 50000 where verifiable income
calculated as per the the emi and loan
surrogate. amount is
calculated as per
For all loan amounts the Existing
greater than Rs 50000, borrower Grid.
debt burden capped at
70% of the monthly For all loan
verifiable income. amounts greater
than Rs 50000,
debt burden
capped at 70% of
the monthly
verifiable
income.
Pls note: No debt

burden for loan
amounts greater
than Rs 50000
subject to certain
parameters, is
detailed in
separate section
18 Corporate N.A N.A  · If the NA

Lending previous loan
on Sales
Finance and
Auto is in the
corporate
name, the PL
is offered only
to the Partner/
Director who
was the
authorized
signatory in
the previous
loan.
19 Guarantor N.A N.A N.A N.A
Note:
Maximum finance amount till Rs. 200000 can be given subject to 70% debt burden cap,
with approval from Credit & Risk Director or his designees (with relevant approval
authority limits).
EXISTING BORROWER QUALIFYING GRID
The finance amount an existing customer is eligible for, is worked-out based on the
following grid :
 There should be no EMI bounces in the last 3 months and the account to be
current as on date.
 Never beyond bucket 2 (60dpd)
 AHFS closures, write off cases with write off amount greater than Rs 500 and
accounts beyond bucket 2 are not eligible.
OLD LOAN
CD/TW PL AUTO Pro-Credit
Performance 4 9 4 14
(min months) -
50% of 50% of Tenure <= 12 50% of

monthly monthly months – monthly
income OR income OR 50% of income OR
150% of 150% of EMI monthly 150% of
EMI (whichever is income OR EMI
M Income Proof – (whichever greater) LESS 125% of EMI (whichever
ACTIVE is greater) current EMI (whichever is is greater)
P A LESS greater) LESS
current EMI LESS current current EMI
N X EMI (if there are
E
active
E R
Tenure > 12 loans)
months –
E 50% of
W S monthly
M income OR
O 150% of EMI
I (whichever is
greater)
N LESS current
EMI
L A 50% of 50% of 50% of

50% of
Income Proof – monthly monthly monthly monthly
CLOSED/ income OR income OR income OR income OR
O L FORECLOSED 150% of 150% of EMI 150% of EMI
150% of
EMI (whichever is (whichever is
EMI
(whichever greater) greater) (whichever
A L is greater) is greater)
150% of 150% of EMI Tenure <= 12 150% of
N O No Income EMI LESS LESS current months – EMI LESS
Proof – current EMI EMI 125% of EMI current EMI
ACTIVE LESS current
A EMI
N Tenure > 12
months –
150% of EMI
LESS current
EMI
No Income 150% of 150% of EMI 150% of EMI 150% of

Proof – EMI EMI
CLOSED/
FORECLOSED
Loan <= Foreclosed
12,000 –after 6
350% ofmonths/net Rs 1,00,000 Rs 1,00,000
M previous disbursal after
finance 9 months –
A amount OR 150% of
Rs 60,000 previous
X (whichever finance
is lesser) amount OR
Rs 1,50,000
A Loan > (whichever is
12,000 – lesser)
M 300% of
previous Performance
finance of 9 months –
T
amount OR 75% of
Rs 60,000 previous
(whichever finance
is lesser) amount OR
Rs 1,50,000
(whichever is
lesser)
Note: Existing customers who do not fall under the pre approved criteria mentioned
above are referred for decision to the Credit Unit for a revised look at the case.
 Debt burden capped at 70% for all loan amounts greater than Rs 50000.
 Any finance amount deviation from the grid needs to be signed off by credit officer.
 Budget Analysis mandatory for all loan amounts greater than Rs50000
 Any EMI deviation beyond 150% the previous emi (where no income proof is
available)or 70% of Debt Burden is a credit policy deviation, which has to be signed
off by Credit & Risk Director
 Applicants who have foreclosed the sales finance loan post 4 MOB of performance
and personal loan post 6 MOB of performance only and loan not closed 6 months
prior to new loan application, are eligible for PL under EB GRID
DOCUMENTS REQUIRED
S. CRITERIA NEW BORROWER PROGRAM EXISTING

NO BORROWER
PROGRAM
CORE SURROGATE
PROGRAM and PROGRAM
PL PLUS
PROGRAM
4.1 Income Standard The following can be Latest Income

proof considered as proof to be
 Income Tax surrogate income obtained for
return indicators Loan amount
 Form 16 greater than Rs
 Salary  § Last 6 50000/-
Certificate months Bank
/slip from statements/track (Ref to list for
Government record evidence Core Program)
/reputed of repayment to
company previous
 Income tax financier (Min
clearance 6month MOB)
certificate  § Debt
 Advance Tax Consolidation -
Challan with latest 2 months
Computation Credit Card
 Intimation statement &
under section photocopy of
143 of the IT both sides of the
Act credit Card.
 Audited  § Mobile
financials phone
Subscriber-Latest
3 months mobile
Non-Standard bill
 §
 Pension Payroll/salary
Certificate credits/ average
 Salary Credit balance in
in bank Suvidha a/c for
account other Suvidha
than Suvidha customers.

Account.
 Salary (Applicable for loan
Certificate amounts till Rs
from a not 50000).
very known Latest Income proof
and reputed to be obtained for
company Loan amounts greater
than Rs 50000. Refer
(Ref to Section on to list for the Core
acceptability program
criteria for
Income
documents)
4.2 Address Standard

proof
 Ration Card
 Utility Bills not older than 90 days from application date
 Life insurance policy paid premium receipt of latest year
 Passport
 Voters ID Card
 Registered Rent deed/company lease
 House Allotment letter from the Government/Registered
societies
 Property papers
 Property registered deed
Non-Standard
 Latest Credit card statements (last 2 months)

 Bank Passbook
 Gas bill
 Declaration on company letter head for Government/Semi
government undertakings and known public limited
companies
 Latest Bank statements ( last 2 months bank
statements)/Latest updated bank passbook
 Mobile phone bill postpaid (last 2 months bills)
 RC Copy of 4W in applicant‟s name
 Driving License
EXISTING
S. NEW BORROWER PROGRAM
CRITERIA BORROWER
NO
PROGRAM
CORE PROGRAM SURROGATE
and PL PLUS PROGRAM
4.3 Identity Standard

Proof
 Passport
 Voters ID
 Driving License
 Photo Credit Card
 Pan Card
 Employee Identity card issued by Government/ reputed
Public limited and Private limited companies
 Employee State insurance medical cards with photographs
 Medical Insurance cards from Public sector insurance
companies with photographs
 Trade license/professional license (e.g sales tax no,
importer exporter code)with applicant‟s photograph
 Armed Forces ID card
Non-standard
 Photo attested from Bank

 School/College Certificate showing Date of Birth
 Form 49(a) for Pan Card application
 Ration card with applicant‟s photo
 Certified birth/marriage certificate
 Bank passbook with applicant‟s photograph on the same
which is duly attested
 Property registered deed with applicant‟s photograph
 Employee photo ID card from recognized company(Any
company which is listed with NSE/BSE or any recognized
stock exchange of India)
 Vehicle (car) registration certificate with applicant‟s
photograph
4.4 Photograph Mandatory for all Mandatory for all N.A

applicants applicants
4.5 Bank Bank statements for Bank statements for Not Applicable
Statements the last 3 months the last 3 months
from the date of from the date of

application. Cover application. Cover
page of bank page of bank
statements/passbook statements/passbook
mandatory. Bank mandatory. Bank
account should be account should be in
in existence for existence for
minimum 06 minimum 06 months
months from the from the date of
date of application application
For income surrogate
program Bank
statement to reflect
repayment to prior
lender (to be atleast 6
months on books).
Not mandatory if
genuine track record
is provided
4.6 Loan Fully completed and Fully completed and Fully
Application signed by the signed by the completed and
& customer customer signed by the
Agreement customer
4.7 PDCs  For the entire tenor of the loan
 To be issued from a maximum of 2 accounts
 Signatures to match with the Loan agreement and the
application form
 PDCs can be provided from current account of
proprietorship firm along with proprietorship
declaration. PDCs can also be provided from
partnership firm a/c or company a/c along with
partnership deed + NOC from partners /Board
resolution from company.
ECS  PDCs from a joint account (applicant-father, applicant-
mother, applicant-spouse) acceptable with signature
verification from the bank
 ECS mandate to be completely filled in and

signed/stamped by the bank
 Non-standard document and documents older than from as specified in table, can
be accepted by Credit Officers with specific approval authority on Personal
Loans.
 Documents list will be updated from time to time with Credit and Risk Director‟s
approval.
ACCEPTABILITY CRITERIA FOR INCOME PROOF DOCUMENTS
S.No. Documents Acceptability Criteria
1 Income Tax  § Should be in applicant‟s name

Return  § Income tax return should be filed from the
same city as of loan application
 § Any one of last 2 years ITR is acceptable.
Only agricultural income or income from other
sources is not acceptable.
 § Income under the head
business/profession, Salary, others, property and
agriculture is acceptable and can be clubbed.
 § Income from short term and long term
gains and Interest income is not considered.
 § ITR should bear the ITO stamp with
ward/range number and date mentioned in the
same and the acknowledgement number written in
hand or hard coded in black
 § It should have been signed by the applicant
 § 2 years ITR‟s can be filed on the same date
in the same year
2 Form 16  § Has to be latest.

 § It should bear original stamp of the
company and signed by the authorized signatory.
 § Company issuing a Form 16 should have
TAN number.
 § It should give details on gross salary ,
standard deductions, investments made for tax
rebate, tax deducted at source deposited in which
bank on what date
3 Salary Slip  § Any one of last 2 months salary slip is

acceptable.
 § It should provide details on gross salary
deductions and net salary.
 § Computerized /statement in standard
format , does not require a signature.
 § Salary slip is never on a letterhead
4 Salary  § Salary certificate cannot be older than 90

Certificate days from the time of loan application
 § It should be signed and stamped by the
company.
 § It can be on the company letterhead or
plain stationery and is always addressed to “whom
so ever it may concern”.
 § Salary certificate of known
Government/Semi Government/Public limited
companies is acceptable
5 ITCC  § Any one of last 2 years ITCC is

acceptable.
 § Has to be signed and stamped by the
Income tax office
6 Advance Tax  § It has to be the latest (Last quarter‟s).
Challan  § Should have the IT seal and details of
income tax paid.
 § Should have a computation attached
7 Intimation  § Any one of last 2 years is acceptable
under Section  § Should have the signature and seal of IT
143 of the IT office
Act
8 Audited  § Any one of last 2 years is acceptable
Financials  § Balance sheet/Profit and loss statements
along with schedules are required
 § Auditor‟s report and auditor‟s stamp and
signature required on all statements
 § Corporate should have positive cash flow
9 Pension  § Document from the Government body

Certificate from where the applicant has retired giving details
(Non- on pension entitlement along with last 3 months
standard) Bank statements showing pension credit in the
bank
ACCEPTABILITY CRITERIA FOR IDENTITY PROOF DOCUMENTS
S No Documents Acceptability criteria
1 Passport  § Should be in applicant‟s name
 § Should be valid for next 3 months from the

date of application
 § Should confirm applicant‟s identity through
the photograph, signature, Date of Birth and
addresses.
 § Check for the passport number and place of
issue
2 Voter‟s ID card  § Should be in applicant‟s name

 § Photograph on the same should identify the
applicant
 § Check for father‟s/spouse name, applicant‟s
age and date of issue
 § Check for unique alphanumeric ID card no
on top of the photograph. For all cards issued from
1996 bears the same number on the backside of the
card.
 § Check for applicant‟s address and issuing
body‟s hologram seal and signature with year of
issue.
 § Please check that the printing has been done
on the back and front of the same paper, not two
papers joined together with the glue
3 Driving License  § Should be in applicant‟s name, photograph

on the same should validate the customer identity.
 § Check for the validity date, applicant‟s
signature and issuing authority stamp
 § Check for DL no, father‟s name/spouse‟s
name and Date of birth.
 § DL not laminated should have the
photograph attested by the RTO. Laminated DL will
not have the stamp
4 Photo credit card  § Should be in applicant‟s name.

 § Check for the photo and signature which
should be specific to the applicant
 § Check for the credit card no and validity
period.
 § Expiry date should not be another 3 months
from the loan application date.
 § Should have been issued at at least 1 year
from the loan app date
5 PAN card Issued by Government of India to all with taxable/non

taxable income .It stands for Permanent Account
number .PAN no is a unique 10 digit alphanumeric
number mentioned on top of the card. The 5th character
of the number is the first letter of the first name or the
last name. 4th character is indicative of the kind of entity
who ah been issued the card. P stands for Individual,C
stands for company,H for HUF and F for partnership
firm.
Verify the applicant‟s photo, signature, Date of birth
,father‟s/spouse name with the information available
with us
6 Employee ID card Check for

issued by Applicant‟s photograph, Employee Code.
Government/semi Company Seal And Signature with validity period.
Government The same needs to be cross verified with application
companies/Armed form ,cpv and tvr done at the office
forces
7 Employee state Check for the policy no, applicant‟s photo and validity
insurance medical period.
card with photo
8 Medical insurance Check for

cards from Public The policy number
sector insurance Applicant‟s photo should validate the individual.
companies with Validity Period.
photo
9 Trade Check for

License/Professional License code
license Date of issue,
Type of business whether same correlates with
application form and verification,
Applicant‟s photograph on the same should validate
Non standard documentation
1 Ration card with Ration card should be at the applicant‟s current

photo residence address as given in the application form
Photograph should validate the applicant and should be

attested by gazetted officer/authorized signatory.
Pls keep in mind that photograph on the ration card can
only be of the Head of the Family
2 Bank passbook with Bank passbook to be in applicant‟s name. It should give

applicant‟s photo his name and account number
attested on the same Photograph on the same should validate applicant and
have the seal and stamp of the bank. Seal stamp should
partly be on the photograph and the surface
3 Property registered Property registration documents on the stamp papers

deed with bearing applicant‟s photograph and signature
applicant‟s
photograph attested
4 Employee photo ID Check company status

card from Check for applicant‟s photograph, name, designation,
recognized company employee code and company name and logo.
Some of the firms also mention the residence address on
the backside
5 Vehicle (car) RC to be in applicant‟s name and photo to validate the

registration applicant.
certificate with Please
applicant‟s
photograph
TRANSACTION PROCESS – NEW BORROWER
Note:
 N stands for No
 Y stands for Yes
 Personal Discussion and Budget Analysis has to be done by a PL Officer/Credit
Officer.
 Final approval to be done by PL Officer/Credit Officer with specific approval

authorities as per credit authority delegation matrix.
 Deviations in each credit step( negative cpv, negative tvr, negative dedupe etc)
can only be signed of by a Credit officer/Manager/Credit Head
TRANSACTION PROCESS – EXISTING BORROWER
ANALYSIS
&
INTERPRETATION
ANALYSIS & INTERPRETATION

LIMITATIONS:
Analysis has been made for each & every question given in the questionnaire. Mainly
analysis has been done for the sample of 50 covering Dharwad. This analysis represents
only of Dharwad. Therefore the findings will show the picture of Dharwad only.
To have an in-depth analysis of the sample, the sample of 50 has been classified into 3
groups by using household income as classification data. Therefore the analysis will not
only show the picture of the whole sample together but it will also show the picture of
each group separately within the sample.
On the basis of analysis, interpretation has been made for the whole sample as well as for
each group within the sample.
Type of questions:
Dichotomous questions: options given were:
Agree (it means customer is satisfied)
Don‟t agree (it means the customer is unsatisfied)
Can‟t say
Type of questions:
Balanced scaling questions: Here the customer is required to rate on a scale of 1 to 3

including 1 & 3.
Rating of 1 means that the customer is unsatisfied
Rating of 2 means that the customer is neither unsatisfied nor satisfied..
Rating of 3 means that the customer is satisfied.
CLASSIFICATION OF SAMPLE (TOTAL SAMPLE:50)
The whole sample of 50 has been divided into 3 groups, using household income as
classification data. Following are the 3 groups:
Group 1: It consists of customers having household income of less than 5000. The total
strength of this group is 15.
Group 2: It consists of customers having household income in the range between 5000
to 10000. The total strength of this group is 25.
Group 3: It consists of customers having household income of more than 10000. The
total strength of this group is 10.
In the following pages you will encounter some tables & pie charts for each of the topic
separately, being covered in the questionnaire. For each topic there will be one table
showing responses of each group separately & combined together which forms the total
sample of 50. Apart from this there will be 4 pie charts for each topic. While the first pie
chart will show the responses of all groups taken together where as the other 3 will show
the responses of each group separately.
1. Customers age group
4
G1
3 G2
G3
2
0
18-25 25-35 35-45 45-55 55-65
Maximum age group of the customers is between 25 to 35.
2. Income Group of the customers
Number
30
25
20
15 Number
10
0
Below 5000 5000-10000 Above 10000
maximum number of customers would fall in the income category of 5000-10000 p.m.
3. CUSTOMER SATISFACTION REGARDING OVERALL

SERVICE OF CITIFINANCIAL.
Ratings G 1 G1 G2 G2 G3 G3 Total Tot

al
freq per freq per freq per freq
per
1 8 53.33 3 12 1 10 12 24
2 5 33.33 10 40 2 20 17 34
3 2 13.33 12 48 7 70 21 42
Total 15 25 10 50 100
NOTE: ‘G’ means group, ‘freq’ means frequency & ‘per’ means percentage
CUSTOMER SATISFACTION-TOTAL
SAMPLE
24%
42% 1
2
3
34%
Only 42% of the total sample of customers is satisfied with the overall service of
Citifinancial.
customer satisfaction-group 1
13%
1
2
33% 54%
3
In group 1, only 13% of the customers are satisfied with the overall service of
Citifinancial.
12%
1
48%
2
40% 3
In group 2, the situation is somehow better than group 1 as here, about 48% of the
customers are satisfied with the overall service of Citifinancial.
10%
20% 1
2
3
70%
In group 3, about 70% of the customers are satisfied. This shows the higher income
customers are much more satisfied than the lower end customers as group 3 denotes
higher end whereas group 1 denotes lower ed customers.
4. CUSTOMER OPINION REGARDING CITIFINANCIAL’S

ABILITY TO KEEP UP ITS PROMISES
STATEMENT G 1 G1 G2 G2 G3 G3 Total Total
freq per freq per freq per freq per

Agree(1) 6 40 22 88 9 90 37 74
Don’t (2) 8 53.33 3 12 1 10 12 24
agree
Can’t (3) 1 6.66 - 0 - 0 1 2
say
Total 15 25 10 50
CUSTOMER OPINION-TOTAL
SAMPLE
2%
24% 1
2
74% 3
It shows that about 74% of the total sample of customers agrees with the fact that
citifinancial was able to keep up its promises.
customer opinion-group 1
7%
40% 1
2
3
53%
In group 1, only 40 % customers agree with the fact that citifinancial was able to keep up
its promises.
12% 0%
1
2
3
88%
In group 2, as against group 1, a staggering 88% customers agree with the fact that
citifinancial was able to keep up its promises.
10% 0%
1
2
3
90%
I group 3, about 90% customers agree with the fact that citifinancial was able to keep up
its promises. This again shows that high income group customers (group 3) are much
more satisfied with Citifinancial than the low income group customers (group 1), as 90%
customers of group 3 support the above statement as against a mere 40% customers of
group 1 who support the above statement.
5. CUSTOMER OPINION REGARDING CITIFINANCIAL’S

ABILITY TO MEET ITS CUSTOMERS’ NEEDS

Agree(1) 5 33.33 21 84 9 90 35 70
Don’t (2) 9 60 4 16 1 10 14 28
Agree
Can’t (3) 1 6.66 - 0 - 0 1 2
Say
Total 15 25 10 50
SAMPLE
2%
28% 1
2
70% 3
It shows that about 70% of the total sample of customers agrees with the fact that
Citifiancial was able to meet their personal needs.
7%
33%
1
2
3
60%
In group 1, only 33% of the customers agree with the fact that Citifinancial was able to
meet their personal needs.
16% 0%
1
2
3
84%
In group 2, as against group 1, a staggering 84% of the customers agree with the fact that
Citifinancial was able to meet their personal needs.
10% 0%
1
2
3
90%
In group 3, about 90% customers agree with the fact that citifinancial was able to meet
their personal needs. This again shows that high income group customers (group 3) are
much more satisfied with Citifinancial than the low income group customers (group 1), as
90% customers of group 3 support the above statement as against a mere 33% customers
of group 1 who support the above statement.
6. CUSTOMER OPINION REGARDING CITIFINANCIAL AS A
TRUST WORTHY BANK

Agree(1) 6 40 22 88 9 90 37 74
Don’t (2) 8 53.33 3 12 1 10 12 24
agree
Can’t (3) 1 6.66 - 0 - 0 1 2
Say
Total 15 25 10 50
SAMPLE
2%
24% 1
2
74% 3
It shows that about 74% of the total sample of customers agrees that Citifinancial is a
trustworthy bank.
7%
40% 1
2
3
53%
In group 1, only 40 % customers agree with the fact that Citifinancial is a trustworthy
bank.
12% 0%
1
2
3
88%
In group 2, as against group 1, 88% customers agree with the fact that Citifinancial is a
trustworthy bank.
10% 0%
1
2
3
90%
I group 3, about 90% customers agree with the fact that citifinancial is a trustworthy
bank. This again shows that high income group customers (group 3) are much more
satisfied with Citifinancial than the low income group customers (group 1), as 90%
customers of group 3 support the above statement as against a mere 40% customers of
group 1 who support the above statement.
7. CUSTOMER SATISFACTION REGARDING TIME TAKEN FOR

LOAN APPROVAL
Ratings G 1 G1 G2 G2 G3 G3 Total Total
1 - 0 - 0 - 0 - 0
2 3 20 5 20 - 0 8 16
3 12 80 20 80 10 100 42 84
Total 15 25 10 50
SAMPLE
0% 16%
1
2
3
84%
It shows that 84% of the total sample customers are satisfied with the time taken for loan
approval by Citifinancial.
0% 20%
1
2
3
80%
About 80% customers of both groups 1 & 2 are satisfied with the total time taken by
Citifinancial for loan approval.
0%
0%
1
2
3
100%
As against group 1 & 2, 100% customers of group 3 are satisfied with the total time taken
by Citifinancial for loan approval.
8. CUSTOMER SATISFACTION REGARDING EMI SCHEMES

OFFERED BY CITIFINANCIAL
1 2 13.33 2 8 - 0 4 8
2 3 20 8 32 2 20 13 26
3 10 66.66 15 60 8 80 33 66
Total 15 25 10 50
SAMPLE
8%
26% 1
2
66% 3
It shows that about 66% of the total sample customers are satisfied with the EMI schemes
offered by Citifinancial.
13%
20% 1
2
3
67%
In group 1, about 67% customers are satisfied with the EMI schemes offered by
Citifinancial.
8%
1
32%
2
60% 3
In group 2, about 60% customers are satisfied with the EMI schemes offered by
Citifinancial.
0% 20%
1
2
3
80%
As against group 1 & 2, about 80% customers of group 3 satisfied with the EMI schemes
offered by Citifinancial, indicating that they are the most satisfied among all groups, with
Citifinancial.
9. CUSTOMER SATISFACTION REGARDING INTEREST RATE

CHARGED BY CITIFINACIAL
1 10 66.66 14 56 3 30 27 54
2 5 33.33 8 32 6 60 19 38
3 - 0 3 12 1 10 4 8
Total 15 25 10 50
SAMPLE
8%
1
2
38% 54%
3
It shows a mere 8% of the total sample customers are satisfied with the interest rate being
charged by Citifinancial. & about 54% customers are unsatisfied with it.
0%
33%
1
2
3
67%
In group 1, a high of 67% customers are dissatisfied with the interest rate being charged
by Citifinancial. The interesting thing is that not even a single customer is satisfied.
12%
1
2
32% 56% 3
Here also the scene is not so good as 56% customers of group 2 are dissatisfied with the
interest rate being charged by Citifinancial.
10%
30%
1
2
3
60%
In group 3, though only 30% customers are dissatisfied but on the other had only 10% are
satisfied with the interest rate being charged by Citifinancial. This shows that majority of
the customers across all groups are dissatisfied with the interest rate being charged by
Citifinancial.
10. CUSTOMER SATISFACTION REGARDING PROCESSING
FEES CHARGED BY CITIFINANCIAL
1 10 66.66 14 56 3 30 27 54
2 5 33.33 8 32 6 60 19 38
3 - 0 3 12 1 10 4 8
Total 15 25 10 50
SAMPLE
8%
1
2
38% 54%
3
It shows a mere 8% of the total sample customers are satisfied with the processing fees
being charged by Citifinancial. & about 54% customers are dissatisfied with it.
0%
33%
1
2
3
67%
In group 1, a high of 67% customers are dissatisfied with the processing fees being
charged by Citifinancial. The interesting thing is that not even a single customer is
satisfied.
12%
1
2
32% 56% 3
In group 2 also 56% customers are dissatisfied with the processing fees being charged by
Citifinancial.
10%
30%
1
2
3
60%
In group 3, though only 30% customers are dissatisfied but on the other had only 10% are
satisfied with the processing fees being charged by Citifinancial. This shows that
majority of the customers across all groups are unsatisfied with the interest rate being
charged by Citifinancial.
11. NUMBER OF CUSTOMERS WHO FACED ANY

INCONVENIENCE FOR GETTIG IN TOUCH WITH ANY
CITIFIANCIAL PERSOAL LOAN OFFICER OR THE CONCERNED
AGENT FOR ENQUIRY REGARDING STATUS OF PROCESSING
OF LOAN
Out of a sample of 50, not even a single customer faced any inconvenience In getting in
touch with any Citifinancial personal officer or the concerned agent.
12. NUMBER OF CUSTOMERS FACED ANY PROBLEM FROM

CITIFINANCIAL DURING REPAYMENT
Out of the sample of 50 customers being surveyed, only 5 customers faced any problem
during repayment.
13. CUSTOMER SATISFACTION REGARDING SOLUTION GIVEN

TO THE PROBLEM REGARDING REPAYMENT BY
CITIFIANCIAL
In this, only the 5 customers who faced the problem were interviewed & all of them were
satisfied with the solution give by Citifinancial.
EPILOGUE
FINDINGS
1. From the analysis part one can interpret that customers across all groups in the sample
are satisfied with the service offered by Citifinancial except for the interest rate &
processing charges. We have already seen that a very high percentage of customers
across all groups in the sample are unsatisfied with the rate of interest & the processing
fees being charged by Citifinancial.
One of the major findings during the survey was that the major reason behind such
unsatisfaction by a majority of the customers is the high rate of interest being charged by
Citifinancial.
The customers are of the perception that the rate charged by Citifinancial is
comparatively higher than the rate charged by other institutions offering personal loans.
2. Except for the interest rate & the processing charges, customers are satisfied with all
other aspects of the service being provided by Citifinancial.
This signals a danger for Citifinancial as its customers are not satisfied with the interest
rate & processing charges. As many customers look out for only these two aspects, any
other institution offering personal loan at a low rate may come & takeaway the customers
of Citifinancial. This is now started happening with Citifinancial as its customers are now
turning towards its competitors, who are offering personal loans at a comparatively lower
rate.
3. Credit process at citifinancial is definitely strong enough to ensure that

delinquency is kept at the minimum.
MANAGERIAL IMPLICATIONS
1. During the course of study it was found that refund cheques of the
customers are delayed specially in upcountry locations. Therefore
procedures have to be fastened specially in case of refund cheques.
2. Though citinancial is catering to risky profile which is typically called B

and C segment, it can always bring out a service which is also relevant to
the premium segment.
3. Intense competition in the up country location in personal loan market is

very much likely with the entry of ICICI Janatha Loans, HDFC, Kotak
Mahindra, and Indiabulls. The competitors are again targeting the B and C
segment with less interest rates and Processing charges.
4. To counter attack the competition, citifianacial will have to design its

products in way that can very well fight with competition in terms of
interest rates an processing charges.
5. Also a strong sales team is the need of the hour. Focus shall be in not only
recruiting the team but retention is of prime importance.
CONCLUSION
According to the study personal loan market is growing along with the growth of middle
class. Therefore competition in all the customer segments is increasing. Competition is
also posed by local financiers or money lenders.
Though citifinancial gives loan upto Rs 2 lakh, for an initial borrower amount is limited
to maximum of 50,000 especially in up country location. This amount definitely needs to
be enhanced or other scheme has to be designed for premium segment.
The whole study shows how customers are satisfied with the personal loans offered by
Citifinancial except for the interest & processing fees part. But considering the risk in the
business, since it is an unsecured loan, rate of interest charged is justifiable.
Sound credit procedures and able sales force is definitely making citifinancial a number
one financial company in India.
BIBLIOGRAPHY
1. K P M Sundaram, Indian Economics

2. PL Handbook 2005, Citifinancial
3. Credit Policy 2005 , Citifiancial
4. www.citifiancial.com
5. www.indiainfoline.com
6. www.icici.com
7. www.hdfc.com
8. www.indiabulls.com
QUESTIONNAIRE
(Circle the suitable options)

1. NAME:
2. AGE: A) 18-25 B) 25-35 C) 35-45 D) 45-55 E) 55-65
3. Rate the service provided by citifinancial
Satisfied Dissatisfied
1 2 3
4. Is citifianancial able to keep up its promise to the customer.

Agree Can‟t Say
1 2 3
5. Do you feel that citifianancial is a trust worthy fianancial institution.
Agree Can‟t Say
1 2 3
6. Rate your opinion regarding the time taken at citifinancial for your loan approval.
1 2 3
7. What is your opinion regarding Schemes offered by citifianancial.
1 2 3
8. Give your opinion about the interest rates charged by citifinancial
1 2 3
9. Give your opinion Regarding the Processing fee charged by citifinacial
1 2 3
10 . Did face any inconinience in contacting Officer at citifiancial.
A) Yes b) No
11. Did you feel any inconvenience for repayments at citifiancial
A) Yes b) No
12. Are you given satisfactory solution to your queries at citifiancial
A) Yes b) No
My entirely doings or workings

devoted to
Dnyaneshoo Bagawaan Vishnu

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CUSTOMER SATISFACTION AND CREDIT PROCEDURE STUDY

OF CITIFINANCIAL PERSONAL LOANS

S.NO. CHAPTER PAGE

2 AIM OF THE STUDY 8

3 Dr. GALLUP & GALLUP ORGANIZATION 9

4 DESIGN OF THE STUDY 29

6 PERSONAL LOANS MARKET IN INDIA 39

9 ANALYSIS & INTERPRETATION 48

LIST OF TABLES & GRAPHS

S.NO. TOPIC PAGE

1 Customer Age Profile

1 Customer satisfaction regarding overall service of 51

2 Customer opinion regarding Citifinancial‟s ability to 53

3 Customer opinion regarding Citifinanacial‟s ability to 55

4 Customer opinion regarding Citifinancial as a 57

5 Customer satisfaction regarding time taken for loan 59

6 Customer satisfaction regarding EMI schemes offered 61

7 Customer satisfaction regarding interest rate charged 63

8 Customer satisfaction regarding processing fees 65

OBJECTIVES OF THE STUDY

1. To study the customer profile of citifinancial

2. To Study the customer perception towards citifianacial consumer loans

3. To study the personal loan market in India.

4. To understand the working of citifinancial.

NEED FOR STUDY

SCOPE OF THE STUDY

2. Steps involved in sampling Process:

Respondents are existing customers of citifianancial Dharwad

b. Specifying sampling frame:

Sampling frame is the database provided by citifinancial Dharwad.

c. Specifying the sampling Unit:

Customers who have availed loan from citifianancial.

d. Specifying the sampling method:

Non-Probability Convinience sampling method was used for data collection.

e. Determining sampling size:

Total target respondents were 50

d. Specifying the sampling plan:

Selected different category of the customers.

Dichotomous questions: Having three options

A personal loan is an amount of money offered, normally by lending institutions such as

AMOUNT OF PERSONAL LOAN

SUITABILITY OF PERSOAL LOAN

DIFFERENCE BETWEEN PERSONAL LOAN AND BANK LOAN

MERITS & DEMERITS OF PERSONAL LOAN

PERSONAL LOANS MARKET IN INDIA

Global Consumer Group

o World‟s largest provider of credit cards

o World‟s consumer finance leader

o Citibank: highest-rated, leading global brand

Global Corporate and Investment Banking Group

Capital Markets & Banking

o #1 underwriter of Combined Debt and Equity and Equity-related

Global Transaction Services

o Leading provider of transaction products; $7.3 trillion in assets

Global Investment Management

Life Insurance & Annuities

o A leader with $500.7 billion in assets under management

Global Wealth Management

Private Client Services

o A leader in managed accounts with $1.087 trillion in total client

o Offers widest range of services to more than 25,000 of the world‟s

Products & Services:

4 Assistant Vice President