A Project Report

On

“A STUDY OF BUSINESS LOAN .”

AT

Eagle Loan Services

Submitted to
Savitribai Phule Pune University

In Partial fulfillment for the Requirement for Award of the Degree of

MASTER OF BUSINESS ADDMINISTARTION

By

Tushar Kishorappa Mahajan

MBA FINANCE

Under the Guidance of

Prof.Shalaka Sakhrekar

Sinhgad Institutes
SKN SINHAGD SCHOOL OF BUSINESS MANAGEMENT
PUNE, MAHARASTRA

(Academic Year 2022-24)

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CERTIFICATE

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COMPANY CERTIFICATE

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 DECLARATION

I, MR.TUSHAR KISHORAPPA MAHAJAN MBA II (2018-20) at the SKN SINHAGAD

SCHOOL OF BUSINESSMANAGEMENT(SIOM),Pune here by solemnly declare that
the project on “A STUDY ANALYSIS ON BUSINESS LOAN” was completed at EAGLE
LOAN SERVICES, in partial fulfillment of the requirements for the award of “Master of Business
Administration” under the guidance of Prof. SHALAKA SAKHREKAR as a result. The
project was undertaken as apart of academic curriculum, according to the university rules &
with no commercial interest & motives. It is my original work and not submitted elsewhere for
any other purpose earlier. This is original work and the conclusion drawn there in the based
on the data collected for the study.

Place: Pune Signature

Date Tushar K. Mahajan

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 ACKNOWLEDGEMENT

At the beginning, I would like to express my sincere gratitude to Almighty, the most
merciful and beneficial for empowering me to prepare the within the scheduled time. As a
student of MBA Program Internship is one of the most important partial requirement of the
total courses two year MBA program. In this regard I would to thank all the faculties of
Pune University who help me to finish my internship program. This is synopsis of my
recent study on “A STUDY ANALYSIS ON BUSINESS LOAN of EAGLE LOAN
SERVICES” As part of internship report program. I would like to thank my honorable
teacher and internship supervisor Prof.SHALAKA SAKHREKAR MADAM,SKN
SINHAGAD SCHOOL OF BUSINESS of MANAGEMENT (SKNSSBM) versity, for his
guidance and support in the preparation of this report. I will remain indebted to his for the
valuable suggestions and the time he has given me in supervising my work on report. I am
very much thankful to him because without his support and suggestion my effort would not
be materialized. I feel myself very lucky to be in touch of his great faculty. I also thank all
the staffs of this department for their sincere support. I would also like to acknowledge my
appreciation towards HANUMAN JADHAV sir of EAGLE LOAN SERVICES, for being
patient and supporting me throughout 2 months long program. My peer and colleagues at
the this organization had also been very kind and helpful and they made my internship a
more comfortable one.

Name: Tushar K. Mahajan

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 INDEX

CHAPTER TITLE OF THE CHAPTER PAGE NO.

NO.

Executive Summary

1 Introduction

2 Organization Profile

3 Research Methodology

4 Conceptual Background

5 Data Presentation And Analysis

6 Finding, Suggestion, Learing And Conclusion

References

Appendix

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EXCUTIVE SUMMARY

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Business is a dream of a person that shows the quantity of efforts, sacrifices, luxuries and
above all gathering funds little by little to afford one’s dream. Business is one of the things
that everyone wants to own. Business is a shelter to person where he rests and feels
comfortable. Many financial institution provide Business loans whether commercial banks or
to the people who want to have a Business.

The housing sector plays an important role in the economic development of the country.
My project title is “A STUDY OF BUSINESS LOAN WITH SPECIAL REFERENCE
EAGLE LOAN SERVISES PUNE”. I selected this topic because the Indian Business
Finance Industry has grown by leaps and bound in few years. Total Business Loan
disbursement by banks has raised which witnesses’ phenomenal growth from last five years.
There is greater number of borrowers of Business loans. So by this study we can find out
Satisfaction level of customers and problems faced by them in obtaining Business Loans.
My project duration was of two months, and it’s started from 31 july 2023. At first it started
with the introduction where I was given the knowledge of Eagle Loan Services and its
policies..

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INTRODUCTION TO STUDY

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The business loan meaning is a loan product offered to business owners who have a running company but
require external funds for operations. The investment cover expenses such as employee salaries, rent, buying
equipment, or expanding the business in other cities.

Lenders analyze the business owner's creditworthiness through factors such as credit score and business
turnover. However, entrepreneurs or business owners are legally bound to use the loan amount only to cover
business expenses and not use the loan amount to cover personal expenditures.

Repayment is also a factor in the business loan definition, as the lenders charge interest on the principal
amount the borrower must repay in full within the loan tenure.

 Importance of Business Loan

Why business loan is important?

It requires funds to start, run or expand a business, and business loans are an important
accessory for getting funds to boost businesses. A business needs funds for many things such as
getting new equipment, increasing the workforce, expanding, etc. This loan is different from
other loans and it has many benefits.

Business loans are provided by banks as well as financing companies, government

establishments, etc. From flexibility to affordable interest rates, Business loans have many
features and benefits to fulfill your needs.

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  Objective:

1) To acquire knowledge about Business loan process of EAGLE LOAN SERVICES.

 To start business
 To expand business
 To buy or equipment or inventory
 To pay of debt
 To finance a business acquisition
 To fund a marketing campaign
 To cover unexpected expenses

 Scope:

The study covers a period of five years from 2003 to 2008. There are several reasons for
selecting this period.

1) During the past 5 years the Bank has gone global as a result the company has
witnessed many economic and political changes.

2) The study is limited to only EAGLE LOAN SERVICES. This study is mainly related to
the individuals who are interested in taking Business loans from banks/NBFC to fulfill their
dreams.

3) The study is mainly related to all the loans provided by Eagle Loan Services only.

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COMPANY PROFILE

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“EAGLE LOAN SERVICES PUNE,”

ADDRESS:-SHIVANJALI HEIGHT FLAT

NO.203,JSPM COLLEGE ROAD, NEAR

VISION ENGLISH SCHOOL, NARHE.

DIST.PUNE

TEL.NO.9284811005
EMAIL.ID: eagleloanservices2021@gmail.com

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 Vision :-
To be the most preferred and trusted Firm.

 Mission :-
Dedicated to customer delight and inclusive growth by levering
technology With empowered and committed work force.

 Our value :-
o Transparency & Ethics
o Respect and empathy for customer
o Competence and dedication in all that we do
o Nuturing a cultural and learning and technological excellence

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 Our Services :-

 Loan scheme
1) Business Lone
2) Gold Loan
3) Vehical Loan
4) Small Scale industrial scheme
5) Personal loan
6) Business loan
7) Mortage loan

 Services
1) 42 Banks and NBFC are Connected

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RESEARCH METHODOLOG

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Research methodology is a way to systematically solve the research problem. It is a way of
written game plan for conducting research. In this we describe the various steps that are taken
by a researcher. So it is therefore desirable to design a research methodology. For this research
the research methodology is designed as under: Sources & Nature of study : This is the study
to judge the behaviors of the customers seeking house loan in the market.
To make the study feasible and concrete due consideration is given to the age, income level
and occupation and various factor affecting the house loan taking decision of customer.
Sample size: The respondent size is 100 which is selected on the basis of convenience
sampling method. The tools adopted to analyze the data are percentage and the research
design used is descriptive research design For the purpose of research study both primary
data as we has been collected .l as secondary data has been collected.

(i) Primary Data:

A survey will be conducted to get the primary information. It is the data which is collected
directly that is for the first time in my project I will be Used : • Personal Interview •
Questionnaire

(ii) Secondary Data:

For the secondary data, the pamphlets of various schemes from different banks have been obtained.
Analysis of data: I will do analysis of my questionnaire manually.

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Business Loan :-

A business loan is a type of financing used by businesses. Typically, a bank or other lender will lend a
business money, which then must be paid back over a defined term with interest. There are many different
types of business loans, and they can be used for a wide range of business expenses.

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Types of Business Loan :-

 Term loan
 One of India's most common types of business loans that leading lenders offer is a term loan. The
loan amount sanctioned depends on the credit history of the business. Generally, the loan tenure for a
term loan is anywhere between 1 and 5 years. When you apply for such a loan, you need to mention
the purpose of use. The most efficient use of a term loan is for covering capital expenditure.

 Start-up loan
 As the name suggests, a start-up loan is suitable for entrepreneurs aspiring to launch a new business
venture. These applicants do not have an excellent credit history since their company lacks business
vintage. Therefore, to assess the individual's eligibility for a business loan, lenders consider the
borrower's personal credit profile apart from the company's. To decide the loan amount, tenure, and
applicable interest rate, lenders consider the current turnover figures and other financials. Before
applying for the loan, the applicant must establish the business. Proof of business existence and
registration is to be submitted at the time of the application.

 Working capital loan

 Enterprises use working capital loans to overcome any kind of financial crunch and meet daily
business requirements. The end use of this type of business loan can be for managing business cash
flow, paying salaries, increasing inventory, purchasing raw materials, investing in
machinery/equipment, etc. The loan is beneficial when a sudden need for cash flow arises. Traders,
retailers, manufacturers, and other entities involved in import and export can avail of a working
capital loan. The repayment tenure for a working capital loan is short, up to 12 months. Moreover, it
is a collateral-free loan, so the borrower does not have to pledge any collateral or asset with the
lender.

 Loan against property

 When businesses require a loan of more than Rs. 50 lakhs, they should opt for a loan against property.
An individual can avail of this type of loan by offering a property as security. The repayment tenure
for a loan against property ranges between 10 and 20 years. The borrower must mortgage the property
to receive funds through this type of business loan. There is no restriction on the type of property the
borrower can offer as security. It can be both residential and commercial. The lender generally
provides a loan equivalent to 70% of the property’s value. But, the property offered as security needs
to be free from any kind of litigation.

 Invoice financing
 Invoice financing is suitable for small businesses. It is also known as invoice factoring or invoice
discounting. When companies face a lag between raising invoices and receiving payments, the
business loan helps in meeting regular financial requirements. The lender provides funds against the
amount raised in the invoice. The loan amount the financial institution can provide is up to 80% of the
invoice amount. After the business receives the payment, it repays the loan amount as per the agreed-
upon interest rate and tenure.

 Equipment financing
 One of the types of business loans in India ideal for manufacturing businesses is equipment financing
or machinery loan. Most manufacturing units require costly equipment for operations. For purchasing
this expensive equipment, companies require equipment financing. Such a loan is specific, where
lenders take the equipment and some other security as collateral. Compared to a term loan, the interest
rates for machinery loans is generally lower.
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 Business overdraft
 A business can avail of a business overdraft only when it holds fixed deposits with the financial
institution. The lender considers the business repayment history, cash flow, fixed deposit terms, and
more to approve this loan. With this type of loan, the borrower can withdraw the required amount and
pay interest only on the amount utilized.

 Business loan for women

 Some banks and lenders offer a separate financing scheme for women entrepreneurs. The objective is to
encourage women who are launching small to medium-sized businesses. Such specialized benefits include
flexible loan amounts, discounts on interest rates, and faster loan processing .

 Business credit card

 To fulfill short-term requirements, a business credit card is excellent. It lets businesses obtain cash
when they are in dire need. Business credit cards provide customers many benefits, such as credit
points, cash backs, insurance covers, etc. The interest rate on this type of financing is much higher.
Therefore, a business credit card should be the last resort

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 Business Loans in India

All the nationalized banks, private sector banks, foreign banks and housing
finance companies provide Business loan in India. The detailed information of these banks and
companies is given in Annexure
(1). Even a number of co-operative banks provide the Business loan in India. It is not possible to
mention the names of all the co-operative banks in India because their Act and Registrar are
different in different states. The list of Co-operative banks which are functioning in Surat and
provide Business loan is given in Annexure

Basic Process of Availing Business Loan in India

After deciding for availing Business loan one should go through the process of Business loan
which is applicable to customers as well as banks.

Determination of Loan amounts

Loan eligibility is based on two separate calculations:

1. The amount of Loan repayment that a customer can afford to make every month.

2. A specified percentage of the cost of the property.

The amount of the loan sanctioned will be the lower of the two figures arrived at after making
this two calculation.
It is possible that while the customer’s income (and hence, customer’s ability to
repay) could make customer eligible for a higher loan, the bank will almost always cap the

sanctioned loan amount at 80 to 90 per cent of the property cost.

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[i] Repayment Ability - The Most Important Determination

Customer’s ability to repay is based on income and expenditure pattern. Forthe customer can
certainly pay ` 2,000 towards any potential Business loan he can take. This amount can now
be used as the installment amount and the customer’s eligibility can be reverse – calculated.
The larger customer’s repayment capability, the higher will be customer’s loan eligibility.

[ii] Determination of Income

Banks need to be sure about income stability of customer. Which is why, they may not
consider the following categories of income while calculating loan eligibility Performance
bonus, medical reimbursements or leave travel allowance, as these are not certain, any case
annual perks are not available every month to help in monthly repayments. Some banks,
however, are willing to consider these amounts either partially or fully as ‘income .Overtime
may be of temporary nature. Again, if the overtime is shown as being receive dconsistently for
a long period of time, some banks may consider at least a part of this as ‘income’. Interest
income since the underlying investments on which these incomes are earned may be liquidated
to pay for customer contribution required towards the cost of the house. But if a customer can
convince some bank that the interest income will remain even after customer have bought the
house, the bank may be persuaded to include the interest income while calculating loan
eligibility. Conveyance or entertainment / other allowances paid in cash through vouchers,
unless customer regularly deposits the cash reimbursement in his/her salary account. Banks
will hesitate to consider it for a loan since they have no document to verify whether such an
allowance is indeed paid.
Earnings from non-verifiable sources such as tuition / tailoring are not considered as ‘income’ by
the banks unless business of this kind is carried on in a verifiable manner. Agricultural
income, since this is non-taxable and non-stable as well, most banks do not give this any
weightage or give significantly lower weightage .Rental income is being consistently
received and shown in the income tax (IT) returns and copies of the rental agreements are
available, banks may consider part or whole of this as ‘income’.
If a customer is a salaried employee, some banks apply the normative percentage on the gross
salary, while some apply it on customer’s net salary. Having said that, most banks go by gross.
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percentage of the salary. In case of customer is self- employed, the difference in eligibility norms
can be glaring. Some banks strictly consider only returned income, that too an average of last two
or three years of income, to smoothen out any sharp increases in reported incomes. Some banks
will add full/half of the depreciation to calculate the base income.
Recognizing this, quite a few banks have evolved eligibility norms that workaround these
issues. Let us call these banks ‘self- employed-friendly banks’. Some of the things they might
have for calculating eligibility norms that are self-employed friendly.

are:
Considering customer’s ‘actual income’ as multiple of customer’s ‘disclosed income’.
Estimating customer’s ‘actual income as a percentage of ‘gross receipts’ and ignoring
customer’s ‘disclosed income .Clubbing the income of entities controlled by customer such
as private limited companies or partnership firms in which customer have substantial stakes
or are a partner by making such entities joint borrowers to the loan .Some banks do not
consider that part of income which forms customer’s yearly investment which is allowed as
deduction under section 80C. This amount is not considered as income. However some
banks have considered this as income if investment is by bank authority .Most foreign banks
are ‘self-employed friendly’ on the
above lines. Most banks do empower local level officials with discretionary powers to enhance loan
eligibilities based on their subjective assessment of customer’s true income.

[i] Clubbing of Incomes of Relatives

Eligibility is also calculated by clubbing the customer’s income with that of his relatives.
All banks allow clubbing of the spouse’s income to work out the loan
eligibility. In such cases, they insist on making the spouse a joint borrower (or co borrower).
The basic premise behind using pooled incomes for calculating eligibility is
that both parties will actually combine their income and pay off all expenses (including the
Business loan installment). However, banks are selective in extending this concept of
pooling of incomes to other relations. Some banks allow parents, children and brothers to
be joint borrowers.

[i] Cost of the Property

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The bank naturally wants customer to put in a contribution towards the cost of the
house so that customer has a stake in its continued maintenance. This also ensures that
if the value of the house goes down in future, the bank’s outstanding loan amount is
lower than the market value of the property. The amount the customer is expected to
put in is called ‘margin money’ or ‘down payment’. Generally bank gives loan amount
of 85% to 90% of the agreement value of the property. Even if a customer’s income is
enough to justify a higher loan, the bank will give a maximum loan based on its
margin.

 Age of the Building

The down payment can also vary depending on the age of the property. If the property is older,
the down payment requirement may be higher. Most banks have a cap on the maximum age of
the building at the end of the loan tenure. This would normally be fifty years. So if a customer
is buying a property on resale and the current age of the building is thirty-eight years, the
probability of getting a tenure higher than twelve years is very low despite the fact that the
customer may otherwise be eligible for a twenty-year loan. This reduction of tenure would
reduce the loan eligibility.

 Unaccounted Component

In some real estate transactions a portion of the cost is not accounted for in any of the
documents related to the purchase. Thankfully, this practice is on the decline especially
where the property is bought from reputed builders. No bank takes this unaccounted amount
in calculating the cost of the property while determining the loan amount eligibility.

 Resale Value

The resale value of a property is taken into consideration before the bank lends money to buy
a property. It ensures that in the unlikely event of a default, should the bank need to dispose
the property to recover its dues, the bank is well covered to the extent of the Business loan
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 provided. This is more of a problem in case of resale properties and lesser one in case of
properties purchased from reputed builders.

Independent Valuation of the Property

Every bank has practised that bank will not give a loan (or give the loan at a higher rate) when the
property is being bought from a relative. Also, the bank insists on an independent valuation of the
property and the maximum loan amounts are based on this valuation rather than on the agreement.

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Elements to Determine Cost of the Business

(a) Readymade Properties.

Agreement value for buying the property .Value of amenities provided along with the flat and
payment made separately under an amenities agreement. In most cases, the amenities agreement is
an attempt to segregate the cost of the amenities to avoid paying the high stamp duty on real estate
in India. Most banks restrict the value of the amenities to around 20 per cent of the total agreement
value of the flat .Stamp duty and registration charges to be paid on the agreement. Initial capital
expenses, such as civil work, are to be met with .Some banks will also include transfer charges
payable to a cooperative society, deposits required by electricity companies, and separate payments
for club houses.
Banks would also consider any cost incurred towards purchase of a parking space .Cost of
furnishing: In case of specific tie-up with a builder, a bank may include the cost of ready
furnishings provided along with the flat.
Typically bank will not provide loan for some of the elements of cost such as stamp duty or
registration cost. But some banks consider cost such as stamp duty or registration cost include in
cost of property.

(b) Self-Constructed Properties

Cost of the land, taken as the cost to customer or current market value, whichever is lower. Some
banks will not take the cost of the land into account if customers have bought it more than a year ago.
Cost of construction as estimated by customer’s architect and vetted by the bank, fees paid for
obtaining legal and statutory approvals, stamp duty and registration charges payable on agreement.

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  Application Form

Filling up the application form is the first step towards the Business loan. The
look of an application form may differ from bank to bank, but nearly 80 per
cent of the information they need is similar. Most of this pertains to customer’s
personal and
professional information, details of customer financial assets and liabilities and the details

of the property (if finalized) including the estimated cost and the means of financing the
same. While submitting the application form, each bank would ask for documents to
establish customer income. This will need to be backed up by proofs such as copies of
last three years’ income tax returns (alongwith copies of computation of income /
annual accounts, if any), Form 16 / Form 16A, last three months’ salary slips and
copies of the last six months’ statements of all customer active bank accounts in which
customer salary
/ business income details are reflected.Alongwith the application form and the credit
documents, banks will chargeprocessing fee. This fee varies from bank to bank, but is
usually around 1 to 2 per cent of the total loan amount.Most banks have flexible fee
structures, and it is advisable that customer negotiate hard to find out the bank’s
minimum fees though it is unlikely that a bank will agree to provide a loan without any
upfront fee at all. Some banks have zero upfront-fee loans but that advantage may be
negated as their other charges such as ‘legal charges’ and stamp duty’ are normally
higher. The bank statements are scrutinized for:

Level of Activity
In case of self-employed persons, this gives information about the extent of their business activities.

Average Bank Balance

A customer relation is to be established with the bank after scrutinizing averagebank balance
maintained in a savings bank account speaks volumes about the spending and saving habits
of any individual.

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Cheque Returns
A small charge debited by customer bank in the statement indicates that a chequeissued by
customer was returned by customer bank. Many such returns can have a negative impact on
customer loan sanction.

Cheque Bounces
Cheque deposited by customer are returned by the issuer’s bank they will bevisible in
customer bank statement and banks have specific norms as to how many such returns are
acceptable in a period of one year.

Regular Periodic Payments

The existence of periodic payments to other finance companies/banks indicates an existing liability
and customer will need to provide full details to the lender.

Customer Age
Proof of customer age, such as, license / passport / ration card / PAN card / Election Identity
Card will need to be submitted.

Identification Proof
Same as above but with customer photograph. Sometimes the same document, ifit contains a
photograph, the current residential address and the correct age can be the proof for all three
things.

Customer Employment Details

If Customer Company is not well known, then a short summary about the natureof the
company, its business lines, its main customers, its competitors, number of offices, number of
employees, its turnover and profits may be needed. Usually the company profile that is
available on the standard website of the company is enough.

Customer Investments
This helps the bank to estimate customer ability to pay for the down payment as well as
customer savings habit.
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Personal Discussion
Some banks insist on meeting customer after receiving the application form, and
before the loan sanction, together more details about customer that may not be mentioned in
the application form .If the bank calls customer for personal discussion .

Bank’s Field Investigation

Every bank validates customer information, including customer existingresidential address,
customer’s place of employment, CIBIL report, employer credentials (if customer’s work for a
small organization) and residence and office telephone numbers.This is normally done by
sending representatives to customer workplace or residence. These representatives are usually
employees of small firms to which thebank has outsourced this activity. The ability of these
personnel is uneven and the interaction with them may not always be smooth.

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Credit Appraisal and Loan Sanction

The bank establishes customer repayment capacity based on customer’s income,age,

qualification, experience, employer and nature of business (if self-employed). Based on these
parameters, customer maximum loan eligibility is worked out and the final loan amount
communicated to customer, then issues a sanction letter. This letter may either an
unconditional letter, or may have certain terms and conditions mentioned. Customer has to
fulfill these conditions before the loan is disbursed.

Offer Letter
Once the loan is sanctioned, an offer letter is sent mentioning details like loan
amount, rate of interest, whether fixed or variable rate of interest is linked to a
reference rate, tenure of the loan, mode of repayment, if the loan is under some
special scheme, the details would be mentioned, general terms and conditions of
the loan and special conditions.

Acceptance Copy of the Offer Letter

If customer accepts the offer letter the bank will ask customer to sign a duplicate letter for the
same bank’s records.

Submission of Legal Documents

Once customer selects property, the bank requires customer to hand over the entire set of’
original documents pertaining to customer property so that it can keep them as security for the
loan amount given to customer. These documents would remain in the bank’s custody until the
loan is fully repaid.

Legal Check
Every bank conducts a legal check on customer documents (including draft sale documents
that customer will be entering into with customer seller) to validate their authenticity. These
documents normally include:
The title documents of customer seller which prove the seller’s title including the chain of

31
title documents if he is not the first owner.
NOCs from the legal owners such as Cooperative Housing Societies, statutory development
authorities, or the leaser of the land in the case of leasehold land. NOCs are not required where
the property is situated on freehold land and the entire land is being transferred along with the
structure.The banks send these documents to a lawyer on their panel (either In-house or
outsourced) for a thorough scrutiny. Some banks will charge a special fee to cover these cost
while some banks will ask customer to pay these directly to the concerned lawyer though for
most banks the upfront fee covers these fees as well. The lawyer’s report either gives a go-
ahead if the documents are clear, or it may ask for a further set of documents. In the latter case,
customer are expected to handover the additional documents to the bank for a clear title.
Since property documentation in India is non-standard and non-transparent, it

helps if customer buy property from a reputed builder since the builder would know the
process inside out, and keep all the documents ready. In fact, the maximum customer service
issue arises at this stage because of a lack of standardization.

Valuation of Property

Valuation has become a key parameter in determining the loan amount that can be sanctioned
by the bank. The valuation process is quite subjective and dependent on the quality and ability
of the person sent by the bank for valuation. In many cases, the valuer determines the value of
the property at an amount that is lower than the documented cost of the property and this
would result in the loan amount being decreased since the bank funds a certain percentage of
the cost or valuation of the property whichever is lower.
Now a day, valuation of property is determined according to “Jantri Value”.

Registration of Property Documents

After the legal and technical / valuation check, the draft documents as cleared by the lawyer
need to be finalized and signed and the stamping and registration for the documents need to be
done. Also if any No Objection Certificates (NOCs) are pending these need be obtained in the
format approved by the bank’s lawyer.

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DOCUMENTATION FOR BUSINESS LOAN:-

Business Loan Scheme :

1. MSME Loan Scheme in 59 Minutes

2. Pradhan Mantri MUDRA Yojana (PMMY)
3. National Small Industries Corporation
4. Credit-Linked Capital Subsidy Scheme
5. SIDBI Loan

Loan File Documents As Follows :

New Member Form :

 Documents :
1.Aadhar Card
2.Pan Card
3.Last 3 Months Pay Slip
4.Last 6 Months Banking
5.Address Proof
6.Company I’D Card
7.Photo
 Mother Name :
 Wife Name:
 Mail ID:
 Office Mail:
 Current Address with Pincode
 Office Address With Pincode

 Refference
1) Family Name
-Mo.No
2) Office Name
-Mo.No

 Business Loan Consulting

1) Pan Card and Photos 1
2) Aadhar Card
3) Light Bill and Rent Agreements
4) Shop Act
5) Bank Statement 1 year
6) ITR 3 year

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THEORETICAL BACKGROUND

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Following Is the Operating Cycle:

TECHNICAL SANCTION

LEGAL DISBURSEMENT

FILE LOGIN

Fig No.2

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Operating Cycle of Financial Services

Operating Cycle

Login Legal. Technical.

0
 Legal Report. Technical Report.

 Search Report.

 Residence Verifications.

 Office Verification.

 Sanctions. Disbursement.

 Verification Disbursement Docket Login.

 Personal Discussion DD Process.

Fig No3

36
DATA ANALYSIS OF FINANCIAL SERVICES

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 Data Analysisi and Interpretation:-

Timestam Age Income Monthly Loan type of Loan place of got info abt Previous
p Name Group? Source Income? Requirment? loan AMT loan loan Purpose
Any Previous
CHILKEWAR Above 30,000 to Business 10 to 25 Customer from the Renovation of
21/05/2019 KRISHNA NAGESH 45 Years Businessman 45,000 Yes Loan lakh company No Business

RAJEBHAU MAROTI Above Above Business 25 to 40 Business

23/05/2019 MAGAR 45 Years Employed 45,000 Yes Loan lakh Friends/Relatives No Conversion
Any Previous
RAMESHWAR Above 30,000 to Mortgage 10 to 25 Customer from the Renovation of
26/05/2019 SITARAMJI MOGAL 45 Years FARMAR 45,000 Yes Loan lakh company Yes Business
RADHESHYAM Land
DINKARRAO Above 15,000 to Mortgage 10 to 25 Purchase of
28/05/2019 HAMINE 45 Years FARMAR 30,000 No Loan lakh Friends/Relatives No Loan

Vijaykumar Sudhirrao 22-25 Below Business 10 to 25 Construction

02/06/2019 Dange Years Employed 15,000 No Loan lakh Newspaper No of Business

Above 15,000 to Business 0 to 10 Agent of the Purchase of

03/06/2019 Jadhav shivaji kondiba 45 Years Employed 30,000 Yes Loan lakh Company No Business
Land
Achut digambar 35-45 30,000 to Business 25 to 40 Purchase of
08/06/2019 shelake Years Businessman 45,000 Yes Loan lakh Newspaper No Loan

35-45 30,000 to Business 10 to 25 Business

10/06/2019 Bharat haribhau paul Years Employed 45,000 Yes Loan lakh Friends/Relatives No Conversion
Any Previous
Above 30,000 to Mortgage 25 to 40 Customer from the Renovation of
12/06/2019 Bhagwan zute 45 Years Employed 45,000 Yes Loan lakh company No Business

22-25 Above Business 0 to 10 Renovation of

15/06/2019 Akshay Shikhare Years Businessman 45,000 No Loan lakh Friends/Relatives Yes Business

35-45 30,000 to Business 10 to 25 Agent of the Construction

19/06/2019 Anil Todkar Years Employed 45,000 Yes Loan lakh Company No of Business

22-25 15,000 to Mortgage 0 to 10 Business

22/06/2019 Years Employed 30,000 No Loan lakh Friends/Relatives No Conversion

35-45 Below Business 0 to 10 Construction

23/06/2019 PRAFUL GHEWARE Years Businessman 15,000 Yes Loan lakh Friends/Relatives Yes of Business
Any Previous Land
DATTARAO Above 15,000 to Mortgage 0 to 10 Customer from the Purchase of
27/06/2019 GHORSAD 45 Years FARMAR 30,000 Yes Loan lakh company Yes Loan

SATYANARAYN Above Government 30,000 to Business 10 to 25 Purchase of

28/06/2019 PINDAKURWAR 45 Years Employee 45,000 Yes Loan lakh Friends/Relatives No Business
Any Previous
35-45 15,000 to Business 0 to 10 Customer from the Construction
01/07/2019 SANTOSH SAHANE Years Businessman 30,000 Yes Loan lakh company No of Business
Land
DILIPRAO 35-45 15,000 to Business 0 to 10 Purchase of
03/07/2019 SHEWALE Years FARMAR 30,000 Yes Loan lakh Friends/Relatives No Loan

35-45 15,000 to Mortgage 0 to 10 Purchase of

03/07/2019 SHRIRANG KASHTE Years FARMAR 30,000 Yes Loan lakh Friends/Relatives No Business

ASHOKRAO Above 15,000 to Mortgage 25 to 40 Renovation of

05/07/2019 GHANDGE 45 Years Businessman 30,000 Yes Loan lakh Friends/Relatives No Business

ASHOKRAO 35-45 30,000 to Business Above Agent of the Construction

09/07/2019 KOLHAL Years Businessman 45,000 Yes Loan 40 Lakh Company No of Business
Land
DURGAPRASAD 35-45 Above Business Above Agent of the Purchase of
15/07/2019 JADHAV Years Businessman 45,000 Yes Loan 40 Lakh Company No Loan

25-35 15,000 to Mortgage 25 to 40 Purchase of

19/07/2019 ATUL RIKIBE Years Employed 30,000 Yes Loan lakh Friends/Relatives No Business

38
 Table No.1 Types of Business Loan
Following Table Showes the taking Business/mortgage Loan

Purpose of Business Loan No. of Borrowers Persantage

Purchase of Business 5 23.8%

Construction of Business 12 57.1%

Renovation of Business 1 4.8%

Land Purchase of Loan 3 14.3%

Graph no .1 Purpose of Business Loan

The following graph shows purpose of taking Business/Mortgage loan.

Graph.No.1

Interpretion:
Above table shows that 23.8% customers are taking Business loan for the purpose of purchase of
Business.57.1% customers are taking Business loan for the purpose of construction of Business.
4.8% customers are taking Business loan for the purpose of Renovation or up gradation of
Business.14.3% customers are taking Business loan for the purpose of the land purchase of loan.

39
Table no.2 Types of Loan:-

Type of Loan Loan Preference Persantage

BUSINESS LOAN 11 52%

MORTGAGE LOAN 10 48%
TOTAL 100%

Graph No.2

The Graph Showing types of Loan.

Interpretation:

Above Table show that type of loan .52% customer are interested to taking Business loan
and48% customer interestedto take mortgage loan.

40
 Table No.3 Types of Income Source of Customer

Sr No Particulers No of Percentage
respondent
1 Business 8 33.3%
2 Farmer 6 28.6%
4 Employed 7 38.1%
Total 21 100%

Graph No 3 The graph showing the occupation of borrowers.

Interpretation:

The above table shows the count of a income source of customer. A Borrowers who is from
framar they are 28.6%. Than A Borrowers are businessman they are 33.3%. Than 38.1%
Employed prefer to take loan from financial services(Banks).

41
Table No.4 Monthly Income of borrowers

SR,NO Particulars No of respodants Percantage

1 Below 15000 0 0

2 15000-30000 9 42.9%

3 30000-45000 8 38.1%

4 Above45000 4 19%

Total 21 100%

Graph No.4 The Graph Showing Monthly income of Borrowers

Interpretation:

Above table shows that monthly income of borrowers.19% of borrowers having monthly
income above 45000.Then borrowers whose income level from 15000-30000 they
are 42.9% and 38.1 %borrower’ sin come level 30000-45000.

42
 Table no. 5 COUNT OF AMT OF LOAN BORROWERS NEED

Sr .No Particular No .of Percenta

s Responde ge
nt
1 0-05Lack 2 9.5%
2 05-10 13 61.9%
Lack
3 10-15 4 19%
Lack
4 15-20 2 9.5%
Lack
Total 21

Graph No.5 The Graph showing the how much loan Borrower need.

Interpretation:

Above table shows that the 2 Borrowers need the 0-05 lack loan AMT. Than 13 Borrowers are
need a05-10 lack loan AMT.4 Borrowers are need a 10-15 Lack loan AMT .Than the 2
Borrowers need the 15-20 lack AMT loan.

43
Table no.6 Count of Borrowers having Requirement of Business/Mortgage Loan

SR.NO Particulars No of
Respondent

1 YES 20

2 NO 1
TOTAL 21

Graph No.6 The Graph showing the Loan Requirement of borrowers

Interpretation:

The above tables shows that the requirement of a Business loan there is a 20 Customers are
interested to taking a Business loan. And remaining 1 is not interested to taking Business
loan.

44
7) Following Table Showing The Count of how many Borrowers having Previous loan
or EMI

SR.NO COUNT Respondent

1 YES 20

2 NO 1

Graph.No.7 Following Graph Showing The Cont Of Borrowes Having Previous Loan.

Interpritation:-

Above table show the 20 Borrowers are not having any type of Loan and not paying any EMI
. but the remaining 1 Borrowers are having loan or paying a EMI.

45
8)Following Table Showing where the Borrower got the information regarding loan.

SR.NO PLACE Respondant

1 PREVIOUS CUSTOMER 15

2 FRIENDS/RELATIVES 6

Graph.No.8 Following Graph showing the Borrowers got the information reagarding loan.

Interpretation:-

15 Borrowers are got the information from the previous custmors.6 Borrowers are got the
information from the friends or relative

46
9)Following Table Showing the Age group of a Borrowers

SR.NO AGE PERCENT

GROUP AGE
22-25 Year
1 4.8%
25-35year
2 9.5%
35-45 year
3 42.9%
Above
4 45year 42.9%

Graph.No.9 following graph showing the age group of Borrowers.

Interpretation:

Above table shows that 9.5% Borrowers Are in the age group 25-35years.4.8 % Borrowers are
comes in the age group of 22-25 years.42.9% Borrowers are comes in under the age group of
35- 45 years. & Also 42.9% Borrowers are comes in the age group of above 45 year.

47
FINDINGS

48
 INTRODUCTION

The present chapter contains findings, suggestions conclusion related to study. Research study
focus on the Business loan disbursement by the Eagle Loan Services and the satisfaction of
borrowers and borrowers. I observed findings at the time of field work. And go opinions of
borrowers regarding Business loan sanctioning procedure and problem faced by them.
Following pointy comprises and solution according to me to overcome the satisfaction level
of borrower and problems of firm also. It help some extent it firm for improving their
business.

FINDINGS:

1) In this firm 42% customers are taking Business loan for the purpose of purchase of
Business loan.
2)Existing borrowers mostly prefer Business loan from firm.
3) In this firm borrowed Business loan amount from Rs 5 to 10 lacks.
4) Most borrowers Business loan amount sanction within 1 to 3 weeks after submitting document
to the firm.

49
SUGGESTIONS

50
There are following suggestions related to findings.

1)Respective personnel should be trained to overcome the difficiency in regard to increase

productivity of employees The bank organize more training program and workshop to make
the employee more efficient in their sector.

2)Proposal requiring sanction from controlling authority is unduly delayed.

Sanction loan should be faster and timely.
3)The Firm should focus on procedure disbursement of Business loan to decrease delay.
4) Firm should increase their corporate social responsibility.

51
CONCLUSION

52
Business loans are no doubt invaluable tools that empower entrepreneurs to realize their
dreams and contribute to economic progress. So, by understanding all about business loans in
details is very essential for businesses who are aiming for sustainable growth. However, this
helps the businesses to take strategic decisions which will benefit them in long-run.

53
CONTRIBUTION TO HOST ORGANIZATION

54
1. Giving information to customer about Business loan disbursement.

2. Proposal drafting for customer’s enquiry about Business loan schemes.

3. To provide information about Eligibility criteria to the customer.

4. During my course of project, I come across many operation of EAGLE LOAN

SERVICES, the staff of the organization helped me to understand many things.

55
LEARNING

56
 Understanding about Business loan documentation process.

 Learned Legal requirements in Business approval.

 Learned about eligibility criteria for Business loan.

57
 BIBLOGRAPHY

WEB:-
1) WWW.RBI.GOV.IN
2) WWW.BANKBAZAR.IN
3) WWW.EAGLELOANSERVIECES.COM

58
ANNEXURE

59
 Questionnaires:

1. Name.

2. ...............................................
................................................................................... Age Yrs

1) 22-25 YEAR
2) 25-35 YEAR
3) 35-45 YEAR
4) Above 45 YEAR

3. Income source

1) Employed
2) Businessman
3) Farmar
4) Other

4. Monthly income -

a) below 15000

b) 15000-30000

c) 30000-45000

d) Above45000

5. Do you have any Business loan Requirement?

a) YES

b) NO

6. What kind of Loan Do you Require?

a) Business Loan

60
b) Mortgage Loan

61
7. How Much Business loan or Mortgage loan do you need?

a) 0-05 lakh

b) 05-10 lakh

c) 10-15 lakh

d) 15-20 lakh

8. where did you got the information Business or mortgage scheme?

a) News paper

b) Margzines

c) Any customer from the company

d) Friends and relatives

E) Agent of the company

9. Do you have any previous Business Loan or Do you pay EMI?

a) YES

b) NO

62
67