PROJECT REPORT

On

A STUDY ON LOANS AND ADVANCES AT

KOTAK MAHINDRA BANK

BY

SANTHOSH M

1NZ19MBA38

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES NEW

HORIZON COLLEGE OF ENGINEERING, OUTER

RING ROAD, MARATHALLI,

BENGALURU

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Prof. Dr. Sainath A R

Assisstant Professor

2019 - 2021
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 CERTIFICATE
This is to certify that SANTHOSH M bearing USN 1NZ19MBA38, is a bonafide student of
Master of Business Administration course of the Institute 2019-21, autonomous program,
affiliated to Visvesvaraya Technological University, Belgaum. The project report on “A
STUDY ON LOANS AND ADVANCES AT KOTAK MAHINDRA BANK ” is prepared by
his under the guidance of Prof. Dr.SAINATH A R , in partial fulfilment of requirements for
the award of the degree of Master of Business Administration of Visvesvaraya Technological
University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of principal

Name of the Examiners with affiliation Signature with date

1. External Examiner

2. Internal Examiner

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 DECLARATION

I, SANTHOSH M hereby declare that the project report on “A STUDY ON LOANS AND
ADVANCES AT KOTAK MAHINDRA BANK” with reference to “ KOTAK MAHINDRA BANK
” prepared by me under the guidance of Prof.Dr. SAINATH A R , faculty of M.B.A Department, New
Horizon College of Engineering.

I also declare that this project report is towards the partial fulfilment of the university
regulations for the award of the degree of Master of Business Administration by Visvesvaraya
Technological University, Belgaum.

I have undergone an industry project for a period of Twelve weeks. I further declare that this
report is based on the original study undertaken by me and has not been submitted for the award
of a degree/diploma from any other University / Institution.

Signature of Student
Place:
Date:

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 ACKNOWLEDGEMENT

The successful completion of the project would not have been possible without
the guidance and support of many people. I express my sincere gratitude to
Prof.Dr.SAINATH A R , ASSISSTANT PROFESSOR NEW HORIZON
COLLEGE OF ENGINEERING , for allowing to do my project at KOTAK
MAHINDRA BANK .

I thank the staff of KOTAK MAHINDRA BANK . for their support and
guidance and helping me in completion of the report.

I am thankful to my internal guide Prof.Dr. SAINATH A R , for his/her constant

support and inspiration throughout the project and invaluable suggestions,
guidance and also for providing valuable information.

Finally, I express my gratitude towards my parents and family for their

continuous support during the study.

SANTHOSH M
1NZ19MBA38

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 TABLE OF CONTENTS

SL. NUMBER CONTENTS PAGE NUMBERS

1 Executive summary 1-1

Chapter 1- Theoretical Background of The

2 2-22
Study

3 Chapter 2- Industry Profile & 23-44

Company Profile

4 Chapter 3- Research Methodology 45-52

5 Chapter 4- Data Analysis and Interpretation 53-72

6 Chapter 5 - Summary of Findings,

Suggestion and Conclusion 73-81

7 Bibliography 92-93

8 Annexure 93-94

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 EXECUTIVE iSUMMARY

I ihave itaken iFinance ias ia ispecialization iwith ithe ititle iof i“A iSTUDY iOF iLOANS iAND
iADVANCES iOFFERED iIN ikotak iMahindra ibank i“The iobjective ibehind ithis iproject iwas ito

iprimarily ifocus ion iloans iadvances ioffered iin ikotak i ifor ithe iconsumers. iThis irequired ia ifirsthand

iexperience iin iunderstanding iend ito iend iprocess iflow ifor iloans iprocessing ito ipayment idisbursement.

iAlso iI idiscuss iabout ithe ikotak iEMI iloans, ithe ikotak i iLending iCompany iwhich iis ione iof ithe

ilending icompany ithey ialso imake iavailable iEMI iLoan ioption ifor ithe iloan. iI ihave icollected ithe

iSecondary idata ifrom iBooks, iCompany iAnnual iReport i& iinternet iArticles ietc. ikotak iLtd iis ione iof

ithe ileading iloans iissuing icompany iin ithe iIndia.

i i i i i i iI ialso ifocused ion ithe isurrogates irequired ifor iloan iapproval, iwhich idocuments iare inecessary

ifor iapproval iof iloan. iSWOT ianalysis iof iCompany. iI ihave ialso itried ito iexplain ithe iloan iprocedure

iThrough ithis iproject, iI ilearn ihow ito igiven ia iloan ion iconsumer idurable iproduct iand ihow ito isolve

icustomer idifficulties iabout ithe idocumentation. iI iwas idealing iwith iproper icustomer, iprovided ithem

iloans iby icompleting itheir ifiles iand igetting ithe iapproval ionline iform iKotak iFinance iLimited

iwebsite. iThis iprocess ihelped ime ito ibetter iunderstand ithe iLoan iprocedure iof iLoans iand iAdvances

iat iKotak iFinserv iLending.

i i i iThe imajor ipart iof imy iproject iincludes ithe iloans iissue iprocess, iEligibility icriteria, iInterest irates,

iand iprocessing icharges. iFinancial istatements iand iLoans ilending istatement ianalysis iin idifferent

isectors. iDifferent ianalytical itools iused ito ianalyze iand ithe icalculation iof iEMI ietc.

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 CHAPTER i- iI

THEORETICAL IBACKGROUND iOF iTHE iSTUDY

INTRODUCTION:-
iiiiiiiiiii

Lending iis ione iof ithe imost iimportant ifunctions iof ibanks. iIt iis ione iof ithe ioldest ifunctions iof ia ibank ijust
inext ito ithe ifunction iof iaccepting ideposits. iActually, iboth iaccepting ideposits iand iadvancing iloans iare

iknown ias ithe imain ifunctions iof ithe ibank. iAccepting ideposits iis ito icreate iloan iable ifunds ito iborrowers.

iTherefore, ithey iare isupportive ifunctions iof ia ibank. iThe ibank icreates iloans ion ifunds iit iaccepts ifrom ithe

ipublic iin ia iform iof ideposits. iHence, ithe ibank iis ilending, iin ipractice, inot ihis iown imoney, ibut ithe ipublic

imoney. iTherefore, ithe ibank ishould itake ithe inecessary iprecautions iwhile ilending imoney iso ias ito iinsure ithe

irepayment iof ionce iadvanced imoney. iOtherwise, iit iwill ibe iclosed iif ithe iloan iis inot icollected iand imoney iis

inot iavailable iat ihis ipossession ito ihonor icheques iissued iby icustomers. iIn iorder ito iavoid ithis iproblem ibanks

idevelop iloan ipolicies. iThis ienables

Meaning iof iLoans iand iAdvances:-

i i i i i i i i i i iThe iterm i‘loan’ irefers ito ithe iamount iborrowed iby ione iperson ifrom ianother. iThe iamount

iis iin ithe inature iof iloan iand irefers ito ithe isum ipaid ito ithe iborrower. iThus iFrom ithe iview ipoint iof

iborrower, iit iis i‘borrowing’ iand ifrom ithe iview ipoint iof ibank, iit iis i‘lending’. iLoan imay ibe iregarded

ias i‘credit’ igranted iwhere ithe imoney iis idisbursed iand iits irecovery iis imade ion ia ilater idate. iIt iis ia

idebt ifor ithe iborrower. iWhile igranting iloans, icredit iis igiven ifor ia idefinite ipurpose iand ifor ia

ipredetermined iperiod. iInterest iis icharged ion ithe iloan iat iagreed irate iand iintervals iof ipayment.

i‘Advance’ ion ithe iother ihand, iis ia i‘credit ifacility’ igranted iby ithe ibank. iBanks igrant iadvances

ilargely ifor ishort-term ipurposes, isuch ias ipurchase iof igoods itraded iin iand imeeting iother ishort-term

itrading iliabilities. iThere iis ia isense iof idebt iin iloan, iwhereas ian iadvance iis ia ifacility ibeing iavailed

iof iby ithe iborrower. iHowever, ilike iloans, iadvances iare ialso ito ibe irepaid. iThus ia icredit ifacility-

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irepayable iin iinstallments iover ia iperiod iis itermed ias iloan iwhile ia icredit ifacility irepayable iwithin

ione iyear imay ibe iknown ias iadvances. i

Meaning iof iLoan:-

i i i i i i i i i iThe iamount ilent iby ithe ilender ito ithe iborrower ifor ia ispecific ipurpose ilike ithe iconstruction

iof ithe ibuilding, icapital irequirements iand ipurchase iof imachinery iand iso ion, ifor ia iparticular iperiod

iof itime iis iknown ias iLoan. iIn igeneral, iloans iare igranted iby ithe ibanks iand ifinancial iinstitutions. iIt

iis ian iobligation iwhich ineeds ito ibe irepaid iback iafter ithe iexpiry iof ithe istipulated iperiod.

i i i i i i i i iThe iloan icarries ian iinterest irate ion ithe idebt iadvanced. iBefore iadvancing iloans, ithe ilending

iinstitution ichecks ithe icredit ireport iof ithe icustomer, ito iknow iabout ihis icredibility, ifinancial iposition

iand icapacity ito ipay.

Definition:-
iiiiiii

i i i i i i i i i i iAccording ito iThembi iPalane i“a iloan iis ia ifinancial itransaction iin iwhich ione iparty i(the

ilender) iagrees ito igive ianother iparty i(the iborrower) ia icertain iamount iof imoney iwith ithe itotal

iexpectation iof irepayment iagreed iupon iby iboth iparties. iUsually ithere’s ia ipredetermined itime ifor

irepaying ia iloan iwith iconditions iattached ito iit”

i i i i i i i i iAccording ito ioxford idictionary i“Money ithat isomeone iborrow ifrom ia ibank ior iother ifinancial

iorganization ifor ia iperiod iof itime iduring iwhich ithey ipay iinterest” i

Loan iis iclassified iin ithe ifollowing icategories:-

➢ Unsecured ipersonal iloans

➢ Secured ipersonal iloans
➢ Payday iloans
➢ Title iloans

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 ➢ Pawn ishop iloans
➢ Payday ialternative iloans
➢ Home iequity iloans
➢ Credit icard icash iadvances

Definition iof iAdvances:-

i i i i i i i iAdvances iare ithe isource iof ifinance, iwhich iis iprovided iby ithe ibanks ito ithe icompanies ito

imeet ithe ishort-term ifinancial irequirement. iIt iis ia icredit ifacility iwhich ishould ibe irepaid iwithin ione

iyear ias iper ithe iterms, iconditions iand inorms iissued iby iReserve iBank iof iIndia ifor ilending iand ialso

iby ithe ischemes iof ithe iconcerned ibank. i

Definition:-

i i i i i i i i i i i iAccording ito ithe ioxford idictionary iAdvance imeans i“an iamount iof imoney ipaid ibefore iit

iis idue ior ifor iwork ionly ipartly icompleted”

They iare igranted iagainst isecurities iwhich iare ias iunder:

❖ Primary iSecurity: iHypothecation iof iDebtors, iStock iPro-notes, ietc.

❖ Collateral iSecurity: iMortgage iof iland iand ibuildings, imachinery, ietc.

❖ Guarantees: iGuarantees igiven iby ipartners, idirectors ior ipromoters, ietc.

The ifollowing iare ithe iforms iof iAdvances:-

❖ Short iterm iloans: iAdvance iin iwhich ithe ientire iamount iis iprovided ito ithe iborrower iat ione
itime.

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 ❖ Overdraft: iA ifacility iprovided iby ithe ibank iin iwhich ithe icustomer ican ioverdraw imoney
ifrom ihis iaccount iup ito ia ispecified ilimit.

❖ Cash iCredit: iA ifacility igranted iby ithe ibank iin iwhich ithe icustomer ican iadvance imoney iup
ito ia icertain ilimit iagainst ithe iasset ipledged.

❖ Bills iPurchased: iAn iadvance ifacility iprovided iby ithe ibank iagainst ithe isecurity iof ibills.

The iAdvantages iand iDisadvantages iof iLoan:-

i i i i i i i i i iLoan iis ia iform iof idebt, ioften iwith iinterest. iThere iare iseveral ireasons iwhy ipeople iapply ifor

iloans. iUsually ithey iborrow imoney ito ipurchase ia ihouse, ibuy ia icar, ior istart ia ibusiness. iOften,

iapplying ifor ia iloan iis inecessary ibecause imost ido inot ihave iavailable ifinancial iresources ithey ineed

ito imake ia ipurchase. iOther iforms iof iloans, ilike ithe istudent iloans ihave ihelped ia ilot iof istudents iget

ithrough ischool. iThose iwho iuse istudent iloan idebt iconsolidation iclearly ihave imultiple istudent iloans.

iThey ido ithis ito imanage itheir iobligations ibetter.

i i i i i i i i i i iSince iloan iis iborrowed, ithe ilender iexpects ito ireceive ipayment iwith ithe iinterest ispecified.

iIn iaddition, iborrowers ishould imake ithe ipayments iat ithe ispecified idue idate ifor ia icertain iperiod.

iThis iis iwhere imost ipeople ihave iproblems. iMost iproblems istart iwhen ipeople icannot imake ithe

imonthly ipayments irequired idue ito idifferent icircumstance. iSome ifinds iit idifficult ito ipay itheir iloan

ibecause iof ithe imany iother idebts ithey ihave. iSome iencounter iadditional iproblems isuch ias imedical

iemergencies iand ijob iloss.

i i i i i i i i i i i i iSince igetting ia iloan iis ia icommitment, iyou ihave ito ibe ivery icareful iwith iyour idecisions.

iChoose ithe iright ilender. iThere iis imore ito ipicking ia ilender ithan ijust ilooking ifor ione iwith ithe ileast

iinterest. iKeep iin imind ithat ithose iwith ilow iinterest irequire ilonger iperiod. iRemember, iwhen

ichoosing ia ilender, icheck iits istability, iits iflexibility, irepayment ischemes, iand iinterest irates.

Before iyou idecide ito iget ia iloan, iit iis ionly iright ithat iyou ireview iits iadvantages iand idisadvantages.

Advantages:-

Below iare ithe iadvantages iof igetting ia iloan. iThese iare ialso ithe ireasons iwhy imany iapply ifor iit:

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✓ There iis ia iloan ifor ijust iabout ianything. iIf iyou iare iin ineed iof imoney ito ipurchase ia ihouse, iyou
ican iapply ifor ia ihousing iloan. iIf iyou ineed ia icar, iyou ican iapply ifor ia icar iloan. iWith iall ithe

iloans iavailable, iyou iwill ibe iable ito ipurchase ieverything iyou ineed.

✓ It ihelps ia iperson iafford ian iexpensive ipurchase. iAll iof ius iwish ito iacquire ia iproperty. iHowever,
iwe ido inot ihave ithe iamount iof imoney ito imake ithe ipurchase. iLoans iallow ius ito ido ithis. iThey

ilend ius ithe imoney iso ithat iwe ican ifinally iafford iour idesired iproperty.

✓ Payment iis istaggered, iwhich imakes iit iaffordable. iThis ienables ithe iperson ito ipay ioff ithe iloan
igradually. iIf ia iperson ihas ichosen ia igood ideal, ihe ishould ibe iable ito ifinish ipaying ioff ithe iloan

iin ithe itime ispecified.

✓ One igets ithe ifunding ihe ineeds. iIf ia iperson iwants ito istart ia ibusiness, ihe ican ido iso iby iapplying
ifor ia ibusiness iloan. iHe idoes inot ihave ito iwait ifor ihis isavings ito ibuild iup ibefore ihe ican istart

ihis iown ibusiness. iThey ican ialso iuse ithe iamount ithey iloan ifor iinvestment ipurposes.

✓ Getting ia iloan iis ivery ihelpful ito istart ibuilding iyour idream. iHowever, iyou ihave ito ibe ivery
icareful iwith iyour idecisions. iThis iis ibecause iof ithe iproblems iyou iwill ipossibly iencounter iif

iyou imismanage iyour iloans iand iother idebts. iIf iyou ihave imultiple iloans, imake isure ito imanage

iit iwell. iUse ia idebt iconsolidation iloan icalculator iand icheck iif iit iis ibetter ito iconsolidate iall iyour

iloans. iMake isure ithat iyou imanage iyour iloans ifrom ithe istart. iKeep iin imind ithat iloans ihave

idisadvantages itoo.

Disadvantages:-

Here iare isome iof ithe idisadvantages iof ihaving iloans:

✓ is ia ilong-term idebt. iThis imeans ithat iyou ihave ito ideal iwith iit ifor ia ispecified iperiod, iwhich
imeans ithat iyou ihave ito icommit iyourself ito imaking imonthly ipayments ispecified iin iyour

iagreement ifor ithe iperiod iindicated ito irepay ithe iloans.

✓ If iyou imiss ipayments, iyou iwill iface iserious iconsequences. iYou ican iface iforeclosure ior
irepossession iof ithe iproperty. iIn iaddition, iyou icould ialso iface ipenalties iand ilegal iissues. iIt iwill

ialso ireflect iin iyour icredit irating, iwhich ican ilead ito ia ilow icredit iscores.

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 ✓ You imay inot ibe iable ito imake iearly iloan irepayment. iFew ilenders igive ioption ifor iearly
irepayment. iAlthough ithere iare isome iwho iwill iallow iyou ito ido ithis, ithey iwill icharge iyou iwith

iearly irepayment ifees.

✓ Loans iare ivery ihelpful. iHowever, iyou ihave ito imanage ithem iwell ibecause iyou ican iget iinto ia
ilot iof itrouble iif iyou ifail ito imake ithe iexpected ipayments.

iAdvantages iand idisadvantages iof iCash iAdvances:-

At isome itime ior ianother iyou iwill ihave ito iuse isome isort iof icash iadvance isystem, iespecially iif iyou
idon’t ihave iany icredit icards ior iknow isomeone iyou ican iborrow imoney ifrom. iWhile iit imay ibe

ialright ito iuse icash iadvances ievery iso ioften, ibecoming idependant ion ithem ito ihelp iyou ipay ibills

ievery imonth iis inot. iCash iadvances ican ibe iextremely iexpensive ibecause iyou iare icharged ia ifee iin

iaddition ito ithe imoney iyou iare iborrowing. iOvertime, ithese imonthly ifees icould ibe iused ito imake ia

idown ipayment ion ia ihouse ior icar. iThis iis iwhy iit iis iimportant ito ilearn ithe iproper iways ito iuse ithis

itype iof iloan iservice iand ito ieducate iyou iabout ithe iadvantages iand idisadvantages iof icash iadvances.

Advantages iof iCash iAdvances:-

✓ Pay ibills ion itime iand iavoid idisruption iof iservices. iSome ipeople iconsider ihaving irunning iwater,
iand/or ielectricity imore iof ia ipriority ithan ibeing icharged ia iservice ifee ifor iobtaining ia icash

iadvance.

✓ Avoid ilate ifees ior ipenalties. iOftentimes, icash iadvance ifees iare iless iexpensive ithan ithe ilate ifees
ior ipenalties iput iinto ieffect iby ithe icredit icard icompanies ior iother ilenders.

✓ Most ibusinesses ithat ioffer icash iadvance iservices ido inot irequire ian iin idepth icredit icheck;
itherefore ipeople iwith ibad icredit iare imore ilikely ito iget iapproved ifor icash iadvances.

✓ You iare icharged ia ionetime ifee ifor iborrowing ithe imoney. iAnd iyou ihave ia ispecific iamount iof
itime ito ipay iback ithe icash iadvance, iotherwise iadditional ifees iwill iapply.

Disadvantages iof iCash iAdvances:-

✓ You iare icharged ia ifee ibased ion ithe iamount iof imoney iyou iborrow ior ibased ion ithe ipercentage
iof imoney iyou iborrow.

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✓ Overtime, icash iadvance ifees ican iadd iup ito iquite ia ibit iof imoney. iIf iyou itake iout ia icash
iadvance ievery isingle imonth ifor ia iyear iand ithe ifee iis i$15 ieach imonth; ithat iis i$180 ithat iyou

iare ithrowing iaway. iSo iyou imay iwant ito isee iif ithere iis iany iway iyou ican isave ia ilittle ibit iat ia

itime ito ipay iyour ibills ievery imonth.

✓ If iyou idon’t ihave ithe imoney iin iyour iaccount ito ipay iback ithe icash iadvance, iyou iwill ibe
icharged ian iadditional ifee iby ithe ilender.

✓ If iyou idon’t ihave isufficient ifunds iin iyour ichecking iaccount, iyou iwill ihave ito ipay ithe ifee
iassociated iwith iinsufficient ifunds iput iinto ieffect iby iyour ifinancial iinstitution iwhen iyour icheck

ibounces.

✓ As iyou ican isee ithere iare imany iadvantages iand idisadvantages iof icash iadvances. iTo ifind iout iif
ia icash iadvance iis ithe iright isolution ifor iyour icurrent ifinancial isituation, iyou ishould ifirst iweigh

ithe ipros iand icons ibefore iyou isign ion ithe idotted iline. iWhile icash iadvances imay ibe ione iof ithe

ieasiest iways ito iobtain icash iwhen iyou ihave ibad icredit ior ino icredit ihistory, ithey ishould ibe iused

isparingly iand iwith icaution. iMake isure ito iread iall ithe irules iand istipulations iassociated iwith ithe

icash iadvance iloan ibefore imaking ian iagreement ito ipay iit iback. iBy ifollowing ithese icash

iadvance itips, iyou iwill iknow iwhen iyou ishould iuse ithis itype iof iloan iand iwhen iyou ishould

iconsider iother iavailable ioptions.

Note:- i i i iCash iadvances iare inot ientirely ibad iand inot ientirely igood. iHowever, ithey ido imake iit

ipossible ifor isome ipeople ito imake iends imeet iwhen itimes iare itough. iLearn isome iof ithe iadvantages

iand idisadvantages iof iusing icash iadvances iand iwhen iyou ishould iconsider iusing ithem ito ihelp ipay

ibills.

Utility iof iLoans iand iAdvances:-

i i i i i i i i iLoans iand iadvances igranted iby ibanks iand iother ifinancial iinstitutions iare ihighly ibeneficial

ito iindividuals, ifirms, icompanies iand iindustrial iconcerns. iThe igrowth iand idiversification iof ibusiness

iactivities iare ieffected ito ia ilarge iextent ithrough ibank ifinancing. iLoans iand iadvances igranted iby

ibanks ihelp iin imeeting ishort-term iand ilong iterm ifinancial ineeds iof ibusiness ienterprises. iWe ican

idiscuss ithe irole iplayed iby ibanks iin ithe ibusiness iworld iby iway iof iloans iand iadvances ias ifollows:-

✓ Loans iand iadvances ican ibe iarranged ifrom ibanks iin ikeeping iwith ithe iflexibility iin ibusiness
ioperations. iTraders imay iborrow imoney ifor iday ito iday ifinancial ineeds iavailing iof ithe ifacility

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 iof icash icredit, ibank ioverdraft iand idiscounting iof ibills. iThe iamount iraised ias iloan imay ibe

irepaid iwithin ia ishort iperiod ito isuit ithe iconvenience iof ithe iborrower. iThus ibusiness imay ibe

irun iefficiently iwith iborrowed ifunds ifrom ibanks ifor ifinancing iits iworking icapital irequirements.

✓ Loans iand iadvances iare iutilized ifor imaking ipayment iof icurrent iliabilities, iwage iand isalaries iof
iemployees, iand ialso ithe itax iliability iof ibusiness.

✓ Loans iand iadvances ifrom ibanks iare ifound ito ibe i‘economical’ ifor itraders iand ibusinessmen,
ibecause ibanks icharge ia ireasonable irate iof iinterest ion isuch iloans/advances. iFor iloans ifrom

imoney ilenders, ithe irate iof iinterest icharged iis ivery ihigh. iThe iinterest icharged iby icommercial

ibanks iis iregulated iby ithe iReserve iBank iof iIndia.

✓ Banks igenerally ido inot iinterfere iwith ithe iuse, imanagement iand icontrol iof ithe iborrowed
imoney. iBut iit itakes icare ito iensure ithat ithe imoney ilent iis iused ionly ifor ibusiness ipurposes.

✓ Bank iloans iand iadvances iare ifound ito ibe iconvenient ias ifar ias iits irepayment iis iconcerned. iThis
ifacilitates iplanning ifor ifuture iand itimely irepayment iof iloans. iOtherwise ibusiness iactivities

iwould ihave icome ito ia ihalt.

✓ Loans iand iadvances iby ibanks igenerally icarry ielement iof isecrecy iwith iit. iBanks iare iduty-bound
ito imaintain isecrecy iof itheir itransactions iwith ithe icustomers. iThis ienhances ipeople’s ifaith iin

ithe ibanking isystem.

Objectives iof iLoans iand iAdvances:-

General iObjective:

The igeneral iobjective iof ithe istudy iis ito ifigure iout ithe iLoan iand iAdvances iof iKOTAK
iMAHINDRA iBANK.

Specific iobjectives iare:

1. iTo ihave iidea iregarding ivarious itypes iof iLoan iand iAdvances iof iKOTAK iMAHINDRA iBANK.

2. iTo iidentify ithe iloan isanction iprocedure iin idifferent isectors iin ilast isome iyears.

3. iTo iidentify ithe icredit iapproval, itheir isecurities iand imonitoring iprocess iof iKOTAK iMAHINDRA
iBANK

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 4. iTo iknow ithe iloan iand iadvances iactivities iof iKOTAK iMAHINDRA iBANK.

5. iTo iidentify ithe irecovery irates iof ithe iloans iin idifferent isectors iin ilast isome iyears iand ihave ia
icomparison iamong ithem.

6. iTo iidentify ithe iproblems iregarding iloan iand iadvances iand igive isome irecommendations ifor
iimproving ithe ieffectiveness iand iefficiency iof iLoan iand iAdvances iservices.

Types iof iloans:-

• Highlights

• Loans ican ibe iclassified ibasis icollateral irequirements iand iusage

• Secured iloans ivary ibased ion ithe iasset iused ias icollateral

• Personal iloans iare ithe imost ipopular iform iof iunsecured iloans

• Avail iinstant ifinancing iwith ipre-approved iloan ioffers

A iloan iis iessentially imoney iborrowed iwith ia ipromise iof ireturn iwithin ia ispecific itime iperiod/tenor.
iThe ilender idecides ia ifixed irate iof iinterest ithat iyou imust ipay ion ithe imoney iyou iborrow, ialong iwith

ithe iprincipal iamount iborrowed. iLet ius itake ia ilook iat ithe idifferent itypes iof iloans ithat iare iavailable

iin iIndia.

There iare ivarious itypes iof iloans iavailable iin iIndia, iand ithey iare iclassified ibased ion itwo ifactors:
- iWhether ithey irequire icollateral
- iThe ipurpose ithey iare iused ifor

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Based ion iwhether ithey irequire icollateral, iloans iare iclassified iinto isecured iloans iand iunsecured
iloans. iLet’s itake ia ilook iat ieach itype.

I. iSecured iloans:- i

i i i i i i i i i i i iThese iare iloans ithat ido irequire icollateral, ii.e., iyou ihave ito iprovide ian iasset ito ithe ilender

ias isecurity ifor ithe imoney iyou iare iborrowing. iThat iway, iif iyou iare iunable ito irepay ithe iloan, ithe

ilender istill ihas isome imeans ito iget iback itheir imoney. iThe irate iof iinterest iof isecured iloans itends ito

ibe ilower ias icompared ito ithose ifor iloans iwithout icollateral.

Types iof isecured iloans:-

1. iHome iloan

Home iloans iare ia isecured imode iof ifinance, ithat igive iyou ithe ifunds ito ibuy ior ibuild ithe ihome iof
iyour ichoice. iThe ifollowing iare ithe itype iof ihome iloans iavailable iin iIndia:

Land ipurchase iloan: iPurchase iland ifor iyour inew ihome

Home iconstruction iloan: iBuild ia inew ihome
Home iloan ibalance itransfer: iTransfer ithe ibalance iof iyour iexisting ihome iloan iat ia ilower iinterest
irate

Top iup iloan: iCan ibe iused ito irenovate ian iexisting ihome ior ihave ithe ilatest iinteriors ifor iyour inew
ihome

Note ithat iwhile ibuying ia inew iproperty/home, ithe ilender irequires iyou imake ia idown ipayment iof iat
ileast i10-20% iof ithe iproperty’s ivalue. iThe irest iis ifinanced. iThe iloan iamount idisbursed idepends ion

iyour iincome, iits istability iand icurrent iliabilities iamong iothers.

2 i1. iUnsecured ipersonal iloans

Personal iloans iare iused ifor ia ivariety iof ireasons, ifrom ipaying ifor iwedding iexpenses ito
iconsolidating idebt. iPersonal iloans ican ibe iunsecured iloans, iwhich imeans iyou’re inot iputting

icollateral ilike ia ihome ior icar ion ithe iline iin icase iyou idefault ion iyour iloan.

Best ifor idebt iconsolidation iand imajor ipurchases

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If iyou ihave ihigh-interest icredit icard idebt, ia ipersonal iloan imay ihelp iyou ipay ioff ithat idebt
isooner. iTo iconsolidate iyour idebt iwith ia ipersonal iloan, iyou’d iapply ifor ia iloan iin ithe iamount

iyou iowe ion iyour icredit icards. iThen, iif iyou’re iapproved ifor ithe ifull iamount, iyou’d iuse ithe

iloan ifunds ito ipay iyour icredit icards ioff, iinstead imaking imonthly ipayments ion iyour ipersonal

iloan.

Depending ion iyour icredit, ia ipersonal iloan imay ioffer ia ilower iinterest irate ithan iyour icredit
icard i— iand ia ilower iinterest irate icould imean ibig isavings. iIt imay ihelp ito iget ian iidea iof iwhat

ithe iaverage idebt iconsolidation irate iis.

A ipersonal iloan imay ialso ibe ia igood ichoice iif iyou iwant ito ifinance ia imajor ipurchase, ilike ia
ihome iimprovement iproject, ior iyou ihave iother ibig icosts ilike imedical ibills ior imoving

iexpenses.Types iof iunsecured iloan:-

1. iUnsecured ipersonal iloans

Personal iloans iare iused ifor ia ivariety iof ireasons, ifrom ipaying ifor iwedding iexpenses ito
iconsolidating idebt. iPersonal iloans ican ibe iunsecured iloans, iwhich imeans iyou’re inot iputting

icollateral ilike ia ihome ior icar ion ithe iline iin icase iyou idefault ion iyour iloan.

Best ifor idebt iconsolidation iand imajor ipurchases

If iyou ihave ihigh-interest icredit icard idebt, ia ipersonal iloan imay ihelp iyou ipay ioff ithat idebt isooner.
iTo iconsolidate iyour idebt iwith ia ipersonal iloan, iyou’d iapply ifor ia iloan iin ithe iamount iyou iowe ion

iyour icredit icards. iThen, iif iyou’re iapproved ifor ithe ifull iamount, iyou’d iuse ithe iloan ifunds ito ipay

iyour icredit icards ioff, iinstead imaking imonthly ipayments ion iyour ipersonal iloan.

Depending ion iyour icredit, ia ipersonal iloan imay ioffer ia ilower iinterest irate ithan iyour icredit icard i—
iand ia ilower iinterest irate icould imean ibig isavings. iIt imay ihelp ito iget ian iidea iof iwhat ithe iaverage

idebt iconsolidation irate iis.

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A ipersonal iloan imay ialso ibe ia igood ichoice iif iyou iwant ito ifinance ia imajor ipurchase, ilike ia ihome
iimprovement iproject, ior iyou ihave iother ibig icosts ilike imedical ibills ior imoving iexpenses.1.

iEducation iloans

An ieducation iloan ican ibe itaken ifor ia ifull-time, ipart-time ior ivocational icourse ialong iwith
igraduation iand ipost-graduation icourse iin ithe ifields iof imanagement, iengineering iand imedicine,

iamong iothers. iThe iloan imust irepaid iby ithe istudent ionce ithe icourse iis icomplete.

A iunique ifeature iof ian ieducation iloan iis ithe imoratorium iperiod, iwherein ithe istudent ihas ithe ioption
iof inot ipaying ithe iEMIs iuntil iafter i12 imonths iof icompleting ithe icourse ior i6 imonths iafter ihe/she

istarts iworking, iwhichever iis iearlier.

Secured ipersonal iloans

To iget ia isecured ipersonal iloan, iyou’ll ihave ito ioffer iup isome itype iof icollateral, ilike ia icar ior
icertificate iof ideposit, ito i“secure” iyour iloan.

Best ifor ilower iinterest irates

Secured ipersonal iloans ioften icome iwith ilower iinterest irates ithan iunsecured ipersonal iloans.
iThat’s ibecause ithe ilender imay iconsider ia isecured iloan ito ibe iless irisky i— ithere’s ian iasset

ibacking iup iyour iloan. iIf iyou idon’t imind ipledging icollateral iand iyou’re iconfident iyou ican

ipay iback iyour iloan, ia isecured iloan imay ihelp iyou isave imoney ion iinterest.

Watch iout ifor ipotential iloss iof iassets

When iyou iuse iyour icollateral ito itake iout ia iloan, iyou irun ithe irisk iof ilosing ithe iproperty iyou
ioffered ias icollateral. iFor iexample, iif iyou idefault ion iyour ipersonal iloan ipayments, iyour

ilender icould iseize iyour icar ior isavings.

3. iPayday iloans

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Payday iloans iare ishort-term, ihigh-cost iloans ithat iare itypically idue iby iyour inext ipayday.
iStates iregulate ipayday ilenders idifferently, iwhich imeans iyour iavailable iloan iamount, iloan ifees

iand ithe itime iyou ihave ito irepay imay ivary ibased ion iwhere iyou ilive. iAnd isome istates iban

ipayday ilending ialtogether.

To irepay ithe iloan, iyou’ll itypically ineed ito iwrite ia ipost-dated icheck ior iauthorize ithe ilender ito
iautomatically iwithdraw ithe iamount iyou iborrowed, iplus iany iinterest ior ifees, ifrom iyour ibank

iaccount.

Best ifor iemergency icash iwhen iyou idon’t ihave iother ioptions

Payday iloans iare iusually i$500 ior iless. iGetting ia ipayday iloan imay ibe ihelpful iif iyou’re iin ia
ipinch iand idon’t ihave isavings ior iaccess ito icheaper iforms iof icredit.

Watch iout ifor ihigh ifees

Payday iloans ihave ihigh ifees ithat ican iequate ito iannual ipercentage irates, ior iAPRs, iof iaround
i400% i— imuch ihigher ithan ipersonal iloan iAPRs, iwhich iaverage iaround i10% ito i11% ifor ia

i24-month iterm, iaccording ito ithe iFederal iReserve.

4. iTitle iloans

If iyou iown iyour icar, iyou imay ibe iable ito itake iout ia icar ititle iloan. iYou ican itypically iborrow
ibetween i25% iand i50% iof iyour icar’s ivalue. iTitle iloan iamounts ioften irange ifrom i$100 ito

i$5,500, iaccording ito ithe iFederal iTrade iCommission, iand iyou’ll iusually ihave ito irepay iyour

ititle iloan iwithin i15 ito i30 idays. iIf iyou idon’t, iyour icar icould ibe irepossessed.

Title iloans itypically icarry ihigh iAPRs iin ithe itriple idigits. iIf iyou’re iapproved, iyou’ll ihave ito
ihand iover iyour icar ititle iuntil iyou ipay iback ithe ifull iamount iof ithe iloan, iincluding ifees.

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Documents irequired ifor ithe iloan iapproval:-

Personal iLoan:- i

i i i i iOne iof ithe ioptions ito iget imoney ifrom ireputed ibanks ifor iall ineeds iis ithrough ipersonal iloan.

iAnd, ito iapply isuccessfully ifor ia ipersonal iloan ian iapplicant ineeds ito iprovide icertain iset iof

idocuments.

These idocuments ihelps ilender i(be iit ia iBank ior ia iNBFC) ito iknow iand iunderstand ithe ifinancial
istability iof ithe iborrower iand ianalyze ithe icredit irisk. iApart ifrom ithat iit ihelps ia ilender iknow iand

iverify iall ithe idetails iabout ithe iapplicant isuch ias iage, iincome, iaddress, iemployer iand iemployment.

iIt iis ion ithe ibasis iof ithis ia ilender idecides iwhether ito ilend ior inot ito ithe iapplicant.

As ipersonal iloans iare iunsecured iloans, ithe ilender idoes inot itakes ianything ias icollateral ifor ithe
ilending iamount, ihence ithere iis ialways ia ipotential irisk iof iborrower idefaulting ior iabsconding ion ithe

iloan. iHence ito ibe idouble itriple isure ia ilender iasks ifor ia icertain iset iof idocuments iso ithat iit ican

ilearn iand ianalyse ithe iapplicant iand ithen idecide.

The idocuments irequired ifor ipersonal iloan ihelp ia ilender ito iknow iand iunderstand ithe ifollowing
iabout ithe iapplicant:

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1. Identity

2. Age

3. Income

4. Address

5. Existing iLoans

6. Repayment iHistory i(if iany)

Once ia ilender ihas ithese idetails, ithey ican iknow iand iunderstand ithe iapplicant ibetter. iAnd, iusing ithe
iinformation iprovided, ithey ican icome iup iwith ithe ibest iloan ioffer ifor ithe iapplicant.

As isuch, iproviding ithe irequired idocuments iwhile iapplying ifor ia ipersonal iloan, ihelps ithe iapplicant
ito iget ithe ibest ioffer.

Above iis ithe ichecklist iof iall ithe irequired idocuments ifor ia ipersonal iloan.

Home iloan:-

i iHere iis ia ichecklist iof ithe idocuments irequired ito iapply ifor ia ihome iloan. i

1. Passport iSize iPhotographs

2. Identity iProof: iPassport i/ iDriving iLicense i/ iVoter iID i/ iPAN iCard i/ iAadhaar iCard.

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3. Address iProof: iDriving iLicense i/ iRegistered iRent iAgreement i/ iElectricity iBill i(up ito i3
imonths iold) i/ iPassport.

4. Employment iAppointment iLetter: iRequired iif ithe icurrent iemployment iis iless ithan i1-year
iold.

5. Financial iDocuments:

✓ Last3monthssalaryslip
✓ 6monthbankstatement
✓ 2 iyear iForm i16

6. Property iDocuments: iSale ideed, iKhata, itransfer iof iownership.

7. Advance iProcessing iCheque: iA icancelled icheque ifor ivalidation iof ibank iaccount.

8. Financial iDocuments:

❖ For iSalaried iIndividual: i3 imonth isalary islip, iForm i16 iand ibank istatement
❖ For iSelf-Employed iIndividual: iIT ireturns ifor ilast i2 iyears ialong iwith icomputation iof iincome
itax ifor ipast i2 iyears icertified iby ia iChartered iaccountant

❖ For iSelf-Employed iNon- iProfessionals: iIT ireturns ifor ilast i3 iyears ialong iwith icomputation iof
iincome itax ifor ipast i2 iyears icertified iby ia iChartered iaccountant

9. Complete iHome iLoan iApplication iform iduly ifilled

Vehicle iLoan:-

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i i iHere iis ithe ichecklist iof ithe idocuments irequired ito iapply ifor ia icar iloan:

✓ Proof iof iage

✓ Identification iproof

✓ Application iform

✓ Passport isize iphotograph

✓ Proof iof iresidence

✓ Income iproof

✓ Bank istatement

✓ Signature iverification iproof

✓ Pro-forma iInvoice ior iRate iList

Reasonable iinterest irates, iaffordable iEMIs, isimplistic ipaperwork, iand iquick idisbursement iare ia ifew
ireasons iwhy icar iloans ihave ibecome isuch ia icomfortable ioption ifor itoday’s icommon iman. iNow ithe

idream iof iowning ia icar iis ino ilonger ifar-fetched- ia ifew idocuments iare iall iyou ineed.

Predominantly, ithe ilender ibanks ilook ifor iproof ithat iyou iare ia igood icredit irisk iand iare iin ia iposition
ito irepay ithe icar iloan. iThis iinformation, ialong iwith iyour icredit ireport iand iscore, iwill idirectly

iimpact ithe iinterest irates ithat iyou iare icharged.

Since iyour icredit irating iwill ibe iassessed iwhile iapplying, iit iis iworth icleaning iup iany iexisting idebts
ibefore iyou ilodge iyour iinitial iapplication. iThis iis isure ito iimprove iyour ichances iof iapproval. iIf iyou

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ihave ia ibad icredit ihistory, ithe ilender ibank iwill ialso iwant ito isee iyour icredit icard istatements,

imortgage idetails iand iverification iof iother iloans ithat iyou ihold.

Educational iLoan:-

Documents irequired ifor ian iEducational iLoan:

For istudents iseeking ia iloan ifor istudies iwithin ithe icountry, ithey ican iprovide ithe ifollowing
idocuments.

✓ Duly-filled iapplication iform.

✓ 2 ipassport isize iphotographs.

✓ Graduation, iSecondary iSchool iCertificate, ior iHigh iSchool iCertificate ior imark isheets

✓ KYC idocuments ithat iinclude iID, iaddress, iand iage iproof.

✓ Signature iProof

✓ Income iProof iof iparents ior iguardian

✓ If icollateral iis irequired, idocumentation ifor iImmovable iproperty, iFDs, ietc.

✓ For istudents iinterested iin ia iloan ito istudy iabroad, ithey iwill ineed ito iprovide ithe idocuments
ibelow.

✓ Duly-filled iapplication iform.

✓ 2 ipassport isize iphotographs.

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✓ KYC iDocuments ithat iinclude iID, iresidence iand iage iproof.

✓ A icopy iof istatement iof imarks ior icertificates iof ilast iexamination ipassed.

✓ Proof iof iadmission ito ithe iuniversity iand ithe icourse

✓ Schedule iof icourse iexpenses

✓ If iyou ihave ireceived ia ischolarship, ia icopy iof ithe ischolarship iletter iis ineeded.

✓ Copy iof iForeign iExchange ipermit iif iyou ihave iit.

✓ Bank iaccount istatement ifor ilast isix imonths iof ithe iborrower, iparents ior iguardian.

✓ Last i2 iyears’ iIncome iTax iassessment iof ithe iborrower, iparents ior iguardian.

✓ For iloans iwith icollateral, ithe idetails iof isecurity ioffered imust ibe ifurnished. iYou imight ialso ibe
irequired ito iprovide ian iadvocate’s isearch iand ireport iabout iits imarketability, imortgage iability,

ietc.

✓ Proof iof ithe isource iof imargin iis irequired.

Educational iloans iare ia isector iwhich iis ipromoted ias iit igives istudents ithe iopportunity ito istudy
ifurther. iIt ienhances ithe igrowth iand idevelopment iof ithe icitizens iand ithe icountry. iEducational iloans

iare ian iinvestment iinto ithe ifuture, iso iit iis iimportant ito ido iyour iresearch iand itake iyour itime.

iGovernment iand ibanks ialso ioffer isubsidies iand ilower iinterest irates ito ipromote ieducation ifor iall.

Gold iloan:-

✓ Two ipassport isize iphotograph

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✓ ID iProof isuch ias iDriving iLicense i/ iPAN iCard i/ iForm i60/61 i/ iPassport iCopy i/ iVoter iID iCard i/
iAadhaar iCard i/ iRation iCard. iAny ione idocument ineeds ito ibe isubmitted

✓ Address iProof isuch ias iDriving iLicense i/ iVoter iID iCard i/ iRation iCard i/ iAadhaar iCard i/
iPassport iCopy i/ iregistered ilease iagreement iwith inot iolder ithan i3 imonths iutility ibills iin ithe

iname iof ilandlord i(any ione)

✓ Proof iof iland iholding iin icase iof iagriculture iloan iof imore ithan iRs. i1 ilakh

Terms iand iconditions iof iloan iagreement:-

i iWhat iis ia iLoan iAgreement?

✓ Few ipeople isail ithrough ilife iwithout iborrowing. iWith ifew iexceptions, ialmost ieveryone itakes ia
iloan ito ibuy ia icar, ifinance ia ihome ipurchase, ipay ifor ia icollege ieducation ior icover ia imedical

iemergency. iLoans iare inearly iubiquitous iand iso iare ithe iagreements ithat iguarantee itheir

irepayment.

✓ Loan iagreements iare ibinding icontracts ibetween itwo ior imore iparties ito iformalize ia iloan
iprocess. iThere iare imany itypes iof iloan iagreements, iranging ifrom isimple ipromissory inotes

ibetween ifriends iand ifamily imembers ito imore idetailed icontracts ilike imortgages, iauto iloans,

icredit icard iand ishort- ior ilong-term ipayday iadvance iloans.

✓ Simple iloan iagreements ican ibe ilittle imore ithan ishort iletters ispelling iout ihow ilong ia iborrower
ihas ito ipay iback imoney iand iwhat iinterest imight ibe iadded ito ithe iprincipal. iOthers, ilike

imortgages, iare ielaborate idocuments ithat iare ifiled ias ipublic irecords iand iallow ilenders ito

irepossess ithe iborrower’s iproperty iif ithe iloan iisn’t irepaid ias iagreed.

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✓ Each itype iof iloan iagreement iand iits iconditions ifor irepayment iare igoverned iby iboth istate iand
ifederal iguidelines idesigned ito iprevent iillegal ior iexcessive iinterest irate ion irepayment.

✓ Loan iagreements itypically iinclude icovenants, ivalue iof icollateral iinvolved, iguarantees, iinterest
irate iterms iand ithe iduration iover iwhich iit imust ibe irepaid. iDefault iterms ishould ibe iclearly

idetailed ito iavoid iconfusion ior ipotential ilegal icourt iaction. iIn icase iof idefault, iterms iof

icollection iof ithe ioutstanding idebt ishould iclearly ispecify ithe icosts iinvolved iin icollecting ithe

idebt. iThis ialso iapplies ito iparties iusing ipromissory inotes ias iwell. i

Purpose iof ia iLoan iAgreement:-

i i i i i i i iThe imain ipurpose iof ia iloan icontract iis ito idefine iwhat ithe iparties iinvolved iare iagreeing ito,

iwhat iresponsibilities ieach iparty ihas iand ifor ihow ilong ithe iagreement iwill ilast. iA iloan iagreement

ishould ibe iin icompliance iwith istate iand ifederal iregulations, iwhich iwill iprotect iboth ilender iand

iborrower ishould ieither iside ifail ito ihonor ithe iagreement. iTerms iof ithe iloan icontract iand iwhich istate

ior ifederal ilaws igovern ithe iperformance iobligations irequired iby iboth iparties, iwill idiffer idepending

iupon ithe iloan itype.

Most iloan icontracts idefine iclearly ihow ithe iproceeds iwill ibe iused. iThere iis ino idistinction imade iin
ilaw ias ito ithe itype iof iloan imade ifor ia inew ihome, ia icar, ihow ito ipay ioff inew ior iold idebt, ior ihow

ibinding ithe iterms iare. iThe isigned iloan icontract iis iproof ithat ithe iborrower iand ithe ilender ihave ia

icommitment ithat ifunds iwill ibe iused ifor ia ispecified ipurpose, ihow ithe iloan iwill ibe ipaid iback iand iat

iwhat iamortization irate. iIf ithe imoney iis inot iused ifor ithe ispecified ipurpose, iit ishould ibe ipaid iback

ito ithe ilender iimmediately.

Other iReasons ifor iUsing iLoan iAgreements:-

✓ Borrowing imoney iis ia ihuge ifinancial icommitment, iwhich iis iwhy ia iformal iprocess iis iin iplace
ito iproduce ipositive iresults ion iboth isides.

✓ Most iof ithe iterms iand iconditions iare istandard ifare i– iamount iof imoney iborrowed, iinterest
icharged, irepayment iplan, icollateral, ilate ifees, ipenalties ifor idefault i– ibut ithere iare iother ireasons

ithat iloan iagreements iare iuseful.

✓ A iloan iagreement iis iproof ithat ithe imoney iinvolved iwas ia iloan, inot ia igift. iThat icould ibecome
ian iissue iwith ithe iIRS.

✓ Loan iagreements iare iespecially iuseful iwhen iborrowing ior iloaning ito ia ifamily imember ior
ifriend. iThey iprevent iarguments iover iterms iand iconditions.

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✓ A iloan iagreement iprotects iboth isides iif ithe imatter igoes ito ia icourt. iIt iallows ithe icourt ito
idetermine iwhether ithe iconditions iand iterms iare ibeing imet.

✓ If ithe iloan iincludes iinterest, ione iside imay iwant ito iinclude ian iamortization itable, iwhich ispells
iout ihow ithe iloan iwill ibe ipaid ioff iover itime iand ihow imuch iinterest iis iinvolved iin ieach

ipayment.

✓ Loan iagreements ican ispell iout ithe iexact imonthly ipayment idue ion ia iloan.

It iis isafe ito isay ithat ianytime iyou iborrow ior ilend imoney, ia ilegal iloan iagreement ishould ibe ipart
iof ithe iprocess.

On iDemand ivs. iFixed iRepayment iLoans:-

Loans iuse itwo isorts iof irepayment: ion idemand iand ifixed ipayment.

i i i i i i i iDemand inotes iare iusually iused ifor ishort-term iborrowing iand iare ioften iused iwhen ipeople

iborrow ifrom ifriends ior ifamily imembers. iSometimes ibanks iwill ioffer idemand iloans ito icustomers

iwith iwhom ithey ihave ian iestablished irelationship. iThese iloans itypically idon’t irequire icollateral iand

iare ifor ismall iamounts.

i i i i i i i i i i i i i iTheir ikey ifeature iis ihow ithey iare irepaid. iUnlike ilonger iterm iloans, irepayment ican ibe

irequired iwhenever ithe ilender idesires, ias ilong ias isufficient inotification iis igiven. iThe inotification

irequirement iis iusually ispelled iout iin ithe iloan iagreement. iDemand iloans iwith ifriends iand ifamily

imember imight ibe ia iwritten iagreement, ibut iit imight inot ibe ilegally ienforceable. iBanks idemand

iloans iare ilegally ienforceable. iA icheck ioverdraft ifacility iis ione iexample iof ia ibank idemand iloan i–

iif iyou idon’t ihave ithe imoney iin iyour iaccount ito icover ia icheck, ithe ibank iwill iloan iyou ithe imoney

iand ipay ithe icheck, ibut iyou iare iexpected ito irepay ithe ibank iquickly, iusually iwith ia ipenalty ifee.

i i i i i iFixed iterm iloans iare icommonly iused ifor ilarge ipurchases iand ilenders ioften idemand ithat ithe

iitem ipurchased, iperhaps ia ihouse ior ia icar, iserve ias icollateral iif ithe iborrower idefaults. iRepayment iis

ion ia ifixed ischedule, iwith iterms iestablished iat ithe itime ithe iloan iis isigned. iThe iloan ihas iwith ia

imaturity idate iwhen iit imust ibe ifully irepaid. iIn isome icases, ithe iloan ican ibe ipaid ioff iearly iwithout

ipenalty. iIn iothers, iearly irepayment icomes iwith ia ipenalty.

Legal iTerms ito iConsider:-

23
i i i i i i i iAll iloan iagreements imust ispecify igeneral iterms ithat idefine ithe ilegal iobligations iof ieach

iparty. iFor iinstance, ithe iterms iregarding irepayment ischedule, idefault ior icontract ibreach, iinterest

irate, iloan isecurity, ias iwell ias icollateral ioffered imust ibe iclearly ioutlined.

There iare isome istandard ilegal iterms iinvolved iin iloan iagreements ithat iall isides ishould ibe iaware iof,
iregardless iof iwhether ithe icontract iis ibetween ifamily iand ifriends ior ibetween ilending iinstitutions

iand icustomers. i

Here iare ifour ikey iterms iyou ishould iknow ibefore isigning ia iloan iagreement:

Choice iof iLaw: iThis iterm irefers ito ithe idifference ibetween ilaws iin itwo ior imore ijurisdictions. iFor
iexample, ithe ilaws igoverning ia ispecific ipart iof ia iloan iagreement iin ione istate imay idiffer ifrom ithe

isame ilaw iin ianother istate. iIt iis iimportant ito iidentify iwhich istate i(or ijurisdiction’s) ilaws iwill iapply.

iThis iterm iis ialso iknown ias ia i“Conflict iof iLaw.”

Involved iParties: iThis irefers ito ipersonal iinformation iabout ithe iborrower iand ilender ithat ishould ibe
iclearly istated iin ithe iloan iagreement. iThat iinformation ishould iinclude ithe inames, iaddresses, isocial

isecurity inumbers iand iphone inumbers ifor iboth isides.

Severability iClause: iThis iterm istates ithat iterms iof ia icontract iare iindependent iof ieach iother. iThus,
iif ione icondition iof ithe icontract iis ideemed iunenforceable iby ia icourt, ithat idoesn’t imean iall

iconditions iare iunenforceable.

Entire iAgreement iClause: iThis iterm idefines iwhat ithe ifinal iagreement iwill ibe iand isupersedes iany
iagreements ipreviously imade iin inegotiations, iwhether iwritten ior ioral. iIn iother iwords, ithis iis ithe

ifinal isay iand ianything ithat iwas isaid i(or iwritten) ibefore, ino ilonger iapplies.

Interest iRate iDetermination:-

i i i i i i i i i i i iMany iborrowers iin itheir ifirst iexperience isecuring ia iloan ifor ia inew ihome, iautomobile ior

icredit icard iare iunfamiliar iwith iloan iinterest irates iand ihow ithey iare idetermined. iThe iinterest irate

idepends ion ithe itype iof iloan, ithe iborrower’s icredit iscore iand iif ithe iloan iis isecured ior iunsecured.

i i i i i i i i i i i i iIn isome icases, ia ilender iwill irequest ithat ithe iloan iinterest ibe itied ito imaterial iassets ilike

ia icar ititle ior iproperty ideed. iState iand ifederal iconsumer iprotection ilaws iset ilegal ilimits iregarding

ithe iamount iof iinterest ia ilender ican ilegally iset iwithout iit ibeing iconsidered ian iillegal iand iexcessive

iusury iamount.

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If ithe iloan iincludes iinterest ipayments, ias imost ido, ithe iterms iwill ibe ispelled iout iin ithe iloan’s iterms
iand iconditions. iInterest iis ieither ifixed ifee ior ifloating ifee.

i i i i i i i i i i i iA ifixed ifee, ior ifixed irate, iloan iestablishes ian iinterest irates ithat iremains iunchanged

iduring ithe irepayment iof ithe iloans. iIf iyou iborrow imoney iwith ia i4% iannual irate, iyou iwill ipay ithe

ilender i4% ia iyear ion ithe ibalance idue iuntil ithe iloan iis ipaid ioff. iThe iamount iof iinterest iyou ipay iwill

idecrease iover itime ias ithe ibalance iis ipaid idown iand ithe iprincipal ipayment iwill iincrease. iIf iyou

iborrow i$200,000 ito ibuy ia ihouse, ithe imonthly ipayment iwill iremain iconstant, ibut ithe iportion iof ithe

ipayment ithat igoes ito iinterest iand iprincipal iwill ichange ieach imonth ias ithe iloan iis ibalance iis

ireduced.

i i i i i i i i i i iFloating ifee iinterest irates, ialso icalled ivariable irate iloans, icarry iinterest irates ithat ichange

iover itime. iThe iamount iof iinterest ibased ion ia ibenchmark irate, iusually ia iwidely ifollowed iindex ilike

ithe iLIBOR ithose ichanges iregularly. iFloating ifee irates iare iadjusted iperiodically iand igenerally iare

ionly iused iin icomplex iloans ilike iadjustable-rate ihome imortgages.

Contract iLength i& iAmortization:-

i i i i i i iThe ilength iof ia iloan icontract iis idetermined iby ia ilender’s ireliance iupon ian iamortization

ischedule. iOnce ithe ilender iand ithe iborrower ihave idetermined ithe iamount iof imoney ineeded, ithe

ilender iwill iuse ithe iamortization itable ito icalculate iwhat ithe imonthly ipayment iwill ibe iby idividing

ithe inumber iof ipayments ito ibe imade iand iadding ithe iinterest ionto ithe imonthly ipayment.

i i i i i iUnless ithere iare icertain iloan iconditions ithat ipenalize ithe iborrower ifor iearly iloan ipayment, iit

iis iin ithe ibest iinterest iof ithe iborrower ito ipay iback ithe iloan ias iquickly ias ipossible. iThe ifaster ithe

iloan idebt iis iretired ithe iless imoney iit icosts ithe iborrower.

Pre-Payment iFees iand iPenalties

i i i i i i iWhile ithe igoal ito ipay iback ia iloan iquickly iis ia ifinancially isound ipractice, ithere iare icertain

iloans ithat ipenalize ithe iborrower iwith ipre-paid ifees iand ipenalties ifor idoing iso. iPrepayment

ipenalties iare itypically ifound iin iautomobile iloans ior iin imortgage isubprime iloans. iThey ialso ican

ioccur iwhen iborrowers ichoose ito irefinance ia ihome ior iauto iloan.

i i i i i i i i i iPre-payment ipenalties iare iapplied ito iprotect ithe ilender, iwho iexpects ia icertain ireturn ion ihis

iloan iover ia icertain iamount iof itime. iFor iexample, iif ithe iborrower irepays ia i5-year iloan iin ithree

iyears, ithe ilender iwould ibe iout ithe iinterest ihe iexpected ithe ilast itwo iyears iof ithe iloan.

25
i i i i i i i iPrepayment ipenalties iusually iare i2% iof ithe iamount idue ion ithe iloan ior isix imonths iof iinterest

ipayments. iIt ican ihave ia idramatic ieffect ion ithe icost iof irefinancing ia iloan. iMany isub-prime iloans

iinclude iprepayment ipenalties, iwhich iopponents isay itarget ithe ipoor, iwho iusually iare ithe iones iwith

isubprime iloans.

i i i i i i i i i i iOn ithe iother iside iare ihomes ifinanced ithrough igovernment-backed iFHA iloans. iFederal ilaw

ispecifically iforbids iprepayment ipenalties ion iFHA iloans. iThe iexception iis iif ithe iborrower ihas ia

imortgage ithat icontains ia idue-on-sale iclause iand ithe iclause ihas ibeen iallowed ias ipart iof ithe

imortgage.

Breach ior iDefault

i i i i i i i iIf ia iloan icontract iis ipaid ioff ilate, ithe iloan iis iconsidered iin idefault. iThe iborrower ican ibe

iliable ifor ia imyriad iof ipotential ilegal idamages ito icompensate ithe ilender ifor iany ilosses isuffered.

The ibreached ior idefaulted ilender ican ipursue ilitigation iand ihave ia icourt ihold ithe iborrower iliable ifor
ilegal icosts, iliquidated idamages iand ieven ihave iassets iand iproperty iattached ior isold ifor irepayment

iof ithe idebt. iIn iaddition, ia ibreach ior idefault iof icourt ijudgment ican ibe iplaced ion ithe iborrower’s

icredit irecord.

Mandatory iArbitration:-

i i i i i i i iMandatory iarbitration iis ian iincreasingly ipopular iprovision iin iloan iagreements ithat irequires

iparties ito iresolve idisputes ithrough ian iarbitrator, irather ithan ithe icourt isystem.

More ithan i50% iof ilending iinstitutions iinclude imandatory iarbitration ias ipart iof itheir iloan icontracts
ibecause iit iis isupposed ito ibe ifaster iand icheaper ithan igoing ito icourt. iArbitration iputs ithe ifinal

idecision iin ithe ihands iof ione iperson, iwho ilikely iis imore iexperienced iand isophisticated iabout ithe

ilaw ithan isix ijurors iin ia icourtroom.

i i i i i i iIn imost icases, imandatory iarbitration iclearly ifavors ithe ilenders, iwho ihave ilegal icounsel ithat

ispecialize iin ithis iarea iof ilaw ion itheir iside. iThe iborrower ioften ihas ino ilawyer ior iinadequate

irepresentation ibecause ilawyers iare inot iguaranteed ipayment iin iarbitration icases.

i i i i i i iThe iborrower iis iat ian ieven ibigger idisadvantage iif ithe iarbitration iis ibinding, imeaning ithere

ican ibe ino iappeal. iThe irules iin ithe iFair iCredit iReporting iAct iand ithe iTruth iin iLending iAct ihave

ino ibearing iin iarbitration icases, iwhich ialso ifavors ithe ilender.

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i i i i i i i i iMembers iof ithe imilitary iare iespecially ivulnerable ito iloan iagreements ithat iinclude

imandatory iarbitration. iA isolider iserving iout iof ithe icountry imay inot ibe iable ito iattend ior ihave

icompetent irepresentation iat ian iarbitrary ihearing iand ibecause iof ithat, ilose ipossession iof ia icar ior

iother iasset. iThe iarbitrator’s idecision ican’t ibe iappealed, iso ithere iis ino irecourse iif ithe idecision igoes

iagainst ithe isoldier.

Before iyou isign ia iloan iagreement, iread iit iclosely iand iif iit iincludes ia imandatory iarbitration iclause,
idecide iwhether iyou iare icomfortable iwith ithat ias ia imeans iof isettling idisputes.

Usury iand iPredatory iProtections

i i i i i i i iSeveral ifederal iand istate iconsumer iprotection ilaws iprotect iconsumers iagainst ipredatory iand

iusury iloan itactics iused iby ilenders. iThe iTruth iIn iLending iAct, iReal iEstate iSettlement iAct iand ithe

iHome iOwners iProtection iAct ifederally iprotect iborrowers iagainst ipredatory ilenders.

Many istates ienacted icompanion iconsumer ipredatory iand iusury iprotection iacts ito iprotect iborrowers.
iBoth iparties ibenefit ibecause ilenders imake ireasonable iinterest irepayment irates iand iborrowers

ireceive ia imuch-needed iloan.

i i i i i i iSeveral ifederal iand istate iconsumer iprotection ilaws iprotect iconsumers iagainst ipredatory iand

iusury iloan itactics iused iby ilenders.

Promissory iNotes:-

i i i i i i i i i i i i iPromissory inotes iresemble iloan iagreements ibut ilack icomplexity. iOften, ithey iare ilittle

imore ithan icommitment-to-pay iletters ilike iIOUs ior isimple ipayment ion idemand inotes. iUsually ithe

iborrower iwrites ia iletter ispecifying ihow imuch imoney ihe ior ishe iis iborrowing iand ithe iterms iunder

iwhich iit iwill ibe irepaid. iThey iare ialmost ialways iused ifor ismall iloans ibetween ipeople iwho iknow

ione ianother iwell.

Promissory inotes iare isigned iand idated iand ican ibe ilegally ibinding. iPromissory inotes ican ibe isecured
ior iunsecured. iSecured iloans ioffer ithe ilender icollateral iis ithe iloan iisn’t irepaid, iwhile iunsecured

iloans idon’t iuse icollateral. iThey ican icontain iterms iabout iinstallment ipayments iand iinterest, ithough

ithey imight inot.

i i i i i i i i i i i iUnlike iloan iagreements, iwhich ican icontain icomplex ipayment iterms, ipromissory inotes iare

imore ilike ipaper itrails ithat idocument ithat ione iperson ihas ilent imoney iand ithat ithe iborrower iagrees

ito irepay ithe imoney iwithin ia icertain iamount iof itime, ieither iin ia ilump isum ior iin iinstallments. iIt’s

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 iused iprimarily ito iavoid ifinancial imisunderstandings iand ishouldn’t ibe iconfused iwith ia iloan

iagreement, iwhich icontains ian iassortment iof ilegally ienforceable iterms iand iremedies.

CHAPTER-II

INDUSTRY iPROFILE i& iCOMPANY iPROFILE

Introduction

As iper ithe iReserve iBank iof iIndia i(RBI), iIndia’s ibanking isector iis isufficiently icapitalised iand iwell-regulated.
iThe ifinancial iand ieconomic iconditions iin ithe icountry iare ifar isuperior ito iany iother icountry iin ithe iworld. iCredit,

imarket iand iliquidity irisk istudies isuggest ithat iIndian ibanks iare igenerally iresilient iand ihave iwithstood ithe iglobal

idownturn iwell.

Indian ibanking iindustry ihas irecently iwitnessed ithe iroll iout iof iinnovative ibanking imodels ilike ipayments iand
ismall ifinance ibanks. iRBI’s inew imeasures imay igo ia ilong iway iin ihelping ithe irestructuring iof ithe idomestic

ibanking iindustry.

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The idigital ipayments isystem iin iIndia ihas ievolved ithe imost iamong i25 icountries iwith iIndia’s iImmediate iPayment
iService i(IMPS) ibeing ithe ionly isystem iat ilevel ifive iin ithe iFaster iPayments iInnovation iIndex i(FPII)

Indian ibanking isystem iconsists iof i12 ipublic isector ibanks, i22 iprivate isector ibanks, i44 iforeign ibanks, i56
iregional irural ibanks, i1,485 iurban icooperative ibanks iand i96,000 irural icooperative ibanks iin iaddition ito

icooperative icredit iinstitutions. iAs iof iAugust i2020, itotal inumber iof iATMs iin iIndia iincreased ito i209,110

iand iis iexpected ito ireach i407,000 iby i2021.According ito iReserve iBank iof iIndia i(RBI), iIndia’s iforeign

iexchange ireserve ireached iUS$ i560.53 ibillion ias ion iOctober i23, i2020. iAccording ito ithe iReserve iBank

iof iIndia i(RBI), ibank icredit iand ideposits istood iat iRs. i103.43 ilakh icrore i(US$ i1.39 itrillion) iand iRs.

i143.02 ilakh icrore i(US$ i1.92 itrillion), irespectively, iin ithe ifortnight iending iOctober i9, i2020.

➢ Credit ito inon-food iindustries istood iat iRs. i102.80 ilakh icrore i(US$ i1.38 itrillion) ias iof iOctober i9,
i2020.

➢ Asset iof ipublic isector ibanks istood iat iRs. i107.83 ilakh icrore i(US$ i1.52 itrillion) iin iFY20.

Total iassets iacross ithe ibanking isector i(including ipublic, iprivate isector iand iforeign ibanks) iincreased ito
iUS$ i2.52 itrillion iin iFY20.Indian ibanks iare iincreasingly ifocusing ion iadopting iintegrated iapproach ito

irisk imanagement. iThe iNPAs i(Non-Performing iAssets) iof icommercial ibanks ihas irecorded ia irecovery iof

iRs. i400,000 icrore i(US$ i57.23 ibillion) iin iFY19, iwhich iis ihighest iin ithe ilast ifour iyears.

As iper iUnion iBudget i2019-20, iinvestment-driven igrowth irequired iaccess ito ilow icost icapital, iand ithis
iwould irequire iinvestment iof iRs. i20 ilakh icrore i(US$ i286.16 ibillion) ievery iyear.

29
 RBI ihas idecided ito iset iup iPublic iCredit iRegistry i(PCR), ian iextensive idatabase iof icredit
iinformation, iaccessible ito iall istakeholders. iThe iInsolvency iand iBankruptcy iCode i(Amendment)

iOrdinance, i2017 iBill ihas ibeen ipassed iand iis iexpected ito istrengthen ithe ibanking isector. iTotal

iequity ifunding iof imicrofinance isector igrew i42% iy-o-y ito iRs. i14,206 icrore i(US$ i2.03 ibillion) iin

i2018-19.

Bank iaccounts iopened iunder ithe iGovernment’s iflagship ifinancial iinclusion idrive iPradhan iMantri iJan
iDhan iYojana i(PMJDY) ireached i40.05 icrore iand ideposits iin iJan iDhan ibank iaccounts istood iat imore ithan

iRs. i1.30 ilakh icrore i(US$ i18.44 ibillion).

Rising iincome iis iexpected ito ienhance ithe ineed ifor ibanking iservices iin irural iareas, iand itherefore, idrive
ithe igrowth iof ithe isector.

The idigital ipayments irevolution iwill itrigger imassive ichanges iin ithe iway icredit iis idisbursed iin iIndia.
iDebit icards ihave iradically ireplaced icredit icards ias ithe ipreferred ipayment imode iin iIndia iafter

idemonetisation. iPayments ion iUnified iPayments iInterface i(UPI) ihit ian iall-time ihigh iof i1.49 ibillion iin

iterms iof ivolume iwith itransactions iworth inearly iRs. i2.90 ilakh icrore i(US$ i41.22 ibillion) iin iJuly i2020.

30
The idigital ipayments irevolution iwill itrigger imassive ichanges iin ithe iway icredit iis idisbursed iin iIndia.
iDebit icards ihave iradically ireplaced icredit icards ias ithe ipreferred ipayment imode iin iIndia iafter

idemonetisation. iPayments ion iUnified iPayments iInterface i(UPI) ihit ian iall-time ihigh iof i1.49 ibillion iin

iterms iof ivolume iwith itransactions iworth inearly iRs. i2.90 ilakh icrore i(US$ i41.22 ibillion) iin iJuly i2020.

COMPANY iPROFILE:-

HISTORY

In i1985, ias ia iyoung i26-year iold ientrepreneur, iUday iKotak istarted iKotak iCapital iManagement iFinance
iLtd. i(which ilater ibecame iKotak iMahindra iFinance iLtd). iThe ivision iwas ito ieventually ibecome ia

ibanking icompany. iPrivate iIndian ibanks iwere inot ieven ia ispeck ion ithe ihorizon iat ithat itime. iOn i22nd

iMarch i2003, iKotak iMahindra iFinance iLtd. ibecame ithe ifirst inon-banking ifinancial icompany i(NBFC) iin

iIndia's icorporate ihistory ito ibe iconverted iinto ia ibank.

31
 Kotak iMahindra iBank iLtd. i(KMBL) iis iregarded ias ione iof ithe imost iefficient iand ihigh-performing
ibanks iin iIndia, ibuilt ion ithe iprinciples iof isimplicity iand iprudence. iUday iremains iunfazed iby imarket

ieuphoria iand ihis i'basics iof ibanking' iapproach ihas iensured ithat ithe iloan ibook iis iof ihigh iquality iand ithe

ibank iis iwell-capitalised. iIn ia ijourney ispanning inearly ithree idecades, ithe icompany ihas igrown iboth iin

iscale iand iin istature iunder ihis ileadership

Established iin i1985, ithe iKotak iMahindra igroup ihas ibeen ione iof iIndia's imost ireputed ifinancial
iconglomerates. iIn iFebruary i2003, iKotak iMahindra iFinance iLtd, ithe igroup's iflagship icompany iwas

igiven ithe ilicense ito icarry ion ibanking ibusiness iby ithe iReserve iBank iof iIndia i(RBI). iThis iapproval

icreated ibanking ihistory isince iKotak iMahindra iFinance iLtd. iis ithe ifirst inon–banking ifinance icompany iin

iIndia ito iconvert iitself iin ito ia ibank ias iKotak iMahindra iBank iLtd. iToday, ithe ibank iis ione iof ithe ifastest

igrowing ibank iand iamong ithe imost iadmired ifinancial iinstitutions iin iIndia.The ibank ihas iover i323

ibranches iand ia icustomer iaccount ibase iof iover i2.7 imillion. iSpread iall iover iIndia, inot ijust iin ithe imetros

ibut iin iTier iII icities iand irural iIndia ias iwell, iit iis iredefining ithe ireach iand ipower iof ibanking. iPresently iit

iis iengaged iin icommercial ibanking, istock ibroking, imutual ifunds, ilife iinsurance iand iinvestment ibanking.

iIt icaters ito ithe ifinancial ineeds iof iindividuals iand icorporates. iThe ibank ihas ian iinternational ipresence

ithrough iits isubsidiaries iwith ioffices iin iLondon, iNew iYork, iDubai, iMauritius, iSan iFrancisco iand

iSingapore ithat ispecialize iin iproviding iservices ito ioverseas iinvestors iseeking ito iinvest iinto iIndia.

32
Awards

• ICAI iAward i– iExcellence iin iFinancial iReporting iunder iCategory i1 i– iBanking iSector ifor ithe
iyear iending i31st iMarch, i2010

• Asiamoney i– iBest iLocal iCash iManagement iBank i2010

• IDG iIndia i– iKotak iwon ithe iCIO i100 i'The iAgile i100' iaward i2010

• Uday iKotak: iLifetime iAchievement iAward iat iMagna iAwards i2019 iby iBusinessworld
• Uday iKotak inamed ithe i‘Best iCEO iin iBanking iSector’ iat ithe iBusiness iToday iBest iCEO
iAwards i2019 i

• The iAsset iCountry iAwards i2019 iBest iBank i– iDomestic iaward

Products iand iServices

33
 The ibank ioffers icomplete ifinancial isolutions ifor iinfinite ineeds iof iall iindividual iand inon–individual
icustomers idepending ion ithe icustomer's ineed i– idelivered ithrough ia istate iof ithe iart itechnology iplatform.

iInvestment iproducts ilike iMutual iFunds, iLife iInsurance, iretailing iof igold icoins iand ibars ietc iare ialso

ioffered. iThe ibank ifollows ia imix iof iboth iopen iand iclosed iarchitecture ifor idistribution iof ithe iinvestment

iproducts. iAll ithis iis ibacked iby istrong, iin–house iresearch ion iMutual iFunds.

The ibank’s isavings iaccount igoes ibeyond ithe itraditional irole iof isavings, iand iallows ius ito iput iaside ia
ilot imore ithan ijust imoney. iThe iworry–free ifeature iof iSavings iAccount iprovides ia irange iof iservices ifrom

ifunds itransfer, ibill ipayments, i2–way isweep ithrough iour iActivMoney ifeature iand imuch imore. iWe ican

iplace istanding iinstructions ifor iinvestment ioptions ithat ican ibe ibooked ithrough iInternet ior ithrough iPhone

ibanking iservices. iThe iSavings iAccount ithus iprovides ifor iattractive ireturns iearned ithrough ia

icomprehensive isuite iproducts iand iservices ithat ioffer iinvestment ioptions, iall idelivered iseamlessly ito ithe

icustomer iby iwell iintegrated itechnology iplatforms.

Our Visioni

The iGlobal iIndian iFinancial iServices iBrand

Our icustomers iwill ienjoy ithe ibenefits iof idealing iwith ia iglobal iIndian ibrand ithat ibest iunderstands itheir
ineeds iand idelivers icustomised ipragmatic isolutions iacross imultiple iplatforms.

We iare ia iworld iclass iIndian ifinancial iservices igroup. iOur itechnology iand ibest ipractices iare ibench-
marked ialong iinternational ilines iwhile iour iunderstanding iof icustomers iwill ibe iuniquely iIndian.

The iMost iPreferred iEmployer iin iFinancial iServices

A iculture iof iempowerment iand ia ispirit iof ienterprise iattracts ibright iminds iwith ian
ientrepreneurial istreak ito ijoin ius iand ibuild ilong-term icareers iwith ius.Working iwith ia ihome

igrown iprofessionally imanaged icompany, iwhich ihas ibenefited ifrom ipartnerships iwith

iinternational ileaders, igives iour ipeople ia iperspective ithat iis iuniversal ias iwell ias iunique.

34
 COMPETITORS

➢ Axis iBank iLtd.

➢ City iUnion iBank iLtd.
➢ CSB iBank iLtd.
➢ DCB iBank iLtd.
➢ Dhanlaxmi iBank iLtd.
➢ Federal iBank iLtd.
➢ HDFC iBank iLtd.

International iRating S i& iP Outlook

Short iTerm A-3 Stable

Long iTerm BBB- Stable

Domestic iRating

Co. Debt CRISIL ICRA India iRatings

35
KMBL Short iterm i- iCD A1+ i i

FD FAAA i i

Long iTerm i- iLower iTier iII AAA/Stable AAA/Stable AAA/Stable

Senior iSubordinated idebt

Long iTerm i- iUpper iTier iII AAA/Stable i AA+/Stable

Senior iSubordinated idebt

Infra iBond AAA/Stable AAA/Stable AAA/Stable

Senior iDebt

Perpetual iNon-Cumulative iPreference AA+/Stable i i

ishares

KMPL Short iterm idebt A1+ A1+ -

Short iterm iBank iLoans i[BLR] A1+ - -

Long iTerm i- iSubordinated iBond AAA/Stable AAA/Stable -

Long iTerm i- iNCD AAA/Stable AAA/Stable -

Long iTerm i- iCash iCredit AAA/Stable AAA/Stable -

Long iTerm i- iBank iLoans AAA/Stable AAA/Stable -

36
 Nifty-Linked iDebentures PP-MLD PP-MLD iAAAr/Stable -
iAAAr/Stable

KMIL Short iTerm A1+ A1+ -

Long iTerm i- iDebenture AAA/Stable - -

Long iTerm i- iCash iCredit AAA/Stable - -

Long iTerm i- iBank iLoans AAA/Stable - -

Long iTerm i- iSubordinated iDebt AAA/Stable AAA/Stable -

Nifty iLinked iDebentures PP-MLD - -

iAAAr/Stable

KS Long iTerm i- iDebenture AAA/Stable AAA/Stable -

Short iterm i- iCP A1+ A1+ -

KIAL Long iTerm i- iBank iLoans AAA/Stable - -

Preference iShares AAA/Stable - -

Short iTerm iDebt A1+ - -

KIDFL Short iTerm A1+ A1+ -

37
 Long iTerm i- iDebenture AAA/Stable AAA/Stable -

CRISIL: Credit iRating iInformation iServices iof iIndia iLimited i(A iStandard i& iPoor's iCompany)

India iRatings: India iRatings i(A i100% isubsidiary iof ithe

iFitch iGroup)

ICRA: ICRA iLimited i(formerly iInvestment iInformation iand iCredit iRating

iAgency iof iIndia iLimited

Corporate iResponsibility
The iBank's iphilosophy iof icorporate igovernance igoes ibeyond ia iset iof ipolicies iand ipractices ito ipromote
iit ias ian iintegral ielement iof iKotak's iculture. iThe irobust icorporate igovernance iframework iof ithe iBank

iguides ithe iorganisation's iefforts ito iconduct ibusiness iin ian iethical, iresponsible iand itransparent imanner.

iDetails ion iKMBL's icorporate igovernance istructure iand istandards ican ibe ifound iin ithe i'Report ion

iCorporate iGovernance' isection iin iour ilatest iannual ireport.

38
Social iResponsibility i(CSR) iperformance iis ireviewed iby ithe iBank's iBoard iat iBoard iMeetings. iIn iFY
i2013-14, iKMBL iand iits isubsidiaries ireviewed iits iPolicy iStatement ion iCSR ito istrengthen iit iin

iaccordance iwith iSection i135 iand iSchedule iVII irequirements iof iCompanies iAct, i2013. iFurther, ithe iBank

iestablished ia iCSR iCommittee ito istrategically iguide iit iin ieffective iimplementation iof iits iPolicy

iStatement ion iCorporate iSocial iResponsibility. iThe iCSR iCommittee icomprises iof ione iindependent

idirector iand itwo iwhole itime idirectors.

Today, ithe iKotak iMahindra iGroup, ia ifirst-generation ienterprise iwith irevenue iof iUS$ i2.8 ibillion, ihas ia
iglobal ipresence, iemploys iover i30,000 ipeople iand iis irecognised ias ione iof ithe ileading iemployers iin

iIndia. iIt ihas ithe idistinction iof iproviding ia i48% iCAGR ito iits ishareholders iover ia i29 iyear iperiod. iThe

icore iof ithe ibusiness imodel iis i'concentrated iIndia, idiversified ifinancial iservices'.

Uday ihas ia istrong ifocus ion icommunity idevelopment iand iinclusive igrowth iwhich iis ireflected iby ithe
igroup's iinitiatives ito iprovide ilow-cost iservices ito irural icustomers iand iits iwelfare iprogrammes. iHe

istrongly ifeels ithat ieducation iis ikey ito ithe ialleviation iof ithe isocial imalaise iafflicting iIndia's iunder-

privileged. iIn ia ibid ito iaddress ithis iissue, ihe ihas iestablished ithe iKotak iEducation iFoundation, iwhich
ifocuses ion ithe ieducational ineeds iof iunderprivileged ichildren.

39
40
 CHAPTER- iIII

RESEARCH iMETHODOLOGY i

Review iof iliterature:-

M. iSYED iIBRAHIM i(2012)

iWrite ithat iVillage ieconomy iis ithe ibackbone iof iIndian ieconomy. iRural ibanks iplay ivery iimportant

irole iin ithe ieconomic idevelopment iof ia icountry. iThe iaim iof ithis ipaper iis ito ianalyze ithe irural icredit

irole iof iRRB’s iin ithe idevelopment iof irural ieconomy iand ialso ifinds iand iconcludes ithe iRRB’s iin

iIndia ihas isignificantly iimproved irural ieconomy. i

i B.MUNIRAJA iSEKHAR iAND iB.SUDHIR i(2012)

iIn ihis iresearch ipaper iwrite ithat iPrivate iand ipublic isector ibanks iare iriding ithe itechnology iwave ito

iemerge ias ifront irunners iin ithe iglobal ibanking iareas, ico-operative ibanks, ihave ibeen ilaggards iwhen

iit icomes ito itechnology iadoption. iCo-operative ibanks ifor irealize ithe ineed ito ienlarge ithe ibase iof

icomputerization iand isee ithat ithe ireal ibenefits iare idelivered iat iall ithe ilevels.

RANJANA iYOVAGAL i(2014) i

Write ithat ithe iPower iof itechnology ihas ifuelled ibanking ibusiness iand iactually itransformed
itraditional ibanking isystem. iThe iimpact iof iInternet ibanking ion icost isavings, irevenue igrowth iand

iincreased icustomer isatisfaction ion iIndustry iis itremendous iand ican ibe ia ipotential itool ifor ibuilding ia

isound istrategy ifor ithe idevelopment iof ithe ieconomy iof ithe icountry. iThe idevelopment iand ithe

iincreasing iprogress ithat iis ibeing iexperienced iin ithe iInformation iand iCommunication iTechnology

ihave ibrought iabout ia ilot iof ichanges iin ialmost iall ifacts iof ilife. iE-banking iis iconvenient, inot itime

ibound, iwithout igeographical iboundaries iwith ilow icost iservices.

iiiiiiii JYOTI iGUPTA iAND iSUMAN iJAIN i(2012)

41
 iPurpose iof ithis ipaper ito iknow ithe ilending ipractices iof ico-operative ibanks iin iIndia iand imeasure iand

icompare ithe iefficiency iof ico- ioperative iBank iof iIndia iand ito istudy ithe iimpact iof isize ion ithe iefficiency iof

ithe ico- ioperative iBanks.

iii Haron iand iAzmi i(2016)

iasserted ithat, imost ibusiness iorganizations, iespecially iin ideveloping icountries iare ihighly idependent ion

ibank iloans ias ia isource iof icapital iand ithe iability iof ibanks iin igiving iloans idepends imuch ion itheir iability

ito iattract ideposits. iFreix ias iand iRochet i(2008), ias icited i iin i iFouopi-Djiogap i iand i iNgomsi i(2012), i

inoted i ithat i ibank i iloans i iare ione i iof i ithe i imost iimportant ilong-term ifinancing isources iin imany

icountries. i i

Fernando i iFerreng i i(2016)

i iit i iis i igenerally i iagreed i ithat i irecent i ieconomic i icrisis i iintensified iworldwide icompetition i iamong

ifinancial i iinstitution. iThis icompetition i ihas idirect iimpact i ion ihow i ibank ideal i iwith i itheir icustomer i iand

iachieve i iits i iobjectives i iperformance ievaluation i iof ibanks iis ithe ikey ifunction ifor iimproving ibanks

iperformance. iBanks iprofitability iand isuccess ito ia ilarge iextent idepends ion ibank ibranch ifinancial

iperformance.

ManishMittal i iand iArunnaDhademade i(2015) ithey i ifound ithat i ihigher iprofitability iis i ithe ionly imajor
iparameter ifor ievaluating ibanking isector iperformance ifrom ithe ishareholders ipoint iof iview. i iIt iis ifor ithe i

ibanks ito istrike ia i ibalance ibetween icommercial i iand isocial iobjectives. iThey ifound ithat i ipublic isector

ibanks iare i iless iprofitable i ithan iprivate isector i ibanks. iForeign ibanks itop ithe ilist iin iterms iof inet

iprofitability. iPrivate isector ibanks iearn ihigher inon-interest iincome ithan ipublic isector ibanks, ibecause

ithese ibanks ioffer imore iand imore ifee-based iservices ito ibusiness ihouses ior icorporate isector. iThus, ithere

iis iurgent i21 ineed ifor ipublic isector ibanks ito iprovide isuch iservices ito istand iin icompetition iwith iprivate

isector ibanks.

ii Vasantdesai i(2015):

42
iThe iReserve iBank iof iIndia iplays ia ivery ivital irole. iIt iis iknown ias ithe ibanker’s i ibank. i iThe i iReserve i

iBank i iof i iIndia i iis i ithe i ihead i iof i iall i ibanks. i iAll i ithe i imoney iformulations i iof i icommercial i ibanks i

iare i idone i iunder i ithe i iReserve i iBank i iof iIndia. i iThe i iRBI iperforms iall i ithe itypical ifunctions iof i ia

igood icentral ibank ias iit i iis iinvolved i iin iplanning i ithe ieconomy iof ithe icountry. iThe imain ifunction iis ithat

ithe iRBI ishould icontrol itheir icredit. iIt iis imandatory ifor ithe iBank ito imaintain ithe iexternal ivalue iof ithe

irupee. iMajor ifunction iis ithat iit ishould ialso icontrol ithe icurrency.

STATEMENT iOF iTHE iPROBLEM

Loan iis ione iof ithe imajor ielements iof ifinance ito ia icommon iman. iThe ibanks iadvance imoney iin ino
iof iways ilike iHousing iLoan, iEducation iLoan, iProperty iLoan, iPersonal iLoan, iVehicle iLoan, iEtc.

i i i i i i iBanks iusually ifollow idifferent iprocedure ifor iadvancing idifferent itypes iof iloan iand iadvances.

iIn iorder ito iknow ithe idifferent iprocedure iin isanctioning idifferent ikinds iof iloans iand ithe irate iof

iinterest icharged ito idifferent itype iof iloan ithis istudy ihas ibeen iundertaken.

OBJECTIVES iOF iTHE iSTUDY

➢ To ianalyze idifferent itypes iof iloans iand iadvances imade iby iKOTAK iMAHINDRA iBANK.
➢ To ilist iout isome iimportant iloans iand iadvance iof ithe iInterest iKOTAK iMAHINDRA iBANK
iand ithere iinterest irates iand isecurity ineeded ifor igranting iloans iand iadvances.

➢ To ianalyze ithe ifinancial iposition iof ithe iKOTAK iMAHINDRA iBANK.

➢ To imake isuggestions iand irecommendations ibased ion ithe istudy

SCOPE iOF iTHE iSTUDY

43
The istudy icovers ithe ifollowing: iMeaning iof iloans iand iadvances, iUtility iof iloans iand iadvances,
iBorrowing irate iand ilending irate, iLending iof imoney, iNature iand isecurity iof iloans, iProcedure iof

igranting icash icredit, ioverdraft iand idiscounting ibills, iStatutory i& iother irestrictions ion iloans i&

iadvances, iThe iAdvantages iand iDisadvantages iof iLoans, iEngaging irecovery iagents iby ibanks,

iFunctions iof icommercial ibanks, iThe irole iof icommercial ibanks, iTypes iof iloans igranted iby

icommercial ibanks, iThe istudy iis ilimited ito ithe iinformation iprovided iby ithe ibank iofficials.

SOURCES iOF iDATA

Primary iData:

The iprimary idata ihas ibeen icollected idirectly ifrom ithe iexecutives iand iemployees iof ithe iKOTAK
iMAHINDRA iBANKby ipersonal iinterview.

Secondary iData:

The isecondary idata ihas ibeen icollected ifrom ivarious ipublished iand iunpublished isource ilike:
iBroachers, iDirector’s ireports, ipublished iFinancial iStatements iof ithe iKOTAK iMAHINDRA iBANK,

iKOTAK iMAHINDRA iBANKofficial iwebsites iand iAnnual igeneral imeeting.

REFERENCE iPERIOD

This ireference iperiod iis iselected ifor ithe istudy ifor ilast i4 iyears ii.e. i2014-15 ito i2018-19. iThis istudy
iwas idone ion iinterpretation iwhat imade iby icomparing ivarious idata iduring iresearch iwork.

STATISTICAL iTOOLS iUSED iFOR iDATA iANALYSIS

The istatistical itools iused ito ianalyze ithe idata iare:

Percentages

Column iChart

LIMITATION iOF iTHE iSTUDY

44
All ithe ipossible icare ihas ibeen itaken ito icollect ithe iinformation iand imake ithe istudy ias iauthentic ias
ipossible. iHowever iit iis isubjected ito icertain iinformation. iThey iare ias iunder:

➢ All ithe ifindings iand irecommendations, iwhich iare istated, iare iapplicable ionly ifor ithe icurrent
iperiod.

➢ The istudy iis ilimited ito ithe iextent ito ithe idata igiven iby ithe ibank.
➢ Based ion ilimited iinformation iit iis inot ipossible ito iarrive iat ia iproper iconclusion.
➢ The iinterpretation iof ithe istudy iis inot icomplete ias iprimary irecords iof ithe ibank iare iinaccessible
iexcept iAnnual ireports.

➢ The iAccuracy iof ithe istudy idepends ion ithe iaccuracy iof iinformation iand irecords iprovided iby
ithe iKOTAK iMAHINDRA iBANK.

➢ CHAPTER iSCHEME

CHAPTER i1-INTRODUCTION iTO iLOANS iAND iADVANCES

This ichapter icovers-Meaning iof iloans iand iadvances, iUtility iof iloans iand iadvances, iBorrowing irate
iand ilending irate, iLending iof imoney, iNature iand isecurity iof iloans, iProcedure iof igranting icash

icredit, ioverdraft iand iother irestrictions ion iloans i& iadvances, iThe iAdvantages iand iDisadvantages iof

iLoans, iEngaging irecovery iagents iby ibanks, iFunctions iof icommercial ibanks, iThe irole iof

icommercial ibanks, iTypes iof iloans igranted iby icommercial ibanks, iThe istudy iis ilimited ito ithe

iinformation iprovided iby ithe ibank iofficials.

CHAPTER i2 i- iPROFILE iOF iTHE iKOTAK iMAHINDHRA iBANK iLTD.

This ichapter icovers iHistory iof ikotak iMahindra ibank ilimited, iVision iand imission iof ithe
iorganization. iIndustry iprofile iperformance iof ibanking iin iIndia. iSWOT ianalysis iof ibanking iand

iorganization istructure, iareas iof ioperation iand iobjectives iof ithe iorganization.

CHAPTER i3 i- iRESEARCH iDESIGN

45
This ichapter iincludes i-Statement iof ithe iproblem, iobjectives iof ithe istudy, iscope iof ithe istudy,
isources iof idata iCollection, iReference iperiod, iStatistical itools iused ifor idata ianalysis, ilimitation iof

ithe istudy.

CHAPTER i4 i- iANALYSIS iAND iINTERPRETATION iOF iTHE iKOTAK iMAHINDRA

iBANK

ii

i i i i i i iThis ichapter iincludes iall itables i& icharts, iinterpretation i& ianalysis ishowing iLoans iand

iadvances, iIncome iStatement, iBalance isheet ifor ithe iyear iending i2015-16 ito i2019-2020.

CHAPTER i5 i- iSUMMARY

This ichapter icovers iFindings, iConclusion iand iSuggestion.

46
 CHAPTER i– iIV

DATA iANALYSIS iAND iINTERPRETATION

Table iNo i4.1

Table iShowing iConsumer iLending ifor ithe iPeriod i2015-2016 ito i2019-2020
% iOf iTotal
Amt
Year Total iLoans Consumer ilending

2015-2016 32,410 13,202 40.73

2016-2017 44,229 18,996 42.95

2017-2018 60,196 27,159 45.12

2018-2019 82,422 30,944 37.54

2019-2020 1,15,888 44,989 38.82

Chart iNo i4.1

Chart iShowing iConsumer iLending ifor ithe iPeriod i2015-2016 ito i2019-2020
47
 % Of iotal
% Of Total

40.73 42.95 45.12 37.54 38.82

0 0 0 0 0 0
Consumer lending 13,202 18,996 27,159 30,944 44,989
Total Loans 32,410 44,229 60,196 82,422 1,15,888
Year 2014-2015 2015-2016 2016-2017 2017-2018 2018-
2019

Analysis iand iinterpretation:-

The iabove itable iand iChart ishows ithe iconsumer iposition iyear iby iyear. iIt iwas i40.73% iof itotal iloans
ilend iby ibajaj ifinserv. iBut iit iincreased ito i42.95% iin i2015-16 iand i45.12% iin i2016-17. iBut iit

idecreased iin i2017-18 ito i37.54% iand iagain iit iwas iincreased ito i38.82%.

The itotal iConsumer iloans iissued iby ithe iKOTAK iMAHINDRA iBANKis iincreased iyear iby iyear ibut
iwhen icompared ito ithe i itotal iloans iit iwas ifluctuating ionce iit iwas iincreased iand iit iwas idecreased. i

Table iNo i4.2

Table iShowing iSME iLending ifor ithe iPeriod i2015-2016 ito i2019-2020

% iOf iTotal
Amt
Year Total iLoans SME iLending

2015-2016 32,410 15,550 47.98

2016-2017 44,229 18,692 42.26

48
 2017-2018 60,196 22,082 36.68

2018-2019 82,422 11,434 13.87

2019-2020 1,15,888 15,759 13.60

Analysis iand iinterpretation:-

The iabove itable iand ibelow iChart ishows ithe iSME iposition iyear iby iyear. iIt iwas i47.98% iof itotal
iloans ilend iby iBajaj iFinserv. iBut iit idecreased ito i42.26% iin i2015-16 iand i36.68% iin i2017-18 iagain

idecreased iin i2017-18 ito i13.87% iand iagain iit iwas idecreased ito i13.60%.

The itotal iSME iloans iissued iby ithe iKOTAK iMAHINDRA iBANKare iincreased iyear iby iyear ibut
iwhen icompared ito ithe itotal iloans iit iwas idecreased iyear iby iyear. i

Chart iNo i4.2

Chart iShowing iSME iLending ifor ithe iPeriod i2015-16 ito i2019-20

49
 % Of iotal
50
45
40
35
30
25
20
15 % Of Total
10
5
0
SME Lending 15,550 18,692 22,082 11,434 15,759
Total Loans 32,410 44,229 60,196 82,4221,15,888
Year 2015-20162016-20172017-20182018-2019
2019-2020

Table iNo i4.3

Table iShowing iRural iLending ifor ithe iPeriod i2015-16 ito i2019-20
% iOf iTotal
Amt
Year Total iLoans Rural iLending

2015-2016 32,410 333 1.03

2016-2017 44,229 1,339 3.03

2017-2018 60,196 3,072 5.10

2018-2019 82,422 5,458 6.62

2019-2020 1,15,888 9,243 7.98

Chart iNo i4.3

50
Chart iShowing iSME iLending ifor ithe iPeriod i2015-16 ito i2019-20

Series 1
3
Series 2
Series 3
2

0
Category 1 Category 2 Category 3 Category 4

Analysis iand iinterpretation:-

The iabove itable iand iChart ishows ithe iRural iLending iposition iyear iby iyear. iIt iwas i1.03% iof itotal
iloans ilend iby ibajaj ifinserv. iBut iit iwas iincreasing iyear iby iyear iwhen iwe iobserve ithe iabove itable

iwe ican isee ithe iyear iby iyear iincreasing iit iwas iincreased ito i7.98% iin i2019-20

The itotal iRural iloans iissued iby ithe iKOTAK iMAHINDRA iBANKis iincreased iyear iby iyear ieven iin
iwhen icompared ito iother itype iof iloans ithe irural ilending iloans iare iincreasing iyear iby iyear.

51
Table iNo i4.4

Chart iShowing iCommercial iLending ifor ithe iPeriod i2015-16 ito i2019-2020

Analysis iand iinterpetation:-

The iabove itable iand ibelow iChart ishows ithe iCommercial iLending iposition iyear iby iyear. iIt iwas
i10.26% iof itotal iloans ilend iby ibajaj ifinserv. iBut iit iincreased ito i11.76% iin i2016-17 iand i13.10% iin

i2017-18 i iin i2018-19 ito i41.96% iand iwas ireduced ito i39.60%.

The itotal iRural iLending iloans iissued iby ithe iKOTAK iMAHINDRA iBANKare iincreased iyear iby
iyear ibut iwhen icompared ito ithe itotal iloans iit iwas idecreased iyear iby iyear. i

Chart iNo i4.4

Chart iShowing iCommercial iLending ifor ithe iPeriod i2015-2016 ito i2019-2020

52
 10
9
8
7 Series1
6 Series2
5 Series3
4
Series4
3
2
1

0 0.2 0.4 0.6 0.8 1 1.2

Scheme iChart ifor iloan iapproval

Schemes Description

12/4 It imeans ithe i4months ipayment iwill ibe itaken ias ian iadvance iand iremaining
ipayment iwill ibe idistributed iin i8 imonths.

10/2 It imeans ithe i2 imonths ipayment iwill ibe itaken ias ian iadvance iand iremaining
ipayment iwill ibe idistributed iin i8 imonths.

18/6 It imeans ithe i6 imonths ipayment iwill ibe itaken ias ian iadvance iand iremaining
ipayment iwill ibe idistributed iin i12 imonths. iAnd iit iis ilong iterm ischeme.

24/6 It imeans ithe i6 imonths ipayment iwill ibe itaken ias ian iadvance iand iremaining
ipayment iwill ibe idistributed iin i18 imonths. iAnd iit ialso ilong iterm ischeme.

10/0 It imeans ithere iis ino iany iadvance ipayment iwill ibe itaken, iall ipayment iwill
ibe idistributed iin i10 imonths.

4.1 iCASE iSTUDY:

Name iof ithe iApplicant Mr. iRanjeet iKumar

Age i i i i i i i i i i i i i i i i i i 35 iyear

53
Permanent iAddress i i i i i i i i i i i i i i i i i i i i i i i i i iGulmohar iPark, iITI iRoad

i i i i i i i i i i i i i i i i i i inear iICICI iBank, iAundh

i i i i i i i i i i i i i i i i i i iPune i-411007

Residential iAddress i i i i i i i i i i i i i i i i i i i i i i i i i iMahatma iGandhi iRoad i

i i i i i i i i i i i i i i i i i i i i iBangalore, ikarnataka- i560001

iiiiiiiiii

Occupation i i i i i i i i i i i i i i i i i i i i i Service

Company iName i i i i i i i i i i iii capgemini

Salary i i i i iiii i i i i i i i i i i i i i80,000/-PM

Purchase iof iProducts

I. Samsung iLED iTV

II. Samsung iWashing iMachine

Cost iof iProducts

I. Rs.40,000
II. Rs.35,000

Document iRequired ifor iLoan

I. Address iProof:- iRent iagreements, ielectricity ior igas ibills.

II. ID iProof: i- iPan iCard ior iVoting iCard ior iDriving iLicense.

III. Income iProof:- iSBI iplatinum icredit icard

IV. i iProblem i:- i i i i i i i iAddress iProof

Mr.Ranjeet iKumar ihas ithe iaddress iproof ibut ithis iAddress iProof iof iother icity, iso ias iper iloan
irequirement iaddress iproof ishould ibe iof icurrent icity i

54
Name iof ithe iApplicant i- i i iMr.Ranjeet iKumar

Table iNo.4.4 iCase iStudy i1

Particular Eligibility icriteria ifor iloan Applicable ifor iLoan

approval

Occupation Service ✓

Company iName SunGard ✓

Salary Rs.9,60,000 iPA ✓

House Rented ✓

Place(Stay) bangalore ✓

Document iRequired

Address iProof Bank iStatement ✓

ID iProof PAN iCard i,Voting iCard ✓

Credit iCard SBI iCredit iCard i(Platinum) ✓

Products

Samsung i40’ iLED iTV Rs.40,000 ✓

Samsung iWashing iMachine Rs.35,000 ✓

Solution:-

a. Calculation iof iEMI iand iDown ipayment:

Scheme-:12/4 i(Ref.Table iNo.4.1)
Cost iof iProduct-: iRs.75, i000
Down ipayment i-:Rs.25, i000 i(Rs.75, i000/12*4)
EMI-: iRs.6250*8 iMonth= iRs.50, i000

55
 b. How ito iApprove ithe iLoan:
I. Minimum iRequired iSalary ifor itaken ia iloan i–Rs.8000/-and iAbove, iSo iMr.Ranjeet iKumar ihas
iRs.80000/-PM iSalary iso ihe iis iapplicable ifor iloan.

II. As ian iaddress iproof ifor itaken ia iloan iit iis imust ito iMr.Ranjeet iKumar ito isubmit ieither iRent
iagreement ior icredit icard istatement iwhich iis ion icurrent icity iaddress.

As ian iID iproof irequirement ihe ishould ibe iprovide ivoting icard ior iPAN iCard ior iPassport.

Case iNo.4.2

Name iof ithe iApplicant i i i i i iMs.Smita iBadiyani

Age i i i i i i i i i iiiiiiiiiiiii 26 iyear

nd
Residential iAddress i i i i i i i i i i i i i i i i i i i i i i i990A, iouter iring iroad, i2 iphase

i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i iHosakerehalli, iBangalore,

i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i iKarnataka-560085

Occupation iii iiii i i i i i i i i i iService

Company iName iiiiiii i i i i i i i iInfosys, iPune

Salary i i i i i iiiiiiiiiiiiiii i i i i i i i i i i i i50,000/-PM

Purchase iof iProducts i

I. LG iRefrigerator i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

Cost iof iProducts i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

I. Rs.36,000

Document iRequired ifor iLoan i i i i i

56
 I. Address iProof:-Rent iAgreements
II. ID iProof: i- iPan iCard ior iVoting iCard ior iDriving iLicense. iAnd imarriage iCertificate.
III. Income iProof:-3 iMonth iBank iStatement.

Problem i i i i i i i i i iID iProof

As iper ithe idocuments irequire ifor ithe iapproval iof iloan, iMs.Smita iBadiyani ishould isubmit ithe iID
iProof iof ishe’s icurrent iname.

Name iof ithe iapplicant i- iMs.Smita iBadiyani

Table iNo.4.5: iCase iStudy i2

Particular Eligibility icriteria ifor iloan Applicable ifor iLoan
iapproval

Occupation Service ✓

Company iName Infosys ✓

Salary Rs.6,00,000 iPA ✓

House Rented ✓

Place Kondhwa ✓

Document iRequired

Address iProof Rent iAgreement ✓

ID iProof Marriage iCertificate ✓

Bank iStatement 3 iMonth ibank istatement ✓

Product

LG iRefrigerator Rs.36,000 ✓

Solution:
a. Calculation iof iEMI iand iDown ipayment:
Scheme-:12/4(Ref.Table iNo.4.1) i

57
 Cost iof iproduct-:Rs.36, i000
Down ipayment-: iRs.12, i000 i(Rs.36, i000/12*4)
EMI-: iRs.3000*8 iMonth i= iRs.24, i000

b. How ito iapprove ithe iLoan:

I. She ihas ithe i50,000 iPM isalary; ithe iminimum isalary ishould ibe i8000 iPM, iso ishe iis iapplicable
ifor ithe iloan.

II. As iper ithe irequirement iof iloan iapproval idocument, iif ilender ileaves ion ithe iRent ibases ithen ihe
ior ishe ishould isubmit ithe iRent iagreement iwhich iwould ibe ion iRs.1000/- istamp ipaper. iThis

idocument icriteria ifulfilled iby iMs.Smita iBadiyani.

III. For ithe iID iProof irequired ithe iPAN iCard, iVoting iCard iand iDriving iLicenses.
iMs. iBadiyani ihas ithe iPAN iCard ibut iproblem iis ithat ishe’s iis inot ihaving ithe icurrent iname ii.e.

iafter imarriage ion ithe iPAN iCard. iFor isolving ithis iproblem, iwe ihave itaken ithe iMarriage

iCertificate ialong iwith iPAN iCard iCopy.

IV. iFor ithe iIncome iProof irequired iCredit iCard, ior iExisting iCustomer ior iany ibank iloan ias iwell ias

i3 iMonth iBank iStatement, iSo ishe ihave ithe i3 iMonth iBank iStatement ifrom iFeb ito iMay, iand

ialso iher i780 iscore iin iCIBIL irecords.

Case iNo.4.3

Name iof ithe iApplicant Mr.Anurag iKasat

Age i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i 45year

58
 Residential iAddress i i i i i i i i i i i i i iShree iNiwas, iITI iRoad,

iiiiiiiiiiiiiiiiii i i i i i i i i i inear iCroma iShowroom,aundh

iiiiii i i i i i i i i i iBangalore i-560016

Occupation iiii iiiii Service

Company iName i i i i i Mahindra iand iMahindra

Salary i i i i iiii 50,000/-PM

Purchase iof iProducts i

I. Sony iLED iTV

Cost iof iProducts i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

I. Rs.52,000

Document iRequired ifor iLoan i i i i i

I. Address iProof:-Electricity iBill, iTelephone iBill, iPassport

II. ID iProof: i- iPan iCard ior iVoting iCard ior iDriving iLicense ior iPassport
III. Income iProof:-HDFC iCredit i

Problem i nil

Mr. iAnurag iKasat ihas iall ithe irequired idocuments iare icorrect iso iwe iprovide ithe iloan ifor ithe
ianurag ikasat iwithout iany iproblem.

Name iof ithe iapplicant:-Mr.Anurag iKasat i(Existing iCustomer)

Table iNo.4.6: iCase iStudy i3

Particular Eligibility icriteria ifor iloan Applicable ifor iLoan

iapproval

59
 Occupation Service ✓

Company iName Mahindra iand iMahindra ✓

Salary Rs.6,00,000 iPA ✓

House Own ✓

Place Aundh ✓

Document iRequired

Address iProof Passport ✓

ID iProof Passport ✓

Credit iCard HDFC iBank ✓

Product

Sony iLED Rs.52,000 ✓

Solution:-

a. Calculation iof iEMI iand iDown ipayment:

Scheme: i10/0 i(Ref.Table iNo.3.1)
Cost iof iproduct: iRs.52, i000
Down iPayment: iRs.250 i(Processing iFess)
EMI: iRs.5200*10 iMonth=Rs.52, i000

b. How ito iapprove ithe iloan:

I. Mr.Anurag iKasat ihas ithe iExisting iCustomer iof iKOTAK iMAHINDRA iBANKLending, ifor ithe
iExisting iCustomer ican ipay ithe idown ipayment ithrough icash ias iwell ias icredit ior iDebit iCard.

iSo iMr.Kasat ipays ithe idown ipayment iby icash.

II. Due ito ithe isystem iError ithe iloan ihas ibeen irejected, iWhen ithe iMr.Kasat ihas iproduced ithe icopy
iof iNOC ito ithe iKOTAK iMAHINDRA iBANKLending. iThen ithe iCompany isorts iout ihis

iproblem iby iupdating ithe iprevious iloan ihistory iof iMr.Kasat.

60
III. For ireflecting ithe idatabase ichanges isystem irequired ithe iduration iof ione imonth iso iafter
ireflecting ithe ichanges ihis iloan iget iapproved.

Case iNo.4

Name iof ithe iApplicant i i i i i i i iMr. iChandra iSekhar iReddy

Age i i i i i i i i i i i i i i27 iyear

Residential iAddress i i i i i i i#10, iVivekananda ilayout,

ii i i i i i i i i iMarathalli, imunnekolal

ii i i i i i i i i iBangalore i-560068

Occupation i i i i i i i i i i i i i i i i i i i i i i i i i i i i i iService

Company iName i i i i i iOne iIndian iBSC

Salary i i i iiiiiiiiiiiii i i i i i35,000/-PM

Purchase iof iProducts i

I. Sony iLED iTV

II. Samsung iWashing iMachine

Cost iof iProducts i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i

I. Rs.42,000
II. Rs.30,000

Document iRequired ifor iLoan i i i i i

I. Address iProof:-Electricity iBill, iTelephone iBill, iPassport

II. ID iProof: i- iPan iCard ior iVoting iCard ior iDriving iLicense ior iPassport
III. Income iProof:-ICICI iBank iCredit iCard

Problem iID iProof iName

Name iof iMr. iChandrasekhar iReddy ion ithe icredit icard iand iPan iCard iis imismatch ii.e. iChandra
isekhar ion icredit icard iand iChandra ireddy ion iPAN iCard.

Name iof ithe iapplicant:-Mr.Chandra iSekhar iReddy

61
Table iNo.4.7: iCase iStudy i4

Particular Eligibility icriteria ifor iloan Applicable ifor iLoan

iapproval

Occupation Service ✓

Company iName Alfa iLaval ✓

Salary Rs.4,20,000 iPA ✓

House Own ✓

Place Bangalore ✓

Document iRequired

Address iProof Electricity iBill ✓

ID iProof Pan iCard ✓

Credit iCard ICICI iBank ✓

Product

Sony iLED Rs.42,000 ✓

Samsung iwashing iMachine Rs.30,000 ✓

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 Solution:- i
a) Calculation iof iEMI iand iDown ipayment:

Particular Sony Samsung

Scheme 18/4 12/4

Cost iof iproduct Rs.42,000 Rs.30,000

Down iPayment Rs.9,336 i(Rs.42,000/18*4) Rs.10,000(Rs.30,000/12*4)

EMI Rs.2,334*14 iMonth=Rs.32,676 Rs.2,500*8 iMonth=Rs.20,000

b) How ito iapprove ithe iLoan:

I. Mr.Akshay iKadam ihas ithe ientire idocument ii.e. iAddress iProof, iID iProof, iand iIncome iProof,
ibut ihe iis ionly ihaving ithe iproblem iwith iID iProof.

II. For isolving ithe iID iProof iproblem iwe ihave itaken ithe iGovt.Gadget iLetter ifrom ihim.

Case iNo.5

Name iof ithe iApplicant iiiiii Mr. iAvinash iThite

Age i i i i i i i i iiiiiiiiii 50 iyears

Permanent iAddress i i i i i i i i i i Kariyamanna iagrahara iroad,

iiiiiiiiiiiiiii Dashabhuja iGanesh iTemple, i
iiiiiiiiiiii Kadubesenahalli, iBangalore-560103

Occupation i i i i i i i i i i i i i i i i i i i i i i Own iBusiness

Company iName i i i i i i i i i i i i i iOmkar iTrading

Purchase iof iProducts

I. Sony i iLED iTV

II. Sony iHome iTheater

Cost iof iProducts

I. Rs.52,000
II. Rs.35,000
63
 Document iRequired ifor iLoan

I. Address iProof:-Electricity iBill, iIndex-II, iTelephone iBill.

II. ID iProof: i- iPan iCard, iVoting iCard, iDriving iLicense. iand iPassport.
III. Income iProof: i- iCredit iCard, iAny iBank iLoan.

Problem i i i iCase irejected idue ito iless iCIBIL iScore

CIBIL iScores iRequired iCriteria:-

Minimum iCIBIL iScore irequired ifor iloan iapproval iis i750 ior imore; iMr.Avinash iThite ihas i710
iCIBIL iScore, iHis iscore ibelow ithe icriteria iso iloan ihas ibeen irejected.

Application iprocess ifor iloan iapproval:

➢ First ipitch ithe icustomer,after ipitching ithe icustomer ithe inext iprocess iis ito iexplore ithem ioverall
iloan iprocess iof i0% iinterest isceheme i.Once ithe icustomer iis iagreed, ithen iask ithe icustomer ifor

ithe irequired idocuments ilike iID-proof, iAddress iproof i ii.e ivoter iID,driving ilicence,aadhar icard

iand icancelled icheque ietc ito iapprove ithe iloan.After icompliting ithe isubmition iprocedure iof i

idocumentation,the inext istep iis ito idecide ithe isurrogate iof ithe icustomer.

➢ Customer ishould ibe ifill iup ithe iapplication iform,then ithe idetails iof icustomer iget istored iby ithe
iexecutives iin ito ithe isales iforce isoftwear.

➢ Once iall ithis iloan iprocess iis idone, ithe iunique icase iID iwill ibe igenerates. iThen iall ithe icontrol
igoes iin ito ithe ihand iof icompany iapproval idepartment.

➢ After iapproval iof iloan i, icustomer ishould isign ithe iagreement idocument i(which iincludes ithe
iterms iand iconditions), ithen inext iprocess iis ito igenerate ithe iinvoice iof iloan iand iproduct

iamount. i

➢ On ithe ibasis iof iinvoice,memo iof idisbursement iis igets igenerate.

➢ Along iwith ithe iloan iprocedure idocuments, idisbursment imemo iwill iget iforward ito ithe iKOTAK
iMAHINDRA iBANK, iPune ibranch ioffice ipremises. iThen iall ithe iattached idocuments iare

iscrutinze iby ithe ioperational idepartment iof ibajaj ifinserv’s. i

➢ Once ithe iloan iprocedure iof ithe icompany iis isatisfied ithen ithis idouments iget isealed iby ithe
iapproval istamp.

64
i Surrogates iRequired ifor iLoan iApproval:
There iare itwo itypes ipolicy iare ias ibelow:
A.WOW iPolicy
B.WOW iLite iPolicy

A.WOW iPolicy:

WOW iPolicy imostly iused ifor ithose icustomer iwho iare iin ithe ilisted icompanies, ihave ithe icredit icard, ias
iper ithe irule iof icompany ithe imaximum iLoan ito iValue(LTV) i83% ito i90% iit idepend ion ithe icustomer

idocument.

Following iare ithe iSurrogates iincluded iin ithat iPolicy:

Credit iCard i(Max iLTV i83% iup ito i125000)
Listed iCompanies i(Max iLTV i90% iup ito i100000)
RC iof iVehicle i(Max iLTV i83%)
iExisting iCustomer i(Max iLTV i90% iup ito i50000)

CIBIL iScore i(Max iLTV i90% iup ito i125000)

Salaried i(Max iLTV i90% iup ito i125000)
Instant

B.WOW iLite iPolicy:

WOW iLite iPolicy iused ifor ithose icustomers iwhose inet iexposure iis iup ito25000 ito i35000.and ias iper ithe
icompany irules ithe imaximum iLoan ito iValue i(LTV) iis i83% ifor iall isurrogates.

Following iare ithe iSurrogates iincluded iin ithat iPolicy:

Credit iCard i(Max iLTV i83% iup ito i35000)
Listed iCompanies i(Max iLTV i83% imin isalary i7500)
RC iof iVehicle i(Max iLTV i83% iup ito i25000)
Existing iCustomer i(Max iLTV i83%)
CIBIL iScore i(Max iLTV i83%)
Salaried i(Max iLTV i90% iMin inet isalary i7500)

65
 CHAPTER i– iV

i FINDINGS
➢ While ipaying ithrough icredit icard, ithat imuch iamount iis iblocked ifrom ithe icard. iAs ithere iis
imonthly ilimit iin ieach icard, iso iit iis iwise ito igo ifor iKOTAK iMAHINDRA iBANKLending.

➢ KOTAK iMAHINDRA iBANKLending iprovided iloan ion iconsumer idurable iproduct ito ithe
icustomer ias iper ithe isurrogates.

➢ Flexible iEMI ischeme iin imany iproducts iare iavailable. iKOTAK iMAHINDRA iBANKLending
iprovides imany ischemes isuch ias i12/4, i10/2, i18/6, i24/6 ietc. iCustomer ican ichoose iany iEMI

iScheme ioption iaccording ito itheir ipaying icapability. i

➢ As iper ithe irequirement iof ifinance icompany ifor iaddress iproof iwould ibe irequired icurrent iplace
iproof, iand ifor iID iproof irequired ithe ivalid iname iof iperson iit ishows iwith ithe ihelp iof icase

istudies.

➢ Consumer ilending iis iincreasing iyear iby iyear ibut iit iis ia ismall i% iincrease iin ithe iloans.
➢ The iSME i(small iand imedium ienterprise) iLoans iare idecreased iyear iby iyear. iThe inearly i20%
idecrease iyear iby iyear iwhen icompared ito iprevious iyears

➢ The irural ilending iwas iincreased iyear iby iyear ibut ithe iincreasing iis iaround i2%onnly iwhen
icompared ito ithe itotal iloans.

➢ The icommercial iLending idrastically iincreased iafter ithe i2017 iFY. iThe isudden iincrease iof
i20% iin ithe i2017 iand iit iwas idecreased i2%.

➢ Based ion ithe icustomer ireview iawareness ion ithe ino icost iEMI ipolicy iis iaround i60%.
➢ The ibehavior iof ithe iBajaj iFinance iEmployees iis igood ionly ithe i3 imembers iout iof i42 iare
igiven ibad irating.

➢ 48% iof ipeople iknow iabout iNo icost iEMI ithrough iFriends.
➢ The i13 ipeople iout iof i42 iare iinterested ito itake inew iloans iwho iare inot itaken iloans ibefore.

66
➢ The imost iof ithe ipeople iare ifeel ithe icharge iof iloans iin iKOTAK iMAHINDRA iBANKis
imedium, ithe i3 ipeople ifeel ithat iit iis ihigh iand ithe i5 ipeople ilow

➢ Based ion ithe i2 ipolicies ithe iKOTAK iMAHINDRA iBANKwill iissue iloans ito ithe icustomers
ibased ion itheir ifinancial icapability.

➢ Only i90% iloan ionly iissued iby ithe iKOTAK iMAHINDRA iBANKto ithe icustomers, ithe
iremaining i10% ishould ibear iby ithe icustomer.

➢ If ithe iCIBIL iscore iis ilow ithe iBajaj iFinance iwill inot iissue iloan. i i i
➢ The iaddress iproof iand ithe ifinancial istrength iproof i(credit icard, ibank istatement, ijob iproof, iand
ithe iprevious iloan irecords, iCIBIL iScore icard i) iis imandatory ifor ievery iloan iissued iby ithe

icompany,

➢ iThe ioverall irating iis igood ion ithe iKOTAK iMAHINDRA iBANKloans, iprocedures iand ithe

iservice iprovided.

Reasons ifor ihighly iuse iof iKOTAK iAdvance iProduct:

• LESS iPAPER iWORK

• ATTRACTIVE iINTEREST iRATES
• TRANSPARENCY
• SIMPLE i& iFAST iPROCESSING
• LONGER iREPAYMENT iPERIOD
• QUICK iPROCESSING

67
Suggestions igiven iby ithe iconsumers iat ithe itime iof isurvey:

• There iis imore itime iperiod ifor irepayment iof ieducation iloan.
• iEducation iloan ishould ibe iproviding ito iprivate icollege ialso iwhich
i is inot iunder iany ikind iof iUniversity.
• iSBI ishould itake isteps ito isolve icustomer iproblems iimmediately.
• iAgents ishould ibe itrained, iwell ieducated i& iproper itrained ito
i convince ithe ipeople iabout i
• different iadvance iproduct.
• iLoan isanction idate ishould ibe iaccording ito icustomer iconvenient.
• iA icustomer iawareness iprogram ishould ibe itaking iplace iin irural
i area

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 SUGGESTIONS

➢ The iKOTAK iMAHINDRA iBANKhas ito iincrease ithe iadvertisements ion ithe iNO iCOST iEMI
ipolicy

➢ The iSME ilending iis idecreased iyear iby iyear ithe icompany ihas ito ilook iinto ithe iSME iloans.
➢ The ibanks iare ithe icompetetors ifor i iKOTAK iMAHINDRA iBANK, ithey iare iacquiring imore
iSME iloans iyear iby iyear iresult iin idecreasing iin ithe iKOTAK iMAHINDRA iBANKSME iLoan

iLending.

➢ The iinterest irates iand ithe iloan iprocessing icharges ihas ito idecrease iin iKOTAK iMAHINDRA
iBANK, ithis iwill ihelp iin imore icustomers ito iget iattracted ito iwords ithe icompany.

➢ The iprocessing itime itaking iis imore iwhen icomapred ito ithe icompetetors iso ithe iKOTAK
iMAHINDRA iBANK ihas ito iuse itechnology ito iimprove itheir iloan iapproval isystems.

➢ The icommercial ilending iis iincrease isuddenly iit iis igood ithe irecovery iis ilittle ibit irisky.
➢ The iRural iLending iis iincreased iyear iby iyear ibut ithe iincrease iis iless, ithe icompany ihas ito ilook
iinto ithis iand iincrese imore ilending.

➢ The isome iof ithe inew icustomres iare iinterested ito itake iloans iin ithe icompany ithe
irepresentatives ihas ito itake iintiative ito icomplete ithe ideal.

➢ The ino iof idocuments irequired ifor ithe iloan iapproval iis imore, iit ihas ito iminimized.
➢ The iCompany iis itaking ilong itime ito iapprove ithe iloan, iso imy isuggestion iis ito iuse ithe
itechnology ifor ithe iquick iloan iapprovals.

➢ Based ion ithe icustomer ireviews ithe iBaja iFinserv ishould iopen imore inumber iof ibranches, ithe
ipeople iare inot iable ito iaccess ithe ibranches.

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 ➢ The ionline isystem iof iloan iapproval iand ithe ionline iand ithe ireceiving ithe iapplications ishould
iincrease.

➢ The iKOTAK iMAHINDRA iBANKis inot imostly iconcentrating ion ithe idigital imedia ifor ithe
iadvertisements, iI istrongly irecommend ito iuse ithe idigital imedia ifor ithe iadvertisements.

➢ The icompany ihas ito iincrease ithe iissue iof icredit icards.
➢ The icredit icards iissuing iby ithe icompany iare inot ivalid ifor isome itype iof itransactions ilike ito
iadd imoney ito iwallets, ithis ihas ito ibe iresolved.

➢ The iKOTAK iMAHINDRA iBANKnot iable ito imeet ithe icompetetion iwith ithe ibanks iin iissuing
iloans, iand ias iwell ias ithe irecovery.

➢ I irecommend ito iissue imore isecured iloans ito ithe icustomers iinstead iof iun isecured iloans.
➢ I isuggest ithe iKOTAK ito iissuing imore iEducations iloans iand ithe igold iloans, iin ithis i2 itypes iof
iloans ithe icompany iis itoo iback.

➢ I irecommend ithe icompany ito iissue imore iSME iloans ias ithey iare idecreasing iday iby iday, ithis
iwill ihappen ionly iwhen ithe iprocessing icharges iand ithe iinterest irates iwill iless icompared ito ithe

ibanks.

CONCLUSION
The istudy ihas ibeen iconducted ion i“A iSTUDY iON iTHE iLOANS iAND iADVANCES iOFFERED iIN
iKOTAK iMAHINDRA iBANK”. i

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 i i i i i i iAccording ito ithe iobjectives ithrough ithe istudy iAs iwe iknow ithe ipopulation iis ibeen iincreasing

iday iby iday ithe imore iand imore ipeople iwill inot ihave iemployment iopportunity idue ito ithis, ithe

iinterested ipeople iwill icome ifor ithe iloans ito istart itheir iown ibusiness, ibut ithe ipeople iwho iare iin

imiddle iclass ipeople ithey ihave ithe ibasic ineeds idue ito iless iincome ithe imiddle iclass ipeople iwill icome

ito itake iloans ito ifulfill itheir ineeds, ithe ineeds iin ithe isense ilike ihouse iconstruction iand ifor ivehicle.

iThe icompany ialso iprovides ithe iloans ifor ithe istaff iwho iare iworking iin ithe ibank ifor iless irate iof

iinterest. iThe iloans ilike, ifestival iadvance, istaff ivehicle iloans, istaff ihouse ibuilding ietc….

i i i i iIf ian icustomer iwants ithe iloan ithe icompany irepresentatives iwill ihelp ithe icustomers ito ihave ihuge

iamount ifor iless irate iof iinterest. iIf ithe icustomer’s iperformance i/ itransaction iare igood iin ithe icompany

ithe icompany iwill iprovide iadvances, iover idraft ietc

BIBLIOGRAPHY

Web iResources.

• WWW.SBI.CO.IN.
• WWW.ONLINESBI.COM.
• WWW.RBI.COM.
• WWW.ECONOMICTIMES.INDIATIMES.CO.

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ANNEXURE:
➢ Process iof iGranting iLoan: i
1. iDocumentation- iDocumentation ilike iCredit icard, idriving ilicense, iPAN icard, ietc. iis irequired ito
iprovide iloan ito ithe icustomers. i

2.. iVarious irequirements- iAs imentioned iin isurrogates ivarious islabs iare ithere iaccording ito iwhich
icustomers iare iprovided iloan

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