SEMINAR ON SUMMER TRAINING REPORT

MBA 303-18

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 SUMMER TRAINING PROJECT
REPORT ON
“RETAIL ASSETS”
Submitted to

I.K. GUJRAL PUNJAB TECHNICAL UNIVERSITY

KAPURTHALA

In partial fulfillment of the requirement for

the award of degree of

Master of Business Administration (MBA)

Submitted by Supervisor

AYUSHI PANDEY Mr. Sukhjeev Singh Bajaj

2118540 CEO & Director IFM FinCoach

DEPARTMENT OF MANAGEMENT
CHANDIGARH GROUP OF COLLEGE

2021-2023

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CERTIFICATE OF COMPLETION OF INTERNSHIP

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4
 STUDENT DECLARATION

I, “ AYUSHI PANDEY ”, hereby declare that I have undergone my summer training at “IFM
FINCOACH” from 20th August 2022 to 22th August 2022 . I have completed a research project
tilted “RETAIL ASSETS” under the guidance of Mr. Sukhjeev Singh Bajaj.

Further I hereby confirm that the work presented herein is genuine and original and has not been
published elsewhere.

AYUSHI PANDEY
(Student name and Signature)

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 FACULTY DECLARATION
I hereby declare that the student Ms. AYUSHI PANDEY of MBA (II) has undergone her summer
training under my periodic guidance on the Project titled R E T A I L
A S S E T S

Further I hereby declare that the student was periodically in touch with me during her training
period and the work done by student is genuine & original.

(Signature of Supervisor)

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 ACKNOWLEDGEMENT
I would like to take the opportunity to express my sincere gratitude to all people who have helped
me with sound advice and guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose divine guidance , I have
been able to complete this work successfully.

I would like to express my sincere obligation to Ms. Smiti Jhajj, HOD, MBA of CBSA for providing
various facilities.

I am thankful to Ms. Deepa Guleria, co-ordinator of summer internship, for providing proper help
and encouragement in the preparation of this report.

I am thankful to Mr. Sukhjeev Singh Bajaj , trainer for his cordial support, valuable information and
guidance, which helped me in completing this task through various stages.

I extend my hearty gratitude to my class councellor , Er. Upasana of my college for the whole
hearted cooperation.

I express my sincere gratitude to Ms. Rama , my mentor whose guidance and support throughout
the training period helped me to complete this work successfully.

I would like to express my gratitude to all the faculties of the department for their interest and
cooperation in this regard.

I express my sincere thanks to my friends and family for their support in completing this report
successfully.

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 TABLE OF CONTENTS
Certificate by Guide ii
Student Declaration iii
Faculty Declaration iv
Acknowledgment v
CHAPTER NO. CHAPTER TITLE PAGE NO.
1 Introduction to the Company
2 Introduction to the Research Problem
3 Need, Scope and Objectives of the Study
4 Research Methodology
5 Data Analysis and Interpretation
6 Findings of the Study
7 Conclusion, Suggestions & Recommendations of
the Study
References and Bibliography
Appendix
(Questionnaire, Glossary of Terms, Abbreviations, Documents,
Performa, Financial statements, etc.)

LIST OF TABLES

TABLE NO. TABLE TITLE PAGE NO.

LIST OF FIGURES

FIGURE NO. FIGURE TITLE PAGE NO.

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 CHAPTER 1

INTRODUCTION
TO THE
COMPANY

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 INTRODUCTION TO THE

COMPANY

IFM (Innovative Financial Management) :Innovative Consultants was established in 2004 by Mr.
Iqbal Singh, a senior banker with Citibank & HDFC Bank. The growing needs of advisory services and
encouragement of the existing clients, created the space for expansion. It was the unconditional
support of S Peshaura Singh Thind in all walks of life in last 5 years, which encouraged Innovative
Consultants to take one step ahead and constitute Innovative Financial Management (IFM) Pvt.
Limited. Chaired by S P. S Thind, Innovative Financial Management is running with a vision to create
a globally trusted, first choice brand in financial services domain in the client’s mind. IFM aims at
providing the best financial solutions to its clients in India & abroad .

Innovative Financial Management (IFM) is an awarded financial advisory firm and has an impeccable
record of wealth creation for its clients .With its consistent performance and quality of advice and
services it has grown to one of the most trusted names in the country . It is IFM’s desire to become a
Globally Trusted, First Choice brand in the Financial services domain.

IFM has its presence across the country and is driven by a core team of dedicated and skilled
professionals .Our team comprises of best of industry to ensure that our research inputs and services
standards are one of the best in the industry.

IFM offers a complete basket of financial products including real estate, general insurance and even
ART. Innovative Financial Management (IFM) offers Customized Wealth Management Solution that
can help you identify the best investment portfolio, based on your personal risk and investment
profile. The proposed investment will be tailor-made as per the client profile because we believe in
the dictum "all are different, everyone is unique”.

IFM FinCoach : IFM FinCoach Global Pvt Ltd is the best educational institute in Chandigarh.
They promote the all-around development of students by providing them the finest learning
activities in all the core subjects and also the non-core subjects. Their main focus is on building
the foundation of learning for all the students. FinCoach is an initiative by Innovative Financial
Management (IFM) in Learning & Development. FinCoach provides practical and hands-on
experience, in BFSI ( Banking, financial services and insurance) space, taking the holistic approach of
balancing theoretical knowledge vis-à-vis practical knowledge . It is driven by extremely passionate ,
experienced and competent ex- bankers with a unique blend and sole motive of enhancing the
employability factor for aspiring candidates in the financial word.
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VISION : To bridge the gap between Academia and Industry by imparting professional Financial
grooming for employability in the BFSI space.
In addition , their strong network in BFSI industry enables us to create networking opportunities for
students to learn directly from the industry leaders who are executing it on ground.

MISSION: To create Bankable Professionals.

CORE TEAM OF IFM FINCOACH

Mr. IQBAL SINGH Mr. SUKHJEEV

Founder and MD- SINGH BAJAJ
IFM Director and CEO-
FinCoach

Ms. AMANJOT Mr. MANOJ

KAUR SEHGAL

Director- IFM Director- IFM

FinCoach

Ms. SIMRAN
JOHNSON

Consultant:
Behavioural Training

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 WHAT THEY OFFER

TO INDIVIDUALS TO CORPORATES

 from industry leaders.  Employee Induction programs – Models:

 Skill enhancement program in BFSI space. - Our Infra , Our Trainers
 Behavioural training program for the - Your Infra , Our Trainers
professional edge.  Refreshers Programs for Employees.
 100% job placement assistance for the  Hire- Train- Deploy Model.
selected programs.  Specialization program for select domains.
 Insight Get industry endorsed
certification.

WHAT THEY TEACH

ENTREPRENEURSHIP FINANCIAL MARKET

BEHAVIOURAL
BANKING
TRAINING

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 CHAPTER 2

INTRODUCTION
TO THE
TOPIC

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 INTRODUCTION TO THE TOPIC

RETAIL A$$ETS
Basically Assets are useful or valuable thing or person, which generates future benfits. But in
Bankings terms , An asset is a resource with economic value  that an individual, corporation, or
country owns or controls with the expectation that it will provide a future benefit. Retail Assets
means property (tangible and intangible) that is used, sold or consumed in a Retail Business.

Retail banking used two terms :

Retail Assets deals with

loans.
RETAIL For example Personal
ASSETS loan, Home loan, Business
loan, Working capital loan
etc.

Deals with mobilization of

RETAIL deposits in bank.
For example saving
LIABILITIES account, current account,
term deposits.

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Retail Assets are the funds which are collected or mobilized by bank under Retail liabilities
( current account, saving account, term deposits) are then channelized to provide loan to the
consumers to earn interest. The loan is called Asset for the bank.

A retail loan is given to an individual/business entity by a commercial bank or a financial institution

to consumers to meet their personal needs. For the following:

 Purchase asset like property.

 Vehicles.
 Consumer Electronics.
 To fund business needs.

IMPORTANCE OF RETAIL ASSETS

ECONOMIC
OBJECTIVE

NATIONAL SOCIETAL
OBJECTIVE OBJECTIVE

1) ECONOMIC OBJECTIVES: It includes-

 Economic super power: Retail banking has played a role in a growing economy of India.
As the growth story gets unfolded in India, retail banking is going to emerge a major driver.
How does the world view us? I have already referred to the BRIC Report talking India as an
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 economic superpower. A. T. Kearney, a global management consulting firm, recently
identified India as the 'second most attractive retail destination' of 30 emergent markets.

 Economic Prosperity: The consequent increase in purchasing power has given a fillip to
a consumer boom. Note that during the 10 years after 1992, India's economy grew at an
average rate of 6.8 percent and continues to grow at the almost the same rate – not many
countries in the world match this performance.

 Technological innovations: Technological factors played a major role. Convenience

banking in the form of debit cards, internet and phone-banking, anywhere and anytime
banking has attracted many new customers into the banking field. Technological innovations
relating to increasing use of credit / debit cards, ATMs, direct debits and phone banking has
contributed to the growth of retail banking in India.

 Engine of economic growth: Retail banks play a critical role in their home economies,
and their activities have implications for the global economy as well. They offer critical credit
functions, which largely fuel the engine of economic growth in their economies. When
problems hit the retail banking sector the result is often dire economic circumstances for the
economy as a whole. When retail banks are failing, little or no credit is available for credit
seekers, and economic activity becomes depressed.

2) SOCIETAL OBJECTIVES: It includes-

 Support to Indian middle class People: The rise of the Indian middle class is an
important contributory factor in this regard. The percentage of middle to high income Indian
households is expected to continue rising. The younger population not only wields increasing
purchasing power, but as far as acquiring personal debt is concerned, they are perhaps more
comfortable than previous generations. Improving consumer purchasing power, coupled with
more liberal attitudes toward personal debt, is contributing to India's retail banking segment.

 Increasing purchasing power of middle class people: The rise of the Indian middle
class is an important contributory factor in this regard. The percentage of middle to high
income Indian households is expected to continue rising. The younger population not only
wields increasing purchasing power, but as far as acquiring personal debt is concerned, they
are perhaps more comfortable than previous generations. Improving consumer purchasing
power, coupled with more liberal attitudes toward personal debt, is contributing to India's
retail banking segment.

 Easy and affordable access: Retail loans through a wide range of options / flexibility.
Banks even finance cost of registration, stamp duty, society charges and other associated
expenditures such as furniture and fixtures in case of housing loans and cost of registration
and insurance, etc. in case of auto loans.

 Changing consumer demographics: The Size of population indicate vast potential for
growth in consumption both qualitatively and quantitatively. India is one of the countries

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 having highest proportion (70%) of the population below 35 years of age (young population).
The BRIC report of the Goldman-Sachs, which predicted a bright future for Brazil, Russia,
India and China, mentioned Indian demographic advantage as an important positive factor
for India.

3) NATIONAL OBJECTIVE:It includes-

 Financial market reforms: The subject matter of retail banking is of prime importance.
In recent years, commercial banks have witnessed development in the form of retail lending,
all over the world. The growth in the field of retail lending is primarily because of the speedy
advancement in the IT sector, evolving macroeconomic environment, numerous micro level
demand and supply side factors and financial market reform. This criterion is based on the
market research report on retail banking.

 Mass-market banking: Retail banks offer a variety of important services to their

customers. The retail banking sector is often described as a typical mass-market banking,
offering services such as savings and checking accounts and all kinds of personal loans,
including auto loans and student loans. Retail banks also offer mortgage services, debit and
credit card services and ATM services--all of which have become essential to today's
consumers.

 Automation of banking process: The growth in retail banking has been facilitated by
growth in banking technology and automation of banking processes to enable extension of
reach and rationalization of costs. ATMs have emerged as an alternative banking channels
which facilitate low-cost transactions vis-à-vis traditional branches / method of lending. It
also has the advantage of reducing the branch traffic and enables banks with small networks
to offset the traditional disadvantages by increasing their reach and spread.

 Financial Liquidity: Banks Making financing attractive by offering free / concessional /

value added services like issue of credit card, insurance, etc.Continuous waiver of processing
fees administration fees, prepayment charges, etc. by the Banks. As of now, the cost of retail
lending is restricted to the interest costs.

 Decline in interest rates: The interest rates were decreased in Indian money market
have also contributed to the growth of retail credit by generating the demand for such credit.
The interest rates on retail loans have declined from a high of 16-18%in1995-96 to presently
in the band of 7.5-9%. Ample liquidity in the banking system and falling global interest rates
have also compelled the domestic banks to reduce it.

 Increase the Bank Liquid cash: Treasury income of the banks, which had
strengthened the bottom lines of banks for the past few years, has been on the decline
during the last two years. In such a scenario, retail business provides a good vehicle of profit
maximization. Considering the fact that retail’s share in impaired assets is far lower than the
overall bank loans and advances, retail loans have put comparatively less provisioning burden
on banks apart from diversifying their income streams.

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 TYPES OF LOANS

SECURED
LOANS

UNSECURED
LOANS

1. SECURED LOANS: Secured loans are the loans in which the borrower
(the one who take the loan) pledges some asset with the bank eg CAR and
House as collateral/ security. Interest rate of secured loan is lesser than
unsecured loan.
2.

3. UNSECURED LOANS: Unsecured loans are those loans that are

not secured against the borrowers assets (no security of any kind just
basis the credential of the client vice via financial history/ trail/
documentation. These loans are more difficult to get and have higher
rate of interest

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VARIOUS TYPES OF PRODUCTS AVAILABLE
UNDER RETAIL ASSETS FOR THE
CONSUMER IN INDIA

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 HOME LOAN

LOAN AGAINST PROPERTY

PERSONAL LOAN

BUSINESS LOAN

CAR/ VEHICLE LOAN

LOAN AGAINST SECURITIES

GOLD LOAN

PROCESS OF GRANTING LOAN

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Loan application

Submission of Required documents

CIBIL check

Approval of loan

HOME LOAN
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A home loan simply means a sum of money borrowed from a financial institution / bank to purchase
a house. Home loans consist of an adjustable or fixed interest rate and payment terms. The property
is mortgaged to the lender/bank as a security till there payment of the loan Home Loan is a secured
product in nature where Original Property .Documents are held with Bank who has funded to
purchase the property.After repaying whole loan amount, bank hand over the Original Property
Documents to the customers. Since it is a secured loan and directly related to growth of the country,
the rate of interest is lowest among all the loans.

Benefits of Home Loan

 Buying a property at early of career by availing Home Loan, your loan will be cleared in
between age of 45-50 years, hence getting a head start in creating an asset for yourselves
 You will get Tax Benefit on both repaying principle and interest.
 Even If you already have parental house, availing a Home Loan, the property will give you
huge return in long run.

IMPORTANT FACTORS TO CONSIDER WHEN APPLYING FOR A HOME LOAN

1) Principal: This is the amount of money you will be borrowing from the bank/financial
institution.

2) Duration: How long will you will be paying back the loan. Depending on the nature of your expected
income, you can select a period that suits you.(from 5 years to 20 years time frame is provided by the
various bank)

3) Interest: The bank / financial institution charges interest on the amount they sanction for
home loan. The rate of interest is dependent on the amount of the principal and the duration
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 of loan. Interest can be fixed or variable, customer is free to choose any of the options.

4) EMI Amount: You will be paying monthly instalments for the duration of your borrowing.
Each EMI is a combination of principal + interest. With each EMI, you will be paying back more of
the principal and costs of interest will gradually reduce.

TYPES OF HOME LOAN

HOME
PURCHASE

HOME BALANCE
EXTENSION
LOAN TRANFER

HOME HOME
IMPROVEMENT CONSTRUCTION
LOAN LOAN

Home Purchase
This type of loan is taken to buy a residential property, Including flats, houses and bungalows. The
maximum loan amount offered by banks is 90% of the present market value of the property

Balance Transfer
Home loan balance transfer can be availed by an individual who wants to transfer an existing home
loan from one bank to another bank . The major reason for availing this loan is getting a lower
interest rate from the new lender.

Home Construction Loans

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This type of home loan can be availed by the owner of land to meet the costs of constructing a new
house. The loan can also be taken to finish the construction of an unfinished house.

Home Improvement Loans

This type of home loan can be availed to renovate, repair or refurnish your home.

Home Extension Loans

This type of loan is taken when an individual wants to extend or add more space to the home. For
instance, adding a room as per growing family needs.

DOCUMENTATION OF HOME LOAN

Checklist of Documents

 Completed Home Loan Application Form

 Passport size Photographs
Proof of Identification: (Any one of the below)

 PAN Card
 Passport
 Aadhaar Card
 Voter's ID Card
 Driving License

Proof of Age: (Any one of the below)

 Aadhaar Card
 PAN Card
 Passport
 Birth Certificate
 10th Class Mark sheet
 Driving License
Proof of Residence: (Any one of the below)

 Bank Passbook
 Voter's ID
 Passport
 Utility bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill)
 LIC Policy Receipt
 Aadhaar Card

INCOME DOCUMENTS
For Salaried Individuals:

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• Form 16

• Certified letter from Employer

• Pay slip of last 2 months

• IT returns of past 3 years

Self Employed:

• Income Tax Returns (IT) of last 3 years

• Balance Sheet and Profit & Loss Account Statement of the Company/Firm

(duly attested by a C.A.)

• Business License Details.

• The license of Professional Practice (For Doctors, Consultants, etc.)

• Proof of Business Address.

•Registration certificate of Establishment (for shops, factories)

PROPERTY DOCUMENTS REQUIRED FOR HOME LOAN

 NOC from Society/Builder.
 A detailed estimate of the cost of construction of the house.
 Registered Sale Deed, Allotment Letter or Stamped Agreement of Sale with the Builder
(original document).
 Occupancy Certificate (in case of ready-to-move-in properties).
 Property Tax Receipts, Maintenance Bills and Electricity Bills.
 Receipts of the advance payments made towards the purchase of flat (original document).
 An approved copy of the building plan (key plan/floor plan in case of purchase of flats).
 Original of the land tax paid receipt and possession certificate as issued by the revenue
authority.
 Payment receipt or bank account statements showing payments made to the Builder.
ELIGIBILITY

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 PERSONAL LOAN

Personal Loan is an unsecured loan provided by Banks /NBCs, which is based on criteria like:
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• Employment history

• repayment capacity

• income level,

•profession and

•credit history.

Personal Loan, which is also known as a consumer loan is a multi-purpose loan, which can be used to
meet any of the immediate needs. Unlike loans Home Loan or Gold Loan, where one has to provide
several documents, Personal Loans require minimum documents and the approval is quick. Various
banks / NBCs offer Personal Loan online services also where is disbursement/ sanction is within a
few hours .The significant feature of Personal Loan is that it offer you the flexibility to choose your
loan tenure. Usually, Personal Loan tenure ranges from one to five years. As such one can select the
loan term as per ones repayment capacity.

FEATURES OF PERSONAL LOAN

 No Collateral/Security Required

 Flexible End Use

 Flexible Tenure

 Minimal Documentation

 Flexible Loan Amount

 ELIGIBILITY
 Applicant must be between 23 and 55 years of age
 Salaried individual employed with an MNC, public or private company
 You must be a residing citizen of India.
 The maximum amount that you can avail depends upon one's income level,, the profession
and finally Lender's / Bank's assessment of your loan application. (basis calculation, the EMI is
not more than 40% - 50% of your monthly income)
 If business owner or self-employed, the bank will determine the loan amount based upon
profits earned and recorded in the profit and loss statement.
 If you are a salaried professional, the lender will determine the amount based on your salary
and other liabilities,

DOCUMENTS FOR PERSONAL LOAN

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The documentation varies from bank to bank but some of the essential documents which are
common across all the banks are:

 Proof of income (salary slip)

 Bank account statement 3 months, ITR forms
 Proof of residence and identity proof- KYC (PAN / Aadhaar)
 Certified copy of your degrees and license (for self-employed applicants).

BUSINESS
LOAN

A business loan is a loan specifically intended for business purposes. As with all loans, it involves the
creation of a debt, which will be repaid with added interest. A business loan is a loan specifically
intended for business purposes.

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 SECURED
BUSINESS LOAN
LOAN UNSECURED
LOAN

SECURED LOANS

In secured loan, the borrower pledges an asset (such as plant, equipment, stock or vehicles) against
the loan raised. If the debt/loan is not paid, the lender(bank) may claim the secured asset.

UNSECURED LOANS

In Unsecured loans, client does not have collateral, though the lender/bank will have a general claim
on the borrower's assets if repayment is not made.

In general, Business Loans are unsecured financial assistance provided by banks and NBFCs. The
primary aim of these is to support the urgent needs of your growing business. Most banks offer term
loans and flexi loans to cater to the business needs of a company.

BUSINESS LOAN ARE CATEGORIZED EITHER AS:

SHORT
LONG TERM
TERM
LOANS
LOANS
(5to7 years)
(1to 2 years)

SECURED UNSECURED
LOANS LOANS
(backed by (no
collateral) collateral)

TYPES OF BUSINESS LOANS

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 BUSINESS LOANS

PROFESSIONAL
TRADE LOANS
LOANS

1) PROFESSIONAL LOAN

Professional loans are meant for self employed/ professionals such as doctors, chartered
accountants and lawyers, based on their individual credit history. This loan is usually extended on
personal rapport basis and in many instances some kind of collateral is taken in the form of
mortgage of land, National Savings Certificates, Government Bonds, Bank's Term Deposits, and
Assignment of Life Insurance Policies. These loans are usually long term in nature and have payback
tenure of about 5-7 years.

DOCUMENTS REQUIRED FOR PROFESSIONAL LOANS

Detailed plan of the utilization of the Loan amount

 Business expansion plan

 Personal financial statements for the last 12 months
 Bank account statements
 CIBIL score
 Some form of collateral

Documents of the business,

 Certification of incorporation
 PAN Card
 Address proof of the business
 Ownership document
 Last 2 year's balance sheet and IT returns

2) TRADE LOANS

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Trade loans are short-term facilities involving a borrower and a lender that importers, exporters, and
domestic traders use to acquire financing.

Who can apply for Trade Loans ?

 Sole Proprietorships
 Partnerships
 Private Limited Companies

TYPES OF TRADE LOAN

OVERDRAFT

WORKING CPITAL LOAN

TERM LOAN

OVERDRAFT

Overdraft loans are based on collateral or security i.e. Bank Fixed Deposits, OR Besides, depending
upon the credit history, cash flows, tenure of banking relationship and repayment history of the
business or individual promoter bank provides fixed overdraft limit. Basis the limit, the overdraft
amount can be utilized and interest is charged on the utilized amount only.

WORKING CAPITAL LOAN

Working capital loans is provided to businesses as loan for their regular working to promote business
activity. This loan is also against collateral and has a lesser rate of interest than overdrafts. In this
type of a loan as well, interest is charged by the bank only on the utilized amount and not on the
entire sanctioned amount.

TERM LOANS
The term loan is a loan that can be both for personal and business purposes. In this case the entire
amount that can be sanctioned is distributed to the client’s account. The interest is charged on the
entire sanctioned. EMI based for a specific pre- defined tenure which has the equated ratio of
principal and interest amount is the way by which the loan amount is paid

DOCUMENTS REQUIRED FOR BUSINESS LOAN

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 Business existence proof for at least 2 years
 Bank statements with regular cash flows
 Salary payment for 2 years.
 Utility Bills,
 Audited Balance Sheet last 3 years
 Financial statements, Profit and Loss statement and ITR (last 2 years )
 Certificate of Incorporation/Registration or Partnership/Trust Deed, etc.
 Company PAN Card / Address Proof along with Board Resolution
 List of signatories and MOA and AOA
 KYC of the individual promoters of directors: Self Attested Photocopy of PAN Card and
Address Proof and photograph.

CAR/VEHICLE
LOAN

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 A Car Loan/ Two Wheeler Loan also known as auto loan is a sum of money a consumer borrows
from bank /NBCs in order to purchase a car/two wheeler (scooter/motorcycle ). A car loan is secured
loan where the vehicle one intends to purchase, serves as collateral for the loan. The vehicle is under
bank's name till the time loan is being paid. If defaulted on repayments, the bank can seize the
automobile. When taking out a VL / Car, a borrower (customer) agrees to pay back the full loan
amount, as well as any interest (a percentage of the loan amount, usually calculated on an annual
basis), by a certain date, typically by making monthly payments, called EMI. All car loans are for
specific lengths of time, generally anywhere between 24 and 60,and rate applied is 8%-9%. Once the
loan gets sanctioned, basis eligibility the documentation (paper work) of the automobile is done in
the favor of bank (called hypothecation) .If loan is repaid by the customer , then bank provides No-
Objection Certificate (NOC), only then the Vehicle gets transferred in the name of customer. This is
the most easiest and more saleable loan by the banks as documentation and eligibility is very easily
met with and there is huge competition in banks to disburse.

FEATURES OF CAR LOAN/ VEHICLE LOAN:

Get financing for purchasing new and used cars.

 The financing can go up to 85%-90% of the on-road price of the car. Some banks offer up to
100% financing on the vehicle’s on-road price to certain conditions.

 The loan tenure can range from one year up to seven years.

 The loan amount can be up to three times the annual income of the applicant.

 Some lenders offer instant financing facilities for cars.

 You may get additional discounts and offers if you choose to purchase a car from the dealer
or manufacturer the bank has a tie-up with.

 The car purchased through financing will be held as collateral until the loan is repaid.

 The repayment structure most commonly followed for a car loan is equated monthly
installments (EMI).

ELIGIBILITY FOR CAR OR VEHICLE LOAN:

Salaried Individuals: & Self Employed Individuals /Professionals:

 The coverage under this category applies to employees of private, public sector including
central govt, state govt and local bodies .
 It includes self-employed sole proprietors in the business of manufacturing, trading or
services.
 Individuals who are a minimum of 21 years of age at the time - max of 60 years.

33
  Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current
employer.
 Those who earn a minimum of Rs. 3,00,000 per year, including the income of the spouse/co-
applicant.

DOCUMENTATION FOR CAR OR VEHICLE LOAN

Proof of identity documents:

 Aadhaar card.
 Passport,
 Pan card
 Voters ID card

Proof of address documents:

 Aadhaar card.
 passport,
 Utility Bills - telephone or electricity bill,
 Shop & Establishment Act certificate (for self-employed individuals),

Proof of income documents:

 Bank statement of the last six months

 Salary slip and form 16 (for salaried persons)
 Income tax returns (for self-employed persons)

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 LOAN AGAINST
PROPERTY (LAP)

A loan against property(LAP) is a secured loan that is sanctioned against the asset pledged as
collateral. This asset can either be an owned land, a house, or any other commercial premises. The
asset remains as collateral with the lender until the entire loan against property amount is repaid.
Loan against property is nothing but a loan which avails by keeping your commercial/residential
property as a collateral. The security in this kind of loan is the property owned by the person
applying for the loan. The value of property decides the amount of potential loan one gets
sanctioned.

 Banks/NBFC’S generally sanction loans of approximately 65% of the value of your property.
 The tenure offered in LAP is 15 years subject to age norms while the rate of interest varies
between 12% to 16%.
 Criteria of sanction is a peep into your income details ,savings, employment track before
coming to disbursement.
 Your property or collateral would be evaluated on the current market value and then loan
amount would be calculated.
 The documentation and the eligibility criteria for LAP is on the similar lines as that of Home
Loan.
35
  The rate of interest is lower than personal loan making it one of the cheapest and pocket-
friendly loan.

 There is no tax advantage in for customer who has taken LPA while paying the EMI on
mortgage loan as compared to the home loan (in case of salaried person)
 A business person can claim a tax deduction on the entire amount paid on the loan if he/she
can prove that loan was taken to improve the business.

THE TYPE OF PROPERTY AGAINST WHICH LAP CAN BE AVAILED:

 Self owned and self-occupied residential property.
 Self-owned but rented residential property.
 Self-owned piece of land.
 Self-owned commercial property.
 Self-owned but rented property.

WHY LOAN AGAINST PROPERTY?

Customers avail loan against property for numerous following reasons:-

Renovating
Going for
existing
foreign trip.
property

Loan Big
consolidation wedding

Purchasing a To expand
new property your business

Education of
your
children.

DOCUMENTS REQUIRED TO APPLY FOR LAP:

Personal papers

 Photograph- one each of applicant and co applicant.

36
  PAN card copy each of applicant and co applicant.
 Present residence address proof- each of applicant and co applicant.

Income papers.

 3 months salary slip

 1 year form 16.

Other documents

 1 year bank account statement of main account.

 Loan schedule if any running.
 Property papers with complete chain.

LOAN AGAINST
SECURITIES (LAS)

Loan against securities is a loan where you pledge your shares, mutual funds or life insurance
policies as collateral to the bank against your loan amount. It is a loan which available in the form of an
overdraft facility in which financial securities like shares, mutual fund units and bonds are kept as collateral
( pledged with bank), and against which certain amount gets available to client. Loan Against Shares are a
convenient and easy way to avail high-value loans at affordable interest rates. In this type of loan, you can
37
pledge your shares as equity to avail funds of up to 50-60% of their value of your shares. Interest is charged
monthly, on the basis of the daily outstanding balance in the overdraft account. Banks provide a complete list
of approved securities against which they are willing to offer a loan.

FEATURES OF LOAN AGAINST SECURITIES:-

 Loan against securities is offered by banks,NBFS or other financial institutions.
 These loans are offered to resident Indians many financial institutions have extended this
facility to other categories such as HUF, partnership firm, business, limited companies or any
entity with securities eligible for loan on a case to case basis.
 NRI – Non Resident individuals are eligible for funding against equity and debt mutual funds
or shares held in their own names.
 Loan value would depend on the cash value of the securities.
 Security should be easily marketable , transferable and liquid assets are preferred.
 Security value can fluctuate but should not fluctuate too much and should be one which will
not incur loss.
 Loan against securities are offered as an overdraft facility.
 Flexible withdrawal , tenure and repayment schedule is available for this type of loan.
 Charges for overdraft account maintenance, processing, stamp duty for agreement of loan.
 ATM and internet banking facilities available on the overdraft facility.

ELIGIBILITY OF LAS
 You must be a resident citizen of India
 You must be at least 21 years of age
 You must be a salaried or self-employed professional with a regular source of income
 The minimum value of your securities should be Rs. 10 lakh ( varies from bank to bank)

DOCUMENTATION FOR LAS

 Loan Against Securities Application Form
 Last Two Years Income Tax Return
 Last 3 Months Self-Attested Bank statement
 Client Master List (CML) for the relevant
 Demat Account (in case of Equity)
 Self-Attested Mutual Fund statement

38
 GOLD LOAN

Gold loan is a secured loan taken by the borrower from a bank/lender by pledging their gold articles
(within a range of 18-24 carats) as collateral. The loan amount provided is a certain percentage of
the gold, typically upto 80%, based on the current market value and quality of gold. The Gold articles
which are pledged with the bank are kept in safe deposit and is returned to client once the loan is
paid .

Gold loans are short-term loans and have a flexible tenure ranging from a minimum of 1 month to 5
years or more depending on the lender. Interest rates for gold loan varies from lender to lender and
ranges from 9.% to 12%. Nominal processing fee ranging from 1-3% of the loan amount is charged by
some lenders.

ELIGIBILITY FOR GOLD LOAN

Anybody trader, salaried, self employed professional, or businessman is eligible for availing gold
loan, besides being in age group between 21 and 60 years.

This is the most simplest form of loan, where bare minimum documentation is required.

DOCUMENTATION FOR GOLD LOAN

39
Identity Proof.

 Aadhaar Card.
 PAN Card.
 Driving License,
 Passport.
 Voter's ID Card.

Address Proof.

 Aadhaar Card.
 Driving License.
 Valid Passport.
 Voter's ID Card.

COMARISON BETWEEN PSU BANKS

AND PRIVATE BANKS

BASIS OF
COMPARISON PSU PRIVATE BANKS
Public Sector Banks are the Private Sector Banks refers to
banks whose complete or the banks whose majority of
Meaning
maximum ownership lies with stake is held by the individuals
the government. and corporations.
NO. of banks 27 22
Status of control They are government- They are under private
controlled individual control
Interest rates They have higher interest They have lower interest rates
rates for loans and lower for loans and higher interest
interest rates for savings rates for savings
Shareholdings Financial institutions with a Financial institutions with a
maximum of its shares maximum of its shares held by
contained by the government private shareholders
Customer base Most public sector or Majority of the private sector
government banks benefit banks experience lesser
from a more extensive customer base. People fail to
customer base. It is mainly trust such banks with their
because people find these finances fully
banks trustworthy
Employee promotion Usually, the basis of employee The foundation of employee
status promotion is on seniority, or promotion is generally on the
the time-length experienced amount of value added by the

40
 by the employee at the individual to the institution
institution

WHICH NBFC’s ARE PROVIDING RETAIL ASSETS

Bajaj Finance Limited HDB Finance Services

Cholamandalam Muthoot Finance Ltd

L & T Finance Limited Mahindra & Mahindra Financial Services Limited

Aditya Birla Finance Ltd.  Tata Capital Financial Services Ltd

41
 CHAPTER 3

NEED, OBJECTIVE
AND SCOPE OF THE
STUDY

42
NEED

 For generating awareness about loans and advances providing by banks amongs customers
for fulfilling their needs and wants in their daily life for :
 Purchasing Assets like property
 Purchase vehicles
 For growth of business
 For higher studies
 For creating awareness of retail assets types and products, their terms used in banking
sector, eligibility and documentation of loans, etc.

SCOPE
 EDUCATION SECTOR: In our education sector, retail assets/ loans are also plays
important roles. Students who wants to do higher studies but they have not enough money,
then they can take loan from banks and complete their studies.

 BANKING SECTOR :In banking sector, banks income only depends upon retail assets
of the banks. They provide loans to customer and charge higher rate of interest. It is helpful
in smooth functioning of Banking system.

 CORPORATE SECTOR: It also plays major role in corporate sector. Many banks and
financial institutions provide loans to their good customers for starting their new business,
expand their business etc.

 ECONOMIC SECTOR : It helps in regular flow of money in the market. Many

business are expanded with the help of loans. It also generate revenues for the government.

OBJECTIVE
 To study different types of loans.
 To study the process of sanctioning the loans and advances to customers
 To generate profits for the banks.
 To fulfill the needs of customers.
 To make suggestions on the basis of anaylsis.

.
43
 CHAPTER 4

RESEARCH
METHODOLOGY

44
 RESEARCH METHODOLOGY

Research Design

Research can be generally defined as a systematic method of finding

solutions to problems. In common research refers to a search for knowledge on
facts. One can also define research as a scientific and systematic search for
pertinent information on a specific topic. In fact, Research is an art of scientific
Investigation. A Research Design is the place, structure and strategy of
investigation conceived so as to obtain answers to research questions and to
control variances. The process used to collect information and data for the
purpose of making decisions. The methodology may include publication
Research, Interviews, Surveys and other research techniques, and could include
both present and historical information.

Nature of Study

The study is conducted in Analytical nature.

Nature of Data

Both primary and secondary data are included in this study.

Number of Samples 52

Sources of Data

Primary Data: Data was collected using survey method by conducting personal
Interviews through structured questionnaire.

Secondary Data: The Secondary source of data provided insight to understand and
define the nature of the problem. Secondary data was collected through various
sources like company website, periodicals, Internal source, Government Publication
Reports, Magazine and Book.

45
 CHAPTER 5

DATA ANALYSIS
AND
INTERPRETATION

1. Table 1: Which age group do you belongs?

Which No. of Percentag

age respondent e
group s =52
do you
belongs
46
 ?
18-25 34 65.4
25-30 16 30.8
30-35 0 0
Above 2 3.8
35

Figure : 1

34

Interpretation: In table1 and figure 1 65.4% (34 out of 52) belongs to the age
group of 18-25. 30.8% (16 out of 52) belongs to the age group of 25-30. 3.8% (2
out of 52) belongs to the age of 35 and above.

2. Table: 2 What is your profession?

what is your No. of Percentag

profession? respondent e
s =52
Student 30 57.7
Home 2 3.8
maker
Businessma 1 1.9
n
Employed 17 32.7
Professional 2 3.8
s

Figure:2

47
Interpretation: In table 2 figure 1 57.7%(30 out of 52) belong to students. 3.8% (
2 out of 52) belongs to home maker. 1.9% (1 out of 52) belongs to businessman.
32.7% (17 out of 52) belongs to employed. 3.8% (2 out of 52) belongs to
professionals.

Table :3 Do you have bank account ?

Do you No. of Percentage

have respondents
bank =52
account
?
Yes 50 96.2
No 2 3.8

Figure : 3

48
Interpretation: In Table 3 figure 1 shows that 96.2% (50 out of 52) have account with bank. 3.8% (2
out of 52) don’t have account with bank.

4 Table: 4 Do you use bank services ?

Do you No. of Percentage

use bank respondents
services? =52
Yes 50 96.2
No 2 3.8

Figure :4

Interpretation: In Table 4 figure 1 shows that 96.2% (50 out of 52) uses bank services 3.8% (2 out of
52) don’t uses bank services.

Table :5 What is your Annual Income?

What is your No. of Per

annual income ? responde ce
nts =52 nta
ge
Less than 100000 30 57.
7
100000 - 500000 11 21.
2
500000 - 6 11.
1000000 5
Above 1000000 5 9.6

49
Figure :5

Interpretation: In the figure 5 table 1 57.7% (30 out of 52) have income less than 1 lakh. 21.2 % (11
out of 52) have income between 1 lakh to 5 lakh. 11.5% ( 6 out of 52) have income between 5 lakh to
10 lakh. 9.6% ( 5 out of 52) have income above 10 lakh.

Table :6 What kind of account do you have ?

what kind No. of Percentage

of respondent
account s =52
do you
have ?
Current 8 15.4
Saving 44 84.6
Demat 0 0
Credit 0 0
Loan 0 0

Figure:6

50
Interpretation: In the table 6 figure 15.4% (8 out of 52) have current account. 84.6% (44 out of 52)
have saving account.

Table:7 Since how long you have been using the bank services?

Since how No. of persentage

long you respondents
have been =52
the bank
services?
Less than 6 5 9.6
months
6m – 1yr 6 11.5
1yr – 2yr 5 9.6
More than 36 69.2
2 yr

Figure:7

Interpretation: In the figure 7 table 1 9.6% (5 out of 52) has used the bank
services for less then 6 months. 11.5% (6 out of 52) has used the bank services
for 6 months to 1 yrs. 9.6% (5 out of 52) has used 1yr to 2yrs. 69.2% (36 out of
51
52) has used the bank services for more than 2 yrs.

Table:8 Are you aware about the retail products offered by banks?

Are you No. of Percentage

aware of respondent
retail s =52
products?
Yes 43 82.7
No 9 17.3

Figure : 8

Interpretation: In the figure 8 table 1 82.7% (43 out of 52) are aware about the
retail products. 17.3% ( 9 out of 52) are not aware about retail assets products.

Table:9 Which product did you use ?

Which No. of Percenta

52
 product responden ge
did you ts =52
used?
Car loan 3 5.8
Business 3 5.8
loan
Education 3 5.8
Profession 7 13.5
al
Home 2 3.8
Loan 0 0
against
securities
Loan 1 1.9
against
property
Gold loan 7 13.5
none 32 61.5

Figure :9

in

Interpretation: In this figure 5.8% (3 out of 52) used car loan. 5.8% ( 3 out of 52)
used business loan. 5.8% (3 out of 52) used education loan.13.7% (7 out of 52)
has used personal loan. 3.8% (2 out 52) have used home loan. 1.9% ( 1 out of
52) has used loan against property. 13.5% (7 out of 52) has used gold loan.
61.5% ( 32 out of 52) has not used any retail assets.

Table:10 How did you get to know about the retail assets products ?

53
 How did No. of Percentag
you get to responden e
know ts =52
about it
Bank R 18 34.6
friends 18 34.6
Social 13 25
Media
Newspap 3 5.8
er

Interpretation: In this above figure 34.6% (18 out of 52) get to know through
bank representative. 34.6% ( 18 out 52) get to through friends. 25% ( 13 out 52)
get to know through social media. 5.8% (3 out of 52) get to know through
newspaper.

Table:11 what impression you have most about the product?

Impressio No. of Percentag

n about respondent e
the s =52
product
price 7 13.5
Customer 25 48.1
service
quality 16 30.8

54
 Shopping 4 7.7
experienc
e

Interpretation: In the above diagram 13.5% (7 out of 52) people check the
price. 48.1% ( 25 out of 52) people check with customer services. 30.8% ( 16 out
of 52) people check with quality of the product. 7.7% ( 4 out of 52) people go
with the shopping experience.

Findings
1. Through this online survey we get to know that 64.5 % of population
belongs to the age group of 18-25.
2. This survey says that 57.4% of population is Student have less than
1,00,000 income
3. 96% of population has bank account and uses the services of bank.
4. 84% of population has saving account and they have been operating for
more than 2 years.
5. 82% of population are aware of retail assets products but very few has
used it, since most of the population is not earning.
6. 34% population get to know about this through bank representative and
friends.
7. 55% of population are satisfied with the product and 48% of population
belives in customer services.
8. 90% of population will definitely use the product and suggest as well
9. The reason for improvement is high interest rate and affordability.

Conclude:
1. on the Basis of the survey we conclude that 90% of population are aware

55
 of the retail assets products.
2. 80% population are willing to use the product in future if required and
will recommend the same to others.
3. Since 70% of the population belongs to students and don’t have source
of earnings that’s why they have not used the product .
4. This survey says that most population have bank account and uses the
services offered by bank.
5. Retail assets plays vital role in the society to develop the economy and
as well as to raise the standard of individual.
6. Through retail assets bank perform all the activity and run the bank.
7. Retail assets make sure the availability of services to its customers.

Reference and Bibliography

https://www.alibabacloud.com/
fundamental of retail banking by OP Aggarwal
https://www.dbs.com/

56
57
QUESTIONNAIRE
1. What is the age group do you belong?

 18-25
 25-30
 30-35
 Above 35

2. What is your profession?

 Student
 Home maker
 Businessman
 Employed
 Professionals

3. Do you have Bank Account?

 Yes
 No

4. Do you use bank services ?

 Yes
 No

5. What is your Annual Income?

 Less than 1,00,000

 1,00,000-5,00,000
 5,00,000-10,00,000
 Above 10,00,000

6. What kind of account do you have ?

 Current A/c
 Savings A/c
 Demat A/c
 Credit A/c
 Loan A/c

7. Since how long you have been using bank services ?

58
 Less than 6 months
 months – 1 year
 1 year – 2 years
 More than 2 years

8. Are you aware about Retail products offered by bank?

 Yes
 No

9. Which products did you use ?

 Car loan
 Business loan
 Education loan
 Personal loan
 Home loan
 Loan against securities
 Loan against property
 Gold loan
 None

10. How did you get to know about retail assets?

 Bank representative
 Friends
 Social Media
 Newspaper

11. How satisfy are you with the product?

 Very Satisfied
 Satisfied
 Less satisfied
 Dissatisfied

59
12.What impression do you have most about the product

 Price
 Customer service
 Quality
 Shopping experience

12. Would you recommend the product to other people?

 Definitely
 Probably
 Not sure
 Definitely not

13. Would you use this product in future?

 Definitely
 Probably
 Not sure
 Definitely not

Thankyou

60