EXECUTIVE SUMMARY

The summer training project undertaken entitled CUSTOMER

ATTITUDE

TOWARDS ICICI BANK PERSONAL LOANS A case study of Panipat City. is an

attempt to study the various factors which influence the purchase decision of a consumer.
The objective of the study was to study the preferences of consumers towardsICICI
BANK personal loans available in the market and to study the influence of various
aspects on Consumer preference, Brand choice & their needs. The study relates to
PanipatCity.
Exploratory research study has been used. The basic aim of exploratory research is to
gain familiarity with the phenomenon or to achieve new insights into it. So, the study has
tried to find out the influence and effectiveness of these factors on purchase decisions.
The research was carried out using both primary and secondary data collection method.
Questionnaires were used in order to collect the information related to the various factors
taken into consideration by the consumer and questions are related to their attitude
towards various features of ICICI Bank personal loans which may influence purchase
decision of a consumer. The sample size was 100.
The study resulted that all the factors which I considered influence the purchase decision.
Particularly the Interest rate and Brand name are the main factors which influence the
preference of a consumer.

Various statistical tools have been applied in order to analyze the collected data.
Percentage method was primarily used for analysis. Percentage have been found for all
the parameters and based on these percentages bar graphs and pie charts have been
formed. Various tools were used and also XLSTAT software has been used.

The research report gives maximum analysis and strategic suggestions to the various
companies which manufacture 1.5 ton window air conditioners. This research report
suggests that emphasis should be given on the fixation of price which is an important
factor considered by consumers while making purchase

ACKNOWLEDGEMENT

In this present world of competition there is a race of existence in which those who are
having will to come forward will succeed. Project is a bridge between practical and
theoretical working, with this will I have joined the project. I really wish to express my
gratitude towards all those people who have helped me.
I am really indebted to Dr. Vikas Daryal (Director, TIMT) & MS Shruti kapoor
(HOD, MBA ,TIMT)Yamunanagar, for his kind hearted approach.
I am also very thankful to Ms. Surbhi Makkar Faculty. (MBA) for his timely guidance,
supervision & encouragement that have helped me to get this golden opportunity and

who provided me his expert advice, inspiration & moral support in spite of his busy
schedule & assignments, has mainly provided my understanding of this project.
Last , but not the least, I say only this much that all are not to be mentioned but none is
forgotten and I will like to extend my special thanks and gratitude to my parents who
always encourage me in pursuit of excellence.

(Inderjit Singh)

TABLE OF CONTENTS
Page No
1) Introduction
I. Profile of the study
II. Justification of the study
2) Objectives of the Study
3) Literature Review
4) Research Methodology and Analytical tools
I. Sampling and Sampling Design
II. Analytical Tools
-Statistical tools
III. Data Collection
IV. Hypothesis Testing
V. Limitations of the Study
5) Results and Discussions/ Findings
6) Bibliography
7) Annexure

INTRODUCTION
BANKING SECTOR18
- The Reserve Bank of India (RBI), as the central bank of the country, closely monitors
developments in the whole financial sector.
- The banking sector is dominated by Scheduled Commercial Banks (SCBs). As at endMarch 2002, there were 296 Commercial banks operating in India. This included 27
Public Sector Banks (PSBs), 31 Private, 42 Foreign and 196 Regional Rural Banks. Also,
there were 67 scheduled co-operative banks consisting of 51 scheduled urban cooperative banks and 16 scheduled state co-operative banks.
- Scheduled commercial banks touched, on the deposit front, a growth of 14% as against
18% registered in the previous year. And on advances, the growth was 14.5%against 17.3
% of the earlier year.
- State Bank of India is still the largest bank in India with the market share of 20%. Icici
and its two subsidiaries merged with Icici Bank, leading creating the second largest bank
in India with a balance sheet size of Rs1040bn.
- Higher provisioning norms, tighter asset classification norms, dispensing with the
concept of past due for recognition of NPAs, lowering of ceiling on exposure to a single
borrower and group exposure etc., are among the important measures in order to improve
the banking Sector.
- A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to strengthen the
ability of banks to absorb losses and the ratio has subsequently been raised from 8% to
9%. It is proposed to hike the CAR to 12% by 2004 based on the Basle Committee
recommendations.
- Retail Banking is the new mantra in the banking sector. The home loans alone account
for nearly two-third of the total retail portfolio of the bank. According to one estimate, the
retail segment is expected to grow at 30-40% in the coming years.
- Net banking, phone banking, mobile banking, ATMs and bill payments are the new buzz
words that banks are using to lure customers.
- With a view to provide an institutional mechanism for sharing of information on
borrowers/ potential borrowers by banks and Financial Institutions, the Credit
Information Bureau (India) Ltd. (Cibil) was set up in August 2000. The Bureau provides

a framework for collecting, processing and sharing credit information on borrowers of

credit institutions. SBI and Hdfc are the promoters of the Cibil.
- The RBI is now planning to transfer of its stakes in the SBI, NHB and National Bank
for Agricultural and Rural Development to the private players. Also, the Government has
sought to lower its holding in PSBs to a minimum of 33 per cent of total capital by
allowing them to raise capital from the market.
- Banks are free to acquire shares, convertible debentures of corporates and units of
equity-oriented mutual funds, subject to a ceiling of 5% of the total outstanding advances
(including Commercial Paper) as on March 31 of the previous year.
- The finance ministry spelt out structure of the government-sponsored ARC called the
Asset Reconstruction Company (India) Limited (Arcil), this pilot project of the ministry
would pave way for smoother functioning of the credit market in the country. The
Government will hold 49% stake and private players will hold the rest 51% - the majority
being held by Icici Bank (24.5%).

MEANING4 OF CONSUMER BEHAVIOUR

Customer behaviour is the study of how individuals make decisions to spend their
available resources (Time, Money and Efforts) on consumption related items. It includes
the study what they buy, whey they buy it, when they buy it, where they buy it, how often
they buy it and how often they use it.3
Consumer behaviour is the process where by individuals decide what, when, where, how
and from whom to purchase goods and services. Buying behaviour may be viewed as an
orderly process here by individual interacts with his environment for the purpose of
making market decision on products and services.6
Consumer behaviour is a study of how individuals make decision to spend their available
resources (time, money and effort) or consumption related aspects (What they buy? When
they buy? How they buy? ).2

STEPS IN DECISION MAKING PROCESS1

CONSUMER BUYING BEHAVIOR23

Buying Behavior is the decision processes and acts of people involved in buying and
using products.

Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A
firm needs to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the firms
success.

The marketing concept stresses that a firm should create a Marketing Mix (MM)
that satisfies (gives utility to) customers, therefore need to analyze the what,
where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

Factors That Effect the Consumer Buying Decision Process15

1. Personal Factors
2. Psychological Factors
3. Social Factor

CONSUMER BEHAVIOUR AND MARKETING STRATEGY7

The study of consumers helps firms and organizations improve their marketing strategies
by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment

(e.g., culture, family, signs, media);

The behaviour of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that
differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

CONSUMER DECISION MAKING20

The most important environment in which firms operate is their customer environment
because the basic belief of marketing oriented company that the customer is the centre
around which the business revolves. Therefore, marketing people need to understand the
processes that their customers go through when making decision.
CONSUMER BEHAVIOUR AND PRODUCT POSITIONING21
Product positioning is placing the product, service, company, or shop in the mind of
consumer or target group. Through positioning marketers seek the right fit between a
product and desired customer benefits. The right positioning means understanding the
consumer perception process in general and perception of companys product in
particular. For example, Samsung brand is perceived as premium brand by few customers
and value-driven brand by others in the market, but marketer must find out what makes
their target market to perceive differently and position it accordingly.
MARKETING RESEARCH IN CONSUMER BEHAVIOUR16

Studying consumer behaviour enables marketing researchers to predict how consumers

will react to promotional messages and to understand why they make the purchase
decision they do. Marketers realized that if they know more about the consumer decision
making criteria, they can design marketing strategies and promotional messages that will
influence consumers more effectively. The importance of consumer behaviour made
marketers to think of a separate branch in marketing research - Consumer research, to
deal exclusively for consumer related issues. The current focus of consumer research is
on study of underlying needs and motives in taking purchase decisions, consumer
learning process and attitude formation process.

CONSUMER BEHAVIOUR AND SEGMENTATION17

Segmentation basically involves dividing consumers into groups such that members of a
group (1) are as similar as possible to members of that same group but (2) differ as much
as possible from members other segments. This enables us then to "treat" each segment
differentlye.g., by:

Providing different products (e.g., some consumers like cola taste, while others
prefer lime)

Offering different prices (some consumers will take the cheapest product
available, while others will pay for desired features)

Distributing the products where they are likely to be bought by the targeted
segment.

MARKETING STRATEGIES IN CONSUMER BEHAVIOUR 8

Understanding the consumer behaviour is the basic for marketing strategy formulation.
Consumers reaction to this strategy determines the organization success or failure. In this
competitive environment Organisations can survive only by offering more customer
value - difference between all the benefits derived from a total product and all the costs
of acquiring those benefits than competitors. Providing superior customer value
requires the organization to do a better job of anticipating and reacting to the customer
needs than the competitor. Marketing strategy is basically the answer to the question:
How will company provide superior customer value to its target market? The answer to
this question requires formulation of marketing - mix product, price, place and
promotion - strategies. The right combination of these elements meets customer
expectation and provides customer value. For example, marketer of a bike must know the
customers performance expectations, desired service, Price willing to pay, information he
seeks and after-sales service to provide superior customer value.
CONSUMER BEHAVIOUR AND GOVERNMENTAL DECISION MAKING18
To major areas where consumer behaviour study helps government is in policy making
on various services, and in designing consumer protection legislation. The knowledge of
peoples attitudes, beliefs, perceptions and habits provides adequate understanding of
consumers.

CONSUMER BEHAVIOUR AND NON-PROFIT AND SOCIETAL

MARKETING19
A sound knowledge of consumer behaviour can help the organisations that sell ideas and
concepts of social relevance. Institutions that promote family planning, AIDS free
society, governmental agencies, religion orders and universities also appeal to the public
for their support in order to satisfy some want or need in society. The knowledge about
potential contributors, what motivate their generosity, how these motives can be
effectively appealed is useful for the organizations involved in these activities.

CONSUMER DEMAND SHIFTING TOWARDS LIFESTYLE PRODUCT 28

The economy is on an all-time high and consumerism the order of the day; the rs 70,000crore domestic fmcg industry has had a particularly satisfying year in 2007. A notable
change in the last couple of years has been the shift of the consumers demand from
entry-level to mid and premium products, which means that flat screen tvs have gained
preference over conventional crts. Frost-free refrigerators and fully automatic washing
machines are growing much faster than their mass-end cousins and split acs are gaining
precedence over cheaper window acs.

SOME SUCCESS STORIES33

Companies like Nokia, Reebok, Coke, PepsiCo and major automobile giants like Toyota,
Suzuki, Ford, Chevrolet, Mercedes etc.. has made a market for themselves in India. How
did they establish their own individual market in a country like India which is prone to
diverse cultures? Lets take the example of Ford. Before establishing their base in India,
they engaged in a lot of researches. Their researches were made on the Indian peoples
social life, personal tastes and preferences, way of life, how they identify an effective
product and what makes them get attracted towards a product. The social and economic
conditions were analyzed.

COMPANY PROFILE20
HDFC BANK IN INDIA
HDFC Bank was amongst the first to receive an 'in-principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector from Housing Development
Finance Corporation Limited (HDFC), in 1994 during the period of liberalization of the
banking sector in India. HDFC India was incorporated in August 1994 in the name of
'HDFC Bank Limited'. HDFC India commenced operations as a Scheduled Commercial
Bank in January 1995.
HDFC India deals in varieties of products like home loan, standard life insurance, mutual
fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like
Calcutta, Chennai, Delhi, Bangalore, Hyderabad, Ahmedabad apart from HDFC Mumbai.
Network : More than 468 branches over 212 cities across the country
ATMs : The ATMs of HDFC India can be accessed by all domestic and international
Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.
Authorised capital : Rs. 450 crore
Paid-up capital : Rs. 282 crore
Equity : Holds 24.2%
Listing : HDFC India has been listed on the Stock Exchange, Mumbai and the National
Stock Exchange. The bank's American Depository Shares are listed on the New York
Stock Exchange (NYSE) under the symbol "HDB".

HDFC PRODUCT RANGE24

HDFC Bank India provides the following range of products:

Savings Account

HDFC Bank Preferred

Sweep-In Account

Super Saver Account

HDFC Bank Plus

Demat Account

HDFC Mutual Fund

HDFC Standard Life Insurance

HDFC INDIA INNOVATIVE SERVICES

HDFC Phone Banking

HDFC ATM

HDFC Inter-city/Inter-branch Banking

HDFC Net Banking

HDFC International Debit Card

HDFC Mobile Banking

HDFC Bill Pay

HDFC BANK LOANS

HDFC Personal Loan

HDFC New Car Loan and Used Car Loan

HDFC Loan Against Shares

HDFC Two Wheeler & Consumer Loan

HDFC Home Loan

ICICI Bank21
ICICI Bank is India's second-largest bank. The Bank has a network of about 573 branches
and extension counters and over 2,000 ATMs. ICICI Bank was originally promoted in
1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned
subsidiary.
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution
from non-Japan Asia to be listed on the NYSE. In 2001, ICICI bank acquired Bank of
Madura Limited.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross
border needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada
and Russia, branches in Singapore and Bahrain and representative offices in the United
States,

China,

United

Arab

Emirates,

Bangladesh

and

South

Africa.

Today, ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its

specialised subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management.

PERSONAL LOANS27
Whenever a person considers taking a loan the first question that comes to mind is about
the type of loan that he/she can get. The personal loan can be used for any purpose, such
as renovating your house, marriage expenses, medical expenses, holidays, purchasing
consumer durables, higher education etc.
No clarification is needed while applying for the personal loan. Neither do you require a
guarantor or security. You can obtain a personal loan primarily on the basis of your
income.
The factors that decide how good an interest rate you can get for your personal loan
include your income, your employer's profile, and your repayment track record for other
existing loans.
Many people, these days, take personal loans to repay their credit card dues, which carry
a higher interest rates than personal loan.
PERSONAL LOAN FEATURES:

Loans for salaried & self-employed individuals

Special loans for doctors, chartered accountants, engineers, architects, company

secretaries, and ICWAI graduates

Loans are available from Rs. 50000 to Rs. 25 lakh for any purpose depending on
your requirement

Flexible repayment options, ranging from 12 to 60 months

Hassle-free loans - No security/guarantor/collateral required

Repay with easy EMIs

Balance transfer facility to retire any higher cost debt

Loans available against repayment track record of any existing auto, personal or
home loan

Loans available against proof of life insurance policy premium receipts

Simple procedure, minimal documentation, & quick approval

PERSONAL LOANS - PROS & CONS29

A personal loan is often described as unsecured loans because it allows you to borrow
money without having to provide security against it. You can use the personal loans for
the purchase of your house or a car. The personal loans are better for a longer time period.

Following are some of the advantages of the personal loans- While making an evaluation of the cost of the loan you need to consider the TAR (Total
Amount Repayable) which means that the total amount that you owe towards the bank or
a lender which also includes the rate of interest on the loan and the payments need to be
made on a monthly basis. A suitable deal is where you get a lower TAR.
- The maximum amount that you can borrow ranges up to 25,000 and the time period
for the refund is up to ten years. The advantage with the personal loan is that when you
take a maximum amount as a loan then you have to pay a lower rate of interest.
- It is totally different from the terms and conditions for the mortgage. The unsecured
personal loans are not protected for your property so if you are not able to refund the loan
then you can be rest assured that your house is safe.
- The interest rates for the personal loans are also fixed. This makes it easy for you to
make a planning for the payments that has to be made. The refunding amount also
remains stagnant all the way through the time period of the loan.
- With a dynamic market scenario of loans the rate of interest has seen so many ups and
downs. Now to get a loan it has become simpler than ever before. The financial
companies offer you loans through their telephone service. They have toll-free numbers
and they guide and provide you the best deals and offers.

Following are some of the disadvantages of the personal loans:

- Various financial companies and clever lenders introduce certain plans like- make a
purchase and pay it later, offer free gift items, etc. These will only raise your price of the
loan. So take a wiser decision and go for the basic loan with favorable terms and
conditions. Always make a choice for those loans which have a low rate of interest and
where the terms of the refund are moderate.
- Dont make a hasty decision in choosing a personal loan. It is not right to take a loan
from just another bank. Make a survey and try to find out various offers and plans that
various other banks and financial companies have to offer. Now with the internet things
has become very simpler. You can visit various financial companies, what are the offers
and plans these companies are offering. Accordingly you can take a decision whichever
plan suits you.
- The PPI (Payment Protection Insurance) provides you the refund on a monthly basis if
you are not able to work, you have met with an accident, in case you have suffered a
heavy loss in your business, you are not employed anywhere, and make a payment for
your loan in case of your death. You should be aware of this type of insurance as it is a
costly affair and it adds an amount ranging from 1,000 to 5,000.
- According to a survey majority of the personal loans are paid off before the completion
of their tenure. You need to look out for those lenders who take heavy amount for the
settling of your loans before the tenure.
- You have to handle the annual percentage rates very carefully as it entirely depends on
your financial credibility. You probably might not be eligible as to be entitled for it. You
need to have a good credit history otherwise you wont be able to qualify for the lenders
potential customer list.

Here are few guidelines before taking any concrete decision regarding the
personal loans:35
- Analyze all the offers and schemes before applying for the loan. There are various
lenders who are not real and their motive is just to earn profits.
- To be entitled for a personal loan the procedure followed is rigorous although there is
less documentation involved in it.
- Go through the contract thoroughly and reassess the closure price and for any hidden
cost (If any). It is an important step which will only benefit you.
- If you are planning for a personal loan then most of the time it is cheaper than getting a
credit card.
- Excluding the consumer durable loans the rate of interest for the personal loans are
high.

UNSECURED PERSONAL LOANS - PROS AND CONS28

As you make progress in your life your requirements and needs increase and to fulfill
these needs you need some personal loans. Majority of the people prefer unsecured loans
because it allows them to borrow money without having to provide security against it,
such as your home or a car. There are various loan types for the personal loans like- loans
for the people with bad credit, education loans, medical loans, home loans, and marriage
loans etc.
Unsecured loans fulfill the need to borrow a small amount of cash. The main advantage
for the unsecured loan is that you dont have to keep any valuable item as security with
the lender like your house or jewelry. These types of loans are preferred by those people
who are either students or those who dont posses their own house. And there are those
kinds of people who dont want to put their house in some kind of risk.

Following are some features of the Unsecured Personal loans:

- A survey has shown significantly rise in the people opting for unsecured personal loans.
And the reason of the popularity of the unsecured personal loans are- that it does not
require any security, the loan process is very quick, minimal paperwork.
- For the unsecured personal loans there is a fixed amount of 25,000. Usually the
amount is lower for the unsecured personal loans and you dont have to give any of your
valuable items as security to the lenders.
- The borrower has to pay a higher rate of interest for the unsecured personal loans
ranging from seven to thirty percent which is relatively higher.
- You need to make a refund of an unsecured personal loan within a time period of six to
ten years. Secured loan has a bigger time period as compared to the unsecured loan.

- Unsecured personal loans are better for those people who are in a need of instant
financial assistance as these loans have a minimal paper work. The approval process is
also very quick and there is no appraisal of the collateral item
.
- As there is an absence of the appraisal of the collateral. The unsecured personal loans
are best suited to those people who dont own their property, probably the tenants.
It is quite evident from the name that you dont have to deposit any collateral against the
loan with the lender. The lender gets the assurance of the refunding of the loan when you
deposit the collateral against the loan. As discussed earlier in unsecured personal loans
there are no collateral needed. The lenders in order to minimize the risk factor charge
heavy rate of interest from you, the time period of the refund of the loan is kept for a
shorter period, the amount of the loan is also small, and the terms and the guidelines are
kept very stringent.
There are people who are not of the view of putting their dream house on risk just in case
they are not able to refund the loan. The unsecured personal loans are best for those
people who dont have their own house, people living on rent, students who are away
from their native places. The unsecured personal loans should be preferred in those
conditions where you dont have anything to give to the lender as security. The unsecured
personal loans are most costly than the secured personal loans.
The lender judges the refunding capacity from your past financial background and the
information about your earnings projected by you just in case you have not deposited any
collateral. Usually it is your financial background and your current earnings that act as a
deciding factor of your rate of interest. The lenders also provides the unsecured personal
loans for those who are financially dependant on others those have a age limit above sixty
years and those who are very poor and are not able to fulfill their basic necessities.

DOCUMENTS FOR PERSONAL LOAN IN INDIA26

Documents Requirements For Salaried Individuals, Self employed (Professionals),Self
Employed (Individuals),Self Employed (Pvt Cos and Partnership Firms) Personal Loan.

SALARIED INDIVIDUALS
Proof of applicant's identity (one of the following): Applicant's Passport
Applicant's Defense identity card
Applicant's Driving license
Applicant's Government identity card
Applicant's Photo PAN card
Applicant's Voter's identity card
Applicant's Photo ration card

Applicant's Proof of residence (any one of the following)

Applicant's Passport
Applicant's Telephone (land/mobile) bill
Applicant's Driving license
Applicant's Voter's identity card
Applicant's Ration card
Applicant's Electricity bill
Applicant's Society outgoing bill
Applicant's Life Insurance Premium receipt

Applicant's Proof of age (any one of the following)

Applicant's Passport
Applicant's Driving license
Applicant's Birth certificate
Applicant's LIC Policy or Premium receipt clearly indicating the applicant's age
Applicant's Photo ration card
Applicant's Voter's identity card
Applicant's School leaving certificate

Financial documents
Bank Statements (latest 3 months bank statement / 6 months bank passbook) Latest salary
slip or current dated salary certificate with latest Form 16

Self employed (Professionals)

Proof of applicant's identity (one of the following): Applicant's Passport
Applicant's Defense identity card
Applicant's Driving license
Applicant's Government identity card
Applicant's Photo PAN card
Applicant's Voter's identity card
Applicant's Photo ration card

Applicant's Proof of residence (any one of the following)

Applicant's Passport
Applicant's Telephone (land/mobile) bill
Applicant's Driving license
Applicant's Voter's identity card
Applicant's Ration card
Applicant's Electricity bill
Applicant's Society outgoing bill
Applicant's Life Insurance Premium receipt

Applicant's Proof of age (any one of the following)

Applicant's Passport
Applicant's Driving license
Applicant's Birth certificate
Applicant's LIC Policy or Premium receipt clearly indicating the applicant's age
Applicant's Photo ration card
Applicant's Voter's identity card
Applicant's School leaving certificate

Financial documents
Bank Statements (latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA
Qualification proof of the highest professional degree

Self Employed (Individuals)

Proof of applicant's identity (one of the following): Applicant's Passport
Applicant's Defense identity card
Applicant's Driving license
Applicant's Government identity card
Applicant's Photo PAN card
Applicant's Voter's identity card

Applicant's Photo ration card

Applicant's Proof of residence (any one of the following)
Applicant's Passport
Applicant's Telephone (land/mobile) bill
Applicant's Driving license
Applicant's Voter's identity card
Applicant's Ration card
Applicant's Electricity bill
Applicant's Society outgoing bill
Applicant's Life Insurance Premium receipt

Applicant's Proof of age (any one of the following)

Applicant's Passport
Applicant's Driving license
Applicant's Birth certificate
Applicant's LIC Policy or Premium receipt clearly indicating the applicant's age
Applicant's Photo ration card
Applicant's Voter's identity card
Applicant's School leaving certificate

Financial documents
Bank Statements(latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA
Proof of continuation (Trade license /Establishment /Sales Tax certificate)
Other Mandatory Documents (Sole Prop. Decal. Or Cert. Copy of Partnership
Deed,Cert. Copy of MOA, AOA & Board resolution.)

Self Employed (Pvt Cos and Partnership Firms)

Proof of applicant's identity (one of the following): Applicant's Passport
Applicant's Defense identity card
Applicant's Driving license
Applicant's Government identity card
Applicant's Photo PAN card
Applicant's Voter's identity card
Applicant's Photo ration card

Applicant's Proof of residence (any one of the following)

Applicant's Passport
Applicant's Telephone (land/mobile) bill
Applicant's Driving license
Applicant's Voter's identity card
Applicant's Ration card
Applicant's Electricity bill
Applicant's Society outgoing bill
Applicant's Life Insurance Premium receipt

Applicant's Proof of age (any one of the following)

Applicant's Passport
Applicant's Driving license
Applicant's Birth certificate
Applicant's LIC Policy or Premium receipt clearly indicating the applicant's age
Applicant's Photo ration card
Applicant's Voter's identity card
Applicant's School leaving certificate

Financial documents
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA
Proof of continuation (Trade license /Establishment /Sales Tax certificate)
Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership
Deed, Certified true copy of Memorandum & Articles of Association (certified by
Director) & Board resolution (Original)

PERSONAL LOAN COMPARISON22

Reviews
Institution name:
Product name:
Loan Details

Personal Loan

Express Loans

Loan purpose:
Amount requested:
Eligible loan amount:
Max Amount Allowed

Personal Loan
Rs.100,000
Rs.240,000
12 x salary multiple

Personal Loan
Rs.100,000
Rs. 0

(Salary):
Max Amount Allowed (Self

1 x income multiple

Employed):
Loan term:
EMI:
Total interest:
Total to repay:
Interest Rates

36 months
Rs.3,516
Rs.26,565
Rs.126,565

36 months
Rs.3,871
Rs.39,355
Rs.139,355

Interest rate:

23.00%

16.00%

Eligibility
Minimum income (NMI) -

Rs.8,000

Rs.7,000

Salaried:
Minimum income (NAI) -

Rs.60,000

Rs.60,000

Self Employed:
Maximum age:
Eligibility notes:

65 years
Employees of Public Ltd.

55 years
Salaried Individuals

cos. , Private Ltd. cos.

including employees of

MNCs Or Government.

Public and Private limited

Self employed professionals companies / Partnership

like Doctors, MBA's,

Firms / Proprietorship

Architects, CA's, Engineers, Firms, Government Sector

Traders & Manufacturers.

employees including public

sector undertakings and
central, state and local

bodies
Self Employed (Individuals)
- Filing I.T. Returns include self-employed Sole proprietors, Partners &
Directors in the Business of
Manufacturing, Trading or
Services

General Loan Features

Minimum loan amount:
Maximum loan amount:
Maximum term:
Interest frequency:
Extra repayments:

Rs.20,000
Rs.1,500,000
60 months
Monthly
Charges for late payment

Repayment:

(loans) 2% per month

Repayable in 12-60

The loan will be paid

monthly instalments as per

through post-dated cheques

the requirement of the

or through Standing

customer.

Instructions to debit your

Prepayment of the loan is

possible after 180 days of
availing the loan.

HDFC Bank account with

Security:
Insurance:
Exclusive features:

Rs.50,000
Rs.1,000,000
48 months
Monthly

the EMI amount.

Personal loan is one product Borrow from Rs. 10,000/- to

exclusively designed to

75,000/- for any purpose

meet all your financial

depending on your needs.

needs and fulfil your

Flexible repayment options,

desires. You can now secure

ranging from 12 to 36

a fast and easy personal

months.

loan for an amount up to

Repay with easy EMIs.

Documentation:

Rs. 15 lakhs

One of the lowest interest

Latest Salary slip,

rates in the market

For Salaried :

Last 3 months Bank

Proof of Identity (Passport

Statement,Last 2 years ITR

Copy/ Voters ID card/

with computation of income

Driving Licence/ Pan card/

/ Certified Financials,

Credit Card with photo/

Proof of Turnover (Latest

Company ID card of MNC/

Sales / Service tax returns),

Public Ltd./ PSU/ Govt.

Proof of Qualification

company/ Ration Card (If

Highest Degree (for

Photo is given)/ Photo

Professionals / Govt

attested by Bankers)

employees ,

Address Proof (Ration card

Proof of Office (any one)

Tel/elect. Bill/ Rental agr. /

Lease deed / Utility bill /

Passport copy/Trade licence

Municipal Tax receipt / title

/Est./Sales Tax certificate)

deed,Proof of Residence

Bank Statements (latest 3

(any one) Ration Card /

months bank statement

Utility bill / LIC Policy

/passbook).

Receipt,

Age of bank A/C should be

Proof of Identity (any

6 months Latest 3 months

one)Passport / Driving

salary slip or current dated

Licence / Voters ID / PAN

salary certificate or 3 Salary

card / Photo Credit Card /

credits in the bank A/C

Employee ID card.

For Self employed:

Proof of Identity (Passport
Copy/ Voters ID card/
Driving Licence/ Pan card/
Cr. Card with photo/ Ration
card (If Photo is given)
/Photo attested by Bankers).

Address Proof (Ration card

Tel/elect. Bill/ Rental agr. /
Passport copy/Trade licence
/Est./Sales Tax certificate)
Bank Statements (latest 3
months bank statement
/passbook). Age of Bank
A/C should be 6 months.
Last 2 years ITR along with
computation of
income/P&L/Balance Sheet.
Fees
Processing fees:
Early repayment fee:

2%
5.6% on principal

2% of the loan amount

4% pre-payment is allowed

outstanding

only after 6 months

ICICI Bank - Personal Loan22

General
Institution name:

Product Name:
Purpose:
Loan Details

Personal Loan
Resident

Loan Type:
Amount Requested:
Max Amount Allowed (Salary):
Max Amount Allowed (Self

Personal Loan
Rs.100,000
12 x salary multiple
1 x income multiple

Employed):
Loan Term:
EMI:
Total Interest:
Total to Repay:

36 months
Rs.3,871
Rs.39,355
Rs.139,355

Interest Rates
Interest Rate:
Eligibility
Minimum Income (NMI) -

23.00%
Rs.8,000

Salaried:
Minimum Income (NAI) Self

Rs.60,000

Employed:
Maximum Age:
Eligibility Notes:

65 years
Employees of Public Ltd. cos. , Private Ltd. cos.
MNCs Or Government.
Self employed professionals like Doctors, MBA's,
Architects, CA's, Engineers, Traders &
Manufacturers.

Other Loan Features

Loan Amount:
Duration:

Rs.20,000 to Rs.1,500,000
0 to 60 months

Extra Repayments:
Repayment:

Charges for late payment (loans) 2% per month

Repayable in 12-60 monthly instalments as per the
requirement of the customer.
Prepayment of the loan is possible after 180 days of

Exclusive Features:

availing the loan.

Personal loan is one product exclusively designed to
meet all your financial needs and fulfil your desires.
You can now secure a fast and easy personal loan for

Documentation:

an amount up to Rs. 15 lakhs

Latest Salary slip,
Last 3 months Bank Statement,Last 2 years ITR with
computation of income / Certified Financials,
Proof of Turnover (Latest Sales / Service tax
returns),
Proof of Qualification Highest Degree (for
Professionals / Govt employees ,
.

Fees
Processing Fees:
Prepayment Charges:

2%
5.6% on principal outstanding

HDFC Bank - Express Loans22

General
Institution name:
Product Name:
Purpose:
Loan Details

Express Loans
Resident

Loan Type:
Amount Requested:
Loan Term:
EMI:
Total Interest:
Total to Repay:

Personal Loan
Rs.100,000
36 months
Rs.3,516
Rs.26,565
Rs.126,565

Interest Rates
Interest Rate:
Eligibility
Minimum Income (NMI) -

16.00%
Rs.7,000

Salaried:
Minimum Income (NAI) Self

Rs.60,000

Employed:
Maximum Age:
Eligibility Notes:

55 years
Salaried Individuals including employees of Public
and Private limited companies / Partnership Firms /
Proprietorship Firms, Government Sector employees
including public sector undertakings and central,
state and local bodies
Self Employed (Individuals) - Filing I.T. Returns include self-employed - Sole proprietors, Partners &
Directors in the Business of Manufacturing, Trading
or Services

Other Loan Features

Loan Amount:
Duration:
Repayment:

Rs.50,000 to Rs.1,000,000
0 to 48 months
The loan will be paid through post-dated cheques or
through Standing Instructions to debit your HDFC

Exclusive Features:

Bank account with the EMI amount.

Borrow from Rs. 10,000/- to 75,000/- for any
purpose depending on your needs.
Flexible repayment options, ranging from 12 to 36
months.
Repay with easy EMIs.

Documentation:

One of the lowest interest rates in the market

For Salaried :
Proof of Identity (Passport Copy/ Voters ID card/
Driving Licence/ Pan card/ Credit Card with photo/
Company ID card of MNC/ Public Ltd./ PSU/ Govt.
company/ Ration Card (If Photo is given)/ Photo
attested by Bankers)
Address Proof (Ration card Tel/elect. Bill/ Rental
agr. / Passport copy/Trade licence /Est./Sales Tax
certificate)
Bank Statements (latest 3 months bank statement
/passbook).
Age of bank A/C should be 6 months Latest 3
months salary slip or current dated salary certificate
or 3 Salary credits in the bank A/C
For Self employed:
Proof of Identity (Passport Copy/ Voters ID card/
Driving Licence/ Pan card/ Cr. Card with photo/
Ration card (If Photo is given) /Photo attested by
Bankers).
Address Proof (Ration card Tel/elect. Bill/ Rental

agr. / Passport copy/Trade licence /Est./Sales Tax

certificate)
Bank Statements (latest 3 months bank statement
/passbook). Age of Bank A/C should be 6 months.
Last 2 years ITR along with computation of
income/P&L/Balance Sheet.
Fees
Processing Fees:
Prepayment Charges:

2% of the loan amount

4% pre-payment is allowed only after 6 months

LOAN PAYMENT SCHEDULE31

ICICI BANK
Payment
number

Beginning
Loan
Balance

TotalPayment

Principal

Interest

Ending
Loan
Balance

Cummulative
Interest

Rs.100000.00

Rs.3870.97 Rs.1954.31 Rs.1916.67 Rs.98045.69

Rs.1916.67

Rs.98045.69

Rs.3870.97 Rs.1991.76 Rs.1879.21 Rs.96053.93

Rs.3795.88

Rs.96053.93

Rs.3870.97 Rs.2029.94 Rs.1841.03 Rs.94023.99

Rs.5636.91

Rs.94023.99

Rs.3870.97 Rs.2068.85 Rs.1802.13 Rs.91955.15

Rs.7439.04

Rs.91955.15

Rs.3870.97 Rs.2108.50 Rs.1762.47 Rs.89846.65

Rs.9201.51

Rs.89846.65

Rs.3870.97 Rs.2148.91 Rs.1722.06 Rs.87697.74

Rs.10923.57

Rs.87697.74

Rs.3870.97 Rs.2190.10 Rs.1680.87 Rs.85507.64

Rs.12604.44

Rs.85507.64

Rs.3870.97 Rs.2232.08 Rs.1638.90 Rs.83275.56

Rs.14243.34

Rs.83275.56

Rs.3870.97 Rs.2274.86 Rs.1596.11 Rs.81000.71

Rs.15839.46

10

Rs.81000.71

Rs.3870.97 Rs.2318.46 Rs.1552.51 Rs.78682.25

Rs.17391.97

11

Rs.78682.25

Rs.3870.97 Rs.2362.90 Rs.1508.08 Rs.76319.35

Rs.18900.05

12

Rs.76319.35

Rs.3870.97 Rs.2408.18 Rs.1462.79 Rs.73911.17

Rs.20362.83

13

Rs.73911.17

Rs.3870.97 Rs.2454.34 Rs.1416.63 Rs.71456.83

Rs.21779.46

14

Rs.71456.83

Rs.3870.97 Rs.2501.38 Rs.1369.59 Rs.68955.44

Rs.23149.05

15

Rs.68955.44

Rs.3870.97 Rs.2549.33 Rs.1321.65 Rs.66406.12

Rs.24470.70

16

Rs.66406.12

Rs.3870.97 Rs.2598.19 Rs.1272.78 Rs.63807.93

Rs.25743.48

17

Rs.63807.93

Rs.3870.97 Rs.2647.99 Rs.1222.99 Rs.61159.94

Rs.26966.47

18

Rs.61159.94

Rs.3870.97 Rs.2698.74 Rs.1172.23 Rs.58461.20

Rs.28138.70

19

Rs.58461.20

Rs.3870.97 Rs.2750.47 Rs.1120.51 Rs.55710.74

Rs.29259.21

20

Rs.55710.74

Rs.3870.97 Rs.2803.18 Rs.1067.79 Rs.52907.55

Rs.30327.00

Rs.52907.55

Rs.3870.97 Rs.2856.91 Rs.1014.06 Rs.50050.64

Rs.31341.06

22

Rs.50050.64

Rs.3870.97 Rs.2911.67

Rs.959.30 Rs.47138.97

Rs.32300.36

23

Rs.47138.97

Rs.3870.97 Rs.2967.48

Rs.903.50 Rs.44171.50

Rs.33203.86

24

Rs.44171.50

Rs.3870.97 Rs.3024.35

Rs.846.62 Rs.41147.15

Rs.34050.48

25

Rs.41147.15

Rs.3870.97 Rs.3082.32

Rs.788.65 Rs.38064.83

Rs.34839.13

26

Rs.38064.83

Rs.3870.97 Rs.3141.40

Rs.729.58 Rs.34923.43

Rs.35568.71

27

Rs.34923.43

Rs.3870.97 Rs.3201.61

Rs.669.37 Rs.31721.83

Rs.36238.07

28

Rs.31721.83

Rs.3870.97 Rs.3262.97

Rs.608.00 Rs.28458.85

Rs.36846.07

29

Rs.28458.85

Rs.3870.97 Rs.3325.51

Rs.545.46 Rs.25133.34

Rs.37391.54

30

Rs.25133.34

Rs.3870.97 Rs.3389.25

Rs.481.72 Rs.21744.09

Rs.37873.26

31

Rs.21744.09

Rs.3870.97 Rs.3454.21

Rs.416.76 Rs.18289.88

Rs.38290.02

32

Rs.18289.88

Rs.3870.97 Rs.3520.42

Rs.350.56 Rs.14769.47

Rs.38640.58

33

Rs.14769.47

Rs.3870.97 Rs.3587.89

Rs.283.08 Rs.11181.58

Rs.38923.66

34

Rs.11181.58

Rs.3870.97 Rs.3656.66

Rs.214.31

Rs.7524.92

Rs.39137.97

35

Rs.7524.92

Rs.3870.97 Rs.3726.74

Rs.144.23

Rs.3798.17

Rs.39282.20

36

Rs.3798.17

Rs.3870.97 Rs.3798.17

Rs.72.80

Rs.0.00

Rs.39355.00

21

LOAN PAYMENT SCHEDULE

Lender:

HDFC Bank

Product name:

Express Loans

Interest rate:

16.00%

Payment
number
1

Beginning
Total
Principal
Interest
Ending
Cummulative
Loan
Payment
Loan
Interest
Balance
Balance
Rs.100000.00 Rs.3515.70 Rs.2182.37 Rs.1333.33 Rs.97817.63
Rs.1333.33

Rs.97817.63 Rs.3515.70 Rs.2211.47 Rs.1304.24 Rs.95606.16

Rs.2637.57

Rs.95606.16 Rs.3515.70 Rs.2240.95 Rs.1274.75 Rs.93365.21

Rs.3912.32

Rs.93365.21 Rs.3515.70 Rs.2270.83 Rs.1244.87 Rs.91094.37

Rs.5157.19

Rs.91094.37 Rs.3515.70 Rs.2301.11 Rs.1214.59 Rs.88793.26

Rs.6371.78

Rs.88793.26 Rs.3515.70 Rs.2331.79 Rs.1183.91 Rs.86461.47

Rs.7555.69

Rs.86461.47 Rs.3515.70 Rs.2362.88 Rs.1152.82 Rs.84098.58

Rs.8708.51

Rs.84098.58 Rs.3515.70 Rs.2394.39 Rs.1121.31 Rs.81704.20

Rs.9829.82

Rs.81704.20 Rs.3515.70 Rs.2426.31 Rs.1089.39 Rs.79277.88

Rs.10919.21

10

Rs.79277.88 Rs.3515.70 Rs.2458.66 Rs.1057.04 Rs.76819.22

Rs.11976.25

11

Rs.76819.22 Rs.3515.70 Rs.2491.45 Rs.1024.26 Rs.74327.77

Rs.13000.51

12

Rs.74327.77 Rs.3515.70 Rs.2524.67

Rs.991.04 Rs.71803.10

Rs.13991.54

13

Rs.71803.10 Rs.3515.70 Rs.2558.33

Rs.957.37 Rs.69244.78

Rs.14948.92

14

Rs.69244.78 Rs.3515.70 Rs.2592.44

Rs.923.26 Rs.66652.34

Rs.15872.18

15

Rs.66652.34 Rs.3515.70 Rs.2627.01

Rs.888.70 Rs.64025.33

Rs.16760.88

16

Rs.64025.33 Rs.3515.70 Rs.2662.03

Rs.853.67 Rs.61363.30

Rs.17614.55

17

Rs.61363.30 Rs.3515.70 Rs.2697.53

Rs.818.18 Rs.58665.77

Rs.18432.73

18

Rs.58665.77 Rs.3515.70 Rs.2733.49

Rs.782.21 Rs.55932.28

Rs.19214.94

19

Rs.55932.28 Rs.3515.70 Rs.2769.94

Rs.745.76 Rs.53162.34

Rs.19960.70

20

Rs.53162.34 Rs.3515.70 Rs.2806.87

Rs.708.83 Rs.50355.47

Rs.20669.53

21

Rs.50355.47 Rs.3515.70 Rs.2844.30

Rs.671.41 Rs.47511.17

Rs.21340.94

22

Rs.47511.17 Rs.3515.70 Rs.2882.22

Rs.633.48 Rs.44628.95

Rs.21974.42

23

Rs.44628.95 Rs.3515.70 Rs.2920.65

Rs.595.05 Rs.41708.30

Rs.22569.47

24

Rs.41708.30 Rs.3515.70 Rs.2959.59

Rs.556.11 Rs.38748.71

Rs.23125.58

25

Rs.38748.71 Rs.3515.70 Rs.2999.05

Rs.516.65 Rs.35749.65

Rs.23642.23

26

Rs.35749.65 Rs.3515.70 Rs.3039.04

Rs.476.66 Rs.32710.61

Rs.24118.90

27

Rs.32710.61 Rs.3515.70 Rs.3079.56

Rs.436.14 Rs.29631.05

Rs.24555.04

28

Rs.29631.05 Rs.3515.70 Rs.3120.62

Rs.395.08 Rs.26510.43

Rs.24950.12

29

Rs.26510.43 Rs.3515.70 Rs.3162.23

Rs.353.47 Rs.23348.20

Rs.25303.59

30

Rs.23348.20 Rs.3515.70 Rs.3204.39

Rs.311.31 Rs.20143.80

Rs.25614.90

31

Rs.20143.80 Rs.3515.70 Rs.3247.12

Rs.268.58 Rs.16896.68

Rs.25883.48

32

Rs.16896.68 Rs.3515.70 Rs.3290.41

Rs.225.29 Rs.13606.27

Rs.26108.77

33

Rs.13606.27 Rs.3515.70 Rs.3334.29

Rs.181.42 Rs.10271.98

Rs.26290.19

34

Rs.10271.98 Rs.3515.70 Rs.3378.74

Rs.136.96

Rs.6893.24

Rs.26427.15

35

Rs.6893.24 Rs.3515.70 Rs.3423.79

Rs.91.91

Rs.3469.44

Rs.26519.06

36

Rs.3469.44 Rs.3515.70 Rs.3469.44

Rs.46.26

Rs.0.00

Rs.26565.32

HOW TO APPLY FOR A PERSONAL LOAN35

Is it easy to get a personal loan? Well, yes and no.

On the one hand, there is less paperwork, since the bank does not have to verify any asset
as in the case of home loans. On the other hand, there are stringent income criteria to
qualify for personal loans. But once you make the grade it takes only about three days for
you to get a personal loan -a lot less time than a home or car loan.
So, here goes a step-by-step break-up of the personal loan application process:

Step 1: Enquiry with a financier:

The first step is to get in touch with a lender. How do you know whom you should
approach? You need to get in touch with as many lenders as possible and get them to
make loan offers to you. Then negotiate with them to get the best interest rate. Check if
there are any special offers.
After you have got all the banks to make their offers to you, select your lender based on
the information you have in front of you.

Step 2: Documents Collection

After you finalise your lender, the lender's direct selling agent will visit you and collect
documents supporting proof of income, residence proof, and identity. You may be
required to produce copies of IT returns, salary slips, bank statements, ration card,
passport, driving licence, and other relevant documents. These requirements vary from
lender to lender.

Step 3: Field Investigation Agency Representative Visit

After submitting the documents, a field investigator will visit your home to double
check the facts provided in the documents, such as your place of residence, tenure at
work place and so on. It is essential that you are present during this visit; otherwise
the investigator could report that the facts you provided do not actually add up, thus
forcing the lender to reject your loan application.

Step 4: Loan approved

Once the lender is satisfied with the veracity of your documents, the loan is approved.
The lender then disburses the amount through cheques or demand drafts (DD).

Charges applicable before and after the personal loan

Very often we fail to read the fine print in a loan document. The real cost of your personal
loan is visible only when you factor in numerous other charges levied. If you intend to
make comparisons with other types of loans, it is necessary to take into account these
charges to arrive at the real cost. For example, the processing fee or prepayment fee in the
case of a personal loan will be different from that of a loan against property.
Here is a list of all charges that are levied either before the loan is disbursed or through
the course of the loan or when you terminate the loan:

Description of Charges:
Processing fee
Prepayment fee
Charges for late payment (loans)
Cheque bounce charges
Duplicate statements charges
Documentation charges
Service tax

Processing fee:
Processing fee is the amount charged by banks to cover the cost of processing your loan
application. Processing fees vary from one bank to another. Some banks ask you to pay
the processing fee upfront even before the loan is sanctioned. This is often charged when
you submit your loan application along with the supporting documents.

The processing fee is generally a percentage of the loan amount and is between 1-2% for
personal loans. Some banks levy a flat charge of Rs 1000 or Rs 2000 upfront, and then
deduct the balance processing fee (if any) from the loan amount before disbursal.

The processing fee is non-refundable. Some banks say the processing fee will be
refunded if the loan is not sanctioned. It is recommended that you take this in writing
from the bank as technically, processing fee is non-refundable.

Pre-payment fee:
The pre-payment fee is the penalty paid by the borrower for foreclosing the loan before
the actual tenure. Pre-payment fees are levied as a percentage of the outstanding principal
of the loan amount. The prepayment fee varies from bank to bank. It varies from 2% to
5% of the outstanding loan amount, if the repayment amount exceeds 25 per cent of the
outstanding loan amount.

Charges for late payment:

When the monthly installment (EMI) towards repayment of a loan is delayed the bank
collects the installment along with late payment charges. The late payment charge is also
known as the delayed payment charges or the overdue payment charges. Late payment
charges are fixed at the time of signing the loan contract.
This is chargeable if you make the payment after the due date. Late payment fees range
from 2% to 3% per cent of the EMI.

Cheque Bounce Charges:

Cheque bounces mean that a cheque has been presented for clearance, but the amount
written on the check exceeds the available balance in the account. It is often colloquially
referred to as a bounced cheque. Businesses frequently use the term dishonoured cheque.
If you have given post-dated cheques to the bank to debit the EMI from your account,
ensure that you have sufficient funds in your account every month. If a single cheque
bounces, the bank charges anything from Rs 250 to Rs 500 as penalties.

Duplicate Statements Charges:

When the loan is sanctioned, the lender gives you a statement detailing the repayment
schedule. If you lose it, you can request the bank to issue a duplicate statement. The
statement indicates your balance loan amount and the remaining EMIs. Banks charge
anywhere between Rs 100 to Rs 500 for issuing duplicate statements.

Documentation charges:
Banks levy documentation charges towards the verification of the various documents you
provide towards the loan application. Many banks employ third-party vendors to do the
document verification. The expense on this account is usually passed on t the customer,
which range from Rs 500 or Rs 1000.

Service tax:
Service tax is a tax levied on service providers who have annual revenue of more than 8
lakh. Banks loans too fall under the purview of service tax. Service tax is charged at the
rate of 12.36% on the interest and any other charges like processing fee levied by the
lender.

JUSTIFICATION OF THE STUDY

How do Buyers form their preference? Their preference is influenced by their past
buying experience, friends and associates advice, and the marketers and competitors
information and promises.
Satisfaction is a persons feelings of pleasure or disappointment resulting from
comparing a products perceived performance in relation to his or her expectation
As the definition makes it clear, satisfaction is a function of perceived performance and
expectations. If the performance falls short of the expectations of the customer, the
customer is dissatisfied. If the performance exceeds the expectations, the customer is
highly satisfied or delighted.
Many companies are aiming for high satisfaction because customers who are just
satisfied still find it easy to switch, when a better offer comes along. Those who are
highly satisfied are much less ready to switch. High satisfaction or delight creates an
emotional affinity with the brain, not just a rational preference. The result is high
customer loyalty.
In this highly competitive world customers plays a very important role. Thus, if a
company wants to survive then it should look forward to the determinants of customer
satisfaction. Though it is a very subjective issue that differs from individual to individual
yet, identifying some basic parameters of customer satisfaction is important.
Satisfaction is a persons feeling of pleasure and disappointment resulting from
comparing a products perceived performance in relation to his or her expectations. It is
only the customer delight that marketer aims for.
Though customer preference is a very qualitative term and it is very difficult to
measure. In this study an effort has been made to measure the customer preference level.

OBJECTIVES OF THE STUDY

In this era of cut throat competition, no company can even survive in the market place
without knowing its and its products strengths and weaknesses. It has to fortify itself
against threats from the environment and exploit its strengths or increase profits. And in
order to do so, the company has to conduct regular surveys to know the customers
opinions, needs, and preferences. Hence to know these opinions objectives are stated as:
To know the impact of various external factors on consumer preference :

Interest

Brand name

Tenure

Eligibility

Other Facilities

To find out the market share of Personal loan.

To study the effect of Interest of Personal loans.
To find the most effective media for advertisement.
To analyse different strategies used by different competitors for sale of
Their financial products in the market.
Determine the influence of reference group in the purchase decision of Personal
loan.

LITERATURE REVIEW

Once the problem is formulated, the researcher has to undertake an extensive literature
survey related to problem. The literature survey undertaken here includes books and
different websites from the internet.

Schiffman. G. Leon and kanuk lazare Leslie 1 - Study of the customer

behaviour is the study of how individuals make decisions to spend their available
resources (Time, Money and Efforts) on consumption related items. It includes
the study what they buy, whey they buy it, when they buy it, where they buy it,
how often they buy it and how often they use it. The primary purpose for the
study consumer behaviour as apart of marketing curriculum is to understand how
and how customers make their purchase decisions. There insights enable
marketers to design more effective marketing strategies.

Gupta.C .B and Dr. Nair. N.Rajan 2 - A business is based on understanding

the customer and providing the kind of products that the customer wants.

Mamoria C.B. and Mamoria Satish 3 -

Consumer behaviour is the process

where by individuals decide what, when, where, how and from whom to purchase
goods and services. Buying behaviour may be viewed as an orderly process here
by individual interacts with his environment for the purpose of making market
decision on products and services.

Nair Suja. R.4 - The success of the firm will be determined by how effective it
has been in meeting the diverse customer needs and wants by treating each
customer as unique and offering products and services to suit his/her needs.

Bennett Peter.D. And Kassarjian Haroldh

A great deal of research

activity in marketing is design to shed light on the customer decision process.

Kothari C.R.6

For data analysis different statistical techniques are being used

such as scaling techniques, correlation, hypothesis testing.

 Belch George E and Belch Michael A7

,Advertising & promotion, Sxth

Edition ,Tata McGraw Hill ,New Delhi Pp-166-169

Batra Rajeev, Myen John G , Aaker David A8 Advertising management,

Fifth Edition, Prentice-Hall India ,New Delhi. Pp-174-179

Mishra M N ,Sales promotion and Advertising management 9, Second

Edition , Himalya Publishing House , New Delhi pp:1-2

Baack

Clow10,

Integrated

advertising,

promotion

&

Marketing

communication, Third Edition, Prentice hall, New Delhi P p:85

11. Czinkota kotabe,11 Marketing management, Second Edition,

Thomson- south Western, Pp-156

Kotler Philip & Keller Kevin lane12, Marketing management, 12th Edition
PEARSON(Prentice Hall) Pp-297

Loudon ,David L, and Bitta, Abert J. Della13

, Consumer Behavior and

concepts and applications, Fourth Edition, Tata Mc Graw Hill, New Delhi, PP 58,9,19 .

Leon G. Schiffman and Lesli Lazar kanauk 14, Consumer Behavior, Eight
Edition, Prentice Hall of India, New Delhi, PP 8,9,11,19,20.

Kardes, Frank R15., Consumer Behavior and Managerial decision making,

Second Edition, PP 23,47.

WEBSITEES

www.cnxz.cn16 , loan definition of Personal loan has been taken from here.

http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG098.htm17

www.icicibank.com/aboutus18 profile of ICICI bank is taken from here

www.hdfcbank.com/za/products19 profile of ICICI bank is taken from here

http://www.thehindubusinessline.com/iw/2004/11/28/stories/2004100421500.htm

www.apnaloan.com/aboutus 20, comparison of loan of both bank.

www.infomaworld.com/smpp21 chart of interest

www.compareindia.com22, procedure of personal loan

www.prospect-magazine.com 23features of personal loans

www.compareloan.com24 chart of loan of both bank

www.honeybeeindia.com25

www.loanbazaar.com26 pros and cons of both loan

www.loanmantri.com27 product range of both loans in India and its procedure

JOURNALS

Engel, James28; www.loanindia.com personal Blackwell, Roger(1982) ,

Consumer Behavior,(4/e),The Dryden Press, Chicago

Davis Harry29(1976),Decision making within the household, The Journal of

consumer research ,volume 2, No.4, pp 241-260

Olshavsky, Richard. And Granbois, Donald (1979)30,Consumer Decision

Making- Fact or Fiction? The joural of Consumer Research, Volume 6, No. 2,
pp 93-100

Kelly Robert(1962)31 ,The search component of the Cdp- A theoretic

Examination, in Robert L King , Marketing and the new Science of
Planning , American Marketing Association, Chicago p. 273

Kassarjian Harold(1978)32,Advance in consumer Research, Association for

Consumer Research, Volume 5,pp 12-14

Howard , john (1989)33, Consumer Behavior in marketing strategy,Prentice

Hall, pp 361-364

Engel, James; Blackwell, Roger. And Miniard, Paul(1990) 34 Consumer

Behavior,(6/e),The Dryden Press, Chicago

MAGZINES

Cover story, March 2006-35 vol xiv P no. 25

Business Today36 Trends, April 23, 2006 P no. 17
Business Research 37 June 2005, Page 31
Mind Branch, Global Industry Analysts38, July 2006, R263-2473, P no. 23
B to B, 3/13/2006, Vol. 91 Issue 3, p46-46
Banking &services Dec 2007 Vol. 15 No. 3 Pno.-10
Chandra Suresh Indian Journal Of Marketing39 xxxv edition January 2006, P no.

35
Banusmathy Dr. Indian Journal of Marketing 40 xxxv March 2006, Page 31

RESEARCH METHODOLOGY4
Research methodology has many dimensions, it includes not only the research
methods but also consists the logic behind the methods used in the context of the study
and explains why only a particular method of technique had been used so that search lend
themselves to proper evaluation. Thus in a way it is a written game plan for concluding
research. Research methodology has many dimensions. It includes not only the research
methods but also considers the logic behind the methods used in the context of the study
and complains why only a particular method of technique has been used. It also helps to
understand the assumption underlying various techniques and the criteria by which they
can decide that certain technique will be applicable to certain problems and other will
not. Therefore in order to solve a research problem, it is necessary to design a research
methodology for the problem as the some may differ from problem to problem.
This focuses on the various techniques, methods and assumptions used in this
study. It sheds light on the research problem, objectives of the study, and also its
limitations. The later part of this explains the manner, in which the data is collected,
classified, tabulated, analyzed and interrupted so as to each to conclusive results.

SAMPLING
It becomes impossible to contact each and every individual of the population due to
limitations of essential resources like time and money. Therefore, the study is preferably
allowed down to a representation sample to make the study more manageable.
Keeping in the view the objectives and resource limitation of the study, 100
respondents are considered.

SAMPLING PLAN:The following factors will be taken into consideration within the scope of sampling plan:

I Sampling Unit:
It defines the target population that will be sampled i.e. it answers who is to be surveyed.
In this study, the sampling unit is consumers who have availed the Personal Loans.

II Sampling Size:
It indicates the numbers of people to be surveyed. Though large samples give more
reliable results than small samples but due to constraints of time and money, the sample
size was restricted to 100 respondents.

III Sampling Techniques:

This refers to the procedure by which the respondents should be chosen. In my study I
used Probability sampling of the following types: Simple random sample
Stratified random sampling
Cluster (area) sample
In this case, Stratified random sampling was done since the respondents will classified
into well defined classes or strata that were distinct from each other.

RESEARCH DESIGN:To analysis the consumer behaviors of the residents of Yamuna Nagar City Sample
Survey Methods has been employed though other methods are also important. This
method is given prime significance in modern research because of its extensive use to
study the relationship of different factors, attitudes and practices of society and to explore
the problems that cannot be treated by experimental methods.
To collect data, a number of techniques are employed under the sample survey
method i.e. questionnaire. The increasing use of questionnaire is probably due to

increased emphasis by social scientists on quantitative measurement to uniformly

accumulated data.
i) Area of study:The area of the study is Yamuna Nagar City in order to collect the Primary data from
the respondents.
Study area

Yamuna Nagar City.

Target Segment

Personal Loan Customers

ii) Formation of Questionnaire

Quite often the questionnaire is considered as the heart of a survey operation.
Hence it should be carefully constructed. It is an investment that is widely used to collect
various types of data and consists of long lists of questions designed to collect any
information. It has personally been found that people are more frank in giving replies to a
questionnaire than to an interview schedule. Though being less expensive, it has certain
limitations like incomplete entries and erroneous responses. But the educational
qualification of the respondents is an additional factor which renders this technique the
most relied upon.
Formation of a good questionnaire involves intensive thinking and deliberation of
the problem with predetermined objective and aims properly placed in the questionnaires.
The

questionnaire framed for the purpose of the study consists of a limited

number of questions placed in logical order. So, that the objective of the question is clear
to the respondents. All the questions are centered on the problem keeping in the mind.
iii) Analysis of Data:
Data, after collection, has to be analyzed in accordance will the outline laid for the
time of developing the research plan. The term analysis refers to the computation of
certain measures along with searching for patterns of relationship that exist among data
groups. Data presented in raw state appear unrecognized and complex. Statistical
processors are used this complex data into some significant understandable form. Data
was analyzed with help of XLSTAT software. The tables from XLSTAT are attached as
annexure.

ANALYTICAL TOOLS
CORRELATION5
According to Croxton and Cowden, when the relationship is of a quantitative nature,
the appropriate statistical tool for discovering and measuring the relationship and
expressing it in a brief formula is known as correlation

TYPES OF CORRELATION6
Correlation is classified in several different ways. Three of the most important ways are: Positive and Negative Correlation: When two variable X and Y move in
same direction is Positive Correlation and when both variables move in
opposite direction that is Negative Correlation.
Simple, Partial and Multiple Correlations: When we study the relationship
between two variables only that is Simple Correlation. When three or more
variables are taken but relationship between any two of the variable is studied,
assuming other variables as constant that is Partial Correlation and when we
study the relationship among three or more variables that is Multiple
Correlation.
Linear and Curvi-Linear Correlation: when the ratio of change of two
variables X and Y remains constant throughout, then they are said to be Linear
Correlated and when the ratio of change between the two variables is not
constant but changing, then correlation is said to be Curvi-Linear.

DEGREE OF CORRELATION:Sr. No.

Degree

of Positive

Negative

1
2

correlation
Perfect correlation
+1
High Degree of Between

-1
+.75 Between -.75 to-1

correlation
to+1
Moderate Degree of Between

+.25 Between

Correlation
Low
Degree

to+.75
of Between 0 to+.25

to-.75
Between 0 to-.25

Correlation
Absence

of 0

Correlation

COEFFICIENTOF CORRELATION IS GIVEN BY:

x.y
R=
x 2.y 2

CORRELATION NO:-1
PRINCIPAL
1954.31

LOAN ENDING BALANCE

98045.69

-.25

1991.76
2029.94
2068.85
2108.5

96053.93
94023.99
91955.15
89846.65

Interpretation:- At the level of significance Alpha=0.050 the decision is to reject the

null hypothesis of absence of correlation.In other words, the correlation is significant.

CORRELATION NO:-2
PRINCIPAL
2182.37
2211.47
2240.15
2270.83
2301.11

LOAN ENDING BALANCE

97817.63
95606.16
93365.21
91094.37
88793.26

Interpretation:- At the level of significance Alpha=0.050 the decision is to reject the null
hypothesis of absence of correlation.In other words, the correlation is significant.

MULTI DIMENSIONAL SCALING:7

Multidimensional scaling (MDS) is a method for analyzing a (similarity or dissimilarity)
proximity matrix based on a set of observations. The purpose of MDS is to model the
proximity of observations in order to represent them as accurately as possible in a limited
number of dimensions (usually 2). There are different MDS algorithms: XLSTAT uses the
SMACOF (Scaling by MAjorizing a COnvex Function) algorithm that minimizes the
"normalized stress" function. Furthermore, there are several MDS models (or
representation functions), i.e. several ways to transform the dissimilarities into disparities.
The disparities are the distances that describe the optimal representation for the
observations. The difference between the disparities and the distances measured on the
representation resulting from the MDS is called the stress: the lower the stress, the better
the representation of the observations.
When the representation function simply respects the relative order of the observations,
one speaks about ordinal MDS or nonmetric MDS. When the dissimilarities are
transformed into disparities using a specific parametric function, one speaks about metric
MDS. The following models are available in the current version of XLSTAT.
Metric MDS

Absolute MDS: each dissimilarity dij must exactly match the distance between
points i and j in the representation space.

Ratio MDS: the ratio of all distance pairs in the representation space must
correspond to the ratio of the corresponding dissimilarities.

Interval MDS: the ratio of all differences between distances in the representation
space must correspond to the ratio of the differences of the corresponding
dissimilarities.

In the present study XLSTAT is used to calculate the results of the MDS The result shows
that in the case of absolute model, the disparities are equal than the dissimilarities.

MULTI DIMENSION TABLE NO:-1

RANKING OF VARIOUS LOANS ON THE BASIS OF REQUIREMENT
LOANS
F1
F2
F3
F4
F5
PERSONAL
13
17
12
19
39
LOAN
HOME LOAN 23
27
31
14
5
LAP
19
15
19
26
21
LAS
16
18
12
28
26
AUTO LOAN 29
23
26
13
9

Interpretation
The value of the kruskal stress is 0.003, which is very small as compared to 1. This
implies that the data collected very closely follows the normal distribution and the
skewness is very minute and that to, the data is minutely skewed in the positive direction.
Thus, the data is highly accurate.

MULTI DIMENSION TABLE NO:-2

RANKING OF VARIOUS LOANS ON THE BASIS OF INTEREST RATES
LOANS
F1
F2
F3
F4
F5
PERSONAL
11
15
16
21
37
LOANS
HOME LOANS
27
25
34
11
3
LAP
17
15
18
27
23
LAS
14
20
10
29
27
AUTO LOAN
31
25
22
12
10

Interpretation
The value of the kruskal stress is 0.014, which is very small as compared to 1. This
implies that the data collected very closely follows the normal distribution and the
skewness is very minute and that to, the data is minutely skewed in the positive direction.
Thus, the data is highly accurate.

MULTI DIMENSION TABLE NO:-3

HOW DID YOU COME TO KNOW ABOUT THE PERSONAL LOANS?
MEDIAS
TV ADS
MAGAZINES
HOARDINGS
INTERNET
REFERENCE
GROUP

F1
39
8
27
21
5

F2
27
6
14
12
41

F3
15
37
17
7
24

F4
21
29
10
33
16

F5
7
20
32
27
14

Interpretation
The value of the kruskal stress is 0.141, which is very small as compared to 1. This
implies that the data collected very closely follows the normal distribution and the
skewness is very minute and that to, the data is minutely skewed in the positive direction.
Thus, the data is highly accurate.

Data Collection9
The data can be collected from primary and secondary sources. The basic premises
of my study are primary data but at the same time it is supplemented with the secondary
data. Convenience sample that was representative of the target market was chosen, the
respondents were contacted personally and the research instrument use of collecting data
was the questionnaire.
I) Primary data collection:
Primary data is the data which is collected through observation or direct
communication with the respondent in one form or another. These are several methods
for primary data collection like Observation Method, Interview Method, through
schedules, through questionnaires and so on.
II) Secondary data collection methods:
Secondary data is collected through

Magazines

Journals

Newspapers

Websites

HYPOTHESIS TESTING8
Chi-square test is used when the set of observed frequencies obtained after
experimentation have to be supported by hypothesis or theory. The test is known as X 2test of goodness of fit and is used to test if the deviation between observation
(experiment) and theory may be attributed to chance (fluctuations of sampling). 2 also
enables us to explain whether or not two attributes are associated or related to each other.

Chi-Square Test
year
1
2
3
4
5

Observed(O)
1
2.5
3.4
6.14
8.5

Expected(E)
2
3
5
6
9

(O-E)
-1
-0.5
-1.6
0.14
-0.5

(O-E)*(OE)
1
0.25
2.56
0.0196
0.25
Sum

(O-E)*(O-E)/E
0.5
0.083333333
0.512
0.003266667
0.027777778
1.126377778

tabulated value is=9.45

Observed value is1.126

INTERPRETATION:
Chi-Square Test shows that tabulated value is more than the observed value so the null
hypothesis is accepted that is the sale of the company is not much fluctuating from the
expected sales of Personal loans.

o
o
o
o
o
o

In this test we have formulated null hypothesis that the company has even
trend in its sale during last few years .
And alternate hypothesis is that the sales of the company are very odd in
nature.
That means in some years the targets are achieved but for some its not.
The calculated value is less than the tabulated value.
That is 1.125 < 9.485. so we accept the null hypothesis and reject the
alternate hypothesis.
It shows that the companys sale is not even...

Limitations
TIME AND MONEY CONSTRAINTS: - As due to universe is very large and the time
and money is very limited, it is very difficult to cover all the respondents.
DIFFICULTY IN GETTING INFORMATION:- Some of the respondents are not
candid enough to reveal all the required information. They might give inflated or wrong
information.
DIVERSITY IN NATURE:- Because of the diversity in the nature of the various
respondents, the findings of the survey can not be generalized.
PERSONAL BIASNESS :- Also some personal biasness might have crept in to the
information provided by respondents.
SECONDARY DATA :- In this study the snag of finding the secondary data is also a
challenge because there is lack of Magazines, Journals & Internet Information on
Personal Loans. The collection of getting secondary data from Banks was also a
challenging task.
PRIMARY DATA:-The collection of primary data is also very tedious task to perform
because Respondents are not ready to give their response through Questionnaire & Bank
Employees are also not interested to provide required Information.

RESULTS AND DISCUSSIONS

1Q:- What is your occupation?

Interpretation:The above diagram shows that in the sample of 100 people there are 29% Salaried
Individual, 21% Self Employed Professional, 31% Self Employed Individual & 19% are
Self Employed Pvt. Company.

2Q:-

Do you have any Account in the following Bank?

Interpretation:The above diagram shows that 36% Respondents are having Account in ICICI Bank, 20%
having Account in HDFC Bank, 7% are having Account in both & 37% are having no
one Account in these Bank.

3Q:-

What is your Annual Income?

Interpretation: The above diagram shows that 13% Respondents are having annual Income between
100000-150000, 33% are having between 150000-200000, 17% are having between
200000-300000, 28% are having between 300000-500000 & 9% are having above from
500000 Rs.

4Q:-

Which loan do you prefer to avail?

Interpretation:Above diagram shows that 61% Respondents have availed Unsecured Loans & 39%
have availed Secured loans.

5Q:-

Rate the following on the basis of Brand name in the Banking

Services?

Interpretation:The above diagram shows that 57% Respondents are in Favor of ICICI Bank &
43% are in the Favor of HDFC Bank in case of Banking Services.

6Q:-

Have you ever availed facilities of Personal Loans?

Interpretation:The above Diagram shows that 27% Respondents have availed the facilities of Personal
Loan from ICICI Bank, 21% have availed from HDFC Bank, 6% have taken from Both
& 45% have not availed the facilities of Personal Loans.

7Q:-

Why do you take Personal Loans?

Interpretation:The above diagram shows that 51% Respondents take Personal Loans for Personal
Affairs, 12% take it for Education, 7% for Travel, 26% for Business & 4% for Other
purposes.

8Q:-

Why do you Prefer Personal Loans over other Loans?

Interpretation:The above diagram shows 32% Respondent prefer Personal Loans over other because of
Flexibility, 39% because of Unsecured Nature, 16% because of High Tenure, 4% because
of Interest Rates & 9% because of Other Reasons.

9Q:-

Who Influenced you the most while going for Personal Loans?

Interpretation:Above diagram shows that 37% Respondents are Influenced by Self while going for
Personal Loans, 9% from Family Members, 27% from Friends, 6% from Relatives and
21% are Influenced from Banks Executives.

10Q:-Do

you Agree with the late payment charges for Personal

Loans?

Interpretation:The above diagram shows that 3% Respondents are Highly Agree with the Late Payment
Charges for Personal Loans, 7% are Agree, 20% are Neutral, 39% are Dis-Agree & 31%
are Highly Dis-Agree.

11Q:-

Are you Satisfied with the NOC procedure in Personal

Loans?

Interpretation:The above diagram shows that 23% Respondents are Highly Satisfied with the NOC
Procedure in Personal Loans, 39% are Dis-Satisfied, 10% are Neutral, 17% are DisSatisfied & 11% are highly Dis-Satisfied.

12Q:-

If other Banks offer Attractive schemes for Personal Loans

will you go for that Bank?

Interpretation:The above diagram shows that 33% Respondents are Sure to go for Other Banks in case
if they offer Attractive Schemes for Personal Loans, 15% respond as Often, 14% are
Neutral, 17% are Not Sure & 21% respond as Never.

13Q:-

If anybody asks you about which Banks Personal Loans

should She/He go for then what will be your Behavior towards your
availed Brand?

Interpretation:The above diagram shows that 39% Respondent respond that they will Highly
Recommend their availed Brand name, 22% respond as Recommend 3% are Neutral, 7%
respond as Not Recommend & 29% respond as Never Recommend.

FINDINGS
PREFER TO AVAIL PERSONAL LOANS:- It is found during the study

that preference of the people are increasing towards the Unsecured loans as
compare to the Secured loans.
LOAN AMOUNT AVAILABILITY:- it is find during the study that

Customers are not very Satisfied with the Loan Amount availability from
Personal Loans because they require more amount for Personal use.
STRINGENT DOCUMENTATION:- it is find during the study that the

Documentation procedure of Personal Loan is too much stringent as compare

to the other Secured loans.
LOAN PROCESSING PROCEDURE:- it is find that Loa processing

procedure in case Personal Loan is just like a Snail pace as compare to the
other Loans available.
HIGH ELIGIBILITY CRITERIA:- in case of Personal Loan the criteria for

availing the Personal Loan is very high so many of the Customers who want
to avail the Personal Loan have to go for other alternatives.
LESS TENURE:- the Payback period or can say that the duration for which

the Loan is provided by the Bank in case of Personal Loan is very much Low.
HIGH ADDITIONAL CHARGES:- it is find during the study that the
customers are very much Dis-Satisfied with the Additional Charges charged
by Banks for Personal Loan.
HUGE PREPAYMENT CHARGES:- it is come in to view that in case of
Prepayment in Personal Loans a high amount is charged from customer which
is not justified.

BIBLIOGRAPHY

Baack Clow, Integrated advertising, promotion & Marketing communication,

Third Edition, Prentice hall, New Delhi P p:85

Czinkota kotabe, Marketing management, Second Edition, Thomson- south

Western, Pp-156

Kotler Philip & Keller Kevin lane, Marketing management, 12th Edition
PEARSON(Prentice Hall) Pp-297

Loudon ,David L, and Bitta, Abert J. Della , Consumer Behavior and concepts
and applications, Fourth Edition, Tata Mc Graw Hill, New Delhi, PP 5-8,9,19 .

Leon G. Schiffman and Lesli Lazar kanauk, Consumer Behavior, Eight Edition,
Prentice Hall of India, New Delhi, PP 8,9,11,19,20.

Kardes, Frank R., Consumer Behavior and Managerial decision making, Second
Edition, PP 23,47.

Bennett Peter.D. And Kassarjian Haroldh 5 - A great deal of research activity in

marketing is design to shed light on the customer decision process.

Kothari C.R.6 For data analysis different statistical techniques are being used such
as scaling techniques, correlation, hypothesis testing.

Belch George E and Belch Michael A ,Advertising & promotion, Sxth

Edition ,Tata McGraw Hill ,New Delhi Pp-166-169

Batra Rajeev, Myen John G , Aaker David A Advertising management, Fifth

Edition, Prentice-Hall India ,New Delhi. Pp-174-179

Mishra M N ,Sales promotion and Advertising management, Second Edition ,

Himalya Publishing House , New Delhi pp:1-2

WEBSITEES

www.cnxz.cn
http://www.thehindubusinessline.com/iw/2004/11/28/stories/2004112800421500.
htm

http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG098.htm

www.icicibank.com/aboutus

www.hdfcbank.com/za/products

www.apnaloan.com/aboutus

www.infomaworld.com/smpp

www.compareindia.com

www.prospect-magazine.com

www.compareloan.com

www.honeybeeindia.com

www.loanbazaar.com

www.loanmantri.com

ANNEXURES
ANNEXURE

1: PRINCIPAL COMPONENT ANALYSIS

XLSTAT 7.1 - Principal Component Analysis (PCA) - 4/2/2008 at 3:27:13 PM

Table: workbook = Book3.xls / sheet = Sheet1 / range = $G$10:$K$13 / 4 rows and 5 columns
Uniform weighting (default)
No missing values
Pearson correlation coefficient (normed PCA, variances with 1/n)
Without axes rotation
Number of factors associated with non trivial eigenvalues: 3

Bartlett's sphericity test:

Note: The sphericity test could not be computed for this dataset (the determinant of the correlation matrix is null)

Mean and standard deviation of the columns:

13
17
12
19
39

Mean
21.750
20.750
22.000
20.250
15.250

Standard deviation
4.867
4.603
7.176
6.796
8.555

13

17

12

F1
4.449
88.971

F2
0.397
7.939

F3
0.155
3.090

Correlation matrix:
19
39
13
1
0.622
0.759
0.913
0.815
17
0.622
1
0.833
0.877
0.894
12
0.759
0.833
1
0.923
0.985
19
-0.913 -0.877
-0.923
1
0.971
39
-0.815 -0.894
-0.985
0.971
1
In bold, significant values (except diagonal) at the level of significance alpha=0.050 (two-tailed test)

Eigenvalues:

Eigenvalue
% variance

Cumulative %
88.971
Number of removed trivial eigenvalues: 2

96.910

100.000

0.768
-0.593
-0.157
-0.136
0.122

F3
-0.242
-0.595
0.692
0.187
-0.271

0.484
-0.374
-0.099
-0.086
0.077

F3
-0.095
-0.234
0.272
0.073
-0.106

Eigenvectors:

13
17
12
19
39

F1
-0.412
-0.426
-0.454
0.471
0.470

F2

F1
-0.870
-0.898
-0.957
0.994
0.991

F2

Factor loadings:

13
17
12
19
39

Squared cosines of the variables:

13
17
12
19
39

F1
0.757
0.806
0.916
0.987
0.983

F2
0.234
0.140
0.010
0.007
0.006

F3
0.009
0.055
0.074
0.005
0.011

59.049
35.157
2.472
1.843
1.479

F3
5.862
35.459
47.876
3.483
7.320

-0.826
0.339
-0.337
0.823

F3
0.150
0.567
-0.450
-0.267

Contributions of the variables (%):

13
17
12
19
39
Factor scores:

Obs1
Obs2
Obs3
Obs4

F1
17.007
18.111
20.596
22.194
22.093

F2

F1
-2.249
1.669
2.502
-1.921

F2

Squared cosines of the observations:

Obs1
Obs2
Obs3
Obs4

F1
0.878
0.864
0.952
0.831

F2
0.118
0.036
0.017
0.153

F3
0.004
0.100
0.031
0.016

42.948
7.242
7.132
42.678

F3
3.619
52.106
32.697
11.578

Contributions of the observations (%):

Obs1
Obs2
Obs3
Obs4

F1
28.433
15.651
35.172
20.744

F2

Annexure2: Multi-Dimensional Scaling1

XLSTAT 7.1 - Multidimensional Scaling (MDS) - 4/2/2008 at 3:01:19 PM
Dissimilarity matrix: workbook = Book3 / sheet = Sheet1 / range = $G$11:$J$14 / 4 rows and 4 columns
Uniform weighting (default)
Within the symmetric matrix, 0 cells out of 6 were ignored during the calculations because of missing values
or null weights
Metric Multidimensional Scaling
Multidimensional Scaling model: absolute
Stress used for the results: Kruskal's stress-1
Dimension of the representation space: 5
Repetitions: 10
Seed of the pseudo-random numbers generator: 4137873680
Iterations: 50
Convergence: 0.0001

Space with 5 Dimensions:

Model: Dij= Pij

Observation coordinates:
Observation
23
27
31
14

Dim1
3.018
-2.404
-1.418
0.804

Dim2
-3.766
6.071
2.777
-5.082

Dim3
5.824
-3.687
-5.686
3.549

Dim4
12.428
7.205
-10.616
-9.017

Dim5
5.303
8.983
-5.150
-9.136

Distances measured in the representation space:

23
23
27
31
14

0
16.045
28.901
26.081

27
16.045
0
23.090
27.902

31
28.901
23.090
0
13.055

14
26.081
27.902
13.055
0

Ideal distances calculated using the model (disparities):

23

27
31
14
23
0
16.000
29.000
26.000
27
16.000
0
23.000
28.000
31
29.000
23.000
0
13.000
14
26.000
28.000
13.000
0
In the case of the absolute model, the disparities are equal than the dissimilarities

Residual distances:
23
23
27
31
14

0
0.045
-0.099
0.081

27
0.045
0
0.090
-0.098

31
-0.099
0.090
0
0.055

14
0.081
-0.098
0.055
0

Comparative table:
Dissimilarit
Dissimilarity
Disparity
Pair
y
Disparity Distance
rank
rank
31 - 14
13.000
13.000
13.055
1
1
23 - 27
16.000
16.000
16.045
2
2
27 - 31
23.000
23.000
23.090
3
3
23 - 14
26.000
26.000
26.081
4
4
27 - 14
28.000
28.000
27.902
5
5
23 - 31
29.000
29.000
28.901
6
6
In the case of the absolute model, the disparities are equal than the dissimilarities

Summary of repetitions:

Distance
rank
1
2
3
4
5
6

Initial
Fin.
Repetition
Iterations
stress
stress
1
50
0.196
0.009
2
50
0.480
0.011
3
50
0.455
0.011
4
50
0.368
0.010
5
50
0.395
0.009
6
50
0.429
0.003
7
50
0.368
0.012
8
50
0.233
0.011
9
50
0.256
0.011
10
50
0.414
0.010
In bold, repetition corresponding to the best solution that XLSTAT found

Annexure 3-Multidimensional Scaling2

XLSTAT 7.1 - Multidimensional Scaling (MDS) - 4/2/2008 at 3:09:11 PM
Dissimilarity matrix: workbook = Book4 / sheet = Sheet1 / range = $I$11:$L$14 / 4 rows and 4 columns
Uniform weighting (default)
No missing values
Metric Multidimensional Scaling
Multidimensional Scaling model: absolute
Stress used for the results: Kruskal's stress-1
Dimension of the representation space: 5
Repetitions: 10
Seed of the pseudo-random numbers generator: 3512574336
Iterations: 50
Convergence: 0.0001

Space with 5 Dimensions:

Model: Dij= Pij

Observation coordinates:
Observation
15
16
21
37

Dim1
4.246
2.874
-1.169
-5.951

Dim2
8.079
3.425
-2.988
-8.516

Dim3
6.274
0.603
-3.597
-3.280

Dim4
-2.659
7.531
2.464
-7.335

Dim5
7.713
-0.567
-3.100
-4.046

Distances measured in the representation space:

15
15
16
21
37

0
15.103
19.809
25.116

16
15.103
0
10.354
21.648

21
19.809
10.354
0
12.266

37
25.116
21.648
12.266
0

Ideal distances calculated using the model (disparities):

15
16
21
37
15
0
15.000
20.000
25.000
16
15.000
0
10.000
22.000
21
20.000
10.000
0
12.000
37
25.000
22.000
12.000
0
In the case of the absolute model, the disparities are equal than the dissimilarities

Residual distances:

15
15
16
21
37

0
0.103
-0.191
0.116

16
0.103
0
0.354
-0.352

21
-0.191
0.354
0
0.266

37
0.116
-0.352
0.266
0

Comparative table:
Dissimilarit
Dissimilarity
Disparity
Pair
y
Disparity Distance
rank
rank
16 - 21
10.000
10.000
10.354
1
1
21 - 37
12.000
12.000
12.266
2
2
15 - 16
15.000
15.000
15.103
3
3
15 - 21
20.000
20.000
19.809
4
4
16 - 37
22.000
22.000
21.648
5
5
15 - 37
25.000
25.000
25.116
6
6
In the case of the absolute model, the disparities are equal than the dissimilarities

Summary of repetitions:

Distance
rank
1
2
3
4
5
6

Initial
Fin.
Repetition
Iterations
stress
stress
1
50
0.466
0.014
2
50
0.326
0.014
3
50
0.324
0.014
4
50
0.452
0.014
5
50
0.423
0.014
6
50
0.421
0.014
7
50
0.322
0.014
8
50
0.412
0.014
9
50
0.353
0.014
10
50
0.417
0.014
In bold, repetition corresponding to the best solution that XLSTAT found

Annexure 4-Multidimensional Scaling3

XLSTAT 7.1 - Multidimensional Scaling (MDS) - 4/2/2008 at 3:12:55 PM
Dissimilarity matrix: workbook = Book5 / sheet = Sheet1 / range = $I$11:$L$14 / 4 rows and 4 columns
Uniform weighting (default)
No missing values
Metric Multidimensional Scaling
Multidimensional Scaling model: absolute
Stress used for the results: Kruskal's stress-1
Dimension of the representation space: 5
Repetitions: 10
Seed of the pseudo-random numbers generator: 309459768
Iterations: 50
Convergence: 0.0001

Space with 5 Dimensions:

Model: Dij= Pij

Observation coordinates:
Observation
27
15
12
7

Dim1
-2.990
-0.446
-0.091
3.527

Dim2
-11.860
-4.969
0.728
16.101

Dim3
-8.568
0.678
-0.893
8.783

Dim4
-6.720
1.175
-0.976
6.521

Dim5
2.026
2.202
-0.540
-3.687

Distances measured in the representation space:

27
27
15
12
7

0
14.206
16.290
36.515

15
14.206
0
6.870
24.262

12
16.290
6.870
0
20.227

7
36.515
24.262
20.227
0

Ideal distances calculated using the model (disparities):

27
15
12
7
27
0
14.000
12.000
41.000
15
14.000
0
7.000
24.000
12
12.000
7.000
0
16.000
7
41.000
24.000
16.000
0
In the case of the absolute model, the disparities are equal than the dissimilarities

Residual distances:
27
27
15
12
7

0
0.206
4.290
-4.485

15
0.206
0
-0.130
0.262

12
4.290
-0.130
0
4.227

7
-4.485
0.262
4.227
0

Comparative table:
Dissimilarit
Dissimilarity
Disparity
Pair
y
Disparity Distance
rank
rank
15 - 12
7.000
7.000
6.870
1
1
27 - 12
12.000
12.000
16.290
2
2
27 - 15
14.000
14.000
14.206
3
3
39789
16.000
16.000
20.227
4
4
15 - 7
24.000
24.000
24.262
5
5
27 - 7
41.000
41.000
36.515
6
6
In the case of the absolute model, the disparities are equal than the dissimilarities

Summary of repetitions:

Distance
rank
1
3
2
4
5
6

Initial
Fin.
Repetition
Iterations
stress
stress
1
22
0.513
0.141
2
23
0.611
0.141
3
24
0.658
0.141
4
23
0.710
0.141
5
24
0.632
0.141
6
22
0.529
0.141
7
22
0.552
0.141
8
23
0.368
0.141
9
23
0.498
0.141
10
24
0.668
0.141
In bold, repetition corresponding to the best solution that XLSTAT found

Annexure 4-Correlation 1
XLSTAT 7.1 - Correlation Tests - 4/2/2008 at 3:22:57 PM
Variable 1: workbook = Book6 / sheet = Sheet1 / range = $G$11:$G$14 / 4 rows and 1 column
Variable 2: workbook = Book6 / sheet = Sheet1 / range = $H$11:$H$14 / 4 rows and 1 column
Significance level: 0.05

Pearson's correlation coefficient test (parametric test):

Observed value
Two-tailed p-value
Alpha

-1.000
< 0.0001
0.05

Decision:
At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of absence of correlation.
In other words, the correlation is significant.

Annexure 5-Correlation 2
XLSTAT 7.1 - Correlation Tests - 4/2/2008 at 3:50:18 PM
Variable 1: workbook = Book1 / sheet = Sheet1 / range = $G$26:$G$30 / 5 rows and 1 column
Variable 2: workbook = Book1 / sheet = Sheet1 / range = $H$26:$H$30 / 5 rows and 1 column
Significance level: 0.05

Pearson's correlation coefficient test (parametric test):

Observed value
Two-tailed p-value
Alpha

-1.000
< 0.0001
0.05

Decision:
At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of absence of correlation.
In other words, the correlation is significant.

SAMPLING AND SAMPLE DESIGN

Sampling involves any procedure using a small number of items or part of the whole
population to make conclusion regarding the whole population. A sample, is a subset or
some part of a larger population.

Sample Design:
The sample of my interest includes the customers of Personal Loans & the Banks
providing the Personal Loan, Yamunanagar
I have taken 100 as the sample size my study.

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure.
The research design with help to answer the following questions:
Why the study is being made?
From where the data needed can be collected?
What time is required for the study to be competed & how much material is
needed.
What will be the technique for data collections?
How the data can be analyzed?

 Exploratory Research Design: The main purpose of such studies is that of

formulating a problem for more precise investigation. The major emphasis in such
studies is on the discovery of ideas and insights. As such the research design
appropriate for such studies must be flexible enough to provide opportunity for
considering different aspects of a problem under study.
Descriptive Research Design: Descriptive Research studies are those which are
concerned with describing the characteristics of a particular individual, or of a
group. In descriptive studies the researcher must be able to define clearly, what he
wants to measure and must find adequate methods for measuring it along with a
clear cut definition of population he wants to study.
Research design in this case is Descriptive Research