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Process management of Mortgages and Analysis of customer who
have taken loan against Gold from the Bank..
At
Housing development finance corporation bank (HDFC) ,Jaipur.
Mr.
Vinod Vijay
Faculty, FMS-IRM
(LAP)
JAIPUR
Mr.
Gaurav Gattiwal
Asst.Credit Manager (Tw/Gl)
HDFC
BANK JAIPUR
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CERTIFICATE
This is to certify that the summer training report titled Process
management of mortgages and analysis of customer who have
taken gold loan from bank is a record of project work done by Ms Sapna
Sharma under my guidance and supervision and that it has not previously
formed the basis for the award of any degree, fellowship or associate ship to
her.
Date:
Prof.Terjani goyal
Place:
(Faculty Guide)
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DECLARATION
I, do hereby declare that the report entitled Process Management of
Mortgages and Analysis of customer who have taken Gold loan from
the bank is an original piece of work carried out by me at HDFC Bank
Jaipur.
The abstract or any form of report has not been published earlier and it
presents the original work done by me during the Summer Internship
Programme under Post Graduate Diploma in Business Management, Faculty
of Management Studies - Institute of Rural Management (FMS-IRM), Jaipur
from 16th May, 2010 to 30th June 2010, from Housing development finance
corporation Jaipur.
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Place: Jaipur
Date:
Sapna
sharma
ACKNOWLEDGEMENT
The completion of any project depends upon the co-operation, coordination and combined
efforts of several resources of knowledge, inspiration & energy. I always knew that in an
organization, the work atmosphere yields enormously on an individuals productivity and quality
of work.the competence and expertise of people around me at HDFC bank Jaipur. Was a factor
that motivated me to strive and achieve nothing short of perfection.
I owe a great many thanks to all those, without whom this project wouldnt have been as much a
learning experience and as successful. To those, who helped and supported me during the course
of this project.
My deepest sense of gratitude for the Faculty-in-Charge, Prof. Terjani Goyal,FMS-IRM,Jaipur,
for constant guidance, professional help and support during the course of the project, for .guiding
me and helping me at all times during the project. She was the key inspirer for me and without
his guidance this project would have been a distant reality.
I express my thanks to the Company Guide, Mr.Vinod Vijay (Regional credit Manager) & Mr
Gaurav Gattiwal ( Asst.credit manager) HDFC bank for extending his support and guidance for
this project. Thanks and appreciation to the helpful people at bank Branch, for their support.
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Iam hereby thankful to; Ms yashasvi jain , Mr vipul sogani Mr deepesh mishra, Mr sharad
Ahuja, (credit managers mortgages).Mr Ashish sharma Ms deepshika saraswat (credit
managers gold loan) .
I thank my colleagues and friends for providing constant encouragement and help. I am indebted
to them for their timely help & the enthusiasm they expressed in helping me bring this project to
the fruitful end.
Henceforth I would also like to extend my sincere token to our Director, Brig, S.K. Gaur for
his relentless spirit to lend a helping hand to the students. I am highly grateful to FMS-IRM,
Jaipur for their benevolent assistance.
(Sapna sharma)
Table Of Contents
Sr. No.
Chapter 1
Chapter 2
Particulars
Executive summary
1.1 Statement of problem
1.2 objective of study
1.2.1 primary objective
1.2.2 secondary objective
1.3 practical utility of the study
1.4 limitations of the study
1.5 Research methodology
1.5.1 Research design
1.5.2 Area of sampling
1.5.3 Sampling technique
1.5.4 Sample size
1.5.5 Data collection method
1.5.6 Tools of data collection method
1.5.7 Tools of analysis
HDFC Company profile
2.1 Introduction to banking sector
2.2 Introduction of company
2.3 Company history
2.4 Services offered by the company
Page No.
7
8
9
9
9
10
10
10
10
10
10
11
11
11
11
12-19
12-13
14-18
18-19
19
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Chapter 3
Chapter 4
Chapter 5
Chapter 6
20-21
20
20
21
21
22-39
22-23
23-25
25-27
28
29-32
32-33
33-35
36
36-37
37
37
37-38
38
38
38
39
40-44
40
40
41-45
SWOT ANALYSIS
46-47
46
47
Chapter 7
FINDINGS
48
Chapter 8
SUGGESTIONS
48
Chapter 9
CONCLUSION
49
Chapter 10
BIBLIOGRAPHY
50
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Chapter 11
ABBREVATIONS
Chapter 12
ANNEXURE
51
52-53
EXECUTIVE SUMMARYThe summer training of a management student plays an important role to develop him into a well
groomed professional. It gives theoretical concepts a practical shape in the field of applications.
The project at HDFC bank dealt with Process Management of Mortgages and Analysis of
customer who have taken gold loan from the Bank.
The forthcoming project report is divided in phases:
Phase 1: 1. To study about the process of loan against property
2. To study about gold loan provided by the HDFC bank
Phase 2: 1. Comparison of HDFC Lap & Gold loan with other banks.
2. Analysis of customer who have taken loan against gold from Bank.
The research methodology was conclusive, tentative and descriptive in nature. Both the
secondary and the primary data collection methods were taken into consideration and the
conclusions of the report were derived fundamentally on the basis of the primary data collected
and thus analyzed accordingly.
Questionnaires were circulated and mailed randomly. A few Statistical Analysis Tools like, mean,
pie charts, were used to draw inferences based on the survey .
After doing the thorough analysis it can be concluded that a vibrant and a well-developed market
which has been shown to facilitate consumption & investment, by providing loans to different
segments has a lot of potential in the coming years. The lenders as well as borrowers in the
country are growing at a very fast pace and so is their knowledge about the different products,
e.g. loan against property & loan against gold. The awareness among the Indian demographic
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regarding risk and return of their repaying capacity is increasing. This ensures the long life of the
industry and banks retail asset centers.
Thus, it was a great experience to work with a company of such a high reputation.
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1
2
.
1.3 Practical utility of study:
This study gives an insight that at what level HDFC bank has its reach to the general
mass. This study will help to know the current business potential for the bank. Interaction
with public helped me to know the products and services they want. Also the analysis
made by me will help HDFC to customize the product to cater their need.
Primary data
Secondary data
Primary Data: Collected through the questionnaires filled from telephonic interview by
Customer.
Secondary data: Through annual report, internet, magazines, journal and websites.
1.5.7 Tools of analysis:
Presentation tools:
Pie charts
Bar graphs
Flow charts
Statistical tools:
Percentages
2. COMPANY PROFILE
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Engaging in the business of keeping money for savings and checking accounts or for
exchange or for issuing loans and credit etc.
Transacting business with a bank; depositing or withdrawing funds or requesting a loan
etc.
A banker or bank is a financial institution that acts as a payment agent for customers, and
borrows and lends money.
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Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.
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Global Depository Receipts (GDR) Issues). 28.53% of the equity is held by Foreign Institutional
Investors (FIIs) and the Bank has 4,11,464 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange
of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts
(GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.
Distribution Network
HDFC Bank is headquartered in Mumbai. As on March 31, 2011, the Bank has a network of
1986 branches in 996 cities across India. All branches are linked on an online real-time basis.
Customers in over 800 locations are also serviced through Telephone Banking. The Banks
expansion plans take into account the need to have a presence in all major industrial and
commercial centres, where its corporate customers are located, as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing / settlement
bank to various leading stock exchanges, the Bank has branches in centres where the NSE / BSE
have a strong and active member base.
The Bank also has a network of 5471 ATMs across India. HDFC Banks ATM network can be
accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus /
Cirrus and American Express Credit / Charge cardholders.
Financials
The Banks total income for the quarter ended March 31, 2011, was Rs. 6,724.3 crores. Net
revenues (net interest income plus other income) at Rs. 4,095.2 crores for the quarter ended
March 31, 2011 increased by 24.0% over Rs. 3,302.1 crores for the corresponding quarter ended
March 31, 2010. Net interest income (interest earned less interest expended) for the quarter
ended March 31, 2011 was Rs. 2,839.5 crores as against Rs. 2,351.4 crores for the quarter ended
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March 31, 2010. This was driven by loan growth of 27.1% and a core net interest margin for the
quarter of 4.2%
Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research
Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme
has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered
to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's
Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for
repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary
of Fitch Inc.) has assigned the "AAA ( ind )" rating to the Bank's deposit programme, with the
outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection
factors are very high"
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and
Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated
by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated
Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the
outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the
Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA /
Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating agency for
those instruments.
Business Profile
Wholesale Banking
The Banks target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and agri-based businesses.
For these customers, the Bank provides a wide range of commercial and transactional banking
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services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which combine
cash management services with vendor and distributor finance for facilitating superior supply
chain management for its corporate customers. Based on its superior product delivery / service
levels and strong customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporates including multinationals, companies from the
domestic business houses and prime public sector companies. It is recognised as a leading
provider of cash management and transactional banking solutions to corporate customers, mutual
funds, stock exchange members and banks.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the
financial markets in India, corporates need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury products are provided
through the banks Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.
Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to customers
through the growing branch network, as well as through alternative delivery channels like ATMs,
Phone Banking, NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the
Investment Advisory Services programs have been designed keeping in mind needs of customers
who seek distinct financial solutions, information and advice on various investment avenues. The
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Bank also has a wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider
of Depository Participant (DP) services for retail customers, providing customers the facility to
hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched
its credit card business in late 2001. By March 2010, the bank had a total card base (debit and
credit cards) of over 14 million. The Bank is also one of the leading players in the merchant
acquiring business with over 90,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned as a leader in various net
based B2C opportunities including a wide range of internet banking services for Fixed Deposits,
Loans, Bill Payments, etc.
2.3 HDFC Bank history:
The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net
advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be
over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of
increased branch network, geographic reach, and customer base, and a bigger pool of skilled
manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in
the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the
shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received
1 share of HDFC Bank for every 5.75 shares of Times Bank.
HDFC Bank offers a wide range of commercial and transactional banking services and treasury
products to wholesale and retail customers. The bank has three key business segments:
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Wholesale Banking Services - The Bank's target market ranges from large, blue-chip
manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based
businesses.
Retail Banking Services - The objective of the Retail Bank is to provide its target market
customers a full range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements.
Treasury - Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. The Treasury
business is responsible for managing the returns and market risk on this investment portfolio.
HDFC Securities (HSL) and HDB Financial Services (HDBFSL) are its subsidiaries.
2.4 Services offered by the company:
Personal Banking
Loans
Cards
Forex
NRI Banking
Remittances
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Wholesale Banking
Corporate
Government Sector
To put emphasize on the quality of the credit and advance in form of mortgage loan
The mortgage based loans provided in order to acquire real estate for commercial
purposes, and as working capital
The funding is done upto 3/4 of the cost of the project and the balance is the
customers contribution
The main purpose of HDFC Bank Mortgage service is to provide easy access to refinancing,
renovating or owning commercial real estate through the disbursement of loans against
mortgages. The HDFC Bank Mortgage service also provide mortgage based loans as working
capital. The HDFC Bank Mortgage service is provided against presentable security such as
residential house or apartment, industrial property, urban commercial complex, possessed in the
name of the receiver of the loan. The security such as rented house can be accepted if the same
property is on a lease and the person should also have the authority to collect the rent under the
power of attorney.
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Mortgage refinancing
LAP
GOLD
LOAN
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A loan against property (LAP) is a loan against your house or even a plot. If all the land titles
are in place and you have an income, this is a cheaper loan option if you want some liquidity
in double quick time. Though the interest rates on this loan are higher than that of a home
loan, it is cheaper than that a personal loan or a loan against security. Loan against Property
refers to the secured loan category where the borrower gives a guarantee by using his
property as a security. The right of ownership of the property is still with the borrower, and if
he/she is unable to repay the loan amount, he/she can sell the property to pay off the debts.
In other words it actually means - a loan given or disbursed against the mortgage of property.
One can now take a loan against one's self occupied residential or commercial property, to
expand his business, plan a dream wedding, or fund one's child's education and much more.
However, one needs to give a declaration stating that these funds will not be used to carry out
any illegal activities or for any speculative purpose. The loan is given as a certain percentage
of the property's market value (usually around 40 per cent- 65 per cent). But the threshold
amount is generally defined by most lending institutions. Usually, banks and other lenders
extend a loan against property as a security, for up to 50 per cent of the market-value of the
property. However, the extent of the loan is also subject to your eligibility as per income
norms which also are stricter than home loan norms.
A loan against property gets you capital based on the value of your property. It is available
for both salaried and self-employed persons and against commercial as well as residential
property. All this and, you don't have to sell your property to raise the capital. It's all yours to
keep if you repay the loan taken.
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3. Documentation
Documentation includes the following;
Proof of income: Copies of last three years income tax returns (along with copies of
Computation of Income/Annual accounts, if any), Form 16/Form 16A, last three months
salary slips, copies of the last 6 months statements of all the active bank accounts that reflect
your salary/business income details etc.
Age proof: Copy of the school leaving certificate/driver's licence/passport/ration card/PAN
card/voter identity card etc.
Address proof: Utilities bills, such as phone and electricity bills, need to be provided to
prove that you are actually staying at your current address.
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Passport
Driving licence
Financial documents (all of the following)
Salaried individuals
Latest salary slip showing statutory deductions AND Form 16 (Declaration from the
employer giving the details of income and deductions, duly signed by an authorized
signatory of the Company) OR
P&L and balance sheet for the last 2 years certified by a C.A. AND
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Partnerships
P&L and balance sheet for the last 2 years certified by a C.A. AND
Partnership Deed, Letter of Authority, Bank statements for the last 6 months,
CPA TO BANK
Application form
Valuation Report (if loan amt is more than 50 lacs then 2 valuations required)
Kyc Documents
Dedupe Report
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If the Case is greater than 1 Crore then Profile Check is also required.
Valuation Report (If loan amount is more than 50 lacs then 2 valuations required)
Legal Report with a Search Reciept (check legal entry in the system)
RBI
FI report
The responsibility of the credit manager is to the decisioning of the file within the
defined TAT as per the policy.
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FTNR
Returned back to
Sales
PSDR
DPE
COMPLETION OF
PENDENCY IN
STIPULATED TIME
IF NOT DO ABLE
REJECT
If complete approve/forward
Post approval sent to operations for
disbursal
If not completed in
time move to CPA
Move to C.P.A
File disbursed
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1. objective
To ensure the following
Credit process modelIn our model cpa is an outsourced agency who manage loan processing while Adfc are resources
from Adfc ltd. And credit managers are bank officers managing the cpa& Adfc staff wherein the
final responsibility of credit process at the location lies with them.
For processing the loan applications, HDFC bank use lasersoft system(LS) which is a web based
front end system with limited access to the system depending on functional role.
The process model briefly described below:
1. Login stage
2. Data entry and process checks initiation
3. Credit appraisal stage
1.login stage
Short proposal entry(SPE)shall be done by sales irrespective of the fact,whether the file is
sourced from hub or spoke location.in case of spoke sourced cases,SPE can be done from
respective spoke or from nearest processing hub depending on system accessibility.
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Once SPE is done by sales,file will be submitted at CPA desk for checking compliance to MDCP
(minimum document credit parameters).guidelines.cpa will check for the presence of lasersoft
number on the file,check if the file has moved to PSDR stage,application sign date is mentioned
on application form or not,completeness of documentation &adherence to mdcp checklist.if
mdcp check is ok,file will be logged by selecting FTR in the document field &remarks&psdr
will be completed for the respective file.Appropriate entry will be made in the login register .on
the other hand if the MDCP check is not OK then the file would be returned to the sales staff
post updating FTNR code as per FTNR guidelines.
The discrepant file will be returned back to concerned sales representative post entry in the login
register.
If FTNR file is being loggedin, necessary approval/confirmation needs to be taken from credit
manager & PSDR is to be completed by selecting FTNR_CRE.i.e.FTNR with credit sign off
in document field.
For non CPA locations,above mentioned login process shall be carried out by ADFC or credit
manager.
Along with the above checks ,RBI dedupe would be initiated offline,pd would be initiated offline
as per the PD grid. ROC &LIP would be initiated offline to the concerned agency if applicable.
DEDUPE(CIBIL & SAS) will be auto triggered from system post move stage from DPE.
The CPA should also complete full DPE after initiating all process checks in the system.post
partial DPE, proposal will move to under writing bucket &would not be available at DPE stage
for completion of data entry.however, DPE can be accessed from u/w stage.CPA/ADFC/CM will
access DPE from U/W stage& complete DPE in terms of data entry.
All the verifications/checked initiated should be checked if received as specified in the process
flow and the same should be printed & attached in the file before sending the same to the credit
manager for decisioning.
At the time of decisioning ,the credit manager needs to check the need for an additional SPE.in
case, if an additional SPE is required ,the same needs to be communicated to sales.An additional
file would not be required,but the additional proposal number would be mentioned on the file.
4 REFERENCES:
FTNR guidelines
KYC guidelines
FTNR CREDIT OK
In cases pf any document or information discrepancies in the file, the sales staff may take credit
approval to log in the post which the file would be marked FTNR CREDIT OK in the login
register.
FTR cases
If the file is complete in the first instances, the CPA should mark FTR on both lasersoft and
the login resigter and do PSDR move stage to log-in the file.
SPOKE LOCATION
If the reaches the CPA from a spoke location, the CPA staff would first check for completeness
of the file, and do the SPE of the file and follow the process as for HUB location.
FTNR CODES IN PSDR STAGE
For every cases logged in at the CPA, ANY ONE of the below codes must be captured on the
system in PSDR stage. This can be view by sales through viewer right.
1
The Reserve Bank of India (RBI) has advised banks to follow a 'KYC guidelines', where in
certain personal information of the account-opening prospect or the customer is obtained. The
objective of doing so is to enable the Bank to have positive identification of its customers. This
is also in the interest of customers to safeguard their hard earned money.
The KYC guidelines of RBI mandate banks to collect three proofs from their customers. They
are
1. Photograph
2. Proof of identity
3. Proof of address
KYC is the initial and the most critical procedure before any customer is entertained. Therefore
to begin with I would like to bring forth some Frequently Asked Questions (FAQ) regarding
KYC.
What is KYC?
Know Your Customer - KYC enables banks to know/ understand their customers and their
financial dealings to be able to serve them better and manage its risks prudently.
Why KYC?
To establish the identity of the customer : This means identifying the customer and verifying
his/ her identity by using reliable, independent source documents, data or information. For
individuals, bank will obtain identification data to verify the identity of the customer, his
address/ location and also his recent photograph. This will be done for the joint holders and
mandate holders as well.
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No, KYC requirements have always been in place and Banks have been taking KYC
documents in accordance with the guidelines issued by RBI from time to time. RBI has
revisited the KYC guidelines in the context of recommendations made by the Financial
Action Task Force (FATF) on Anti Money Laundering standards and on Combating
Financing of Terrorism and enhanced the KYC standards in line with international
benchmarks.
Is KYC mandatory?
Regulatory: In terms of the guidelines issued by the Reserve Bank of India (RBI) on 29th
November 1704 on Know Your Customer [KYC] Standards Anti Money Laundering
[AML] Measures, all banks are required to put in place a comprehensive policy framework
covering KYC Standards and AML Measures.
Legal: The Prevention of Money Laundering Act, 1702 (PMLA) which came into force from
1st July, 1705 (after rules under the Act were formulated and published in the Official
Gazette) also requires Banks, Financial Institutions and Intermediaries to ensure that they
follow certain minimum standards of KYC and AML as laid down in the Act and the rules
framed there under.
Opening a subsequent account where documents as per current KYC standards not been
submitted while opening the initial account
Opening a Locker Facility where these documents are not available with the bank for all the
Locker facility holders
When the bank feels it necessary to obtain additional information from existing customers
based on conduct of the account
When there are changes to signatories, mandate holders, beneficial owners etc
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KYC will also be carried out in respect of non-account holders approaching the bank for high
value one-off transactions.
Product is designed in a way it ensures hassle free process for the customer & loan availed can
be put to any use.
Loan amount eligibility is evaluated basis on the Gold value banks usually fund 70-80% of the
gold market value & on repayment of the loan gold deposits are returned back to the customer.
This loan comes much cheaper than personal loan as its a secured product & rate of interest
ranges between 11.5-24% per annum.
Rate of interest is decided on two factors risk criteria ( What % of market value of Gold you are
availing loan if its 90% of the Gold market value then interest charged will be higher & vice a
versa for lower loan amount as compared to gold value) & customer relationship with the bank.
b)
like gift your love one, house renewal, celebration, purchase home appliance, purchase vehicle or
repairing etc. The Loan features and benefits are as below
Your Gold Jewelery & ornament will safe and secure at bank.
No EMI, you can enjoy loan facility with lower interest rate.
If you are HDFC bank customer, so you have special interest rate.
The Gold jewelery or ornament should be owned or any of the family member.
Applicants have compulsory Proof of Identity (Voter ID Card/ Passport/ Driving License)
Address Proof (Ration Card/ Telephone or Electric Bill/ Shop & Establishment copy)
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Disbursal of loan.
PARTICULARS
HDFC
ICICI
SBI
1.
Rate of interest
14.75%
14.5%
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2.
Processing fees
2%
1%
1%
3.
Tenure
20Years
15 Years
10Years
4.
Funding
60%
65%
55%
5.
Maximum Age
65
60
70
6.
Minimum Age
21
21
21
PARTICULARS
HDFC
ICICI
MANAPPURAM
1.
Rate of interest
13%
16%
13.74%
2.
PROCESSING FEE
0.50%
1%
0.50%
3.
FUNDING
90%
90%
90%
4.
TENURE
12 MONTHS
18 MONTHS
24 MONTHS
5.
AGE CRIETERIA
21-65 YEARS
18-70 YEARS
18-75 YEARS
6.
MAXIMUM LOAN
AMOUNT
10 LACS OR UPTO
1 CRORE
15 LACS
1 CRORE
5.3 Analysis of customer satisfaction towards Gold loan scheme provided by HDFC
bank:
1. customer satisfaction towards rightly guidance by the bank executive at the time of loan
application-
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Customer satisfaction
Disagree; 20%; 20%
Agree
netural
Disagree
Findings : Maximum no of customers said that they are guided rightly by the bank executive at
the time of loan application.
2.Time taken by valuer in valuation:
valuation done
20; 10%
5-15min
50; 25%
15-30min
50; 25%
30min- 1hr
more than 1 hr
80; 40%
Findings: out of 200 customers 65% customers get their valuation done in 5 min to 30 min. this
shows that maximum customers are satisfied by the time taken by the bank in valuation done.
3. Behaviour of valuer
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Valuer Behaviour
Polite
Average
Rude
15%
50%
35%
Customer satisfaction
Dissatisfied; 35%
satisfied
Dissatisfied
satisfied; 65%
Findings: out ot 200 customers 72% customers are satisfied by the amount calculated by the
gold valuer on the gold loan.
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Time taken
5-15min
60; 30%
24; 12%
15-30min
116; 58%more than 1hr
Time Taken
20%
1hr 25%
1-2hr
more55%
than 2 hr
Findings: More than 50% customers have to wait for 2hr to receive money after valuation.
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EASE OF DOCUMENTATION
15%
85%
HDFC
OTHER
Findings: most of the customers said that HDFC bank take lesser documentation in comparison
to other banks.
(b) Disbursement of loan money :
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Disbursement of money
60%
HDFC
OTHER
40%
Findings: Maximum No. of customers said that other bank provide fast Disbursement of loan
money.
Customer satisfaction
satisfied
dissatisfied
Findings: maximum no. of customers are satisfied by the gold loan provided by the HDFC bank.
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6. SWOT ANALYSIS
6.1 SWOT ANALYSIS ON LOAN AGAINST PROPERTY:
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STRENGHTS
OPPORTUNITY
WEAKNESS
THREATS
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STRENGHTS
OPPORTUNITY
WEAKNESS
THREATS
7. FINDINGS
Eligibility criteria for banks is almost same, not entirely
Maximum number of borrowers were satisfied due to the lower rate of interest.
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HDFC bank takes lesser documentation in gold loan and maximum number of
documentation in lap.
Valuer was not available at the time of valuation.
Customers have to wait for more than 2hrs to receive money after valuation.
Valuation was not according to customer requirement.(expectations)
Slow disbursement process of loan money.
8. SUGGESTION:
9. CONCLUSION
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There is a great scope for further improvements in loan division. Overall the schemes
are pretty good.
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10. BIBLIOGRAPHY
WEBSTIES:
www.hdfcbank.com
www.icicibank.com
www.wikipedia.com
www.Sbibank.com
www.bseindia.com
www.google.com
www.manappuram.com
OTHER SOURCES:
HDFC annual reports 2010-2011.
MAGAZINES:1
Business world.
Business Today
NEWSPAPERS:1.
Times of India.
2.
Economic Times.
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11. ABBREVIATION
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12. ANNEXURE
11.1 QUESTIONAIRE
Customer satisfaction survey on gold loan
1
Do you feel you were guided rightly by the bank exec.at the time of
loan application?
Strongly agree
Agree
netural
strongly disagree
disagree
Rude
Were you satisfied with the amount calculated by the valuer of the
jewelery?
Satisfied
Netural
Dissatisfied
How much time you have to wait in the branch after getting the
valuation done?
1hr
1-2hr
More than 2hr
How was your overall experience while taking loan from HDFC bank?
Good
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10
+
11
Average
Poor
Ease of documentation
Speed of approval
Timely disbursement of money
Verification process
Responsiveness of bank employees to your
needs
Customer satisfaction?
Satisfied
Unsatisfied
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