A

SUMMER TRAINING PROJECT

REPORT
ON

LOAN SCHEMES OF KCCB

Submitted in the partial fulfillment for the requirement of the award of degree of
Bachelor of Business Administration

Submitted to: Submitted by :

HPU Name: Rajesh Kumar
Class: BBA 5th Sem.
Roll no. 5114GHYU43002
 DECLARATION

I Rajesh Kumar student of BBA 5TH Semester declare that I have done
the Project on LOAN SCHEMES OF KCCB has been personally done
by me under the guidance of Prof. MINAKSHI. All the data represented
in this project is true & correct to the best of my knowledge & belief.

I also declare that this project report is my own preparation and not
copied from anywhere else.

Signature of candidate Signature of guide

RAJESH KUMAR MINAKSHI SAROCH

 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude, thanks and

regards towards all of those who have directly or indirectly helped me in
the successful completion of this project.

I present my sincere thanks to Mr. MUNISH MANDIAL (Branch

Manager) who allowed me to take training at KCCB GAGRET IN UNA
DISTT.

I would also like to thanks entire staff of KCCB GAGRET.

I also thank Prof. MINAKSHI who has sincerely supported me with the
valuable insights into the completion of this project.

I am grateful to all faculty members of College and my friends who have

helped me in the successful completion of this project.

Last but not the least I am indebted to my PARENTS who provided me

their time, support and inspiration needed to prepare this report

RAJESH KUMAR
 PREFACE

The present era is undoubtedly a management era. Management is

an important function in any organization. A management is one of the
most important fields which are widely used in every stage of life. The
effective management can be achieved only by effective management
training and developing skill to understand the organizational level this
project work is a part of the course of BBA and was done at various types
of loan offered by KCCB.

THE KCCB Provide various types of services such as saving and current
account, safe deposit locker and loan to its customers.

KCCB offer various loan schemes to its customers such as House loan,
Education loan, Consumer loan, Crop loan etc. This project helps me to
know different type loans preferred by different customers. And also
satisfaction level of customer from KCCB Lending policy.
Table of Contents

Ch. No. Contents Page No.

Chapter 1 Introduction 1
1.1 History of Banking 1-2
1.2 Indian banking structure 3-4
1.3 History of company 5
1.4 Company profile 6-9
1.5 Role of Registrar of Cooperative 10-11
Societies
1.6 Mission & Vision statement of the 11-13
bank
1.7 Products and services of KCC bank 14-28
Chapter 2 2.1 Loan Schemes Of Bank 29-34
Chapter 3 3.1 Research methodology 35-37
3.2 Research design 37
3.3 Collection of data 38
Chapter 4 Data analysis and interpretation 39-48
Chapter-5 5.1 Limitation 49
5.2 Conclusion 50
5.3 Suggestion 51
Annexure-I Bibliography 52
Annexure-II Questionnaire 53-55
 CHAPTER 1

INRODUCTION

1.1 HISTORY OF BANKING

Banking is nearly as old as civilization. The history of banking could be

said to have started with the appearance of money. The first record of
minted metal coins was in Mesopotamia in about 2500B.C. the first
European banknotes, which was handwritten appeared in1661, in Sweden.
Printed paper money appeared in the 1700s and 1800s, with many banks
created to deal with increasing trade.

The history of banking in each country runs in lines with the development
of trade and industry, and with the level of political confidence and
stability. The ancient Romans developed an advanced banking system to
serve their vast trade network, which extended throughout Europe, Asia
and Africa.
Modern banking began in Venice. The word bank comes from the Italian
word ban co, meaning bench, because moneylenders worked on
benches in market places. The bank of Venice was established in 1171 to
help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold

gold and silver in their safes in return for a fee. Receipts given to the
Merchant were sometimes used to buy or sell, with the metal itself staying
under lock and key. The goldsmith realized that they could lend out some
of the gold and silver that they had and charge interest, as not all of the
merchants would ask for the gold and silver back at the same time.
Eventually, instead of charging the merchants, the goldsmiths paid them
to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the
public for the government to finance the war of Augsburg against France.
By 1709, goldsmith were using bank of England notes of their own
receipts.

New technology transformed the banking industry in the 1900s round the
world, banks merged into larger and fewer groups and expanded into other
country.
1.2 BANKING STRUCTURE IN INDIA:

In todays dynamic world banks are inevitable for the development of a

country. Banks play a pivotal role in enhancing each and every sector.
They have helped bring a draw of development on the worlds horizon
and developing country like India is no exception.

Banks fulfills the role of a financial intermediary. This means that it acts
as a vehicle for moving finance from those who have surplus money to
(however temporarily) those who have deficit. In everyday branch terms
the banks channel funds from depositors whose accounts are in credit to
borrowers who are in debit. Without the intermediary of the banks both
their depositors and their borrowers would have to contact each other
directly.

Before few decades there existed some influential people who used to
land money. But a substantially high rate of interest was charged which
made borrowing of money out of the reach of the majority of the people
so there arose a need for a financial intermediate.

The Bank have developed their roles to such an extent that a direct
contact between the depositors and borrowers in now known as
disintermediation.
 INDIAN BANKING SYSTEM:
Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op
Commercial Banks
Banks and Primary
State co-op Commercial Banks Cr. Societies
Banks

Indian Foreign

Public Sector HDFC, UCCO,

Private Sector Banks
Banks ICIC ETC.

ICICI etc.

State Bank of India Other Nationalized Banks Regional Rural

and its Subsidiaries Banks
 1.3 HISTORY OF COMPANY:

Came into existence on 17th March 1920 (License No. RPCD.09/2009-10).

Indora Banking Union was merged and 2nd Branch of the Bank opened at
Nurpur in Jan1956

Palampur Banking Union was merged and 3rd Branch of the Bank opened at
Palampur in Jan1957

The Bank suffered losses because of the partition in 1947 to the tune of

In Mar 1962, the bank suffering from the setback of partition was granted
Rs.4.09 Lacks by the Govt.

Govt. also provided Interest Free Relief Loan of Rs.3.98 Lacks and Govt. of
India Loan of Rs.4.97 Lacks @ 3.87% in 1962 in 1971-72

The Bank entered into the deposit mobilization scheme of Pong Dam Area
aggressively and secured maximum share of Deposit Bank Deposits
increased from Rs. 256 Lacks in 1971-72 to Rs. 1054 lacks in 1973-74.
1.4 COMPANY PROFILE:
THE KANGRA CENTRAL CO-OPERATED BANK LTD. started
in a very humble way as a small Thrift/Credit Society in March, 1960 by
a few friends of District Kangra of Himachal to help out the people of
Himachal residing in Delhi to uplift their economic conditions and tide
over the financial hardships. Dedication, sincerity and honesty of these
members/associates brought rich fruits and this Thrift/Credit Society grew
up into a big society within twelve years after its formation and successful
running was converted into a primary urban Cooperative Bank in 1972 by
RBI and was permitted to carry out banking activities including
acceptance of deposits from public (non-members) by opening their
Saving, Current and RD A/cs. Twenty three years there from in June
1995 it was granted a license to carry out the banking business by the
Reserve Bank of India. Thereafter, it was granted license to
open branches and consequently six more branches were added in
February, May, December 1996, June 1998 ,October 2008 and the last
one in July 2009. In May 1970 it purchased Paharganj building and
reconstructed the same in 1993. In October, 1997 it purchased the present
premises at Janakpuri to set up administrative and HO. Central accounts
and Personnel department are functioning from this building. It has a
board meeting room. One branch also functions here.
 The main branch along with its service branch, arbitration and
recovery department is situated in its own three storied building at
Paharganj.

It purchased another Building in April 2008 At Jagatpuri where its

one of the existing Branches has already been functioning.

AGBM and elections, audit etc. are held on regular intervals. Bank is
giving dividend to its Share-holders regularly and lastly declared @ 18%
the highest declared/paid so far. Bank has also introduced three schemes
of welfare nature for its shareholders. First one is where grant of Rs
20,000/- is given to the nominee of the deceased members and no interest
is charged up to 50000/- liability in case of death of the member, the
second one is where scholarship @ Rs.150/- and Rs.200/- per month is
given to the brilliant wards of the members and staff and the third one is
to give one time incentive to those wards of members / staff who get 90
% marks in Board examination. Amount of incentive is Rs.3100/- and
Rs.5100/- for 10th and 12th class respectively

All the branches of the bank remain open for six days a week with full
day banking service on Saturday. For the convenience of its customers it
is having agency arrangement with HDFC Bank which enables the bank
to issue Demand Drafts on HDFC branches across the country, to arrange
collection of out-station cheques within a week or ten days.
Bank is also maintaining C-SGL A/c with HDFC and also participates in
the non-competitive bids of RBI for the purchased of Govt. Securities.

For its employees bank has introduced several good schemes like cover
of medical claim insurance, covering expenses up to 3.00 lacs requiring
hospitalization of the employee, his or her spouse & up to two childrens.
Facility of housing loan up to ten lacs is also available for the staff.

It has in place well defined service rules which ensure career growth to its
employees. It also celebrates annual day in which awards for best branch,
workers etc. are also given.

Bank has also introduced welfare schemes for its employees which
includes grant of Rs.1 lacs on death and on permanent disability on duty.
Additional reimbursement is also given in case of serious deceases like
heart, kidney transplantations, cancer, T.B. etc.

In order to improve the knowledge of the staff guest lectures are also
arranged on important topics related to the banking activities from time to
time.
 FINANCIAL POSITION
AS ON 31.03.2016

HEAD FINANCIAL POSITON(Rs. In

Crore)
Share Money 27.65
Reserves 35.25
Working Capital 844.01
Deposits 736.76
Advances 459.93
Net Profit Before Tax 13.47
Net profit after Tax 8.55
1.4 ROLE OF REGISTRAR OF COOPERATIVE
SOCIETIES:-

The KANGRA CO-OPERATIVE BANK WAS registered /FORMED AS A co-

operative society and thereafter converted to a Co-operative bank. All co-operative
societies and banks are governed by the co-operative act and falls under the
jurisdiction of the RCS of the concerned state. As such we are being looked after
by the RCS office of Delhi government.

ROLE OF REGISTRAR OF COOPERATIVE SOCIETIES

Right from the Registration of a Cooperative Society till the cancellation of its
registration, the Registrar acts as friend, philosopher and guide to the cooperatives
and ensures that Cooperative Societies function in accordance with the
Cooperative Act. In fact the Registrar is "Trimurti" of the Cooperative movement.
The main functions of the Registrar are as under:

1. Registration of Cooperative Societies;

2. Registration of amendments in the Bye-laws of Cooperative Societies;

3. Amalgamation, Division and re-organization of Cooperative

Societies;

4. Ensure timely Election of the Managing Committee in Cooperative

Societies;
5. Conduct elections of Managing Committee in primary cooperative
banks and federal cooperative societies;

6. Ensure proper investment of funds by Cooperative Societies as per

Act and Rules;

7. Conduct audit, order inspection, enquiry and also fixing surcharge on

negligent functionaries of cooperative societies;

8. Settle disputes of Cooperative Societies through the process of

arbitration.

9. Function as an appellate Court;

10.Enforcement/execution of Orders, Awards and Decrees of various

Courts;

11.Order winding up and cancellation of registration of defunct/non-

functional societies.

12.Operating Cooperative Education Fund for training, education,

propaganda and publicity programmed for the development of
Cooperative Movement in the NCT of Delhi.

13.To frame/amend Delhi Cooperative Societies Rules, 1973 from time

to time.

14.Issue Instructions/directives for the promotion of business of different

type of Cooperatives;
 15.To approve proposals for enrolment, resignation and cessation of
membership in Housing Cooperative; and

To frame, execute and monitor various beneficiary schemes approved by the

Central /State Govt., including financial assistance to various sectors of
Co-operatives.

1.6 MISSION & VISION STATEMENT OF THE BANK

MISSION

KCC Banks began operations in 1995 with a simple mission to be a World

Class Indian Bank. We realized that only a single-minded focus on product quality
and service excellence would help us get there. Today, the bank is on the way
towards that goal. It is extremely gratifying that its efforts towards providing
customer convenience have been appreciated both nationally and internationally.
The banks aim is to build a sound customer franchise across distinct businesses so
as to be the preferred provider of banking services in the niche segments that the
bank operates in and to achieve healthy growth in profitability, consistent with the
banks risk appetite.

The economic development of any country depends on the extent to which its
financial system efficiently and effectively mobilizes and allocates resources. There
are a number of banks and financial institutions that perform this function; one of
them is the development bank. Development banks are unique financial institutions
that perform the special task of fostering the development of a nation, generally not
undertaken by other banks.

Development banks are financial agencies that provide medium-and long-term

financial assistance and act as catalytic agents in promoting balanced development
of the country. They are engaged in promotion and development of industry,
agriculture, and other key sectors.
The objectives of development banks are:

To serve as an agent of development in various sectors, viz. industry,

agriculture, and international trade

To accelerate the growth of the economy

To allocate resources to high priority areas

To develop entrepreneurial skills

To promote the development of rural areas

To finance housing, small scale industries, infrastructure, and social utilities.

In addition, they are assigned a special role in:

Planning, promoting, and developing industries to fill the gaps in industrial

sector.

Coordinating the working of institutions engaged in financing, promoting or

developing industries, agriculture, or trade, rendering promotional services
such as discovering project ideas, undertaking feasibility studies, and
providing technical, financial, and managerial assistance for the
implementation of projects

VISION
To Strengthen And Upgrade It System In The Bank.

To introduce new service rules with new pay scales.

To make steps to provide quality services to the customers.

To get scheduled status for the bank.

To create a befitted set up matching the status of bank.

1.7 PRODUCTS AND SERVICES OFFERED BY KCCB

1. PERSONAL BANKING SERVICES

A. Accounts & Deposits

Savings Account

Regular Savings Account

Savings Plus Account
Savings Max Account
Senior Citizens Account
No Frills Account
Institutional Savings Account
Payroll Salary Account
Classic Salary Account
Regular Salary Account
Premium Salary Account
Defence Salary Account
Kid's Advantage Account
Pension Saving Bank Account
Family Savings Account
Kisan No Frills Savings Account
Kisan Club Savings Account

Knowledge Centre
Equities & Derivatives
Current Account
Plus Current Account
Trade Current Account
Premium Current Account
Regular Current Account
Apex Current Account
Max Current Account
Reimbursement Current Account
Financial Planning
Fixed Deposit
Regular Fixed Deposit
Super Saver Account
Sweep-in Account
Recurring Deposit
Demat Account
Safe Deposit Locker

B. Loans
Personal Loans
Home Loans
Two Wheeler Loans
New Car Loans
Used Car Loans
Overdraft against Car
Express Loans
 Loan against Securities
Loan against Property
Commercial Vehicle Finance
Working Capital Finance
Construction Equipment Finance

C. Investments & Insurance

Mutual Funds
Insurance
Bonds

Platinum plus Credit Card

Titanium Credit Card
Value plus Credit Card
Health plus Credit Card
D. Forex Services Fixed Deposit
Regular Fixed Deposit
Super Saver Account
Sweep-in Account
Recurring Deposit
Demat Account
Safe Deposit Locker

E. Payment Services
Net Safe
 Prepaid Refill
Bill Pay
Direct Pay
Visa Money Transfer
E-Monies Electronic Funds Transfer
Excise & Service Tax Payment

F. Access Your Bank - One View

Insta Alerts
Mobile Banking
ATM
Phone Banking
Branch Network

G. Cards
Silver Credit Card
Gold Credit Card
Woman's Gold Credit Card

KCC Bank Idea Silver Card
KCC Bank Idea Gold Card

2. WHOLESALE BANKING SERVICES

Funded Services
Non Funded Services
 Value Added Services
Internet Banking
Clearing Sub-Membership
RTGS sub membership
Fund Transfer
ATM Tie-ups
Corporate Salary a/c
Tax Collection
Financial Institutions
Mutual Funds
Stock Brokers
Insurance Companies
3. NRI BANKING SERVICES
Rupee Saving a/c
Rupee Current a/c
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
Payment Services
Net Safe
Bill Pay
Insta Pay
Direct Pay
Visa Money
Online Donation
Deposit policy

Customers are most important visitors in our premises they are not dependent
on us we are dependent on them. We are determined to serve them in
particular and our community as a whole in general with smile to their utmost
satisfaction through cooperatives.

The Bank requires satisfactory introduction of the person/s opening the

account by a person acceptable to the bank.

The bank is required to obtain 2 recent photographs of the person/s opening

the account.

The bank is required to obtain permanent account number (PAN) or General

Index Register (GIR) number or alternatively obtain declaration in form
no.60 or 61 as per the income Tax Act (Vide Section 139-A) from the
person/s opening the account.

The Bank will provide to the prospective customers details of the documents
required for identification of the person/s opening the account in addition to
a satisfactory introduction. Documents normally accepted are the current
Gas/Telephone/Electricity Bill or voter's identity card or driving license or
pass port or Ration card etc.
 The account holder is required to maintain minimum balance in the account,
as specified by the Bank from time to time. Bank has discretion to change
the above norms and levy charges for non-compliance of the same.
However, adequate notice will be given informing the change/s. Interest as
prescribed by RBI is paid on half yearly basis on minimum balance between
the 10TH day and last day of the month, provided it works out minimum
Re.1.

Issue of cheque book is subject to satisfactory operation in the account.

However issue of multiple Cheque books is the discretion of the Branch
Manager and subject to charges.

Cheques, Dividend warrants drawn in the name of account holder/s will only
be collected through the account. (Financial instruments endorsed in favor of
the account holder/s will not be collected through SB account.)

Current Account: -

Current Accounts are designed to meet the needs of such sections of the
public who operate their account regularly and frequently i.e. Traders,
Businessmen, Corporate bodies or the like who receive money and make payments
very often. Current accounts are suitable to such category of customers as there are
no restriction on the number of withdrawal or deposit. Current accounts can be
opened by individuals, partnership firms, Private & Public Ltd Co., HUFs, /
Specified associates, Societies, Trusts, etc.
 As required by law, while opening the account, we will satisfy ourselves
about the identity, including verification of address of the person/s seeking to open
an account to assist in protecting the prospective customers, public and ourselves
against fraud and other misuse of the Banking system duly observing the KYC
guidelines of RBI.

The Bank requires satisfactory introduction of the person/s opening the account
by a person acceptable to the bank.

The Bank is required to obtain 2 photographs of all the person/s who is opening
and operating the account.

The bank is required to obtain permanent account number (PAN) or General

Index Register (GIR) number or alternatively obtain declaration in form no.60 or
61 as per the income Tax Act (Vide Section 139-A) from the person/s opening the
account (i.e. including partners or registered / unregistered partnership as also
registered / incorporate bodies / companies).

The Bank will provide to the prospective customers details of the documents
required for identification of the person/s opening the account in addition to a
satisfactory introduction. Minimum Balance as stipulated from time to time is
required to be maintained by the customers.

No interest is paid on credit balance kept in Current Account.

Service charges are levied for

1. Cheque books issued

2. Non-maintenance of minimum balance

3. Return of cheques, etc

The applicant (i.e. account opener) should declare in the account opening form or
separately that he is not enjoying any credit facility with any bank and if he does
enjoy any facility he should declare full particulars thereof indicating the name of
the bank, branch where from he has availed these facilities and also submit no
objection certificate from financing bank/institution.

Statement of account is provided to the account holder monthly or more

frequently as per the arrangement.

Stop Payment facility The bank will accept stop payment instructions from the
depositors in respect of cheques issued by them (subject to maintenance of
required balance). Charges as specified will be recovered.

Term Deposit Account:

The deposits received by the bank for a fixed period withdrawable after the expiry
of the fixed period and include deposits such as Recurring / Fixed /Term etc.

Term Deposits can be opened by individuals, partnership firms, Private / Public

Ltd Companies, HUFs,/ Institutions/Societies/Trusts etc.

As required by law, while opening the account we will satisfy ourselves about the
identity, including verification of address of the person/s seeking to open an
account to assist in protecting the prospective customers, public and ourselves
Against fraud and other misuse of the Banking system duly observing the KYC
guidelines of RBI.

The Bank requires satisfactory introduction of the person/s opening the account
by a person acceptable to the bank.

The Bank is required to obtain 2 photographs of all the person/s who is opening
and operating the account.

The bank is required to obtain permanent account number (PAN) or General

Index Register (GIR) number or alternatively obtain declaration in form no.60 or
61 as per the income Tax Act (Vide Section 139-A) from the person/s opening the
account.

The Bank will provide to the prospective customers details of the documents
required for identification of the person/s opening the account in addition to a
satisfactory introduction by Persons & entities already having operative accounts
such as SB, current account etc. need not provide the above documents for opening
of the Term Deposit accounts.

Premature withdrawals are allowed unless specified otherwise, at the rate of

interest applicable for the period for which the deposit has run ruling on the date of
deposits, subject to penalty if any prescribed by the bank.
Premature extension / renewal of term deposit

In case the depositor desires to renew the deposit by seeking premature

closure of an existing term deposit, the bank will permit the renewal at the
applicable rate on the date of renewal, provided the deposit has run for a minimum
period of 15 days and is renewed for a period longer than the balance period of the
original deposit. While prematurely closing a deposit for the purpose of renewal,
interest on the deposit for the period it has remained with the bank will be paid at
the rate applicable to the period remained with the bank and not the contracted rate.

Generally loans / overdrafts against deposits are allowed except on Certificate of

Deposit (CD). Such loans are sanctioned by charging interest at rates announced
from time to time by the bank. The bank may also consider loan against deposit
standing in the name of minor. However, a suitable declaration stating that loan is
for the benefit of the minor is to be submitted by the depositor applicant.

Deposits are renewed by the bank on due dates on request. Wherever the
depositor has executed the option of automatic renewal in the account opening
form, the bank may renew the deposit until the instructions are revoked in writing.
The bank intimates the depositor in advance regarding the date of maturity.

Interest on deposit is payable either monthly or quarterly or half yearly.

Renewal of overdue Term Deposits: When a term deposit is renewed on maturity,

on renewed deposit interest rate for the period specified by the depositor as
applicable on the date of maturity would be extended.
If request for renewal is received after the date of maturity, such overdue deposit
will be renewed with effect from the date of maturity at the interest rate applicable
as on the due date, provided such request is received within 14 days from the date
of maturity. In respect of deposits renewed after 14 days from the date of maturity,
the deposits will be renewed from the date of maturity for the period requested
applying the rate of interest ruling on the date of maturity or on the date of renewal
whichever is lower, subject to renewal for a period not less than 15 days from the
date of renewal.

Interest on overdue deposit is paid if the deposit is renewed, as decided by the

bank from time to time.

Interest on bank deposits is exempt from Income Tax up to a limit specified by

Income Tax authorities from time to time.

Presently, if the total interest on deposits, per depositor per branch per financial
year exceeds Rs.5000/-, the same is subject to Tax deducted at source (TDS) at the
rate stipulated by the Income Tax authorities.

The depositor may furnish declaration in form No.15-G/ 15-H preferably at the
commencement of the financial year for receiving interest on deposits without
deduction of tax.

The Bank will issue TDS certificate for the tax deducted.
JOINT ACCOUNTS:

Deposit accounts can be opened by an individual in his own name or by more than
one individual subject to maximum of four persons, known as joint account. SB
account can be opened by a minor jointly with natural guardian or with mother as
guardian.

Operations of Joint account:

The joint account opened by more than one individual subject to a maximum of 4
persons can be operated by single individual or by more than one individual
jointly. The mandate for operating the account can be modified with the consent of
all the joint account holders. In case of SB account opened by minor jointly with
the natural guardian the operation is by the natural guardian only.

Transfer of accounts:

Current Account, SB, Term Deposits may be transferred from one

branch to another branch within the bank at the request of the account
holders subject to certain conditions.

Addition of names:

The Bank may at the request of the depositor/s allow addition of name/s subject to
the condition that the total number of depositors does not exceed four in case of
both the SB, CA & Term deposits.
Deletions in name/s of depositor/s are also permitted, subject to the condition that
one of the original depositors should continue to be a depositor.

Change in Rate of Interest:

The rate of interest on deposits will be prominently displayed in the branch

premises apart from placing the same on our bank's website.

The changes if any with regard to the deposit schemes and other related services,
shall also be communicated upfront and shall be prominently displayed. The same
may also be published in newspaper.

Customer Information:

The customer information collected from the customers shall not be used
for cross selling of services/ products by the bank, subsidiaries &
affiliates. If the bank proposes to use such information, it shall be with
the consent of the account holder/s.

Secrecy of the customer accounts:

The Bank shall not disclose details / particulars of the customers' accounts to a
third person or party without the express or implied consent from the customer.
However, there are some exceptions viz. Disclosure of information under
compulsion of law, where there is a duty towards the public to disclose and where
interest of the bank requires disclosure.
Inoperative accounts:

SB & CA accounts in which there are no operations for a period of 2 years and
above from the date of last

MILESTONES IN THE HISTORY

KCC Bank began its operations in 1960 with a simple mission to be a "World-class
Indian Bank". They realized that only a single-minded focus on product quality and
service excellence would help us get there. Today, they are proud to say that they
are well on our way towards that goal. It is extremely gratifying that their efforts
towards providing customer convenience have been appreciated both nationally and
internationally.

QUALITY POLICY

SECURITY: The bank provides long term financial security to their policy. The
bank does this by offering life insurance and pension products.

TRUST: The bank appreciates the trust placed by their policy holders in the bank.
Hence, it will aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our customers, the bank offers
a range of innovative products to meet these needs.
 CHAPTER 2
2.2 LOAN SCHEMES OF BANK:

A loan is an arrangement in which a lender gives money or property to a

borrower, and the borrower agrees to return the property or repay the
money, usually along with interest, at some future point in time. Usually,
there is a predetermined time for repaying a loan, and generally the
lender has to bear the risk that the borrower may or may not repay a
loan.
THE KANGRA CENTRAL COOPERATIVE BANK Provide various
type of loans to its customer as well as to its employees such as house
loan, education loan, consumer loan, crop loan, personal loan, vehicle
loan, SSI Loan etc. Objectives, purpose and eligibility of these loans are
explain below.

HOUSE LOAN:

Purpose:

For the construction of new house, extension of house, purchase of

constructed house/flat, purchase of land for construction of house, repair
of house.

Eligibility:
Any individual of 21 year and above but less than 65 years having
regular and steady income is eligible for house loan.
Repayment period:

MORATORIUM PERIOD:
For construction of house, purchase of a flat/house on installment
basis from Govt., housing society, public agency etc. maximum
moratorium permitted 18 months from the date of 1st disbarment or
till 2 months after completion of construction, whichever is earlier.
For other purpose one month after the date of full disbursement.

GOVT. EMPLOYEES:

Maximum 20 years or date of superannuation of the employees

whichever is less.

NON SALARIED INDIVIDUALS:

Maximum 15 years or till he/she attains the age of 65 years

whichever is less.

RATE OF INTEREST:

Are applicable as per H.O. Circular and subject to change from time to
time.
 EDUCATION LOAN:

OBJECTIVE:

To provide financial assistance to deserving/meritorious student with an

opportunity including undertaking basic education and to the meritorious
students to pursue higher professional and technical education in India.

ELIGIBILITY:

Course eligibility:
I. School education including +2 stage.
II. Graduation courses.
III. P.G. courses.
IV. Professional courses: Engineering, Medical, Agriculture,
Law, Management etc.
V. Course like CA, CS, ICWA etc.
VI. Course conducted by IIM, IIT, NIFT, NIFD etc.
VII. Evening courses of approved institution.
VIII. Courses offered by national institute & other private reputed
institute.

Student eligibility:

I. Should be an Indian National.

II. Should have secured admission in professional/technical courses
through entrance test/selection process.
III. Student should have secured pass marks in the qualifying
examination for admission to Graduation College.

CROP LOAN/KISAN CREDIT CARD:

OBJECTIVE:

The scheme aims at providing adequate and timely credit for the
comprehensive credit requirements of farmers for taking up agriculture
and allied activities under single window, with flexible and simplified
procedure, adopting whole farm approach, including the short-term
credit needs and reasonable component for consumption needs, through
KISAN CREDIT CARD including repayment of farmers dues to non-
institutional lenders.

FEATURE OF KISAN CREDIT CARD SCHEME:

i. Eligible farmers to be provided with KISAN CREDIT CARD

and passbook or card-cum-passbook and ATM card.
ii. Revolving cash credit facility involving any number of
drawals and repayments within limits.
iii. Limit to be fixed on the basis of operational land holding ,
cropping pattern and scale of finance.
iv. Entire production credit needs for full year plus ancillary
activities related to crop production to be considered while
fixing limit.
 v. Card valid for 5 year subject to annual review. An incentive
for good performance, credit limits could be enhanced to take
care of increase in costs, change in cropping pattern, etc.

vi. Withdrawals through cheques accompanied by card and

passbook through issuing branch.
vii. Withdrawals through ATM also permitted.
viii. Interest as applicable for S.B. Account, is payable in the
revolving cash credit account on the credit balance, if any.

SSI LOANS:

OBJECTIVES:

To provide financial assistance to the entrepreneur to set up new units

expansion, modernization, of existing units, construction of building,
installation of machinery & equipment, construction of school, purchase
traditional and power looms etc. & working capital.

AREA OF OPERATION:

Through all branches of bank.

Eligibility:

ALL type of small business units, retail traders, artisans, village

industries, small scale industrial units, small scale services etc.
Repayment period:

5 to 10 years (for term loan) depending upon the project profitability

including the gestation/moratorium period of 3 to 18 months.

SOME OTHER LOAN SCHEMES ARE:

VEHICLE LOAN
CONSUMER LOAN
PERSONAL LOAN TO GOVT. EMPLOYEES
AAM ADMI KI RINN YOJNA
SELF HELP GROUPS
CASH CREDIT LIMIT
LOAN FOR PROFESSIONALS FOR ACQUIRING OFFICE
PREMISES, MACHINERY, TOOLS & EQUIPMENTS
 CHAPTER -3:

RESEARCH METHDOLOGY:

3.1 Research Methodology

Introduction and meaning:-

Research methodology is way to systematically solve the research

problem. The research methodology includes the various methods and
techniques for conducting a researched. Salinger and M. Stephenson in
the encyclopedia of social sciences define research as the manipulation
things, concepts or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art

Research is a careful investigation or inquiry especially through search

for new facts in branch of knowledge: market research specifies
information. Required to address these issues: designs the method for
collecting information: manage and implements the data collecting
process analyses the results and communicates the finding and their
implications
RESEARCH OBJECTIVES AND SCOPE OF RESEARCH
PROJECT

OBJECTIVE OF STUDY:

To know the lending practices KCCB.

To know different type of loan preferred by different set of
customer.
To know the satisfaction level of customers from banks lending
policies.
To analyze the efficiency and effectiveness of bank.
To measure and compare various loan schemes.

Scope of the Study

Each and every project study along with its certain objectives also have scope for
future. And this scope in future gives to new researches a new need to research a
new project with a new scope. Scope of the study not only consist one or two future
business plan but sometime it also gives idea about a new business which becomes
much more profitable for the researches then the older one.

Scope of the study could give the projected scenario for a new successful
strategy with a proper implementation plan. Whatever scope I observed in my
project are not exactly having all the features of the scope which I described above
but also not lacking all the features
 - Research study could give an idea of network expansion for capturing more
market and customer with better services and lower cost, without
compromising with quality.
- In future customer requirements could be added with the product and services
for getting an edge over competitors.
- Factors which are responsible for the performance for bank can also be used
for the modification of the strategy and product for being more profitable.
- Factors which I observed while doing project study are following-
Loan schemes of bank

Loans preferred by customers

Competitor

Advertisement/promotional activities

3.2 RESEARCH DESIGN:

Research design constitutes the blue print for the collection,

measurement and analysis of data. Descriptive research is used in this
study in order to identify loan schemes of the bank and determining
customers level satisfaction. The research has been conducted on users
within GAGRET in Una district. For the selection of the sample,
convenient sampling method was adopted and an attempt has been made
to include all the age groups and gender within different occupation.
 3.3 COLLECTION OF DATA:

1. PRIMARY DATA:

Observation method
Structured questionnaire
Interview method

2. SECONDARY DATA:

Annual reports of banks

Books
Internet

Sample units:

The study population includes the customers of the bank and sampling
unit for study was individual customer.

SAMPLE SIZE:

50 Respondents.
 CHAPTER-4:

Data analysis and interpretation

QUESTION WITH ANALYSIS AND INTERPRETATION:

A questionnaire was used as the primary source of data collection and

the detailed question wise analysis of the data is given on next pages:-
1. Which loan you prefer most?
Kind of loan No. of respondent Percentage (%)

House loan 13 26%

Personal loan 11 22%

Consumer loan 6 12%

Education loan 8 16%

Vehicle loan 10 20%

Other 2 4%

PREFRENCE OF CUSTOMER FOR LOAN

4%

26%
20%
House loan
Personal loan
consumer
Education
Vehicle
16%
Other

22%

12%

INTERPRETATION: Present study reveals that majority of people

prefer house, personal, and vehicle loan and less consumer prefer
education, consumer and education loan.
2: What promoted the customer to take loan?

Reason for taking No, of respondent Percentage (%)

loan
Reasonable rate of 13 26%
interest
More scheme 8 16%
Easy repayment 23 46%
Any other 6 12%

What promoted the customer to take loan

from KCCB
12%
26%

46% 16%

Reasonable rate of interest More scheme Easy repayment Any other

INTERPRETATION: 46% take loan because of easy payment, 26% because of

reasonable rate of interest, 16% because of more scheme, 12% because of other
reason.
3: Range of amount people prefer.
Loan Amount No. of No. of
respondent respondent
Less than 1,00,000 4 8%
Between 1,00,000 to 5,00,000 7 14%
Between 5,00,000 to 10,00,000 19 38%
More than 10,00,000 20 40%

AMOUNT OF LOAN PREFER MOST

8%
14% LESS THAN 1,00,000
40%
FROM 1,00,000 TO 5,00,000
FROM 5,00,000 TO 10,00,000
MORE THAN 10,00,000
38%

INTERPRETATION: 8% prefer less than 100000, 14% prefer 100000 to

500000, 38% prefer 500000 to 1000000 and 40% more than 1000000.
4: Satisfaction of the customers with the amount and period of
installments
No. of respondent Percentage (%)
Yes 34 68%
No 6 12%
Cant say 10 20%

SATISFACTION OF CUSTOMER WITH AMOUNT

AND PERIOD OF INSTALLEMENT

20%

12%

68%

YES NO CAN'T SAY

INTERPRETATION: 68% people say yes, 20% say no and 12% say
no idea.
 5: Preferable term of loan.

Term of loan No. of respondent Percentage (%)

Less than 2 year 8 16%
2 to 5 year 10 20%
More than 5 year 32 64%

PREFERABLE TERM OF LOAN

16%

20%

64%

LESS THAN 2 YEAR 2 TO 5 YEAR MORE THAN 5 YEAR

INTERPRETATION: 64% prefer more than 5 year, 20% prefer 2 to 5 year

and 12 % prefer less than 2 year.
6: Is the staff of KCC bank is co-operative?

Category No. of respondents Percentage

Yes 34 68%
No 11 22%
No idea 5 10%

PERCENTAGE OF RESPONDENT

68%
PERCENTAGE OF RESPONDENT
% OF RESPONDENT

22%
10%

YES NO NO IDEA

CATEGORY

Interpretation From above response it can be seen that.

68% respondents believe that staff of KCC bank is co-operative.
22% respondents believe that staff of KCC bank is not co-operative.
10% respondents have no idea
7: Average time taken for processing of loan.
Avg. time for processing of No. of respondent Percentage
loan

Less than 10 days 30 60%

From 10 to 20 days 13 26%
More than 20 days 7 14%

Avg. time for processing of loan taken

60%

50%
% OF RESPONDENT

40%
60%
30%

20%
26%
10% 14%

0%
LESS THAN 10 FROM 10 TO 20 MORE THAN 20
DAYS DAYS DAYS
NO. OF DAYS TAKEN

INTERPRETATION: 60% respondent Says that avg. time taken for

processing of loan is less than 10 days, 26% says from 10 to 20 days and
14% says that more than 20 days.
8: Customer ranking for services of bank
Ranking of customer No. of respondent Percentage
Excellent 12 24%
Good 26 52%
Average 12 24%
Poor 1 2%

CUSTOMER RNKING FOR SEVICES OF BANK

2%

24%
24%

53%

EXCELLENT GOOD AVG. POOR

INTERPRETATION: 53% Respondent says customer services are

good, 24% says it is excellent and another 24% says it is avg. 2% says it
is poor.
9. Customers who would like to refer the co-op. banks to their friends
and relatives.
Bank refer to others No. of respondent Percentage (%)
Always 39 78%
Sometime 9 18%
Never 2 4%

% of customers of who like to refer KCCB to their

friends
% OF RESPONDENT

80%
60%
40%
20%
0%
Always Sometime Never
CUSTOMERS WHO LIKE TO REFER BANK TO OTHER

INTERPRETATION: 78% of the respondents would like to refer the bank to

their friends and relatives which shows that they are satisfied from the services
and lending practices of the bank.
5.1 Limitation of study:

Every work has its own limitation. Limitations are extent to which the
process should not exceed. Limitations of this project are:

1. The study is based on the data of past three or four years only.

2. The data for study mainly based on a single branch bank.

3. The time period of the research was limited.

4. Mindset of people may vary depending upon their age, gender, income
etc.
5. Getting appointment from the concern person was very difficult.
6. People mind set about the survey was obstacles in acquiring complete
7. Respondents were very busy in their schedule. So it was very time
consuming for information & positive interaction, them to answer all the
questions properly.
5.2 CONCIUSION:

From this project report we concluded following points:

1. Majority (26% as per the study) of the respondent were having housing loan
from this bank.
2. Most (64% as per the study) of the people prefer to take long term loan which
is more than 5 years.
3. There is a very simple procedure followed by bank for loan.
4 Easy repayment and less formalities are the main factors determining
customers selection of loans.
5 Quality of services provided by the staff is satisfactory because bank is catering
to a small segment only and the customers are properly dealt with.
6. Customers are satisfied with the mode of repayment of installments.
7. Average time for the processing of loan is less. i.e. approx. 10 days.
5.3 SUGGESTIONS:

1. The bank should provide life time valid ATM card to all its customers.
2. The bank should plan to introduce new schemes for attracting new
customers and satisfying the present ones.

3. The bank should plan for expansion of branches.

4. The bank should improve the customer services of the bank to a

better extent.

5. Make people understand about the various benefits of its products.

 Annexure-1
Bibliography

1. Andrew Campbell (2007), "Bank insolvency and the problem of

nonperforming loans", Journal of Banking Regulation, 25-45.

2. KC Shekhar and Lekshmy Shekhar (2007), Banking theory and

practice, Nineteenth edition, reprint 2007, Vikas publishing house Pvt.
ltd. (India), Chapter: 16.

WEB REFERENCES

http:www.kccb.com

www.ijsrp.org

www.programmer2programmer.net
 Annexure-2
Questionnaire
1. QUESTIONNAIRE

Dear Sir/Madam,
Name: ..
Address: ..
Contact No :( O) (M)
City: ...............Pin: .State:

I am a student of GOVT. COLLEGE DHARMSHALA presently doing a

project on LOAN AND ADVANCES OFFERED BY KCCB. I request you to
kindly fill the questionnaire below.

1. Your Age: ____________________

2. Education Qualification.
Undergraduate
Graduate
Postgraduate
3. Occupation.
1. Business
2. Profession
3. Service
4. Student
4. Your annual household income.
Less than 1 lack
Between 1 to 5 lack
Between 5 to 8 lack
More than 8 lack
5. In which bank do you have account?
KCCB
Others
6. Do you want to open a savings account with KCC Bank?
yes
No
8. What promoted you to take loan from KCCB?
Reasonable rate of interest
More schemes
Easy repayment
Any other
9. Is the staff of KCC bank is co-operative?
Yes
No
10. Do you think that KCC bank provides innovative products and superior
services?
Yes
No
11. Are you aware of different terms and conditions which are very much essential
to maintain an account at KCC Bank?
Yes
No
12. Are you satisfied with KCCB services offered by?
Yes
No
13. Are you satisfied with amount of loan of period of installment?
Yes
No
14. Are you aware of that KCC Bank provide you free phone banking & net banking
services.
If you open a new savings account with KCC bank?
yes
No
15. Give ranking for the services of bank?

Excellent
Good
Average
Poor

Date:
Place: Signature
Thank You
(55)