Chapter 1

Introduction
The division of retail banking that deals with lending money to consumers. This includes a wide
variety of loans, including credit cards, mortgage loans, and auto loans, and can also be used
to refer to loans taken out at either the prime rate or the subprime rate.

The term consumer finance refers to the activities involved in granting credit to consumers to enable
them processing to acquire goods meant for every day. It is also known as credit merchandising,
deferred payments, credit buying, hire purchase, pay as you earn scheme and instalment credit.

The business procedure through which the consumers purchase semi durable goods other than real
estate in order to obtain a series of payments extending over the period of 3 months to 5 years.

1.1 Selection and relevance of the problem

1. The consumer are affected to paid high rate of interest.

2. The consumer finance facilities are not provide better to the ICICI Bank.

3. The consumer not paid to monthly instalment then interest rate are increases.

4. The ICICI Bank should be charge more fees to the facilities compare than other bank.

1.2 Historical background of the problem

The consumer finance plays an important role in the mass production and distribution of consumer
durables such as motors cars, refrigerators, TV sets, typewriters, sewing machines electrical
appliance and many other goods.

1. The consumer are faced the procedure for the loan.

2. The consumer finance facilities are ICICI Bank plays more services.

3. The illiterate people are effected to getting a loan.

4. The ICICI Bank should be strictly follow procedure to the consumer finance.

1
1.3 Brief profile of the study area

The study uses a multi-method approach, survey based on the opinion of the customers for banking
industry in India. In order to conduct this study. I have surveyed 60 customers of SBI a public
sector bank. The surveys have been conducted at the various branches of these banks and various
other localities of Agra region. It is pointed out that multi-methods allow different approach for
different research purposes, since each method has its strengths and weaknesses.

Research is based on descriptive analysis. The secondary data was collected from the various
websites and magazines. Primary data was collected from the customers of SBI bank through direct
interview and questionnaire.

1.4 Meaning of consumer finance

The term consumer finance refers to the activities involved in granting credit to consumers to enable
them processing to acquire goods meant for every day. It is also known as credit merchandising,
deferred payments, credit buying, hire purchase, pay as you earn scheme and instalment credit.

1.5 Definition of consumer finance

According to E. R. A. Seligmon, “the term consumer credit to a transfer of wealth, the payment of
which is deferred in whole or part, to future and is liquidated piecemeal or in successive fractions
under a plan agreed upon at the time of transfer.”

The division of retail banking that deals with lending money to consumers. This includes a wide
variety of loans, including credit cards, mortgage loans, and auto loans, and can also be used
to refer to loans taken out at either the prime rate or the subprime rate.

1.6 Characteristics of consumer finance

1. Realization of Dreams - consumer credit is a boon for a consumer who can enjoy the
possession of goods without paying for them immediately.
2. Promoting Economic Development – The higher facilities of consumer finance
effects the higher level of finance, investment and employment. It creates demand in the
market for the products, which in result industrial activities increases.
3. Production in Inflation situation – when in country inflation is one unchanged
situation, then consumer finance helps to face this situation.

2
4. National Importance – As due to the consumer finance, the sales increases,
production increases so raw material and finished goods turnover runs smoothly.
5. Meeting Emergency – Consumer credit is useful in meeting emergencies, such as
illness, accident and death, which involved unexpected expenses.
6. Maximization of Revenue – Consumer credit facilities speedy disposal of goods,
which would have remained unsold in the absence of a credit facility to consumer
7. Large scale production – As the sale increases, so the production also increases. In
that context the fixed cost per unit of production decreases at its best. So the cost gets
reduced which further increases sale.
8. Exportation – Credit sale in deferred nature is a boon to small scale industries and
produces. It enhances the sale of products in foreign markets. The way of exportable
surplus opens for scale industries.
9. Enjoying possession – An important benefit of consumer credit is that it allows people
to enjoy the possession of goods without having to pay for them immediately.
10. Enhance Living standards – The facility of credit enhances the living standards. As
it gives the facility to reply in easy instalments so customer can budget its expenses in an
optimum manner and from the saving they can pay instalments.
11. Effective Stock Management – when consumers get finance, then the purchasing
power increases. Due to this reason the sales increases. In result the quick disposal of
surplus stock takes place.
12.Convenient Mode – Consumer credit, through the open account system, offers a
convenient mode of acquiring customer durables.
13. Compulsory Saving – Consumer credit allows for a mechanism of compulsory saving.
This has the effect of introducing people into using their income more wisely.
14. Accelerates Industrial Investment – Consumer credit accelerates investments in
the consumer durable industry, ultimately giving rise to growing level of incomes and
employments.

3
 Chapter 2

Research methodology

2.1 Objective of Consumer Finance

The consumer finance objective are as follows :
1. Eligibility – The basis eligibility for consumer finance is the income of the individual consumer
and the nature of employment. The EMI are worked out based on the number of instalments. In
addition, the tenure of employment of the consumer finance.
2. Guarantee – Usually financiers insist on guarantee for the credit availed by the consumer.
3. Tenure – Consumer finance is granted for a short periods of up to five years.
4. Interest Rate – The effective rate of interest for consumer finance is much higher than the rates
applicable to business finance. This is because, the loans are granted based simply on the personal
integrity of the consumer.

5. Other charges – In addition to the rate of interest, finance companies also charge documentation
fees, processing fees, management fees, examination fees, services charges, brokerage, collection
costs, etc.

6. Mode of Payment – In the case of individual loans, payments are usually collected in advance
in the form of post-dated cheques. In the case of institutional financing, there is an arrangement
for the deduction of instalments from the salary of the employee.

7. Credit Evaluation – A verification of the details furnished by the consumer is carried out in
order to ascertain the validity of the statement and the credit standing of the consumer.

8. Pricing – The pricing of consumer credit depends on the extent of facility offered by the
financier. The components of the price are a risk-free rate of interest assuming no probability of
default-risk premium, administration expenses etc.

2.2 Hypothesis

Null Hypotheses H0

Alternative Hypothesis H1

4
1. The consumer get excellent facilities in ICICI Bank.

H0: The consumer not get excellent facilities in ICICI Bank.

H1: The consumer get excellent facilities in ICICI Bank.

2. The consumer are satisfied to interest rate given by ICICI Bank?

H0: The consumer are not satisfied to interest rate given by ICICI Bank?

H1: The consumer are satisfied to interest rate given by ICICI Bank?

3. The consumer are easy to get the loan.

H0: The consumer not are easy to get the loan.

H1: The consumer are easy to get the loan.

2.3 Scope of the study

1. A popular form of consumer financing in India is instalment credit.

2. Deals and finance companies are directly involved in this type of consumer financing

3. When a large number of consumers are financed, institutional funding is involved.

4. Consumer financing in India covers a wide range of products, such as cars, TVs, washing
machines, refrigerators, geysers, air – conditioners, computers, etc.

5. The products covered possess some distinct features such as the specific identifiability,
durability, substantiality, serviceability and reparability of the products.

2.4 Limitation of the study

1. Artificial boom – As the consumer finance increases the buying capacity but ultimately if retune
of finance is not done then an artificial boom creates. The artificial boom creates an artificial
prosperity in economy.

2. Bad debts risk – As the consumer finance provided to buy goods or to fulfil the wishes but
there can be a big chance of getting default in payment which in result increases bad debt.

5
3. Costly credit – Though the consumer finance gives easy buying hand but it also brings a severe
consequence of costliness of credit. It is because the rate of interest is high comparing to paper rate
interest. Moreover the costs of goods are much higher in credit system comparing cash system.

4. Economic instability – Indiscriminate and uncontrolled consumer finance can lead to economic
instability. It can increases further inflation and leads to over buying and mortgage of further
income.

5. Insolvency – Credit facility forces people to mortgage a huge portion of their future income.
This may lead to insolvency situation and bad debt can rise out of it. This insolvency can ruin the
social image of the person.

6. Risk to traders – Consumer finance increases considerable risk to traders. Like in hire purchase
finance, although the seller enjoys the facility of repossession of goods if full amount of
instalments are not paid, and the article cannot be sold at full price that would be sufficient to pay
for the remaining instalments.

7. Thoughtless buying – Consumer finance is very attractive. It tempts people to buy goods
indiscriminately. The temptation becomes the need of people. So, the danger lies in acquiring the
goods even it is not necessary to buy.

2.5 Significance of the study

1. Cash Loan – It takes the form of credit being extended in the form of cash consumers resort
to this plan in order to consolidate the existing debts into one lumps sum, or for the purpose of
purchasing merchandise or services.

2. Credit Cards – Credit cards are emerging as the most popular mode of consumer finance
and slowly replacing paper money.

3. Instalment Account – A most popular mode of consumer finance, the instalment credit, is
more a sales promotion exercise for dealers.

4. Open Account – Open account is a method of consumer financing where by the retailer
allows the customer to make any number of purchase during a month, not exceeding a certain
value.

6
5. Option Plan – Under this plan, a customer has the option of paying the amount mentioned
in the statement of account either in full or in part, and thus having balance brought forward.

6. Revolving Account – This is a type of account, which allows a customer the facility of
making purchases during a month and making payments thereof on a deferred payment basis by
easy monthly instalment.

2.6 Selection of the problem

The consumer should be stand for your right because bank charge sometime more amount.

The consumer pay monthly instalment and pay more amount of instalment that the EMI interest
rate will be reduce.

The consumer should be select right type of loan.

The consumer should be not grant any securities in long time.

2.7 Sample Size:

Our sample size was 60.who fulfill their basis criteria with Consumer finance.

2.8 Data Collection:

Appropriately designed questionnaire to facilitate surveys with simple standard questionnaire were
used to collect data.

2.9 Techniques and tools to be used

The techniques uses a multi-method approach, survey based on the opinion of the customers for
Consumer finance. In order to conduct this study.

I have surveyed 60 customers of using internet banking facilities. The surveys have been conducted
at the various other localities.

It is techniques that multi-methods allow different approach for different research purposes, since
each method has its strengths and weaknesses. Research is based on descriptive analysis.

The secondary data was collected from the various websites and books.

7
Primary data was collected from the customers of internet bank through direct interview and
questionnaire.

2.10 Tabulation of data

Location-City Gender Age

Male 30 20-30 3
Kalyan east
Female 6 30-40 8

40-50 16
50 or above 7
Total 36 Total 34
Male 17 20-30 3
Kalyan west
Female 7 30-40 7
40-50 10
50 or above 6

Total 24 Total 26

2.11 Techniques and tools to be used

The techniques uses a multi-method approach, survey based on the opinion of the customers for
banking industry in India. In order to conduct this study.

I have surveyed 60 customers of ICICI a public sector bank. The surveys have been conducted at
the 2 city kalyan east and kalyan west of ICICI bank and various other localities of Agra region.

It is techniques that multi-methods allow different approach for different research purposes, since
each method has its strengths and weaknesses. Research is based on descriptive analysis.

The secondary data was collected from the various websites and books.

Primary data was collected from the customers of ICICI bank through direct interview and
questionnaire.

8
2.12 Data collection

Sr. Question Total Yes No % of Yes % of No

Regarding Response
No. Response Response Response Response

1 Question No.8 60 58 2 96.67 3.33

2 Question No.9 60 28 31 48.33 51.67

3 Question No.16 60 51 9 85 15

4 Question No.18 60 46 14 76.67 23.33

5 Question No.24 60 0 60 0 100

6 Question No.25 60 51 9 85 15

Male Female Male% Female%

7 Question No.2 60 47 13 78.33 21.67

Easy Difficult Easy% Difficult%

8 Question No.11 60 36 24 60 40

Convenient Lengthy Convenient % Lengthy %

9 Question No.11 60 40 20 66.67 33.33

Electronic form Physical form Electronic Physical form%

form%

10 Question No.20 60 54 6 90 10

20-30 30-40 40-50 50 above

11 Question No.1 60 6 15 26 13

Under graduation Post-graduation Professional Any other

graduation

12 Question No.3 60 15 36 5 3 1

Business Service Self- Employed Profession Any other

9
13 Question No.4 60 23 12 13 2 10

0-2 3-4 5-6 7 or above

14 Question No.5 60 13 40 6 1

Unmarried married Divorce

15 Question No.6 60 11 49 0

50,000-1 Lakh 1 Lakh-3 Lakh 3 Lakh-5 Lakh 5 Lakh or above

16 Question No.7 60 30 23 3 4

500 Rupees 750 Rupees 1000 Rupees 1000 or above

17 Question No.10 60 33 23 4 0

PAN Bank statement Address Proof Adhar card Two color photo

18 Question No.12 222 55 14 19 74 60

Own decision friend Family member advertisement Any other

19 Question No.13 60 22 26 2 9 1

Daily Once a week Once a month Occasionally

20 Question No.14 60 17 29 11 3

Less than 3years 3years to 6yeara 6 years or above

21 Question No.15 60 31 25 4

Very interested interested Neither or nor Disinterested Highly

interested Disinterested

22 Question No.19 60 30 19 6 5 0

Less than 3years 3years to 5years 5 years to 7years 7 years or above

23 Question No.21 60 35 20 2 3

Very interested interested Neither or nor Disinterested Highly

interested
Disinterested

24 Question No.22 60 29 20 6 5 0

10
 700 800-1000 1000-1500 1500 or above

25 Question No.23 60 52 7 0 1

11
 Chapter.3

Literature Review

Book 1

Indian Banking

Author- R.K Uppal

Book 2

Financial services

Published – Vipul prakashan

Part 2 semester IV M.com banking and finance for regular student.

Book 3

Innovative Financial Services

Published – Vipul prakashan

Ty Bechlor of business management (BMS) Semester IV

Book 4

Indian banking system

Author – Ramesh Kapoor

Publication – Mahamaya Publishing house

12
LITERATURE REVIEW

Financial Institutions and Markets by L. M. Bhole and Jitendra Mahakud, Fifth ed.:

The book focused on „Financial Institutions and Markets: Structure, Growth and Innovations,‟ the book
elucidated IRDA policy reforms, Indian Financial System since 2002 and insurance sector reforms. The
aggregate view of Indian insurance is presented is three developmental phases since 1818. Policy
development, structure and various types of insurance plans are defined with evaluation process. The
growth of financial services, financial sector reforms and role of regulators in financial reforms has been
discussed in this book.

A large volume of literature is available about various aspects relating to the use of modern
techniques in banking service delivery system practiced around the world. Some of these studies
are comprehensive while the depth and coverage of some studies are narrow. The methodology
followed in some of the studies are most scientific while in some others it is not that much
scientific. The researcher has reviewed most of the available studies in this area. In this chapter, a
detailed review of the studies conducted about the technology used in banking in India and abroad
is described. Section 2.2 makes a review of the literature in the development of e-banking delivery
channels. In section 2.3, relevant literature related to the awareness and adoption of e-banking is
reviewed. Section 2.4 deals with the literature review of factors influencing the adoption of ATMs.
Section 2.5 deals with that of internet banking, section 2.6 with that of credit cards and section 2.7
deals with that of mobile banking. Finally, in section 2.8 a detailed review of the available literature
related to user's experience and satisfaction of e-banking is given. From this review, research gap
is identified and the relevance of the present study is drawn. Conclusion is given in section

DEVELOPMENT OF E-BANKING DELIVERY CHANNELS

Consumers of banking services are becoming more demanding in terms of the level of service they
expect and how they are able to access services when required. A general increase in organizations'
customer orientation, owing to increased competition, witnessed in many markets, has also
occurred in financial services, further heightening customer expectations. Customers are
demanding greater convenience and accessibility as reflected in longer branch opening hours and
an increase in the choice of delivery mechanisms. There has been a drastic change in lifestyles of

13
customers in recent years as individuals have become more affluent and spent more on leisure
activities. This has led to a decrease in "disposable time" to dedicate to such things as financial
matters. Changing work patterns may also add to an increase in time pressure for many individuals.
Consumers have therefore demanded greater convenience and access. This does not mean that the
branch network does not have an important role to play. Marketing aims to maintain and increase
consumer use of goods or services (Kelley and Thibaut (1 978)). Relationship duration and
interaction frequency have been found to be good predictors of relationship development
(Levinthal and Fichrnan (1988)).

AWARENESS AND ADOPTION OF E-BANKING DELIVERY CHANNELS

Adoption is the acceptance and continued use of a product, service, or idea. According to Rogers
and Shoemaker (1971), consumers go through a process of knowledge, persuasion, decision and
confirmation before they are ready to adopt a product or service. The adoption or rejection of an
innovation begins when the consumer becomes aware of the product. According to Fishbein and
Ajzen (1975)

FACTORS INFLUENCING THE ADOPTION OF CREDIT CARDS

In today's modern economy, credit cards are being widely used. India too has been rapidly
venturing into the plastic money business i.e., the credit card business. In 195 1, the first bank
credit card appeared in New York's Franklin National bank for loan customers. The idea, though,
had already been experimented in various forms much before. In India, Andhra bank was the first
to introduce credit cards in 1981.

Research has shown that satisfaction influences buyers' loyalty (Hennig-Thurau et.al. (2002)).
Perceived usefulness affects the level of satisfaction, which affects the expectations of future
benefits, thereby influencing information systems usage (Rai et.al. (2002)). With reference to the
type of the channel, Joseph and Stone (2003) argued that the ability to deliver services via
technology appears to be correlated with high satisfaction with services deemed most important to
customers. Consumers learn about goods and services to a large extent by the development of
experiences from trial and error. Consumer experiences are a major determinant of consumer
choice and preferences (Foxall (2003)). Turning to a technology context of use, the frequency of
use has been found to capture the consumer's use of a technology. Generally, the dimensions of

14
satisfaction that are associated with a service include service quality, product quality, price, and
location (Skogland and Siguan (2004)). Buyers' level of multichannel satisfaction with their bank
is positively associated with their Internet banking continuance. If buyers continue using the
Internet with improved results, the confirmation of better than expected results can influence the
perceived usefulness in a positive direction.

Chapter 4

15
 Data Analysis, Interpretation and presentation

Q1 Gender

Particular No. of respondents Percentage %

Male 32 53.33%
Female 28 46.67%
Transgender 0 0%
Total 60 100%

Gender
0%

47%
Male
53%
Female
Transgender

Analysis

Out of 100 respondents surveyed, (53.33%) were Males, the (46.67%) were Females and
transgender have remaining (0%). Thus, the sample was Male dominated.

16
Q.2 Age

Particular No. of respondents Percentage %

20-30 31 51.67%
31-40 11 18.33%
41-50 9 15%
Above 50 9 15%
Total 60 100.00%

Age

15%

15% 20-30
52%
31-40
41-50
18%
Above 50

Analysis:

The second characteristics of the respondents that is taken into age of the respondent. It can be
seem from the table that almost half (51.67%) respondents belong to the age group of 20 to 30
years. Whereas the next age group in term of number was 31 to 40 years to which (18.33%) of the
respondents belonged. (15%) of the respondents were 41 to 50 of the age group. (15%) of the
respondents belonged to above 50 years.

Interpretation: From the above data we conclude that most of our survey respondents are
belonged to the 20 to 30 years (51.67%).

17
Q.3 Education qualification

Particular No. of respondents Percentage %

S.S.C 12 20%
H.S.C 11 18.33%
Graduation 11 18.33%
Post-graduation 10 16.67%
Others 16 26.67%
Total 60 100%

Education Qualification

20% S.S.C
27%
H.S.C
18%
17% Graduation
18% Post-graduation
Others

Analysis:

Education is one of the most important characteristics of the customers because of the perceptional,
awareness and behavior of the customers depend largely on his/her educational qualifications.
Among the selected respondents, a majority (26.67%) were other qualifications like Diploma, etc.

While (20%) of respondents studies up to S.S.C level and (18.33%) were educated up to H.S.C
and (18.33%) of respondents are Graduates, and (16.67%) of the respondents studies Postgraduates

Interpretation:

From the above data we conclude that most of our survey respondents are belonged to majority of
others qualifications like Diploma etc. (26.67%).

18
Q.4 Occupation

Particular No. of respondents Percentage %

Services 15 25%
Business 11 18.33%
Professional 5 8.33%
Govt. employed 5 8.33%
Others 24 40%
Total 60 100%

Occupation

25%
40% Services
Business

18% Professional
Govt. employed
8% 9%
Others

Analysis:

Maximum number of customers i.e. (40%) belonged to others, (25%) of the customers are the
Services Persons and (18.33%) of customers are Businessmen, (8.33%) are Professionals and
(8.33%) Customers are Government Employed.

Interpretation:

From the above data we conclude that most of our survey respondents are (40%) belonged to the
Others Customers.

19
Q.5 Marital Status

Particular No. of respondents Percentage %

Married 40 66.67%
Unmarried/Single 20 33.33%
Total 60 100.00%

Marital Status

33%

Married
67% Unmarried/Single

Analysis:

Out of 100 respondents surveyed, (66.67%) were married and the remaining (33.33%) were
unmarried/ single.

Interpretation:

It can be clearly notice from above data that majority of respondents are married i.e. n=40 (67%)
and Single n=20 (33%) of whole sample population.

20
Q.6 Monthly Income

Particular No. of respondents Percentage %

Below 10,000 19 31.67%
11,000-25,000 21 35%
26,000-50,000 8 13.33%
51,000-1,00,000 8 13.33%
Above 1,oo,ooo 4 6.67%
Total 60 100%

Monthly Income

7%
13% 32% Below 10,000

13% 11,000-25,000
26,000-50,000

35% 51,000-1,00,000
Above 1,oo,ooo

Analysis:

Monthly Income of the respondents is the most important factor determining there demand for
personal loan. The given information on the monthly income of the respondents in which the
respondents are divided into five income groups. It is found that the maximum no. of respondents
(35%) were in the income group of 11000 to 25000 and the next important income group was less
than (31.67%) of income group below 10000. There were (13.33%) respondents earning more than
26000 to 50000 and the (13.33%) of respondents are earning 51000 to 100000. Were (6.67%) of
respondents are earning above 100000.

Interpretation: From the above data we conclude that most of our survey respondents are
belonged to (35%) of income level 11000 to 25000.

21
Q.7 Number of dependent in family

Particular No. Of respondents Percentage %

0-2 person 14 23.33%
2-4 person 30 50%
4-8 person 14 23.33%
8 and more 2 3.34%
Total 60 100.00%

No. of members dependend in family

4%

23% 23%
0-2 PERSON
2-4 PERSON
4-8 PERSON
50% 8 AND MORE

Analysis:

In the above chart it shows that 0 to 2 persons respondents are no=14 (23.33%), 2 to 4 persons
respondents are no=30 (50%), 4 to 8 persons respondents are no=14 (23.33%), 8 and more
respondents are no=2 (3.34%).

Interpretation:

From the above data we conclude that most of our survey respondents are belonged to no. of
dependent in family 2 to 4 respondents are (50%).

22
Q.8 Do you have a bank account in ICICI?

Particular No. of respondents Percentage %

Yes 58 96.67%
No 2 3.33%
Total 60 100%

Do you have a Bank Account

3%

Yes
No
97%

Analysis:

From the above data it shows that the no. of individual have accounts are 58 and which does not have are
2.

Interpretation:

Out of 100 respondents surveyed, (n=58) no of respondents (96.67%), (n=2) no of respondents (3.33%)

23
Q.9 which type of account does you has in the bank?

Particular No. of respondents Percentage %

Saving account 40 66.67%
Fixed account 11 18.33%
Current accounts 4 6.67%
Recurring account 5 8.33%
Total 60 100%

Types of Account

8%
7%

18% Saving account

Fixed account
67% Current accounts
Recurring account

Analysis:

From the above graph it shows that the Saving Account have (n=40) no. of respondents are (66.67%), Fixed
Account have (n=11) no. of respondents are (18.33%), Current Account have (n=4) no. of respondents are
(6.67%) Recurring Account have (n=5) no. of respondents are (8.33%).

Interpretation:

From the above data we conclude that the most survey are respondents are belong to the Saving Account
(n=40) no of respondents are (66.67%).

24
Q10 which are the different types of loan you are aware of ICICI Bank?

Particular No. of respondents Percentage %

Personal Loan 34 56.67%
Home Loan 18 30%
Education Loan 3 5%
Others 5 8.33%
Total 60 100%

0%

8%
5%

30% 2
57%
3
4
5

Analysis:

From the above graph it shows that the Personal loan have (n=43) no. of respondents are (56.67%), Home
loan prefers have (n=18) no. of respondents are (30%), Education loan have (n=3) no. of respondents are
(5%) and the other types of loan have (n=5) no. of respondents are (8.33%).

Interpretation:

From the above data we conclude that the most survey are respondents are belong to the personal loan are
(n=34) no of respondents are (56.67%).

25
Q11 which types of product you prefer from ICICI Bank?

Particular No. of respondents Percentage %

Unsecured finance 0 0%
Secure finance 5 8.33%
Revolving Credit 1 1.66%
Fixed Credit 0 0
Cash Loan 11 18.33%
Other 43 71.66%
Total 60 100%

Types of product
0% 2%
0% CREDIT CARD PRE-PAYMENT
8%
18% MARRIAGE
EDUCATION
72% TRAVELLING
PERSONAL
OTHER

Analysis: It is important to know the purpose of taking the personal loan by the respondents.
During the survey the customers were asked to reveal the reason for availing the personal loan in
order to preferences were the others (n=43) no. of respondents (71.67%).Credit card prepayment
(n=0) no. of respondents (0%). Marriage (n=5) no. of respondents (8.33%).Education (n=1) no of
respondents (1.67%).Travelling (n=0) no. of respondents (0%). Personal (n=11) no.of respondents
(18.38%).

Interpretation: From the above data we conclude that the most survey are respondents are
belong to the others (n=43) respondents are (71.67%).

26
Q12 what is your tenure of loan?

Particular No. of respondents Percentage %

Less than 1 year 14 23.34%
1-3 years 33 55%
3-5 years 8 13.33%
More than 5 years 5 8.33%
Total 60 100.00%

Tenure
8% 23%
14%
LESS THAN 1 YEAR
1-3 YEARS
3-5 YEARS
55%
MORE THAN 5 YEARS

Analysis:

From the above data it shows that out of 33 no. of respondents are (55%) for 1 to 3 years. out of
14 no. of respondents are (23.34%) for less than 1 year. out of 8 no. of respondents are (13.33%)
for 3 to 5 years. out of 5 no. of respondents are (8.33%) for more than 5 years.

Interpretation:

From the above graph it is clear that majority of the respondents are part of the SBI Bank from 1to
3 years i.e. (55%) of the respondents.

27
Q13 what is the interest rate of the loan taken by ICICI Bank?

Particular No. Of respondents Percentage %

10-12% 25 41.67%
12-14% 26 43.33%
14-16% 5 8.33%
Above 16% 4 6.67%
Total 60 100.00%

Interest Rate

8% 7%
42%
10-12%
12-14%

43% 14-16%
ABOVE 16%

Analysis:

In the above we can see the interest rate of the personal loan SBI bank. The interest rate of 10 to
12% the no. Of respondents are 25 (41.67%). And the 12 to 14% no. Of respondents are 26
(43.33%). And the interest rate 14 to 16% no. Of respondents are 5 (8.33%). This, the interest
rate above 16% of the no. Of respondents are 4 (6.67%).

Interpretation:

From the above data we conclude that most of our survey rate of interest 12 to 14% of
respondents are 26 (43.33%).

28
Q14 what is your loan principal amount?

Particular No. Of respondents Percentage %

25,000-1,00,000 28 46.67%
1,00,000-5,00,000 7 30%
5,00,000-10,00,000 18 11.67%
10,00,000-15,00,000 7 11.66%
Total 60 100.00%

Principle Amount

12%

46%
25,000-1,00,000
30%
1,00,000-5,00,000
5,00,000-10,00,000

12% 10,00,000-15,00,000

Analysis:

It will be instructive to know about the amounts of loan the customers had loan principal amount.
As shown in the table, out of 100 respondents almost 28 had applied for the loan amount between
25000 -100000 (46.67%). And the no. Of respondents 18 loan amount has 1 to 5 lakhs (30%).
This, the no of respondents 7 has 5 to 10 lakhs (11.67%). This, about 7 no. Of respondents are 10
to 15 lakhs (11.67%).

Interpretation: From the above data we conclude that most of our survey respondents are
25000 to 1, 00,000 (46.67%).

29
Q15 How much amount you re-pay in installment?

Particular No. Of respondents Percentage %

Less than 10,000 36 60%
10,000-30,000 10 16.66%
30,000-60,000 11 18.33%
60,000 ABOVE 3 5%
TOTAL 60 100%

Instalment

5%
18%

LESS THAN 10,000

10,000-30,000
17% 60%
30,000-60,000
60,000 ABOVE

From the above data we conclude that most of our survey respondents are 25000 to 1, 00,000
(46.67%).

30
Q16 Do you have a mortgage loan on the house property, property paper,
gold, etc.?

Particular No. of respondents Percentage %

YES 22 36.67%
NO 38 63.33%
Total 60 100.00%

Guarantee

37%

YES
63%
NO

Analysis:

From the above data it shows that the out of 100 respondents the no. of respondents 22 (36.67%) have
mortgage on loan and the remaining do not have mortgage on loan 38 (63.33%).

Interpretation: From the above data we conclude that most of our survey respondents are
38 (63.33%).

31
Q 17 What is the reason for applying loan from ICICI Bank?

Particular No. of respondents Percentage %

Services 19 31.67%
Rate of interest 8 13.33%
Reference 9 15%
Easy of accessibility 15 25%
Tenure 6 10%
Wide range of scheme 3 5%
Total 60 100.00%

Applying loan

10% 5%
32% SERVICES
RATE OF INTEREST
25%
REFERENCE
EASY OF ACCESSIBILITY
13%
15% TENURE
WIDE RANGE OF SCHEME

Analysis:

From the above data out of 100 respondents reason to take a personal loan. The no. of respondents
19 (31.67%) have services class, 8 (13.33%) have rate of interest, 9 (15%) has reference, 15 (25%)
easy of accessibility and the 6 (10%) has tenure, 3 (5%) wide range of scheme.

Interpretation:

From the above data we conclude that most of our survey respondents are 19 (31.67%).

32
Q18 which interest rate does you prefers?

Particular No. of respondents Percentage %

Fixed rate 48 80%
Floating rate 12 20%
Total 60 100%

Interest Rate

20%

FIXED RATE
FLOTING RATE
80%

Analysis:

From the above data out of 100 respondents are prefers fixed rate of interest 48(80%). And the
remaining 12 (20%) has prefers floating rate of interest.

Interpretation:

From the above data we conclude that most of our survey respondents are48 (80%).

33
Q19 How much duration taken by ICICI to section personal loan?

Particular No. of respondents Percentage %

7-10 days 10 17%
10-20 days 23 38%
20-30 days 17 28%
30 days above 10 16.66%
Total 60 100%

Duration

17% 17%

7-10 DAYS

28% 10-20 DAYS

38% 20-30 DAYS
30 DAYS ABOVE

Analysis: The duration taken by the SBI for sanctioning the loan is an important factor for the
consideration of customers. It also reflects the efficiency of the bank and the staff and stability of
the procedure for sanctioning the loan. The relevant data for personal loan. It may be seen from
this table that in as many as 23 cases the loan was sanctioned within 10 to 20 days and 10 cases
the time lag was 7 to 10 days and 17 cases the time 20 to 30 days. Only in 10 cases sanction took
more than a month.

Interpretation:

From the above data we conclude that most of our survey respondents are 23 (38.33%) no.of
respondents are duration taken by sanctioned personal loan 10 to 20 days.

34
Q20 How do you feel about processing charges charged by ICICI Bank?

Particular No. of respondents Percentage %

High 21 35%
Normal 20 33.33%
Low 19 31.67%
Total 60 100%

Charges

32% 35%

HIGH
NORMAL
LOW
33%

Analysis:

The processing charges by the SBI for out of 100 respondents are the no. of respondents has high processing
charges 21 (35%), normal charges 20 (33.33%) and the low charges to pay SBI 19 (31.67%).
Interpretation:

From the above data we conclude that most of our survey respondents are 21 (35%) has charges
high processing charges.

35
Q.21 how do you feel about interest rate of ICICI Bank?

Particular No. of respondents Percentage %

Very high 21 35%
High 9 15%
Moderate 20 33.33%
Low 10 16.67%
Total 60 100.00%

Interest Rate

17%
35%
VERY HIGH
HIGH
33% MODERATE
15% LOW

Analysis:

From the above data out of 100 respondents are feel very high rate of interest the no. of respondents
are 21 (35%), and the high interest rate is 9 (15%), moderate rate of interest are 20 (33.33%) and
the last low interest rate are 10 (16.67%).

Interpretation:

From the above data we conclude that most of our survey respondents are 21 (35%) has feels very
high interest rate.

36
Q.22 what do you think the procedure for getting loan by ICICI bank?

Particular No. of respondents Percentage %

Convenient/ easy 42 70%
Lengthy 18 30%
Total 60 100%

Procedure

30%

CONVENIENT/ EASY
70% LENGTHY

Analysis:

The above chart shows that majority of the respondents and the procedure to convenient/easy no.
Of respondents are 42 (70%) and the lengthy procedure to the no. Of respondents are 18 (30%).

Interpretation:

From the above data we conclude that most of our survey respondents are 42 (70%) respondents
are convenient/easy procedure.

37
Q23 Are you satisfied with ICICI Consumer finance facilities?

Particular No. of respondents Percentage %

Extremely satisfied 11 18.33%
Satisfied 39 65%
Dissatisfied 10 16.67%
Total 60 100.00%

satisfied

17% 18%

EXTRAMELY SATISFYED
SATISFIED
DISSATISFIED
65%

Analysis:

The above chart shows that majority of respondents are satisfied service provide by SBI personal
loan no. Of respondents are extremely satisfied with the no. Of respondents are 11 (18.33%). This,
the no. Of respondents are 10 (16.67%) dissatisfied.

Interpretation:

From the above data we conclude that most of our survey respondents are 39 (65%) are satisfied.

38
Q24 Do you think to suggest any improvement in quality of consumer finance
services?

Particular No. of respondents Percentage %

Yes 31 51.67%
No 29 48.33%
Total 60 100.00%

Suggetion

48%
52%
YES
NO

Analysis:

From the above data it shows that the out of 100 respondents the no. of respondents are 31
(51.67%) customers are in near future to be interested to take the personal loan and the remaining
29 (48.33%) has no would be interested to take personal.

Interpretation:

From the above data we conclude that most of our survey respondents are 31 (51.67%) are
interested to take in future personal loan.

39
Q25 Would you recommend loan form ICICI Bank?

Particular No. of respondents Percentage %

Yes 47 78.33%
No 13 21.67%
Total 60 100.00%

Recommend

22%

YES
NO
78%

Analysis:

From the above data it shows that the out of 100 respondents the no. of respondents are 47
(78.33%) customers are recommend to others to take a personal loan and the remaining 13
(21.67%) customers are not recommend to take a personal loan by SBI .

Interpretation:

From the above data we conclude that most of our survey respondents are 47 (78.33%) customers
are recommend to others.

40
 Chapter 5

Conclusions and suggestions

Conclusion

 Improper guidance, slow processing and bank statement are the major
problems faced by bank’s customers in getting consumer in getting
consumer loans improper assessment and consumer willingness to pay the
loan hidden charge.

 Customer satisfaction is not preferred narrow range of services by local banks.

 The consumer are paid high rate of interest to the ICICI Bank.
 The ICICI Bank provide more facilities compare than other banks.

41
Suggestions

As the consumer finance increases the buying capacity but ultimately if retune of finance is not
done then an artificial boom creates. The artificial boom creates an artificial prosperity in economy.

The Consumer credit is a boon for a consumer who can enjoy the possession of goods without paying for
them immediately.

The higher facilities of consumer finance effects the higher level of finance, investment and
employment. It creates demand in the market for the products, which in result industrial activities
increases. when in country inflation is one unchanged situation, then consumer finance helps to face
this situation.

42
 Appendix

Questionnaire

Dear Sir – madam

I miss Suneeta Damodar Mourya student of K.V Pendharar College, doing my

M.Com – Part II project. As a part of curriculum. I am conducting a survey an
“A study of Consumer Finance offered by ICICI Bank” resing in Kalyan city. I
request you to kindly give you valuable time to fill this Questionnaire. I assure you
that the data provided by you will be kept confidential.

Personal Details

1. Gender
a) Male b) Female

2. Age
a) 18 -30 years d) 51-60 years
b) 31-40 years e) 60 above
c) 41 – 50 years

3. Education qualification
a) S.S.C d) Post graduate
b) H.S.C e) Other
c) Graduation

43
 4. Occupation
a) Student d) Government employed
b) Business e) Self-employ
c) Service

5. Marital status
a) Married b) Unmarried

6. Monthly income
a) Below 10,000 c) 26,000 – 40,000
b) 10,000 - 25,000 d) 40,000 Above

7. Number of dependent in family

a) 0-2 c) 4-8
b) 2-4 d) 8 and more

Details of consumer Finance

8. Do you have a bank account in ICICI Bank?

a) Yes b) No

9. Which type of account do you have in the bank?

a) Saving account c) Current account
b) Fixed account d) Loan account

44
10.Which are the different types of loan you are aware of ICICI Bank?
a) Personal loan c) Education loan
b) Home loan d) Other

11.Which types of product you prefer from ICICI Bank?

a. Unsecure finance
b. Secure finance
c. Revolving credit
d. Fixed credit
e. Cash loan
f. Others
12.What is your tenure of loan?
a) 6 months
b) 1-5 years
c) 6-10 years
d) More than 10 years
13.Interest rate of the loan taken by ICICI Bank?
a. 5- 10%
b. 10-12%
c. 12-15%
d. Above 15%
14.What is your loan principal amount?
a. 25,000- 100,000
b. 1,00,000-5,00,000
c. 5,00,000-10,00,000

45
 d. 10,00,000-15,00,000
15.How much amount you re-pay in installment?
a. Less than 2,00,000
b. 3,00,000 – 5,00,000
c. 6,00,000- 9,00,000
d. 10,00,000 above
16.Do you have a mortgage loan on the house property, property paper,
gold, etc.
a. Yes
b. No

17.What is Reason for Appling loan by ICICI Bank?

a. Service d. Easy of accessibility

b. Rate of interest e. Tenure
c. Reference f. Wide range of scheme

18.Which interest rate does you prefers?

a. Flat rate
b. Floating rate
19.How much duration taken by ICICI to section personal loan?
a. 7-10 Days
b. 10-20 Days
c. 20-30 Days
d. 30 and above

46
20.How do you feel about rate of interes a loan from ICICI Bank?
a. Low c. High
b. Moderate d. Very high

21.What do you feel about the services providing by ICICI Bank?

a) Unsatisfied c) Good
b) Satisfied d) Excellent

22.What do you think the procedure for getting loan by ICICI bank?
a. Conveniet
b. Lengthy

23.Are you satisfied with consumer finance provide by ICICI Bank?

a. Satisfied c. Not satisfied
b. Extremely satisfied d. Dissatisfied

24.Do you think to suggest any improvement in quality of consumer finance

services?

a. Yes

b. No

47
25.Would you recommend loan form ICICI Bank?

a. Yes

b. No

48
 Bibliography

WWW.yourarticlelibary.com

WWW.Wikipedia.com

WWW.icici.co.in

WWW.consumerfinanceinfo.com

WWW.Investopedi.com

49