CONTENTS

S.NO
Chapter 1
1.1
1.2
1.3
Chapter 2
2.1
2.2
Chapter 3
3.1
Chapter 4
4.1
4.2
4.3
Chapter 5
5.1
5.2
5.3
Chapter 6
6.1
6.2
6.3
6.4
Chapter 7
7.1
7.2

TOPIC
introduction to banking industry in india
Overview
Nationalize banks in india
Private banks in india
Axis bank
About axis bank
Profile
Loans
Types of loan
Retail loans
Home loan
Personal loan
Educational loan
Comparison of loans
Comparison of home loans
Comparison of personal loans
Comparison of educational loans
Customer survey
Occupation of respondent
Types of loan
Distribution on the basis of sex
Distribution on the basis of age
Limitations and recommendations
Limitations
Recommendations

8.
9.

Glossary
References

VI. OBJECTIVE OF THE STUDY

The objective of the study is divided into two parts: Primary objective and
Secondary objective
Primary objective:- the main objective of the study is to find out the interest
rates, tenure, percentage of funding, eligibility to apply for loans etc.
Secondary objective:- the secondary objective of the study is to find out the
extent to which customer expectations match axis bank performance in retail
loan services.
This was done to help axis bank to recognize their faults in customer dealing.
As in this world customer satisfaction is more important than huge profits, so
customer satisfaction survey will help it in finding out its position.

VII. SOME COMMON TERMS USED IN THE STUDY :1.Rate of interest :- fixed rate of interest as the name suggests, is the rate that
remain fixed throughout the tenure of the loan. The rate doesnt normally changes,
till the full repayment of the loan. Floating rate is the rate is the rate which moves
upwards or downwards depending upon the market forces.
2.Processing fees: - a processing fees is stamp charges. It is charged on the loan
amount, when the loan amount is sanctioned. It starts from 0.5% and Goes till 5%.
3.Penality:- it is also known as pre-closure charges. If the repayment of loan is
done before the tenure, then penalty charges are changed from the customer of the
outstand loan.
4.tenure:-tenure is the duration/time for which loan is taken.
5.funding:- funding means max. percentage of loan to fund to the customer.
Generally a small amount of margin is kept with the bank, rest is given to the
customer.

6. Net interest income:- (NII) is the difference between revenues generated by

interest-bearing assets and the cost of servicing (interest-burdened) liabilities.
For banks, the assets typically include commercial and personal loans, mortgages,
construction loans and investment securities. The liabilities consist primarily of
customers' deposits. NII is the difference between (a) interest payments the bank
receives on loans outstanding and (b) interest payments the bank makes to
customers on their deposits.
4

NII = (interest payments on assets) (interest payments on liabilities)

7. Net profit:- In simplistic terms, net profit is the money left over after paying all
the expenses of an endeavor. In practice this can get very complex in large
organizations or endeavors.
Net profit= Gross profit - Pre-tax profit
8.Market capitalization:- Market capitalization/capitalisation (often market cap)
is a measurement of size of a business enterprise (corporation) equal to the share
price times

the

number

of shares

outstanding of

a public

company.

As

owning stock represents ownership of the company, including all its equity,
capitalization could represent the public opinion of a company's net worth and is a
determining factor in stock valuation. Likewise, the capitalization of stock
markets or economic regions may be compared to other economic indicators.
9.Assets:- In financial accounting, assets are economic resources. Anything
tangible or intangible that is capable of being owned or controlled to produce value
and that is held to have positive economic value is considered an asset.
Simplistically stated, assets represent ownership of value that can be converted into
cash (although cash itself is also considered an asset).

10.charges for the late payment of EMI :- If the borrower doesnt pay the EMI at
its due date,then he/she will charged with fines. This generally according to the
time for which the payment is delayed.

CHAPTER 1

INTRODUCTION OF BANKING INDUSTRY IN INDIA

BANKING IN INDIA
1.1 Overview

anking in India originated in the first decade of 18th century. The first banks
were The General Bank of India, which started in 1786, and Bank of

Hindustan, both of which are now defunct. The oldest bank in existence in India is
the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta
in June 1806. This was one of the three presidency banks, the other two being the
Bank of Bombay and the Bank of Madras. The presidency banks were established
under charters from the British East India Company. They merged in 1925 to form
the Imperial Bank of India, which, upon India's independence, became the State
Bank of India. For many years the Presidency banks acted as quasi-central banks,
as did their successors. The Reserve Bank of India formally took on the
responsibility of regulating the Indian banking sector from 1935. After India's
independence in 1947, the Reserve Bank was nationalized and given broader
powers.

RESERVE BANK OF INDIA

Central Bank and supreme monetary authority
Scheduled Banks
Cooperative

Non Scheduled Banks

Commercial

Private Sector Foreign Banks

Urban Cooperatives State CooperativesPublic Sector

Other Nationalized Banks

SBI & Associates
7 Regional Rural Banks

Early History

he first fully Indian owned bank was the Allahabad Bank, established in
1865. However, at the end of late-18th century, there were hardly any banks

in India in the modern sense of the term. The American Civil War stopped the
supply of cotton to Lancashire from the Confederate States. Promoters opened
banks to finance trading in Indian cotton. With large exposure to speculative
ventures, most of the banks opened in India during that period failed. The
depositors lost money and lost interest in keeping deposits with banks.
Subsequently, banking in India remained the exclusive domain of Europeans for
next several decades until the beginning of the 20th century. Foreign banks too
started to arrive, particularly in Calcutta, in the 1860s. The
Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another
in Bombay in 1862; branches in Madras and Pondichery, then a French colony,
followed. Calcutta was the most active trading port in India, mainly due to the
trade of the British Empire, and so became a banking centre.
The Bank of Bengal, which later became the State Bank of India.
Around the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian
Mutiny, and the social, industrial and other infrastructure had improved. Indians
had established small banks, most of which served particular ethnic and religious
communities.
The presidency banks dominated banking in India. There were also some exchange
banks and a number of Indian joint stock banks. All these banks operated in
8

different segments of the economy. The exchange banks, mostly owned by

Europeans, concentrated on financing foreign trade. Indian joint stock banks were
generally under capitalized and lacked the experience and maturity to compete
with the presidency and exchange banks. This segmentation let Lord Curzon to
observe, "In respect of banking it seems we are behind the times. We are like some
old fashioned sailing ship, divided by solid wooden bulkheads into separate and
cumbersome compartments."
By the 1900s, the market expanded with the establishment of banks such as Punjab
National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of
which were founded under private ownership. Punjab National Bank is the first
Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh
Majithia. The Swadeshi movement in particular inspired local businessmen and
political figures to found banks of and for the Indian community. A number of
banks established then have survived to the present such as Bank of India,
Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank
of India.
1.2 Nationalized banks in India

anking System in India is dominated by nationalized banks. The

nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi

the then prime minister. The major objective behind nationalization was to spread
banking infrastructure in rural areas and make available cheap finance to Indian
farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of
India (SBI) was the only public sector bank in India. SBI was nationalized in 1955
under the SBI Act of 1955. The second phase of nationalization of Indian banks
9

took place in the year 1980. Seven more banks were nationalized with deposits
over 200 crores.
List of Public Sector Banks in India is as follows
Allahabad Bank

State Bank of India (SBI)

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India s

Vijaya Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab and Sind Bank

Punjab National Bank

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

1.3 Private Banks in India

ll the banks in India were earlier private banks. They were founded in the
pre-independence era to cater to the banking needs of the people. But after

nationalization of banks in 1969 public sector banks came to occupy dominant role
in the banking structure. Private sector banking in India received a fillip in 1994
10

when Reserve Bank of India encouraged setting up of private banks as part of its
policy of liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector.
Private Banks have played a major role in the development of Indian banking
industry. They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and forced them
to become more competitive.
List of Private Sector Banks in India is as follows
Bank of Rajasthan

Bharat Overseas Bank

Axis Bank

Catholic Syrian Bank

Centurion Bank of Punjab

Dhanalakshmi Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Kotak Mahindra Bank

SBI Commercial and International Bank South Indian Bank

YES Bank

United Western Bank

11

CHAPTER 2
COMPANY PROFILE
AXIS BANK

COMPANY PROFILE
2.1 ABOUT AXIS BANK

12

 Start on 1994
On July 2007 UTI Bank rebrand as Axis Bank
2.1.1 Promoters

Unit Trust Of India (UTI)

Life Insurance Corporation (LIC)
General Insurance Corporation (GIC)
National Insurance Company Limited
New India Assurance Company Limited
The Oriented Insurance Company Limited
United India Insurance Company Limited

2.1.2 Capitalization
407.44 crore
Public Holding (other than promoters and GDRs) = 54.51%

2.1.3 Registered Office

Ahmadabad

Central Office
13

 Mumbai
2.1.4 DISTRIBUTION
Total Branches
More than 1042 branches (including 56 Service Branches/CPCs as on 30th June
2010).
ATM
Over 4474 ATMs (as on 30th June 2010) providing 24 hrs a day banking
convenience to its customers.
2.1.5 Bank Strengths
The Bank has strengths in both retail and corporate banking and is committed to
adopting the best industry practices internationally in order to achieve excellence.

2.1.6 MANAGEMENT (KEY PEOPLE)

14

NAME
Dr. Adarsh Kishore
Smt. Shikha Sharma
Shri M. M. Agrawal
Shri J.R. Varma
Dr. R.H. Patil
Smt. Rama Bijapurkar
Shri R.B.L. Vaish
Shri M.V. Subbiah
Shri K. N. Prithviraj
Shri V. R. Kaundinya
Shri S. B. Mathur
Shri M. S. Sundara Rajan

KEY POSITION
Chairman
M.D. & CEO
Deputy Managing Director
Director
Director
Director
Director
Director
Director
Director
Director
Director

2.1.7 FINANCIAL STATEMENT OF AXIS BANK

Balance Sheet of Axis Bank

Capital and Liabilities:

Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities & Provisions
Total Liabilities

------------------- in Rs. Cr. ------------------Mar '06

Mar '07
Mar '08
Mar '09

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

278.69
278.69
13.44
0.00
2,593.50
0.00
2,885.63
40,113.53
2,680.93
42,794.46
4,051.03
49,731.12

281.63
281.63
0.00
0.00
3,120.58
0.00
3,402.21
58,785.60
5,195.60
63,981.20
5,873.80
73,257.21

357.71
357.71
2.19
0.00
8,410.79
0.00
8,770.69
87,626.22
5,624.04
93,250.26
7,556.90
109,577.85

359.01
359.01
1.21
0.00
9,854.58
0.00
10,214.80
117,374.11
10,185.48
127,559.59
9,947.67
147,722.06

405.17
405.17
0.17
0.00
15,639.27
0.00
16,044.61
141,300.22
17,169.55
158,469.77
6,133.46
180,647.84

15

Mar '06

Mar '07

Mar '08

Mar '09

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

4,661.03

7,305.66

9,419.21

9,473.88

2,257.27

5,198.58

5,597.69

5,732.56

36,876.48
26,897.16
1,098.93
450.55
648.38
24.82
1,892.07
73,257.21

59,661.14
33,705.10
1,384.70
590.33
794.37
128.48
2,784.51
109,577.84

81,556.77
46,330.35
1,741.86
726.45
1,015.41
57.48
3,745.15
147,722.06

104,343.12
55,974.82
2,107.98
942.79
1,165.19
57.24
3,901.06
180,647.87

104,428.39
29,906.04
284.50

296,125.58
35,756.32
395.99

Assets
Cash & Balances with RBI
2,429.40
Balance with Banks, Money at
1,212.45
Call
Advances
22,314.23
Investments
21,527.35
Gross Block
898.68
Accumulated Depreciation
345.33
Net Block
553.35
Capital Work In Progress
14.37
Other Assets
1,679.98
Total Assets
49,731.13
Contingent Liabilities
Bills for collection
Book Value (Rs)

36,524.72 55,993.04 78,028.44

8,518.42 11,751.83 16,569.95
103.06
120.80
245.13

2.1.8 FINANCIAL PERFORMANCE IN Q1 YEAR

16

17

Auditors
M/s. S. R. Batliboi & Co. Auditors

Chartered Accountants

Registrar and Share Transfer Agent

M/s. Karvy Computershare Private Limited

18

1.2.

Profile

Axis Bank is one of the fastest growing banks in the country and has an extremely
competitive and profitable banking franchise evidenced by:
Comprehensive portfolio of banking services includes Corporate Credit, Retail
Banking, Business Banking, Capital Markets, Treasury and International Banking.

2.2.1 VISION 2015

To be the preferred financial solutions provider excelling in customer
delivery through insight.
empowered employees and smart use of technology.

2.2.2 Core Values

Customer Centricity
Ethics
Transparency
Teamwork
Ownership

19

2.2.3 Mission and Values

Customer Service and Product Innovation tuned to diverse needs of individual

and corporate clientele.
Continuous technology up gradation while maintaining human values.
Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.
Customer Satisfaction through providing quality service effectively and
efficiently.
"Smile, it enhances your face value" is a service quality stressed on Periodic
Customer Service Audits.
Maximization of Stakeholder value.
Success through Teamwork, Integrity and People.

2.2.4 COMPETITORS
Major Private Sector competitors:
HDFC
ICICI
Major Public Sector competitors:
SBI
PNB
20

Axis bank

HDFC

ICICI bank SBI

PNB

bank
1994

Aug,1994

1955

July,1955

Lahore,1895

Dr. Adarsh

Jagdish

Mr.K.V.

Mr.O.P.BHATT

Mr.K.R.kamath Chairmen

Kishore

Capoor

kamath

$19.0 million $ 941.25

$ 1.4 billion 85909.36 crore

million
RS 742 crore

1,47,479

Crore
$2.473 billion

$ 646.01

$ 1.03

million

billion

1,67,404

2,02,017

Approx.

$ 100.10

300,000
$323.043

billion

billion

Rs180,647.87 Approx.
$41.23

Rs. 7326

Rs. 3905

Founded

Operating
income
Net profit

Crore

billion

21

2,49,330

deposites

Rs 2,96,633

Total assets

crore

Competition of axis bank with other private banks

Last Price

Market Cap.

Net Interest

(Rs. cr.)

Income

Net Profit

Total Assets

ICICI Bank

912.85

101,768.65

25,706.93

4,024.98

363,399.71

HDFC Bank

2,038.60

93,712.55

16,172.91

2,948.69

183,270.78

Axis Bank

1,389.95

56,632.47

11,638.02

2,514.53

180,647.87

Kotak Mahindra

769.75

26,833.05

3,255.62

561.11

37,436.31

Yes Bank

301.85

10,293.69

2,369.71

477.74

36,382.50

IndusInd Bank

212.05

8,703.69

2,706.99

350.31

35,369.52

Federal Bank

355.05

6,069.38

3,673.23

464.55

38,850.88

ING Vysya Bank

349.05

4,190.24

2,232.90

242.22

33,880.24

JK Bank

795.50

3,856.41

3,056.88

512.38

37,693.26

Karur Vysya

602.60

3,280.29

1,757.94

336.03

21,993.49

22

2.2.5 COMPARISON OF AXIS BANK WITH HDFC BANK AND ICICI

BANK ON THE BASIS OF MARKET CAP,NET INTEREST INCOME,NET
PROFIT AND TOTAL ASSETS

23

400,000.00

350,000.00

300,000.00

250,000.00

ICICI

200,000.00

HDFC
Axis bank

150,000.00

100,000.00

50,000.00

0.00
market cap

N.I.I.

net profit

24

total assets

CHAPTER 3

LOAN

25

3. LOAN
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution
of financial assets over time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called
the principal, from the lender, and is obligated to pay back or repay an equal
amount of money to the lender at a later time. Typically, the money is paid back in
regular installments, or partial repayments; in an annuity, each installment is the
same amount. The loan is generally provided at a cost, referred to as interest on the
debt, which provides an incentive for the lender to engage in the loan. In a legal
loan, each of these obligations and restrictions is enforced by contract, which can
also place the borrower under additional restrictions known as loan covenants.
Although this article focuses on monetary loans, in practice any material object
might be lent.
Acting as a provider of loans is one of the principal tasks for financial institutions.
For other institutions, issuing of debt contracts such as bonds is a typical source of
funding.
3.1 TYPES OF LOAN

1.3.

Secured loan

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or
property) as collateral for the loan.

26

A subsidized loan is a loan that will not gain interest before you begin to pay it. It
is known to be used at multiple colleges.
A unsubsidized loan is a loan that gains interest the day of disbursement.
A mortgage loan is a very common type of debt instrument, used by many
individuals to purchase housing. In this arrangement, the money is used to
purchase the property. The financial institution, however, is given security a lien
on the title to the house until the mortgage is paid off in full. If the borrower
defaults on the loan, the bank would have the legal right to repossess the house and
sell it, to recover sums owing to it.
In some instances, a loan taken out to purchase a new or used car may be secured
by the car, in much the same way as a mortgage is secured by housing. The
duration of the loan period is considerably shorter often corresponding to the
useful life of the car. There are two types of auto loans, direct and indirect. A direct
auto loan is where a bank gives the loan directly to a consumer. An indirect auto
loan is where a car dealership acts as an intermediary between the bank or financial
institution and the consumer.
A type of loan especially used in limited partnership agreements is the recourse
note.
A stock hedge loan is a special type of securities lending whereby the stock of a
borrower is hedged by the lender against loss, using options or other hedging
strategies to reduce lender risk.
A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given
based on the merit and awardable amount in a lawsuit case. Only certain types of
27

lawsuit cases are eligible for a pre-settlement loan. This is considered a secured
non-recourse debt due to the fact that if the case reaches a verdict in favor of the
defendant the loan is forgiven.
2.Unsecured
Unsecured loans are monetary loans that are not secured against the borrower's
assets. These may be available from financial institutions under many different
guises or marketing packages:
credit card debt
personal loans
bank overdrafts
credit facilities or lines of credit
corporate bonds (may be secured or unsecured)
The interest rates applicable to these different forms may vary depending on the
lender and the borrower. These may or may not be regulated by law. In the United
Kingdom, when applied to individuals, these may come under the Consumer Credit
Act 1974.
3.Demand loan
Demand loans are short term loans that are atypical in that they do not have fixed
dates for repayment and carry a floating interest rate which varies according to the

28

prime rate. They can be "called" for repayment by the lending institution at any
time. Demand loans may be unsecured or secured.
4.Personal or commercial loan
Loans can also be subcategorized according to whether the debtor is an individual
person (consumer) or a business. Common personal loans include mortgage loans,
car loans, home equity lines of credit, credit cards, installment loans and payday
loans. The credit score of the borrower is a major component in and underwriting
and interest rates (APR) of these loans. The monthly payments of personal loans
can be decreased by selecting longer payment terms, but overall interest paid
increases as well. For car loans in the U.S., the average term was about 60 months
in 2009.
Loans to businesses are similar to the above, but also include commercial
mortgages and corporate bonds. Underwriting is not based upon credit score but
rather credit rating.

Generally there are two type of lending:1.

2.

Retail loans
Business loan

29

30

CHAPTER 4

RETAIL LOANS

31

2.Types of retail loans provided by axis bank:1.

2.
3.
4.
5.
6.
7.
8.

Home loan
Personal loan
Educational loan
Car loan
Loan against share
Loan against property
Loan against security
Consumer loan

1. Home loan

4.1.1 Features of Power Home Loan

Attractive interest rates

Balance Transfer facility

Doorstep service

Nil Prepayment charges

32

Criteria

Salaried Individual

Min. work exp

2 (3 if current

(Years)

employment <1 year)

Min net income

(Rs.)
Min ~ Max age
(Years)
Min ~ Max Tenor
(Months)

Self Employed

Professionals

Individuals
3

15000pm

1.50 lacs pa

>24 ~ <= than

superannuation at loan

>24 ~ <= 65 at loan termination

termination
Maximum 240

Maximum 240

Maximum 240

Maximum LTV

80%

Clubbing of Income

Allowed for spouse only

Pre payment penalty

NIL

Processing fee

1% of loan amt + 10.30% Service Tax as applicable

Other Products / Variants

Takeover of existing
HL from other

Allowed

financier (Balance
Transfer)
Refinance Option

Allowed for properties purchased in last 6 months

33

4.1.2 Documents required for Home Loan:

Proof of Identity, Signature & Age:

Passport
Voter's Card
Driving License
PAN card
Photograph
Proof of Residence:
Ration Card
Passport
Latest Electricity Bill
Latest Telephone Bill
Latest Credit Card Bill.
Proof of Income:
Latest 3 salary slip showing all deductions
IT Returns
Computation of income
Balance Sheet and P/L A/c for the last 2 years certified by a C.A.

34

Bank Statement:
Last 6 months where salary/income is credited
Proof of Qualification:
Degree / Diploma - proof of professional qualification

4.1.3 Interest Rate

Sr. No

Type

Loan amount (Rs.)

Rate Of Interest (p.a.)

Floating

Up to 30 Lacs

8.75%

Above 30 Lacs

9.25%

Irrespective of the loan amount

14.00%

2
scheme

Fixed

Proc Prepay

No due

essin ment
g

charges

Solvency

Charges for

Charges

certificat certificate

Late

for

Payment of

changing

EMI

from fixed

char
ges

to floating
rates of

Power
Home

1%
Nil
+
Servi
ce

Na

Na

35

interest
Rs 500 + taxes per Min. Rs.
cheque bounce

5000 or

and a penal

1% of

tax
as
appli
cable

interest @24%

the

per annum i.e. @

outstand

2% per month on

-ing

the overdue

amount

installment/s

whichever is
higher

Charges for changing from floating to fixed rates of interest:Min. Rs. 5000 or 1% of the outstanding amount whichever is higher

Switching Cost: Switching from the Floating rate scheme to the Fixed rate
scheme and vice versa is permissible. If a fixed rate customer wants to reschedule
the loan to a lower interest rate, the same is also permissible.
4.1.4 Terms and Conditions
Repayment
Repayment period for home loans shall not exceed 25 years.
Repayment period of pre-allotment bookings of housing loans shall not
exceed 1 year
Repayment period of improvement or renovation or extension of existing
property shall not exceed 10 years.
Security
Equitable mortgage of the property to be financed by way of deposit of title
deeds.
Disbursement
The loan will be disbursed in full or in suitable installments, taking into
account the requirement of funds and progress of construction, as assessed
36

by the Bank directly to seller or builder or local development authority or

supplier of materials etc.
Processing charges or admission fee
Processing fee equivalent to 1% of the loan amount (applied for) will be
collected along with the application form (taxes as applicable).
Penalty for early closure
Nil.

Other Conditions
Bank reserves the right to reject any application without assigning reasons
thereof
The applicant will undertake to inform the Bank as and when there is a
change in address or employment
The terms and conditions mentioned above and elsewhere under the scheme
are subject to modification from time to time solely at Bank's discretion.

4.2 Personal Loan

4.2.1
Criteria
Interest rate as per category

Salaried Individual Normal

As per category grid
1 year of cumulative experience for both salaried

Min. work exp (years)

individual/professional.

37

Min net income (Rs. p.m.)

Min ~ Max age

15,000
> 21 & < superannuation at loan termination
1.25- Rs 10 lacs (1.25 lacs loan is only available

Min ~ Max loan amt (Rs.)

Min ~ Max Tenor (months)

Security/Collateral/Guarantor
Banking relationships

for customers having salary power relationship)

12 ~ 60 months (For CAT C and D employees
maximum tenor is 48 months)
Optional
Cat A & B - Last 3 months
Cat C & D - Last 6 months

Phone
Processing fee

landline / mobile / WLL mandatory

2% of loan amt
Max loan =(Net monthly income - obligations) x

Eligibility calculation

Multiplier. Multiplier varies from 5 to 13

depending upon tenure.

Residence

Present residence => 6 months

Salaried Individual Prof (MBA, Engineer,

Criteria
Interest rate as per category
Min. work exp (years)

Architect, CA, CS, ICWA)

As per category grid
2

38

Min net income (Rs. p.m.)

Min ~ Max age

Min ~ Max loan amt (Rs.)

15,000
> 21 & < superannuation at loan termination

1.25 - 20 lakhs (1.25 lakh loan is only available

for customers having salary power relationship)

Min ~ Max Tenor (months)

12 ~ 60

Security/Collateral/Guarantor

Optional
Cat A & B - Last 3 months

Banking relationships
Cat C & D - Last 6 months
Phone
Processing fee

landline / mobile / WLL mandatory

2% of loan amt
Max loan =(Net monthly income - obligations) x

Eligibility calculation

Multiplier. Multiplier varies from 5 to 15

depending upon tenure.

Residence

Present residence => 6 months

Degree / Diploma - proof of professional qualification

Criteria
Interest rate as per category

Salaried Doctors
Doctor in Cat B/C/D at a min of MBBS/BDS/
MS/MD = Cat B rate
39

Min. work exp (years)

Min net income (Rs. p.m.)
Min ~ Max age

Min ~ Max loan amt (Rs.)

3
15,000 (gross)
>24 and <65 at loan termination
1.25 20 lakhs (1.25 lakh loan is only available
for customers having salary power relationship)

Min ~ Max Tenor (months)

12 ~ 60

Security/Collateral/Guarantor

Optional

Banking relationships
Phone
Processing fee

Last 6 months
landline / mobile / WLL mandatory
2% of loan amt+service tax as applicable
Max loan = (Gross monthly salary - obligations) x

Eligibility calculation

Multiplier. Multiplier varies from 5 to 15

depending upon tenure.

Residence

Present residence => 6 months

Degree, Registration with respective state medical

Proof of Qualification

councils Or Dentists Association.

4.2.2 Documentation:

40

Documents Required
Proof of Identity, Signature &
Age
Proof of Telephone Bill

Proof of Residence

Passport/ Voter's Card/ Driving License/ PAN

card & Photograph.
Latest bill of landline/ mobile/ WLL stating name
of borrower or address of borrower.
Ration Card/ Passport/ Latest Electricity Bill/
Latest Telephone Bill/ Latest Credit Card Bill.
Latest salary slip showing all deductions and Last

Proof of Income

2 years Form 16 along with current dated salary

certificate

Bank Statement / Pass Book

where salary is Credited

Cat A & B - Last 3 months, Cat C & D - Last 6

months

4.2.3 Interest Rate Grid:

Interest Rate Grid
Personal Loans

ROI (only Fixed)

Salaried - Cat A

14~15.00%

Salaried - Cat B

17.00%

Salaried - Cat C

19.00%

Salaried - Cat D

21.00%

41

4.3. EDUCATION LOAN

Axis Bank's Study Power aims to provide financial support to deserving students
for pursuing higher professional or technical education in India and abroad. The
loan would be provided to students who have obtained admission to careeroriented courses eg, medicine, engineering, management etc., either at the graduate
or post-graduate level.

4.3.1 Quantum of loan:

The quantum of finance under the scheme is capped at Rs.10 lacs for studies in
India and RS 20 Lacs for studies abroad, which cover tuition fees, hostel charges
(if any), cost of books, etc. The minimum amount of loan would be RS 50000.

4.3.2 Margin
No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for
studies within India and 15% for higher studies overseas.

4.3.3 Rate of interest

Interest rates linked to PLR.

42

4.3.4 Role of the Guardian

The parent(s) or guardian of the student would be treated as a co-applicant of the
loan. His or her role would be, necessarily, like the primary debtor.

4.3.5 Security
Third party guarantee and/or collateral security may be asked for in appropriate
cases.

Additional Security
Assignment of LIC Policy in favour of the Bank for the sum assured being at least
100% of the loan amount. The policy is kept alive during the currency of the loan.
To ensure this, the annual premium may be include in the computation of the loan
requirement, along with the tuition fees and other recurring charges. Further, the
future income of the student needs to be assigned in favour of the Bank for meeting
the instalment obligations.

4.3.6Disbursement
The loan will be disbursed in full or in suitable instalments taking into account the
requirement of funds and/or fee schedule as assessed by the Bank directly to the
educational institution or vendor of books or equipment or instruments.
Penalty for early closure
Nil

4.3.7 Interest Rates & Charges

43

rate of processing Payment

No

interest fees

certificate certificate for

charges

due Solvency

Charges

Charge

late s

Charges

for for

payment

changi

changin

of EMI

ng

from

floating

from

fixed to to fixed
floating rates of
rates of interest
13.75%

Nil

Nil

Na

Na

interest
Rs 500 + Na
Na

taxes

15.75%

cheque

*Repay

bounce

able in

and

maximu

penal

interest

per

years

@24% per

from

annum i.e.

the

@ 2% per

comme

month on

ncemen

the

overdue

of

instalm

installmen

ent.

t/s

44

CHAPTER 5

COMPARISON OF LOANS

45

5.1 COMPARISON OF HOME LOANS

Name

Type

Loan

Interest rates

eligibility(in
ICICI BANK
HDFC BANK
SBI BANK
AXIS BANK
PNB BANK

floating
fixed
fixed
fixed
fixed

lacs)
18-26
13-19
20-28.8
13-19
17-24

8.25%*
14.25%
8%*
14%
9.25%

EMI

Processing

Rs.

fees

19,405

0.5% of loan

26,972

amount
0.5-1% of loan

19,113

amt.
0.5% of loan

26,635

amt.
1% of

20,724

amt.
0.5% of loan
amt.

46

loan

47

5.2 COMPARISON OF PERSONAL LOAN

BANK

TYPE

LOAN

INTEREST

EMI

PROCESSING

NAME

ELIGIBILITY(rs.

RATE(%)

(rs. )

FEES

ICICI BANK

)
4.15-5.53

14-18

3,418-

2% of loan amt.

15.5-22

3,615
3,491-

2.5% Of loan amt.

14
14-21

3,819
3,418
3,418-

2-3% of loan amt.

2% of loan amt.

floating

HDFC BANK Floating 3.93-5.24

SBI BANK
AXIS BANK

Floating 4.39-5.85
fixed
3.98-5.31

3,768
PNB BANK

fixed

50,000-4.0*

11-15*

5.3 COMPARISON OF EDUCATIONAL LOANS

48

1.8% of the loan

amount + Service
Tax & Education
Cess

BANK

INTERES

INTEREST

MAX.

MAX.

NAME

T TYPE

RATE

LOAN

REPAYMEN- IN

SING

AMT.

T TENURE

FEES

10,00,000

(yrs)
7

ICICI
BANK
HDFC

floating
Fixed

11.25 -13%
12-14%

10,00,000

MARG-

PROCES

5%

1%

of

5%

loan amt.
1%
of

BANK
SBI

floating

12.75%

10,00,000

5%

loan amt.
NIL

BANK
AXIS

fixed

13.75-15.75%

10,00,000

5%

NIL

floating

11.25%

10,00,000

5%

NIL

BANK
PNB
BANK

49

CHAPTER 6

CUSTOMER SURVEY

50

CUSTOMER SATISFACTION SURVEY

In the study, random sample only existing customers of the Axis Bank. The
customers studied under this survey were mostly walk-in customers proper care
was taken to approach those customers who could easily fill up the questionnaire
and fill up the questionnaire and were rational in their response. But there could be
some errors in the analysis which could have crept into due to lazy respondents,
human errors and other factors.
Sampling procedure - convenience sampling.
Sample size
Sample extent

- 50
- bulandshahr (u.p.)

6.1.Occupation of respondents

occupation wise break-up

salaried
self-employed
retire
others

In the survey, we found that majority of people who have taken loan are
salaried person, followed by self-employed and then retire persons.

51

6.2.Types of loan

tyes of loan
home loan
personal loan
educational loan
other loans

On the basis of survey we found that home loan is most popular,followed

by educational loan and personal loans.

6.3. DISTRIBUTION OF CUSTOMER ON THE BASIS OF SEX

sex
male
female

male customer prefer more loan as compare to female customers.

52

6.4.AGE- WISE DISTRIBUTION

age

below 25
25-35
above 35

53

VII.

RESEARCH

METHODOLOGY

TOOLS
USED
PRIMARY
DATA

1.comparative
analysis
2.statistical tools like
graphs,tables,piecharts etc

1.questionnaire
2.interview
3.personal visit to
various banks

suggesti
ons

54

SECONDA
RY DATA
1.website of axis
bank
2.other websites
3.articles and
newspaper

The purpose of methodology is to describe the research procedure and the data
collection method.
The study is mostly descriptive in nature. Both secondary as well as the primary
data has been used for the research. The primary data is collected through
questionnaire, interviews and personal visit to the banks. The total sample size
used for the collection of the primary data was 50. The sample unit were the
customers who visited the bank during the study duration.
The secondary information was gathered from the files, documents, records and
sources of the company. Basically the data was drawn from the Internet and
secondary sources that are available in research.
The different tools used in the study are charts, graphs, and tables.

55

CHAPTER 7

FINDINGS,LIMITATION
RECOMMENDATIONS

AND

56

57

7.1 LIMITATIONS
While working on a project following limitations and constraints were found.
As the study was done within branch of axis bank didnt cover the broad spectrum
of customers.
Lack of expertise being a trainee in analyzing data .The sample size is limited due
to constraint of time.
Some respondents were not cooperative and lazy enough, they didnt respond to
the questionnaire very well.
Some respondents gave biased information so as to promote their bank in which
they are dealing and have account.
Some customers are lazy enough or they dont have to fill the questionnaire , so i
have to manually fill some forms on the basis of their response.

7.2 SUGGESTIONS AND RECOMMENDATIONS

During the study, it was found that the customers had to wait too long for the
loans to get disbursed. The processing time is too long. Customers had to wait
for their loan processing done by the staff. Efforts should be made to reduce it.
It was found out that there is lot of formalities in the loan disbursement process.
Too much documentation is done. Customers is not aware of all the formalities
to be done, which he/she asked to do . reading loan agreement at the time of
taking loan is time consuming. Therefore paper work should be more friendly
and clear.

58

After sales service is not upto the mark. Customers facing problems should be
attended on time.
Staff is generally co-operative only at the time of loan is sanctioned and
disbursed. Therefore after sales service be improved upto satisfaction level of
customer.
Customers should be given proper information about EMI. They are generally
not told how to calculate EMI. They should know its calculation and its amount.
Pubic dealing hours should be increased to some later time period because
majority of the customers were found out to be salaried in the survey.
Bank should make efforts to attract more and more customers through increased
advertisement.

59

ABBREVIATIONS AND ACRONYMS (GLOSSARY)

RBI

Reserve Bank of India

SOL

Service Out-let

ATM

Automatic Teller Machine

PIN

Personal Identification Number

FII

Foreign Institutional Investor

AMFI

The Association of Mutual Funds in India

IRDA

Insurance Regulatory and Development Authority

SEBI

Security and Exchange Board of India

CBIL

Credit Information bureau (India) Ltd.

CRR

Cash Reserve Ratio

SLR

Statutory Liquidity Ratio

ALM

Assets liability Management

ALCO

Assets Liability Committee

REPO

Reverse Purchase Order

GDR

Global Depository Receipt

ADR

American Depository Receipt

60

7. REFERENCES
www.axisbank.com
www.hdfcbank.com
www.icicibank.com
www.sbi.co.in
www.pnb.com
www.wikipedia.com
www.google.com
www.apnaloan.com
www.moneycontrol.com
www.thehindu.com
www.businessline.com
www.bankbazaar.com

61