INTRODUCTION

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 INTRODUCTION
Customer Satisfaction

A customer is a person who brings his wants, whether the customer is satisfied
after purchase depends on the offers performance in relation to the
customers expectation.

Is a person feeling of pleasure or disappointment resulting from comparing a

products perceived performance or outcomes in relation to his or her expectations.
As definition make clear satisfaction is a function of perceived performance and
expectations if performance falls short of expectations the customer is dissatisfied.
If the performance are satisfied or delighted.

Satisfaction is a persons feeling of pleasure or disappointment resulting from

comparing product perceived performance in relation to his or her expectations.

Satisfaction is a function of perceived performance and expectations. If the

performance matches the expectations, the customer is satisfied.

Loans

Loan is a major source through which the corporate and individuals meet their
funds requirement for business and personal needs. Though the informal loan
market is very active, the main lenders are the banks and financial institutions.
Though the lending decisions are taken by the banks and financial institutions, the
Reserve Bank of India (RBI) controls this market through issue of guidelines and
by other control measures. The business of the banking essentially involves the
lending.

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Loan is an arrangement of a advancing a sum of money on interest for a pre-
agreed period sometimes for a particular purpose as well. Loan is a form of
accommodation provided by the bank to the customer who is in need of money.

The loans and advances by banks are broadly classified into-:

Secured Loans:-
According to Section 5 (a) of the Banking Regulation Act, 1949, a secured loan or
advance means a loan or advance made on the security of assets, the market value
of which is not at any time less than the amount of such loan or advance.
Unsecured loan or advance means a loan or advance not so secured.

The distinct features of a secured loan or advance are:

The loan must be made on the security of tangible assets like goods and
commodities, land and building, gold and silver, corporate and government
securities etc. A charge on any such assets offered as security must be created
in favour of the bank.
The market value of such security must not be less than the amount of the loan
at any time till the loan is repaid. If the former falls below the latter because of
decline in the market prices, the loan is considered as partly secured.

Unsecured Loans:-
Unsecured or clean advances are granted against the promissory not (pm) of the
borrower. In order to safeguard its position, the bank may insist for the signatures
of one or more independent surety/sureties or guarantor/guarantors or on the
promissory not executed by such a person. If the principle debtor does not make
the payment and the bank is not able to receive the payment from the property of
the debtor, it can claim for the surety/sureties. Unsecured advances are of risky
nature and bank realize entirely on the reputation, goodwill, integrity and character
of the borrower.

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While granting unsecured loans the bank should be very cautious as to the
capacity and character of the borrower. Bank allows unsecured advances in the
following ways:
Cash credit against the hypothecation of movable property.
Purchasing and discounting of bills.
Advanced against government supply bills.
Purchasing and discounting of documentary D/A bills covering exports.
Advances against Promissory notes guaranteed by one or more persons of good
credit worthiness.

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 THINGS TO DO FOR TAKING HOUSING LOAN

How to choose a lender?

While choosing a lender, a borrower should take following points into
consideration:
Total financing cost: Borrower should take into consideration the
processing, administration and other charges in addition to the interest cost
to find out the effective rate. Also, one should look whether interest rates
are calculated on the monthly reducing balance or annual reducing balance
method.
Extent of financing
Processing ease
Flexibility in repayment of loans
Branch network
Other services (like doorstep services and freebies etc.)
Procedure For Availing Housing Loan
The appraisal officer attends to the queries of a prospective borrower.
Various details. e.g., eligibility et al are discussed during this meeting.
You collect the application form, which is generally available at the
reception counter.
You pay the processing fees, which is about 1% of the loan amount. The
fees are non-refundable. Generally you are asked to pay the fees only if the
chances of the loan getting sanctioned are really good as per the Officer's
analysis.
The date of the personal interview is fixed up as per mutual convenience.
The appraisal officer conducts the interview.
The Appraisal Officer prepares the file and discusses the case with the
Branch Manager. The Branch Manager should substantiate

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 recommendations of the Appraisal Officer. The file is then recommend for
sanctioning by the competent authority.
The competent authority concerned sanctions the loan proposal. In case
there are some queries, the same have to answered by the Appraisal Officer
to the satisfaction of the sanctioning authority.
If approved, you collect the Loan Offer letter. You fill Property Details form
and Acceptance Note and sign the same. This signifies your acceptance of
the proposal. Then, you are required to collect the disbursement within a
month of the acceptance of the offer letter failing which a Commitment
Charge of generally 1% on the loan is levied
The Legal and Technical fees is generally 1% of the loan sanctioned is paid
by the borrower. The file is then transferred to the Legal department. You
submit the legal documents to the Legal Officer. The Loan Agreement and
the other documents are signed. The Legal Officer then prepares the Legal
Report after studying the legal documents in depth.
The Technical Officer visits the property and submits the Technical Report.
The Technical officer as per the stage of completion recommends the
amount for disbursement.
The Disbursement Memo is prepared and is signed by the Appraisal, Legal
and

Technical Officers, and countersigned by the Branch Manager.

The accounts department the prepares the cheque which is then sent to the
authorised signatories. The Disbursement Memo is attached with important
documents like interview sheet, Legal Report, Technical Report, PEMI
Status Report applicable etc.
The PEMI cheque of the amount disbursed is collected before releasing the
disbursement amount cheque. PEMI is the interest charged on the amount
already disbursed by the company.