CONTENTS

SUMMARY

CHAPTER-I

1. . INTRODUCTION TO THE TOPIC………………………..........

2. OBJECTIVES OF THE STUDY………………………………. 3. METHODOLOGY…………………………………………….4. LIMITATIONS………………………………………………....

CHAPTER-II 5. INTRODUCTION TO THE ORGANIZATION………………...6. RATIONALE OF THE PROJECT……………………………...

CHAPTER-III 7. DATA ANALYSIS & INTERPRETATION……………………..

CHAPTER-IV

8.MAJOR FINDINGS…………………………………………....

9.SUGGESTIONS………………………………………………..

10.CONCLUSION………………………………………………

BIBLIOGRAPHY

ANNEXURE

SUMMARY

Allahabad Bank offers loans of various types to meet the requirements of the individuals.

It offers loans to self employed persons, business men, salaried employees and

professionals. The diverse range of Allahabad Bank loans that are offered to the

individuals includes:

Housing Loan

Education Loan

Car Loan

Saral Loan

Personal Loans for Pensioners

Personal Loans for Doctors

Loan against NSC/KVP

Allbank Rent Loan

Allbank Property Scheme

Allbank Furnishing Loan

Gold Loan Scheme

All Bank Mobike Scheme

AllBank Abhushan Scheme

Allbank Trade Scheme

AllBank Gyan Dipika Scheme

AllBank Reverse Mortgage Scheme

The car loans by the Allahabad Bank are given for the purchase of the new vehicle,

which are to be for personal use only. It also offers loans for the purchase of pre- owned

vehicle, which is not more than 3 years old.

To get the benefit of the loan, the person should be a salaried person, with the gross

income of Rs. 10,000 p.m. Agriculturalists and professional self employed and business

men are also eligible to get loans from Allahabad Bank. It must be kept in mind that the

car loan should be fully repaid before the individual turns 70 years of age.

The car loan amount that is offered to the individual does not exceed 2 times of the Net

Annual Income or Net Annual Salary.

Allahabad Bank Home Loans

Allahabad Bank offer home loans for the construction of the residential house on the

already owned land. It also offers loans for other purposes like purchase of plot by

salaried people, purchase of flat or house, renovation of residential house and other

purposes.

Home loans are offered to permanent salaried people, businessmen, self employed

persons and individuals with regular income who can liquidate loans. Allahabad Bank

offers term loans to the loan seekers.

For the salaried persons the loan amount is restricted to 60 times of the monthly gross

salary. For other individuals, the loan amount is limited to 4 times of the gross income.

Allahabad Bank Education Loans

The educational loans are offered by the Allahabad Bank to the Indian students only. The

students should seek admission to educational courses through entrance test selection

process. The bank offers loans for various courses like graduation and post graduation

courses, professional courses, computer certificate courses, courses conducted by IIM,

IIT etc. Allahabad Bank offers loans for studies abroad as well.

For the students studying in India, the maximum loan amount offered is Rs.10 lacs and

for studying abroad the maximum loan amount increases to Rs. 20 lacs.

Allahabad Bank Personal Loans

Personal loans are offered to all the pensioners drawing pensions from Allahabad Bank.

The personal loans are given to the pensioners who have not exceeded 70 years of age.

This kind of loan can be availed without assigning any definite purpose. The maximum

loan amount of Rs.75,000 and minimum of Rs.15,000 are offered to the individuals.

Personal loans are also provided to the doctors and medical practitioners by the

Allahabad Bank. The loans are offered for the expenses of professional requirement.

Annual income or Rs. 5 lacs, whichever is less are offered as the loan amount.

Allahabad Bank Loans are offered to the Non Resident Indians as well. NRIs are

offered housing loans and education loans by this bank. How you use the money is

entirely up to you. Personal loans are unsecured loans with a fixed payment schedule and

payment amount. Use them to consolidate debt, pay off a credit card, or put money in the

bank. One can apply quickly for personal loan today and quickly access cash and also pay

of credit cards make upgrades to your home. And confidential and secure no-obligation

quotes. One can get from Allahabad bank which provides it at very low rate of

interest.For students bank can understand that paying for college can be difficult. Find

low-interest public and private loans specifically designed for students. Private loans help

students fill the gap when federal loans, scholarships, and grants don't cover all of your

college expenses. That's why we made getting the additional funds you need an easy

process. Federal aid doesn't always cover all of the costs and Many student loans don't

require repayment until graduation and also interest rates on student loans is generally

lower than other loan types All for this is the bank from which student can get the loan.

One person always have the dream of his own house and Allahabad bank get the dream to

fulfill through home loans.Whether you're looking to purchase a home, refinance an

existing mortgage, or take out a low interest second mortgage to consolidate loans or get

some cash, lenders are standing by to compete for your business. Credit.com has

partnered with Home-Account.com to help guide you through the process. Bank provide

the home loan based on your income, learn how much house you can afford , Find out if

refinancing makes sense (dollars and cents) for you and also Discover if points on a

mortgage is a good investment , also avoid common mistakes on the path to home

ownership.

CHAPTER-I

1. RATIONALE OF THE PROJECT

2. OBJECTIVES OF THE STUDY

3. METHODOLOGY

4. LIMITATIONS

CHAPTER-I

INTRODUCTION TO THE TOPIC

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.

Types of loans

Secured

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

as collateral for the loan.

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.[citation needed]

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 lawsuit cases

are eligible for a pre-settlement loan.[citation needed] 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.

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

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.

Demand

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 prime rate.

They can be "called" for repayment by the lending institution at any time. Demand loans

may be unsecured or secured.[1]

Loan payment

The most typical loan payment type is the fully amortizing payment in which each

monthly rate has the same value overtime.[2]

The fixed monthly payment P for a loan of L for n months and a monthly interest rate c

is: [3]

Abuses in lending

Predatory lending is one form of abuse in the granting of loans. It usually involves

granting a loan in order to put the borrower in a position that one can gain advantage over

him or her. Where the moneylender is not authorized, they could be considered a loan

shark.

Usury is a different form of abuse, where the lender charges excessive interest. In

different time periods and cultures the acceptable interest rate has varied, from no interest

at all to unlimited interest rates. Credit card companies in some countries have been

accused by consumer organisations of lending at usurious interest rates and making

money out of frivolous "extra charges".[4]

Abuses can also take place in the form of the customer abusing the lender by not repaying

the loan or with an intent to defraud the lender.

taxes

Most of the basic rules governing how loans are handled for tax purposes in the United

States are uncodified by both Congress (the Internal Revenue Code) and the Treasury

Department (Treasury Regulations — another set of rules that interpret the Internal

Revenue Code).[5] Yet such rules are universally accepted.[6]

1. A loan is not gross income to the borrower.[7] Since the borrower has the obligation

to repay the loan, the borrower has no accession to wealth.[8]

2. The lender may not deduct the amount of the loan.[9] The rationale here is that one

asset (the cash) has been converted into a different asset (a promise of repayment). [10]

Deductions are not typically available when an outlay serves to create a new or different

asset.[11]

3. The amount paid to satisfy the loan obligation is not deductible by the borrower.[12]

4. Repayment of the loan is not gross income to the lender.[13] In effect, the promise of

repayment is converted back to cash, with no accession to wealth by the lender.[14]

5. Interest paid to the lender is included in the lender’s gross income.[15] Interest paid

represents compensation for the use of the lender’s money or property and thus represents

profit or an accession to wealth to the lender.[16] Interest income can be attributed to

lenders even if the lender doesn’t charge a minimum amount of interest.[17]

6. Interest paid to the lender may be deductible by the borrower.[18] In general,

interest paid in connection with the borrower’s business activity is deductible, while

interest paid on personal loans are not deductible.[19] The major exception here is interest

paid on a home mortgage.[20]

Income from discharge of indebtedness

Although a loan does not start out as income to the borrower, it becomes income to the

borrower if the borrower is discharged of indebtedness. [21] Thus, if a debt is discharged,

then the borrower essentially has received income equal to the amount of the

indebtedness. The Internal Revenue Code lists “Income from Discharge of

Indebtedness” in Section 62(a)(12) as a source of gross income.

Example: X owes Y $50,000. If Y discharges the indebtedness, then X no longer owes Y

$50,000. For purposes of calculating income, this should be treated the same way as if Y

gave X $50,000.

For a more detailed description of the “discharge of indebtedness”, look at Section 108

(Cancellation of Debt (COD) Income) of the Internal Revenue Code.[22]

Research Design

This dissertation is consisted by the following structure of five chapters

which can be seen in below:

Figure 1.1: Research Design

Chapter 1: Introduction

Chapter 2: company profile

Chapter 3: Research Methodology

Chapter 4: Data Analysis – Results

Chapter 5: Conclusions

Loan offered by Allahabad bank

1.1Emergency Loans

We need a loan every time we face a situation where we can not meet the ends meet and

we need some kind of financial injection that’ll cure the problem. Specially in

emergencies, getting a loan can really help and once the emergency is over, repaying that

loan never feels like a burden. Emergencies can vary, one might have to travel to attend

an important an event like a wedding or a tragic family funeral or might require some

quick cash in order to pay for expensive medicines if he/she falls sick etc.

Ever now and then we face a situation where things are not under our control and if you

are low on savings or have low income, a loan provided in emergency does feel like a

blessing. In such cases, people mostly prefer short term loans that they mean to pay back

on the next pay day or a couple of months max. The best places to get a loan are the

financial institutions but you can also apply for payday advance loans that are available

online. Google the terms and you’ll see how many choices can be found online.Apply

now for an EmergencLoan

1.2 Home Loans

Banks, as I am sure that you are already aware of, can also provide loans. People usually

apply in banks for large sum of loans for instance home loans. First time home buyers

mostly plan to spend around a hundred and fifty thousand (USD $150,000) to three

hundred thousand dollars ($300,000). For the first time home buyers, it’s absolutely

important that they find a bank which is offering home loans on lower interest rates and

with a good 25-30 years of repayment schedule.

1.3 Car loans / Auto Loans

At present, one of the most widely used and important loan for a common man is a car

loan. These types of loans are designed for people who want to purchase a car and are

normally known as car loans or auto loans. You can apply for a car loan regardless what

kind of car you are looking for. It can be a small more economical compact car or it can

also be a SUV. The amount of loan that you want to borrow and the interest rates will

heavily depend on your credit, your monthly income and your age. If you have a poor

employment history then that will also have a negative effect on the total amount and the

interest rate associated with the loan.

1.4 Student Loans

You can apply for a student loan if you are going to a college or a trade school. You can

also apply for student loan if you want to get a new diploma in a specialized field. You

can get in touch with government or private sector lenders to borrow these loans. What

you have to make sure is that you strike a deal where you don’t have to pay high interest

rates. If you are going to a trade school then there is a good chance that you won’t have to

borrow as much money as you would if you are going to join a college and graduate in 4

years. With trade schools, your loan repayment schedule will begin after you have

graduated.

1.5 Personal Loans

People need loans for personal needs, needs that do not really have anything to do with

the basic necessities of life like medical, car loans or loans for home purchasing. 

For instance personal needs like traveling during holidays, cosmetic surgeries, going out

for a lovely honeymoon or getting a loan to have a wedding of your dream. This type of

loan is known as Personal loan. Usually personal loans carry a higher interest rate

because these loans are tailor made for personal needs of the borrower that vary from

case to case. Before you apply for personal loans with a financial institute, you should do

a little research on the internet. There is a good chance that you will find a lender that is

offering these loans on lower interest rates.

1.6 Credit Cards

Many people do not realize that by using credit cards, they are already using loans. In

fact, many Americans believe that they just have to have a credit card because for them

it’s a thing that everybody has which can also lead you to believe that their interest rates

are the lowest possible interest rates and life can become very easy thanks to credit cards.

The fact is that credit cards are the biggest loan industry in the world, left alone America.

It makes your life easier by giving facilities like not paying using cash or having to buy

something off the shelf when you don’t have enough to pay for it at once but the interest

rates are pretty high compared to any other loan. There are good chances that you will

miss paying a monthly bill because lets face it, sometimes work and domestic issues can

lead to missing out the deadline of the bill that you need to clear before you cross the due

date and that will leave a big bad stain on your credit report.

Housing loans

The housing finance market is on a high growth trajectory. Over the last seven years, it

has grown exponentially from Rs4630 crore in 1996-97 to an estimated Rs42, 000 crore

in 2003-04. This makes it one of fastest growing industries in the country, with growth

rates in excess of 37 percent per annum. Going by the shortage of housing in the country,

it is poised to grow at a similar pace for the next three years at least.

The penetration of housing in India is among the lowest in the world,

with a housing –to-GDP ratio of 2 percent. By contrast, in most Asian countries the ratio

is around 15 percent. Government estimates of housing shortage in the country are

1.9crore units. Also, on the financing side, household debt-to-GDP ratio in India is

around 4 percent, much lower than the 25-30 percent in most Asian countries.

Retail buyers have mushroomed over the last couple of years, thanks to

growing income levels, low penetration of housing, fall in retail property prices and steep

fall in interest rates on housing loans.

In the last seven years, interest rates have come down by over 50 percent

(from 14 percent to 7 percent), resulting in huge savings. Now a 20-years Rs 10 lakh loan

will save the customer over Rs 11.24 lakh in interest costs.

Falling interest rates have further boosted an individual’s preference to

avail credit. Now almost 60-65 percent of individuals finance their home through a

mortgage as against 30-35 percent five years ago.A reason for this growth is that

consumers ,particularly the younger generation ,have become less debt averse. The

average age of individuals opting for a housing loan has fallen to around 32 years as

against an age of early 40’s around seven years ago.

Another reason that has contributed to the growth in housing finance is the

sharp rise in disposable income levels. The cost of a house today is merely five times the

average annual income. About seven years ago, it used to be more than 20 years income.

Back then it was also difficult to get a loan for more than 7-8 years, now loans are offered

for a period of 15-20 years.

Besides, property prices have stayed in the last 3-4 years. Having peaked

in the mid –90’s, prices tumbled by more than 40 percent, making homes more affordable

.the Indian buyer has also become more quality conscious .now they want facilities like

schools, hospitals, shopping malls, recreation centers and health clubs close to their place

of residence. Developers have tuned into their demands and are offering quality products,

thus giving an all –round push to housing and housing finance.

The housing finance portfolio is considered safe as loan defaults have

traditionally been below 1 percent. this is why many public sector banks and foreign

banks have entered the industry.

In fact, in the last three years, banks have tripled their exposure to retail

loans –the bulk of which is towards housing-from about 5 percent of the total credit three

years ago to 14-17 percent.

Adoption of prudential norms with reference to capital adequacy asset

classification. Income recognition and provisioning has improved the internal health, i.e.

the soundness and solvency of each Bank. Banks have made major headway in housing

finances where the competition is the severest. The main reason for this is that this

product offers maximum security, fixed yield, long repayment period and opportunities

into the banks cross sell other products.

Due to income tax exemption for interest &repayment and eligibility for

coverage under priority sector. Advances, the share of housing finances in retail banking

operations is the largest.

Housing Finance is the fastest growing sub- segment in retail Finance.

Incidence of NPA is also the lowest in this sub segment being only around 0.50 to 0.75

percent of total finance. The total market size of HF is present Rs.25000 and is expect to

grow at an annual growth of 30%.

Housing is a priority area even for the government, which is providing

various incentives for boosting growth and development in this sector, the factors

responsible for growth in this sub segment have been:

Repeat of urban land ceiling Act

Fall in the prices of real estate to more realistic levels and increase in income

levels resulting in improved ratio of cost of housing to annual income 14.66 to

5.22 in 2001-02

Deduction of interest paid on housing loans from total income for calculation of

Income tax and rebate under section 88 for repayment of principal up to Rs.

20000 p.a.

However, reforms are necessary in stamp act and tenancy has to give further

boost to this sector. Although of the implementation of the Kelkar committee

recommendation might result in a set back to the development of this sector.

Home Financing had been a safe proposition as instances of NPA have

minimal. But the story has changed of late and home loan players are being forced to do a

rethink.

The first hint of a revision in strategy was done by an unassuming Union

Bank of India. The bank hiked its interest rates for fresh home by 50bps. (Ref. The

Financial Express March 15,2004). The latest buzzword in the real estate market is for

home finance companies to purchase real estate and then lease it out to multinational

companies. ALLAHABAD BANK Home Finance has invested Rs.200 crore in acquiring

space in hi- tech cities across in India, which are then rented out to IT companies.

Home finance sector leader Housing Development Finance Corporation

(HDFC) proposes to set up a separate entity for acquiring and leasing properties to

corporate clients.

The housing finance major proposes to set up a separate entity with 49%

equity holding which will acquire properties and lease them to MNCs. “there is a good

potential for such business in the country as currently there are no institution property

finance companies willing to own property and lease them out to corporate."

HOUSING FINANCE SECTOR

Against the milieu of rapid urbanization and a changing socio-economic

scenario, the demand for housing has grown explosively. The importance of the housing

sector in the economy can be illustrated by a few key statistics. According to the National

Building Organization (NBO), the total demand for housing is estimated at 2 million

units per year and the total housing shortfall is estimated to be 19.4 million units, of

which 12.76 million units is from rural areas and 6.64 million units from urban areas. The

housing industry is the second largest employment generator. It is estimated that the

budgeted 2 million units would lead to the creation of an additional 10 million man-years

of direct employment and another 15 million man-years of indirect employment.

Having identified housing as a priority area in the Ninth Five Year

Plan (1997-2002), the National Housing Policy has envisaged an investment target of Rs.

1,500 billion for this sector. In order to achieve this investment target, the Government

needs to make low cost funds easily available and enforce legal and regulatory reforms.

Thus the research indicates that customer are seeking more than just a loan,

they seek convenience in the entire process of acquiring a home loan as well as finance

for it. The aim is to make the process seamless for the customer by offering access to the

complete real estate market in his city at one place, helping him to select the property as

per the requirement, guiding him through the documentation and also providing the loan.

Leading players are looking at acquiring the customer not only through fresh application,

but also through refinance.

Importance of customer satisfaction

Customer satisfaction has been regarded as an important theoretical and practical issue

for many academics and most marketers (e.g. Dabholkar et al., 1996; Fournier and Mick,

1999). Unfortunately, today many managers still think that customer satisfaction is not

something necessary and important element of success (Goodman and Ward, 1993).

However, customer satisfaction is very crucial for the success of the companies in this

competitive world of business and more and more companies recognize its importance as

a serious organizational goal (Jamal and Naser, 2002; Bitner and Hubbert, 1994).

Similarly, Bhote (1996) refer that “clearly defining and understanding customer

satisfaction can help any company identify opportunities for product and service

innovation and serve as the basis for performance appraisal and reward systems”.

Additionally, Lynch (1995) argues that organizations in order to increase their customer

satisfaction must take into consideration five key elements: self-esteem, security,

information for customers and “atmospherics”.

RATIONALE OF THE PROJECT

1). Longer tenure of loans, ranging from minimum 5 years to 20/30 years. Higher outlays

of funds longer duration of housing loans make it different from that of other retail loans.

Therefore the risk horizon also differs for the hosing loans.

2). Rather low cost of operations in terms of deployment of manpower for processing and

follow up etc. as compared to other loans of the same size within the retail or any other

segments.

3). Safe advances, as these are invariably backed by tangible security in the form of

mortgage of house/flat.

4). Tendency to default on housing loan is low as house is considered as big ticket deal of

an individual’s life.

5). At present, the housing loan portfolio of banks is highly sensitive to sops announced

by the government on exemption on personal tax.

1.

OBJECTIVES OF THE STUDY

To get a fair view of the functioning of the vehicle finance department in a banking organization.

To know about the inflow and the outflow of the funds in the loans department.

To know the reason behind the fluctuation in the interest rates charged by banks.

To know about the various competitors which really give a tough competition to the I.C.I.C.I bank.

To know about the role played by reserve bank of India in deciding the interest rate charged on loans by any bank.

To know about the basis for calculating the loan interest rate. To do the comparative study on the basis of the interest rates charged

by various banks. To know about the various deciding factors for any individual before

taking car loan from any bank. How is Allahabad Bank better than other banks in terms of extending

loans and serving their customers? What is the customer base of ALLAHABAD BANK? What are the formalities that an individual is supposed to comply

with before acquiring for educational loan from Allahabad Bank? How can ALLAHABAD BANK bank take an edge over their

competitors? How far are the customers satisfied with the services extended by

Allahabad Bank and what changes do they expect that can be brought about to have a smooth functioning of the loans department?

How far are the employees satisfied with the functioning of the loans department of their bank and how can the changes be brought about to make the functioning more effective and efficient?

METHODOLOGY

After we have discussed the relevant past research in regard to our research problem ,now

in this Chapter we are going to proceed and explain the research methodology that we

have used for our project. The main discussed issues will be based to the six proposed

stages of the research process by Zikmund (1994)

Problem discovery and definition

According to Malhotra and Birks (2003, p.31), problem definition can be defined “the

general problem and the identification of the specific components of the research

problem”. Parasuraman (1991) refer that is critical to define the problem in order to

communicate it correctly to both decision - makers and researchers, however at the same

time we should fully understand the scope and the nature of the problem avoiding any

misconceptions.

Research design

“The Research Design is the ‘blueprint’ that enables the investigator to come up with

solutions to these problems and guides him or her in the various stages of the research”

(Nachmias and Nachmias, 1996; Churchill, 1991). Research design involves different

research techniques that we are going to use to get the information needed relevant to the

problem, the measurement and scaling techniques for understanding the collected

information, the questionnaire design etc (Lawley and Gardiner, 1999; Malhotra and

Birks, 2003). Also Tull and Hawkins (1987) argue that one of important research

design’s goals is to maximize the accuracy of the gathered information to create a proper

budget level.

Research design can be broadly classified in some basic types. One useful classification

is the one that is related with the main target of the research into three main categories

which are: (i) Exploratory research, (ii) Descriptive research and (iii) Causal research

(e.g. Churchill, 1979; Green and Tull, 1978).

Exploratory research

The primary goals of research design are to help to the understanding of marketing

phenomena, determine the problem in a better way and provide additional insights and

ideas (Malhotra and Birks, 2003; McDaniel and Gates, 1999).

Descriptive research

Descriptive research is a very important research design method and may be undertaken

to describe something e.g. consumer’s beliefs and attitudes, other market characteristics

etc (Parasuraman, 1991; Jobber, 2004). According to Churchill (1979, p.53-54)

descriptive research can be used to describe the characteristics of certain groups, to

estimate the proportion of people in a specified population who behave in a certain way

and to make specific predictions.

Causal research

Causal research “is used to obtain evidence of cause-and-effect (causal) relationships”

(Malhotra and Birks, 2003, p.69). The most common types of causal studies are the

experiments, since they are the best to determine the cause and the effect (Churchill,

1979; Zikmund, 2000).

The research approach and strategies

This is the first stage of the research design; it involves the way that we are going to

conduct the research. The choice of the research is a difficult decision and it depends on

the nature and scope of the problem, the funding of the research and to the availability of

the time (Birn, 2000).

Secondary data

Secondary data are the data gathered or authored by another person who has a different

research purpose from that of the initial researcher (Bailey, 1982). Secondary data

include internal published data such as annual company reports, reports to stockholders

and external published data such as government reports and statistics (McDaniel & Gates,

1999; Peneault & McCarthy, 1997). In addition, another form of collecting secondary

data is the search engines (e.g. Google) where the data can be quickly and simply

collected (Jobber, 2004).

Primary data

Primary data are “the data originated by the researcher specifically address the research

problem” (Malhotra and Birks, 2003, p.85). Parasuraman (1991) argues that primary data

are necessary where the secondary data are unavailable or inappropriate and can be

collected by several methods. The purpose of primary data collection is the answering of

questions of the defined problem of the study (Dodge et al., 1982).

Below we are going to refer to the three main types of primary research.

Surveying

Surveys are regarded to be the most popular method of collecting primary data and are

used to describe marketing phenomena at a particular time (Dodge et al., 1982). “Survey

techniques are the techniques based upon the use of structured questionnaires given to a

sample of a population” (Malhotra and Birks, 2003, p.224).

The main advantages of surveys are that they are more objective and reliable; they have a

more representative sample of the target population; the gathered data can be manipulated

with the use of statistical techniques; the collection of the information is not time

consuming, costly and difficult (Dodge et al., 1982; Emory, 1980; Zikmund, 2000).

Observations

Observation method is defined as “the systematic process of recording the behavioural

patterns of people, objects and occurrences without questioning or communicating with

them” (Zikmund, 2000, p.217). McDaniel and Gates (1999) argue that there are three

conditions for using observation research. These are: a) the observation research duration

should be of relatively short duration; b) the needed information must be observable or

inferable; c) the behaviour of the interest should be relatively frequent, repetitive and

predictable.

Experiments

Experiment is “a research investigation in which conditions are controlled so that one or

more variables can be manipulated in order to test a hypothesis”. The main purpose of

the experimental research is the control of the research evaluation in order to evaluate

causal relationships between several variables (Zikmund, 2000, p.238).

The research method

After we have chosen the survey method as the research approach that we are going to

use we should talk now for the four options when choosing that method. As we have said

before, the survey method is based on the use of a structured questionnaire given to

respondents to obtain useful information (Malhotra and Birks, 2003).

Face-to-face surveys

Personal or face-to-face interviewing “is a two-way purposeful conversation initiated by

an interviewer to obtain information that is relevant to some research purpose” (Emory,

1980, p.293). The interviewer asks from the respondent to answer issues in the form of

attitudes, opinions, feelings, motives, intentions and so on; thus the personal interviewing

is regarded as an excellent data collection method because of the great personal

interaction between the interviewer and the respondent (Dodge et al., 1982).

Telephone surveys

Telephone survey can be characterized as a semi-personal method of collecting

information which is very popular because of the widespread acceptance of the telephone

from all the people as a basic communication tool (Nachmias and Nachmias, 1996).

Mail and internet surveys

A mail survey is self-administered questionnaire sent to respondents through the mail. On

the other hand, internet survey appears when a computer user intentionally navigates and

answers questions in a web site (Zikmund, 2000, p.201+210).

Questionnaire construction

“A questionnaire is simply a set of questions designed to generate the data necessary for

accomplishing a research project’s objectives” (Parasuraman, 1991, p.363). Malhotra

and Birks (2003) present the questionnaire design process in ten steps, as shown in Figure

3.2.

Figure 3.2: Questionnaire design process

Source: Malhotra N.K. and Birks D.F. (2003). “Marketing Research: An Applied

Approach”, 2nd European Edition, England: FT Prentice Hall

There are three conditions that are important researchers to take into consideration in

order to get a true response to questions. These are: i) the questions must be clear for

respondents; ii) respondents must be able to give the information; iii) respondents must

be reluctant to answer (Jobber, 2004).

Pilot testing

In order to identify and eliminate any potential problems in the functionality of the

questionnaire and ensure that there aren’t any mistakes in it,

Sampling

Another key component in the research process is the selection of the sample population

that we are going to study (Emory, 1980).

Data collection

As we have said in previous sessions we have used face-to-face interviews to collect any

data and information for our study.

4. LIMITATIONS

LIMITATIONS LIMITATIONS

Educational loan is not offered by Allahabad Bank in Bhopal.

Interest rates charged on CAR loan is very high.

Lot many formalities like notary, guarantors etc are involved.

The documentation part is very lengthy and time consuming.

They don’t have any customer redressal system.

Whenever any individual acquires for any loan from ALLAHABAD BANK.

bank, he does not gets a proper information and guidance from the staff working

their.

They give More priority to their personal work and do not readily listen to the

customer until they are done with their work, in short the customer does not holds

a top place in their priority list.

The staff does not gives proper directions and guidelines to guide the customer as

in how the customer should move further with the further proceedings.

Inspite of the centralized air conditioning the atmosphere inside is very sticky.

A lot of hidden charges are there at various transactional levels.

At time it is experienced that the staff working there is relatively inexperienced as

is comprises of the youth which does not live upto the expectations of the

customers.

The recovery system adopted by Allahabad Bank is considered to be unethical

and also illegal at times.

CHAPTER-II

INTRODUCTION TO THE

ORGANIZATION

INTRODUCTION TO THE TOPIC

CHAPTER-II

INTRODUCTION TO THE ORGANIZATION

Allahabad Bank

Allahabad Bank,(Hindi: इला�हा�बा�द बा�क) which began operations in 1865, now has its

head-quarters in Kolkata. Currently the bank has 2260 branches [1] across the country.

The Chairman and Managing Director of the bank is Shri J P Dua. The bank has a branch

in Hong Kong and a representative office in Shenzen. The bank's internet banking is

maintained by EBankWorks Team of TCS.

History

On April 24, 1865, a group of Europeans founded the bank at Allahabad, making

it the oldest Joint Stock bank in India.

In 1920, P&O Bank bought Allahabad Bank.

In 1923 the bank moved its headquarters to Calcutta.

In 1927, Chartered Bank of India, Australia and China acquired and amalgamated

P&O Bank. However, Chartered Bank continued to operate Allahabad Bank as a

separate entity.

On July 19, 1969, the Government of India nationalized Allahabad Bank, together

with 13 other banks.

In October, 1989 Allahabad Bank acquired United Industrial Bank, a Calcutta-

based bank that had been established in 1940.

In October, 2002, the bank came out with Initial Public Offer (IPO), which

reduced the Government's shareholding to 71%.

A second public offering in April, 2005, further reduced the Government

shareholding to 55%.

In June, 2006, the bank opened a representative office at Shenzen, China, its first

office outside India.

In February, 2007, Allahabad Bank opened its first overseas branch, in Hong

Kong.

CHAPTER-III DATA ANALYSIS & INTERPRETATION

CHAPTER-III DATA ANALYSIS & INTERPRETATION

Q1. Which loan have you taken?

S.NO. options No.of respondent(A) Educational loan 22(B) Home loan 6(C) Personal loan 2

INTERPRETATION:-

73% of the respondent loans have taken education loan.

Q2. Which types of loan do you prefer most?

S.no. Options No.of respondent(A) Educational loan 21(B) Home loan 7(C) Personal loan 2

INTERPRETATION:-

70% of the respondent loans have preferred education loan.

Q3. How many types of loan are provided by Allahabad bank?

S.no. Options No.of respondent(A) Educational loan 0(B) Home loan 0(C) Personal loan 0(D) All 30

INTERPRETATION:-

70% of the respondent loans have preferred education loan.

Q4. For how many years loan is provided by the bank?

S.no. Options No.of respondent(A) 1years 0(B) 2years 0(C) 3years 6(D) More than 3years 24

INTERPRETATION:-

80% of the respondent have taken loans for more than 3years which is provided by the

bank

Q5. How much time is given by bank to payback loan?

s.no. Options No.of respondent(A) 0 to 2 years 2(B) 2 to 4 years 13(C) More than 4 years 15

INTERPRETATION:-

80% of the respondent says that more than 4 years of time is given by bank to payback

loan

Q6. Which types of installment is best?

s.no. Options No.of respondent(A) Monthly 15(B) Quarterly 7(C) Half year 7(D) yearly 1

INTERPRETATION:-

50% of the respondent says that monthly installment types of installment are best.

Q7. How is EMI of loan?

s.no. Options No.of respondent(A) Affordable 30

(B)Not affordable 0

INTERPRETATION:-

100% of the respondent says that EMI of loan is affordable.

Q8. Which types of securities do they ask usually?

s.no. Options No.of respondent(A) In the form of Jewelry 1(B) Fixture 10(C) Fixed deposit 19

INTERPRETATION:-

63% of the respondent says that types of securities do they ask usually is fixed deposit.

Q9. Are you Satisfy with the rate of interest charged by Allahabad bank?

s.no. Options No.of respondent(A) Satisfy 29(B) Dissatisfy 1

INTERPRETATION:-

97% of the respondent says that they are Satisfy with the rate of interest

charged by Allahabad bank

Q10. Do your loans provide benefit of Zero percent interest?

S.no. Options No.of respondent(A) Agree 29(B) Disagree 1

INTERPRETATION:-

97% of the respondent says that loans provide benefit of Zero percent interest.

Q11. Is the facility of providing loan is better than other bank?

INTERPRETATION:-

100% of the respondent says that the facility of providing loan is better than other bank

S.no. Options No.of respondent(A) Yes 30(B) No 0

Q12. Do you get timely loan for your benefit?

s.no. optionsNo .of respondent

(A) Agree 11(B) Disagree 11(C) can’t say 8

INTERPRETATION:-

37% of the respondent says that they are agreeing get timely loan for your benefit.

Q13. Are you Satisfy with the rate of interest changed?

S.no. Options No.of respondent(A) Ok 10(B) Less than competitor 1(C) More than competitor 11(D) No idea 0

INTERPRETATION:-

50% of the respondent says that they more than competitor satisfy with the rate of interest

changed.

Q14. Do you get any relaxation in getting the loan?

s.no. options no. of respondent(A) Agree 22(B) Disagree 2(C) can’t say 6

INTERPRETATION:-

73% of the respondent says that they are get any relaxation in getting the loan

Q15. Are you Satisfy with the down payment system of the bank?

s.no. options no.of respondent(A) Satisfy 30(B) Dissatisfy 0

INTERPRETATION:-

73% of the respondent says that they are Satisfy with the down payment system of the

bank.

Q16. According to your view it is easy to pay down payment with out any Complication?

s.no. options no.of respondent(A) Agree 28(B) Disagree 2

INTERPRETATION:-

93% of the respondent says that According to their view it is easy to pay down payment

without any Complication

Q17. Are you Satisfy with the loan demonstration by the bank?

S.no. Options No.of respondent(A) Satisfy 30(B) Dissatisfy 0

INTERPRETATION:-

100% of the respondent says that they are Satisfy with the loan demonstration by the

bank.

Q18. Do you agree with the repayment facility of loan is simple in Allahabad bank?

INTERPRETATION:-

100% of the respondent says that they are agree with the repayment facility of loan is

simple in Allahabad bank

S.no. Options No.of respondent(A) Agree 30(B) Disagree 0

Q19. Do you find this bank in superior over other banks in providing loan facility?

S.no. Options No.of respondent(A) Agree 29(B) Disagree 1

INTERPRETATION:-

100% of the respondent says that they are found this bank in superior over other banks in

providing loan facility.

Q20. Do you fully agree with the terms & condition of Allahabad bank?

S.no. Options No.of respondent(A) Strongly agree 5(B) Agree 23(C) Disagree 0(D) Can’t say 2

INTERPRETATION:-

77% of the respondent says that they are agreeing with the terms & condition of Allahabad bank.

CHAPTER-IV

MAJOR FINDINGS

SUGGESTIONS

CONCLUSION

CHAPTER-IV

MAJOR FINDINGSThe following findings have been interprets from the above graph

73% of the respondent loans have taken education loan.

70% of the respondent loans have preferred education loan.

70% of the respondent loans have preferred education loan.

80% of the respondent have taken loans for more than 3years which is provided

by the bank

80% of the respondent says that more than 4 years of time is given by bank to

payback loan

50% of the respondent says that monthly installment types of installment are best.

100% of the respondent says that EMI of loan is affordable.

63% of the respondent says that types of securities do they ask usually is fixed

deposit.

97% of the respondent says that they are Satisfy with the rate of interest charged

by Allahabad bank

97% of the respondent says that loans provide benefit of Zero percent interest.

100% of the respondent says that the facility of providing loan is better than other

bank

37% of the respondent says that they are agreeing get timely loan for your benefit.

50% of the respondent says that they more than competitor satisfy with the rate of

interest changed.

73% of the respondent says that they are get any relaxation in getting the loan

73% of the respondent says that they are Satisfy with the down payment system of

the bank.

93% of the respondent says that According to their view it is easy to pay down

payment without any Complication

100% of the respondent says that they are Satisfy with the loan demonstration by

the bank.

100% of the respondent says that they are agree with the repayment facility of

loan is simple in Allahabad bank

100% of the respondent says that they are found this bank in superior over other

banks in providing loan facility.

77% of the respondent says that they are agreeing with the terms & condition of

Allahabad bank.

SUGGESTIONS

According to banking officials the brochures and pamphlets are not

for the general public and are published only for the staff members of the

Allahabad Bank As all the other banks including their own diversified business

unit keeps brochures for the general public so even they should start providing

brochures. as it is when all the information is also available on the net there is no

point hiding such information from public.

According to the banking ombudsman scheme every bank must have a customer

grievances cell within their organization, but still this is not strictly practiced in

most of the organizations, if the ALLAHABAD BANK can handle the customer

queries efficiently then they can take an edge over their competitors.

The formalities involved in acquiring educational loan are very lengthy and time

consuming so certain changes should be brought about in the documentation part

to make it more simpler and user friendly.

Although a separate cell for providing information regarding the loans is their

within an organization still the information which they provide to the individuals

is not satisfactory as they neither have the brochure with them nor do they give

proper guidelines to the individuals as from where they can be obtained.

The loan recovery pattern followed by Allahabad Bank is very harsh and is

generally not liked by the customers.

Instead of keeping the brochures and pamphlets in the locked almirahs inside the

store rooms They should keep the brochures and pamphlets at a place from where

they are easily within the reach of the visitors, so that as and when any individual

comes to seek any information related to loans he can first take a look over a

brochure and still if he is not satisfied and holds any further queries which need to

be sorted out then he should avail the help from the person sitting at the desk.

Instead of making an individual run every time to the notary shop to get the

notary work done, they should hire a person who would do this on the behalf of

an applicant for the bank, and a sum of money should be charged from the

applicant so that both the bank and the applicant are not bound with such time

consuming formalities. This will be a kind of additional service extended by the

bank to the applicant, through which a bank can avail the benefits of the word of

mouth publicity in future.

The basic requirements like fresh drinking water and toilets should be their not

only for the employees but also for the general public who visits the bank.

One time information should be given to the applicant so that he is not asked to

come again and again to fulfill the obligations of the bank.

CONCLUSION

CONCLUSION

Believe it or not, buying a car is still considered a status symbol in India. Though the

advent of the small car has created a huge dent in this reputation, but the fact still remains

that a car is a cherished dream of every Indian. Owning a car is made simpler by the

fabulous offers by various banks and car finance companies in India on almost every car

model. Now, you don't need to book a car ( most of the models) in advance, there is no

requirement that you pay entire cost of the car in cash, just have a part of the total cost,

add some creditworthiness and rest is filled up by a decent car loan. Almost every car be

it used or new is financed and acessible to all those who inspire confidence in banks and

car finance companies.

With the car loan taking so much importance and lots and lots of information bombarded

on the average consumer by different media, it is very easy to get lured into a trap. To

know the intricacies of car loans is the only way one can avoid getting into an unwanted

situation and later repent in leisure. Here Are a few such things, which can save a lot for

every car loan customer.

Earlier it was very difficult for an individual to buy a his dream car because of the

financial constraints.. The boom in the banking sector has led to release of

large amount of funds for car loan. Now, car loans are easily available

from various banks in India and this change is encouraging more and

more people to owe luxurious and as per comfort cars despite of their

financial shortcomings. Many nationalized banks have come up with

various car loan schemes that people can benefit from.

Loans from Indian Banks are easily available and the other loans that you can get include

the Auto loans, Commercial loans, equipment loans, travel and real estate loans. Some of

the Indian banks which offer loans are United Bank of India, IDBI bank, Punjab

National Bank, State Bank of India and Oriental bank of commerce etc.The maximum

amount of loan offered for car in India is Rs.10 lacs. Different banks have different set of

formalities and EMI pattern followed

ALLAHABAD BANK is better than other banks in many respects as it offers Good

healthy infrastructure, strong heirarchial pattern, proper mix of the youth and the wel

experienced staff in their hierarchy, core banking solutions, net banking facility, SMS

facility, ATM facility, e-banking facility etc. There are many banks in Bhopal which do

not extend education loan in Bhopal like standard chartered bank, IDBI bank etc.

BIBLIOGRAPHY

BIBLIOGRAPHY1. WEBSITES:

www.Allahabad Bank.com

www.eassytown.com

www.google.com

www.valueresearchonline.com

2. BOOKS AND MAGAZINES

BERI, G.C. (1999) Marketing Research, Tata McgrawHill.

BHALLA,V.K. (2003) Mgt. Of Financial Services, Anmol publication.

Kothari, C.R. (1996) Research Methodology, Wishwa Prakashan.

Kotler, Philip (1999) Marketing Mgt. Tata McGrawHill

RAO, RAMESH, K.S. (1989) Fundamentals of Financial Management, Macmilan

Publishing

Fact Sheet of Allahabad Bank Ltd.

Fact Sheet of ICICI Bank Ltd.

3. OTHER RESOURCES

Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1994), "Reassessment of

expectations as a comparison standard in measuring service quality: implications

for future research", Journal of Marketing, Vol. 58, pp. 111-124.

Interrogating SERVQUAL: a critical assessment of service quality measurement

in a high street retail bank, Karin

Newman, Professor, Middlesex University Business School, London, UK