PROJECT REPORT ON Personal loans and financing in Fullerton India Credit ltd. SHOP NO. 11, 2ND FLOOR, MAK PLAZA, 75A RAJPUR ROAD ROAD, DEHRADUN
UNDER THE GUIDANCE OF MRS. HIMANI BHANDARI (Alternate – Channel Officer)
SUBMITTED TO :
SUBMITTED BY:
MR. MANISH DWIVEDI
SHILPA NEGI
Faculty – Deptt. Of Management Studies
MBA 3 RD SEM
GEU, Dehradun
ACKNOWLEDGEMENT
I feel great pleasure pleasure to acknowledge acknowledge our indebtness indebtness to my guide Mr. Manish Manish Dwive Dwivedi di . It is a pleas pleasur uree to expre express ss my than thanks ks and gratit gratitude ude to all all the persons persons in FULLER FULLERTON TON CREDIT CREDIT INDIA INDIA LTD Dehradun Dehradun where where I got the chance, chance, sup suppor portt and encouragement that enabled us to conduct my study within the stipulated period of time.
I sincerely express my gratitude for their indigenous and able guidance , constant encouragement and for the discussion they had with the tenure of my work.
I once again take the opportunity to convey my heartiest thanks to all those who were connected connected with the project directly and have provide me with a wonderful wonderful experience and learning opportunity.
SHILPA NEGI MBA – III – SEM (FINANCE) GRAPHIC ERA UNIVERSITY
TABLE OF CONTENT
1.Acknowledgement
2.Research Methodology
3.Intoduction
4.Proposition and values
5.Review and litrature
6.Analysis of data
7.Sugession
8.References
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The Research Methodology includes the various methods and techniques for conducting a Research. This project project comes under the head of “Marketing “Marketing Research”. Research”. The “Marketing “Marketing Research” Research” is the systematic design, collection, analysis and reporting of data and finding relevant solution to a specific marketing situation or problem”. Sampling Plan – Sampling can be defined as the section of some part of an aggregate or totality on the basis of which judgment or an inference about aggregate or totality is made. The sampling plan helps in decision making in the following areas: Sampl Samplee
size size – Samp Sample le size size refer referss to the the total total num numbe bers rs of item itemss about about which which the
information is desired. The sample size of the study is 100. Data
Collection - Information has been collected from both Primary and Secondary Data.
Primary Data – Primary data are those, which are collected for the first time, and thus happen to be original in character. Primary Data has been collected in this study by conducting survey through Questionnaire.
Secondary Data – Secondary Data are those which have already been collected by someone else and which already had been passed through the statistical process. Secondary Secondary data has been collected collected in this study through Magazines, Magazines, Web sites, Newspaper and Journals.
INTRODUCTION…
Brand Origin
Fort Fullerton, named after Governor Robert Fullerton, was created to protect Singapore. Singapo Singapore re was then known known as Temasek Temasek - the 'sea town'. town'. Our parent company, company, Temasek Temasek Holdings, incorporated in 1974, is one of Asia's biggest investment firms, with a diversified US $134 Billion portfolio, spanning various industries. Financial services is one of the key focus area of Temasek. Carrying forward this legacy, Fullerton india is deeply committed to provide quality quality financial financial services services to the growing growing Indian masses masses..
Fullerton India Credit Company Limited(FICCL) is a Non Banking Finance Company (NBFC) with an “A” category license, issued by the Reserve Bank ofIndia. It is a fully owned subsidiary of “Fullerton Financial Holdings Pvt ltd.”Singapore. The Company was established established in 1994. In December 2005 theManagement theManagement of this Company changed, with an investor making an investment inthe equity capital of this Company under the Foreign Direct Direct Invest Investment ment Policy.99. Policy.99.99% 99% of the share share capital capital of FICCL FICCL is held by Angelic Angelicaa Investment Pte. Ltd.,Singapore. Then they began their operations with new management in India inJanuary 2006. The new management team is headed by a professional CEO and Manag Managing ing Dire Direct ctor, or, suppo support rted ed by a team team of profe profess ssio ional nals, s, with with exper experti tise se in area area of Consumer Consumer Finance, Middle Middle market lending and SME businesses. businesses. These professionals professionals have worked in various Banks and Financial Financial institutions, institutions, and havegood commercial commercial experience. The company operates on a wide range of financial products and services for customers related to the retail markets and commercial mass markets. The company provides financial support to its clients through basically two policies namely Fullerton India Parivaar and
Fullerton India Vyapar. Fullerton India Parivaar provides financial security to salaried individuals where as Fullerton India Vyapaar offers financial support to people involved in small scale businesses or firms of their own. The company follows a customer centric, community based business model, and is committed to provide quality financial services to the growing Indian masses. The Company believes in a branch centric community led relationship based approach in meeting customer needs rather than using the services of a third party or a vendor such as Direct Selling Agents. Under the organizational structure, the Company has in each of its branches, a team of Relationship Managers and Officers who meet customers customers to understand their business business or profession and credit requirements. requirements. The Company Company being being in the financial financial sector sector provides provides Loans Loans and financi financial al service servicess to customers such as Individuals, Professionals, Partnership firms, Sole proprietorship and Small and Medium companies. To service its customers, the Company has two major divisions Vyapaar and Parivaar.
Products Offered By the Company Fullerton India Parivaar has introduced a new concept in the Indian market. The company have branches, which cater only to the specific needs of Salaried Individuals. Its Parivaar branches branches provide customized customized products and solutions, solutions, especially especially designed designed keeping in mind the unique circumstances and requirements of this segment. The Parivaar Loans cover a wise range of products, which include: · Unsecured Personal Loans · Secured Loans · Home Finance · Home Equity Loans
Unsecured Personal Loans An unsecured loan is a loan that is not backed by collateral, it is also known as a signature signature loan or personal personal loan. Unsecured loans are based solely upon the borrower's credit rating.
An unsecured loan is considered much cheaper and carries less risk to the borrower.
Types of Unsecured loans
There are three types of unsecured loans. · First is a personal unsecured loan, which means a loan that, a person individually responsible for the repayment.
· Second Second is an uns unsecur ecured ed bus busine iness ss loan loan which which leaves leaves the business business respons responsible ible for the repayment.
· Third is an unsecured business loan with a personal guarantee. In this type of unsecured loan the borrower is the business, but guarantor will be the payer if the business defaults to pay the loan. loan.
Secured Loans A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral. In any event if the borrower defaults to repay, then the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower. There are two purposes for a loan secured by debt. In the first purpose, by extending the loan through securing the debt, the creditor is relieved of most of the financial risks involved because it allows the creditor to take the property in the event that the debt is not properly repaid. In exchange, this permits the second purpose where the debtors may receive loans on more favorable terms than that available for unsecured debt, or to be extended credit under circumstances when credit under terms of unsecured debt would not be extended at all. The creditor may offer a loan with attractive interest rates and repayment periods for the secured debt.
Home Equity Loan A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity. Types of Home Equity Loan •
Closed end home equity loan: The borrower receives a lump sum at the time of the
closing and cannot borrow further. The maximum amount of money that can be borrowed borrowed is determined determined by variables variables including including credit history, history, income, income, and the appraised value of the collateral, among others. It is common to be able to borrow up to 100% of the appraised value of the home, less any liens, although there are lenders lenders that will go above 100% when doing over-equity loans. However, However, state law governs in this area; for example, example, Texas (which was, for many years, the only state to not allow home equity loans) only allows borrowing up to 80% of equity. Closedend home equity loans generally have fixed rates and can be amortized for periods usually up to 15 years. Some home equity loans offer reduced amortization whereby at the end of the term, a balloon payment is due. These larger lump-sum payments can be avoided by paying above the minimum payment or refinancingthe loan. •
Open end home equity loan: This is a revolving credit loan, also referred to as a
home equity line of credit, where the borrower can choose when and how often to borrow against the equity in the property, with the lender setting setting an initial limit to the credit line based on criteria similar to those used for closed-end loans. Like the closed-end loan, it may be possible to borrow up to 100% of the value of a home, less any liens. These lines of credit are available up to 30 years, usually at a variable interest rate. The minimum monthly payment can be as low as only the interest that is due. Typically, the interest rate is based on the Prime rate plus a margin. Fullerton India Vyapaar strives to improve the business and lives of the small business community. Their business is focused only on small establishments with a turnover of less than Rs.25 Mn p.a.
Relationship Approach of the Company
The Company believes in a branch centric community led Relationship based approach in meeting customer needs rather than using the services of a third party or a vendor such as Direct Selling Agents. Under the organizational structure, the Company has in each of it’s branches, branches, a team of Relationship Relationship Managers Managers and Officers Officers who meet customer customerss to understand understand their business or profession and their credit requirements. Both the Vyapaar and Parivaar divisi divisions ons of the Company Company leverage leverage the relati relationsh onship ip approac approach h in establi establishin shing g a credit credit relationship between the Company and the borrower. Loans are granted on the basis of completed applications, completing the Know-Your-Customer (KYC) norms, discussion with the customers about the terms of their loan, rate of interest, repayment arrangement, etc. The branch only services customers in a limited area around the physical location of the branch. The Company’s Company’s general policy is to be reasonable, reasonable, transparent transparent and fair with its cust custom omer ers.T s.The he
Comp Company any
follo follows ws
esta establ blish ished ed
proce procedur dures es,,
under und erst stand andss
custo custome mer r
require requirement mentss and is reasona reasonable ble in all its dealings dealings with customers customers.. The design of the application application forms and the relationship relationship based processes, processes, are to make sure that the Company Company is transparent in its dealings and transactions. It is with this in mind that the Company has set up the following guidelines as a Fair Practices Code in dealing with its customers
Fair Practices Code and Guidelines in Company The following are the guidelines as a fair practices code in dealing with its customer. 1. The current application forms capture full details of the customer i.e. age, profession, business, business, office & residential residential address, address, income details details and other requirements. requirements. The application forms indicate the criteria for minimum and maximum finance available for personal personal loans, automobile automobile loans. The application application forms specify the documentation documentation requirements in addition to initial scrutiny of documents submitted. The Company may call for additional documents for verification purposes. The application forms are num umb bered and and one section of the form orm is given ven bac back to the Customer as an acknowledgement. The Company keeps a record of acceptance of terms and conditions by keepi keeping ng the the origi original nal agre agreem ement entss sign signed ed by the the custom customer er and and provi provide dess a copy copy of the Agreement or terms and conditions to its customers.
2. All applications are verified and processed within a reasonable period of time. All applica applicatio tions ns would would go through through a De-dupl De-duplicat ication ion and Fraud Fraud Check Check though though interna internally lly establi establishe shed d procedur procedures es of the Company Company,, before before loans loans are proces processed sed or approve approved. d. The applications which do not satisfy the Deduplication or Fraud Check criteria, would be automatically rejected. Documents needed from the customers will be collected before disbursement of loan.
3. The terms and conditions of the loan are clearly mentioned in the Loan Agreement. The Loan Agreement would specify the tenure, the amount of the loan, applicable rate of interest, the Equated Monthly Installment (EMI) payments and other fees charged by the Company. Processing fee, if collected would be clearly mentioned to the customer. A Welcome Letter is also sent to our customers with Key details & Repayment Schedule which mentions the EMIs, split by Principal and Interest components
4. In the event that the loan is rejected, the Company would communicate to the Customer verball verbally y or in writing writing about about the rejecti rejection. on. The Relati Relationsh onship ip Manage Managers/ rs/ Officer Officerss are empowered to convey the information of the rejection of the loan verbally.
5. Customers at the time of disbursement of loan are advised about facilities available to them and repayments they need to make from time to time. In any event the Company under und erta takes kes to give give full full deta details ils of the the loan, loan, its its curr current ent stat status, us, mo mont nthly hly or quart quarter erly ly repayments required from time to time on the basis of request made by the Customers.
6. The Company would release all the securities to the customer once the loan is repaid and no dues are outstanding to the Company.
7. In case of request of a transfer of a loan account from one borrower or a lender to another Company or a Bank, the transfer would be completed within 21 days of such a request, provided provided the customer customer pays pays interest interest and all all Company Company dues up to date. date.
8. As far far as recov recover eries ies of loans loans are conce concerne rned d the the Compa Company ny woul would d follo follow w its its own own Collection Policy and procedure which is designed to be customer friendly. Under the Company’s collection policy detailed guidelines are laid down for following the Code of Conduct, with delinquent customers. Our collection procedures are constantly checked from a customer’s point of view.
9. The Company has a detailed policy on customer satisfaction and complaints received. As part of the Customer satisfaction satisfaction assessment, assessment, detailed detailed analysis of customer preferences preferences and their grievances or responses are taken into account in improving our operations constantly. Complaints Complaints received are personally attended to by the Branch Manager Manager and resolutions resolutions are tracked by centrally by the Corporate Office in Mumbai. All grievances and complaints and resolutions made are presented regularly to the Board of Directors for their review.
Fullerton India's Propositions and Values
Propositions · The biggest biggest proposi propositio tion n of Fuller Fullerton ton India India is custome customerr focus, focus, both, both, in product product design/ design/ customization and service. As an organization, they are structured not around products but along along custome customerr segment segments. s. They They have separa separate te vertic verticals als for the Salarie Salaried d Individ Individuals uals (Parivaar) and for Small sized shop owners & Entrepreneurs (Vyapaar).
· This model lends itself to better understanding of our customers' financial situation and for a better products offering to them. With this holistic understanding of the customers, the company is also able to combine secured and unsecured products and structure the loan in a manner which is ideally suited to meet individual customer requirements.
· The company employed Relationship Officers to service the needs of the customers. There are no agents or other intermediaries, coming in between the customer and the company. These Relationship Officers are the end-to end solution providers and act as a single point of contact" for all Product, Process and Service related needs of the customer.
· The branches do business only within a 5 km radius. The customers' office or residence has to be within the branch coverage area. This closer proximity of the customers to the branches branches ensures ensures better better understanding understanding of the local environment environment and immedia immediate te situation. situation.
· The company participates participates actively actively in serving the community community in and around the vicinity of their their branch. branch. The interest interest of company company in the locality locality extends extends beyond just a bus busines inesss relationship. The company believes in participating in other aspects of development of the community as well.
· The business business envisage envisagess setting setting up branche branchess with with employ employees ees dealing dealing directly directly with with the customers. This offering has elicited an enthusiastic response from customers as it gives higher degree of transparency and faster value delivery.
· The relationship model includes a deep assessment of a customers' business resulting in an omnibu omn ibuss facilit facility y with with a flexibl flexiblee combina combination tion of usage usage in parts, parts, flexibi flexibilit lity y betwee between n a combination of short and long tenures, and from unsecured to partially secured and fully secured facilities.
· The facility set up for a customer is based on his risk profile, repayment capacity, as well as proposed expansion plan. A Relationship Officer is assigned to address incremental product needs, as well as for service requirements, requirements, through through a process process of continuous continuous engagement. The business strives to deliver lifelong financing support and regular facility enhancement, based on business growth.
· Businesses are built on people, and the company hires relevant local talent to serve the market, so that there is a connect between the employees and customers.
.The business wishes to bring a full service proposition encompassing loans and liabilities to the the sm smal alll busi busines nesss owner owners. s. Besi Beside dess the the vari variet ety y of loans loans,, life life insu insura rance nce has been been introduced which will also be delivered through the branch based Relationship Officers.
· The business business uses advanced technology tools to record customer customer history, and leverage leverage track record to enhance credit exposure in line with the customer business cycle. This ensures continuous support through seasonal peaks.
Objectives of the Study The study was conducted to aiming at fulfilling the following objectives:
· To find the preferences of customer regarding various types of loan: This objective
focused focused on the judgment judgment of customer customer prefer p references ences regarding various types of loan provided
by Fullerton Fullerton India such as Secured Secured Loan, Unsecured Unsecured loans and Home Equity Loan. The result of this objective will provide the most preferable type of loan among various types of loan provided by Fullerton India. So this objective will help the company to Focus on most customer’s preferable area.
· To know the amount amount of loan generally generally availed availed by the responde respondents: nts: This objective
include the study of the amount of loan which is generally borrowed by the customers.
· To study the Advertising effectiveness in creating awareness among the public: This
objective will help to judge the effectiveness of advertising strategy used by Fullerton India to create the awareness among the potential customer about the products and services offered by the company.
· To study study the the satis satisfac factio tion n level level of custo custome merr rega regardi rding ng differ different ent loans loans schem schemes es provided by Fullerton India Credit Company Ltd: The final objective of the research is
to study the satisfaction level of the customer who borrowed fund under particular scheme offered by Fullerton India.
STUDY OF PERSONAL LOAN
WHAT IS PERSONAL LOAN Personal Loan is an unsecured loan for personal use which doesn’t require any security or collateral and can be availed for any purpose, be it a wedding expenditure, a holiday or purchasing purchasing consumer durables, the personal personal loan is very handy & caters to all your needs. The amount of loan can be ranged from Rs. 50,000 – Rs. 20 lakh & the tenure for repaying the loan varies from 1 to 5 years.
BENEFIT OF PERSONAL LOAN
A Loan without security : A Personal Loan is not a secured loan (bank doesn’t ask for any
security or collateral) as against a Secured Loan where one is required to pledge a house or other security to acquire a loan.
2. Simple Documentation: A Personal Loan can be accessed with minimal paperwork or
documentation & doesn’t take much time to procure as against a Secured Loan.
3. No specification about the end use of the loan amount : You are not required to
disclose the end use of the money borrowed, Banks are concerned about the fact that whether the borrower is able to pay back the loan with interest before the due date or not and they confirm this by checking the income, employment or business & other factors of the borrower.
4. Big Loan amount : Personal Loan is a means to fulfill bigger loan requirement, you can
take a loan ranging from Rs. 50,000 to Rs. 20 lakh.
BASIS TO COMPARE PERSONAL LOAN • Compare Interest Rates : Personal Loan can be compared primarily on the basis of interest rates which vary across banks depending on your profile which is further linked to your occupation, salary/income, credit history etc. The personal The personal loan interest interest rate rate ranges from 12% to 25%, you must go for that loan which is offering you at the minimum rate.
• Other Charges : You should also check on the other charges like processing fee, pre payment penalties penalties and documentatio documentation n fee because because they increase increase the the overall overall loan cost cost and vary widely across banks.
• Evaluation of various Loan offers : You should first calculate the entire loan cost across banks which which constitute constitutess the rate rate of interest interest & banks banks other other charges. charges. Evaluate Evaluate offers keeping the tenure of the loan constant & compare the rate of interest, EMIs & other charges. This process process will help you get get the Best Best Loan deal. deal.
• EMIs : EMI is the monthly equated installment which constitutes the principal amount and the interest on the principal equally divided across each month in the loan tenure. Use our EMI our EMI Calculator to compare EMIs across banks
• Tenure : Tenure is the time frame for the personal loan payments to be paid back to the bank; it ranges from from 1 year year to 5 years. years. If you have a longer tenure tenure you will end end up paying more interest & will have lower EMI, on the other hand shorter loan tenure will carry higher EMIs & the interest amount is less. You must compare the loan offers by keeping the tenure constant.
• Eligibility Check : Before taking a personal loan you must know the eligibility criteria’s offered by various banks on the basis of which they offer loans and also compare personal loan banks. banks. Checking the eligibility parameters will help you find the best loan deal. Check out your eligibility by various banks. banks.
• Turnaround time : It becomes one of the most important factors in evaluation of your loan application when you are in a dire need of money. Turnaround time is the time which banks take take in processing processing your loan loan application; application; you must check check this parameter parameter which varies from bank to bank.
CHARGES INVOLVE IN PERSONAL LOAN : • Processing fee : It is a fee charged by banks from the borrowers to process their loan application;
it
is
normally
between
1-2
per percentage
of
the
loan
amount. nt.
• Prepayment fee : Banks charge borrowers with a fee when they pay the loan EMIs before the tenu tenure re whic which h norm normal ally ly is betw betwee een n 2-5% 2-5% of the the outs outsta tand ndin ing g loan loan amou amount nt..
• Late penalties : When there is a delay in paying your monthly EMIs of your loan, banks charge a late payment fee with your EMIs. They normally range from 2-3% of the EMI.
• Cheque bounce charges : Banks charge between between Rs. 250-500 for every bounced cheque given for the payment of the loan amount owing to the insufficient funds in your account.
Documents Documents required in Personal Loan The documentation process in personal loan is very fast as against secured loans. Following documents are required by financial institutions to process the loan application:
• Identity proof • 3 to 6 months Bank statements • Residence proof • Salary slip • Guarantors & their same set of documents In case of self-employed banks require balance sheets, profit & loss account, partnership deed & other mandatory documents etc.
PERSONAL LOAN CRITERIA BY VARIOUS BANKS Banks offer Personal Loan to borrowers depending on various factors such as income, employment, continuity of business so as to make sure that they repay the loan with interest before the due date. date. The eligibili eligibility ty criterion criterion of a Personal Personal Loan Loan is primaril primarily y based on the work profile of a loan seeker which is broadly divided into the following two classes: - Self-employed - Salaried In addition to the above factors banks also consider other aspects such as age, work experience, existing relationship with the bank, repayment capacity etc. To find your eligibility Criteria across various banks in accordance with the above parameters; parameters; Deal4Loans Deal4Loans has brought brought in the the Eligibility Criteria Check for Personal Loan seekers.
BANK Rate
HDFC Bank of 15.5% - 22%
Citi Bank 16.5% to 20%
Fullerton bank 18% - 28%
2% of loan amount
2%
Interest Processing
2%
Fee
account in HDFC -
Loan
other wise 2.5% Rs.50,000
Amount Prepayment
Rs.15,00,000 4%
Rs.15,00,000 5%
4%
Charges Disbursal
2Days - 7Days
2 working days
4 working days
Time Doccum Do umen ents ts
Ide den nti tity ty Pr Pro oof :
Identity Proof:
Identity Proof :
Passport/ Driving
Passport/ Driving
Passport/ Driving
License/PAN card/
License/PAN card/Photo License/PAN card/
Photo credit card
credit card (with
Photo credit card (with
(with embossed
embossed Signature and
embossed Signature and
Signature and last
last two months
last two months
if
salaried
- Rs.50,000
- Rs.40,000 - Rs.5,00,000
two months
statement)/ banker’s
statement)/ banker’s
statement)/ banker’s
sign verification.
sign verification
sign verification
(Anyone of the above) Age Proof: PAN Card/
(Anyone of the above) Age Proof : PAN Card/
Passport/ Driving
Passport/ Driving
License /School leaving
License /School leaving
Card/ Passport/
certificate/ Voter’s
certificate/ Voter’s card/
Driving License /
card/BirthCertificate/
BirthCertificate/ LIC
School leaving
LIC policy (only for age policy (only (only for age age
certificate/ Voter’s
Proof). (Anyone of the
Proof). (Anyone of the
card/BirthCertificate/
above) Address Proof :
above) Address Proof :
Passport/ Telephone bill
Passport/ Telephone bill
(BSNL/MTNL)/
(BSNL/MTNL)/
Electricity bill/ Title
Electricity bill/ Title
Passport/ Telephone
deed of property/Rental
deed of property/Rental
bill (BSNL/M (BSNL/MTNL)/ TNL)/
agreement/Driving
agreement/ Driving
Electricity bill/ Title
license/ Election ID
license/ Election ID
deed of
card/Photo-credit card
card/ Photo-credit card
property/Rental propert y/Rental
(with last two month
(with last two month
agreement/ Driving
statements). (Anyone of statements) (Anyone of
license/ Election ID
the above) Income Proof: Latest 3
the above) Income Proof : Latest 3
month salary slip
months salary slip
(computerized pay slip
(Computerized pay slip
with company Logo/pay
with company Logo/pay
slip on company
slip on company letter
letterhead) (Anyone of
head) (Anyone of the
the above) Job Continuity Proof :
above) Job Continuity Proof :
Form 16/relieving
Form 16/relieving
(Anyone of the above) Age Proof : PAN
LIC policy (only for age Proof). (Anyone of the above) Address Proof :
card/ Photo-credit card (with last two month statements) (Anyone of the above) Income Proof :
Latest salary slip/current dated salary Certificate with latest form 16
letter/appointment Letter letter/appointment (for last two months)
Letter. (Anyone of the
(Anyone of the
(Anyone of the above) Banking History :
above) Banking History :
Bank statements of
Bank statements of
Proof : Form
latest 6 months and
latest 6 months (Anyone
16/relieving
Existing loan sanction
of the above)
letter/appointment
letter if any. (Anyone of
Letter (for last two
the above)
above) Job Continuity
months) (Anyone of the above) Banking History :
Bank statements of latest 2 months/ 3 months bank passbook passboo k (Anyone of the above)
HOW DOES THE CIBIL SCORES AFFECT YOUR LOAN APPLICATION? This a norm wherein the banks before giving Personal Loan checks the database of all loan borrowers borrowers in the the country country by the Credit Credit Informat Information ion Bureau Bureau of India India (CIBIL) (CIBIL) which which is called called the Cibil Score. If there has been a default in your loan payment; your loan application would certainly be rejected. Your Cibil score ranges from 100 to 999, for instance if your credit score is 100 then your loan application might be out rightly rejected. On other hand if it is higher say 800, then your loan application would be processed faster & will be rewarded with lower interest rates & discounts in processing fee & other charges. You can
improve your credit score by repaying your loan EMIs on time and always pay the minimum payment on your credit your credit card to avert from the bad credit score.
Fullerton India Personal Loan Fullerton India is a Non Banking Finance Company. The Company started its operations in January 2006.Fullerton offers you a wide range of financial products like Home Loans, Loans, home equity loans Business Loans and life insurance. It has more than 800 branches across India. Fullerton India Personal Loan offers:
• Simplicity - Easy to understand, simple processes and standard documentation • Speed - Average turnaround time in loan processing is just two days • One of the lowest Personal Loan Interest Rates. Rates. • Minimum Documentation.
Eligibility Criteria for Fullerton India Personal Loan Age of Applicant No. of years years in employme employment nt Current Experience Net Monthly Monthly Income Income
Min-21 years ; Max-60 years. 3 years & above 6 months & above Rs. 12,500/12,500/- & above above
Loan Amount offered by Fullerton India Minimum Funding Maximum Funding
Rs. 40,000/Rs. 5,00,000/-
Loan Tenure offered by Fullerton India Minimum Tenure
12 months
Maximum Tenure
60 months
Turn Around Time of Fullerton India Personal Loan Turn around time
4 working days
Processing Fee of Fullerton India Personal Loan Processing fee
2.5% to 3.5% of loan amount
Prepaymentt Charges of Fullerton India Personal Loan Prepaymen Foreclosure Charges
4% of outstanding principal (Can be foreclosed after 6 months only)
Salary available for making EMI’s Above Rs. 15,000 p.m
60% of salary is considered
Documents Required for Fullerton India Personal Loan Passport/ driving license/PAN card/ Photo Identity Proof
Age Proof
credit card (with embossed Signature and last two months statement)/ banker’s sign verification PAN Card/ Passport/ driving license/ School leaving certificate/ Voter’s card/ BirthCertificate/ LIC policy (only for age
Address Proof
Proof). Passport/ Telephone bill (BSNL/MTNL)/ Electricity bill/ Title deed of property/Rental agreement/ Driving license/ Election ID card/ Photo-credit card (with last two month
Income Proof
statements) Latest 3 months salary slip (Computerized pay slip with company company Logo/pay Logo/pay slip slip on
Job Continuity Proof
company letter head) Form 16/relieving letter/appointment Letter.
Banking History
Bank statements of latest 6 months
FAQs ON PERSONAL LOANS :
What is a Personal loan?
An unsecured loan is called a Personal loan. loan. This implies that you don’t have to give any security, as with a car loan or a home loan, loan, where the underlying asset is mortgaged with the bank. Normally, the bank does not ask for guarantors either. More advantages: minimum documentation and speedy clearance (within three to seven days of applying). And there is no monitoring of 'end use' -- you can use the loan for any purpose you like. What can I use a Personal Loan for?
Personal loan can be used for anything and everything. There are no restrictions on the end use. You could use the loan money to finance anything from the latest flat-screen-plasmaLCD TV to buying your better-half a diamond ring.
How do I take a Personal Loan?
You can always start by checking out with different banks offering you the loan for the best offers - interests - EMI schemes etc. Also find out the eligibility criteria and the documents required to submit before you apply
How is my loan eligibility determined?
Loan eligibility depends upon various factors which differ from banks to banks. The main factor of course, is your ability to repay the loan. Also your profile, in terms of residence and the place you work in also matters. Do make sure to check all such other eligibilities before applying.
What is the maximum tenure of a personal loan?
Personal loan is a short tenure loan. Most of the banks provide you loan for maximum 3 years (36 months). to max 5 years(60 months).
How much personal loan that i can take?
Loan eligibility depends upon various factors. The main factor is your ability to repay. The bank would would like that that the instalme instalment nt you pay should not not exceed exceed more than than 30 to 40% 40% of your net salary or 2-3 times of your income tax return. Please check the eligibility section (hyper link)of our site to know how much you can borrow.
What are the fees and charges payable and when are they payable?
Apart from the rate of interest bank also do charge some fees which are of Usually two types. Once when you are applying for the loan and once when you are preclosing the loan. The fees when charged at the time of processing called as Processing Fees vary from 2-3% of the loan amount. This could be reduced if you have the ability of bargaining. the second charge is the prepayment penalty paid at the time of preclosure. This too varies from 2 –3 %. Similar to processing charges, you can also try to get this fees reduced.
What is the rate of interest that will be charged on my loan?
The interest rate varies from bank to bank. And usually it varies from 14%-26% depending upon your profile and the policies/scheme you opt for.
How soon can I get my loan money?
Usually banks disburse your loan within seven working days. However, it is recommended that you keep all your documents ready and in order, especially the post dated cheque (PDC), to avoid any delays. The loan is disbursed only after the completion of submitting of all required documents.
Can I apply for loan, jointly with my spouse?
Yes. Personal Loans can be applied jointly with a co-applicant (either be your spouse or your parents). This helps you to increase your income eligibility and you can also avail for a larger amount of loan, if you want to, as your co-applicants income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.
What is relationshi relationship p discounts d iscounts? ?
Lenders offer relationship discounts if you already have a relation with that bank. This basically basically means means that if you are already already banking banking with with the lender lender from whom whom you seek seek to avail a loan, they give you certain discounts in the form of reduction in personal in personal loan interest rates or other such charges, sometimes even giving you additional services.
How do I repay my loan?
At the time of applying for the loan, banks ask you to submit all the post dated cheques (PDC). for each month with Emi which is equal monthly installments or they ask you to sign an Ecs(Electronic clearing system ) with the account that you hold. Mostly these cheques/Ecs are presented on 1 st of each month , so please do confirm with the bank on that respect
UPDATED RATE OF INTEREST ON PERSONAL LOANS :
Salaried Banks/Rates
PreCAT A
CAT B
Others
Payment Charges
Fullerton India
15.5%
21%-23%
15.5%
15.5%
21%-28%
4%
Processing Fees 2%
(for 75,000 & above (for 75,000 &
HDFC Bank
salary),
above salary),
16%
16%
2% if
(for 50,000-75,000
(for 50,000-
salaried
salary),
75,000 salary),
account in
17%
17%
(for 35,000-50,000
(for 35,000-
other wise
salary),
50,000 salary),
2.5%
19%
19%
22%
4%
HDFC -
(below 35,000 salary) (below 35,000
16% (more than 50000 salary), 16.5% Citibank
(for 35000-50000 salary), 17.5% (between 2200035000 salary)
salary) Only for
Only for
Citibank
Citibank
account
account
holders: 17% holders: 17% (for more than (for more than 50000 salary), 50000 salary), 18%
18%
(for 30000-
(for 30000-
50000 salary), 50000 salary), 18.5%
18.5%
(20000-30000 (20000-30000 salary)
salary)
5%
2%
State Bank of 16% India/SBI Citi Financial
(Guarantor required) 16%
Bank of Baroda Corporation Bank
16%-20%
(Guarantor
(Guarantor
required)
required)
17%-18%
21%
5%
N.A.
N.A.
16.75%-
Andhra Bank 15.75%-16.75% Axis Bank
16%-20%
18.75%
N.A.
2%-3%
2% Rs250Rs1000/-
16%
18%
19%-23%
Nill
2%
15%
15.5%
N.A.
N.A.
2%
14.5%
1.50% of the
(undertaking letter
N.A.
N.A.
N.A.
required)
loan amount or Rs.500/-
ICICI Bank N.A.
N.A.
N.A.
N.A.
N.A.
Standard Chartered
15.5% - 22%
15.5% - 22% 15.5% - 22% 2%-5% 1%-2%
Bank 13.5% (against
13.5% Syndicate Bank
(against security of IVP, NSC, KVP, LIC policies, policies, RBI Relief Relief Bonds)
12%(For pensioners)
Vijaya Bank 16%
IVP, NSC, KVP, LIC policies, policies, RBI Relief Bonds)
United Bank 16% Of India
security of
13.5% (against security of IVP, NSC,
N.A.
N.A.
N.A.
N.A.
N.A.
KVP, LIC policies, policies, RBI Relief Bonds)
16%-18%
16%-18%
12%(For
12%(For
pensioners) pensioners)
pensioners) pensioners)
N.A.
N.A.
Where CAT A refers to
N.A.
- Top 1000 companies
CAT B refers to CAT C refers to Non Listed Listed refers refers to Loan Surrogates refers to
- Multi National Companies( MNC's ) - Small companies - Smaller Smaller companies companies with with 100 emloyees emloyees.. - Any running loan from any bank
Income : If your Income is above a certain limit, Banks believe that your chances of not
paying are are lesser lesser as you have Income Income to pay. pay. Income above 75 per per month usually usually gets some some discounts from all personal all personal loan Banks Banks..
Your Company Status : If the company you are working with is a well known corporate,
the Banks feel that you are less likely to shift from your job and will result in lesser defaults.
Credit and Payment History : Banks follows Cibil scores/rating before deciding giving
loans. If your payments for Credit for Credit Cards and Loans is not upto mark , you have the most likely chance of being rejected for the loan or the Bank will give you at a much higher rate. Relationship with Bank : The Bank where you have your Salary account/Savings account
is likely to pass on you to some special rate for your personal personal Loans or Processing fee. Individuals Individuals Negotiating Skills : Based on your above points you can always ask Bank to
give you waivers on Rates, Fees Etc.
Personal Loan Interest Rates in India Unlike a product like a movie ticket for which everyone is charged the same price, every individual will be charged a different personal loan interest rate and be eligible for a different loan amount based on their credit profile. The personal loan interest rates you will be charged charged and the loan amount amount you will will be eligible eligible for for will will vary by bank, and will will depend depend upon factors like your income, your employer, your work experience and your residence stability. Personal loan interest rates in India are usually quoted as monthly reducing balance rates, rates, however however some some lenders lenders quote rates rates as annual reducing reducing balance balance rates rates or as flat rates. The simplest way of comparing different personal different personal loan offers is to calculate the total amount of money you will need to repay the bank in order to completely pay off your loan. The below table is prepared by our market experts and lists the banks which constitute 90% of personal loan market in India to help users save time in their search for personal loan.
Personal Loan Interest Rates.
Bank Name HDFC Bank Personal Loan ICICI Personal Loan Axis Personal Loan Fullerton Personal Loan CitiFinancial Personal Loan SBI Personal Loan
Interest rate range 14% - 24% fixed 16% to 24% fixed 14% to 21% fixed 18% -34% fixed 21% -24% fixed 16% fixed
Rate Type Monthly reducing balance Monthly reducing balance Monthly reducing balance Monthly reducing balance Monthly reducing balance Daily reducing balance
REVIEW OF LITERATURE
Trevor Richards (1996 ) Begins by defining the conversion model – a model used as a marketing tool to identify commitment to different brands of goods or services. Argues that there is a difference between committed and uncommitted customers which is not related to service service quality and that this makes it difficult difficult to predict customer customer retention based solely on these grounds. Other factors also drive commitment. Presents two short case studies based on these assumptions. Kurt Matzler, Hans H. Hinterhuber, Franz Bailom, Elmar Sauerwein (1996) How to delight your customers, Asks which product qualities are decisive for the satisfaction of the customer and which features merely prevent dissatisfaction. Proposes Kano’s Kano’s mod model el of custome customerr satisf satisfact action ion for answer answering ing these these questio questions ns and for drawing drawing conclusions for the management of product development. In his model, Kano distinguishes between between three types of product requirement requirement which influence influence customer customer satisfaction satisfaction in different ways when met: must-be requirements, which are basic criteria of a product - if these these requir requireme ements nts are not fulfil fulfilled, led, the custom customer er will will be extrem extremely ely dissat dissatisf isfied; ied; onedimens dimensiona ionall require requirement ments, s, where where custom customer er satisf satisfact action ion is proport proportiona ionall to the level level of fulf fulfil illm lment ent,, the the highe higherr the the cust custom omer er’s ’s satis satisfac facti tion on and vice vice versa versa;; and attr attract activ ivee requirements requirements,, which which are the product criteria criteria which which have the
greatest greatest influence influence on on how
satisf satisfied ied a custom customer er will will be with with a given given product product.. Attract Attractive ive require requiremen ments ts are neither neither explicitly explicitly expressed expressed nor expected expected by the customer. Antony Beckett, Beckett, Paul Hewer, Hewer, Barry Howcroft (2000) An exposition of consumer behaviour in the financial services industry, Dere Deregul gulati ation on and the emer emerge gence nce of new new forms forms of techn technol olog ogy y have have creat created ed highly highly competitive competitive market conditions which have had a critical critical impact upon consumer consumer behaviour. behaviour. Bank providers must, therefore, attempt to better understand their customers in an attempt not only to anticipate anticipate but also to influence influence and determine determine consumer buying behaviour. The paper accordingly accordingly presents presents and develops a model which attempts to articulate articulate and classify classify consumer behaviour in the purchasing of financial products and services. The theoretical insights generated by this model are then used to examine qualitative research data gained from focus group discussions on consumers’ consumers’ attitudes to their financial providers providers and their financi financial al products products.. Finally Finally,, these these finding findingss are examined examined for the potenti potential al insight insightss they provide to bank
providers providers attempting attempting to identify appropriate appropriate strategies strategies which are conducive to increased increased custom customer er retenti retention on and profita profitabil bility. ity. Randi Randi Priluc Priluck k (2003) (2003) Relatio Relationshi nship p market marketing ing can mitigate mitigate product and service failures, failures, Relationship Relationship marketing is beneficial to firms because it can foster customer loyalty and re-patronage behavior. Consumers engaged in relational exchanges are more satisfied than those in discrete transactions because of the ease ease and psycholo psychologica gicall comfort comfort of purchasi purchasing ng from from a famili familiar ar company company.. This This research investigates the power of relationship marketing to mitigate in two situations. One expos exposes es consu consume mers rs to poo poorr produ product ct perfor performa mance nce and exam examine iness their their leve levels ls of trust trust,, commitment and satisfaction. The second presents a product failure that is followed by a lapse in service recovery and measures measures satisfaction satisfaction and exit behavior. The findings of both studies suggest that relationships make up for increasingly strong negative encounters, providing providing a level level of insulation insulation for for the markete marketer. r. Implications Implications for service service firms firms are discusse discussed. d. Adam Adam Lindgr Lindgreen een (2004) (2004) Few publishe published d empiri empirical cal studie studiess have examine examined d the design, design, implementation, and monitoring of customer relationship management (CRM) programmes at a practical level. The article develops a single embedded case study on Dagbladet Børsen (http://www (http://www.borsen.d .borsen.dk), k), the largest largest publisher publisher of business-rel business-related ated materials materials in Scandinavia. Scandinavia. The article first introduces the reader to the philosophy behind CRM. Following that, it conside considers rs key areas areas of a four-ye four-year ar long CRM program programme me and offer insight insightss into into the procedure procedure that has been developed developed by SJP (http://www. (http://www.sjp.dk), sjp.dk), the the consulting firm firm that was brought into assist. assist. The procedure procedure is organized organized around eight areas: commitment commitment of senior management, situation report, analysis, strategy formulation, implementation, management development, employee involvement, and evaluation of loyaltybuilding processes. Over the four-year four-year long CRM programme, programme, Dagbladet Dagbladet Børsen Børsen increased increased its newspaper circulation circulation by 40 per cent and advertising advertising revenue by 50 per cent, while total revenue more than doubled. Ka-shing Woo, Henry K.Y. Fock (2004 ) The axiom that “the customer is always right” is no longer valid when companies realize that some of their customers are not right at all. Payi Paying ng too mu much ch atte attenti ntion on to thes thesee so-ca so-call lled ed “wro “wrong” ng” custo custome mers rs may may jeopa jeopard rdize ize a company's survival and profitability. Right customers have to be retained, “at-risk” right customers have to be recovered, and wrong customers have to be divested. This study attempts to operationalize the concept of customer “rightness” and “wrongness” in terms of different configurations of attribute satisfaction and overall satisfaction. Based on the result
of a disc discri rimi mina nant nt anal analys ysis is of sati satisf sfac acti tion on surv survey ey data data,, cust custom omer erss with ith diff differ eren entt configurations of attribute satisfaction and overall satisfaction are re-examined in terms of switch sw itching ing intentio intention, n, behavio behavioral ral patterns patterns and demogr demographi aphicc characte characteris ristic ticss in order order to highlight any significant descriptor. Susan E. Rau (2005) Building great products can be a reality for any company that takes the time and effort to create and execute the linkages between: between: winning strategy; strategy; the role of products and services; services; the product building building blocks; and, linkages to customer needs. In fact, our research and work with clients suggests that a lack of alignment of these factors is the number one cause for the poor performance of many new products. This article defines for the reader the four winning strategy choices a company has – Product Leader, Distribution Giant, Innovation Superstar and Customer Lover and how each of these models puts a different emphasis on products and services. Once Once a company company has selecte selected d a winning winning strate strategy, gy, executi executing ng that strategy strategy succes successful sfully ly requires adherence to the business model, including aligning product and services, customer imperatives and financial realities to that winning strategy model. Losing focus and drifting away from the chosen strategy or interspersing, for example, the product priorities from one winning strategy with the customer imperatives from another is a recipe for lackluster earnings and poor stock performance. Readers will learn how to outsmart the competition and build products that really win in the marketplace.
ANALYSIS OF DATA
This This research research is based based on primary primary data i.e. collecte collected d throug through h primar primary y and secondar secondary y sources sources sources. The primary primary data is collected with the help of questionnaire questionnaire survey and seconda secondary ry data data is collecte collected d from from newspape newspapers, rs, internet internet and magazi magazines. nes. Therefo Therefore, re, the analysis of data is categorised under following two sub categories that are:•
Analysis of Primary Data
•
Analysis of secondary data
The analysis of primary primary data includes includes the analysis analysis of data collected through questionnaire. questionnaire. The analysis of Primary Data is as follow:-
PARAMETERS SELECTED FOR COLLECTING PRIMARY DATA:
1. Age of the Respondent :
Age yrs
PERCENTAGE
18-28yrs
30%
28-38 yrs
26%
38-50 yrs
More than
24%
yrs 20%
50
The respondent of research comprises of 30% of 18-28 years, 26% of 28-38 years, 24% of 38-50 years and 20% of more than 50 years. This classification of age group is required to know the perception of person for taking loan at different stage of life. Generally Fullerton India provides loan to salaried individuals and new entrepreneurs, therefore our sample size is consists 56% of respondents lies between the age group of 18 to 38years. After setting the age group composition for survey the next parameter for differentiating respondent is Income level.
1. Annual Annual Income Income of the Responden Respondentt
Income %age
Below 1 Lac 15%
1-2 Lac 40%
2-5 Lakh 35%
Above 5 Lakh 10%
Second classification of respondent is based on the basis of their annual income. This classification is done to know that mostly which income level people have more demand for loan. This research is targeted to know the demand of loan by salaried individual and small entrepreneurs, therefore the sample size consists of 15% Lower Income level and 40% middle income level for judging the demand of salaried individual and to judge the demand of small entrepreneurs the sample size consists of 35% upper middle income level and 10% that are having annual income more than 5 lakh.
P e rc e n t a g e
3. Occupation of the Respondent
Occupation
Percentage
Government
Private
Employee
Employee
30.00%
25.00%
Businessman
45.00%
The third important consideration which helps to identify that whether the respondent is salaried individual or small entrepreneurs is occupation. The occupation comprises of Government Employee, private employee that fall into salaried individual category and third component of occupation is Businessman which indicate small entrepreneurs. The weight provided to salaried individual i.e. to Government and private employee is 55% because Fullerton Fullerton offered offered more product to this category category and For small entrepreneurs the weight assigned is 45% , because this weight can give justifiable result to divide the demand of loan on the basis of occupation.
From which source you knew about the various schemes of Fullerton India? Sources
News Paper
Television Media
Internet
Friends
Percentage
44%
12%
20%
24%
This question is asked in order to know the effectiveness of the advertisement strategy adopted by Fullerton India. The result found by the survey shows that most of the customer knew about the various loan schemes through news paper & internet. Therefore company can make more use of the news paper and internet to increase its customer base. Secondly the company also getting the benefit of its existing customer to advertise its product, because 24% of customer customer knew about the schemes of Fullerton Fullerton India through their friends who had taken loan from Fullerton India. Fullerton India is not making use of Television media frequently because it is very costly, therefore resultantly it contributed only 12% in creating the awareness among the customer regarding various schemes of Fullerton India.
2. Which Which type of of loan you you availed availed from from Fullerto Fullerton n India? India? Types
Secured Loan
Unsecured
Home Loan
Loan Percentage
42%
18%
Home equity loan
28%
12%
The most preferred loan by customer is secured loan. This loan is easily available to customer because there is less risk faced by Fullerton in giving this type of loan as it is secured by some assets of customer. Second more preferred loan than secured loan is Home loan which is availed by 28% of customer other loan are availed by18% and 12% of sample size.
3. Through Through which which scheme scheme of Fullerton Fullerton India India you availed availed loan? loan? Type
Parivaar
Vyapaar
Percentage
62%
38%
The Fullerton India offers different types of loans under two main scheme that are Parivaar and Vyapaar. The Parivaar scheme is for salaried individual where as Vyapaar scheme available for small entrepreneurs. The result of survey shows that most of customer availed loan under parivaar scheme i.e 62% as compare to Vyapaar. Therefore it shows that, the salaried individual are more important for company, so the company is require to focus on this core product and simultaneously it require to improve the promotion of its Vyapaar scheme to attract more customers.
7. What is your amount of loan? Amount of Loan
%age of Respondents
0 - 2,00,000
28%
2,00,000-5,00,000
45%
5,00,000- 10,00,000
32%
10,00,000 or more
5%
This question is asked to know that generally how much amount of loan is availedby the customer. customer. The result of survey shows that 45% customer availed 2 lakh to 5lakh loan, 32% availed 5 to 10 lakh, 28% availed loan up to Rs 2lakh and there are very less customer who availed loan more than 10 lakh. So the Fullerton India is famous for medium loan, but there are very less number of customer for large amount loan. Therefore the company needs to focus on the schemes for large amount loan to become famous in this segment also.
4. What What is the the repayme repayment nt period period of of your your loan? loan?
Number of Years Years
percentage percentage of Respondents Respondents
Below 2 Years
19%
2-5 Years
43%
5-10 Years
28%
More than 10 Years
10%
The profit of the company depends on the repayment period, because if the repayment period is long than customer will pay interest for long period so it beneficial beneficial for company company to issue loan loan for long repayment repayment period. period. In the survey survey itb was found found that 19% customer availed loan for maturity period less than 2 years, 43% of customer availed loan for 2 to 5 years, 28% availed for 5 to 10 years and only 10 % availed for the repayment period more than 10years. The most preferred repayment period is 2 to 5 years. The company will earn more sustainable profit for long period if it increases the customer who avail loan for long maturity period, therefore the company need to formulate some attractive scheme to attract the customer towards long repayment period loan.
9. Are you satisfied with the rate of interest charge by Fullerton India? Yes
No
67%
33%
The Fullerton Fullerton India charging different rate of interest for different type of loan. The rate of interest of unsecured loan is quite high because of risky nature whereas secured loan is available at less rate of interest. Therefore there are some customers who are not satisfied with the rate of interest. The sample size consists of 67% customers customers who are satisfied with the rate of interest charging by Fullerton India and only 33% are unsatisfied.
10. What are the main factors which persuade you to avail loan from Fullerton India? Factors
No. of Respondents
Easy Repayment
19%
Easy Documentation
26%
Attractive Rate of Interest
29%
Quick Processing
17%
Others
9%
This question is considered to know that which service of Fullerton India attract more and more customer. The result shows that an attractive rate of interest is the most important factor responsible for attracting customer toward Fullerton India, then easy documentation, easy repayment and quick processing is also work as supplement to attract customer for availing loan from Fullerton India. Only 9% customers are fall in the category of others who availed loan due to the references of some person, such as friends and relatives.
11. What grade you will assign to the services of Fullerton India?
Grades percentage percentage
excellent 12%
Very good 47%
Good 31%
Fair 6%
Poor 4%
This result shows the perception of different customer toward services of Fullerton India. The 12 % customer thinks that the service delivery of Fullerton India is excellent whereas 47% thinks its service delivery is very good, 31% thinks that services delivery is only good and 6% thinks that the service delivery of Fullerton India is fair, but as nobody can satisfy everyone at same time, so this is same for Fullerton India, 4%customer are not satisfied with the services of Fullerton India.
FINDINGS OF THE STUDY From From
the above study it is clear that 62% of the respondents have taken loan under
parivaar parivaar scheme and only 38% 38% taken taken loan under under Vaypaar scheme. scheme. Therefore Therefore it shows shows that Fullerton India is favourable in short term loan segment which is provided by Fullerton India under Parivar scheme and especially for salaried individual. From the above study it is clear that majority of the respondents got aware of different loan scheme provided by Fullerton India through News paper. Therefore company is require to advertise its schemes more frequently in News paper which will help company in getting more new customers.
The The
above study depicts that most of the respondents availed loan of amount ranging
from Rs.2-5- Lakh. Therefore, if Fullerton India introduce more scheme under this range to meet the different demand of customers.
The The
above study depicts that mostly the respondents preferred the loan having repayment
period from from 2-5. 2-5. Therefore Therefore the company needs needs to add add some more more benefits benefits to the long term term period loan loan so that that the demand of long term loan will increase which increase the profit of company, because as the repayment period is long than the source of income (Interest) is sustain for long period.
Most
of the people are satisfied with the rate of interest charged and by Fullerton India.
Fullerton
India mostly disbursed loan as secured loan, this will provide the safety and it
will avoid the increasing number of Non- performing asset and bad debts.
Customers
are the main source of new ideas, and thus their suggestions are vital for every
Company. From the above figure it is clear that majority of the respondents are satisfied with the services of their present bank so they do not want any change in the rate of interest and services, but no one can satisfy everyone at same time, Fullerton having respondents who are not satisfied with rate of interest and services of Fullerton India.
SUGGESTIONS The following suggestions have been formulated on the basis of above study. These set of suggestions might help the Fullerton India to improve the quality of service regarding loan provisions provisions and simult simultaneousl aneously y these suggesti suggestions ons help the the Fullerton Fullerton India to tackle tackle the competition prevailing in the market, thereby achieving success in the future. Firstly Firstly
Fullerton India should create awareness among the common public about the
various loan schemes of they are providing..
In In
order to create awareness regarding the loan schemes an electronic medium of media
can put to use to advertise about the schemes and services provided by Fullerton India. This would help to change the attitude of the people regarding the Fullerton India.
The The
interest rates should be regularly revised in order to attract more and more customer.
Some new plans should be introduced regularly to cater the special needs of customer which provides them more offerings and benefits.
New
strategie strategiess should be be made by the company company which which enables enables them to to face the
competition with other private leading Non Banking Financial companies.
The The
company needs to focus more on providing value added services to its customer.
This will create Brand loyalty among customer which indirectly attract more and more customer because a satisfied customer will always bring two more new customers.
· The management of company should be more efficient which enables in quick processing of the task regarding loans disbursement and loan collection, This will enable efficiency in the working capital cycle of the company.
· There should be customer relationship management concept in the company which help the company to understand the special need of customer. Accordingly company formulate schemes should be maintained.
· The Fullerton India need to concentrate on new target market by expanding its business through introducing new loan schemes and services. Currently the company is proving loans under main two category i.e Parivaar and vyapaar so, it looks limited. Therefore the company needs to introduce new schemes to enter in to new target market.
REFERENCE •
www.fullertonindia.com/
•
www.fullertonindia.com/index.php? www.fullertonindia.com/index.php ?
•
www.google.com
•
www.ask.com
•
www.mywebsearch.com
Questionnaire
Name:
Contact No:
1. Age of the Respondent:a. 18-28yrs □
b. 28-38 yrs □
c. 38-50 yrs □
d. More than 50 □
2. Annual Income of the Respondent: a. Below 1 Lakh □
b. 1-2 Lakh □
c. 2-5 Lakh □
d. 2-5 Lakh □
3. Occupation of the Respondent:a. Government Employee
□
b. Private Private Employee Employee
□
c. Businessman
□
4. From which source you knew about the various schemes of Fullerton India? a. News Paper □
b. Television Media □
c. Internet □
d. Friends □
5. Which type of loan you availed from Fullerton India? a. Secured Loan □
b. Unsecured Loan □
c. Home Loan □
d. Home equity loan □
6. Through which scheme of Fullerton India you availed loan? a. Parivaar □
b. Vyapaar □
7. What is your amount of loan? a. 0 - 2,00,000 □
b. 2,00,000-5,00,000 2,00,000-5,00, 000 □
c. 5,00,000-10,00,000 5,00,000-10,00,00 0 □
d. 10,00,000 or more □
8. What is the repayment period of your loan? a. Below 2 Years □
b. 2-5 Years □
c. 5-10 Years □
d. More than 10 Years □
9. Are you satisfied with the rate of interest charge by Fullerton India? a. Yes □
b. No □
10. What are the main factors which persuade you to avail loan from Fullerton India? a. Easy Repayment □
b. Easy Documentation □
c. Attractive Rate of Interest □
d. Quick Processing □
e. Others □
11. What grade you will assign to the services of Fullerton India? a. Excellent □
b. Very Good □
c. Good □
d. Fair □
e. Poor □
THANKYOU
TABLE OF CONTENT
Company Certificate Guide Certificate Acknowledgement Chapter -1
Company Profile
Chapter -2
Review of Literature
Chapter -3
Research Methodology
Chapter -4
Data Analysis & Analysis
Chapter -5
Findings & Recommendation
Chapter -6
Suggestion
References Questionnaire
