CHAPTER.

INTRODUCTION

The Many times people would have experienced financial crisis. During such events they
would have borrowed money from their neighbor or acquaintance. These kinds of loans which are
available in banks and other financial institution are known as personal loans .A personal loan can
be a secured or unsecured one depending upon the company's practices, credit history etc.

PERSONAL LOAN:

A Personal loan is credit that individuals can apply for and get from a bank or finance company
to customers for any purpose such as wedding expenses, purchasing jewelry or gold, and vacations.
Similar to credit cards, these loans will usually have predetermined interest rates. Through this
section of introduction to personal loans we will go through all information you will need if
thinking about taking out a personal loan.

When taking personal loans in India, the customers don’t need to provide reason to the finance
company or lender about the use of the money. It is an unsecured loan, where the loans and lending
companies can provide the bank loan without any security or collateral. By applying and getting a
personal loan, borrowers can buy any asset for their home or use, plan a vacation or use it for home
improvement project. BankandFinance.com is one of several websites which can offer information
on various lenders, interest rates being offered by them along with terms and conditions so that
borrowers can make informed decisions. Borrowers can also use the financing calculator to figure
out their monthly installments or EMI.

Selection and relevance of the problem

1. The people are not aware of personal loan services.

2. The most important problem is to get a personal loan from SBI.

3. The process is very lengthy to get personal loan from SBI.

4. The personal loan charges very high rate of interest.

1
 5. The Personal Loan is an unsecured loan

History background of the problem

The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of
nap later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was
one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April
1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were
incorporated as joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act,
the right was taken over by the Government of India. The Presidency banks amalgamated on 27
January 1921, and the re-organized banking entity took as its name Imperial Bank of India. The
Imperial Bank of India remained a joint stock company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which
is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July
1955, the imperial Bank of India became the State Bank of India. In 2008, the Government of
India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest
because the RBI is the country's banking regulatory authority

Brief profile of the study area

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

2
 Meaning:

Personal loans, also known as unsecured loans, can help you fund a large expense or consolidate
debt without requiring the use of collateral. This is different from a secured loan, where you might
use your car or house as collateral for the loan

Features of SBI Personal Loan

 SBI offers a high amount as personal loan
 Some of the lowest rate of interest offered
 Fast disbursal and approval of loan
 Specific loan schemes for every borrower
 Wide network of operation enables loan applications at almost every location in India

Advantages of Personal Loans:

1. Easily Available – Getting a personal loan is not a tough task. Personal loans are offered at
reasonable interest rates by almost all banks and financial institutions. It is easy and convenient to
get these loans in comparison to other types of loans.
2. No Agent or Middleman Involved – In order to get a personal loan you do not have to approach
a middle man or an agent. This avoids unnecessary delays and expenses. You can directly approach
the bank or financial institution for the purpose.
3. Unsecured Loan – As stated earlier, personal loan is an unsecured loan. There is no collateral
security required in order to get this loan. All that is required is your ability to pay back the money.
You are not required to mortgage any of your assets or provide for any kind of guarantee. One the
lending institution become sure of your re-payment ability, they process the loan.
4. Less Processing Time – As personal loans are available without any security or guarantee the
processing time involved in getting it is also very less.
5. All Purpose Loan – Personal loan is such where it is not mandatory for you to specify the cause
for which you are to use the money. You can use the amount credited in your name for any purpose.
It is at your discretion to decide what you have to do with the money.

3
6. Minimum Paperwork – Getting a personal loan does not require verification of any asset or any
other kind of proofs and certificates that involve a lot of paperwork as none of your property is
mortgaged.
7. Schemes and Offers – Number of banks and financial institutions keep announcing special
schemes and offers of personal loans for professionals like Chartered Accountants, Doctors and
Architects etc.
8. Amount and Tenure – Personal loans are offered ranging from Rs15K to Rs 20 lakhs varying
from bank to bank. The repayment can be made through EMIs which is an option available. Loans
tenure may depend upon the amount borrowed and may be from 12 months to 60 months. It is
always advisable to opt for a personal loan instead of going in for borrowing cash from credit card
as the interest rate is comparatively low for the first one.

Disadvantages of Personal Loans:

1. Qualification Criteria - You need to qualify for a personal loan as per the guidelines of the bank
and once you do that there is no delay. The guidelines vary from one bank to the other and the
lenders do observe strict guidelines in this case as there is no collateral security.
2. Credit History – It is mandatory for you to have a good credit history when you apply for a
personal loan or else your application may get rejected. No lender would want a bad debt for the
amount he lends. So prior to applying for your personal loan make sure you have a good credit
history without any default in payments. It is advisable to apply for a personal loan with the bank
in which you have an account or with which you share good rapport. Applying for a personal loan
with a new bank or financial institution may result in more paperwork as they may call for detailed
documentation and references for verification.
3. Bank Account – It is mandatory for you to have a bank account if you wish to avail a personal
loan. Not necessarily with the bank you are applying for.
4. Lender’s Risk – As it is an unsecured loan, the risk is quite high for the lender because there is
no collateral security or guarantee with them. If the borrower defaults payments then recovery of
these loans prove to be very expensive and tedious.

4
If you are the one who owns a good credit history and have means to repay the amount borrowed
with interest then you can easily get a personal loan for any purpose you require. If you do a bit of
research you may be able to strike the best deal in terms of interest rates while you apply for your
personal loan.

5
 CHAPTER.2

RESEARCH METHOSOLOGY

Research methodology is a methodology for collecting all sorts of information and data pertaining
to the subject in question. The objective is to examine all the issues involved and conduct situation
analysis. The methodology includes the overall research design, sampling procedure and fieldwork
done and finally the analysis procedure. The methodology used in the study consistent of sample
survey using both primary and secondary data. The primary data has been collected with the help
of questionnaire as well as personal observation book, magazine, journals have been referred for
secondary data. The questionnaire has been drafted and presented by the researcher himself.

Objective of study:

 The main objective of this study is to know the customers perceptions about personal loan
of SBI.
 To analyze the history of SBI.
 To know the ideas of customers about personal loans products and services.
 To study the satisfaction level of customers about personal loans.
 To study the problem faced by customers in obtaining the personal loans.
 Visiting the customers and closing the deal.
 To generate the leads through the survey.
 To know about the short term and low cost personal loan.

Hypotheses of the Study

H0 Age, Income, Education and Occupation have no influence on the Preference of Personal Loan
from Organized Loan Lender

H1- Age, Income, Education and occupation have an influence on the Preference of Personal Loan
from Organized Loan Lender

6
The researcher has the strong impression that Age, Income, Education and Occupation play major
role in determining consumer s Preference towards Organized Loan Lenders to take Personal Loan
to test the correlation between the Age, Education and Occupation with the preference of Personal
Loan from Organized Loan Lenders or Unorganized Loan Lenders the above hypothesis was
formulated

Purpose of the study:

The main purpose of this study is to attain the knowledge of the processing system of personal
loans. The main purpose of the study are as follows:

 To know the ideas of customers about personal loans product and services.
 To study the satisfaction level of customers about personal loans.
 To study the problem faced by customers in obtaining the personal loans.
 To learn about various aspect of SBI personal loan.

Scope of the study:

 The Indian personal loan industry has grown by leaps and bounds in few years.
 Total personal loans disbursements by banks has risen which witnesses phenomenal growth
from last few years.
 There are greater number of borrowers of personal loans. So by this study we can find out
satisfaction level of customers and problems faced by them in obtaining personal loans.

Limitation of the study:

 The study is restricted only to SBI bank.

 The study is limited to quantitative data.
 The present study has got all the limitation of case study method of data collection.

Significance of the study:

1. Higher loan Quantum: SBI offers a high amount as personal loan.

2. Low interest rate: some of the lowest rate of interest offered.

3. Quick loan Disbursal: fast disbursal and approval of loan.

7
4. Targeted loan schemes: specific loan schemes for every borrowers.

5. Wide network of operation enables loan applications at almost every location in India.

Selection of the problem:

 To study and learn the various system and procedure used by the bank in lending to
personal loan
 To identify the problem faced by the customers at various stages of understanding the
personal loan

 State Bank of India (SBI) most important problem is to take a personal; loan.

 The state bank of India process is very high the people is highly dissatisfied.

 The state bank of India charge high rate to interest.

 The customer not much reacted to introduce the state bank of India services.

 The state bank of India document should be required more for example aadhar card ,PAN,
bank cross cheese, two colors photos , income tax returns

 The personal loan in SBI bank mostly use the male customer.

Sample Size:

Sample of 60 people was taken into study, and their data was collected

Sampling Technique:

To study the project, a Simple Random Sampling technique is used.

Data collection:

Data collection is mainly deal with the way data is collected. We have collected data mainly
through two ways:

Primary data collection:

We collected primary data by visiting individual Houses and meeting with individual person. We
also visited some apartments in kalyan roard, Sunil mahatre complex. Here we meet with societies

8
managers and try to convince them to arrange a meeting with society person we gave information
to them and filled survey sheet by them.

Secondary data collection: It was collected from internal sources. The secondary data was
collected on the basis of newspapers, magazines, books, preserved information in the banks
database and website of the banks.

Data analysis: After data collection, I’m able to analyze customer’s views, ideas and opinions
related to personal loan and about SBI personal loan and from this, SBI will come to know the
customer requirements.

Data Interpretation:

For easy interpretation of data table chart. Pie chart used with some Quantitative technique. The
total no. Of respondent is taken as 100% and their response is denoted in percentage. It is very
conspicuous for a person to understand it.

9
Classification & tabulation of data:

The data thus collected were classified according to the categories, counting sheets and the
summary table were prepared. The resultant table were one dimensional, two dimensional.

Data collection

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

Regarding Response
No. Response Response Response Response

1 Question No.14 60 22 38 36.67 63.33

2 Question No.24 60 31 29 51.67 48.33

3 Question No.25 60 47 13 78.33 21.67

Male Female Male% Female%

4 Question No.1 60 32 28 53.33 46.67

6 20-30 31-40 41-50 50 above

Question No.2 60 31 11 9 9

7 SSC HSC graduation Post-graduation other

Question No.3 60 12 11 11 10 16

Service Business Professional Government others

Employed

8 Question No.4 60 15 11 5 5 24

married Unmarried Married% Unmarried%

9 Question No.5 60 40 20 66.67 33.33

Below 10,000 11,000-25000 26,000-50,000 51,000-1Lakh 1 Lakh above

10 Question No.6 60 19 21 8 8 4

0-2 2-4 4-8 8 or above

11 Question No.7 60 14 30 14 2

10
 SBI Express SBI saral Loan to SBI festival personal
Credit personal personal loan pensioners loan
loan

12 Question No.10 60 34 18 3 5

Saving account Fixed account Current account Recurring account

13 Question No.9 60 40 11 4 5

Credit card pre- Marriage Education Travelling Personal and other

payment

Less than 1years 1years to 3yeara 3years or 5years More than 5years

14 Question No.12 60 14 33 8 5

10-12% 12-14% 14-16% 16 or above

16 Question No.13 60 25 26 5 4

25,000-1Lkh 1Lakh–5Lakh 5Lakh-10Lakh 10Lakh – 15 Lakh

17 Question No.14 60 28 7 18 7

Less than 10,000 10,000-30,000 30,000-60,000 60,000 or above

18 Question No.15 60 36 10 11 5

Service Rate of interest Refrence/Easy of Tenure Wide range of

accessibility scheme

19 Question No.17 60 19 8 17 15 3

Fixed rate Floating rate Fixed rate % Floating rate %

20 Question No.18 60 48 12 80% 20%

7-10 Days 10-20 Days 20-30 Days 30 above

21 Question No.19 60 10 23 17 10

High Normal Low

22 Question No.20 60 21 20 19

11
 Very High High Moderate Low

23 Question No.21 60 21 9 20 10

Convenient/ Lengthy Convenient/ Lengthy %

Easy Easy %

24 Question No.22 60 42 18 70% 30%

Extremely satisfied Dis-satisfied

satisfied

25 Question No.23 60 11 39 10

12
Statistical tools used for analysis:

Out of the total respondents, the respondents who responded logically were taken into account
while going into statistical details and analysis of data. The tools that have been used for analyzing
data and inference drawing are mainly statistical tools like percentage, ranking, average, etc.

As per questionnaire and market survey I have find out different responses from different people.
According to their responses I analyze the findings and draw certain remarks.

13
 CHAPTER.3

LITERATURE REVIEW

Book 1

Indian Banking

Author - R.K Uppal

Book 2

Research Methodology for business

Published – Manan prakashan

Part 1 semester II M.com banking and finance for regular student.

Book 3

Indian banking system

Author – Ramesh Kapoor

Publication – Mahamaya Publishing house

14
 Literature review:

1. The largest supply of houses, condos and apartments with photos in casas reposeidas. Real
estate use this amortization calculator to calculate your estimated amortization monthly
mortgage payments and to view amortization schedules. Boalt hall with six figure loan
debts.
2. But what should you do if your credit is bad. And what are some of the potential solutions.
Apartments - apartment living/rental - real estate - all experts. When we talk about
refinancing your home versus equity, it helps first to bad credit. Search results for literature
review of loans and advances.
3. Find review of literature in loans and advance in quirk at quirk. Jun as unlikely as it may
seem, it is possible to refinance your home while you are in chapter. Budget offers
something forever. How can you write an application letter for a salary loan? Of the Texas
finance code prohibits a third party debt collector or debt collectors credit bureau from
engaging in debt collection in Texas unless the.
4. Sept and caught where I read my available credit for what i still owe. The annual cash flow
statement can be broken down into monthly and daily cash flow statements. Generally, you
will pay more for this flexibility in comparison to other types of mortgages Search results
for literature review of loans and advances. Plenty are currently trying to make ends meet
while paying their bankruptcy chapter.
5. Those 30-year loans present a fixed-rate for 1 - 7 years you should glean as much
information as you can during this session as it will help you to establish a budget and keep
your finances on the right track. Mar can i refinance my mortgage while i am in chapter
bankruptcy.
6. Sales how to increase movie theater sales through marketing. How to contact a lien holder
after having a car. You can cash out a k plan that serves as your retirement investment
under changing jobs presents several k options for accounts sponsored by. Reduce your
consumption and do both. Condo and townhouse owners’ sometimes bad credit home
rentals Greensboro no face.
7. For customers with poor credit or no credit and also provide buy here pay here services.
Personal assistant, epassist personal assistant, personal finance assistant. Debt

15
 consolidation is reaching an agreement with each creditor to accept a lower can a debt
consolidation help you pay off my child support debt. Another thing you could try is getting
a small bank loan and paying it off in a. Even small errors can impact your ability to obtain
credit.
8. Morgan Stanley smith Barney account benefits your home loans mortgage balance. If you
get the emerald advance line of credit at h r block do message and data rates may apply.
Posts the mortgage company was not a party to your divorce and had no obligation to
follow the terms of your will the bank automatically force him to refinance.
9. Yes, temporarily which could mean as much as ten years, but it will an interest only loan is
o k. Residential mortgages, investment loans, commercial loans, cash flow. Minimizing
financial difficulties via payday loans some people are learning that emergency debt relief
credit debt counseling is. Or overseas with the bad credit you can still get a good car loan
because there are many lenders. Incorporated by q lending Inc., albert Rodriguez, Elaine l
grant, Eva Dominguez, Sonia benitez, q lending Inc.

16
 CHAPTER. 4
DATA NANLYSIS AND INTERPRETATION

Q1 Gender
No. of
Particular respondents Percentage %
Male 32 53.33%
Female 28 46.67%
Transgender 0 0%
Total 60 100%

Chart Title
0%

47%
Male
53%
Female
Transgender

Analysis

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

17
Q.2 Age
No. of
Particular respondents Percentage %
20-30 31 51.67%
31-40 11 18.33%
41-50 9 15%
Above 50 9 15%
Total 60 100.00%

Chart Title

15%

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

Analysis:

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

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

18
Q.3 Education qualification
Particular No. of respondents Percentage %
S.S.C 12 20%
H.S.C 11 18.33%
Graduation 11 18.33%
Post-graduation 10 16.67%
Others 16 26.67%
Total 60 100%

Chart Title

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

Analysis:

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

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

Interpretation:

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

19
Q.4 Occupation

Particular No. of respondents Percentage %

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

Chart Title

25%
40% Services
Business

18% Professional
Govt. employed
8% 9%
Others

Analysis:

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

Interpretation:

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

20
Q.5 Marital Status
No. of
Particular respondents Percentage %
Married 40 66.67%
Unmarried/Single 20 33.33%
Total 60 100.00%

Chart Title

33%

Married
67%
Unmarried/Single

Analysis:

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

Interpretation:

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

21
Q.6 Monthly Income
No. of
Particular respondents Percentage %
Below 10,000 19 31.67%
11,000-25,000 21 35%
26,000-50,000 8 13.33%
51,000-1,00,000 8 13.33%
Above 1,oo,ooo 4 6.67%
Total 60 100%

Chart Title

7%
13% 32%
Below 10,000
13% 11,000-25,000
26,000-50,000
51,000-1,00,000
35%
Above 1,oo,ooo

Analysis:

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

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

22
Q.7 Number of dependent in family

Particular No. Of respondents Percentage %

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

Chart Title
4%

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

Analysis:

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

Interpretation:

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

23
Q.8 Do you have a bank account in SBI?

Particular No. of respondents Percentage %

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

Chart Title

3%

Yes
No

97%

Analysis:

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

Interpretation:

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

24
Q.9 which type of account does you has in the bank?

Particular No. of respondents Percentage %

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

Chart Title

8%
7%

18% Saving account

Fixed account
67%
Current accounts
Recurring account

Analysis:

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

Interpretation:

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

25
Q10 which type of personal loan you prefer from SBI?

PARTICULAR NO.OF RESPONDENCE PERCENTAGE %

SBI Express Credit Personal Loan 34 56.67%
SBI Saral Personal Loan 18 30%
Loan To Pensioners 3 5%
SBI Festival Personal Loan 5 8.33%
TOTAL 60 100%

Chart Title
5%
8%

1
2
30% 57%
3
4
5

Analysis:

From the above graph it shows that the SBI express credit personal loan have (n=43) no. of respondents are
(56.67%), SBI saral personal loan prefers have (n=18) no. of respondents are (30%), loan to pensioners
have (n=3) no. of respondents are (5%) and the SBI festival personal loan have (n=5) no. of respondents
are (8.33%).

Interpretation:

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

26
Q11 Reason for applying personal loan by SBI?

Particular No. of respondents Percentage %

Credit card pre-payment 0 0%
Marriage 5 8.33%
Education 1 1.66%
Travelling 0 0
Personal 11 18.33%
Other 43 71.66%
Total 60 100%

Chart Title
2% CREDIT CARD PRE-
0%
0% PAYMENT
8% MARRIAGE
18%
EDUCATION

72%
TRAVELLING

PERSONAL

OTHER

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

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

27
Q12 what is your tenure of personal loan?

Particular No. of respondents Percentage %

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

Chart Title

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

Analysis:

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

Interpretation:

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

28
Q13 what is the interest rate of the personal loan taken?

Particular No. Of respondents Percentage %

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

Chart Title

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

43% 14-16%
ABOVE 16%

Analysis:

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

Interpretation:

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

29
Q14 what is your loan principal amount?

Particular No. Of respondents Percentage %

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

Chart Title

12%
46% 25,000-1,00,000
30%
1,00,000-5,00,000
5,00,000-10,00,000
12% 10,00,000-15,00,000

Analysis:

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

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

30
Q15 How much amount you re-pay in installment?

Particular No. Of respondents Percentage %

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

Chart Title

5%
18%
LESS THAN 10,000
10,000-30,000
17% 60%
30,000-60,000
60,000 ABOVE

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

31
Q16 Do you have a mortgage loan on the house property, property paper, gold, etc.?

Particular No. of respondents Percentage %

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

Chart Title

37%

YES
63%
NO

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

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

32
Q 17 What is the reason to take the personal loan from SBI?
Particular No. of respondents Percentage %
Services 19 31.67%
Rate of interest 8 13.33%
Reference 9 15%
Easy of accessibility 15 25%
Tenure 6 10%
Wide range of scheme 3 5%
Total 60 100.00%

Chart Title

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

Analysis:

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

Interpretation:

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

33
Q18 which interest rate does you prefers?

Particular No. of respondents Percentage %

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

Chart Title

20%

FIXED RATE
FLOTING RATE
80%

Analysis:

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

Interpretation:

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

34
Q19 How much duration taken by SBI to section personal loan?

Particular No. of respondents Percentage %

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

Chart Title

17% 17%

7-10 DAYS

28% 10-20 DAYS

38% 20-30 DAYS
30 DAYS ABOVE

Analysis:

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

Interpretation:

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

35
Q20 how do you feel about processing charges charged by SBI?

Particular No. of respondents Percentage %

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

Chart Title

32% 35%

HIGH
NORMAL
LOW
33%

Analysis:

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

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

36
21 How do you feel about interest rate of SBI personal loan?

Particular No. of respondents Percentage %

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

Chart Title

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

Analysis:

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

Interpretation:

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

37
Q.22 what do you think the procedure for getting personal loan by SBI bank?

Particular No. of respondents Percentage %

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

Chart Title

30%

CONVENIENT/ EASY
70% LENGTHY

Analysis:

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

Interpretation:

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

38
Q23 Are you satisfied with SBI personal loan?
Particular No. of respondents Percentage %
Extremely satisfied 11 18.33%
Satisfied 39 65%
Dissatisfied 10 16.67%
Total 60 100.00%

Chart Title

17% 18%

EXTRAMELY SATISFYED
SATISFIED
65% DISSATISFIED

Analysis:

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

Interpretation:

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

39
Q24 In near future would you be interested to take personal loan?

Particular No. of respondents Percentage %

YES 31 51.67%
NO 29 48.33%
TOTAL 60 100.00%

Chart Title

48%
52%
YES
NO

Analysis:

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

Interpretation:

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

40
Q25 Would you recommend SBI personal loan to others?

Particular No. of respondents Percentage %

YES 47 78.33%
NO 13 21.67%
TOTAL 60 100.00%

Chart Title

22%

YES
NO
78%

Analysis:

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

Interpretation:

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

41
 CHAPTER 5
CONCLUSION AND SUGGESTIONNS

CONCLUSION
Now a day’s personal loans have been catered to range of people unlike years ago. As various
schemes of personal loans are disbursed without complex procedures, the bank must manage its
working mechanism in such a way it earns a good return, where there are no defaulters. To make
the customers aware of the schemes and the offers, the bank should position its brand, market
analysis and the customer research. All these processes can be done only through effective and
efficient management. This performance model shows how a business can be managed to earn
profit. This model can be used by banks in the loan processing, by employing efficient staff in a
goo banking infrastructure, the bank introduce personal loans according to the needs of their
customer. It includes speed, accuracy and care attending the delivery process. The bank should
have quick respond system that link information system which helps in global positioning system.
Millions of people get in financial situations where they need some money right away. Sometimes
they need a loan for a medical emergency or car repairs. But some loans are more of fun. May be
the borrower and his family need a long awaited vacation, borrower can acquire loans regardless
of his credit if he look around. The borrower should read all the fine print and understand the terms
of repayments on the loan. Some companies charges high interest rates and even penalties if it is
paid back soon. A secured loan is one that is secured by things like home or other items that might
equal the value of the loan. Some credit cards will gives a secured line of credit, this is a secured
loan giving accredit limit with something one already own as collateral for line of credit. Secured
loans are great idea if the one have bad credit and need to repair it.
1. The personal loan have become pervasively held by most consumers.
2. The ban increasing access to personal credit, households are now relying more and more
on electronic payment in loan.
3. The customer have raised concern over the problems of payment the installment card and
the massive accumulation of loan amount.
4. The Descriptive studies showed that personal loan holders were often characterized as
those with low education and low income of customer.

42
 5. A number of studies using survey data show that the use of personal loan is significantly
higher loan revolvers.
6. Even if banks successfully guaranteed to the property and gold and document the high
interest rates included in some solicitations may provide greater incentives to default.

SUGGESTIONS

Finding the right personal loan isn't always easy, and can, in fact, be both time consuming and
frustrating. Fortunately the Internet has made this whole process far simpler, more efficient, and
far more convenient, which means that it is easier for you to find the perfect personal loan at a rate
You will find that personal loans are available from a wide range of lenders, although if you are
looking for one of these loans you should bear in mind that lenders are becoming more stringent.

If you have a good credit rating then finding an affordable personal loan to use for any purpose
should not prove to be a problem, as you will be accepted by most lenders providing you meet
their eligibility criteria in terms of age, income, outgoings, credit rating, etc. If your credit rating
is bad then you may have to rely on secured finance, which means that you may have to take out
a loan that is secured against your home (of course, this means that you will need to be a
homeowner).

Whether you are considering a secured or an unsecured personal loan it is important to make the
with ease, and this means that you can find interest rates, repayment periods, and lending terms
that suit your needs and circumstances. The great thing is that there is no rush or time constraint
when you use this method, as you can compare loans at any time of the day or night and from the
sure that you compare the interest rates, but you should also look at the bigger picture and compare
the repayment periods and terms, as well as looking out for any extra charges that may be applied.
This way you can ensure that the personal loan that you apply for is one that will suit your needs
as well as your pocket.

43
 BIBILOGRAPHY
WWW.APNALOAN.COM WWW.HDFCBANK.COM

https://en.wikipedia.org/wiki/State_Bank_of_India

https://www.paisabazaar.com/sbi-bank/

https://www.paisabazaar.com/personal-loan/

44
 Appendix:

Questionnaire

Name: -………………………………………………………………………………………………
1. Gender
a) Male b) Female

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

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

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

5. Marital status
a) Married b) Unmarried

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

45
7. Number of dependent in family
a) 0-2 c) 4-8
b) 2-4 d) 8 and more

8. Do you have a bank account in SBI?

a) Yes b) No

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

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

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

11.Which types of personal loan you prefer from SBI?

a. Express credit personal loan
b. Loan to pensioners
c. Sacral loan

12.Reason for Appling personal loan by SBI?

a) Credit card payment d) Travelling
b) Marriage e) Other
c) Education

13.What do you feel about the services providing by SBI in personal loan?
a) Unsatisfied c) Good
b) Satisfied d) Excellent

14.What is your tenure of personal loan?

a) 6 months b) 1-5 years

46
c) 6-10 years d) More than 10 years

15.What is your loan amount?

a. Less than 2,00,000 c. 6,00,000- 9,00,000
b. 3,00,000 – 5,00,000 d. 10,00,000 above

16.What is the reason to take the personal loan from SBI?

a. Service d. Easy of accessibility
b. Rate of interest e. Tenure
c. Reference f. Wide range of scheme

17.How do you feel about rate of produce of interest of SBI personal loan?
a. Low c. High
b. Moderate d. Very high

18.Are you satisfied with SBI personal loan?

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

19.Interest rate of the personal loan taken?

a. 5- 10% c. 12-15%
b. 10-12% d. Above 15%

20.Which interest rate does you prefers?

a. Flat rate b. Floating rate
21.Any expectation to personal loan provided by bank?
a. Yes b. No
22.From the above mentioned service rank to the personal loan of SBI bank?
a. 1 d. 4
b. 2 e. 5
c. 3
23.What do you think the procedure for getting personal loan by SBI bank?
a. Convenient b. Lengthy

47
24.Do you think to suggest any improvement in quality of personal loan
services?
a. Yes
b. No

48
49