EXECUTIVE SUMMARY

Leading banks in the public and private sector are providing

two wheeler loans, right form mopeds to motorbikes. These
loans are available at attractive rates and best prices to
attract new customers.
The present study is an empirical research done on factors
influencing the behaviour of the customers towards two-
wheeler loan of a selected city. A random sample was
selected from the selected areas and a questionnaire was
prepared for the research process & to analyze the data. The
main findings reveal that people prefer private banks over
public banks though the variation in rates of interest is vast.
Also low interest rate, small installments and long repayment
are the important features to select a bank for applying for
loan. The report concludes with future bright outlook.
 INTRODUCTION
TWO WHEELERS LOANS INDIA
The surging growth of the two wheeler industry in India has been
influencing several new entrants to start manufacturing newer
version of automobiles. In the last fiscal, the two wheeler industry
in the country has seen a remarkable double digit growth against
the previous year. A total of 5, 56,000 units of the automobiles
were produced in India in the last financial year. Leading two
wheeler manufacturers like Bajaj Auto, Hero Honda, TVS Motor,
Yamaha Motor are continuously innovating and coming up with
new two wheelers to rope in the increasing number of potential
consumers in India.
The annual sale of these various companies has also increased due
to the two wheeler loans offered by numerous financial institutions
and banking organizations.
 Advantages and Disadvantages
Applicants can get a vehicle in no time. Generally, banks take 48
hours to sanction a two wheeler loan after the verification of
documents.
As there are a number of motorcycle lending companies and banks
in India, applicants can easily get loans at low finance rates along
with good repayment options.
The bike loan repayment and tenure period is very flexible and easy.
Borrowers can choose pay off the loan with in 12, 24, or 36 months.
Minimum documentation is needed to get bike loans in India.
Bike loans are a hassle free process, where no guarantor or security
is needed.
Customers can use the BankandFinance.com financing calculator to
estimate the down payments, monthly payments and interest rates
before applying for two wheeler loans.
 CONCEPT OF THE STUDY
ELIGIBILITY CRITERIA
Salaried or self-employed individual

Age: between =>21 years (at the time of application) and <= 65 years (at the end of the loan tenor)

Minimum gross income: equivalent to rs. 54,000/- p.a. If you reside in Mumbai, Delhi, Chennai,
Bangalore, Kolkata, Pune and rs. 42,000/- p.a. For all other cities

Residing for atleast 1 year in the city

Atleast 1 year at the given residence address (in case of transfer from other location with less than
1 year at current location - please provide relevant documents to the bank during loan approval
stage)

Working for atleast 1 year

A phone at your residence or office
 COMPANY PROFILE
HISTORY OF ALLAHABAD BANK
ALLAHABAD BANK LTD was incorporated in August 1962 in the name of
'ALLAHABAD Bank,with its registered office in Mumbai, India. ALLAHABAD Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of ALLAHABAD Group. ALLAHABAD BANK LTD was amongst
the first to set up a bank in the Govt sector. The bank was incorporated on 30th
August 1994 in the name of ALLAHABAD Bank Limited, with its registered office
in Mumbai.It commenced operations as a Scheduled Commercial Bank on 16th
January 1995. The bank has grown consistently and is now amongst the leading
players in the industry .
ALLAHABAD is India's premier housing finance company and enjoys an impeccable
track record in India as well as in international markets. Since its inception in 1977,
the Corporation has maintained a consistent and healthy growth in its operations
to remain the market leader in mortgages. Its outstanding loan portfolio covers
well over a million dwelling units.
 ROLE IN BUSINESS
With a number of private players exiting this segment
either completely or in selected areas due to rising default
rates and high operating expenses, growth in two-wheeler
finance is likely to be spearheaded by public sector banks,
which have a wider reach and broader customer base. The
growth will also be fuelled by the increase in the number of
underlying asset, according to Mr Manoj Mohta, Head
Research Crisil Research.
The two-wheeler finance industry contracted by 25-30 per
cent in 2008-09; however, there could be a modest growth
in 2009-2010 due to an increase in the underlying asset and
the support provided by public sector banks, he said.
 CURRENT SCENARIO
The automobile sector is a key player in the global and Indian economy. The global
motor vehicle industry (four-wheelers) contributes 5 per cent directly to the total
manufacturing employment, 12.9 per cent to the total manufacturing production
value and 8.3 per cent to the total industrial investment. It also contributes
US$560 billion to the public revenue of different countries, in terms of taxes on
fuel, circulation, sales and registration. The annual turnover of the global auto
industry is around US$5.09 trillion, which is equivalent to the sixth largest
economy in the world (Organisation Internationale des Constructeurs
d'Automobiles, 2006). In addition, the auto industry is linked with several other
sectors in the economy and hence its indirect contribution is much higher than
this. All over the world it has been treated as a leading economic sector because of
its extensive economic linkages. Indias manufacture of 7.9 million vehicles,
including 1.3 million passenger cars, amounted to 2.4
consists of 500 firms in the organised sector and around 31,000 enterprises in the
unorganised sector. In the domestic market, the firms in this sector supply
components to vehicle manufacturers, other component suppliers, state transport
undertakings, defence establishments, railways and even replacement market. A
variety of components are exported to OEMs abroad and after-markets worldwide.
FUTURE PROSPECTS
GRAPH 1: NO. OF RESPONDENTS

FEMALE, 18

MALE, 32
 LIMITATION
This gives an opportunity to customers to avoid making
repayments and leaves banks without a collateral. The
phenomenon is said to be particularly visible in smaller
towns and rural areas. "Now we have come down hard
on sub-dealers and we are not issuing loans for
temporary registrations," Khanna said.
Analysts say the increased proclivity to not repay loans
is driven by the high interest rates. "In cases where
customers have also taken home loans on flexible
interest rates, the higher home repayments now may
be pushing them to default on their two-wheeler
loans," an analyst said.
 SUGGESTIONS/RECOMMENDATION

Customer awareness programme is required so that more

people should attract towards vehicle loan product.
If there are any kind of hidden charges than that must
disclose to customer before giving loan to them.
The public banks must take some steps so that customers
can get their loan in time. Like phone verification by
customer care that one customer is got their loan on time
or not .It must be before a certain date so necessary steps
can be taken.
For the better service new offers/schemes would be
require.
 CONCLUSION
After a careful presentation of the Marketing Aspects of Automobile Industry with
reference to Two-wheelers at Jabalpur.
This study finds some conclusions about different aspects of the topic under
consideration and observations about the survey made so far.
The conclusions drawn in this chapter are based on the primary and secondary
data collected and concerned parties interviewed during the field survey and
systematically analyzed in the different chapters. The hypothesis has been tested
and verified with the object of this research work. Recommendations are made
after a detailed and objective analysis of the brand management.
Recommendations therefore, are related to the improvement in Marketing
Aspects of Automobile Industry with reference to Two-wheelers in Maharashtra
State. India is a vast country with ever growing and never ending population
comprising of 72% residing in areas.
Totally depending upon agricultural income and agricultural related activities for
their livelihood and many of them are illiterate and people below poverty line.
Though the lifestyle of masses have undergone a sea of changes with the
increased infrastructure facilities, application of modern techniques in cultivation
and better access to urban areas.