atulshinde
TRANSCRIPT
A
PROJECT REPORT
ON
“A STUDY OF RETAIL ASSET
CENTRE
( POWER DRIVE )” At AXIS
BANK LTD.
SUBMITED TO
PUNE UNIVERSITY
SUBMITTED TO
Sinhgad Management School
SUBMITTED BY
SANMAN PRAKASH MAHALE
MBA (2008-2010)
PROJECT GUIDE COMPANY GUIDE
1
Prof. VAITI SIR Mr. AVKASH SHRIVASTAVA
Operation Manager, Axis Bank
ACKNOWLEDGEMENT
The complete research project development was a wonderful experience and
innovative way of learning .For the complete accomplishment of my project I feel
obliged to extend my gratitude towards all those who have contributed to development of
this research project.
At the very first I express my attitude to Prof. KHEDKAR SIR
(Director,Sinhgad Management School) And Prof. Sapankumar(Co-ordinator,
SMS,Kondhapuri). Who has given me an Opportunity to undergo summer training at
Axis bank.Trambak Naka, Nashik.
I am very much thankful to Mr. MERZYAN PATEL (RAC Head, Nasik) for
permitting me to work in their organization and their valuable guidance I was able to
prepare my project report. I am very much thankful to Mr.Avkash Shrivastava (Operation
Manager) of Axis bank for his useful guidance and advice from time to time during my
project work. I also express my gratitude to all Staff of Axis Bank for their valuable
Cooperation during my summer training.
My special thank you to my Project Guide Prof. VAITI Sir for her excellence
guidance for successful completion of project work.
2
Place : Nashik SANMAN PRAKASH MAHALE
Date :
ABSTRACT OF PROJECT
.
My Research Project deals with’ Retail Asset Centre (Power Drive) at Axis
Bank’. In this report, I have studied details of Retail Asset Centre (Power Drive). Retail
Asset Center is related about all loans.
The report deals with introduction of project, Objective of my project to study the
Retail Asset Centre. I have used primary as well as secondary data for this Project. In
primary data I used observation method, Interview method & Experimentation method.
For secondary data I used Books, Internet, Annual Reports & Manuals. After that I
studied scope & limitations.
The report deals with company profile, bank profile, strength of bank,
organization structure, Industry profile& Product of Axis Bank. In Axis Bank four types
of product Power Home, Personal Power, and Loan Against Property & Power Drive.
The report deals with Power Drive. In that I studied all features, terms &
conditions, various schemes which are applied in Power Drive. In theory of power Drive
I studied about eligibility criteria & documaintation, Loan to value chart as well as
previous & current Rate of Interest (ROI).
The report deals with Procedure of Power Drive. In that I studied sales process,
credit appraisal process, banked process, disbursement process & collection & recovery
process.
The report deal with Power Drive Approval is related with all documentation
which is required for power Drive.
In this report I have written the conclusion of whole project as well as given some
suggestion & Recommendations to Axis Bank.
3
At the last report deals with Bibliography .I have collected all Project
Information from Newspapers, internet and Auto Loan file.
INDEX
Chapter No.
ContentsPageNo.
1 INTRODUCTION 1-5
1.1 Introduction 1
1.2 Objectives & Purpose of the project 2
1.3 Research Methodology 3
1.4 Scope & Limitations 5
2 COMPANY PROFILE 6-15
2.1 Bank Profile 6
2.2 Strengths of bank 9
2.3 Organizational Structure 10
2.4 Industry Profile 11
2.5 Product of Axis Bank 15
3 POWER DRIVE 16-34
3.1 Features of Power Drive 16
3.2 Various Concept of Power Drive 22
4 PROCEDURE OF POWER DRIVE35-49
5 POWER DRIVE APPROVAL50-71
6 CONCLUSION 72
7 SUGGESTIONS AND RECOMMENDATIONS73-74
4
8 BIBLIOGRAPHY 75
5
CHAPTER NO. 1
1.1 INTRODUCTION
1.2 OBJECTIVES OF THE PROJECT
1.3 RESEARCH METHODOLOGY
1.4 SCOPE AND LIMITATIONS
6
1.1 INTRODUCTION
Executive Summary
I have done my project on the topic a study of Retail Asset Center [POWER DRIVE]At Axis Bank Ltd.
Purpose
To make my self abreast of this segment in the industryTo study the scope of this segment for the future .
LOAN PROPOSAL SYSTEM
A loan proposal appraisal system is by far the heart of procedure, which is
followed before any loan is granted. In this aspect basically the valid extracts are
taken out from the given reports and data that enables any credit officer to take
decision regarding the finalization of loan proposal. Credit appraisal system is a
summery of extracted records regarding the verifications made towards the profile
of the applicant.
It is presentation of report in suitable format, which easily reflects the eligibility
of a loan proposal. Credit appraisal system can be enforced to take appropriate
decisions regarding the loan proposal viz. tenor, funding, eligibility, EMI etc.
Credit appraisal system is conclusive report, which enables any Credit Officer in
taking the lending decisions according to the norms and policies of organization.
7
1.2 OBJECTIVES OF THE PROJECT
To study the retail assets center in the organization.
To understand the procedure followed while sanctioning the loans.
To study the various types and categories of loan.
To study the all documents required for power drive.
To understand the workflow of Auto loan product.
To study the processing charges for various segment.
To study Rate of Interest (ROI) for different categories of loan.
8
1. 3 RESEARCH METHODOLOGY
Data constitutes the subject matter of analysis. The relevance, adequacy and
reliability of data determine the quality of study. Data form the basis of hypothesis
Testing. They are the basic input for constructing measurement scales. The entire
scientific process of measurement, analysis, testing and inferences depends upon the
Availability of relevant and accurate data. Data is primarily of two types:
DATA COLLECTION METHODS
PRIMARY DATA: -
Data that is collected for the specific at hand is called as Primary Data. The
collection of primary data is costly and time consuming. It calls for greater planning and
co-ordination. Collection of primary data requires deploying more manpower. In
situations where it is impossible to use the secondary keeping in view the requirements of
the study, or in cases where there is no secondary data available, the only way out is to
collect Primary data.
Primary data are those that are collected a fresh and for the first time and this
happen to be original in character. There are several methods of collecting primary data.
1. Observation method
2. Interview method
3. Experimentation method
9
SECONDARY DATA: -
Secondary data may be defined as data that has been collected earlier for some
purpose than the purpose of the present study. Secondary sources of data provide a
wealth of information to the researcher. It often obviates the need of primary data
collected and saves valuable time, effort and money. Even where subsequent primary
data collected is required; an analysis of secondary data enlightens the researcher
regarding many aspects of the study and gives contextual familiarity for primary data
collected. It thus provides rich insights into the research process.
Secondary data means data that are already available the researcher refer to data
which have been already collected and analyze by another person. The secondary data
generally used are
1) Books.
2) Internet.
3) Annual Reports.
4) Manuals.
10
1.4 SCOPE AND LIMITATIONS
SCOPE
This project helps in detail understanding of power Drive.
It gives the information about varies types of loan and categories of loan.
It gives the information about procedure followed while sanctioning the loan.
It gives the information about of required document for Power Drive.
This project helps in understanding the workflow of Power Drive product.
It gives the information of processing charges for various segments.
This project helps understanding the Rate of Interest (ROI).
LIMITATION
Auto loan is very difficult and timely process. So it is impossible to learn all
things in detail in short period.
To study all documents relating to Power Drive is require for project and practical
Knowledge but organization do not disclose their private information.
11
CHAPTER NO. 2
2.1 BANK PROFILE
2.2 STRENGTHS OF BANK
2.3 ORGANIZATIONAL STRUCTURE
2.4 INDUSTRY PROFIL
2.5 PRODUCT OF AXIS BANK
12
2.1 BANK PROFILE
UTI Bank was the first of the new private banks to have begun operations in
1994, after the Government of India allowed new private banks to be established. The
Bank was promoted jointly by the Administrator of the specified undertaking of the Unit
Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC) and other four PSU insurance companies, i.e. National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental
Insurance Company Ltd. and United India Insurance Company Ltd.
The Bank today is capitalized to the extent of Rest. 358.56 cores with the public
holding (other than promoters) at 57.60%.
The Bank's Registered Office is at Ahmadabad and its Central Office is located at
Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices
and Extension Counters. The Bank has a network of over 2854 across India
ATMs providing 24 hrs a day banking convenience to its customers. This is one
of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to
adopting the best industry practices internationally in order to achieve excellence
13
PROMOTERS
Axis Bank Ltd. has been promoted by the largest and the best Financial Institution
of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI
contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries
contributing Rs. 1.5 crore each
SUUTI - Shareholding 27.11%
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act,
1963, with a view to encourage savings and investment. In December 2002, the
UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of
Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the
bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February
2003. In accordance with the Act, the Undertaking specified as UTI I has been
transferred and vested in the Administrator of the Specified Undertaking of the
Unit Trust of India (SUUTI), who manages assured return schemes along with
6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59
crores.
The Government of India has currently appointed Shri K. N. Prithviraj as the
Administrator of the Specified undertaking of UTI, to look after and administer
the schemes under UTI - I, where Government has continuing obligations and
commitments to the investors, which it will uphold.
14
Board of Directors
The Bank has 10 members on the Board. Mrs. Shikha Sharma is the
Chairman and CEO of the Bank.
The members of the Board are :
Mrs. SHIKHA SHARMA Chairman & CEO
Shri N.C. SINGHAL Director
Shri A.T. PANNIR SELVAM Director
Shri J. R. VARMA Director
Dr. R.H. PATIL Director
Smt. RAMA BIJAPURKAR Director
Shri. R.B.L. VAISH Director
Shri. M.V. SUBBIAH Director
Shri. RAMESH RAMANATHAN Director
Shri. K. N. PRITHVIRAJ Director
15
2.2 STRENGTHS OF BANK
STRENGTHS OF AXIS BANK LTD
The vision of is validated by its strength, which are as following:-
UTI Bank Established in Dec,1993
Bank work fully computerized system.
Well connected to contact and customer network of Axis Sales Ltd (Subsidiary of
Axis Bank Ltd). Customer walks into Axis Sales Ltd and meets the Sales
Executive. Auto loan facilities available and franchisees/Agencies also take well
efforts for introduces and recommending the customers Axis Auto Loan
schemes/products.
At the end of March 2009, the Bank increased its reach to 405 cities, towns and
villages across the country through 671 Branches & Extension Counters and 2764
ATMs
Deposit currently stands at over Rest. 87,000 crores with over 83 lakh accounts
Excellent reputation for prompt repayment comparing to Axis Banks (RAC)
competitors.
Wide rural network find Axis Bank Ltd in a place that customers even know
existed. Nationwide network of branches
Customers are assured of quick service. There have been situations in which Axis
Bank Ltd have been sanctioned. Loans within five hours.
16
2.4 INDUSTRY PROFILE
A PROFILE OF INDIA'S BANKING INDUSTRY
OVERVIEW:
India has a strong and vibrant banking sector comprising state-owned banks,
private sector banks, foreign banks, financial institutions and regional banks including
cooperative banks, rural banks and local area banks. In addition there are non-banking
financial companies (NBFCs), housing finance companies, Nidhi companies and chit
fund companies which play the role of financial intermediaries.
Since the launch of the economic liberalization and global programme in 1991,
India has considerably relaxed banking regulations and opened the financial sector for
foreign investment. India is also committed to further open the banking sector for foreign
investment in pursuance to its commitment to the World Trade Organization (WTO).
As monetary authority of the country, the Reserve Bank of India (RBI) regulates
the banking industry and lays down guidelines for day-to-day functioning of banks within
the overall framework of the Banking Regulation Act, 1949, Foreign Exchange
Management Act, 1999 and Foreign Direct Investment (FDI) policy of the government.
STATE-OWNED BANK -
The Indian banking sector is dominated by 28 state-owned banks which operate
through a network of about 50,000 branches and 13,000 ATMs. The State Bank of India
(SBI) in the largest bank in the country and along with its seven associate banks has an
asset base of about Rs. 7,000 billion (approximately US$150 billion). The other large
public sector banks are Punjab National Bank, Canara Bank, Bank of Baroda, Bank of
India and IDBI Bank.
17
The public sector banks have overseas operations with Bank of Baroda topping
the list with 51 branches, subsidiaries, joint ventures and representative offices outside
India, followed by SBI (45 overseas branches/offices) and Bank of India (26 overseas
branches/offices). Indian banks, including private sector banks, have 171 branches/offices
abroad.
SBI is present in 29 countries followed by Bank of Baroda (20 countries) and
Bank of India (14 countries). Private sector banks India has 29 private sector banks
including nine new banks which were granted licenses after the government liberalized
the banking sector. Some of the well known private sector banks are ICICI Bank, HDFC
Bank and Inducing Bank. Yes Bank is the latest entrant to the private sector banking
industry. In terms of reach the private sector banks with an asset of over Rs 5,700 billion
(about US$124 billion) operate through a network of 6,500 branches and over 7,500
ATMs. Foreign banks As many as 29 foreign banks originating from 19 countries are
operating in India through a network of 258 branches and about 900 ATMs. With total
assets of more than Rs 2,000 billion (about 44 billion US dollars) they are present in 40
centers across 19 Indian states and Union Territories. Some of the leading international
banks that are doing brisk business in India include Standard Chartered Bank, HSBC
Bank, Citibank N.A. and ABN-AMRO Bank. In addition, 31 foreign banks (as on
September 15, 2006) belonging to 14 countries were operating in India through their
representative offices.
GROWTH OF THE INDIAN BANKING SECTOR
The Indian banking sector is growing at a fast pace along with the Indian
economy. In this age of globalization, foreigners are also making investments in India
and so Indian banks are planning global strategies. Thanks to liberalization, that the
Indian banks have been able to make a mark for themselves in the world map. The degree
of leverage of Indian banks has increased to 15.8% at the end of March 2007.The overall
banking industry's business has grown to US$ 1172 billion by he end of March 2007.
18
PROGRESS OF COMMERCIAL AND PRIVATE BANKS
The commercial banks have made tremendous progress with respect to its
profitability, capital adequacy, risk management etc. The private banks too are playing an
important role in the Indian banking industry. The private banks are growing at a rate of
35% per annum. As a result the share of the private banks has increased to nearly
16%.The limit of FDI has also been increased from 49 % to 74% in the private banks.
PROSPECTS AND ACHIEVEMENTS OF INDIAN BANKS
But still there is huge potential in the Indian banking sector. India has the second
largest financially excluded house holds (about 135 million) and it is expected that nearly
60 million house hold will be added in India's bankable pool by 2009. So it is quite clear
that the banking industry is going to grow very rapidly. Indian banks are also very
advanced in terms of technology and have vast network of branches. Nine Indian banks
have made their mark in the list of top 50 Asian Banks. The leaders are HDFC and ICICI
bank. State Bank of India (SBI) was the top loan arranger in the Asia - Pacific region in
2007 and Indian banks were the top provider of educational loans in 2007.
FINANCE SECTOR - INDIAN FINANCE SECTOR
GROWTH OF THE INDIAN FINANCE SECTOR
The Indian finance sector is on a roller coaster ride. The Indian stock market
crossed 21,000 mark and Nifty 6,000 for the first time. This was because of the fact that
the investors are interested in the Indian stock market and they are interested in investing.
This sector is also growing because new products and services are being offered to the
people. Wealth management revenues are expected to rise to 37% by 2012. The bygone
year proved to be a golden year for the Indian stock market. It emerged as the third
largest performing market in the world. The Bombay stock exchange also had the highest
ever absolute gain of 6500 points.
19
FINANCE SECTOR OF INDIA IN 2007
The year 2007 was also a defining moment for the private equity market which
was chosen as the most preferred mode of fund mobilization. India also topped the Asia
private equity in 2007. India has also emerged as the fastest growing market in the Asia -
Pacific region for stocked finance. It also has a potential market for domestic insurance in
structured finance market. India is also attracting people to invest in mutual funds. The
Indian mutual funds industry is expected to grow at a rate of 30% in the next three years.
So if you want to make your fortunes then surely invest in the financial sector of India.
20
2.5 PRODUCTS OF AXIS BANK
PRODUCTS:-
POWER DRIVE
PERSONAL POWER
LOAN AGAINST PROPERTY
LOAN AGAINST SHARES
POWER HOME
21
CHAPTER NO. 3
POWER DRIVE
CAR LOAN it is a credit facility or loan taken for the purpose of purchase a new car.
Car Loan are provided based on the on road car value, mainly quotation given by car showroom with the registration value of the car. Buyer can apply for a car loan even before him select his car. The car loan amount would be sanctioned or approved for
borrower, based on his repayment capability. Interest rates based suited An important factor that goes in to EMI [Equated Monthly Installment] calculations is the interest rates,
which may vary from bank to bank, so applicant do compare them. Also do a complete and detail analysis of the various options like the interest rates i.e. fixed and floating rate of interest. Loan praposal apprisal systen is by far the heart of procedure, which is followed before any loan is granted. In this aspect basically the valid extracts are taken out from the given reports and data that enables any cedit officer to take decision regarding the finalization of loan praposal. Credit apprisal system is a summery of extracted records regading the verifications made towards the profile of the applicant.
22
3.1 FEATURES OF POWER DRIVE
3.2 THEORY OF POWER DRIVE
23
3.1 FEATURES OF POWER DRIVE (AUTO LOAN)
1. Competative interest rate
2. On road funding
3. Doorstep services
4. Part payment facility
5. Special scheme for customer
POWER DRIVE (AUTO LOAN)
A car loan that lets you fly
Is your dream car still a dream?
Axis Bank's Power Drive will help realize your dream. With some of the world's
finest cars now available in India don't let the price tags discourage you. Power Drive
will bridge that distance by financing a major part of the cost of your new car. So,
you don't have to put the brakes on your ambition.
TERMS & CONDITIONS :
Loan value calculated as per the on-road-price of the vehicle
Attractive interest rates
LTV of up to 85% of the on-road-price on selected models
Loans available for salaried and self employed individuals proprietorships and
partnership firms
Special schemes for Axis Bank Salary and Priority accountholders
No income proof schemes available
Loans offered from Rs. 1 lac onwards
Loans tenure from 1 year to 7 years.
24
ELIGIBLE SEGMENTS
The following applicants can apply for the loan:
1. Salaried Individuals
2. Self-employed individuals
3. Proprietorships
4. Partnerships
5. HUFs (with prior clearance of CO)
6. Trusts
All applicants must be either Resident Indians or Non-Resident Indians
For NRI cases, a blood related (father/mother/wife/children) Resident Indian, as
co-applicant is required. Cheques can be taken from either the Resident co-
applicant’s account or the NRI’s Resident account.
For all HUF cases, the Karta of the HUF must be taken in as co-applicant in his
individual capacity
Directors (other than working Director employed in professional capacity) cannot
apply as salaried employee unless the Balance Sheet of the company is submitted
along with the personal ITR of the applicant. They would be considered under the
self-employed category.
In case of Trusts, the following documents must be collected in addition:
1. Certified True Copy of the Trust Deed
2. Copy of the resolution passed by the Board of Trustees/Directors authorizing
borrower
3. Certified true copy of the Registration Certificate from Charity
Commissioner / Societies Registration Act
25
SCHEMES
Banks would be offering the following schemes under the Auto loans product:
1. Vanilla Product
2. Salary Account Product
3. Priority Account Product
4. No Income Proof Product
5. Repayment Track Record Product
6. Credit Card Product
7. Gross Receipts Product
8. Defense Personnel Product
9. Special Product for working Women
26
PRODUCT-WISE FEATURES
1. VANILLA PRODUCT
All category cars can be funded
LTV as per grid would apply
All documents as defined under documentation would have to be collected
Last 3 month’s bank statements to be collected and to be verified for negative
traits like cheque bounces, minimum balance charges, penal interests etc.
Deviations would be permissible as per deviation grid
6 months bank statements to be collected from cash salary cases. No deviations
permitted for cash salary.
Eligibility Criteria:
For Salaried:
1. 3 times Gross Salary p.a. OR (30 times of average net salary of 3 months for cases
Where Form-is not available)
2. EMI must not exceed 50% of net salary
3.
For Self-employed:
1. 6 times gross Income p.a.
2. The RAC Head must ensure that deviation of non-availability of Form-16 must not be taken for more than 5% of the total portfolio.
2. SALARY ACCOUNT PRODUCT
27
All category cars can be funded under this product
All customers having their Salary A/c with UTI Bank since the past 3 months will
qualify under this scheme
All documents as defined under documentation would have to be collected (other
than income documents)
Deviations would be permissible as per deviation grid
Eligibility:
1. 30 times Average Net Salary Credited during last 3 months
2. EMI must not exceed 50% of net salary
Benefits:
100% Waiver of Processing Fees
Waiver of Salary Slips & Bank Statements
documents & bank statement
3. NO INCOME PROOF PRODUCT
Only Category A, B, C cars can be funded under this product
The product can be offered to all eligible applicants – Salaried, Self-employed,
Partnership Firms, Trusts and HUFs
LTV would be as follows:
28
CATFor Tenure < 36 months
For Tenure > 36 months, <= 60 months
Category A 75% 70%Category B 75% 70%Category C 60% 55%Category D NA NA
Eligibility:
The average bank balance should be at least 1.5 times the EMI. Loan amount to
that extent can be granted
29
4. REPAYMENT TRACK RECORD PRODUCT
Only Category A, B, C cars can be funded under this product
In addition to the documents mentioned under documentation, the sanction
letter of the original loan (repayment track of which is considered) along with
the repayment schedule needs to be collected.
This loan should have been for a minimum loan amount of Rs. 100000/- for
Category A/B cars and Rs. 300000/- for Category C cars.
30
VERIOUS CONCEPT OF POWER DRIVE
Branch/Retail Asset Centre (RAC)-
Means the office of the Bank at the place mentioned in the schedule & where the
loan is disbursed & shall include any other Branch/RAC where the loan account is
maintained or transferred to any time at the sole discretion of the Bank.
Loan-
Loan means loans granted by the bank in terms of this agreement and shall also
mean to include the principal amount of loan and all dues outstanding there under if
context so requires.
Interest Rate-
Interest Rate means the rate at which the bank shall compute and apply interest on
the loan, as stated in the schedule or as may be amended from time to time by the
Bank.
Penal/Default Interest Rate-
Means the rate at which Bank shall compute &apply interest on all amount not
paid when due for payment (or reimbursement) by the Borrower to the Bank, as
stated in the schedule or as may be amended from time to time by Bank.
Vehicle-
Vehicle means the vehicle hypothecated to the Bank more particularly described
in the schedule, for the purchase of which, the loan has been granted by the Bank.
31
Equated Monthly Installment (EMI)-
Shall mean the amount payable every month by the Borrower to the Bank
comprising of interest, or as the case may be, principle & interest calculated on the
basis of monthly rests at the rate applicable as stated in the schedule and is rounded
off to the next rupee.
32
POWER DRIVE:
Eligibility
A) Salaried Individuals
Any individual who is in permanent service in Government or reputed companies
Any individual whose work-experience is minimum 2 years of total employment
The applicant in all the cases should be above 21years to 60 years of age at the
time of loan commencement and up to the age of superannuation
B) Self Employed Individuals/Proprietary Concerns
Any individual filing Income Tax returns can apply
Any individual whose work-experience is minimum 3 years in Business
The applicant in all the cases should be above 21 years of age at the time of loan
commencement and up to 65 years or less at the time of loan maturity
C) Partnership Firms/Trusts
Any firms whose minimum turnover of Rs.4.5 lacs
Any firms whose work-experience is minimum 3 years in Business
The applicant in all the cases should be above 21 years of age at the time of loan
commencement and up to 65 years or less at the time of loan maturity
33
POWER DRIVE
Loan Amount
Loan Limits on POWER DRIVE
Minimum – Rs.1 lace
Maximum – Depend on car amount
( No maximum limit in Auto Loan)
CHARGES:
The following charges would be applicable:
I. Processing Fee Rs. 3250
II. Stamp Duty – At actual
III. Cheque bouncing charges Rs. 500/-
IV. Late Payment Penalty: 2% per month
V. Cheque swapping charges Rs. 500/-
VI. Loan cancellation/Re-booking charges Rs. 1000/-
VII. Statement charges Rs. 500/-
VIII. Duplicate Repayment Schedule charges Rs. 500/-
IX. Duplicate No dues Certificate/NOC Rs. 500/-
34
REPAYMENT MODE:
Repayment would be by way of:
Post Dated Cheques (PDCs): shall mean the cheques issued by the borrower to
match the due date of each installment.
Standing Instructions (SI): shall mean the written instructions issued by the
borrower to the bank to debit the account to borrower maintainined with bank for
facilitating payments of EMIs
Electronic Clearing Cheques (ECS): shall mean the debit clearing service
notified by Reserve Repayment must be through the same bank account which has
been verified at the time of sanction.
PROCESSING FEES FOR AUTO LOAN
Category of car
Existing Processing Fee Processing Fee
A Min of Rs.2000+1%of the loan amt
Min of Rs.2500+1%of the loan amt
B Min of Rs.2000+1%of the loan amt
Min of Rs.3000+1%of the loan amt
C Min of Rs.2500+1%of the loan amt
Min of Rs.3000+1%of the loan amt
D Min of Rs.3000+1%of the loan amt
Min of Rs.3500+1%of the loan amt
35
t.
ELIGIBILITY CRITERIA & DOCUMENTATION
Purpose Salaried
Self -Employed
Individuals
/Proprietary concerns
Partnership Firms/Trusts
Age
Minimum 21 years,
Maximum up to 58 years
or 60years(age of
superannuation)at the time
of loan maturity
Minimum 21 years,
Maximum 65 years at the
time of loan maturity
Loan executing partner/trustee (as
applicable)to confirm to these
norms: Minimum 21 years,
Maximum 65 years at the time of
loan maturity
Loan
amountMinimum Rs.1,00,000/- Minimum Rs.1,00,000/- Minimum Rs.1,00,000/-
TenureMinimum1 year &
Maximum7 years
Minimum1 year &
Maximum7 years
Minimum1 year & Maximum7
years
Income
Norms
Minimum Rs.1,00,000/-
gross annual income for
category A/B cars &
Rs.2,00,000/- for category
C/D cars (Gross annual
income is the gross salary
as reflected in the form-16
before any deduction)
Minimum Rs.60,000/- for
category A/B cars &
Minimum Rs.1,00,000/-
for category C/D cars
(Gross income: Net Profit
after tax+ Depreciation)
Minimum Rs.60,000/- for category
A/B cars & Minimum
Rs.1,00,000/- for category C/D
cars (Gross income: Net Profit
after tax+ Depreciation)
Work-
experience
Minimum 2 years of total
employment
Minimum 3 years in
BusinessMinimum 3 years in Business
Turnover NA NAminimum turnover of Rs.4.5 lacs
Telephone
Landline
Residence/Postpaid
mobile connection
Landline
Residence/Postpaid
mobile connection
Landline Residence/Postpaid
mobile connection of loan
executing partner /trustee(as
applicable
36
Proof of
identity
Passport/Voters
Card/Driving License
with photograph/PAN
card
Passport/Voters
Card/Driving License
with photograph/PAN
card
Copy of Partnership
Deed/Memorandum & Articles of
Association/Certified true copy of
Trust Deed (as applicable) & the
following documents required for
the loan executing partner/trustee:
Passport/ Voters Card/Driving
License with photograph/PAN
card
Proof of
income
Latest salary slip showing
all deductions and Latest
Form16/Income Tax
Return(Form 16
Latest Income Tax Return
and Computation of
income
Audited Balance Sheet, Profit
&loss Account for last 2years
along with the latest 2Income Tax
Return
Address
Proof(of
the residing
city)
Ration Card/Latest
Electricity Bill/Latest
Telephone
Bill/Passport/Latest Credit
Card Bill/Driving License
Ration Card/Latest
Electricity Bill/Latest
Telephone
Bill/Passport/Latest Credit
Card Bill/Driving License
Latest Electricity Bill/Latest
Telephone Bill/Shop
Establishment Act Certificate/SSI
Registered Certificate/Sales Tax
Certificate
Signature
Verificatio
n
Passport Copy/ Driving
License with
photograph/Bankers
Verification
Passport Copy/ Driving
License with
photograph/Bankers
Verification
Bankers Verification
Additional
Documenta
tion
NADeclaration from
Proprietor
Authority letter signed by all
partners/Board Resolution for
trusts
37
DEALERS OF CARS IN NASIK OF AXIS BANK
Dealers Name Manufacturer
Automotive Manufacturers Pvt. Ltd Maruti
Heak Auto Pvt. Ltd Skoda
Jitendra Motors Pvt. Ltd Mahindra & Mahindra
Jitendra Wheels Pvt. Ltd GM
Moharir Ford Ford
Panchavati Automobile Pvt. Ltd Hyundai
Seva Automotive Pvt. Ltd-Nasik Maruti
Shaan Cars Pvt. Ltd Maruti
Sterling Motors Tata
Ujjwal Automotive Pvt. Ltd Tata
Ujjwal Autowheels Pvt. Ltd Hyundai
Wasan Motors Pvt. Ltd Tata
Wasan Toyota Toyota
Cross Sell All Manufacturing
38
DOCUMENTATION OF POWER DRIVE
Pre-approval Documents
Age proof
2. ID proof
3. Application form
4. Photograph
5. Residence proof
6. Income proof
7. Bank statement
8. Signature verification proof
9. Proforma invoice
Post Sanction / Pre Disbursement Documentation
1. Agreement duly signed along with RTO set
2. Post Dated Cheques (PDC s) / ECS form / Standing Instruction (SI) request
3. Margin
39
LOAN TO VALUE (LTV) GRID & CATEGORY FOR CAR LOAN AS ON 19TH JAN 09
Company Models & its variants
CAT % LTV up to 36 months
% LTV up to 60 months
% LTV up to 84 months
Maruti Maruti800 A 85% 80% 75%Omani A 80% 75% NAZen B 85% 80% 75%Alto B 85% 80% 75%Wagon R B 85% 80% 75%Versa C 75% 65% NAEsteem C 80% 75% 70%Baleno C 80% 70% 65%Vitara D 75% 70% 65%A-Star B 85% 80% 70%Swift B 85% 80% 75%Swift Dzire C 85% 80% 65%SX4 C 85% 80% 65%
Hyundai Santro B 85% 80% 75%I10 B 85% 80% 75%Getz B 85% 80% 75%I20 B 85% 80% 70%Accent C 80% 75% 70%Verna C 80% 75% 65%Elantra C 75% 70% NASonata D 80% 75% 65%Tucson D 70% 65% NA
Mahindra Bolero C 75% 65% NAScorpio C 80% 70% 65%Xylo C 80% 70% NALogan C 80% 70% NA
Mercedes Mercedes D 75% 70% 60%Mitsubishi Cedia C 80% 70% NA
Lancer C 80% 70% NAMontero D 65% NA NAPajero D 80% 70% NAOutlander D 70% 65% NA
Skoda Fabia B 85% 80% NACombi D 65% NA NAOctavia D 80% 75% NALaura D 75% 70% NASuperb D 75% 70% NA
40
Tata Sumo C 80% 65% NASafari C 75% 65% 60%Indica B 85% 80% 75%Indigo C 80% 75% 70%Marina C 75% 70% NA
Toyota Corolla D 80% 75% 70%Camry D 80% 75% 65%
Innova C 85% 75% 70%Land Cruiser Prado
D 75% 70% NA
GM Chevrolet Aveo C 80% 75% 65%
ChevroletSpark B 85% 80% 75%Chevrolet U-VA
B 80% 75% 65%
Chevrolet Optra C 80% 75% 65%
SRV C 80% 75% NATavera C 80% 75% NACaptiva D 70% 65% NA
Fiat Palio B 80% 65% NALinea C 75% 70% NAPetra C 75% 65% NAFiat 500 C 50% NA NA
Ford Ikon C 80% 75% NAFiesta C 80% 75% 65%Fusion D 75% 70% NAEndeavour D 75% 70% NA
Honda City C 85% 75% 70%Accord D 75% 70% 65%Civic D 80% 75% 70%CRV D 75% 70% NA
Nissan Teana D 75% 70% 65%X-Trail D 75% 70% 65%
Volkswagen Passat D 75% 70% NAVW Jetta D 75% 65% NA
Audi Audi D 75% 70% NABMW BMW D 75% 70% NALand Rover Discovery D 70% 65% NAOther Other D 65% NA NA
41
Current (New) RATE OF INTEREST (ROI) STRUCTURE
ROI STRUCTURE FOR DEALER/DSA SOURCING
CAR CATEGORY Up to 35 months 36-60 months 60-84 months
CAT A 11.10% 11.25% 11.50%CAT B 11.25% 11.50% 11.75%
CAT C 11.50% 11.75% 11.95%CAT D 11.75% 11.95% 12.15%
42
CHAPTER NO. 4
PROCEDURE OF POWER DRIVE
STEP SALES PROCESS: (POWER DRIVE)
43
The sales process is a series of sequential steps, which helps
to increase the possibility of completing a sale successfully.
Customer
Step 3 Step 1
Scheme Step 4
2
Executive (AXIS SALES LTD)
44
APPRAISAL PROCESS :
Step 1 Customer
Step 3 Executive (AXIS SALES LTD)
Step 2
(Bank Credit Depts.)
Step 4
Branch Office Step 5 Step 5
45
Approve
rejected
46
CREDIT APPRAISAL PROCESS:-
Step 1 :-
This is first step of appraisal process that customer agrees to take loan from AXIS
BANK because he like loan scheme and satisfy him.
Step 2 :-
AXIS SALES LTD (Subsidiary of AXIS BANK)
AXIS SALES LTD field Executive gives all the case details to the Field Investigation.
For further process.
Field Investigation: -
Every case should be finalized only after a through field investigation is carried out so
that only ‘good customer’ are extended finance.
Step 3:- AXIS SALES LTD (Subsidiary of AXIS BANK)
Field Executive visits the customer’s home or office conducts the Field
Investigation and collects all the necessary documents which are required
for loan appraisal.
Step 4:-
AXIS SALES LTD (Subsidiary of AXIS BANK)
In fourth step Field Executive submits all the documents to the AXIS
BANK Branch Office for the purpose of keeping various records
Step 5:-
Branch Office checks the document for creditworthiness and can Approve or Reject the
proposal its depends upon the financial position of the costumer.
Approval of Proposal: -
Senior Field Executive can sanction up to maximum of one power home/power Drive
product per client only if authorized by Branch Manager.
Rejection of Proposal: -
Rejection should be communicated to the customer within two days after the Field Investigation Report (FIR)
FILE PROCESS FILE LOGIN WITH FIELD INVESTICATION REQUEST(MIS ENTRY) FIELD INVESTICATION FIRED CIBIL REPORT FILE CHECKING FOR QUIRIES(IF ANY) CHECK FI REPORT RCU FIRED(IF FILE COMPLITE WITH DOX) LAON CALCULATION (CAS PREPAIRE)/ELIGIBILITY GET SANCTION TO –{FI,RCU,CIBILREPORT IN FILE} ISSUE SANCTION LETTER COLLECT DISBUSMENT DOCUMENTS [POSTDATED
CHEQUES,LAON AGREEMENT ,SANCTION LETTER]
FINN ONE ENTRY [SOFT ENTRY] LOGIN TO OPERATING SYSTEM COLLECT ACKNOWLEDGEMENT
OPERATIONAL GUIDELINES
All the details asked for ,including the CPA login
number(login register/excel sheet to be maintained)
Incase the customer has existing relationship with AXIS
BANK then customer ID need to filled(check that customer had earlier applied for
loan & whether the case was sanctioned or rejected)
For prompt payment discount scheme cases a stamp to
affix: LNPPD Scheme &the SRAC name. Also mention incase its express loan.
47
BANK PROCESS:
AXIS BANK Branch (RAC Head)
Application Form
Performa Invoice Branch Accountant
Proof of Identity And Photographs
Agreement Book
PDC Checklist
48
Step 1 :-
In the Branch Credit Depts. Accountant/ Head verifies all
the documents, submitted by costumer and then decide whether the
loan should approve or not because all the documents must fulfill
the requirements of AXIS BANK
Step 2 :-
Branch Accountant at the Bank Branch Office checks all
documents for completion of proposal and decides EMI for that
particular loan proposal.
49
DISBURSEMENT PROCESS :-
Branch Office
Step 5 Payment Step 1
AXIS BANK LD
Step4 Invoice
Insurance Step 3 DEALERS Step 2
Consumer
50
COLLECTION AND RECOVERY PROCESS:-
The collection and recovery process can be broken up into four
stages they are as follow:
Stage 1 stage 2
Cheque Return Collection Stage 3 stage 4
Follow up & Repossess And Recovery Legal Action
51
Stage 1 (Collection):-
Branch office
Step 1 Step 1
PDC Cash / DD
Step 2 Step 2
Bank
52
Collection:-
Step 1 :-
Payment from the customer can be collected by Post Dated Cheque (PDC) or by Cash,
Electronic Clearing System (ECS), Standing Instruction (SI) or Pay Order as per the
customer demand.
Step 2 :-
The collected payments should be deposited into the Bank
Stage 2 (Cheque Return):-
Axis Bank Step 1
Axis Sales Ltd/AXIS BANK
53
Executive officer/Recovery Manager
Step 1 :-
Post Dated Cheque (PDC) bounces, due to unavailability of balance in
bank.
Bank sends Cheque Return Advice (CRA) to Axis bank credit Depts
/Recovery Officer.
Step 2 :-
Axis Credit Depts. officer/Recovery Field Executive checks Cheque
Return Advice and find out reason of cheque bounce and follow up
recovery process.
Stage 2 (follow up and recovery):-
Axis Sales Ltd Field Executive/Axis rec.Officer
54
Soft Bucket Hard Bucket (2-4 EMI) (More Than 5 EMI)CLASSIFY INTO TWO CATEGORIES:-
Soft Bucket:-
Customers who delay one or two installments due to some reason or Carelessness
from them.
Hard Bucket:-
Customers who paid no installments beyond initial down payment or some other
situations like...
Two EMI defaults in the first six months.
Four to Five or more than five EMI defaults in one year.
55
Stage 4 (Repossess & Legal Action):-
Customer Step 2
Step 1 step 4
Axis sales Field Executive
Step 3
Axis bank Branch Office Credit Manager/RAC Head
56
Step 1: -
A Customer of Axis bank refuses to pay installment at right time or may be
not ready to pay the remaining installments
Step 2: -
Axis Bank Finance/Credit Executive conducts two field visits and sends at
least two Registered Post Acknowledgement due to those customers who refuse to
pay the remaining installments.
Step 3: -
Repossesses the Car and informs the Branch. Repossession is to be initiated
only as the “last resort”. In other words emphasis should be on cash flow (recovery
of EMI).
When everything fails only then repossession should be taken as a final step.
Step 4:-
Customers who do not paid their installments regularly Axis Bank takes
legal action against the customer. It is a last and final step of recovery process.
57
58
CHAPTER NO. 5
POWER DRIVE APPROVAL
59
Appraisal Note Car Loan (CAS)Date: 13-May-09 Resi Add: Flat No.1 Jaydev Apt.Ganesh Nagar
Satpur ,NasikApp Name: Kailas Jadhav
Office Add:
Reliance Money88, MIDC, Ambad, Nasik
Co-App Name: NAApp Date of
Birth:15-3-1983
App Designation:
Dy.Manager-Manufacturing
Name of Company
Reliance Money Contact No.
97683521032
No. of years in Exp:
21 yrs Ex. Name -
Dealer Name: SEVA Motors Ltd. Sourcing DealerMonth
Feb- 09 Mar-09 Apr-09On Road Amount Ex-Showroom
Modal ALTO Lxi
CAT B
App Net Salary 23318 32998 35386 Asset Value 216259 216259
Note RTO 18200 NAInsurance 8527 NA
Total 23318 32998 35386 Octrai 0 NA
Discount 0 0Annual Present
Salary:424632 Total Asset Value 242986 216259
Loan Request 200000 200000Margin 42986 16259
Monthly Salary: 35386 LTV% 82. 31 92. 48
Less: Obligations (If<18 Months)
15530 Auto Shield(3 Years)
0
Net Salary 19856 Service Tax (10.30%)
0
Total Auto Shield: 0For Salaried Loan
Request200000 Loan Request 200000
Total Loan Amount 200000Net Annual
Income238272 Loan
Recomm.200000
Current EMI 6,452Monthly Salary: 19856 Tenor 36 Paying EMI ADV 6,452
Interest Rate 10.59% Interest Rate
10.59% Monthly Inc 19856
Tenor 36 EMI 6452 IIR 32.49%Applicant Age at End of Tenor 29 years
60
Calculation Sheet:
Feb- 09 Mar-09 Apr-09Net Salary 34418 57166 35386
Less:Med Reim. -24168
Leave Tra Allow. -11100
Net Adjusted Salary 23318 32998 35386
DEVIATIONS AUTHORITY MITIGANTSP.F.-Waiver by 1%:RAC Head Minimum P.F. of Rs.3250 will be collected.
Ltv deviation by 2.31%: RAC Head
61
STRENGTHS WEAKNESS
Good Income
Owned Residence
Processing Fees 3250
Service Tax 10.30%Foreclosure Charges 5%
Security Taken:Guranty/PDC/Check
Of FacilityNature Facility Power DriveVehicle Model Logan
Repayment Mode ECS/PDC
APPRAISAL NOTE OF CAR LOAN :-
This note is very important in all car loan documaintation. It is also called as
Credit Appraisal System ‘CAS’. This note makes by Credit Manager in Credit
Department. It includes all details of applicant name, address, and dealer name, his
personal official details, EMI, and calculation of given loan.
As per my analysis-
Kailas Jadhav has taken the car loan Rs.2, 00,000/-payment will be made in favor
of Dealer Sourcing. SEVA Motors Pvt. Ltd @12% interest rate for 36 months.
Applicant has applied under Vanilla Product Scheme.
As per bank condition under Vanilla Product Scheme Minimum age of applicant
is 21years & stability is 2 years. But this applicant is 46 years old & he is working
in Reliance Money as Di. Manager Manufacturing scince last 4.5 years
Repayment mode is ECS/PDC from HDFC BANK.
Applicant has purchased Alto Model which comes under categories B.In CAS Ex-
Showroom Price is Rs.216259/-but after RTO &Insurance Total Asset Value is
Rs.242986/-.Applicant has paid Margin money to Dealer Rs.42986/-.Bank has
paid loan amount to applicant Rs.2,00,000/-
Calculation of EMI-
As per chart of Rate of Interest (ROI) EMI for categories C for 36 months is
Rs.3226/-for Rs.1, 00,000/-
For Rs.1, 00,000/-EMI is Rs.3226/-
For Rs.2, 00,000/-EMI is?
2, 00,000 * 3226 =Rs.6452/-
1,00,000
62
As per Vanilla Product Scheme EMI must not exceed 50%of Net Salary.In this
case Net Salary is Rs.19,856/-
Rs.19, 856/- = Rs.9928/-
2
Here EMI is not exceeding 50% of Net Salary.
As per the IRR calculation sheet for Auto Loan Mr.Kailas has paid Margin money
to Dealer Rs.42,986/-In IRR calculation sheet IIr is 12% means Bank get interest
@12% but customer can see his Interest Rate 10.59%.Interest Rates are different
63
CREDIT SCORING SHEET:-
As per Credit Scoring Sheet bank calculated applicant scores as varies
information which is included in that sheet. In this sheet total score is 100 but when
applicant got more than 50 scores then he applied for auto loan. This sheet is for
salaried/self employed applicant.
In this case applicant is salaried and he got 70 scores out of 100 in all information.
So applicant has applied for Auto Loan.
As per Income Information applicant Net Salary is Rs.4,24,632/-.So he gots 25
scores under this Information.
As per LTV Information applicant gots 20 score because he has received LTV
above 80% and below 90%.
As per Residence Information applicant gots 15 score because he is living his
owned house.
Applicant has only post paid mobile not landline. So he gots 5 scores under this
Information.
Applicant is working in Reliance Money from last 4.5 years but not 5 years. So he
gots 5 scores under this Information.
64
SALARY SLIP: -
As per bank documentation rules Pay Salary Slip is must be necessary in Auto
Loan file processing. This slip takes from the applicant because we know his financial
information. How much he earned monthly income from his business. Which facility has
provided to applicant from his Organization. From this information manager can decide
applicant is capable for repayment of all loan which he has taken.
Above Pay Salary Slip we know that he is working in Reliance Money as
Dy.Manager Manufacturig scince last 4.5 years. Applicant got salary Rs.34, 418/-in
Feb.2009.As per bank condition Applicant salary must above Rs.1, 00,000/- for Vanilla
product. In this case his Annual Income is Rs.2,38,272/-.So applicant is applied for Auto
Loan
65
APPLICATION FORM:-
In Application Form has taken all detail information of applicant. We can know
from this form his name, loan amt, address of Residence & office, information of official
& banking, detail information of Co- applicant and many other information.
In this case we know that:-
Kishor Ram has taken the car loan Rs.2, 00,000/-payment will be made in favor
of Dealer Sorcing.Seva Motors Pvt Ltd @12% interest rate for 36 months.
He is living his self owned house with his wife and 1 child. Both are dependent on
the applicant.
Firstly applicant has not any vehicle.
An Mr.Akash Gupta & Mr.Mahesh Sharma reference has taken from Reliance
Money .both references of his friends.
66
RESIDENCE VERIFICATION REPORT –
Executive goes to that place where applicant actually currently lives. He takes the
interview of applicant neighbor & asks the various questions about his applicant. In this
case Applicant is living in self owned Row house.
Here neighbor report has received positive & all information has received from
applicant is good so applicant has sanctioned the Auto Loan.
67
BUSINESS VERIFICATION REPORT –
From this report we know the applicant business details information like his
industry name, work experience, designation, type of job and office.
In this case we know that applicant is working Reliance Money from last 4.5
years. His designation is Di..Manager in that company. Bank study all details because
repayment of that loan. Here applicant Business verification Report is very good so he
gots the loan from Axis Bank.
68
BANK STATEMENT -
Bank takes Bank Statement from applicant for purpose of see to his financial
position in bank. In this case applicant has firstly taken the Different loan from other
bank & now days he pays his Installment, EMI Charges from HDFC Bank.
In month of Dec.2008 applicant withdraw amount for purpose of EMI Rs.11355/-,
Installment of Rs.4175/-& deposit his salary Rs.35, 352/-
At the month of Dec. his balance is Rs.50,112.09/-
In month of Jan.2008 applicant withdraw amount for purpose of EMI Rs.11355/-
Installment of Rs.4175/-& deposit his salary Rs.35, 352/-
At the month of end is balance is Rs.35,081.00/-
In month of Feb.2008 applicant withdraw amount for purpose of EMI Rs.11355/-
Installment of Rs.4175/-& deposit his salary Rs. 34,418.00/-
At the month of end is balance is Rs.53,929.04/-
As per this statement his Credit Balance is more than Debit Balance. So we can
say that his bank statement is good so applicant is liable for take the Auto Loan.
69
CIBIL [Credit Information Bureau (India) Limited]-
USE OF CIBIL (Guidelines)
A. Process C
RE
To be fired for loan application
To be fired only by RAC Head/Authorized official
Application should be logged in
Report to be fired by preferably on :-
a) PAN Card Number , b)Passport Number
All Reports fired have to be entered in to the register
USE OF CIBIL (Guidelines)
B. Interpretation
How many loan are reflected have we factored all the obligation
Is there a delinquency in the any of the loan ?If yes ,How many days, Is it every
month
Credit Card over due
If more than two cards and each Card showing overdue for 30-60 Days than we
analysis of applicant Case with caution
All Reports fired have to be entered in to the register
List of Factors which Influence the score
Payment History
Outstanding Debt
Length of Credit History
Number and types of Credit Account
Utilization
Application for new Credit
70
In CIBIL we can know which loan has taken by applicant previous & their
installment, EMI amount. In this case applicant has taken the loan of credit card Rs.1,
000/-, housing loan Rs.12, 00,000/- & personal Loan Rs.1, 50,000/-
In CIBIL minimum score should 760 is essential but in this case applicant score is
822.This score is more because he has not bounces any cheque of installment which he
has taken the loan.
I have not joint this CIBIL in my Project because bank does not provide their
private information to others.
71
CHAPTER NO. 6
CONCLUSION
72
FROM THE ABOVE PROJECT & STUDY MADE ABOUT IN RETAIL ASSET
CENTRE OF AXIS BANK WE CAN CONCLUDE THAT -
Retail Asset Centre of Axis Bank deals with Personal Power, Home Loan, Loan
Against Property and Power Drive. This all centre related to only loans in Axis
Bank.
The Power Drive procedure is a lengthy one and sanctioning of a Loan depends
on many things like documents, Income of person and his status.
The amount of Loan to be sanctioned is mainly calculated under Credit Appraisal
System (CAS) which decides loan amount, percentage of LTV, Rate of Interest,
Tenure, Equated Monthly Installment (EMI), discount, Repayment Mode, fees
and charges.
During the study we came know about various documents to be fulfilled for
completion of the procedure of Power Drive.
The Project gives me the opportunity learns various types of loan in Axis Bank.
73
CHAPTER NO. 7
SUGGESTION AND RECOMMENDATIONS
74
The Company should expand more no. of offices in the rural areas to capture all places market :-
The number of Axis Bank offices in urban area. Axis Bank Finance should open
some new offices in rural area also so, that they can try to capture all places market.
Post Disbursal Supervision should be there:-
After giving loan to the client there should be proper supervision on client what
he does, whether he is earning the same amount, designation which he mentioned in
the document while taking loan or not.
Experts in the field of advance should be appointed for analyzing the
financial position of the client before approval of the loan:-
It is very important part as far as recovery process is concern if the client become
bankrupt after taking loan then repayment of the loan is not possible, so in that case
company should suffer loss & that’s why experts in the field of advance should be
appointed for analyzing the financial position of the client before approval of the
loan.
In minimum time Company should provide faster service provide of loan to their Applicant:-
Formalities like verification of various documents & sanctioning the loan, it takes
much more time for actual loan giving. Because of this time consuming process
costumer may turn to the another organization for taking or sanctioning the same
type of the vehicle loan, so it is better that Company should minimize and standardize
these time consuming process at certain point or at certain level to attract more and
more number of customers.
The recovery process of the given loans should be more emphasized and
very strict norms should be adopted for this purpose :-
75
After giving the loan, the recovery of that loan becomes very essential, so the
company should have to make some norms against recovery.
Some of the norms I really strict want to suggest to the Axis bank Finance are as
follows:-
The charges of penalty should increase, so the existing costumers should pay their
installments on time.
If the client fails to pay the preceding six installments of his loan, Axis Bank take
the possession of that vehicle and made auction sale for recovery of their loan
Hidden information should be clear to customer
76
CHAPTER NO. 8
BIBLIOGRAPHY
77
BIBLIOGRAPHY
Newspapers
1. The Economic Times
2. The Times of India
www.google.co.in
www.axisbank.com
Auto Loan File.
78