final projectcustomer attitude towards icici bank loan schemes inder.doc

EXECUTIVE SUMMARYThe summer training project undertaken entitled CUSTOMER ATTITUDE TOWARDS ICICI BANK PERSONAL LOANS A case study of Panipat City. is an attempt to study the various factors which influence the purchase decision of a consumer.The objective of the study was to study the preferences of consumers towardsICICI BANK personal loans available in the market and to study the influence of various aspects on Consumer preference, Brand choice & their needs. The study relates to PanipatCity.Exploratory research study has been used. The basic aim of exploratory research is to gain familiarity with the phenomenon or to achieve new insights into it. So, the study has tried to find out the influence and effectiveness of these factors on purchase decisions. The research was carried out using both primary and secondary data collection method. Questionnaires were used in order to collect the information related to the various factors taken into consideration by the consumer and questions are related to their attitude towards various features of ICICI Bank personal loans which may influence purchase decision of a consumer. The sample size was 100. The study resulted that all the factors which I considered influence the purchase decision. Particularly the Interest rate and Brand name are the main factors which influence the preference of a consumer.Various statistical tools have been applied in order to analyze the collected data. Percentage method was primarily used for analysis. Percentage have been found for all the parameters and based on these percentages bar graphs and pie charts have been formed. Various tools were used and also XLSTAT software has been used.

The research report gives maximum analysis and strategic suggestions to the various companies which manufacture 1.5 ton window air conditioners. This research report suggests that emphasis should be given on the fixation of price which is an important factor considered by consumers while making purchaseACKNOWLEDGEMENTIn this present world of competition there is a race of existence in which those who are having will to come forward will succeed. Project is a bridge between practical and theoretical working, with this will I have joined the project. I really wish to express my gratitude towards all those people who have helped me.

I am really indebted to Dr. Vikas Daryal (Director, TIMT) & MS Shruti kapoor (HOD, MBA ,TIMT)Yamunanagar, for his kind hearted approach. I am also very thankful to Ms. Surbhi Makkar Faculty. (MBA) for his timely guidance, supervision & encouragement that have helped me to get this golden opportunity and who provided me his expert advice, inspiration & moral support in spite of his busy schedule & assignments, has mainly provided my understanding of this project.

Last , but not the least, I say only this much that all are not to be mentioned but none is forgotten and I will like to extend my special thanks and gratitude to my parents who always encourage me in pursuit of excellence.

(Inderjit Singh)TABLE OF CONTENTS

Page No1) Introduction

I. Profile of the study

II. Justification of the study2) Objectives of the Study3) Literature Review

4) Research Methodology and Analytical tools

I. Sampling and Sampling Design

II. Analytical Tools

-Statistical tools

III. Data Collection

IV. Hypothesis Testing

V. Limitations of the Study

5) Results and Discussions/ Findings

6) Bibliography7) AnnexureINTRODUCTION

BANKING SECTOR18- The Reserve Bank of India (RBI), as the central bank of the country, closely monitors developments in the whole financial sector. - The banking sector is dominated by Scheduled Commercial Banks (SCBs). As at end-March 2002, there were 296 Commercial banks operating in India. This included 27 Public Sector Banks (PSBs), 31 Private, 42 Foreign and 196 Regional Rural Banks. Also, there were 67 scheduled co-operative banks consisting of 51 scheduled urban co-operative banks and 16 scheduled state co-operative banks. - Scheduled commercial banks touched, on the deposit front, a growth of 14% as against 18% registered in the previous year. And on advances, the growth was 14.5%against 17.3 % of the earlier year. - State Bank of India is still the largest bank in India with the market share of 20%. Icici and its two subsidiaries merged with Icici Bank, leading creating the second largest bank in India with a balance sheet size of Rs1040bn. - Higher provisioning norms, tighter asset classification norms, dispensing with the concept of past due for recognition of NPAs, lowering of ceiling on exposure to a single borrower and group exposure etc., are among the important measures in order to improve the banking Sector. - A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to strengthen the ability of banks to absorb losses and the ratio has subsequently been raised from 8% to 9%. It is proposed to hike the CAR to 12% by 2004 based on the Basle Committee recommendations. - Retail Banking is the new mantra in the banking sector. The home loans alone account for nearly two-third of the total retail portfolio of the bank. According to one estimate, the retail segment is expected to grow at 30-40% in the coming years. - Net banking, phone banking, mobile banking, ATMs and bill payments are the new buzz words that banks are using to lure customers. - With a view to provide an institutional mechanism for sharing of information on borrowers/ potential borrowers by banks and Financial Institutions, the Credit Information Bureau (India) Ltd. (Cibil) was set up in August 2000. The Bureau provides a framework for collecting, processing and sharing credit information on borrowers of credit institutions. SBI and Hdfc are the promoters of the Cibil. - The RBI is now planning to transfer of its stakes in the SBI, NHB and National Bank for Agricultural and Rural Development to the private players. Also, the Government has sought to lower its holding in PSBs to a minimum of 33 per cent of total capital by allowing them to raise capital from the market. - Banks are free to acquire shares, convertible debentures of corporates and units of equity-oriented mutual funds, subject to a ceiling of 5% of the total outstanding advances (including Commercial Paper) as on March 31 of the previous year. - The finance ministry spelt out structure of the government-sponsored ARC called the Asset Reconstruction Company (India) Limited (Arcil), this pilot project of the ministry would pave way for smoother functioning of the credit market in the country. The Government will hold 49% stake and private players will hold the rest 51% - the majority being held by Icici Bank (24.5%).

Meaning4 of Consumer Behaviour

Customer behaviour is the study of how individuals make decisions to spend their available resources (Time, Money and Efforts) on consumption related items. It includes the study what they buy, whey they buy it, when they buy it, where they buy it, how often they buy it and how often they use it.3 Consumer behaviour is the process where by individuals decide what, when, where, how and from whom to purchase goods and services. Buying behaviour may be viewed as an orderly process here by individual interacts with his environment for the purpose of making market decision on products and services.6 Consumer behaviour is a study of how individuals make decision to spend their available resources (time, money and effort) or consumption related aspects (What they buy? When they buy? How they buy? ).2STEPS IN DECISION MAKING PROCESS1

CONSUMER BUYING BEHAVIOR23Buying Behavior is the decision processes and acts of people involved in buying and using products.

Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the firms success.

The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

Factors That Effect the Consumer Buying Decision Process151. Personal Factors2. Psychological Factors3. Social FactorCONSUMER BEHAVIOUR AND MARKETING STRATEGY7The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how- The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

The behaviour of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

CONSUMER DECISION MAKING20The most important environment in which firms operate is their customer environment because the basic belief of marketing oriented company that the customer is the centre around which the business revolves. Therefore, marketing people need to understand the processes that their customers go through when making decision.CONSUMER BEHAVIOUR AND PRODUCT POSITIONING21Product positioning is placing the product, service, company, or shop in the mind of consumer or target group. Through positioning marketers seek the right fit between a product and desired customer benefits. The right positioning means understanding the consumer perception process in general and perception of companys product in particular. For example, Samsung brand is perceived as premium brand by few customers and value-driven brand by others in the market, but marketer must find out what makes their target market to perceive differently and position it accordingly. MARKETING RESEARCH IN CONSUMER BEHAVIOUR16Studying consumer behaviour enables marketing researchers to predict how consumers will react to promotional messages and to understand why they make the purchase decision they do. Marketers realized that if they know more about the consumer decision making criteria, they can design marketing strategies and promotional messages that will influence consumers more effectively. The importance of consumer behaviour made marketers to think of a separate branch in marketing research - Consumer research, to deal exclusively for consumer related issues. The current focus of consumer research is on study of underlying needs and motives in taking purchase decisions, consumer learning process and attitude formation process.

CONSUMER BEHAVIOUR AND SEGMENTATION17Segmentation basically involves dividing consumers into groups such that members of a group (1) are as similar as possible to members of that same group but (2) differ as much as possible from members other segments. This enables us then to "treat" each segment differentlye.g., by:

Providing different products (e.g., some consumers like cola taste, while others prefer lime)

Offering different prices (some consumers will take the cheapest product available, while others will pay for desired features)

Distributing the products where they are likely to be bought by the targeted segment.

MARKETING STRATEGIES IN CONSUMER BEHAVIOUR8Understanding the consumer behaviour is the basic for marketing strategy formulation. Consumers reaction to this strategy determines the organization success or failure. In this competitive environment Organisations can survive only by offering more customer value - difference between all the benefits derived from a total product and all the costs of acquiring those benefits than competitors. Providing superior customer value requires the organization to do a better job of anticipating and reacting to the customer needs than the competitor. Marketing strategy is basically the answer to the question: How will company provide superior customer value to its target market? The answer to this question requires formulation of marketing - mix product, price, place and promotion - strategies. The right combination of these elements meets customer expectation and provides customer value. For example, marketer of a bike must know the

customers performance expectations, desired service, Price willing to pay, information he seeks and after-sales service to provide superior customer value.CONSUMER BEHAVIOUR AND GOVERNMENTAL DECISION MAKING18To major areas where consumer behaviour study helps government is in policy making on various services, and in designing consumer protection legislation. The knowledge of peoples attitudes, beliefs, perceptions and habits provides adequate understanding of consumers.CONSUMER BEHAVIOUR AND NON-PROFIT AND SOCIETAL MARKETING19A sound knowledge of consumer behaviour can help the organisations that sell ideas and concepts of social relevance. Institutions that promote family planning, AIDS free society, governmental agencies, religion orders and universities also appeal to the public for their support in order to satisfy some want or need in society. The knowledge about potential contributors, what motivate their generosity, how these motives can be effectively appealed is useful for the organizations involved in these activities.

CONSUMER DEMAND SHIFTING TOWARDS LIFESTYLE PRODUCT28The economy is on an all-time high and consumerism the order of the day; the rs 70,000-crore domestic fmcg industry has had a particularly satisfying year in 2007. A notable change in the last couple of years has been the shift of the consumers demand from entry-level to mid and premium products, which means that flat screen tvs have gained preference over conventional crts. Frost-free refrigerators and fully automatic washing machines are growing much faster than their mass-end cousins and split acs are gaining precedence over cheaper window acs.

SOME SUCCESS STORIES33Companies like Nokia, Reebok, Coke, PepsiCo and major automobile giants like Toyota, Suzuki, Ford, Chevrolet, Mercedes etc.. has made a market for themselves in India. How did they establish their own individual market in a country like India which is prone to diverse cultures? Lets take the example of Ford. Before establishing their base in India, they engaged in a lot of researches. Their researches were made on the Indian peoples social life, personal tastes and preferences, way of life, how they identify an effective product and what makes them get attracted towards a product. The social and economic conditions were analyzed.COMPANY PROFILE20HDFC BANK IN INDIA

HDFC Bank was amongst the first to receive an 'in-principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector from Housing Development Finance Corporation Limited (HDFC), in 1994 during the period of liberalization of the banking sector in India. HDFC India was incorporated in August 1994 in the name of 'HDFC Bank Limited'. HDFC India commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC India deals in varieties of products like home loan, standard life insurance, mutual fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like Calcutta, Chennai, Delhi, Bangalore, Hyderabad, Ahmedabad apart from HDFC Mumbai.

Network : More than 468 branches over 212 cities across the countryATMs : The ATMs of HDFC India can be accessed by all domestic and international Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

Authorised capital : Rs. 450 crorePaid-up capital : Rs. 282 croreEquity : Holds 24.2%Listing : HDFC India has been listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB".

HDFC PRODUCT RANGE24

HDFC Bank India provides the following range of products:

Savings Account

HDFC Bank Preferred

Sweep-In Account

Super Saver Account

HDFC Bank Plus

Demat Account

HDFC Mutual Fund

HDFC Standard Life Insurance HDFC INDIA INNOVATIVE SERVICES HDFC Phone Banking

HDFC ATM

HDFC Inter-city/Inter-branch Banking

HDFC Net Banking

HDFC International Debit Card

HDFC Mobile Banking

HDFC Bill Pay

HDFC BANK LOANS HDFC Personal Loan

HDFC New Car Loan and Used Car Loan

HDFC Loan Against Shares

HDFC Two Wheeler & Consumer Loan

HDFC Home Loan

ICICI Bank21ICICI Bank is India's second-largest bank. The Bank has a network of about 573 branches and extension counters and over 2,000 ATMs. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.

In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In 2001, ICICI bank acquired Bank of Madura Limited.

ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa.

Today, ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.

PERSONAL LOANS27Whenever a person considers taking a loan the first question that comes to mind is about the type of loan that he/she can get. The personal loan can be used for any purpose, such as renovating your house, marriage expenses, medical expenses, holidays, purchasing consumer durables, higher education etc.

No clarification is needed while applying for the personal loan. Neither do you require a guarantor or security. You can obtain a personal loan primarily on the basis of your income.

The factors that decide how good an interest rate you can get for your personal loan include your income, your employer's profile, and your repayment track record for other existing loans.

Many people, these days, take personal loans to repay their credit card dues, which carry a higher interest rates than personal loan.

PERSONAL LOAN FEATURES: Loans for salaried & self-employed individuals

Special loans for doctors, chartered accountants, engineers, architects, company secretaries, and ICWAI graduates

Loans are available from Rs. 50000 to Rs. 25 lakh for any purpose depending on your requirement

Flexible repayment options, ranging from 12 to 60 months

Hassle-free loans - No security/guarantor/collateral required

Repay with easy EMIs

Balance transfer facility to retire any higher cost debt

Loans available against repayment track record of any existing auto, personal or home loan

Loans available against proof of life insurance policy premium receipts

Simple procedure, minimal documentation, & quick approval

PERSONAL LOANS - PROS & CONS29A personal loan is often described as unsecured loans because it allows you to borrow money without having to provide security against it. You can use the personal loans for the purchase of your house or a car. The personal loans are better for a longer time period.

Following are some of the advantages of the personal loans-

- While making an evaluation of the cost of the loan you need to consider the TAR (Total Amount Repayable) which means that the total amount that you owe towards the bank or a lender which also includes the rate of interest on the loan and the payments need to be made on a monthly basis. A suitable deal is where you get a lower TAR.

- The maximum amount that you can borrow ranges up to 25,000 and the time period for the refund is up to ten years. The advantage with the personal loan is that when you take a maximum amount as a loan then you have to pay a lower rate of interest.

- It is totally different from the terms and conditions for the mortgage. The unsecured personal loans are not protected for your property so if you are not able to refund the loan then you can be rest assured that your house is safe.

- The interest rates for the personal loans are also fixed. This makes it easy for you to make a planning for the payments that has to be made. The refunding amount also remains stagnant all the way through the time period of the loan.

- With a dynamic market scenario of loans the rate of interest has seen so many ups and downs. Now to get a loan it has become simpler than ever before. The financial companies offer you loans through their telephone service. They have toll-free numbers and they guide and provide you the best deals and offers.

Following are some of the disadvantages of the personal loans:

- Various financial companies and clever lenders introduce certain plans like- make a purchase and pay it later, offer free gift items, etc. These will only raise your price of the loan. So take a wiser decision and go for the basic loan with favorable terms and conditions. Always make a choice for those loans which have a low rate of interest and where the terms of the refund are moderate.

- Dont make a hasty decision in choosing a personal loan. It is not right to take a loan from just another bank. Make a survey and try to find out various offers and plans that various other banks and financial companies have to offer. Now with the internet things has become very simpler. You can visit various financial companies, what are the offers and plans these companies are offering. Accordingly you can take a decision whichever plan suits you.

- The PPI (Payment Protection Insurance) provides you the refund on a monthly basis if you are not able to work, you have met with an accident, in case you have suffered a heavy loss in your business, you are not employed anywhere, and make a payment for your loan in case of your death. You should be aware of this type of insurance as it is a costly affair and it adds an amount ranging from 1,000 to 5,000.

- According to a survey majority of the personal loans are paid off before the completion of their tenure. You need to look out for those lenders who take heavy amount for the settling of your loans before the tenure.

- You have to handle the annual percentage rates very carefully as it entirely depends on your financial credibility. You probably might not be eligible as to be entitled for it. You need to have a good credit history otherwise you wont be able to qualify for the lenders potential customer list.

Here are few guidelines before taking any concrete decision regarding the personal loans:35- Analyze all the offers and schemes before applying for the loan. There are various lenders who are not real and their motive is just to earn profits.

- To be entitled for a personal loan the procedure followed is rigorous although there is less documentation involved in it.

- Go through the contract thoroughly and reassess the closure price and for any hidden cost (If any). It is an important step which will only benefit you.

- If you are planning for a personal loan then most of the time it is cheaper than getting a credit card.

- Excluding the consumer durable loans the rate of interest for the personal loans are high.

UNSECURED PERSONAL LOANS - PROS AND CONS28

INCLUDEPICTURE "F:\\PROJECTS MBA\\project bank\\inder personal loans chart\\Unsecured Personal Loans - Pros and Cons - Choose your best_files\\clr.gif" \* MERGEFORMATINET As you make progress in your life your requirements and needs increase and to fulfill these needs you need some personal loans. Majority of the people prefer unsecured loans because it allows them to borrow money without having to provide security against it, such as your home or a car. There are various loan types for the personal loans like- loans for the people with bad credit, education loans, medical loans, home loans, and marriage loans etc.

Unsecured loans fulfill the need to borrow a small amount of cash. The main advantage for the unsecured loan is that you dont have to keep any valuable item as security with the lender like your house or jewelry. These types of loans are preferred by those people who are either students or those who dont posses their own house. And there are those kinds of people who dont want to put their house in some kind of risk.

Following are some features of the Unsecured Personal loans:

- A survey has shown significantly rise in the people opting for unsecured personal loans. And the reason of the popularity of the unsecured personal loans are- that it does not require any security, the loan process is very quick, minimal paperwork.

- For the unsecured personal loans there is a fixed amount of 25,000. Usually the amount is lower for the unsecured personal loans and you dont have to give any of your valuable items as security to the lenders. - The borrower has to pay a higher rate of interest for the unsecured personal loans ranging from seven to thirty percent which is relatively higher.

- You need to make a refund of an unsecured personal loan within a time period of six to ten years. Secured loan has a bigger time period as compared to the unsecured loan.

- Unsecured personal loans are better for those people who are in a need of instant financial assistance as these loans have a minimal paper work. The approval process is also very quick and there is no appraisal of the collateral item. - As there is an absence of the appraisal of the collateral. The unsecured personal loans are best suited to those people who dont own their property, probably the tenants.

It is quite evident from the name that you dont have to deposit any collateral against the loan with the lender. The lender gets the assurance of the refunding of the loan when you deposit the collateral against the loan. As discussed earlier in unsecured personal loans there are no collateral needed. The lenders in order to minimize the risk factor charge heavy rate of interest from you, the time period of the refund of the loan is kept for a shorter period, the amount of the loan is also small, and the terms and the guidelines are kept very stringent. There are people who are not of the view of putting their dream house on risk just in case they are not able to refund the loan. The unsecured personal loans are best for those people who dont have their own house, people living on rent, students who are away from their native places. The unsecured personal loans should be preferred in those conditions where you dont have anything to give to the lender as security. The unsecured personal loans are most costly than the secured personal loans. The lender judges the refunding capacity from your past financial background and the information about your earnings projected by you just in case you have not deposited any collateral. Usually it is your financial background and your current earnings that act as a deciding factor of your rate of interest. The lenders also provides the unsecured personal loans for those who are financially dependant on others those have a age limit above sixty years and those who are very poor and are not able to fulfill their basic necessities.

DOCUMENTS FOR PERSONAL LOAN IN INDIA26Documents Requirements For Salaried Individuals, Self employed (Professionals),Self Employed (Individuals),Self Employed (Pvt Cos and Partnership Firms) Personal Loan.

SALARIED INDIVIDUALSProof of applicant's identity (one of the following):- Applicant's Passport

Applicant's Defense identity card

Applicant's Driving license Applicant's Government identity card

Applicant's Photo PAN card

Applicant's Voter's identity card

Applicant's Photo ration card

Applicant's Proof of residence (any one of the following)

Applicant's Passport

Applicant's Telephone (land/mobile) bill

Applicant's Driving license Applicant's Voter's identity card

Applicant's Ration card

Applicant's Electricity bill

Applicant's Society outgoing bill

Applicant's Life Insurance Premium receipt

Applicant's Proof of age (any one of the following) Applicant's Passport

Applicant's Driving license Applicant's Birth certificate

Applicant's LIC Policy or Premium receipt clearly indicating the applicant's age



Applicant's School leaving certificate

Financial documents

Bank Statements (latest 3 months bank statement / 6 months bank passbook) Latest salary slip or current dated salary certificate with latest Form 16

Self employed (Professionals)Proof of applicant's identity (one of the following):- Applicant's Passport






Applicant's Proof of residence (any one of the following) Applicant's Passport













Financial documents Bank Statements (latest 6 months bank statement /passbook)

Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA

Qualification proof of the highest professional degree

Self Employed (Individuals)

Proof of applicant's identity (one of the following):-







Applicant's Proof of residence (any one of the following)














Financial documents Bank Statements(latest 6 months bank statement /passbook)

Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA

Proof of continuation (Trade license /Establishment /Sales Tax certificate)

Other Mandatory Documents (Sole Prop. Decal. Or Cert. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)

Self Employed (Pvt Cos and Partnership Firms)

Proof of applicant's identity (one of the following):- Applicant's Passport






Applicant's Proof of residence (any one of the following) Applicant's Passport













Financial documents Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA

Proof of continuation (Trade license /Establishment /Sales Tax certificate)

Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)PERSONAL LOAN COMPARISON22Reviews

Institution name:

Product name:Personal LoanExpress Loans

Loan Details

Loan purpose:Personal Loan Personal Loan

Amount requested:Rs.100,000Rs.100,000

Eligible loan amount:Rs.240,000 Rs. 0

Max Amount Allowed (Salary):12 x salary multiple

Max Amount Allowed (Self Employed):1 x income multiple

Loan term:36 months 36 months

EMI:Rs.3,516Rs.3,871

Total interest:Rs.26,565Rs.39,355

Total to repay:

Rs.126,565Rs.139,355

Interest Rates

Interest rate:23.00%16.00%

Eligibility

Minimum income (NMI) - Salaried:Rs.8,000 Rs.7,000

Minimum income (NAI) - Self Employed:Rs.60,000 Rs.60,000

Maximum age:65 years 55 years

Eligibility notes:Employees of Public Ltd. cos. , Private Ltd. cos. MNCs Or Government.

Self employed professionals like Doctors, MBA's, Architects, CA's, Engineers, Traders & Manufacturers. Salaried Individuals including employees of Public and Private limited companies / Partnership Firms / Proprietorship Firms, Government Sector employees including public sector undertakings and central, state and local bodies

Self Employed (Individuals) - Filing I.T. Returns - include self-employed - Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services

General Loan Features

Minimum loan amount:

Rs.20,000

Rs.50,000

Maximum loan amount:Rs.1,500,000Rs.1,000,000

Maximum term:60 months48 months

Interest frequency:Monthly Monthly

Extra repayments:Charges for late payment (loans) 2% per month

Repayment:Repayable in 12-60 monthly instalments as per the requirement of the customer.

Prepayment of the loan is possible after 180 days of availing the loan. The loan will be paid through post-dated cheques or through Standing Instructions to debit your HDFC Bank account with the EMI amount.

Security:

Insurance:

Exclusive features:Personal loan is one product exclusively designed to meet all your financial needs and fulfil your desires. You can now secure a fast and easy personal loan for an amount up to Rs. 15 lakhs Borrow from Rs. 10,000/- to 75,000/- for any purpose depending on your needs.

Flexible repayment options, ranging from 12 to 36 months.

Repay with easy EMIs.

One of the lowest interest rates in the market

Documentation:Latest Salary slip,

Last 3 months Bank Statement,Last 2 years ITR with computation of income / Certified Financials,

Proof of Turnover (Latest Sales / Service tax returns),

Proof of Qualification Highest Degree (for Professionals / Govt employees ,

Proof of Office (any one) Lease deed / Utility bill / Municipal Tax receipt / title deed,Proof of Residence (any one) Ration Card / Utility bill / LIC Policy Receipt,

Proof of Identity (any one)Passport / Driving Licence / Voters ID / PAN card / Photo Credit Card / Employee ID card. For Salaried :

Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence/ Pan card/ Credit Card with photo/ Company ID card of MNC/ Public Ltd./ PSU/ Govt. company/ Ration Card (If Photo is given)/ Photo attested by Bankers)

Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade licence /Est./Sales Tax certificate)

Bank Statements (latest 3 months bank statement /passbook).

Age of bank A/C should be 6 months Latest 3 months salary slip or current dated salary certificate or 3 Salary credits in the bank A/C

For Self employed:

Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence/ Pan card/ Cr. Card with photo/ Ration card (If Photo is given) /Photo attested by Bankers).


Bank Statements (latest 3 months bank statement /passbook). Age of Bank A/C should be 6 months.

Last 2 years ITR along with computation of income/P&L/Balance Sheet.

Fees

Processing fees:2% 2% of the loan amount

Early repayment fee:5.6% on principal outstanding 4% pre-payment is allowed only after 6 months

ICICI Bank - Personal Loan22

INCLUDEPICTURE "g:\\inder 25-03\\icici p loan new_files\\2t4.jpg" \* MERGEFORMATINET General

Institution name:

Product Name:Personal Loan

Purpose:Resident

Loan Details

Loan Type:Personal Loan

Amount Requested:Rs.100,000

Max Amount Allowed (Salary):12 x salary multiple

Max Amount Allowed (Self Employed):1 x income multiple

Loan Term:36 months

EMI:Rs.3,871

Total Interest:Rs.39,355

Total to Repay:Rs.139,355

Interest Rates

Interest Rate:23.00%

Eligibility

Minimum Income (NMI) - Salaried:Rs.8,000

Minimum Income (NAI) Self Employed:Rs.60,000

Maximum Age:65 years

Eligibility Notes:Employees of Public Ltd. cos. , Private Ltd. cos. MNCs Or Government.

Self employed professionals like Doctors, MBA's, Architects, CA's, Engineers, Traders & Manufacturers.

Other Loan Features

Loan Amount:Rs.20,000 to Rs.1,500,000

Duration:0 to 60 months

Extra Repayments:Charges for late payment (loans) 2% per month

Repayment:Repayable in 12-60 monthly instalments as per the requirement of the customer.

Prepayment of the loan is possible after 180 days of availing the loan.

Exclusive Features:Personal loan is one product exclusively designed to meet all your financial needs and fulfil your desires. You can now secure a fast and easy personal loan for an amount up to Rs. 15 lakhs

Documentation:Latest Salary slip,

Last 3 months Bank Statement,Last 2 years ITR with computation of income / Certified Financials,

Proof of Turnover (Latest Sales / Service tax returns),

Proof of Qualification Highest Degree (for Professionals / Govt employees ,

.

Fees

Processing Fees:2%

Prepayment Charges:5.6% on principal outstanding

HDFC Bank - Express Loans22

General

Institution name:

Product Name:Express Loans

Purpose:Resident

Loan Details

Loan Type:Personal Loan

Amount Requested:Rs.100,000

Loan Term:36 months

EMI:Rs.3,516

Total Interest:Rs.26,565

Total to Repay:Rs.126,565

Interest Rates

Interest Rate:16.00%

Eligibility

Minimum Income (NMI) - Salaried:Rs.7,000

Minimum Income (NAI) Self Employed:Rs.60,000

Maximum Age:55 years

Eligibility Notes:Salaried Individuals including employees of Public and Private limited companies / Partnership Firms / Proprietorship Firms, Government Sector employees including public sector undertakings and central, state and local bodies

Self Employed (Individuals) - Filing I.T. Returns - include self-employed - Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services

Other Loan Features

Loan Amount:Rs.50,000 to Rs.1,000,000

Duration:0 to 48 months

Repayment:The loan will be paid through post-dated cheques or through Standing Instructions to debit your HDFC Bank account with the EMI amount.

Exclusive Features:Borrow from Rs. 10,000/- to 75,000/- for any purpose depending on your needs.

Flexible repayment options, ranging from 12 to 36 months.

Repay with easy EMIs.

One of the lowest interest rates in the market

Documentation:For Salaried :

Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence/ Pan card/ Credit Card with photo/ Company ID card of MNC/ Public Ltd./ PSU/ Govt. company/ Ration Card (If Photo is given)/ Photo attested by Bankers)


Bank Statements (latest 3 months bank statement /passbook).

Age of bank A/C should be 6 months Latest 3 months salary slip or current dated salary certificate or 3 Salary credits in the bank A/C

For Self employed:

Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence/ Pan card/ Cr. Card with photo/ Ration card (If Photo is given) /Photo attested by Bankers).


Bank Statements (latest 3 months bank statement /passbook). Age of Bank A/C should be 6 months.

Last 2 years ITR along with computation of income/P&L/Balance Sheet.

Fees

Processing Fees:2% of the loan amount

Prepayment Charges:4% pre-payment is allowed only after 6 months

LOAN PAYMENT SCHEDULE31ICICI BANKPayment numberBeginning Loan BalanceTotalPaymentPrincipalInterestEnding Loan BalanceCummulative Interest

1

Rs.100000.00Rs.3870.97Rs.1954.31Rs.1916.67Rs.98045.69Rs.1916.67

2

Rs.98045.69Rs.3870.97Rs.1991.76Rs.1879.21Rs.96053.93Rs.3795.88

3

Rs.96053.93Rs.3870.97Rs.2029.94Rs.1841.03Rs.94023.99Rs.5636.91

4

Rs.94023.99Rs.3870.97Rs.2068.85Rs.1802.13Rs.91955.15Rs.7439.04

5

Rs.91955.15Rs.3870.97Rs.2108.50Rs.1762.47Rs.89846.65Rs.9201.51

6

Rs.89846.65Rs.3870.97Rs.2148.91Rs.1722.06Rs.87697.74Rs.10923.57

7

Rs.87697.74Rs.3870.97Rs.2190.10Rs.1680.87Rs.85507.64Rs.12604.44

8

Rs.85507.64Rs.3870.97Rs.2232.08Rs.1638.90Rs.83275.56Rs.14243.34

9

Rs.83275.56Rs.3870.97Rs.2274.86Rs.1596.11Rs.81000.71Rs.15839.46

10

Rs.81000.71Rs.3870.97Rs.2318.46Rs.1552.51Rs.78682.25Rs.17391.97

11

Rs.78682.25Rs.3870.97Rs.2362.90Rs.1508.08Rs.76319.35Rs.18900.05

12

Rs.76319.35Rs.3870.97Rs.2408.18Rs.1462.79Rs.73911.17Rs.20362.83

13

Rs.73911.17Rs.3870.97Rs.2454.34Rs.1416.63Rs.71456.83Rs.21779.46

14

Rs.71456.83Rs.3870.97Rs.2501.38Rs.1369.59Rs.68955.44Rs.23149.05

15

Rs.68955.44Rs.3870.97Rs.2549.33Rs.1321.65Rs.66406.12Rs.24470.70

16

Rs.66406.12Rs.3870.97Rs.2598.19Rs.1272.78Rs.63807.93Rs.25743.48

17

Rs.63807.93Rs.3870.97Rs.2647.99Rs.1222.99Rs.61159.94Rs.26966.47

18

Rs.61159.94Rs.3870.97Rs.2698.74Rs.1172.23Rs.58461.20Rs.28138.70

19

Rs.58461.20Rs.3870.97Rs.2750.47Rs.1120.51Rs.55710.74Rs.29259.21

20

Rs.55710.74Rs.3870.97Rs.2803.18Rs.1067.79Rs.52907.55Rs.30327.00

21

Rs.52907.55Rs.3870.97Rs.2856.91Rs.1014.06Rs.50050.64Rs.31341.06

22

Rs.50050.64Rs.3870.97Rs.2911.67Rs.959.30Rs.47138.97Rs.32300.36

23

Rs.47138.97Rs.3870.97Rs.2967.48Rs.903.50Rs.44171.50Rs.33203.86

24

Rs.44171.50Rs.3870.97Rs.3024.35Rs.846.62Rs.41147.15Rs.34050.48

25

Rs.41147.15Rs.3870.97Rs.3082.32Rs.788.65Rs.38064.83Rs.34839.13

26

Rs.38064.83Rs.3870.97Rs.3141.40Rs.729.58Rs.34923.43Rs.35568.71

27

Rs.34923.43Rs.3870.97Rs.3201.61Rs.669.37Rs.31721.83Rs.36238.07

28

Rs.31721.83Rs.3870.97Rs.3262.97Rs.608.00Rs.28458.85Rs.36846.07

29

Rs.28458.85Rs.3870.97Rs.3325.51Rs.545.46Rs.25133.34Rs.37391.54

30

Rs.25133.34Rs.3870.97Rs.3389.25Rs.481.72Rs.21744.09Rs.37873.26

31

Rs.21744.09Rs.3870.97Rs.3454.21Rs.416.76Rs.18289.88Rs.38290.02

32

Rs.18289.88Rs.3870.97Rs.3520.42Rs.350.56Rs.14769.47Rs.38640.58

33

Rs.14769.47Rs.3870.97Rs.3587.89Rs.283.08Rs.11181.58Rs.38923.66

34

Rs.11181.58Rs.3870.97Rs.3656.66Rs.214.31Rs.7524.92Rs.39137.97

35

Rs.7524.92Rs.3870.97Rs.3726.74Rs.144.23Rs.3798.17Rs.39282.20

36

Rs.3798.17Rs.3870.97Rs.3798.17Rs.72.80Rs.0.00Rs.39355.00

LOAN PAYMENT SCHEDULELender:HDFC Bank

Product name:Express Loans

Interest rate:16.00%

Payment numberBeginning Loan BalanceTotal PaymentPrincipalInterestEnding Loan BalanceCummulative Interest

1

Rs.100000.00Rs.3515.70Rs.2182.37Rs.1333.33Rs.97817.63Rs.1333.33

2

Rs.97817.63Rs.3515.70Rs.2211.47Rs.1304.24Rs.95606.16Rs.2637.57

3

Rs.95606.16Rs.3515.70Rs.2240.95Rs.1274.75Rs.93365.21Rs.3912.32

4

Rs.93365.21Rs.3515.70Rs.2270.83Rs.1244.87Rs.91094.37Rs.5157.19

5

Rs.91094.37Rs.3515.70Rs.2301.11Rs.1214.59Rs.88793.26Rs.6371.78

6

Rs.88793.26Rs.3515.70Rs.2331.79Rs.1183.91Rs.86461.47Rs.7555.69

7

Rs.86461.47Rs.3515.70Rs.2362.88Rs.1152.82Rs.84098.58Rs.8708.51

8

Rs.84098.58Rs.3515.70Rs.2394.39Rs.1121.31Rs.81704.20Rs.9829.82

9

Rs.81704.20Rs.3515.70Rs.2426.31Rs.1089.39Rs.79277.88Rs.10919.21

10

Rs.79277.88Rs.3515.70Rs.2458.66Rs.1057.04Rs.76819.22Rs.11976.25

11

Rs.76819.22Rs.3515.70Rs.2491.45Rs.1024.26Rs.74327.77Rs.13000.51

12

Rs.74327.77Rs.3515.70Rs.2524.67Rs.991.04Rs.71803.10Rs.13991.54

13

Rs.71803.10Rs.3515.70Rs.2558.33Rs.957.37Rs.69244.78Rs.14948.92

14

Rs.69244.78Rs.3515.70Rs.2592.44Rs.923.26Rs.66652.34Rs.15872.18

15

Rs.66652.34Rs.3515.70Rs.2627.01Rs.888.70Rs.64025.33Rs.16760.88

16

Rs.64025.33Rs.3515.70Rs.2662.03Rs.853.67Rs.61363.30Rs.17614.55

17

Rs.61363.30Rs.3515.70Rs.2697.53Rs.818.18Rs.58665.77Rs.18432.73

18

Rs.58665.77Rs.3515.70Rs.2733.49Rs.782.21Rs.55932.28Rs.19214.94

19

Rs.55932.28Rs.3515.70Rs.2769.94Rs.745.76Rs.53162.34Rs.19960.70

20

Rs.53162.34Rs.3515.70Rs.2806.87Rs.708.83Rs.50355.47Rs.20669.53

21

Rs.50355.47Rs.3515.70Rs.2844.30Rs.671.41Rs.47511.17Rs.21340.94

22

Rs.47511.17Rs.3515.70Rs.2882.22Rs.633.48Rs.44628.95Rs.21974.42

23

Rs.44628.95Rs.3515.70Rs.2920.65Rs.595.05Rs.41708.30Rs.22569.47

24

Rs.41708.30Rs.3515.70Rs.2959.59Rs.556.11Rs.38748.71Rs.23125.58

25

Rs.38748.71Rs.3515.70Rs.2999.05Rs.516.65Rs.35749.65Rs.23642.23

26

Rs.35749.65Rs.3515.70Rs.3039.04Rs.476.66Rs.32710.61Rs.24118.90

27

Rs.32710.61Rs.3515.70Rs.3079.56Rs.436.14Rs.29631.05Rs.24555.04

28

Rs.29631.05Rs.3515.70Rs.3120.62Rs.395.08Rs.26510.43Rs.24950.12

29

Rs.26510.43Rs.3515.70Rs.3162.23Rs.353.47Rs.23348.20Rs.25303.59

30

Rs.23348.20Rs.3515.70Rs.3204.39Rs.311.31Rs.20143.80Rs.25614.90

31

Rs.20143.80Rs.3515.70Rs.3247.12Rs.268.58Rs.16896.68Rs.25883.48

32

Rs.16896.68Rs.3515.70Rs.3290.41Rs.225.29Rs.13606.27Rs.26108.77

33

Rs.13606.27Rs.3515.70Rs.3334.29Rs.181.42Rs.10271.98Rs.26290.19

34

Rs.10271.98Rs.3515.70Rs.3378.74Rs.136.96Rs.6893.24Rs.26427.15

35

Rs.6893.24Rs.3515.70Rs.3423.79Rs.91.91Rs.3469.44Rs.26519.06

36

Rs.3469.44Rs.3515.70Rs.3469.44Rs.46.26Rs.0.00Rs.26565.32

HOW TO APPLY FOR A PERSONAL LOAN35Is it easy to get a personal loan? Well, yes and no.

On the one hand, there is less paperwork, since the bank does not have to verify any asset as in the case of home loans. On the other hand, there are stringent income criteria to qualify for personal loans. But once you make the grade it takes only about three days for you to get a personal loan -a lot less time than a home or car loan.

So, here goes a step-by-step break-up of the personal loan application process:

Step 1: Enquiry with a financier:

The first step is to get in touch with a lender. How do you know whom you should approach? You need to get in touch with as many lenders as possible and get them to make loan offers to you. Then negotiate with them to get the best interest rate. Check if there are any special offers.

After you have got all the banks to make their offers to you, select your lender based on the information you have in front of you.

Step 2: Documents Collection

After you finalise your lender, the lender's direct selling agent will visit you and collect documents supporting proof of income, residence proof, and identity. You may be required to produce copies of IT returns, salary slips, bank statements, ration card, passport, driving licence, and other relevant documents. These requirements vary from lender to lender.

Step 3: Field Investigation Agency Representative Visit

After submitting the documents, a field investigator will visit your home to double check the facts provided in the documents, such as your place of residence, tenure at work place and so on. It is essential that you are present during this visit; otherwise the investigator could report that the facts you provided do not actually add up, thus forcing the lender to reject your loan application.

Step 4: Loan approvedOnce the lender is satisfied with the veracity of your documents, the loan is approved. The lender then disburses the amount through cheques or demand drafts (DD).

Charges applicable before and after the personal loan

Very often we fail to read the fine print in a loan document. The real cost of your personal loan is visible only when you factor in numerous other charges levied. If you intend to make comparisons with other types of loans, it is necessary to take into account these charges to arrive at the real cost. For example, the processing fee or prepayment fee in the case of a personal loan will be different from that of a loan against property.

Here is a list of all charges that are levied either before the loan is disbursed or through the course of the loan or when you terminate the loan:

Description of Charges:

Processing fee

Prepayment fee

Charges for late payment (loans)

Cheque bounce charges

Duplicate statements charges

Documentation charges

Service tax

Processing fee:

Processing fee is the amount charged by banks to cover the cost of processing your loan application. Processing fees vary from one bank to another. Some banks ask you to pay the processing fee upfront even before the loan is sanctioned. This is often charged when you submit your loan application along with the supporting documents.

The processing fee is generally a percentage of the loan amount and is between 1-2% for personal loans. Some banks levy a flat charge of Rs 1000 or Rs 2000 upfront, and then deduct the balance processing fee (if any) from the loan amount before disbursal.

The processing fee is non-refundable. Some banks say the processing fee will be refunded if the loan is not sanctioned. It is recommended that you take this in writing from the bank as technically, processing fee is non-refundable.

Pre-payment fee:

The pre-payment fee is the penalty paid by the borrower for foreclosing the loan before the actual tenure. Pre-payment fees are levied as a percentage of the outstanding principal of the loan amount. The prepayment fee varies from bank to bank. It varies from 2% to 5% of the outstanding loan amount, if the repayment amount exceeds 25 per cent of the outstanding loan amount.

Charges for late payment:

When the monthly installment (EMI) towards repayment of a loan is delayed the bank collects the installment along with late payment charges. The late payment charge is also known as the delayed payment charges or the overdue payment charges. Late payment charges are fixed at the time of signing the loan contract.

This is chargeable if you make the payment after the due date. Late payment fees range from 2% to 3% per cent of the EMI.

Cheque Bounce Charges:

Cheque bounces mean that a cheque has been presented for clearance, but the amount written on the check exceeds the available balance in the account. It is often colloquially referred to as a bounced cheque. Businesses frequently use the term dishonoured cheque. If you have given post-dated cheques to the bank to debit the EMI from your account, ensure that you have sufficient funds in your account every month. If a single cheque bounces, the bank charges anything from Rs 250 to Rs 500 as penalties.

Duplicate Statements Charges:

When the loan is sanctioned, the lender gives you a statement detailing the repayment schedule. If you lose it, you can request the bank to issue a duplicate statement. The statement indicates your balance loan amount and the remaining EMIs. Banks charge anywhere between Rs 100 to Rs 500 for issuing duplicate statements.

Documentation charges:

Banks levy documentation charges towards the verification of the various documents you provide towards the loan application. Many banks employ third-party vendors to do the document verification. The expense on this account is usually passed on t the customer, which range from Rs 500 or Rs 1000.

Service tax:

Service tax is a tax levied on service providers who have annual revenue of more than 8 lakh. Banks loans too fall under the purview of service tax. Service tax is charged at the rate of 12.36% on the interest and any other charges like processing fee levied by the lender.

JUSTIFICATION OF THE STUDY How do Buyers form their preference? Their preference is influenced by their past buying experience, friends and associates advice, and the marketers and competitors information and promises.

Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation

As the definition makes it clear, satisfaction is a function of perceived performance and expectations. If the performance falls short of the expectations of the customer, the customer is dissatisfied. If the performance exceeds the expectations, the customer is highly satisfied or delighted.

Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch, when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional affinity with the brain, not just a rational preference. The result is high customer loyalty.

In this highly competitive world customers plays a very important role. Thus, if a company wants to survive then it should look forward to the determinants of customer satisfaction. Though it is a very subjective issue that differs from individual to individual yet, identifying some basic parameters of customer satisfaction is important.

Satisfaction is a persons feeling of pleasure and disappointment resulting from comparing a products perceived performance in relation to his or her expectations. It is only the customer delight that marketer aims for.

Though customer preference is a very qualitative term and it is very difficult to measure. In this study an effort has been made to measure the customer preference level.OBJECTIVES OF THE STUDY

In this era of cut throat competition, no company can even survive in the market place without knowing its and its products strengths and weaknesses. It has to fortify itself against threats from the environment and exploit its strengths or increase profits. And in order to do so, the company has to conduct regular surveys to know the customers opinions, needs, and preferences. Hence to know these opinions objectives are stated as: To know the impact of various external factors on consumer preference :-

Interest Brand name

Tenure Eligibility Other Facilities To find out the market share of Personal loan. To study the effect of Interest of Personal loans.

To find the most effective media for advertisement. To analyse different strategies used by different competitors for sale of

Their financial products in the market. Determine the influence of reference group in the purchase decision of Personal loan.

LITERATURE REVIEW

Once the problem is formulated, the researcher has to undertake an extensive literature survey related to problem. The literature survey undertaken here includes books and different websites from the internet.

Schiffman. G. Leon and kanuk lazare Leslie 1 - Study of the customer behaviour is the study of how individuals make decisions to spend their available resources (Time, Money and Efforts) on consumption related items. It includes the study what they buy, whey they buy it, when they buy it, where they buy it, how often they buy it and how often they use it. The primary purpose for the study consumer behaviour as apart of marketing curriculum is to understand how and how customers make their purchase decisions. There insights enable marketers to design more effective marketing strategies. Gupta.C .B and Dr. Nair. N.Rajan 2 - A business is based on understanding the customer and providing the kind of products that the customer wants.

Mamoria C.B. and Mamoria Satish 3 - Consumer behaviour is the process where by individuals decide what, when, where, how and from whom to purchase goods and services. Buying behaviour may be viewed as an orderly process here by individual interacts with his environment for the purpose of making market decision on products and services.

Nair Suja. R.4 - The success of the firm will be determined by how effective it has been in meeting the diverse customer needs and wants by treating each customer as unique and offering products and services to suit his/her needs. Bennett Peter.D. And Kassarjian Haroldh 5 - A great deal of research activity in marketing is design to shed light on the customer decision process.

Kothari C.R.6 For data analysis different statistical techniques are being used such as scaling techniques, correlation, hypothesis testing.

Belch George E and Belch Michael A7 ,Advertising & promotion, Sxth Edition ,Tata McGraw Hill ,New Delhi Pp-166-169 Batra Rajeev, Myen John G , Aaker David A8 Advertising management, Fifth Edition, Prentice-Hall India ,New Delhi. Pp-174-179

Mishra M N ,Sales promotion and Advertising management9, Second Edition , Himalya Publishing House , New Delhi pp:1-2 Baack Clow10, Integrated advertising, promotion & Marketing communication, Third Edition, Prentice hall, New Delhi P p:85

11. Czinkota kotabe,11 Marketing management, Second Edition, Thomson- south Western, Pp-156

Kotler Philip & Keller Kevin lane12, Marketing management, 12th Edition PEARSON(Prentice Hall) Pp-297

Loudon ,David L, and Bitta, Abert J. Della13 , Consumer Behavior and concepts and applications, Fourth Edition, Tata Mc Graw Hill, New Delhi, PP 5-8,9,19 .

Leon G. Schiffman and Lesli Lazar kanauk14, Consumer Behavior, Eight Edition, Prentice Hall of India, New Delhi, PP 8,9,11,19,20.

Kardes, Frank R15., Consumer Behavior and Managerial decision making, Second Edition, PP 23,47.

WEBSITEES

www.cnxz.cn16 , loan definition of Personal loan has been taken from here. http://www.thehindubusinessline.com/iw/2004/11/28/stories/2004100421500.htm http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG098.htm17 www.icicibank.com/aboutus18 profile of ICICI bank is taken from here www.hdfcbank.com/za/products19 profile of ICICI bank is taken from here www.apnaloan.com/aboutus 20, comparison of loan of both bank. www.infomaworld.com/smpp21 chart of interest www.compareindia.com22, procedure of personal loan www.prospect-magazine.com 23features of personal loans www.compareloan.com24 chart of loan of both bank www.honeybeeindia.com25 www.loanbazaar.com26 pros and cons of both loan www.loanmantri.com27 product range of both loans in India and its procedureJOURNALS

Engel, James28; www.loanindia.com personal Blackwell, Roger(1982) , Consumer Behavior,(4/e),The Dryden Press, Chicago

Davis Harry29(1976),Decision making within the household, The Journal of consumer research ,volume 2, No.4, pp 241-260

Olshavsky, Richard. And Granbois, Donald (1979)30,Consumer Decision Making- Fact or Fiction? The joural of Consumer Research, Volume 6, No. 2, pp 93-100 Kelly Robert(1962)31 ,The search component of the Cdp- A theoretic Examination, in Robert L King , Marketing and the new Science of Planning , American Marketing Association, Chicago p. 273

Kassarjian Harold(1978)32,Advance in consumer Research, Association for Consumer Research, Volume 5,pp 12-14

Howard , john (1989)33, Consumer Behavior in marketing strategy,Prentice Hall, pp 361-364

Engel, James; Blackwell, Roger. And Miniard, Paul(1990)34 Consumer Behavior,(6/e),The Dryden Press, Chicago

MAGZINES Cover story, March 200635 vol xiv P no. 25

Business Today36 Trends, April 23, 2006 P no. 17 Business Research 37 June 2005, Page 31 Mind Branch, Global Industry Analysts38, July 2006, R263-2473, P no. 23 B to B, 3/13/2006, Vol. 91 Issue 3, p46-46 Banking &services Dec 2007 Vol. 15 No. 3 Pno.-10

Chandra Suresh Indian Journal Of Marketing39 xxxv edition January 2006, P no. 35

Banusmathy Dr. Indian Journal of Marketing 40 xxxv March 2006, Page 31

RESEARCH METHODOLOGY4

Research methodology has many dimensions, it includes not only the research methods but also consists the logic behind the methods used in the context of the study and explains why only a particular method of technique had been used so that search lend themselves to proper evaluation. Thus in a way it is a written game plan for concluding research. Research methodology has many dimensions. It includes not only the research methods but also considers the logic behind the methods used in the context of the study and complains why only a particular method of technique has been used. It also helps to understand the assumption underlying various techniques and the criteria by which they can decide that certain technique will be applicable to certain problems and other will not. Therefore in order to solve a research problem, it is necessary to design a research methodology for the problem as the some may differ from problem to problem.

This focuses on the various techniques, methods and assumptions used in this study. It sheds light on the research problem, objectives of the study, and also its limitations. The later part of this explains the manner, in which the data is collected, classified, tabulated, analyzed and interrupted so as to each to conclusive results. SAMPLING It becomes impossible to contact each and every individual of the population due to limitations of essential resources like time and money. Therefore, the study is preferably allowed down to a representation sample to make the study more manageable.

Keeping in the view the objectives and resource limitation of the study, 100 respondents are considered.

SAMPLING PLAN:-

The following factors will be taken into consideration within the scope of sampling plan:

I Sampling Unit: It defines the target population that will be sampled i.e. it answers who is to be surveyed. In this study, the sampling unit is consumers who have availed the Personal Loans.

II Sampling Size:

It indicates the numbers of people to be surveyed. Though large samples give more reliable results than small samples but due to constraints of time and money, the sample size was restricted to 100 respondents. III Sampling Techniques:

This refers to the procedure by which the respondents should be chosen. In my study I used Probability sampling of the following types:-

Simple random sample

Stratified random sampling

Cluster (area) sample

In this case, Stratified random sampling was done since the respondents will classified into well defined classes or strata that were distinct from each other.

RESEARCH DESIGN:-

To analysis the consumer behaviors of the residents of Yamuna Nagar City Sample Survey Methods has been employed though other methods are also important. This method is given prime significance in modern research because of its extensive use to study the relationship of different factors, attitudes and practices of society and to explore the problems that cannot be treated by experimental methods.

To collect data, a number of techniques are employed under the sample survey method i.e. questionnaire. The increasing use of questionnaire is probably due to increased emphasis by social scientists on quantitative measurement to uniformly accumulated data.

i) Area of study:-

The area of the study is Yamuna Nagar City in order to collect the Primary data from the respondents.Study area

: Yamuna Nagar City.

Target Segment :Personal Loan Customersii) Formation of Questionnaire

Quite often the questionnaire is considered as the heart of a survey operation. Hence it should be carefully constructed. It is an investment that is widely used to collect various types of data and consists of long lists of questions designed to collect any information. It has personally been found that people are more frank in giving replies to a questionnaire than to an interview schedule. Though being less expensive, it has certain limitations like incomplete entries and erroneous responses. But the educational qualification of the respondents is an additional factor which renders this technique the most relied upon.

Formation of a good questionnaire involves intensive thinking and deliberation of the problem with predetermined objective and aims properly placed in the questionnaires.

The questionnaire framed for the purpose of the study consists of a limited number of questions placed in logical order. So, that the objective of the question is clear to the respondents. All the questions are centered on the problem keeping in the mind.

iii) Analysis of Data:

Data, after collection, has to be analyzed in accordance will the outline laid for the time of developing the research plan. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. Data presented in raw state appear unrecognized and complex. Statistical processors are used this complex data into some significant understandable form. Data was analyzed with help of XLSTAT software. The tables from XLSTAT are attached as annexure. ANALYTICAL TOOLSCORRELATION5According to Croxton and Cowden, when the relationship is of a quantitative nature, the appropriate statistical tool for discovering and measuring the relationship and expressing it in a brief formula is known as correlation

TYPES OF CORRELATION6Correlation is classified in several different ways. Three of the most important ways are:-

Positive and Negative Correlation: When two variable X and Y move in same direction is Positive Correlation and when both variables move in opposite direction that is Negative Correlation.

Simple, Partial and Multiple Correlations: When we study the relationship between two variables only that is Simple Correlation. When three or more variables are taken but relationship between any two of the variable is studied, assuming other variables as constant that is Partial Correlation and when we study the relationship among three or more variables that is Multiple Correlation.

Linear and Curvi-Linear Correlation: when the ratio of change of two variables X and Y remains constant throughout, then they are said to be Linear Correlated and when the ratio of change between the two variables is not constant but changing, then correlation is said to be Curvi-Linear.

DEGREE OF CORRELATION:-

Sr. No.Degree of correlationPositiveNegative

1Perfect correlation+1-1

2High Degree of correlationBetween +.75 to+1Between -.75 to-1

3Moderate Degree of CorrelationBetween +.25 to+.75Between -.25 to-.75

4Low Degree of CorrelationBetween 0 to+.25Between 0 to-.25

5Absence of Correlation00

COEFFICIENTOF CORRELATION IS GIVEN BY:

x.y

R =

x2.y2 CORRELATION NO:-1PRINCIPALLOAN ENDING BALANCE

1954.3198045.69

1991.7696053.93

2029.9494023.99

2068.8591955.15

2108.589846.65

Interpretation:- At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of absence of correlation.In other words, the correlation is significant.

CORRELATION NO:-2

PRINCIPALLOAN ENDING BALANCE

2182.3797817.63

2211.4795606.16

2240.1593365.21

2270.8391094.37

2301.1188793.26

Interpretation:- At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of absence of correlation.In other words, the correlation is significant.

MULTI DIMENSIONAL SCALING:7Multidimensional scaling (MDS) is a method for analyzing a (similarity or dissimilarity) proximity matrix based on a set of observations. The purpose of MDS is to model the proximity of observations in order to represent them as accurately as possible in a limited number of dimensions (usually 2). There are different MDS algorithms: XLSTAT uses the SMACOF (Scaling by MAjorizing a COnvex Function) algorithm that minimizes the "normalized stress" function. Furthermore, there are several MDS models (or representation functions), i.e. several ways to transform the dissimilarities into disparities. The disparities are the distances that describe the optimal representation for the observations. The difference between the disparities and the distances measured on the representation resulting from the MDS is called the stress: the lower the stress, the better the representation of the observations.

When the representation function simply respects the relative order of the observations, one speaks about ordinal MDS or nonmetric MDS. When the dissimilarities are transformed into disparities using a specific parametric function, one speaks about metric MDS. The following models are available in the current version of XLSTAT.

Metric MDS

Absolute MDS: each dissimilarity dij must exactly match the distance between points i and j in the representation space.

Ratio MDS: the ratio of all distance pairs in the representation space must correspond to the ratio of the corresponding dissimilarities.

Interval MDS: the ratio of all differences between distances in the representation space must correspond to the ratio of the differences of the corresponding dissimilarities.

In the present study XLSTAT is used to calculate the results of the MDS The result shows that in the case of absolute model, the disparities are equal than the dissimilarities.

MULTI DIMENSION TABLE NO:-1

RANKING OF VARIOUS LOANS ON THE BASIS OF REQUIREMENT

LOANSF1F2F3F4F5

PERSONAL LOAN1317121939

HOME LOAN232731145

LAP1915192621

LAS1618122826

AUTO LOAN292326139

Interpretation

The value of the kruskal stress is 0.003, which is very small as compared to 1. This implies that the data collected very closely follows the normal distribution and the skewness is very minute and that to, the data is minutely skewed in the positive direction. Thus, the data is highly accurate.


RANKING OF VARIOUS LOANS ON THE BASIS OF INTEREST RATES

LOANSF1F2F3F4F5

PERSONAL LOANS1115162137

HOME LOANS272534113

LAP1715182723

LAS1420102927

AUTO LOAN3125221210

Interpretation



HOW DID YOU COME TO KNOW ABOUT THE PERSONAL LOANS?MEDIASF1F2F3F4F5

TV ADS392715217

MAGAZINES86372920

HOARDINGS2714171032

INTERNET211273327

REFERENCE GROUP541241614

Interpretation


Data Collection9 The data can be collected from primary and secondary sources. The basic premises of my study are primary data but at the same time it is supplemented with the secondary data. Convenience sample that was representative of the target market was chosen, the respondents were contacted personally and the research instrument use of collecting data was the questionnaire.

I) Primary data collection: Primary data is the data which is collected through observation or direct communication with the respondent in one form or another. These are several methods for primary data collection like Observation Method, Interview Method, through schedules, through questionnaires and so on.II) Secondary data collection methods:Secondary data is collected through

Magazines

Journals

Newspapers

Websites

HYPOTHESIS TESTING8Chi-square test is used when the set of observed frequencies obtained after experimentation have to be supported by hypothesis or theory. The test is known as X2- test of goodness of fit and is used to test if the deviation between observation (experiment) and theory may be attributed to chance (fluctuations of sampling).2 also enables us to explain whether or not two attributes are associated or related to each other.

Chi-Square Test

yearObserved(O)Expected(E)(O-E)(O-E)*(O-E)(O-E)*(O-E)/E

112-110.5

22.53-0.50.250.083333333

33.45-1.62.560.512

46.1460.140.01960.003266667

58.59-0.50.250.027777778

Sum1.126377778

tabulated value is=9.45

Observed value is1.126

INTERPRETATION:

Chi-Square Test shows that tabulated value is more than the observed value so the null hypothesis is accepted that is the sale of the company is not much fluctuating from the expected sales of Personal loans. In this test we have formulated null hypothesis that the company has even trend in its sale during last few years . And alternate hypothesis is that the sales of the company are very odd in nature. That means in some years the targets are achieved but for some its not. The calculated value is less than the tabulated value. That is 1.125 < 9.485. so we accept the null hypothesis and reject the alternate hypothesis. It shows that the companys sale is not even... Limitations

TIME AND MONEY CONSTRAINTS: - As due to universe is very large and the time and money is very limited, it is very difficult to cover all the respondents.

DIFFICULTY IN GETTING INFORMATION:- Some of the respondents are not candid enough to reveal all the required information. They might give inflated or wrong information.

DIVERSITY IN NATURE:- Because of the diversity in the nature of the various respondents, the findings of the survey can not be generalized.

PERSONAL BIASNESS :- Also some personal biasness might have crept in to the information provided by respondents.

SECONDARY DATA :- In this study the snag of finding the secondary data is also a challenge because there is lack of Magazines, Journals & Internet Information on Personal Loans. The collection of getting secondary data from Banks was also a challenging task.

PRIMARY DATA:-The collection of primary data is also very tedious task to perform because Respondents are not ready to give their response through Questionnaire & Bank Employees are also not interested to provide required Information.

RESULTS AND DISCUSSIONS1Q:- What is your occupation?

Interpretation:- The above diagram shows that in the sample of 100 people there are 29% Salaried Individual, 21% Self Employed Professional, 31% Self Employed Individual & 19% are Self Employed Pvt. Company.

2Q:- Do you have any Account in the following Bank?

Interpretation:- The above diagram shows that 36% Respondents are having Account in ICICI Bank, 20% having Account in HDFC Bank, 7% are having Account in both & 37% are having no one Account in these Bank.

3Q:- What is your Annual Income?

Interpretation: - The above diagram shows that 13% Respondents are having annual Income between 100000-150000, 33% are having between 150000-200000, 17% are having between 200000-300000, 28% are having between 300000-500000 & 9% are having above from 500000 Rs.

4Q:- Which loan do you prefer to avail?

Interpretation:- Above diagram shows that 61% Respondents have availed Unsecured Loans & 39% have availed Secured loans.

5Q:- Rate the following on the basis of Brand name in the Banking Services?

Interpretation:- The above diagram shows that 57% Respondents are in Favor of ICICI Bank & 43% are in the Favor of HDFC Bank in case of Banking Services.

6Q:- Have you ever availed facilities of Personal Loans?

Interpretation:- The above Diagram shows that 27% Respondents have availed the facilities of Personal Loan from ICICI Bank, 21% have availed from HDFC Bank, 6% have taken from Both & 45% have not availed the facilities of Personal Loans.

7Q:- Why do you take Personal Loans?

Interpretation:- The above diagram shows that 51% Respondents take Personal Loans for Personal Affairs, 12% take it for Education, 7% for Travel, 26% for Business & 4% for Other purposes.

8Q:- Why do you Prefer Personal Loans over other Loans?

Interpretation:- The above diagram shows 32% Respondent prefer Personal Loans over other because of Flexibility, 39% because of Unsecured Nature, 16% because of High Tenure, 4% because of Interest Rates & 9% because of Other Reasons.

9Q:- Who Influenced you the most while going for Personal Loans?

Interpretation:- Above diagram shows that 37% Respondents are Influenced by Self while going for Personal Loans, 9% from Family Members, 27% from Friends, 6% from Relatives and 21% are Influenced from Banks Executives.

10Q:-Do you Agree with the late payment charges for Personal Loans?

Interpretation:- The above diagram shows that 3% Respondents are Highly Agree with the Late Payment Charges for Personal Loans, 7% are Agree, 20% are Neutral, 39% are Dis-Agree & 31% are Highly Dis-Agree.

11Q:- Are you Satisfied with the NOC procedure in Personal Loans?

Interpretation:- The above diagram shows that 23% Respondents are Highly Satisfied with the NOC Procedure in Personal Loans, 39% are Dis-Satisfied, 10% are Neutral, 17% are Dis-Satisfied & 11% are highly Dis-Satisfied.

12Q:- If other Banks offer Attractive schemes for Personal Loans will you go for that Bank?

Interpretation:- The above diagram shows that 33% Respondents are Sure to go for Other Banks in case if they offer Attractive Schemes for Personal Loans, 15% respond as Often, 14% are Neutral, 17% are Not Sure & 21% respond as Never.

13Q:- If anybody asks you about which Banks Personal Loans should She/He go for then what will be your Behavior towards your availed Brand?

Interpretation:- The above diagram shows that 39% Respondent respond that they will Highly Recommend their availed Brand name, 22% respond as Recommend 3% are Neutral, 7% respond as Not Recommend & 29% respond as Never Recommend.

FINDINGS PREFER TO AVAIL PERSONAL LOANS:- It is found during the study that preference of the people are increasing towards the Unsecured loans as compare to the Secured loans.

LOAN AMOUNT AVAILABILITY:- it is find during the study that Customers are not very Satisfied with the Loan Amount availability from Personal Loans because they require more amount for Personal use.

STRINGENT DOCUMENTATION:- it is find during the study that the Documentation procedure of Personal Loan is too much stringent as compare to the other Secured loans.

LOAN PROCESSING PROCEDURE:- it is find that Loa processing procedure in case Personal Loan is just like a Snail pace as compare to the other Loans available.

HIGH ELIGIBILITY CRITERIA:- in case of Personal Loan the criteria for availing the Personal Loan is very high so many of the Customers who want to avail the Personal Loan have to go for other alternatives.

LESS TENURE:- the Payback period or can say that the duration for which the Loan is provided by the Bank in case of Personal Loan is very much Low.

HIGH ADDITIONAL CHARGES:- it is find during the study that the customers are very much Dis-Satisfied with the Additional Charges charged by Banks for Personal Loan.

HUGE PREPAYMENT CHARGES:- it is come in to view that in case of Prepayment in Personal Loans a high amount is charged from customer which is not justified.

BIBLIOGRAPHY

Baack Clow, Integrated advertising, promotion & Marketing communication, Third Edition, Prentice hall, New Delhi P p:85

Czinkota kotabe, Marketing management, Second Edition, Thomson- south Western, Pp-156

Kotler Philip & Keller Kevin lane, Marketing management, 12th Edition PEARSON(Prentice Hall) Pp-297

Loudon ,David L, and Bitta, Abert J. Della , Consumer Behavior and concepts and applications, Fourth Edition, Tata Mc Graw Hill, New Delhi, PP 5-8,9,19 .

Leon G. Schiffman and Lesli Lazar kanauk, Consumer Behavior, Eight Edition, Prentice Hall of India, New Delhi, PP 8,9,11,19,20.

Kardes, Frank R., Consumer Behavior and Managerial decision making, Second Edition, PP 23,47.

Bennett Peter.D. And Kassarjian Haroldh 5 - A great deal of research activity in marketing is design to shed light on the customer decision process.

Kothari C.R.6 For data analysis different statistical techniques are being used such as scaling techniques, correlation, hypothesis testing.

Belch George E and Belch Michael A ,Advertising & promotion, Sxth Edition ,Tata McGraw Hill ,New Delhi Pp-166-169 Batra Rajeev, Myen John G , Aaker David A Advertising management, Fifth Edition, Prentice-Hall India ,New Delhi. Pp-174-179

Mishra M N ,Sales promotion and Advertising management, Second Edition , Himalya Publishing House , New Delhi pp:1-2WEBSITEES

www.cnxz.cn http://www.thehindubusinessline.com/iw/2004/11/28/stories/2004112800421500.htm http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG098.htm www.icicibank.com/aboutus www.hdfcbank.com/za/products www.apnaloan.com/aboutus www.infomaworld.com/smpp www.compareindia.com

www.prospect-magazine.com www.compareloan.com www.honeybeeindia.com www.loanbazaar.com www.loanmantri.comAnnexuresannexure 1: Principal Component analysis

XLSTAT 7.1 - Principal Component Analysis (PCA) - 4/2/2008 at 3:27:13 PM

Table: workbook = Book3.xls / sheet = Sheet1 / range = $G$10:$K$13 / 4 rows and 5 columns

Uniform weighting (default)

No missing values

Pearson correlation coefficient (normed PCA, variances with 1/n)

Without axes rotation

Number of factors associated with non trivial eigenvalues: 3

Bartlett's sphericity test:

Note: The sphericity test could not be computed for this dataset (the determinant of the correlation matrix is null)

Mean and standard deviation of the columns:

MeanStandard deviation

1321.7504.867

1720.7504.603

1222.0007.176

1920.2506.796

3915.2508.555

Correlation matrix:

1317121939

1310.6220.759-0.913-0.815

170.62210.833-0.877-0.894

120.7590.8331-0.923-0.985

19-0.913-0.877-0.92310.971

39-0.815-0.894-0.9850.9711

In bold, significant values (except diagonal) at the level of significance alpha=0.050 (two-tailed test)

Eigenvalues:

F1F2F3

Eigenvalue4.4490.3970.155

% variance88.9717.9393.090

Cumulative %88.97196.910100.000

Number of removed trivial eigenvalues: 2

Eigenvectors:

F1F2F3

13-0.4120.768-0.242

17-0.426-0.593-0.595

12-0.454-0.1570.692

190.471-0.1360.187

390.4700.122-0.271

Factor loadings:

F1F2F3

13-0.8700.484-0.095

17-0.898-0.374-0.234

12-0.957-0.0990.272

190.994-0.0860.073

390.9910.077-0.106

Squared cosines of the variables:

F1F2F3

130.7570.2340.009

170.8060.1400.055

120.9160.0100.074

190.9870.0070.005

390.9830.0060.011

Contributions of the variables (%):

F1F2F3

1317.00759.0495.862

1718.11135.15735.459

1220.5962.47247.876

1922.1941.8433.483

3922.0931.4797.320

Factor scores:

F1F2F3

Obs1-2.249-0.8260.150

Obs21.6690.3390.567

Obs32.502-0.337-0.450

Obs4-1.9210.823-0.267

Squared cosines of the observations:

F1F2F3

Obs10.8780.1180.004

Obs20.8640.0360.100

Obs30.9520.0170.031

Obs40.8310.1530.016

Contributions of the observations (%):

F1F2F3

Obs128.43342.9483.619

Obs215.6517.24252.106

Obs335.1727.13232.697

Obs420.74442.67811.578

Annexure2: Multi-Dimensional Scaling1XLSTAT 7.1 - Multidimensional Scaling (MDS) - 4/2/2008 at 3:01:19 PM

Dissimilarity matrix: workbook = Book3 / sheet = Sheet1 / range = $G$11:$J$14 / 4 rows and 4 columns

Uniform weighting (default)

Within the symmetric matrix, 0 cells out of 6 were ignored during the calculations because of missing values or null weights

Metric Multidimensional Scaling

Multidimensional Scaling model: absolute

Stress used for the results: Kruskal's stress-1

Dimension of the representation space: 5

Repetitions: 10

Seed of the pseudo-random numbers generator: 4137873680

Iterations: 50

Convergence: 0.0001

Space with 5 Dimensions:

Model: Dij= Pij

Observation coordinates:

ObservationDim1Dim2Dim3Dim4Dim5

233.018-3.7665.82412.4285.303

27-2.4046.071-3.6877.2058.983

31-1.4182.777-5.686-10.616-5.150

140.804-5.0823.549-9.017-9.136

Distances measured in the representation space:

23273114

23016.04528.90126.081

2716.045023.09027.902

3128.90123.090013.055

1426.08127.90213.0550

Ideal distances calculated using the model (disparities):

23273114

23016.00029.00026.000

2716.000023.00028.000

3129.00023.000013.000

1426.00028.00013.0000

In the ca