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STUDY OF PERSONAL LOAN AND ANALYSIS OF PEOPLE PERCEPTION ON HDFC

& SBI BANK

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GORTERIA JOURNAL ISSN: 0017-2294

STUDY OF PERSONAL LOAN AND ANALYSIS OF PEOPLE

PERCEPTION ON HDFC & SBI BANK
Kapil Kumar Tiwari1 & Dr. Rashmi Somani2
1
Ph D Research Scholar, Department of Management Studies, Medi-Caps University
Indore Madhya Pradesh - 452001
2
Associate Professor, Department of Management studies, Medi
Medi-Caps
Caps University Indore
Madhya Pradesh - 452001
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Abstract - This research work is descriptive institutions in India can be divided into the
and empirical work and the researcher used following categories:
primary and secondary data to complete
the research work. The total research work
was completed in five major chapters.
Meaning, Introduction, study of literature,
research method,, data analysis and results
and conclusions and results.. Study is focus
on latest current customer perception
towards personal loans.
Keywords: banking, personal credit,
economy.

I. INTRODUCTION Fig 1 Types of Bank

The Oxford Dictionary defines a bank as Personal loans can be taken with anything
“a money-lending
lending institution,” which pays for a for a wedding, to holiday, or at any y purchase of a
customer order. The development of any country life product or medical health emergency. The
depends largely on the banking system. The personal loan is an unsecured loan provided by
banking business has done miraculous roll for the banks and non-bank
bank financial institutions without
global economy. Banks create financial mediators taking any collateral security,, although some banks
by accumulating savings and converting them into demand on the guaranteed purpose that it is not
currencies. It is well-known
known that banking plays a valuable to the bank as long as it is not
calm, yet important role in our daily lives. Banking unpredictable.. Personal loans can go a long way in
services these days include the issuance of bank eliminating consumerr debt and can now easily get
and credit card issuance, essentials,ls, keys, ATM loans from banks and private equity depending on
services and online transfers nationwide / their qualifications such as income and business
worldwide. An easy-to-use
use way of earning money income.
from depositors and borrowing the same money
from borrowers improves the flow of money into A personal loan is a simple and easy
the use and investment of banking services. This in process to get your money in small amounts and in
turn allows
ows the economy to grow. If there is no a timely manner. The bank will need borrower
banking business, the money saved will remain documents related to proof of identity, proof of
gathering dust in our homes, entrepreneurs will not residence and proof of income / ITR R for the past 3
be in a position to raise and borrow money, and years to start the fair loan approval process. After
general people who have dream of to buy a new car reviewing the documents and verifying the loan
or new house will not be able to buy cars or houses. with Credit Information Bureau (India) Ltd.,
Ltd also
known as CIBIL, the bank can decide whether to
There are various types of banks operating approve or reject the loan. Main basis of approval
in our country to cater for the financial needs of is customer previous track,, current loan liability as
different types of people engaged in agriculture, well previous loan repayment. Bankers often check
trade, industry etc. In terms of jobs, banking

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their CIBIL score of 700 or more. The credit for for a personal loan these days. The personal loan
establishing a consumer loan is usually unsecured market is full of competitors such as HDFC Bank,
and depends on the consumer's loyalty and ability ICICI Bank, IndusInd Bank, Axis Bank, SBI
to loan repay. The personal loan process takes Personal Loan and all public and private banks.
approximately three days or more to repay the loan Bajaj Finance Limited plays a major role in
when the borrower is eligible for the loan. Personal NBFCs. Other NBFC are Fullerton India Credit
loan repayments are equal monthly installments Company Limited and Shriram City Union Finance
and the term of office varies from 1 to 5 years. It is Limited etc.
recommended that the borrower contact as many
banks as possible and offer him or her loan offers. Types of personal loans:
After that she can try to negotiate with them and The personal loan is divided into two types;
choose the most efficient option for customer. The Personal Loan for Salaries class, Personal Loan for
lender will have to consider the processing fee and Self Employed class and Personal loan cross sell (Pre-
the minimum payment when making the filing. Approved Loans).
Always remember to take out your debt as soon as
possible. Classified as unsecured loans, these loans An Overview of the Self-employed
are often more expensive compared to any other andEmployment Scenario in Madhya Pradesh:
loans, such as gold jewelry, high value commitment
insurance policies. Eligibility of Personal loans is 1. Salaried class Personal Loan:
provided by various banks and non-bank financial Some of the general important criteria are:
institutions (NBFCs) basis of pre define policy. • The applicant must have a healthy and stable income
There are a number of factors that affect your of a ratio of 1: 4, ex. if personal income is Rs. 20000
creditworthiness. Rs, EMI should not exceed Rs.5000 Rs.
The following are some of the factors that • The applicant must be between 21 and 60 years old.
a bank or NPFC should consider when deciding on • Some of the institutional finance institutions lend to
a credit rating. Financial Background This is the their outgoing client and have good records with
most important parameter that determines whether them.
we are eligible for a loan and also determines the
• Stability is also an important factor. According to the
amount of personal loan you are entitled to. This
lease phase, six months to one year of permanent
will help the bank to understand how to repay the
residence is sufficient..
loan properly. Each bank will have a lower interest
rate so that it can access individual loans. Credit
history this will help the bank to know our EMI • Original KYC verification must be required by banks,
payment record or credit card debt for any loan. If It is basis requirement all KYC documents such as
we pay your previous EMIs and credit card bills on proof of ID, proof of address, bank statement etc.
time, your chances of getting a higher loan amount. must satisfy the concern manager.
The company where we are working play vital role 2. Self-employed class Personal Loan: Some of the
to loan acceptance and loan. If our company is A general important criteria are:
category company like so bank will charge • The applicant must be not less than 21 years of age
minimum ROI and other charges but If company is and not more than 65 years of age at the end of the
belongs to B or C class company, it can be difficult loan.
for us to get a personal loan or it can be very • Bank transactions must be healthy.
expensive compared to someone working in A class • Proof of business to understand the stability of the
company. This means that if we work for a business.
subordinate company according to the bank, the • Institution Some financial institutions request a copy
mortgage rate of someone in a class B company of the latest income tax return, profit and loss and
will be very small. balance to understand the applicant's cash flow.
Job experience also very important to 3. Personal Loan (Cross Sell):
factor. If your Job is stable or you have high Some of the general important criteria are as
experience so bank will charge lower ROI follow:
comparatively unstable job or lower job experience.• Bajaj Finance Limited plays a major role in this
If there are any other debts we may have sector throughout India.
some debts from time to time and then our personal• Proof The customer only needs to provide KYC
loan eligibility may decrease as we have already documents such as proof of address, proof of ID
paying the previous loan EMI and any EMI with and photo.
cash in hand compared to the case where we do not
• Personal Loan (Cross Sell) come basis of existing
have it. Loan lenders in India are very easy to apply
relation with bank of NBFC.

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sources.
II. KEY OBJECTIVES • Collecting Tools to be used for data collection
the questionnaire will be used to measure all
The main purpose of this study is to understand the variables. Data will be collected in terms of 1-5
impact of marketing as awareness of technological LIGERT, measurement process and test type (Y / N).
development is low and people living in those areas • Tools used for data analysis
are very close to nature. This research work is a way Internal stability b. Honesty c. Facts analysis d.
to explore male- female, Married-Unmarried and Testing T. Frequency analysis f. Postponement g.
explain their focus, influence and their ad-related CFA (Modeling Equation Modeling) by AMOS
emotions. • Software used for statistical analysis
Data collected with the help of various statistics using
Low goals SPSS software is analyzed by the researcher. The
Design and develop a process for evaluating customer Social Science (SPSS) version 20.0 version of
credit systems from a customer perspective and side Windows 7 will be used for data analysis and
of the profession. hypothesis testing. The data collected will be
Identify the basics of customer bank lending schemes processed using Microsoft Excel 2010 with the help
from a customer perspective and from a professional of various types of puzzles, charts and charts for
perspective Windows 7.

Thinking IV. DATA ANALYSIS &

H01. Bank lending schemes from a customer INTERPRETATION
perspective and there is no significant and positive
relationship between the two sexes on the employee Data Analysis for Customer Questionnaire
side. Detail of Demographic Profile of Respondents
H02. There is no significant and positive relationship Gender-wise Frequency Distribution, Process to
between married and single people in bank loan obtain personal loans through banks, And Overall
schemes from a customer and employee perspective. Satisfaction for SBI & HDFC
H03. Overall Satisfaction for SBI & HDFC
T-Test between Perception of Demographic
Primary education Variables and Loan Schemes of Banks by
This study was natural research and translation. Data Customer
were collected by means of research and relationships
between statistical variables were assessed using Independent Samples Test between Perception Gender
mathematical tools. and Loan Schemes of the Banks by Customer
T-test was applied to find out difference between
III. SAMPLE DESIGN perception of male and female gender for Loan
Schemes of Banks.
• Demographic Census covers all banks located in H01. There is no relationship between male and
the Bhopal area of Madhya Pradesh female bank customer on Loan Schemes of Banks.
H02. Process to obtain personal loans through banks
• Model Framework All Customers and Bankers.
H03. Overall Satisfaction for SBI & HDFC
• ANOVA Model Technology it is possible, a
technology used that is deliberately designed and T-Test
ready to identify respondents to a study. Equivalent Table: One-Sample Statistics on Gender
feedback providers from all groups of people are
guaranteed to minimize sample error.
• The Elements Model The Elements Model is a One-Sample Statistics
learning feature for each respondent Std. Std. Error
• Sample Size 425 Question papers are still being N Mean Deviation Mean
distributed but 415 are returned with the correct
answer from the Bhopal respondents. The researcher Gender 296 1.7703 .42137 .02449
collected data after building positive relationships
with respondents. Total 294 are male and 296 female. Group statistics
• Secondary Data Researcher collects second data table explore the mean value of Gender is 1.7703,
from various research essays and journals, books, for std deviation is 0.42137 and for std error mean
journals, reports (government / company, newspaper, is 0.02449.
television) in print format and online from various

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ANOVA on Overall Satisfaction for SBI & HDFC

One-Sample Test
ANOVA
Test Value = 0
Sum of Mean
95%
Squares df Square F Sig.
Confidence
Interval of the Overall Between 3.164 2 1.582 12.508 .000
Sig. Mean
Difference Satisfaction Groups
(2- Differenc
for SBI Within 37.053 293 .126
t df tailed) e Lower Upper
Groups
Gender 72.28 295 .000 1.77027 1.7221 1.8185
0 Total 40.216 295
For gender Gender T value of 72.280, Mean Overall Between 5.622 2 2.811 31.676 .000
Difference 1.77027 Satisfaction Groups
Process to obtain personal loans through banks
for HDFC Within 26.000 293 .089
One-Sample Test
Groups
Test Value = 0
Total 31.622 295
95% As we can see from above table variation between
Confidence sample means / variation within the samples value for
Interval of HDFC is 31.676 and F value for SBI 12.508.

Sig. the
(2- Mean Difference V. CONCLUSION
t df tailed) Difference Lower Upper
T-test was applied to find out difference
Process to 0.384 295 .045 1.20270 1.1566 1.2488 between perception of male and female gender for
obtain Loan Value of F isTotal 294 are male and 296
personal females. Group statistics table explore the mean value
of Gender is 1.7703, for std deviation is 0.42137 and
loans for std error mean is 0. 02449.For gender Gender T
through value of 72.280, Mean Difference 1.77027 As we can
banks see from above table variation between sample means
/ variation within the samples value for HDFC is
31.676 and F value for SBI 12.508. Second T-test was
Independent forms of lending procedures for banks to applied to find out difference between Process to
determine whether the equity is considered or not is obtain personal loans through banks as we can see
beyond the scope of testing. The T value is .384 (<.5) from table variation between sample means / variation
critical .045, e.g. The value of T is not significant, so within the samples value for HDFC is 31.676 and F
equal variance is considered. The T value is 0.384. value for SBI 12.508.
Level of education: Report Similarly, the main aim of this paper is to
Report study personal loan and customer satisfaction towards
service of HDFC& SBI.The data collected into two
Education Level major categories in this analysis we make the
Mean N Std. Deviation Googlequestionnaires’.As sigma is zero, we accept
the hypothesis. As after analysis of small sample size
3.3378 296 1.40967 we found that costumer more satisfied in HDFC bank
Education Level Case Processing Summary
Case Processing Summary
Cases
Included Excluded Total
N Percent N Percent N Percent
Education 296 100.0% 0 0.0% 296 100.0%
Level

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