PROJECT REPORT

ON Personal loans and financing in Fullerton India Credit ltd.

SHOP NO. 11, 2ND FLOOR, MAK PLAZA, 75A RAJPUR ROAD ROAD, DEHRADUN

UNDER THE GUIDANCE OF MRS. HIMANI BHANDARI (Alternate Channel Officer)

SUBMITTED TO : MR. MANISH DWIVEDI Faculty Deptt. Of Management Studies GEU, Dehradun

SUBMITTED BY: SHILPA NEGI MBA 3RD SEM

ACKNOWLEDGEMENT

I feel great pleasure to acknowledge our indebtness to my guide Mr. Manish Dwivedi . It is a pleasure to express my thanks and gratitude to all the persons in FULLERTON CREDIT INDIA LTD Dehradun where I got the chance, support and encouragement that enabled us to conduct my study within the stipulated period of time. I sincerely express my gratitude for their indigenous and able guidance , constant encouragement and for the discussion they had with the tenure of my work. I once again take the opportunity to convey my heartiest thanks to all those who were connected with the project directly and have provide me with a wonderful experience and learning opportunity.

SHILPA NEGI MBA III SEM (FINANCE) GRAPHIC ERA UNIVERSITY

TABLE OF CONTENT

1.Acknowledgement 2.Research Methodology 3.Intoduction 4.Proposition and values 5.Review and litrature 6.Analysis of data 7.Sugession 8.References

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The Research Methodology includes the various methods and techniques for conducting a Research. This project comes under the head of Marketing Research. The Marketing Research is the systematic design, collection, analysis and reporting of data and finding relevant solution to a specific marketing situation or problem. Sampling Plan Sampling can be defined as the section of some part of an aggregate or totality on the basis of which judgment or an inference about aggregate or totality is made. The sampling plan helps in decision making in the following areas: Sample size Sample size refers to the total numbers of items about which the information is desired. The sample size of the study is 100. Data Collection - Information has been collected from both Primary and Secondary Data. Primary Data Primary data are those, which are collected for the first time, and thus happen to be original in character. Primary Data has been collected in this study by conducting survey through Questionnaire. Secondary Data Secondary Data are those which have already been collected by someone else and which already had been passed through the statistical process. Secondary data has been collected in this study through Magazines, Web sites, Newspaper and Journals.

INTRODUCTION

Brand Origin Fort Fullerton, named after Governor Robert Fullerton, was created to protect Singapore. Singapore was then known as Temasek - the 'sea town'. Our parent company, Temasek Holdings, incorporated in 1974, is one of Asia's biggest investment firms, with a diversified US $134 Billion portfolio, spanning various industries. Financial services is one of the key focus area of Temasek. Carrying forward this legacy, Fullerton india is deeply committed to provide quality financial services to the growing Indian masses.

Fullerton India Credit Company Limited(FICCL) is a Non Banking Finance Company (NBFC) with an A category license, issued by the Reserve Bank ofIndia. It is a fully owned subsidiary of Fullerton Financial Holdings Pvt ltd.Singapore. The Company was established in 1994. In December 2005 theManagement of this Company changed, with an investor making an investment inthe equity capital of this Company under the Foreign Direct Investment Policy.99.99% of the share capital of FICCL is held by Angelica Investment Pte. Ltd.,Singapore. Then they began their operations with new management in India inJanuary 2006. The new management team is headed by a professional CEO and Managing Director, supported by a team of professionals, with expertise in area of Consumer Finance, Middle market lending and SME businesses. These professionals have worked in various Banks and Financial institutions, and havegood commercial experience. The company operates on a wide range of financial products and services for customers related to the retail markets and commercial mass markets. The company provides financial support to its clients through basically two policies namely Fullerton India Parivaar and

Fullerton India Vyapar. Fullerton India Parivaar provides financial security to salaried individuals where as Fullerton India Vyapaar offers financial support to people involved in small scale businesses or firms of their own. The company follows a customer centric, community based business model, and is committed to provide quality financial services to the growing Indian masses. The Company believes in a branch centric community led relationship based approach in meeting customer needs rather than using the services of a third party or a vendor such as Direct Selling Agents. Under the organizational structure, the Company has in each of its branches, a team of Relationship Managers and Officers who meet customers to understand their business or profession and credit requirements. The Company being in the financial sector provides Loans and financial services to customers such as Individuals, Professionals, Partnership firms, Sole proprietorship and Small and Medium companies. To service its customers, the Company has two major divisions Vyapaar and Parivaar.

Products Offered By the Company

Fullerton India Parivaar has introduced a new concept in the Indian market. The company have branches, which cater only to the specific needs of Salaried Individuals. Its Parivaar branches provide customized products and solutions, especially designed keeping in mind the unique circumstances and requirements of this segment. The Parivaar Loans cover a wise range of products, which include: Unsecured Personal Loans Secured Loans Home Finance Home Equity Loans

Unsecured Personal Loans

An unsecured loan is a loan that is not backed by collateral, it is also known as asignature loan or personal loan. Unsecured loans are based solely upon the borrower's credit rating. An unsecured loan is considered much cheaper and carries less risk to the borrower. Types of Unsecured loans There are three types of unsecured loans. First is a personal unsecured loan, which means a loan that, a person individually responsible for the repayment. Second is an unsecured business loan which leaves the business responsible for the repayment. Third is an unsecured business loan with a personal guarantee. In this type of unsecured loan the borrower is the business, but guarantor will be the payer if the business defaults to pay the loan.

Secured Loans
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral. In any event if the borrower defaults to repay, then the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower. There are two purposes for a loan secured by debt. In the first purpose, by extending the loan through securing the debt, the creditor is relieved of most of the financial risks involved because it allows the creditor to take the property in the event that the debt is not properly repaid. In exchange, this permits the second purpose where the debtors may receive loans on more favorable terms than that available for unsecured debt, or to be extended credit under circumstances when credit under terms of unsecured debt would not be extended at all. The creditor may offer a loan with attractive interest rates and repayment periods for the secured debt.

Home Equity Loan

A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity. Types of Home Equity Loan Closed end home equity loan: The borrower receives a lump sum at the time of the closing and cannot borrow further. The maximum amount of money that can be borrowed is determined by variables including credit history, income, and the appraised value of the collateral, among others. It is common to be able to borrow up to 100% of the appraised value of the home, less any liens, although there are lenders that will go above 100% when doing over-equity loans. However, state law governs in this area; for example, Texas (which was, for many years, the only state to not allow home equity loans) only allows borrowing up to 80% of equity. Closedend home equity loans generally have fixed rates and can be amortized for periods usually up to 15 years. Some home equity loans offer reduced amortization whereby at the end of the term, a balloon payment is due. These larger lump-sum payments can be avoided by paying above the minimum payment or refinancingthe loan. Open end home equity loan: This is a revolving credit loan, also referred to as a home equity line of credit, where the borrower can choose when and how often to borrow against the equity in the property, with the lender setting an initial limit to the credit line based on criteria similar to those used for closed-end loans. Like the closed-end loan, it may be possible to borrow up to 100% of the value of a home, less any liens. These lines of credit are available up to 30 years, usually at a variable interest rate. The minimum monthly payment can be as low as only the interest that is due. Typically, the interest rate is based on the Prime rate plus a margin. Fullerton India Vyapaar strives to improve the business and lives of the small business community. Their business is focused only on small establishments with a turnover of less than Rs.25 Mn p.a.

Relationship Approach of the Company

The Company believes in a branch centric community led Relationship based approach in meeting customer needs rather than using the services of a third party or a vendor such as Direct Selling Agents. Under the organizational structure, the Company has in each of its branches, a team of Relationship Managers and Officers who meet customers to understand their business or profession and their credit requirements. Both the Vyapaar and Parivaar divisions of the Company leverage the relationship approach in establishing a credit relationship between the Company and the borrower. Loans are granted on the basis of completed applications, completing the Know-Your-Customer (KYC) norms, discussion with the customers about the terms of their loan, rate of interest, repayment arrangement, etc. The branch only services customers in a limited area around the physical location of the branch. The Companys general policy is to be reasonable, transparent and fair with its customers.The Company follows established procedures, understands customer requirements and is reasonable in all its dealings with customers. The design of the application forms and the relationship based processes, are to make sure that the Company is transparent in its dealings and transactions. It is with this in mind that the Company has set up the following guidelines as a Fair Practices Code in dealing with its customers

Fair Practices Code and Guidelines in Company

The following are the guidelines as a fair practices code in dealing with its customer. 1. The current application forms capture full details of the customer i.e. age, profession, business, office & residential address, income details and other requirements. The application forms indicate the criteria for minimum and maximum finance available for personal loans, automobile loans. The application forms specify the documentation requirements in addition to initial scrutiny of documents submitted. The Company may call for additional documents for verification purposes. The application forms are numbered and one section of the form is given back to the Customer as an acknowledgement. The Company keeps a record of acceptance of terms and conditions by keeping the original agreements signed by the customer and provides a copy of the Agreement or terms and conditions to its customers.

2. All applications are verified and processed within a reasonable period of time. All applications would go through a De-duplication and Fraud Check though internally established procedures of the Company, before loans are processed or approved. The applications which do not satisfy the Deduplication or Fraud Check criteria, would be automatically rejected. Documents needed from the customers will be collected before disbursement of loan. 3. The terms and conditions of the loan are clearly mentioned in the Loan Agreement. The Loan Agreement would specify the tenure, the amount of the loan, applicable rate of interest, the Equated Monthly Installment (EMI) payments and other fees charged by the Company. Processing fee, if collected would be clearly mentioned to the customer. A Welcome Letter is also sent to our customers with Key details & Repayment Schedule which mentions the EMIs, split by Principal and Interest components 4. In the event that the loan is rejected, the Company would communicate to the Customer verbally or in writing about the rejection. The Relationship Managers/ Officers are empowered to convey the information of the rejection of the loan verbally. 5. Customers at the time of disbursement of loan are advised about facilities available to them and repayments they need to make from time to time. In any event the Company undertakes to give full details of the loan, its current status, monthly or quarterly repayments required from time to time on the basis of request made by the Customers. 6. The Company would release all the securities to the customer once the loan is repaid and no dues are outstanding to the Company. 7. In case of request of a transfer of a loan account from one borrower or a lender to another Company or a Bank, the transfer would be completed within 21 days of such a request, provided the customer pays interest and all Company dues up to date.

8. As far as recoveries of loans are concerned the Company would follow its own Collection Policy and procedure which is designed to be customer friendly. Under the Companys collection policy detailed guidelines are laid down for following the Code of Conduct, with delinquent customers. Our collection procedures are constantly checked from a customers point of view. 9. The Company has a detailed policy on customer satisfaction and complaints received. As part of the Customer satisfaction assessment, detailed analysis of customer preferences and their grievances or responses are taken into account in improving our operations constantly. Complaints received are personally attended to by the Branch Manager and resolutions are tracked by centrally by the Corporate Office in Mumbai. All grievances and complaints and resolutions made are presented regularly to the Board of Directors for their review.

Fullerton India's Propositions and Values Propositions

The biggest proposition of Fullerton India is customer focus, both, in product design/ customization and service. As an organization, they are structured not around products but along customer segments. They have separate verticals for the Salaried Individuals (Parivaar) and for Small sized shop owners & Entrepreneurs (Vyapaar). This model lends itself to better understanding of our customers' financial situation and for a better products offering to them. With this holistic understanding of the customers, the company is also able to combine secured and unsecured products and structure the loan in a manner which is ideally suited to meet individual customer requirements. The company employed Relationship Officers to service the needs of the customers. There are no agents or other intermediaries, coming in between the customer and the company. These Relationship Officers are the end-to end solution providers and act as a single point of contact" for all Product, Process and Service related needs of the customer.

 The branches do business only within a 5 km radius. The customers' office or residence has to be within the branch coverage area. This closer proximity of the customers to the branches ensures better understanding of the local environment and immediate situation. The company participates actively in serving the community in and around the vicinity of their branch. The interest of company in the locality extends beyond just a business relationship. The company believes in participating in other aspects of development of the community as well. The business envisages setting up branches with employees dealing directly with the customers. This offering has elicited an enthusiastic response from customers as it gives higher degree of transparency and faster value delivery. The relationship model includes a deep assessment of a customers' business resulting in an omnibus facility with a flexible combination of usage in parts, flexibility between a combination of short and long tenures, and from unsecured to partially secured and fully secured facilities. The facility set up for a customer is based on his risk profile, repayment capacity, as well as proposed expansion plan. A Relationship Officer is assigned to address incremental product needs, as well as for service requirements, through a process of continuous engagement. The business strives to deliver lifelong financing support and regular facility enhancement, based on business growth. Businesses are built on people, and the company hires relevant local talent to serve the market, so that there is a connect between the employees and customers. .The business wishes to bring a full service proposition encompassing loans and liabilities to the small business owners. Besides the variety of loans, life insurance has been introduced which will also be delivered through the branch based Relationship Officers.

 The business uses advanced technology tools to record customer history, and leverage track record to enhance credit exposure in line with the customer business cycle. This ensures continuous support through seasonal peaks.

Objectives of the Study

The study was conducted to aiming at fulfilling the following objectives: To find the preferences of customer regarding various types of loan: This objective focused on the judgment of customer preferences regarding various types of loan provided

by Fullerton India such as Secured Loan, Unsecured loans and Home Equity Loan. The result of this objective will provide the most preferable type of loan among various types of loan provided by Fullerton India. So this objective will help the company to Focus on most customers preferable area. To know the amount of loan generally availed by the respondents: This objective include the study of the amount of loan which is generally borrowed by the customers. To study the Advertising effectiveness in creating awareness among the public: This objective will help to judge the effectiveness of advertising strategy used by Fullerton India to create the awareness among the potential customer about the products and services offered by the company. To study the satisfaction level of customer regarding different loans schemes provided by Fullerton India Credit Company Ltd: The final objective of the research is to study the satisfaction level of the customer who borrowed fund under particular scheme offered by Fullerton India.

STUDY OF PERSONAL LOAN WHAT IS PERSONAL LOAN

Personal Loan is an unsecured loan for personal use which doesnt require any security or collateral and can be availed for any purpose, be it a wedding expenditure, a holiday or purchasing consumer durables, the personal loan is very handy & caters to all your needs. The amount of loan can be ranged from Rs. 50,000 Rs. 20 lakh & the tenure for repaying the loan varies from 1 to 5 years.

BENEFIT OF PERSONAL LOAN

A Loan without security : A Personal Loan is not a secured loan (bank doesnt ask for any security or collateral) as against a Secured Loan where one is required to pledge a house or other security to acquire a loan. 2. Simple Documentation: A Personal Loan can be accessed with minimal paperwork or documentation & doesnt take much time to procure as against a Secured Loan. 3. No specification about the end use of the loan amount : You are not required to disclose the end use of the money borrowed, Banks are concerned about the fact that whether the borrower is able to pay back the loan with interest before the due date or not and they confirm this by checking the income, employment or business & other factors of the borrower. 4. Big Loan amount : Personal Loan is a means to fulfill bigger loan requirement, you can take a loan ranging from Rs. 50,000 to Rs. 20 lakh.

BASIS TO COMPARE PERSONAL LOAN

Compare Interest Rates : Personal Loan can be compared primarily on the basis of interest rates which vary across banks depending on your profile which is further linked to your occupation, salary/income, credit history etc. The personal loan interest rate ranges from 12% to 25%, you must go for that loan which is offering you at the minimum rate. Other Charges : You should also check on the other charges like processing fee, prepayment penalties and documentation fee because they increase the overall loan cost and vary widely across banks. Evaluation of various Loan offers : You should first calculate the entire loan cost across banks which constitutes the rate of interest & banks other charges. Evaluate offers keeping the tenure of the loan constant & compare the rate of interest, EMIs & other charges. This process will help you get the Best Loan deal. EMIs : EMI is the monthly equated installment which constitutes the principal amount and the interest on the principal equally divided across each month in the loan tenure. Use our EMI Calculator to compare EMIs across banks Tenure : Tenure is the time frame for the personal loan payments to be paid back to the bank; it ranges from 1 year to 5 years. If you have a longer tenure you will end up paying more interest & will have lower EMI, on the other hand shorter loan tenure will carry higher EMIs & the interest amount is less. You must compare the loan offers by keeping the tenure constant. Eligibility Check : Before taking a personal loan you must know the eligibility criterias offered by various banks on the basis of which they offer loans and also compare personal loan banks. Checking the eligibility parameters will help you find the best loan deal. Check out your eligibility by various banks.

 Turnaround time : It becomes one of the most important factors in evaluation of your loan application when you are in a dire need of money. Turnaround time is the time which banks take in processing your loan application; you must check this parameter which varies from bank to bank.

CHARGES INVOLVE IN PERSONAL LOAN :

Processing fee : It is a fee charged by banks from the borrowers to process their loan application; it is normally between 1-2 percentage of the loan amount.

Prepayment fee : Banks charge borrowers with a fee when they pay the loan EMIs before the tenure which normally is between 2-5% of the outstanding loan amount. Late penalties : When there is a delay in paying your monthly EMIs of your loan, banks charge a late payment fee with your EMIs. They normally range from 2-3% of the EMI. Cheque bounce charges : Banks charge between Rs. 250-500 for every bounced cheque given for the payment of the loan amount owing to the insufficient funds in your account.

Documents required in Personal Loan

The documentation process in personal loan is very fast as against secured loans. Following documents are required by financial institutions to process the loan application: Identity proof 3 to 6 months Bank statements Residence proof Salary slip Guarantors & their same set of documents In case of self-employed banks require balance sheets, profit & loss account, partnership deed & other mandatory documents etc.

PERSONAL LOAN CRITERIA BY VARIOUS BANKS

Banks offer Personal Loan to borrowers depending on various factors such as income, employment, continuity of business so as to make sure that they repay the loan with interest before the due date. The eligibility criterion of a Personal Loan is primarily based on the work profile of a loan seeker which is broadly divided into the following two classes: - Self-employed - Salaried In addition to the above factors banks also consider other aspects such as age, work experience, existing relationship with the bank, repayment capacity etc. To find your eligibility Criteria across various banks in accordance with the above parameters; Deal4Loans has brought in the Eligibility Criteria Check for Personal Loan seekers.

BANK Rate

HDFC Bank of 15.5% - 22% 2% if

Citi Bank 16.5% to 20%

Fullerton bank 18% - 28% 2%

Interest Processing Fee Loan Amount Prepayment Charges Disbursal Time Documents

salaried 2% of loan amount

account in HDFC other wise 2.5% Rs.50,000 Rs.15,00,000 4% 2Days - 7Days Identity Proof : Passport/ Driving License/PAN card/ Photo credit card (with embossed Signature and last - Rs.50,000 Rs.15,00,000 5% 2 working days Identity Proof: Passport/ Driving credit card (with embossed Signature and last two months - Rs.40,000 - Rs.5,00,000 4% 4 working days Identity Proof : Passport/ Driving Photo credit card (with embossed Signature and last two months

License/PAN card/Photo License/PAN card/

two months statement)/ bankers sign verification (Anyone of the above) Age Proof : PAN Card/ Passport/ Driving License / School leaving certificate/ Voters card/BirthCertificate/ LIC policy (only for age Proof). (Anyone of the above) Address Proof : Passport/ Telephone bill (BSNL/MTNL)/ Electricity bill/ Title deed of property/Rental agreement/ Driving license/ Election ID card/ Photo-credit card (with last two month statements) (Anyone of the above) Income Proof : Latest salary slip/current dated salary Certificate with latest form 16

statement)/ bankers sign verification. (Anyone of the above) Age Proof: PAN Card/ Passport/ Driving License /School leaving certificate/ Voters card/BirthCertificate/ LIC policy (only for age Proof). (Anyone of the above) Address Proof : Passport/ Telephone bill (BSNL/MTNL)/ Electricity bill/ Title deed of property/Rental agreement/Driving license/ Election ID card/Photo-credit card (with last two month statements). (Anyone of the above) Income Proof: Latest 3 month salary slip (computerized pay slip with company Logo/pay slip on company letterhead) (Anyone of the above) Job Continuity Proof : Form 16/relieving (for last two months)

statement)/ bankers sign verification (Anyone of the above) Age Proof : PAN Card/ Passport/ Driving License /School leaving certificate/ Voters card/ BirthCertificate/ LIC policy (only for age Proof). (Anyone of the above) Address Proof : Passport/ Telephone bill (BSNL/MTNL)/ Electricity bill/ Title deed of property/Rental agreement/ Driving license/ Election ID card/ Photo-credit card (with last two month statements) (Anyone of the above) Income Proof : Latest 3 months salary slip (Computerized pay slip with company Logo/pay slip on company letter head) (Anyone of the above) Job Continuity Proof : Form 16/relieving Letter. (Anyone of the

letter/appointment Letter letter/appointment

(Anyone of the above) Job Continuity Proof : Form 16/relieving letter/appointment Letter (for last two months) (Anyone of the above) Banking History : Bank statements of latest 2 months/ 3 months bank passbook (Anyone of the above)

(Anyone of the above) Banking History : Bank statements of latest 6 months and Existing loan sanction letter if any. (Anyone of the above)

above) Banking History : Bank statements of latest 6 months (Anyone of the above)

HOW DOES THE CIBIL SCORES AFFECT YOUR LOAN APPLICATION?

This a norm wherein the banks before giving Personal Loan checks the database of all loan borrowers in the country by the Credit Information Bureau of India (CIBIL) which is called the Cibil Score. If there has been a default in your loan payment; your loan application would certainly be rejected. Your Cibil score ranges from 100 to 999, for instance if your credit score is 100 then your loan application might be out rightly rejected. On other hand if it is higher say 800, then your loan application would be processed faster & will be rewarded with lower interest rates & discounts in processing fee & other charges. You can

improve your credit score by repaying your loan EMIs on time and always pay the minimum payment on your credit card to avert from the bad credit score.

Fullerton India Personal Loan

Fullerton India is a Non Banking Finance Company. The Company started its operations in January 2006.Fullerton offers you a wide range of financial products like Home Loans, home equity loans Business Loans and life insurance. It has more than 800 branches across India. Fullerton India Personal Loan offers: Simplicity - Easy to understand, simple processes and standard documentation Speed - Average turnaround time in loan processing is just two days One of the lowest Personal Loan Interest Rates. Minimum Documentation.

Eligibility Criteria for Fullerton India Personal Loan

Age of Applicant No. of years in employment Current Experience Net Monthly Income Min-21 years ; Max-60 years. 3 years & above 6 months & above Rs. 12,500/- & above

Loan Amount offered by Fullerton India

Minimum Funding Maximum Funding Rs. 40,000/Rs. 5,00,000/-

Loan Tenure offered by Fullerton India

Minimum Tenure 12 months

Maximum Tenure

60 months

Turn Around Time of Fullerton India Personal Loan

Turn around time 4 working days

Processing Fee of Fullerton India Personal Loan

Processing fee 2.5% to 3.5% of loan amount

Prepayment Charges of Fullerton India Personal Loan

Foreclosure Charges 4% of outstanding principal (Can be foreclosed after 6 months only)

Salary available for making EMIs

Above Rs. 15,000 p.m 60% of salary is considered

Documents Required for Fullerton India Personal Loan

Passport/ driving license/PAN card/ Photo Identity Proof credit card (with embossed Signature and last two months statement)/ bankers sign verification PAN Card/ Passport/ driving license/ School leaving certificate/ Voters card/ BirthCertificate/ LIC policy (only for age Address Proof Proof). Passport/ Telephone bill (BSNL/MTNL)/ Electricity bill/ Title deed of property/Rental agreement/ Driving license/ Election ID card/ Photo-credit card (with last two month Income Proof statements) Latest 3 months salary slip (Computerized pay slip with company Logo/pay slip on Job Continuity Proof company letter head) Form 16/relieving letter/appointment Letter.

Age Proof

Banking History

Bank statements of latest 6 months

FAQs ON PERSONAL LOANS : What is a Personal loan? An unsecured loan is called a Personal loan. This implies that you dont have to give any security, as with a car loan or a home loan, where the underlying asset is mortgaged with the bank. Normally, the bank does not ask for guarantors either. More advantages: minimum documentation and speedy clearance (within three to seven days of applying). And there is no monitoring of 'end use' -- you can use the loan for any purpose you like. What can I use a Personal Loan for? Personal loan can be used for anything and everything. There are no restrictions on the end use. You could use the loan money to finance anything from the latest flat-screen-plasmaLCD TV to buying your better-half a diamond ring. How do I take a Personal Loan? You can always start by checking out with different banks offering you the loan for the best offers - interests - EMI schemes etc. Also find out the eligibility criteria and the documents required to submit before you apply How is my loan eligibility determined? Loan eligibility depends upon various factors which differ from banks to banks. The main factor of course, is your ability to repay the loan. Also your profile, in terms of residence and the place you work in also matters. Do make sure to check all such other eligibilities before applying. What is the maximum tenure of a personal loan? Personal loan is a short tenure loan. Most of the banks provide you loan for maximum 3 years (36 months). to max 5 years(60 months).

How much personal loan that i can take? Loan eligibility depends upon various factors. The main factor is your ability to repay. The bank would like that the instalment you pay should not exceed more than 30 to 40% of your net salary or 2-3 times of your income tax return. Please check the eligibility section (hyper link)of our site to know how much you can borrow.

What are the fees and charges payable and when are they payable? Apart from the rate of interest bank also do charge some fees which are of Usually two types. Once when you are applying for the loan and once when you are preclosing the loan. The fees when charged at the time of processing called as Processing Fees vary from 2-3% of the loan amount. This could be reduced if you have the ability of bargaining. the second charge is the prepayment penalty paid at the time of preclosure. This too varies from 2 3 %. Similar to processing charges, you can also try to get this fees reduced. What is the rate of interest that will be charged on my loan? The interest rate varies from bank to bank. And usually it varies from 14%-26% depending upon your profile and the policies/scheme you opt for. How soon can I get my loan money? Usually banks disburse your loan within seven working days. However, it is recommended that you keep all your documents ready and in order, especially the post dated cheque (PDC), to avoid any delays. The loan is disbursed only after the completion of submitting of all required documents. Can I apply for loan, jointly with my spouse?

Yes. Personal Loans can be applied jointly with a co-applicant (either be your spouse or your parents). This helps you to increase your income eligibility and you can also avail for a larger amount of loan, if you want to, as your co-applicants income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for. What is relationship discounts? Lenders offer relationship discounts if you already have a relation with that bank. This basically means that if you are already banking with the lender from whom you seek to avail a loan, they give you certain discounts in the form of reduction in personal loan interest rates or other such charges, sometimes even giving you additional services. How do I repay my loan? At the time of applying for the loan, banks ask you to submit all the post dated cheques (PDC). for each month with Emi which is equal monthly installments or they ask you to sign an Ecs(Electronic clearing system ) with the account that you hold. Mostly these cheques/Ecs are presented on 1 st of each month , so please do confirm with the bank on that respect

UPDATED RATE OF INTEREST ON PERSONAL LOANS :

Salaried Banks/Rates PreCAT A CAT B Others Payment Charges Fullerton India 15.5% 15.5% salary), 16% (for 50,000-75,000 HDFC Bank salary), 17% (for 35,000-50,000 salary), 19% 21%-23% 15.5% above salary), 16% (for 50,00075,000 salary), 17% (for 35,00050,000 salary), 19% salary) Only for 16% (more than 50000 salary), 16.5% Citibank (for 35000-50000 salary), 17.5% (between 2200035000 salary) Citibank account 22% 4% 2% if salaried account in HDFC other wise 2.5% 21%-28% 4% Processing Fees 2%

(for 75,000 & above (for 75,000 &

(below 35,000 salary) (below 35,000 Only for Citibank account

holders: 17% holders: 17% (for more than (for more than 50000 salary), 50000 salary), 18% (for 3000018.5% salary) 18% (for 3000018.5% salary) 5% 2%

50000 salary), 50000 salary), (20000-30000 (20000-30000

State Bank of 16% India/SBI Citi Financial (Guarantor required) 16%

16%-20% (Guarantor required) 17%-18% 16.75%18.75% 18% 15.5%

16%-20% (Guarantor required) 21% N.A. 19%-23% N.A. 5% N.A. Nill N.A. 2% Rs250Rs1000/2% 2% 1.50% of the N.A. 2%-3%

Andhra Bank 15.75%-16.75% Axis Bank Bank of Baroda Corporation Bank 16% 15% 14.5% (undertaking letter required)

N.A. N.A.

N.A. N.A.

N.A. N.A.

loan amount or Rs.500/N.A.

ICICI Bank N.A. Standard Chartered Bank 15.5% - 22%

15.5% - 22% 15.5% - 22% 2%-5% 1%-2% 13.5%

13.5% Syndicate Bank (against security of IVP, NSC, KVP, LIC policies, RBI Relief Bonds)

(against security of IVP, NSC, KVP, LIC policies, RBI Relief Bonds) 16%-18% 12%(For pensioners) N.A.

13.5% (against security of IVP, NSC, KVP, LIC policies, RBI Relief Bonds) 16%-18% 12%(For pensioners) N.A. N.A. N.A. N.A. N.A. N.A. N.A.

United Bank 16% Of India 12%(For pensioners)

Vijaya Bank 16% Where CAT A refers to

- Top 1000 companies

CAT B refers to CAT C refers to Non Listed refers to Loan Surrogates refers to

- Multi National Companies( MNC's ) - Small companies - Smaller companies with 100 emloyees. - Any running loan from any bank

Income : If your Income is above a certain limit, Banks believe that your chances of not paying are lesser as you have Income to pay. Income above 75 per month usually gets some discounts from all personal loan Banks. Your Company Status : If the company you are working with is a well known corporate, the Banks feel that you are less likely to shift from your job and will result in lesser defaults. Credit and Payment History : Banks follows Cibil scores/rating before deciding giving loans. If your payments for Credit Cards and Loans is not upto mark , you have the most likely chance of being rejected for the loan or the Bank will give you at a much higher rate. Relationship with Bank : The Bank where you have your Salary account/Savings account is likely to pass on you to some special rate for your personal Loans or Processing fee. Individuals Negotiating Skills : Based on your above points you can always ask Bank to give you waivers on Rates, Fees Etc.

Personal Loan Interest Rates in India

Unlike a product like a movie ticket for which everyone is charged the same price, every individual will be charged a different personal loan interest rate and be eligible for a different loan amount based on their credit profile. The personal loan interest rates you will be charged and the loan amount you will be eligible for will vary by bank, and will depend upon factors like your income, your employer, your work experience and your residence stability. Personal loan interest rates in India are usually quoted as monthly reducing balance rates, however some lenders quote rates as annual reducing balance rates or as flat rates. The simplest way of comparing different personal loan offers is to calculate the total amount of money you will need to repay the bank in order to completely pay off your loan. The below table is prepared by our market experts and lists the banks which constitute 90% of personal loan market in India to help users save time in their search for personal loan. Personal Loan Interest Rates. Bank Name HDFC Bank Personal Loan ICICI Personal Loan Axis Personal Loan Fullerton Personal Loan CitiFinancial Personal Loan SBI Personal Loan Interest rate range 14% - 24% fixed 16% to 24% fixed 14% to 21% fixed 18% -34% fixed 21% -24% fixed 16% fixed Rate Type Monthly reducing balance Monthly reducing balance Monthly reducing balance Monthly reducing balance Monthly reducing balance Daily reducing balance

REVIEW OF LITERATURE Trevor Richards (1996 ) Begins by defining the conversion model a model used as a marketing tool to identify commitment to different brands of goods or services. Argues that there is a difference between committed and uncommitted customers which is not related to service quality and that this makes it difficult to predict customer retention based solely on these grounds. Other factors also drive commitment. Presents two short case studies based on these assumptions. Kurt Matzler, Hans H. Hinterhuber, Franz Bailom, Elmar Sauerwein (1996) How to delight your customers, Asks which product qualities are decisive for the satisfaction of the customer and which features merely prevent dissatisfaction. Proposes Kanos model of customer satisfaction for answering these questions and for drawing conclusions for the management of product development. In his model, Kano distinguishes between three types of product requirement which influence customer satisfaction in different ways when met: must-be requirements, which are basic criteria of a product - if these requirements are not fulfilled, the customer will be extremely dissatisfied; onedimensional requirements, where customer satisfaction is proportional to the level of fulfillment, the higher the customers satisfaction and vice versa; and attractive requirements, which are the product criteria which have the greatest influence on how satisfied a customer will be with a given product. Attractive requirements are neither explicitly expressed nor expected by the customer. Antony Beckett, Paul Hewer, Barry Howcroft (2000) An exposition of consumer behaviour in the financial services industry, Deregulation and the emergence of new forms of technology have created highly competitive market conditions which have had a critical impact upon consumer behaviour. Bank providers must, therefore, attempt to better understand their customers in an attempt not only to anticipate but also to influence and determine consumer buying behaviour. The paper accordingly presents and develops a model which attempts to articulate and classify consumer behaviour in the purchasing of financial products and services. The theoretical insights generated by this model are then used to examine qualitative research data gained from focus group discussions on consumers attitudes to their financial providers and their financial products. Finally, these findings are examined for the potential insights they provide to bank

providers attempting to identify appropriate strategies which are conducive to increased customer retention and profitability. Randi Priluck (2003) Relationship marketing can mitigate product and service failures, Relationship marketing is beneficial to firms because it can foster customer loyalty and re-patronage behavior. Consumers engaged in relational exchanges are more satisfied than those in discrete transactions because of the ease and psychological comfort of purchasing from a familiar company. This research investigates the power of relationship marketing to mitigate in two situations. One exposes consumers to poor product performance and examines their levels of trust, commitment and satisfaction. The second presents a product failure that is followed by a lapse in service recovery and measures satisfaction and exit behavior. The findings of both studies suggest that relationships make up for increasingly strong negative encounters, providing a level of insulation for the marketer. Implications for service firms are discussed. Adam Lindgreen (2004) Few published empirical studies have examined the design, implementation, and monitoring of customer relationship management (CRM) programmes at a practical level. The article develops a single embedded case study on Dagbladet Brsen (http://www.borsen.dk), the largest publisher of business-related materials in Scandinavia. The article first introduces the reader to the philosophy behind CRM. Following that, it considers key areas of a four-year long CRM programme and offer insights into the procedure that has been developed by SJP (http://www.sjp.dk), the consulting firm that was brought into assist. The procedure is organized around eight areas: commitment of senior management, situation report, analysis, strategy formulation, implementation, management development, employee involvement, and evaluation of loyaltybuilding processes. Over the four-year long CRM programme, Dagbladet Brsen increased its newspaper circulation by 40 per cent and advertising revenue by 50 per cent, while total revenue more than doubled. Ka-shing Woo, Henry K.Y. Fock (2004 ) The axiom that the customer is always right is no longer valid when companies realize that some of their customers are not right at all. Paying too much attention to these so-called wrong customers may jeopardize a company's survival and profitability. Right customers have to be retained, at-risk right customers have to be recovered, and wrong customers have to be divested. This study attempts to operationalize the concept of customer rightness and wrongness in terms of different configurations of attribute satisfaction and overall satisfaction. Based on the result

of a discriminant analysis of satisfaction survey data, customers with different configurations of attribute satisfaction and overall satisfaction are re-examined in terms of switching intention, behavioral patterns and demographic characteristics in order to highlight any significant descriptor. Susan E. Rau (2005) Building great products can be a reality for any company that takes the time and effort to create and execute the linkages between: winning strategy; the role of products and services; the product building blocks; and, linkages to customer needs. In fact, our research and work with clients suggests that a lack of alignment of these factors is the number one cause for the poor performance of many new products. This article defines for the reader the four winning strategy choices a company has Product Leader, Distribution Giant, Innovation Superstar and Customer Lover and how each of these models puts a different emphasis on products and services. Once a company has selected a winning strategy, executing that strategy successfully requires adherence to the business model, including aligning product and services, customer imperatives and financial realities to that winning strategy model. Losing focus and drifting away from the chosen strategy or interspersing, for example, the product priorities from one winning strategy with the customer imperatives from another is a recipe for lackluster earnings and poor stock performance. Readers will learn how to outsmart the competition and build products that really win in the marketplace. ANALYSIS OF DATA This research is based on primary data i.e. collected through primary and secondary sources sources. The primary data is collected with the help of questionnaire survey and secondary data is collected from newspapers, internet and magazines. Therefore, the analysis of data is categorised under following two sub categories that are: Analysis of Primary Data Analysis of secondary data

The analysis of primary data includes the analysis of data collected through questionnaire. The analysis of Primary Data is as follow:-

PARAMETERS SELECTED FOR COLLECTING PRIMARY DATA: 1. Age of the Respondent: Age yrs PERCENTAGE 18-28yrs 30% 28-38 yrs 26% 38-50 yrs 24% More than yrs 20% 50

The respondent of research comprises of 30% of 18-28 years, 26% of 28-38 years, 24% of 38-50 years and 20% of more than 50 years. This classification of age group is required to know the perception of person for taking loan at different stage of life. Generally Fullerton India provides loan to salaried individuals and new entrepreneurs, therefore our sample size is consists 56% of respondents lies between the age group of 18 to 38years. After setting the age group composition for survey the next parameter for differentiating respondent is Income level.

1. Annual Income of the Respondent

Income %age Below 1 Lac 15% 1-2 Lac 40% 2-5 Lakh 35% Above 5 Lakh 10%

Second classification of respondent is based on the basis of their annual income. This classification is done to know that mostly which income level people have more demand for loan. This research is targeted to know the demand of loan by salaried individual and small entrepreneurs, therefore the sample size consists of 15% Lower Income level and 40% middle income level for judging the demand of salaried individual and to judge the demand of small entrepreneurs the sample size consists of 35% upper middle income level and 10% that are having annual income more than 5 lakh. P e rc e n t a g e

3. Occupation of the Respondent

Occupation

Government Employee

Private Employee 25.00%

Businessman

Percentage

30.00%

45.00%

The third important consideration which helps to identify that whether the respondent is salaried individual or small entrepreneurs is occupation. The occupation comprises of Government Employee, private employee that fall into salaried individual category and third component of occupation is Businessman which indicate small entrepreneurs. The weight provided to salaried individual i.e. to Government and private employee is 55% because Fullerton offered more product to this category and For small entrepreneurs the weight assigned is 45% , because this weight can give justifiable result to divide the demand of loan on the basis of occupation.

From which source you knew about the various schemes of Fullerton India?
Sources Percentage News Paper 44% Television Media 12% Internet 20% Friends 24%

This question is asked in order to know the effectiveness of the advertisement strategy adopted by Fullerton India. The result found by the survey shows that most of the customer knew about the various loan schemes through news paper & internet. Therefore company can make more use of the news paper and internet to increase its customer base. Secondly the company also getting the benefit of its existing customer to advertise its product, because 24% of customer knew about the schemes of Fullerton India through their friends who had taken loan from Fullerton India. Fullerton India is not making use of Television media frequently because it is very costly, therefore resultantly it contributed only 12% in creating the awareness among the customer regarding various schemes of Fullerton India.

2. Which type of loan you availed from Fullerton India?

Types Secured Loan Unsecured Loan Percentage 42% 18% 28% Home Loan Home equity loan 12%

The most preferred loan by customer is secured loan. This loan is easily available to customer because there is less risk faced by Fullerton in giving this type of loan as it is secured by some assets of customer. Second more preferred loan than secured loan is Home loan which is availed by 28% of customer other loan are availed by18% and 12% of sample size.

3. Through which scheme of Fullerton India you availed loan?

Type Percentage Parivaar 62% Vyapaar 38%

The Fullerton India offers different types of loans under two main scheme that are Parivaar and Vyapaar. The Parivaar scheme is for salaried individual where as Vyapaar scheme available for small entrepreneurs. The result of survey shows that most of customer availed loan under parivaar scheme i.e 62% as compare to Vyapaar. Therefore it shows that, the salaried individual are more important for company, so the company is require to focus on this core product and simultaneously it require to improve the promotion of its Vyapaar scheme to attract more customers.

7. What is your amount of loan?

Amount of Loan 0 - 2,00,000 2,00,000-5,00,000 5,00,000- 10,00,000 10,00,000 or more %age of Respondents 28% 45% 32% 5%

This question is asked to know that generally how much amount of loan is availedby the customer. The result of survey shows that 45% customer availed 2 lakh to 5lakh loan, 32% availed 5 to 10 lakh, 28% availed loan up to Rs 2lakh and there are very less customer who availed loan more than 10 lakh. So the Fullerton India is famous for medium loan, but there are very less number of customer for large amount loan. Therefore the company needs to focus on the schemes for large amount loan to become famous in this segment also.

4. What is the repayment period of your loan?

Number of Years Below 2 Years 2-5 Years 5-10 Years More than 10 Years

percentage of Respondents 19% 43% 28% 10%

The profit of the company depends on the repayment period, because if the repayment period is long than customer will pay interest for long period so it beneficial for company to issue loan for long repayment period. In the survey itb was found that 19% customer availed loan for maturity period less than 2 years, 43% of customer availed loan for 2 to 5 years, 28% availed for 5 to 10 years and only 10 % availed for the repayment period more than 10years. The most preferred repayment period is 2 to 5 years. The company will earn more sustainable profit for long period if it increases the customer who avail loan for long maturity period, therefore the company need to formulate some attractive scheme to attract the customer towards long repayment period loan.

9. Are you satisfied with the rate of interest charge by Fullerton India?
Yes No

67%

33%

The Fullerton India charging different rate of interest for different type of loan. The rate of interest of unsecured loan is quite high because of risky nature whereas secured loan is available at less rate of interest. Therefore there are some customers who are not satisfied with the rate of interest. The sample size consists of 67% customers who are satisfied with the rate of interest charging by Fullerton India and only 33% are unsatisfied.

10. What are the main factors which persuade you to avail loan from Fullerton India?
Factors Easy Repayment Easy Documentation Attractive Rate of Interest Quick Processing Others No. of Respondents 19% 26% 29% 17% 9%

This question is considered to know that which service of Fullerton India attract more and more customer. The result shows that an attractive rate of interest is the most important factor responsible for attracting customer toward Fullerton India, then easy documentation, easy repayment and quick processing is also work as supplement to attract customer for availing loan from Fullerton India. Only 9% customers are fall in the category of others who availed loan due to the references of some person, such as friends and relatives.

11. What grade you will assign to the services of Fullerton India?

Grades percentage

excellent 12%

Very good 47%

Good 31%

Fair 6%

Poor 4%

This result shows the perception of different customer toward services of Fullerton India. The 12 % customer thinks that the service delivery of Fullerton India is excellent whereas 47% thinks its service delivery is very good, 31% thinks that services delivery is only good and 6% thinks that the service delivery of Fullerton India is fair, but as nobody can satisfy everyone at same time, so this is same for Fullerton India, 4%customer are not satisfied with the services of Fullerton India.

FINDINGS OF THE STUDY

From the above study it is clear that 62% of the respondents have taken loan under parivaar scheme and only 38% taken loan under Vaypaar scheme. Therefore it shows that Fullerton India is favourable in short term loan segment which is provided by Fullerton India under Parivar scheme and especially for salaried individual. From the above study it is clear that majority of the respondents got aware of different loan scheme provided by Fullerton India through News paper. Therefore company is require to advertise its schemes more frequently in News paper which will help company in getting more new customers. The above study depicts that most of the respondents availed loan of amount ranging from Rs.2-5- Lakh. Therefore, if Fullerton India introduce more scheme under this range to meet the different demand of customers. The above study depicts that mostly the respondents preferred the loan having repayment period from 2-5. Therefore the company needs to add some more benefits to the long term period loan so that the demand of long term loan will increase which increase the profit of company, because as the repayment period is long than the source of income (Interest) is sustain for long period. Most of the people are satisfied with the rate of interest charged and by Fullerton India. Fullerton India mostly disbursed loan as secured loan, this will provide the safety and it will avoid the increasing number of Non- performing asset and bad debts. Customers are the main source of new ideas, and thus their suggestions are vital for every Company. From the above figure it is clear that majority of the respondents are satisfied with the services of their present bank so they do not want any change in the rate of interest and services, but no one can satisfy everyone at same time, Fullerton having respondents who are not satisfied with rate of interest and services of Fullerton India.

SUGGESTIONS
The following suggestions have been formulated on the basis of above study. These set of suggestions might help the Fullerton India to improve the quality of service regarding loan provisions and simultaneously these suggestions help the Fullerton India to tackle the competition prevailing in the market, thereby achieving success in the future. Firstly Fullerton India should create awareness among the common public about the various loan schemes of they are providing.. In order to create awareness regarding the loan schemes an electronic medium of media can put to use to advertise about the schemes and services provided by Fullerton India. This would help to change the attitude of the people regarding the Fullerton India. The interest rates should be regularly revised in order to attract more and more customer. Some new plans should be introduced regularly to cater the special needs of customer which provides them more offerings and benefits. New strategies should be made by the company which enables them to face the competition with other private leading Non Banking Financial companies. The company needs to focus more on providing value added services to its customer. This will create Brand loyalty among customer which indirectly attract more and more customer because a satisfied customer will always bring two more new customers. The management of company should be more efficient which enables in quick processing of the task regarding loans disbursement and loan collection, This will enable efficiency in the working capital cycle of the company. There should be customer relationship management concept in the company which help the company to understand the special need of customer. Accordingly company formulate schemes should be maintained.

 The Fullerton India need to concentrate on new target market by expanding its business through introducing new loan schemes and services. Currently the company is proving loans under main two category i.e Parivaar and vyapaar so, it looks limited. Therefore the company needs to introduce new schemes to enter in to new target market.

REFERENCE

www.fullertonindia.com/ www.fullertonindia.com/index.php? www.google.com www.ask.com www.mywebsearch.com

Questionnaire

Name: 1. Age of the Respondent:a. 18-28yrs c. 38-50 yrs b. 28-38 yrs d. More than 50

Contact No:

2. Annual Income of the Respondent:

a. Below 1 Lakh c. 2-5 Lakh b. 1-2 Lakh d. 2-5 Lakh

3. Occupation of the Respondent:a. Government Employee b. Private Employee c. Businessman

4. From which source you knew about the various schemes of Fullerton India?
a. News Paper c. Internet b. Television Media d. Friends

5. Which type of loan you availed from Fullerton India?

a. Secured Loan c. Home Loan b. Unsecured Loan d. Home equity loan

6. Through which scheme of Fullerton India you availed loan?

a. Parivaar b. Vyapaar

7. What is your amount of loan?

a. 0 - 2,00,000 c. 5,00,000-10,00,000 b. 2,00,000-5,00,000 d. 10,00,000 or more

8. What is the repayment period of your loan?

a. Below 2 Years c. 5-10 Years b. 2-5 Years d. More than 10 Years

9. Are you satisfied with the rate of interest charge by Fullerton India?
a. Yes b. No

10. What are the main factors which persuade you to avail loan from Fullerton India?
a. Easy Repayment c. Attractive Rate of Interest e. Others b. Easy Documentation d. Quick Processing

11. What grade you will assign to the services of Fullerton India?
a. Excellent c. Good e. Poor b. Very Good d. Fair

THANKYOU

TABLE OF CONTENT

Company Certificate Guide Certificate Acknowledgement Chapter -1 Chapter -2 Chapter -3 Chapter -4 Chapter -5 Chapter -6 References Questionnaire Company Profile Review of Literature Research Methodology Data Analysis & Analysis Findings & Recommendation Suggestion