FYP Loans Advances Muslim Co Operative Bank

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A
PROJECT REPORT
ON
LOANS AND ADVANCES

THE MUSLIM COOPERATIVE BANK LIMITED
PUNE
SUBMITTED TO
UNIVERSITY OF PUNE
BY
ARIF INNUS MUJAWAR

MBA II
IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS OF THE
MASTER OF BUSINESS ADMINISTRATION (MBA)
MCES
ALLANA INSTITUTE OF MANAGEMENT
SCIENCES
PUNE 411001
*2007 2009*
1
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C E R T I F I C AT E
This is to certify that the Project Report titled LOANS AND ADVANCES
is a work carried out by
of MBA II of our
of
the MBA degree
ARIF INNUS
MUJAWAR student
Institute in partial fulfillment the requirements

of the
University Of
Pune . He has worked
under our guidance and supervision .
Dr. K.K.SINGH
Prof. Zafir
Director Internal Guide
Date :
Date :
Place : PUNE
Place : PUNE
D E C LAR AT I O N
This is to certify that the Project LOANS AND ADVANCES is entirely done
by me except taking into account the internal guidance under Prof. Zafir and
Mr. Amir Usman Magdum (Branch manager) Muslim Co-operative Bank Ltd.
it is an authentic effort put in by me.
ARIF INNUS MUJAWAR

(ALLANA INSTITUTE OF MANAGEMENT SCIENCES)
ACKNOWLODEGEMENT
The preparation of this project report has been made possible through the direct
and indirect co-operation of various Organization , to whom I wish to express
S
my appreciation and gratitude.
I am grateful to Mr. AMIR USMAN MAGDUM (Br.Mgr.) for giving me the
opportunity to undertake my summer training in MUSLIM CO-OPERATIVE
BANK LTD. PUNE.
I am also thankful to the other employees of the organization who in their own
capacities have helped me to successfully complete my project.
I owe my profound gratitude to my Project guide Prof. Zafir for his

suggestions and guidance in the completion of this project report.
EXECUTIVE SUMMARY
THE STUDY OF LOANS AND ADVANCES was the project undertaken as a

part of the academic requirement of the two year MBA course and was
conducted for MUSLIM CO-OPERATIVE BANK LTD. PUNE.
The main objective of project was to study the loan and advances provided by the
MUSLIM CO-OPERATIVE BANK LTD. PUNE and to comment on the
interest rates applied on different loans and advances.
This project aims at analyzing the issuance of different loans and advances
provided by MUSLIM CO-OPERATIVE BANK LTD. PUNE
The objective of the project was tounderstand the concept of loans and advances
rate of interest,sanction,security,maturity time , and formalities to be followed.
The project was carried out from 2
nd
st
of June to 31 July 2008 under the guidance
Of Mr.Amir Usman Magdum (Branch Manger)
INDEX
SR. NO.
TOPIC
INTRODUCTION
a) Background of the study
b) Objectives of the study
c) Scope of the study
d) limitation
COMPANY PROFILE
a)Company History
b)Corporate overviews
c)Organizational Hierarchy
THEOREITICAL FRAMEWORK
RESEARCH METHODOLOGY
PAGE
NO.
a) Meaning of research
b) Method of data collection
DATA ANALYSIS AND
INTERPRETATION
CONCLUSION
SUGGESTIONS
QUESTIONNAIRE
BIBLIOGRAPHY
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INTRODUCTION
Loans and advances are the most important aspect of any banking organization .
Loan is a type of debt. Like all debt instruments, a loan entails the
Redistribution of financial assets over time. The borrower initially receives
An amount of money from the lender, which they pay back , usually but not
Always in regular installment , to the lender . This service is generally
Provided at a cost , referred to as interest on the debt . A sum of borrowed
Money (Principal) that is generally repaid with interest . Loan to Value
Ratio the relation between the amount of the mortgage loan and the appraised
Value of the property expressed as a percentage.
Lock lenders guarantee that the mortgage are quoted will be good for a specific
Number of days from day of application . Money Margin, the amount of a
Lender adds to the index on an adjustable ratio mortgage to establish
The adjusted interest rate . ADVANCE is a term that describes a secured loan
Made to a member. Advances are offered at fixed or floating rates with specific
Maturities or with embedded options for early redemption .
There are different types of loan offered by a bank . Different loans fetch a
different rate of interest and have different securities against them.
CONSUMER LOANS
HOUSING LOANS
CAR LOANS
EDUCATION LOANS
LOAN AGAINST MORTAGE
BACK GROUND OF THE STUDY

No one can say for certain where the history of loans began its likely that
people have been practicing lending and borrowing for as long there has been a
concept of ownership.
The history of loans and advances can be documented at least several thousand
Years back forms of lending were evident in ancient Greek and Roman times ,of
course it is, however ,important to realize that lending started much earlier than
many people would imagine and has its origin in much older times .
Indentured loans
One of the early forms of lending that should be explored in the history of loans
Is the indentured loan (also known as indentured servitude,) Initially
practiced
th
In the middle ages and through the 19 century by landowners and the wealthy
indentured servitude allowed poor individuals to borrow the money needed for
major expenses such as travel and real estate once the land owner or wealthy
individual had secured a ship passage or piece of real estate for an individual,
that would then have to work off real estate for an individual that individual
would then have to work off their debt over the course of several years.
unfortunately , many a times
the land owner was very
greatly inflate the debt or would continue to
dishonest and would
add provisions to the debt long
after it had been repaid . Indentured servants often had very few rights, and
were seen by some wealthy individuals as a
after slavery had been abolished
way to maintain slave labor long
in both Europe
and
the United States.
Banking Loans
Luckily legitimate banks were developing even as indentured servitude was
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rampant. individuals known as money lenders played an important part in the

history of loans in fact, its from the Italian moneylenders of the middle
ages that we get both the English words banks and bankrupt that we use
today.
Indian moneylenders would set up benches in the local marketplace (with the
word for bench being banca from which, we eventually derived the word
bank ) The moneylenders
would charge interest on
their loans at a rate
that they set, and would sometimes be quite successful and become very wealthy.
As an interesting side none
to the history of loans, if the moneylenders were
not successful, though, theywould break up their benches and pursue other venues.
The Latin expression for breaking up benches in this way was bnaca rupta ,
(which carries a much steeper connotation than simply a broken bench .).
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Modern banking loans

Of course , the history of loans has
progressed quite a bit from the days of
the middle ages moneylender. Interest rates are much more controlled , loan
terms have a much higher degree of fairness to them , and banks
of out era
arent out to simply get as much
they
money out of borrowers as
can
The modern banks , finance companies , and online lenders that provide loan
to the public and private
and are
sectors provide a great service to the world economy,
regulated by both local and governmental policy so as to make sure
that nothing interferes with that service.

However , if
not for some of the oppression and misdealing
Through the history of
that was present
lending then fairness and opportunity that exists in
Banking today might not be possible.. even the oppression that resulted from
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Indentured servitude in the past helped to establish modern banking by showing

What factors needed to be eliminated so as to benefit both lender and borrower.
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OBJECTIVES OF THE STUDY
1 To assess the different interest rate on the different loans schemes

Provided by the bank .
2 To study different loans provided by the bank.
3 To assess the total loans provided by the bank in a nutshell as well as

Individually that is car loan, housing loan, personal consumer loan and
Other schemes .
To study the process and formalities that needs to be completed

for acquiring the loan.
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4
SCOPE OF THE STUDY

To be competitive in modern banking / corporate world , constant Capital flow
is essential. Whether to expand business or to relocate production
unit to some other place
of cost effectiveness, you require finance is required.
Its not always possible to fund them through
internal sources. A delay of a
few days can cost millions.

To make an your enterprise successful and to run a your business strategically,
a secured business loan is an option worth trying for. Life can take an adverse
turn at any moment. We cant be certain about our future responsibilities and
obligations. In an hour of need, we look for various
options to raise money.
Many new ways have been evolved to raise money, but as a human being ,
we tend to rely on the most favored options. A secured loan provides easier and
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way to acquire loan. One can easily plan his future investments and
can easily fulfill his requirement and needs of life without risk.
Loan like housing loans, car loans, educational have helped people fulfill their
needs with ease.
BENEFIT TO THE LENDER
The lender of the loan
gets the desired rate of
He/ she has
borrowed.
The lender
can plans his investment and can
returns on the investment to be utilized in the

good reputation
interest on the amount
earn good
future and can build a
in the market.
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BENEFIT TO THE BORROWER
The
advantage with loans is that you can design your repayment period
as
well as monthly installments according to your financial capacity .
A secured
business loan comes at a lower interest rate when compared
with other
business loans . As these loans are taken against collateral,
any
default in repayment can put the commercial property at risk.
Interest
offered onare
secured
business
loan is variable
and easily
affordable.
Suchrates
opportunities
provided
to entrepreneurs
to encourage
them and ultimately enhance the economy of the region. By promising
business or industries, local government can even eradicate unemployment
and improve overall standard of living.
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LIMITATIONS
My research was limited because of the fact that the major source of data
was from the annual reports of the company, which were subject to accounting
policies and practices followed by the company.
The major limitations are :
1 Due to strict confidently policy of the company the accounts

departments provided only screened information.
2
Accuracy of the data provided cannot be guaranteed which does
Not give a clear idea about the actual functioning of the bank .
1
Due to busy schedule of advance manager , the companies

financial statements obtain secondary data .
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ORGANIZATION
PROFILE
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The Muslim co-operative Bank was started in the year 1931. Earlier
it was
a credit society , and then it converted itself into a co-operative bank in the year
1936 , registered and incorporated. Mr. Ramzan Umar Shaikh and Abdul Kadir
Ebrahim
established the Muslim national co-operative bank in the year 1931

th
on May 25 today the bank is officially recognized as The Muslim co-operative

Bank Ltd.
Important aspects of the Bank
The Bank has been established to focus on the local needs of the
communities specially the minority community, which is considered as
economically and educationally backwards.
To engage itself in creating

deposits and lending the
awareness for saving by means of colleting

same to theneedy people
of the minority
community.
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It is a voluntary organization open to all people irrespective of gender ,

social , political , and religious persuasion.
The tradinational role of the bank is to provide financial intermediation

between the depository and the borrower.
The Muslim co-operative Bank has in all 18 branches in the main areas of
Pune city at camp, Raviwar Peth , Kondwa , Hadapsar, Wanwori and
Yerewada etc. and also in other cities at Sangamner, Baramati Mumbai
and Junnar branch. The Muslim co-operative bank has
main administration office at Bhavani peth. Pune 42, which is considered
as powerhouse, and it has its registered office at Raviavar Peth Pune 42
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KEY FEATURES OF THE

MUSLIM CO-OPERATIVE BANK
The Muslim co-operative bank has 3 of its branches working 12

daily from 8.3o a.m. to 8.30 p.m. These branches are the main head
hours
office,
camp branch , M.G. road, Mominpura branch and works for 365 days.
The bank achieved a great position in the field of banking by

securing 0%Net N. P. A. for the session 2005-2006.
The bank felicitate the children of there staff which secure 70 %

and above in their exams.
The Muslim co-operative banks provides educational allowances

to the children of the employees.
The Muslim bank has also started a 24 hours service branch along
with additional services to the customers and thus at that time it was called
THE NEVER SLEPPING BANK.
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2
The Muslim bank is fully computerized at all the branches with the latest
technologies and software used in the banking sector.
The bank provides other services such as safe deposit vaults, issue of
D.D. at any place within Maharashtra under Mutual arrange scheme and
PLR on fixed and floating basis minimum at 8 %.
The bank also provides facility of Non Resident external Rupee

account and non-Resident ordinary account facility.
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OBJECTIVES OF THE BANK
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To promote good and fair banking practices.

To promote cordeal relation between the customer and
bank
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To foster confidence in the banking system.
THE MUSLIM CO-OPERATIVE BANK LTD., PUNE

ORGANISATIONAL HIERARCHY
CHAIRMAN
Mr. Shaikh Shafi F.M. Delhiwala
Vice Chairman
Miss Mumtaz Z. Sayed
SECRETARY C.E.O.
J. L .Mandrupkar
Co-opted Director
Taslim Khan
Staff Director
Imtiyaz Mulla
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THEORETICAL
FRAMEWORK
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Different types of loans provided by Muslim Co-Operative Bank Ltd.

Sr.No.
Types of Loan
Short
Term Medium Term
Long
Loans
Loans
Loans
Term
Total (Rs.)
1.
Personal Loan
2,12,42,748.75
2,12,42,748.75
2.
Salary Loan
13,71,501.90
13,71,501.90
3.
Property
48,00,00,888.10
48,00,00,888.10
Mortgage
Loan
4.
Gold Loan
2,55,52,000.00
2,55,52,000.00
5.
Fixed
Deposit 7,68,91,471.00
7,68,91,471.00
Duppat 1,30,85,926.00
1,30,85,926.00
Loan
6.
Dam
Loan
7.
Recurring
2,27,352.00
2,27,352.00
Deposit Loan
8.
Education
13,26,795.00
13,26,795.00
37,22,73,235.93
37,22,73,235.93
Loan
9.
Building Loan
10.
House Loan
11.
Festival
24,99,438.65
24,99,438.65
58,18,924.00
58,18,924.00
Advance Loan
12.
Cash
Credit 8,01,606.00
8,01,606.00
Reinvestment
Loan
13.
Shop Loan
14.
Cash
7,49,15,564.00
Credit 22,27,470.71
7,49,15,564.00
22,27,470.71
Term Loan
15.
Reinvestment
1,08,38,853.00
--------------
--------------
1,08,38,853.00
135443602.71
505114577.4
448515594.93
1,08,90,73,775.04
Deposit Loan
TOTAL
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CONSUMEER LOANS
It is a loan that establishes consumer credit that is granted for personal use ;
usually unsecured
and based on the borrowers integrity and ability to pay .
For acquiring consumer loan one has to complete all the formalities .
1 are the kinds of loan provided by the bank

Following
Computer (P. C.)
2
Autorikshwa
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a) Scale of finance :
b)Eligibility
up to Rs. 75, 000
Employee of Govt. , Semi-Govt. , Civic Bodies

Self employed having minimum net monthly
Salary or income of Rs. 1800.
c)Security
Primary Hypothecation of article financed.

Collateral third party Guarantee of one person.
d)Rate of interest
: 11.25 % p. a.
e) Repayment
30 months
f)Margin
10 % of cost of article
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HOUSING LOAN
It is a loan that establishes consumer credit that is granted for building house :
usually unsecured and based on the borrowers integrity and ability to pay.
For acquiring housing loan one has to complete all the formalities.
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Salient Features :
a)_Quantum of Loan
i) for construction / purchase :The maximum amount of loan to be sanctioned under the
scheme would be 40 times the net monthly income/ salary of the applicant and
there would be no ceiling viz a viz . The amount of loan.
ii) For Renovation / Addition : The maximum loan granted for carrying out
repairs, additions, extensions, improvement, completion, renovation of existing
house is Rs. 4 lakhs (subject to 20 times net monthly salary / income )
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Also as an incentive for small borrowers the loans up to Rs.1.5 lakhs

granted for repairs / renovation of existing houses would now be secured by
third party guarantee of 2 persons or LIC policies, Government securities, IVPs

NSCs, KVPs or such other security as is deemed appropriate by the sanctioning
authority.
However, negative lien would be stipulated
over the existing house
property for which the facility is granted and also have an ir-revocable power
of attorney executed by the borrower authorizing
the bank to sell the house
in case of default.
b) Eligibility :
i) Employee of Govt., Semi-Govt., Civic Bodies PUSs
with minimum 5 years service.
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2) Reputed Businessmen with minimum 5 years standing

3) Professionals & self employed like Doctors, Engineers,
C.A.s, Advocates, with minimum 5 years standing .
c) Security :
Primary mortgage of the house property to be
purchased / constructed .
Collateral : Third party Guarantee of two person , or
assignment of LIC Policies, pledge of Govt. securities etc.
d)Rate of interest (SUBJECT TO CHANGE)

EMI
11.25 %
REGULAR
13.50 %
e)Repayment :
i) For construction of new house 180 months including
9 months moratorium in equal monthly installments .
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ii) For addition / renovation 5 years including 2

months moratorium in equal monthly installments .
f) Margin :
i) For construction /purchase15 %(cost of land inclusive)

ii) For renovation 25%
g) Processing
charges
0.25 % of loan amount
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EDUCATIONAL LOAN
An advance of funds to a student for the purpose of financing a college or
vocational education . For acquiring loan one has to complete all the formalities
The Muslim Co-Operative bank provide loans for P. G. courses
SAILENT FEATURS
a) Scale Of Finance : up to 2 lakhs
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b) Courses Allowed
for
: i) P. G.
Courses in : Medicine, Surgery, Bio
-chemistry, Agriculture, Veterinary , Architecture

etc. .
c) Eligibility
: i) Should
have secured admission to
professionals /
technical courses through entrance
test / selection
process.
ii) Should have passed the qualifying examination
for admission to the courses.
iii) Employed person intending to improve their
educational qualification and / or
receive training
in modern technology.
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d) Security
Personal guarantee of borrowers
e) Margin
Nil
f) Interest
: @ 13.25 % monthly pay on amount
g) Repayment : Course period plus one
of loan
year after getting the job.
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CAR LOANS
The
Muslim Co - Operative bank provides a personal loan to purchase
automobiles.
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Salient Features
Scale of finance : Ranging from Rs. 1 Lac. depending upon the Salary /
Net Annual Income
Eligibility
: i) Employees of
Govt. Semi Govt., Civic Bodies, PSUs
Individual / Proprietorship Concerns / Firms / Limited

Companies known to the Bank
ii) Net Annual Income should exceed
Rs. 75000 /-
iii) The applicant (individuals) should
have a valid
driving license in his/her own name .

iv) The employees of the State Govt. / Semi
Govt.
Departments / Other Organizations should
have
minimum 3 years service in the organization.

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Primary
Hypothecation
of vehicle
financed
Security
:
Interest
@ 13.25%
me
nt :
Repay
years
Marg
in
: 25 %
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LOAN AGAINST MORTGAGE
This scheme is for individuals / business enterprises / professionals and self

employed as an ideal source of funds for expenditures of any nature.
Eligibility criteria :
The scheme would provide finance to Individuals / Business Enterprises
having minimum net annual income of Rs. 1 lac per annum against mortgage
of unencumbered immovable property situated in Metros/Urban areas. Salaried
individuals must have put in a minimum confirmed service of 3 years.
Business Enterprises, professionals and self-employed must have a minimum
standing of 3 years in the respective line of activity.
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Purpose
For meeting their business and / or any personal need / expenditure .
AMOUNT OF LAON
: 1 Lac
INTEREST
: @ 13. 25 %
MARGIN
: Nil
PROCESSING FEES
: .0. 25 % Of the loan amount sanctioned would

be charged as processing fees.
SECURITY
: Registered/Equitable mortgage of unencumbered

residential house / flat, commercial or industrial
property with a clear marketable title situated
in the Metros Urban areas only and which stands
in the name and profession of the borrower.
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The property should be vacant
REPAYMENT
: The loan granted under the scheme together with

interest thereon would be
repayable within a
maximum period of 60 months through equated

monthly installments(EMI)commencing one month
after
disbursement of the loan. The repayment
shall have to be fixed on realistic basis so that

the gross deduction including the EMI
for the
loan granted under this scheme does not exceeds

50 % of the borrower gross
income. In
case of
individual borrower the income of spouse shall

be taken into account for determining the repaying
capacity of the borrower.
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INSURANCE
: The property against
which the loan is granted
will have to be comprehensively insured against

all risks for its full value during the continuance
of the loan facility from the Bank. The cost of
the insurance to be borne by the borrower & the
policy will be drawn in the joint names of the
bank and the borrower within usual bank clause
therein.
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RESEARCH
METHODOLOGY
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MEANING OF THE RESEARCH

Research may mean the first small step in an endeavor to understand better the
change occurring and at times forced upon us as individuals or as society.
Research as a process involves defining problems, hypothesis formulation and

organization and evaluating of data , deriving deductions interferences and
conclusions after careful testing.
OBJECTIVE OF RESEARCH
1. It extends, verifies or corrects knowledge.
2. It enables us to have a better understanding of our world.
3. It aids in purposeful planning.
4. Research initiates, formulates, deflects and clarifies theory.
METHODS OF DATA COLLECTION

Data is of two kind.
1. Primary Data
2. Secondary Data
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Secondary data may be defined as data that has been collected earlier for some
purpose other than the purpose of the present study. Any data that is available
prior to the commencement of the research project is secondary data and it is
called historic data.
USES OF SECONDARY DATA

1) It acts as a reference for the present study.
2) The secondary data can be a useful benchmark, against which the findings
of the study can be tested.
3) At times it may be the only source of data.
SOURCES OF SECONDARY DATA

1) Published Sources
2) Unpublished Sources
DATA COLLECTION METHODS

1) Observation
2) Interviewing
3) Experimentation
4) Simulation
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In this project following data collection methods are used. They are-----------1) Interviewing
2) Published source of data in the form of books of accounts.
INTERVIEWING
It is the most commonly used method of data collection. It is two ways
purposive communication between the interviewer and the respondent aimed at
obtaining and recording information pertinent to the subject matter of the study.
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DATA ANALYSIS, interpretation

AND FINDINGS
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AWARENESS ABOUT LOANS
90
80
70
60
50
40
30
20
10
0 AGREED NOT AGREED
AGREED
NOT AGREED
From the above graph we can say that :
80 % of the respondents agreed that

different
they are
aware of the
loan schemes provided by the bank .
While only 20 % are not aware of the loan schemes provided by the
bank
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REASONING FOR NOT AVALING THE LOAN
70
60
50
40
30
20
10
0
COMPLICATED
SLOW PROCESSING
COMPLICATED
OTHER REASON
SLOW PROCESSING
OTHER REASON
From the above graph it is clear that :
2 65 % of the respondents said that the reasons for not availing the
different loan schemes are the complicated formalities .
20 % of the respondents said that the reasons for not availing the
different loan schemes are the slow processing of applications.
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15 % of the respondents gave the other reasons for not availing the
different loan schemes .
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ATTITUDE OF BANK OFFICIALS WHILE

MAKING TRANSACTIOS
60
50
40
30
20
10
0
EXCELLENT
EXCELLENT
POOR
SATISFACTORY
GOOD
VERY POOR
VERY POOR
SATISFACTORY
2 59 % of the customers think that the attitude of the bank officials

while making transactions is excellent.
1 21 % of the customers feel that the attitude of the bank officials while
making transactions is good .
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3
15 % of the customers think that the attitude of the bank officials

while making transactions is satisfactory .
02 % of the customers think that the attitude of the bank officials

while making transactions is poor .
3 03 % of the customers think that the attitude of the bank officials while
making transactions is very poor .
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SUGGESTION OF THE INTEREST RATE
NONE, 15, 15%
NON FAVOURABLE,
25, 25%
FAVOURABLE, 60,
60%

60 % of the respondents think that interest rates should be 6 % to
7%
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25 % of the respondents think that interest rates should be between
8 % to 10 %
Rest of them agree with the existing policy of the bank
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CONCLUSIONS
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CONCLUSION
As we observed the trends in Indian financial sector is changing rapidly through
Innovation and dependability of loans and advances has also increased and much
awareness of this concept has been found.
Loans and advances have become an important source of raising

the finance amongst individual, corporate as well as for the higher
organizations.
A secured business loan is a loan given for commercial purpose.

It Keeps business properties as collateral. It can be taken for a variety
of
purposes like diversification, research and development or to buy
plants and machineries.
The advantage with loans is that you can design your repayment
period as well as monthly installments according to your financial
capacity. A
loan comes at a lower interest rate when compared with other business
loans. As these loans are taken against collateral, any default in
repayment can put to your commercial property at risk..
5
8
To be competitive and successful in modern corporate world,

constant capital flow is essential. Whether to expand your business or
relocate
your production unit to some other place for cost. effectiveness, you
require finance. Itsnot always possible to fund them to internal sources.
A delay of a few days can cost you in millions.To make your enterprise
successful and to run your business strategically, a secured business
loan is an option worth trying for.
5
9
SUGGESTIONS
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SUGGESTIONS
There are lots of benefits accruing from loans and one can easily fulfill his
needs and basic requirements of life. There are also tax related benefits that is tax
liability can be reduced a lot by showing more debt than equity in capital
structure.
Banks also get the interest on the loans so accordingly they can
also earn profits and plan the future investments.
A lot of documentation and formalities are to be completed for

raising the loan, which requires a lot of time so the procedure of
raising the
loan should be simplified to some extent.
Banks can adopt few qualitative techniques to educate the borrower

about its lending policies.
Bank can start to provide ATM facility .
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QUESTIONNAIRE
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QUESTIONNAIRE FOR CUSTOMER
M/S. :
Address :
Phone :
Dear Customer
It has always been our earnest endeavor to serve you better. The following
questionnaire is aimed at satisfaction level. You are requested to respond fairly to
the questions and guide us in developing strategies for serving you better.
1) How long you have been banking with The Muslim Co-Operative Bank?
a.
1 year
b. 1-5 years
c.
5-10 years
d. Not at all
2) Are you aware of the different loan schemes provided by the bank?
a. Yes
b. No
6
3
3) What interest rates do you suggest for the maximum loan amount(15 Lakhs)?
a. 6-7% b.
8-10%
c. Agree with existing
4) How do you rate the attitude of bank officials towards you while making
transactions?
a. Excellent
b. Good
c. Satisfactory
d. Poor
5) If you are aware of the loan scheme offered by the bank and desire to avail the
facility of the scheme but have not availed so far, what is the reason?
a. Indifference of the branch people

b. Complicated formalities
c. Slow pace of processing
6
4
BIBLIOGRAPHY
6
5
BIBLIOGRAPHY
NAME OF THE BOOK
NAME OF THE AUTHOR
EDITION
Financial Management
I. M. Pandey
6th
Marketing of banking services
Lewis h. Haney
3rd
Marketing Management
Philip Kotler
4th
ANNUAL REPORT OF THE MUSLIM CO_OPERATIVE BANK LTD.
6
6
ANNEXURE
Statement showing financial position of
st
The Muslim Co-Operative Bank Ltd. as on 31 March
Name of The Bank
Head Office Address
Date Of Registration
Date & No. Of RBI License
Jurisdiction
Items
No. of Branches including
Head Office
Membership Regular
Nominal
Paid Up-Share Capital
Total Reserve And Funds
Deposits
Saving
Current
Fixed
Advances
Secured
Un-Secured
Total % of Priority sector
Total % of Weaker Section
Borrowings
D.C.C.
M.S.C.
Others
Investments
D.C.C.
M.S.C.
Others
Overdue Percentage
RBI Grade
Audit Classification
Profit For The Year
Other Staff
Sub Staff
Total Staff
Working Capital
The Muslim Co-Operative Bank Ltd.

633 Raviwar Peth PUNE-411002
th
No. 7000 Dated 25 May 1931
th
UBD-MH-411/P Dated 18 Nov. 1984
Pune, Solapur, And Ahmednagar District ,
Greater Mumbai (Municipal Limit), Nasik,
Thane
st
As On 31 March 2008 (Rs.In Lacs.)
19
24300
2498
597.40
4440.55
10823.52
4344.74
11752.47
12469.27
401.56
88.85%
15.25%
NIL
NIL
NIL
11016.00
5.00
6774.51
8.67%
I
A
272.77
159
45
204
32815.99
6
7

FYP Loans Advances Muslim Co Operative Bank

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www.final-yearproject.com | www.finalyearthesis.

LOANS AND ADVANCES

ARIF INNUS MUJAWAR

MASTER OF BUSINESS ADMINISTRATION (MBA)

the MBA degree

Institute in partial fulfillment the requirements

Pune . He has worked

under our guidance and supervision .

it is an authentic effort put in by me.

ARIF INNUS MUJAWAR

I owe my profound gratitude to my Project guide Prof. Zafir for his

THE STUDY OF LOANS AND ADVANCES was the project undertaken as a

The project was carried out from 2

of June to 31 July 2008 under the guidance

Of Mr.Amir Usman Magdum (Branch Manger)

LOAN AGAINST MORTAGE

BACK GROUND OF THE STUDY

the land owner was very

greatly inflate the debt or would continue to

dishonest and would

add provisions to the debt long

way to maintain slave labor long

the United States.

rampant. individuals known as money lenders played an important part in the

would charge interest on

their loans at a rate

to the history of loans, if the moneylenders were

Modern banking loans

progressed quite a bit from the days of

arent out to simply get as much

money out of borrowers as

sectors provide a great service to the world economy,

regulated by both local and governmental policy so as to make sure

that nothing interferes with that service.

not for some of the oppression and misdealing

Through the history of

that was present

lending then fairness and opportunity that exists in

Indentured servitude in the past helped to establish modern banking by showing

OBJECTIVES OF THE STUDY

1 To assess the different interest rate on the different loans schemes

2 To study different loans provided by the bank.

3 To assess the total loans provided by the bank in a nutshell as well as

To study the process and formalities that needs to be completed

SCOPE OF THE STUDY

of cost effectiveness, you require finance is required.

Its not always possible to fund them through

internal sources. A delay of a

few days can cost millions.

options to raise money.

BENEFIT TO THE LENDER

The lender of the loan

gets the desired rate of

He/ she has

can plans his investment and can

returns on the investment to be utilized in the

interest on the amount

BENEFIT TO THE BORROWER

well as monthly installments according to your financial capacity .

business loan comes at a lower interest rate when compared

business loans . As these loans are taken against collateral,

default in repayment can put the commercial property at risk.

1 Due to strict confidently policy of the company the accounts

Accuracy of the data provided cannot be guaranteed which does