A

PROJECT REPORT

ON

“A STUDY OF RETAIL ASSET

CENTRE

( POWER DRIVE )” At AXIS

BANK LTD.

SUBMITED TO

PUNE UNIVERSITY

SUBMITTED TO

Sinhgad Management School

SUBMITTED BY

SANMAN PRAKASH MAHALE

MBA (2008-2010)

PROJECT GUIDE COMPANY GUIDE

1

Prof. VAITI SIR Mr. AVKASH SHRIVASTAVA

Operation Manager, Axis Bank

ACKNOWLEDGEMENT

The complete research project development was a wonderful experience and

innovative way of learning .For the complete accomplishment of my project I feel

obliged to extend my gratitude towards all those who have contributed to development of

this research project.

At the very first I express my attitude to Prof. KHEDKAR SIR

(Director,Sinhgad Management School) And Prof. Sapankumar(Co-ordinator,

SMS,Kondhapuri). Who has given me an Opportunity to undergo summer training at

Axis bank.Trambak Naka, Nashik.

I am very much thankful to Mr. MERZYAN PATEL (RAC Head, Nasik) for

permitting me to work in their organization and their valuable guidance I was able to

prepare my project report. I am very much thankful to Mr.Avkash Shrivastava (Operation

Manager) of Axis bank for his useful guidance and advice from time to time during my

project work. I also express my gratitude to all Staff of Axis Bank for their valuable

Cooperation during my summer training.

My special thank you to my Project Guide Prof. VAITI Sir for her excellence

guidance for successful completion of project work.

2

Place : Nashik SANMAN PRAKASH MAHALE

Date :

ABSTRACT OF PROJECT

.

My Research Project deals with’ Retail Asset Centre (Power Drive) at Axis

Bank’. In this report, I have studied details of Retail Asset Centre (Power Drive). Retail

Asset Center is related about all loans.

The report deals with introduction of project, Objective of my project to study the

Retail Asset Centre. I have used primary as well as secondary data for this Project. In

primary data I used observation method, Interview method & Experimentation method.

For secondary data I used Books, Internet, Annual Reports & Manuals. After that I

studied scope & limitations.

The report deals with company profile, bank profile, strength of bank,

organization structure, Industry profile& Product of Axis Bank. In Axis Bank four types

of product Power Home, Personal Power, and Loan Against Property & Power Drive.

The report deals with Power Drive. In that I studied all features, terms &

conditions, various schemes which are applied in Power Drive. In theory of power Drive

I studied about eligibility criteria & documaintation, Loan to value chart as well as

previous & current Rate of Interest (ROI).

The report deals with Procedure of Power Drive. In that I studied sales process,

credit appraisal process, banked process, disbursement process & collection & recovery

process.

The report deal with Power Drive Approval is related with all documentation

which is required for power Drive.

In this report I have written the conclusion of whole project as well as given some

suggestion & Recommendations to Axis Bank.

3

At the last report deals with Bibliography .I have collected all Project

Information from Newspapers, internet and Auto Loan file.

INDEX

Chapter No.

ContentsPageNo.

1 INTRODUCTION 1-5

1.1 Introduction 1

1.2 Objectives & Purpose of the project 2

1.3 Research Methodology 3

1.4 Scope & Limitations 5

2 COMPANY PROFILE 6-15

2.1 Bank Profile 6

2.2 Strengths of bank 9

2.3 Organizational Structure 10

2.4 Industry Profile 11

2.5 Product of Axis Bank 15

3 POWER DRIVE 16-34

3.1 Features of Power Drive 16

3.2 Various Concept of Power Drive 22

4 PROCEDURE OF POWER DRIVE35-49

5 POWER DRIVE APPROVAL50-71

6 CONCLUSION 72

7 SUGGESTIONS AND RECOMMENDATIONS73-74

4

8 BIBLIOGRAPHY 75

5

CHAPTER NO. 1

1.1 INTRODUCTION

1.2 OBJECTIVES OF THE PROJECT

1.3 RESEARCH METHODOLOGY

1.4 SCOPE AND LIMITATIONS

6

1.1 INTRODUCTION

Executive Summary

I have done my project on the topic a study of Retail Asset Center [POWER DRIVE]At Axis Bank Ltd.

Purpose

To make my self abreast of this segment in the industryTo study the scope of this segment for the future .

LOAN PROPOSAL SYSTEM

A loan proposal appraisal system is by far the heart of procedure, which is

followed before any loan is granted. In this aspect basically the valid extracts are

taken out from the given reports and data that enables any credit officer to take

decision regarding the finalization of loan proposal. Credit appraisal system is a

summery of extracted records regarding the verifications made towards the profile

of the applicant.

It is presentation of report in suitable format, which easily reflects the eligibility

of a loan proposal. Credit appraisal system can be enforced to take appropriate

decisions regarding the loan proposal viz. tenor, funding, eligibility, EMI etc.

Credit appraisal system is conclusive report, which enables any Credit Officer in

taking the lending decisions according to the norms and policies of organization.

7

1.2 OBJECTIVES OF THE PROJECT

To study the retail assets center in the organization.

To understand the procedure followed while sanctioning the loans.

To study the various types and categories of loan.

To study the all documents required for power drive.

To understand the workflow of Auto loan product.

To study the processing charges for various segment.

To study Rate of Interest (ROI) for different categories of loan.

8

1. 3 RESEARCH METHODOLOGY

Data constitutes the subject matter of analysis. The relevance, adequacy and

reliability of data determine the quality of study. Data form the basis of hypothesis

Testing. They are the basic input for constructing measurement scales. The entire

scientific process of measurement, analysis, testing and inferences depends upon the

Availability of relevant and accurate data. Data is primarily of two types:

DATA COLLECTION METHODS

PRIMARY DATA: -

Data that is collected for the specific at hand is called as Primary Data. The

collection of primary data is costly and time consuming. It calls for greater planning and

co-ordination. Collection of primary data requires deploying more manpower. In

situations where it is impossible to use the secondary keeping in view the requirements of

the study, or in cases where there is no secondary data available, the only way out is to

collect Primary data.

Primary data are those that are collected a fresh and for the first time and this

happen to be original in character. There are several methods of collecting primary data.

1. Observation method

2. Interview method

3. Experimentation method

9

SECONDARY DATA: -

Secondary data may be defined as data that has been collected earlier for some

purpose than the purpose of the present study. Secondary sources of data provide a

wealth of information to the researcher. It often obviates the need of primary data

collected and saves valuable time, effort and money. Even where subsequent primary

data collected is required; an analysis of secondary data enlightens the researcher

regarding many aspects of the study and gives contextual familiarity for primary data

collected. It thus provides rich insights into the research process.

Secondary data means data that are already available the researcher refer to data

which have been already collected and analyze by another person. The secondary data

generally used are

1) Books.

2) Internet.

3) Annual Reports.

4) Manuals.

10

1.4 SCOPE AND LIMITATIONS

SCOPE

This project helps in detail understanding of power Drive.

It gives the information about varies types of loan and categories of loan.

It gives the information about procedure followed while sanctioning the loan.

It gives the information about of required document for Power Drive.

This project helps in understanding the workflow of Power Drive product.

It gives the information of processing charges for various segments.

This project helps understanding the Rate of Interest (ROI).

LIMITATION

Auto loan is very difficult and timely process. So it is impossible to learn all

things in detail in short period.

To study all documents relating to Power Drive is require for project and practical

Knowledge but organization do not disclose their private information.

11

CHAPTER NO. 2

2.1 BANK PROFILE

2.2 STRENGTHS OF BANK

2.3 ORGANIZATIONAL STRUCTURE

2.4 INDUSTRY PROFIL

2.5 PRODUCT OF AXIS BANK

12

2.1 BANK PROFILE

UTI Bank was the first of the new private banks to have begun operations in

1994, after the Government of India allowed new private banks to be established. The

Bank was promoted jointly by the Administrator of the specified undertaking of the Unit

Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC) and other four PSU insurance companies, i.e. National

Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental

Insurance Company Ltd. and United India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rest. 358.56 cores with the public

holding (other than promoters) at 57.60%.

The Bank's Registered Office is at Ahmadabad and its Central Office is located at

Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices

and Extension Counters. The Bank has a network of over 2854 across India

ATMs providing 24 hrs a day banking convenience to its customers. This is one

of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to

adopting the best industry practices internationally in order to achieve excellence

13

PROMOTERS

Axis Bank Ltd. has been promoted by the largest and the best Financial Institution

of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI

contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries

contributing Rs. 1.5 crore each

SUUTI - Shareholding 27.11%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act,

1963, with a view to encourage savings and investment. In December 2002, the

UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of

Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the

bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February

2003. In accordance with the Act, the Undertaking specified as UTI I has been

transferred and vested in the Administrator of the Specified Undertaking of the

Unit Trust of India (SUUTI), who manages assured return schemes along with

6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59

crores.

The Government of India has currently appointed Shri K. N. Prithviraj as the

Administrator of the Specified undertaking of UTI, to look after and administer

the schemes under UTI - I, where Government has continuing obligations and

commitments to the investors, which it will uphold.

14

Board of Directors

The Bank has 10 members on the Board. Mrs. Shikha Sharma is the

Chairman and CEO of the Bank.

The members of the Board are :

Mrs. SHIKHA SHARMA Chairman & CEO

Shri N.C. SINGHAL Director

Shri A.T. PANNIR SELVAM Director

Shri J. R. VARMA Director

Dr. R.H. PATIL Director

Smt. RAMA BIJAPURKAR Director

Shri. R.B.L. VAISH Director

Shri. M.V. SUBBIAH Director

Shri. RAMESH RAMANATHAN Director

Shri. K. N. PRITHVIRAJ Director

15

2.2 STRENGTHS OF BANK

STRENGTHS OF AXIS BANK LTD

The vision of is validated by its strength, which are as following:-

UTI Bank Established in Dec,1993

Bank work fully computerized system.

Well connected to contact and customer network of Axis Sales Ltd (Subsidiary of

Axis Bank Ltd). Customer walks into Axis Sales Ltd and meets the Sales

Executive. Auto loan facilities available and franchisees/Agencies also take well

efforts for introduces and recommending the customers Axis Auto Loan

schemes/products.

At the end of March 2009, the Bank increased its reach to 405 cities, towns and

villages across the country through 671 Branches & Extension Counters and 2764

ATMs

Deposit currently stands at over Rest. 87,000 crores with over 83 lakh accounts

Excellent reputation for prompt repayment comparing to Axis Banks (RAC)

competitors.

Wide rural network find Axis Bank Ltd in a place that customers even know

existed. Nationwide network of branches

Customers are assured of quick service. There have been situations in which Axis

Bank Ltd have been sanctioned. Loans within five hours.

16

2.4 INDUSTRY PROFILE

A PROFILE OF INDIA'S BANKING INDUSTRY

OVERVIEW:

India has a strong and vibrant banking sector comprising state-owned banks,

private sector banks, foreign banks, financial institutions and regional banks including

cooperative banks, rural banks and local area banks. In addition there are non-banking

financial companies (NBFCs), housing finance companies, Nidhi companies and chit

fund companies which play the role of financial intermediaries.

Since the launch of the economic liberalization and global programme in 1991,

India has considerably relaxed banking regulations and opened the financial sector for

foreign investment. India is also committed to further open the banking sector for foreign

investment in pursuance to its commitment to the World Trade Organization (WTO).

As monetary authority of the country, the Reserve Bank of India (RBI) regulates

the banking industry and lays down guidelines for day-to-day functioning of banks within

the overall framework of the Banking Regulation Act, 1949, Foreign Exchange

Management Act, 1999 and Foreign Direct Investment (FDI) policy of the government.

STATE-OWNED BANK -

The Indian banking sector is dominated by 28 state-owned banks which operate

through a network of about 50,000 branches and 13,000 ATMs. The State Bank of India

(SBI) in the largest bank in the country and along with its seven associate banks has an

asset base of about Rs. 7,000 billion (approximately US$150 billion). The other large

public sector banks are Punjab National Bank, Canara Bank, Bank of Baroda, Bank of

India and IDBI Bank.

17

The public sector banks have overseas operations with Bank of Baroda topping

the list with 51 branches, subsidiaries, joint ventures and representative offices outside

India, followed by SBI (45 overseas branches/offices) and Bank of India (26 overseas

branches/offices). Indian banks, including private sector banks, have 171 branches/offices

abroad.

SBI is present in 29 countries followed by Bank of Baroda (20 countries) and

Bank of India (14 countries). Private sector banks India has 29 private sector banks

including nine new banks which were granted licenses after the government liberalized

the banking sector. Some of the well known private sector banks are ICICI Bank, HDFC

Bank and Inducing Bank. Yes Bank is the latest entrant to the private sector banking

industry. In terms of reach the private sector banks with an asset of over Rs 5,700 billion

(about US$124 billion) operate through a network of 6,500 branches and over 7,500

ATMs. Foreign banks As many as 29 foreign banks originating from 19 countries are

operating in India through a network of 258 branches and about 900 ATMs. With total

assets of more than Rs 2,000 billion (about 44 billion US dollars) they are present in 40

centers across 19 Indian states and Union Territories. Some of the leading international

banks that are doing brisk business in India include Standard Chartered Bank, HSBC

Bank, Citibank N.A. and ABN-AMRO Bank. In addition, 31 foreign banks (as on

September 15, 2006) belonging to 14 countries were operating in India through their

representative offices.

GROWTH OF THE INDIAN BANKING SECTOR

The Indian banking sector is growing at a fast pace along with the Indian

economy. In this age of globalization, foreigners are also making investments in India

and so Indian banks are planning global strategies. Thanks to liberalization, that the

Indian banks have been able to make a mark for themselves in the world map. The degree

of leverage of Indian banks has increased to 15.8% at the end of March 2007.The overall

banking industry's business has grown to US$ 1172 billion by he end of March 2007.

18

PROGRESS OF COMMERCIAL AND PRIVATE BANKS

The commercial banks have made tremendous progress with respect to its

profitability, capital adequacy, risk management etc. The private banks too are playing an

important role in the Indian banking industry. The private banks are growing at a rate of

35% per annum. As a result the share of the private banks has increased to nearly

16%.The limit of FDI has also been increased from 49 % to 74% in the private banks.

PROSPECTS AND ACHIEVEMENTS OF INDIAN BANKS

But still there is huge potential in the Indian banking sector. India has the second

largest financially excluded house holds (about 135 million) and it is expected that nearly

60 million house hold will be added in India's bankable pool by 2009. So it is quite clear

that the banking industry is going to grow very rapidly. Indian banks are also very

advanced in terms of technology and have vast network of branches. Nine Indian banks

have made their mark in the list of top 50 Asian Banks. The leaders are HDFC and ICICI

bank. State Bank of India (SBI) was the top loan arranger in the Asia - Pacific region in

2007 and Indian banks were the top provider of educational loans in 2007.

FINANCE SECTOR - INDIAN FINANCE SECTOR

GROWTH OF THE INDIAN FINANCE SECTOR

The Indian finance sector is on a roller coaster ride. The Indian stock market

crossed 21,000 mark and Nifty 6,000 for the first time. This was because of the fact that

the investors are interested in the Indian stock market and they are interested in investing.

This sector is also growing because new products and services are being offered to the

people. Wealth management revenues are expected to rise to 37% by 2012. The bygone

year proved to be a golden year for the Indian stock market. It emerged as the third

largest performing market in the world. The Bombay stock exchange also had the highest

ever absolute gain of 6500 points.

19

FINANCE SECTOR OF INDIA IN 2007

The year 2007 was also a defining moment for the private equity market which

was chosen as the most preferred mode of fund mobilization. India also topped the Asia

private equity in 2007. India has also emerged as the fastest growing market in the Asia -

Pacific region for stocked finance. It also has a potential market for domestic insurance in

structured finance market. India is also attracting people to invest in mutual funds. The

Indian mutual funds industry is expected to grow at a rate of 30% in the next three years.

So if you want to make your fortunes then surely invest in the financial sector of India.

20

2.5 PRODUCTS OF AXIS BANK

PRODUCTS:-

POWER DRIVE

PERSONAL POWER

LOAN AGAINST PROPERTY

LOAN AGAINST SHARES

POWER HOME

21

CHAPTER NO. 3

POWER DRIVE

CAR LOAN it is a credit facility or loan taken for the purpose of purchase a new car.

Car Loan are provided based on the on road car value, mainly quotation given by car showroom with the registration value of the car. Buyer can apply for a car loan even before him select his car. The car loan amount would be sanctioned or approved for

borrower, based on his repayment capability. Interest rates based suited An important factor that goes in to EMI [Equated Monthly Installment] calculations is the interest rates,

which may vary from bank to bank, so applicant do compare them. Also do a complete and detail analysis of the various options like the interest rates i.e. fixed and floating rate of interest. Loan praposal apprisal systen is by far the heart of procedure, which is followed before any loan is granted. In this aspect basically the valid extracts are taken out from the given reports and data that enables any cedit officer to take decision regarding the finalization of loan praposal. Credit apprisal system is a summery of extracted records regading the verifications made towards the profile of the applicant.

22

3.1 FEATURES OF POWER DRIVE

3.2 THEORY OF POWER DRIVE

23

3.1 FEATURES OF POWER DRIVE (AUTO LOAN)

1. Competative interest rate

2. On road funding

3. Doorstep services

4. Part payment facility

5. Special scheme for customer

POWER DRIVE (AUTO LOAN)

A car loan that lets you fly

Is your dream car still a dream?

Axis Bank's Power Drive will help realize your dream. With some of the world's

finest cars now available in India don't let the price tags discourage you. Power Drive

will bridge that distance by financing a major part of the cost of your new car. So,

you don't have to put the brakes on your ambition.

TERMS & CONDITIONS :

Loan value calculated as per the on-road-price of the vehicle

Attractive interest rates

LTV of up to 85% of the on-road-price on selected models

Loans available for salaried and self employed individuals proprietorships and

partnership firms

Special schemes for Axis Bank Salary and Priority accountholders

No income proof schemes available

Loans offered from Rs. 1 lac onwards

Loans tenure from 1 year to 7 years.

24

ELIGIBLE SEGMENTS

The following applicants can apply for the loan:

1. Salaried Individuals

2. Self-employed individuals

3. Proprietorships

4. Partnerships

5. HUFs (with prior clearance of CO)

6. Trusts

All applicants must be either Resident Indians or Non-Resident Indians

For NRI cases, a blood related (father/mother/wife/children) Resident Indian, as

co-applicant is required. Cheques can be taken from either the Resident co-

applicant’s account or the NRI’s Resident account.

For all HUF cases, the Karta of the HUF must be taken in as co-applicant in his

individual capacity

Directors (other than working Director employed in professional capacity) cannot

apply as salaried employee unless the Balance Sheet of the company is submitted

along with the personal ITR of the applicant. They would be considered under the

self-employed category.

In case of Trusts, the following documents must be collected in addition:

1. Certified True Copy of the Trust Deed

2. Copy of the resolution passed by the Board of Trustees/Directors authorizing

borrower

3. Certified true copy of the Registration Certificate from Charity

Commissioner / Societies Registration Act

25

SCHEMES

Banks would be offering the following schemes under the Auto loans product:

1. Vanilla Product

2. Salary Account Product

3. Priority Account Product

4. No Income Proof Product

5. Repayment Track Record Product

6. Credit Card Product

7. Gross Receipts Product

8. Defense Personnel Product

9. Special Product for working Women

26

PRODUCT-WISE FEATURES

1. VANILLA PRODUCT

All category cars can be funded

LTV as per grid would apply

All documents as defined under documentation would have to be collected

Last 3 month’s bank statements to be collected and to be verified for negative

traits like cheque bounces, minimum balance charges, penal interests etc.

Deviations would be permissible as per deviation grid

6 months bank statements to be collected from cash salary cases. No deviations

permitted for cash salary.

Eligibility Criteria:

For Salaried:

1. 3 times Gross Salary p.a. OR (30 times of average net salary of 3 months for cases

Where Form-is not available)

2. EMI must not exceed 50% of net salary

3.

For Self-employed:

1. 6 times gross Income p.a.

2. The RAC Head must ensure that deviation of non-availability of Form-16 must not be taken for more than 5% of the total portfolio.

2. SALARY ACCOUNT PRODUCT

27

All category cars can be funded under this product

All customers having their Salary A/c with UTI Bank since the past 3 months will

qualify under this scheme

All documents as defined under documentation would have to be collected (other

than income documents)

Deviations would be permissible as per deviation grid

Eligibility:

1. 30 times Average Net Salary Credited during last 3 months

2. EMI must not exceed 50% of net salary

Benefits:

100% Waiver of Processing Fees

Waiver of Salary Slips & Bank Statements

documents & bank statement

3. NO INCOME PROOF PRODUCT

Only Category A, B, C cars can be funded under this product

The product can be offered to all eligible applicants – Salaried, Self-employed,

Partnership Firms, Trusts and HUFs

LTV would be as follows:

28

CATFor Tenure < 36 months

For Tenure > 36 months, <= 60 months

Category A 75% 70%Category B 75% 70%Category C 60% 55%Category D NA NA

Eligibility:

The average bank balance should be at least 1.5 times the EMI. Loan amount to

that extent can be granted

29

4. REPAYMENT TRACK RECORD PRODUCT

Only Category A, B, C cars can be funded under this product

In addition to the documents mentioned under documentation, the sanction

letter of the original loan (repayment track of which is considered) along with

the repayment schedule needs to be collected.

This loan should have been for a minimum loan amount of Rs. 100000/- for

Category A/B cars and Rs. 300000/- for Category C cars.

30

VERIOUS CONCEPT OF POWER DRIVE

Branch/Retail Asset Centre (RAC)-

Means the office of the Bank at the place mentioned in the schedule & where the

loan is disbursed & shall include any other Branch/RAC where the loan account is

maintained or transferred to any time at the sole discretion of the Bank.

Loan-

Loan means loans granted by the bank in terms of this agreement and shall also

mean to include the principal amount of loan and all dues outstanding there under if

context so requires.

Interest Rate-

Interest Rate means the rate at which the bank shall compute and apply interest on

the loan, as stated in the schedule or as may be amended from time to time by the

Bank.

Penal/Default Interest Rate-

Means the rate at which Bank shall compute &apply interest on all amount not

paid when due for payment (or reimbursement) by the Borrower to the Bank, as

stated in the schedule or as may be amended from time to time by Bank.

Vehicle-

Vehicle means the vehicle hypothecated to the Bank more particularly described

in the schedule, for the purchase of which, the loan has been granted by the Bank.

31

Equated Monthly Installment (EMI)-

Shall mean the amount payable every month by the Borrower to the Bank

comprising of interest, or as the case may be, principle & interest calculated on the

basis of monthly rests at the rate applicable as stated in the schedule and is rounded

off to the next rupee.

32

POWER DRIVE:

Eligibility

A) Salaried Individuals

Any individual who is in permanent service in Government or reputed companies

Any individual whose work-experience is minimum 2 years of total employment

The applicant in all the cases should be above 21years to 60 years of age at the

time of loan commencement and up to the age of superannuation

B) Self Employed Individuals/Proprietary Concerns

Any individual filing Income Tax returns can apply

Any individual whose work-experience is minimum 3 years in Business

The applicant in all the cases should be above 21 years of age at the time of loan

commencement and up to 65 years or less at the time of loan maturity

C) Partnership Firms/Trusts

Any firms whose minimum turnover of Rs.4.5 lacs

Any firms whose work-experience is minimum 3 years in Business

The applicant in all the cases should be above 21 years of age at the time of loan

commencement and up to 65 years or less at the time of loan maturity

33

POWER DRIVE

Loan Amount

Loan Limits on POWER DRIVE

Minimum – Rs.1 lace

Maximum – Depend on car amount

( No maximum limit in Auto Loan)

CHARGES:

The following charges would be applicable:

I. Processing Fee Rs. 3250

II. Stamp Duty – At actual

III. Cheque bouncing charges Rs. 500/-

IV. Late Payment Penalty: 2% per month

V. Cheque swapping charges Rs. 500/-

VI. Loan cancellation/Re-booking charges Rs. 1000/-

VII. Statement charges Rs. 500/-

VIII. Duplicate Repayment Schedule charges Rs. 500/-

IX. Duplicate No dues Certificate/NOC Rs. 500/-

34

REPAYMENT MODE:

Repayment would be by way of:

Post Dated Cheques (PDCs): shall mean the cheques issued by the borrower to

match the due date of each installment.

Standing Instructions (SI): shall mean the written instructions issued by the

borrower to the bank to debit the account to borrower maintainined with bank for

facilitating payments of EMIs

Electronic Clearing Cheques (ECS): shall mean the debit clearing service

notified by Reserve Repayment must be through the same bank account which has

been verified at the time of sanction.

PROCESSING FEES FOR AUTO LOAN

Category of car

Existing Processing Fee Processing Fee

A Min of Rs.2000+1%of the loan amt

Min of Rs.2500+1%of the loan amt

B Min of Rs.2000+1%of the loan amt

Min of Rs.3000+1%of the loan amt

C Min of Rs.2500+1%of the loan amt

Min of Rs.3000+1%of the loan amt

D Min of Rs.3000+1%of the loan amt

Min of Rs.3500+1%of the loan amt

35

t.

ELIGIBILITY CRITERIA & DOCUMENTATION

Purpose Salaried

Self -Employed

Individuals

/Proprietary concerns

Partnership Firms/Trusts

Age

Minimum 21 years,

Maximum up to 58 years

or 60years(age of

superannuation)at the time

of loan maturity

Minimum 21 years,

Maximum 65 years at the

time of loan maturity

Loan executing partner/trustee (as

applicable)to confirm to these

norms: Minimum 21 years,

Maximum 65 years at the time of

loan maturity

Loan

amountMinimum Rs.1,00,000/- Minimum Rs.1,00,000/- Minimum Rs.1,00,000/-

TenureMinimum1 year &

Maximum7 years

Minimum1 year &

Maximum7 years

Minimum1 year & Maximum7

years

Income

Norms

Minimum Rs.1,00,000/-

gross annual income for

category A/B cars &

Rs.2,00,000/- for category

C/D cars (Gross annual

income is the gross salary

as reflected in the form-16

before any deduction)

Minimum Rs.60,000/- for

category A/B cars &

Minimum Rs.1,00,000/-

for category C/D cars

(Gross income: Net Profit

after tax+ Depreciation)

Minimum Rs.60,000/- for category

A/B cars & Minimum

Rs.1,00,000/- for category C/D

cars (Gross income: Net Profit

after tax+ Depreciation)

Work-

experience

Minimum 2 years of total

employment

Minimum 3 years in

BusinessMinimum 3 years in Business

Turnover NA NAminimum turnover of Rs.4.5 lacs

Telephone

Landline

Residence/Postpaid

mobile connection

Landline

Residence/Postpaid

mobile connection

Landline Residence/Postpaid

mobile connection of loan

executing partner /trustee(as

applicable

36

Proof of

identity

Passport/Voters

Card/Driving License

with photograph/PAN

card

Passport/Voters

Card/Driving License

with photograph/PAN

card

Copy of Partnership

Deed/Memorandum & Articles of

Association/Certified true copy of

Trust Deed (as applicable) & the

following documents required for

the loan executing partner/trustee:

Passport/ Voters Card/Driving

License with photograph/PAN

card

Proof of

income

Latest salary slip showing

all deductions and Latest

Form16/Income Tax

Return(Form 16

Latest Income Tax Return

and Computation of

income

Audited Balance Sheet, Profit

&loss Account for last 2years

along with the latest 2Income Tax

Return

Address

Proof(of

the residing

city)

Ration Card/Latest

Electricity Bill/Latest

Telephone

Bill/Passport/Latest Credit

Card Bill/Driving License

Ration Card/Latest

Electricity Bill/Latest

Telephone

Bill/Passport/Latest Credit

Card Bill/Driving License

Latest Electricity Bill/Latest

Telephone Bill/Shop

Establishment Act Certificate/SSI

Registered Certificate/Sales Tax

Certificate

Signature

Verificatio

n

Passport Copy/ Driving

License with

photograph/Bankers

Verification

Passport Copy/ Driving

License with

photograph/Bankers

Verification

Bankers Verification

Additional

Documenta

tion

NADeclaration from

Proprietor

Authority letter signed by all

partners/Board Resolution for

trusts

37

DEALERS OF CARS IN NASIK OF AXIS BANK

Dealers Name Manufacturer

Automotive Manufacturers Pvt. Ltd Maruti

Heak Auto Pvt. Ltd Skoda

Jitendra Motors Pvt. Ltd Mahindra & Mahindra

Jitendra Wheels Pvt. Ltd GM

Moharir Ford Ford

Panchavati Automobile Pvt. Ltd Hyundai

Seva Automotive Pvt. Ltd-Nasik Maruti

Shaan Cars Pvt. Ltd Maruti

Sterling Motors Tata

Ujjwal Automotive Pvt. Ltd Tata

Ujjwal Autowheels Pvt. Ltd Hyundai

Wasan Motors Pvt. Ltd Tata

Wasan Toyota Toyota

Cross Sell All Manufacturing

38

DOCUMENTATION OF POWER DRIVE

Pre-approval Documents

Age proof

2. ID proof

3. Application form

4. Photograph

5. Residence proof

6. Income proof

7. Bank statement

8. Signature verification proof

9. Proforma invoice

Post Sanction / Pre Disbursement Documentation

1. Agreement duly signed along with RTO set

2. Post Dated Cheques (PDC s) / ECS form / Standing Instruction (SI) request

3. Margin

39

LOAN TO VALUE (LTV) GRID & CATEGORY FOR CAR LOAN AS ON 19TH JAN 09

Company Models & its variants

CAT % LTV up to 36 months

% LTV up to 60 months

% LTV up to 84 months

Maruti Maruti800 A 85% 80% 75%Omani A 80% 75% NAZen B 85% 80% 75%Alto B 85% 80% 75%Wagon R B 85% 80% 75%Versa C 75% 65% NAEsteem C 80% 75% 70%Baleno C 80% 70% 65%Vitara D 75% 70% 65%A-Star B 85% 80% 70%Swift B 85% 80% 75%Swift Dzire C 85% 80% 65%SX4 C 85% 80% 65%

Hyundai Santro B 85% 80% 75%I10 B 85% 80% 75%Getz B 85% 80% 75%I20 B 85% 80% 70%Accent C 80% 75% 70%Verna C 80% 75% 65%Elantra C 75% 70% NASonata D 80% 75% 65%Tucson D 70% 65% NA

Mahindra Bolero C 75% 65% NAScorpio C 80% 70% 65%Xylo C 80% 70% NALogan C 80% 70% NA

Mercedes Mercedes D 75% 70% 60%Mitsubishi Cedia C 80% 70% NA

Lancer C 80% 70% NAMontero D 65% NA NAPajero D 80% 70% NAOutlander D 70% 65% NA

Skoda Fabia B 85% 80% NACombi D 65% NA NAOctavia D 80% 75% NALaura D 75% 70% NASuperb D 75% 70% NA

40

Tata Sumo C 80% 65% NASafari C 75% 65% 60%Indica B 85% 80% 75%Indigo C 80% 75% 70%Marina C 75% 70% NA

Toyota Corolla D 80% 75% 70%Camry D 80% 75% 65%

Innova C 85% 75% 70%Land Cruiser Prado

D 75% 70% NA

GM Chevrolet Aveo C 80% 75% 65%

ChevroletSpark B 85% 80% 75%Chevrolet U-VA

B 80% 75% 65%

Chevrolet Optra C 80% 75% 65%

SRV C 80% 75% NATavera C 80% 75% NACaptiva D 70% 65% NA

Fiat Palio B 80% 65% NALinea C 75% 70% NAPetra C 75% 65% NAFiat 500 C 50% NA NA

Ford Ikon C 80% 75% NAFiesta C 80% 75% 65%Fusion D 75% 70% NAEndeavour D 75% 70% NA

Honda City C 85% 75% 70%Accord D 75% 70% 65%Civic D 80% 75% 70%CRV D 75% 70% NA

Nissan Teana D 75% 70% 65%X-Trail D 75% 70% 65%

Volkswagen Passat D 75% 70% NAVW Jetta D 75% 65% NA

Audi Audi D 75% 70% NABMW BMW D 75% 70% NALand Rover Discovery D 70% 65% NAOther Other D 65% NA NA

41

Current (New) RATE OF INTEREST (ROI) STRUCTURE

ROI STRUCTURE FOR DEALER/DSA SOURCING

CAR CATEGORY Up to 35 months 36-60 months 60-84 months

CAT A 11.10% 11.25% 11.50%CAT B 11.25% 11.50% 11.75%

CAT C 11.50% 11.75% 11.95%CAT D 11.75% 11.95% 12.15%

42

CHAPTER NO. 4

PROCEDURE OF POWER DRIVE

STEP SALES PROCESS: (POWER DRIVE)

43

The sales process is a series of sequential steps, which helps

to increase the possibility of completing a sale successfully.

Customer

Step 3 Step 1

Scheme Step 4

2

Executive (AXIS SALES LTD)

44

APPRAISAL PROCESS :

Step 1 Customer

Step 3 Executive (AXIS SALES LTD)

Step 2

(Bank Credit Depts.)

Step 4

Branch Office Step 5 Step 5

45

Approve

rejected

46

CREDIT APPRAISAL PROCESS:-

Step 1 :-

This is first step of appraisal process that customer agrees to take loan from AXIS

BANK because he like loan scheme and satisfy him.

Step 2 :-

AXIS SALES LTD (Subsidiary of AXIS BANK)

AXIS SALES LTD field Executive gives all the case details to the Field Investigation.

For further process.

Field Investigation: -

Every case should be finalized only after a through field investigation is carried out so

that only ‘good customer’ are extended finance.

Step 3:- AXIS SALES LTD (Subsidiary of AXIS BANK)

Field Executive visits the customer’s home or office conducts the Field

Investigation and collects all the necessary documents which are required

for loan appraisal.

Step 4:-

AXIS SALES LTD (Subsidiary of AXIS BANK)

In fourth step Field Executive submits all the documents to the AXIS

BANK Branch Office for the purpose of keeping various records

Step 5:-

Branch Office checks the document for creditworthiness and can Approve or Reject the

proposal its depends upon the financial position of the costumer.

Approval of Proposal: -

Senior Field Executive can sanction up to maximum of one power home/power Drive

product per client only if authorized by Branch Manager.

Rejection of Proposal: -

Rejection should be communicated to the customer within two days after the Field Investigation Report (FIR)

FILE PROCESS FILE LOGIN WITH FIELD INVESTICATION REQUEST(MIS ENTRY) FIELD INVESTICATION FIRED CIBIL REPORT FILE CHECKING FOR QUIRIES(IF ANY) CHECK FI REPORT RCU FIRED(IF FILE COMPLITE WITH DOX) LAON CALCULATION (CAS PREPAIRE)/ELIGIBILITY GET SANCTION TO –{FI,RCU,CIBILREPORT IN FILE} ISSUE SANCTION LETTER COLLECT DISBUSMENT DOCUMENTS [POSTDATED

CHEQUES,LAON AGREEMENT ,SANCTION LETTER]

FINN ONE ENTRY [SOFT ENTRY] LOGIN TO OPERATING SYSTEM COLLECT ACKNOWLEDGEMENT

OPERATIONAL GUIDELINES

All the details asked for ,including the CPA login

number(login register/excel sheet to be maintained)

Incase the customer has existing relationship with AXIS

BANK then customer ID need to filled(check that customer had earlier applied for

loan & whether the case was sanctioned or rejected)

For prompt payment discount scheme cases a stamp to

affix: LNPPD Scheme &the SRAC name. Also mention incase its express loan.

47

BANK PROCESS:

AXIS BANK Branch (RAC Head)

Application Form

Performa Invoice Branch Accountant

Proof of Identity And Photographs

Agreement Book

PDC Checklist

48

Step 1 :-

In the Branch Credit Depts. Accountant/ Head verifies all

the documents, submitted by costumer and then decide whether the

loan should approve or not because all the documents must fulfill

the requirements of AXIS BANK

Step 2 :-

Branch Accountant at the Bank Branch Office checks all

documents for completion of proposal and decides EMI for that

particular loan proposal.

49

DISBURSEMENT PROCESS :-

Branch Office

Step 5 Payment Step 1

AXIS BANK LD

Step4 Invoice

Insurance Step 3 DEALERS Step 2

Consumer

50

COLLECTION AND RECOVERY PROCESS:-

The collection and recovery process can be broken up into four

stages they are as follow:

Stage 1 stage 2

Cheque Return Collection Stage 3 stage 4

Follow up & Repossess And Recovery Legal Action

51

Stage 1 (Collection):-

Branch office

Step 1 Step 1

PDC Cash / DD

Step 2 Step 2

Bank

52

Collection:-

Step 1 :-

Payment from the customer can be collected by Post Dated Cheque (PDC) or by Cash,

Electronic Clearing System (ECS), Standing Instruction (SI) or Pay Order as per the

customer demand.

Step 2 :-

The collected payments should be deposited into the Bank

Stage 2 (Cheque Return):-

Axis Bank Step 1

Axis Sales Ltd/AXIS BANK

53

Executive officer/Recovery Manager

Step 1 :-

Post Dated Cheque (PDC) bounces, due to unavailability of balance in

bank.

Bank sends Cheque Return Advice (CRA) to Axis bank credit Depts

/Recovery Officer.

Step 2 :-

Axis Credit Depts. officer/Recovery Field Executive checks Cheque

Return Advice and find out reason of cheque bounce and follow up

recovery process.

Stage 2 (follow up and recovery):-

Axis Sales Ltd Field Executive/Axis rec.Officer

54

Soft Bucket Hard Bucket (2-4 EMI) (More Than 5 EMI)CLASSIFY INTO TWO CATEGORIES:-

Soft Bucket:-

Customers who delay one or two installments due to some reason or Carelessness

from them.

Hard Bucket:-

Customers who paid no installments beyond initial down payment or some other

situations like...

Two EMI defaults in the first six months.

Four to Five or more than five EMI defaults in one year.

55

Stage 4 (Repossess & Legal Action):-

Customer Step 2

Step 1 step 4

Axis sales Field Executive

Step 3

Axis bank Branch Office Credit Manager/RAC Head

56

Step 1: -

A Customer of Axis bank refuses to pay installment at right time or may be

not ready to pay the remaining installments

Step 2: -

Axis Bank Finance/Credit Executive conducts two field visits and sends at

least two Registered Post Acknowledgement due to those customers who refuse to

pay the remaining installments.

Step 3: -

Repossesses the Car and informs the Branch. Repossession is to be initiated

only as the “last resort”. In other words emphasis should be on cash flow (recovery

of EMI).

When everything fails only then repossession should be taken as a final step.

Step 4:-

Customers who do not paid their installments regularly Axis Bank takes

legal action against the customer. It is a last and final step of recovery process.

57

58

CHAPTER NO. 5

POWER DRIVE APPROVAL

59

Appraisal Note Car Loan (CAS)Date: 13-May-09 Resi Add: Flat No.1 Jaydev Apt.Ganesh Nagar

Satpur ,NasikApp Name: Kailas Jadhav

Office Add:

Reliance Money88, MIDC, Ambad, Nasik

Co-App Name: NAApp Date of

Birth:15-3-1983

App Designation:

Dy.Manager-Manufacturing

Name of Company

Reliance Money Contact No.

97683521032

No. of years in Exp:

21 yrs Ex. Name -

Dealer Name: SEVA Motors Ltd. Sourcing DealerMonth

Feb- 09 Mar-09 Apr-09On Road Amount Ex-Showroom

Modal ALTO Lxi

CAT B

App Net Salary 23318 32998 35386 Asset Value 216259 216259

Note RTO 18200 NAInsurance 8527 NA

Total 23318 32998 35386 Octrai 0 NA

Discount 0 0Annual Present

Salary:424632 Total Asset Value 242986 216259

Loan Request 200000 200000Margin 42986 16259

Monthly Salary: 35386 LTV% 82. 31 92. 48

Less: Obligations (If<18 Months)

15530 Auto Shield(3 Years)

0

Net Salary 19856 Service Tax (10.30%)

0

Total Auto Shield: 0For Salaried Loan

Request200000 Loan Request 200000

Total Loan Amount 200000Net Annual

Income238272 Loan

Recomm.200000

Current EMI 6,452Monthly Salary: 19856 Tenor 36 Paying EMI ADV 6,452

Interest Rate 10.59% Interest Rate

10.59% Monthly Inc 19856

Tenor 36 EMI 6452 IIR 32.49%Applicant Age at End of Tenor 29 years

60

Calculation Sheet:

Feb- 09 Mar-09 Apr-09Net Salary 34418 57166 35386

Less:Med Reim. -24168

Leave Tra Allow. -11100

Net Adjusted Salary 23318 32998 35386

DEVIATIONS AUTHORITY MITIGANTSP.F.-Waiver by 1%:RAC Head Minimum P.F. of Rs.3250 will be collected.

Ltv deviation by 2.31%: RAC Head

61

STRENGTHS WEAKNESS

Good Income

Owned Residence

Processing Fees 3250

Service Tax 10.30%Foreclosure Charges 5%

Security Taken:Guranty/PDC/Check

Of FacilityNature Facility Power DriveVehicle Model Logan

Repayment Mode ECS/PDC

APPRAISAL NOTE OF CAR LOAN :-

This note is very important in all car loan documaintation. It is also called as

Credit Appraisal System ‘CAS’. This note makes by Credit Manager in Credit

Department. It includes all details of applicant name, address, and dealer name, his

personal official details, EMI, and calculation of given loan.

As per my analysis-

Kailas Jadhav has taken the car loan Rs.2, 00,000/-payment will be made in favor

of Dealer Sourcing. SEVA Motors Pvt. Ltd @12% interest rate for 36 months.

Applicant has applied under Vanilla Product Scheme.

As per bank condition under Vanilla Product Scheme Minimum age of applicant

is 21years & stability is 2 years. But this applicant is 46 years old & he is working

in Reliance Money as Di. Manager Manufacturing scince last 4.5 years

Repayment mode is ECS/PDC from HDFC BANK.

Applicant has purchased Alto Model which comes under categories B.In CAS Ex-

Showroom Price is Rs.216259/-but after RTO &Insurance Total Asset Value is

Rs.242986/-.Applicant has paid Margin money to Dealer Rs.42986/-.Bank has

paid loan amount to applicant Rs.2,00,000/-

Calculation of EMI-

As per chart of Rate of Interest (ROI) EMI for categories C for 36 months is

Rs.3226/-for Rs.1, 00,000/-

For Rs.1, 00,000/-EMI is Rs.3226/-

For Rs.2, 00,000/-EMI is?

2, 00,000 * 3226 =Rs.6452/-

1,00,000

62

As per Vanilla Product Scheme EMI must not exceed 50%of Net Salary.In this

case Net Salary is Rs.19,856/-

Rs.19, 856/- = Rs.9928/-

2

Here EMI is not exceeding 50% of Net Salary.

As per the IRR calculation sheet for Auto Loan Mr.Kailas has paid Margin money

to Dealer Rs.42,986/-In IRR calculation sheet IIr is 12% means Bank get interest

@12% but customer can see his Interest Rate 10.59%.Interest Rates are different

63

CREDIT SCORING SHEET:-

As per Credit Scoring Sheet bank calculated applicant scores as varies

information which is included in that sheet. In this sheet total score is 100 but when

applicant got more than 50 scores then he applied for auto loan. This sheet is for

salaried/self employed applicant.

In this case applicant is salaried and he got 70 scores out of 100 in all information.

So applicant has applied for Auto Loan.

As per Income Information applicant Net Salary is Rs.4,24,632/-.So he gots 25

scores under this Information.

As per LTV Information applicant gots 20 score because he has received LTV

above 80% and below 90%.

As per Residence Information applicant gots 15 score because he is living his

owned house.

Applicant has only post paid mobile not landline. So he gots 5 scores under this

Information.

Applicant is working in Reliance Money from last 4.5 years but not 5 years. So he

gots 5 scores under this Information.

64

SALARY SLIP: -

As per bank documentation rules Pay Salary Slip is must be necessary in Auto

Loan file processing. This slip takes from the applicant because we know his financial

information. How much he earned monthly income from his business. Which facility has

provided to applicant from his Organization. From this information manager can decide

applicant is capable for repayment of all loan which he has taken.

Above Pay Salary Slip we know that he is working in Reliance Money as

Dy.Manager Manufacturig scince last 4.5 years. Applicant got salary Rs.34, 418/-in

Feb.2009.As per bank condition Applicant salary must above Rs.1, 00,000/- for Vanilla

product. In this case his Annual Income is Rs.2,38,272/-.So applicant is applied for Auto

Loan

65

APPLICATION FORM:-

In Application Form has taken all detail information of applicant. We can know

from this form his name, loan amt, address of Residence & office, information of official

& banking, detail information of Co- applicant and many other information.

In this case we know that:-

Kishor Ram has taken the car loan Rs.2, 00,000/-payment will be made in favor

of Dealer Sorcing.Seva Motors Pvt Ltd @12% interest rate for 36 months.

He is living his self owned house with his wife and 1 child. Both are dependent on

the applicant.

Firstly applicant has not any vehicle.

An Mr.Akash Gupta & Mr.Mahesh Sharma reference has taken from Reliance

Money .both references of his friends.

66

RESIDENCE VERIFICATION REPORT –

Executive goes to that place where applicant actually currently lives. He takes the

interview of applicant neighbor & asks the various questions about his applicant. In this

case Applicant is living in self owned Row house.

Here neighbor report has received positive & all information has received from

applicant is good so applicant has sanctioned the Auto Loan.

67

BUSINESS VERIFICATION REPORT –

From this report we know the applicant business details information like his

industry name, work experience, designation, type of job and office.

In this case we know that applicant is working Reliance Money from last 4.5

years. His designation is Di..Manager in that company. Bank study all details because

repayment of that loan. Here applicant Business verification Report is very good so he

gots the loan from Axis Bank.

68

BANK STATEMENT -

Bank takes Bank Statement from applicant for purpose of see to his financial

position in bank. In this case applicant has firstly taken the Different loan from other

bank & now days he pays his Installment, EMI Charges from HDFC Bank.

In month of Dec.2008 applicant withdraw amount for purpose of EMI Rs.11355/-,

Installment of Rs.4175/-& deposit his salary Rs.35, 352/-

At the month of Dec. his balance is Rs.50,112.09/-

In month of Jan.2008 applicant withdraw amount for purpose of EMI Rs.11355/-

Installment of Rs.4175/-& deposit his salary Rs.35, 352/-

At the month of end is balance is Rs.35,081.00/-

In month of Feb.2008 applicant withdraw amount for purpose of EMI Rs.11355/-

Installment of Rs.4175/-& deposit his salary Rs. 34,418.00/-

At the month of end is balance is Rs.53,929.04/-

As per this statement his Credit Balance is more than Debit Balance. So we can

say that his bank statement is good so applicant is liable for take the Auto Loan.

69

CIBIL [Credit Information Bureau (India) Limited]-

USE OF CIBIL (Guidelines)

A. Process C

RE

To be fired for loan application

To be fired only by RAC Head/Authorized official

Application should be logged in

Report to be fired by preferably on :-

a) PAN Card Number , b)Passport Number

All Reports fired have to be entered in to the register

USE OF CIBIL (Guidelines)

B. Interpretation

How many loan are reflected have we factored all the obligation

Is there a delinquency in the any of the loan ?If yes ,How many days, Is it every

month

Credit Card over due

If more than two cards and each Card showing overdue for 30-60 Days than we

analysis of applicant Case with caution

All Reports fired have to be entered in to the register

List of Factors which Influence the score

Payment History

Outstanding Debt

Length of Credit History

Number and types of Credit Account

Utilization

Application for new Credit

70

In CIBIL we can know which loan has taken by applicant previous & their

installment, EMI amount. In this case applicant has taken the loan of credit card Rs.1,

000/-, housing loan Rs.12, 00,000/- & personal Loan Rs.1, 50,000/-

In CIBIL minimum score should 760 is essential but in this case applicant score is

822.This score is more because he has not bounces any cheque of installment which he

has taken the loan.

I have not joint this CIBIL in my Project because bank does not provide their

private information to others.

71

CHAPTER NO. 6

CONCLUSION

72

FROM THE ABOVE PROJECT & STUDY MADE ABOUT IN RETAIL ASSET

CENTRE OF AXIS BANK WE CAN CONCLUDE THAT -

Retail Asset Centre of Axis Bank deals with Personal Power, Home Loan, Loan

Against Property and Power Drive. This all centre related to only loans in Axis

Bank.

The Power Drive procedure is a lengthy one and sanctioning of a Loan depends

on many things like documents, Income of person and his status.

The amount of Loan to be sanctioned is mainly calculated under Credit Appraisal

System (CAS) which decides loan amount, percentage of LTV, Rate of Interest,

Tenure, Equated Monthly Installment (EMI), discount, Repayment Mode, fees

and charges.

During the study we came know about various documents to be fulfilled for

completion of the procedure of Power Drive.

The Project gives me the opportunity learns various types of loan in Axis Bank.

73

CHAPTER NO. 7

SUGGESTION AND RECOMMENDATIONS

74

The Company should expand more no. of offices in the rural areas to capture all places market :-

The number of Axis Bank offices in urban area. Axis Bank Finance should open

some new offices in rural area also so, that they can try to capture all places market.

Post Disbursal Supervision should be there:-

After giving loan to the client there should be proper supervision on client what

he does, whether he is earning the same amount, designation which he mentioned in

the document while taking loan or not.

Experts in the field of advance should be appointed for analyzing the

financial position of the client before approval of the loan:-

It is very important part as far as recovery process is concern if the client become

bankrupt after taking loan then repayment of the loan is not possible, so in that case

company should suffer loss & that’s why experts in the field of advance should be

appointed for analyzing the financial position of the client before approval of the

loan.

In minimum time Company should provide faster service provide of loan to their Applicant:-

Formalities like verification of various documents & sanctioning the loan, it takes

much more time for actual loan giving. Because of this time consuming process

costumer may turn to the another organization for taking or sanctioning the same

type of the vehicle loan, so it is better that Company should minimize and standardize

these time consuming process at certain point or at certain level to attract more and

more number of customers.

The recovery process of the given loans should be more emphasized and

very strict norms should be adopted for this purpose :-

75

After giving the loan, the recovery of that loan becomes very essential, so the

company should have to make some norms against recovery.

Some of the norms I really strict want to suggest to the Axis bank Finance are as

follows:-

The charges of penalty should increase, so the existing costumers should pay their

installments on time.

If the client fails to pay the preceding six installments of his loan, Axis Bank take

the possession of that vehicle and made auction sale for recovery of their loan

Hidden information should be clear to customer

76

CHAPTER NO. 8

BIBLIOGRAPHY

77

BIBLIOGRAPHY

Newspapers

1. The Economic Times

2. The Times of India

www.google.co.in

www.axisbank.com

Auto Loan File.

78