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A

PROJECT

ON

“A COMPARATIVE STUDY OF CAR LOAN BY TATA CAPITAL LTD. & OTHER

BANKS”

For the partial fulfillment of the requirement for the degree of 

MASTER OF BUSINESS ADMINISTRATION

(SESSION: - 2010 - 2011)

Under the Guidance of: Submitted by :

Mr. Mohit Singhal Vidhi Arya

(Assistant Professor) Roll no. 1033670042

 

Affiliated to Mahamaya Technical University, Noida

MTU Code 336

ACKNOLEDGEMENT

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If words are considered to be signs of gratitude then let these words convey the very

same. My sincere gratitude to TATA CAPITAL LTD. for providing me with an

opportunity to work with TATA CAPITAL LTD. and giving necessary directions on doing

this project to the best of my abilities.

I am highly indebted to Mr. Krishan Verma, (Branch Manager), who has provided me

with the necessary information and also for the support extended out to me in the

completion of this report and his valuable suggestion and comments on bringing out this

report in the best way possible.

I am also thanks to Dr. R. K. Jatley, Director  (REMTECH Shamli), who has sincerely

supported me with the valuable insights into the completion of this project. I extend my

heartfelt thanks to Mr. Abhishek Bagla, HOD, & Mr. Mohit Singhal to help me during

this project.

I am grateful to all faculty members of  Roorkee Engineering and Management

Technology Institute, Shamli and my friends who have helped me in the successful

completion of this project.

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DECLARATION

I am VIDHI ARYA, the student of M.B.A.of REM Tech. (affiliated to M.T.U.,

Noida). Hereby declare that the project report on the COMPARATIVE STUDY OF CAR

LOAN BY TATA CAPITAL LTD & OTHER BANKS.

It is my original work and has not been submitted by any other person.

I also declare that I have done my work sincerely and accurately even then if any

mistake or error had kept in I request to readers to point out these errors and me to

remove these errors for future.

(VIDHI ARYA)

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PREFACE

On the job training in business organization infuses among student senses

of critical analysis of the real managerial situations to they are exposed. This gives them

an opportunity to apply their conceptual, theoretical and imaginative skills to real life

situations and evaluate the results thereof.

The concept of summer training, which is there in curriculum of Business Management

Schools, serves two important purposes. Firstly, it gives the student the fair amount of 

insight of the problem faced by them. Secondly, this type of projects helps business

management students to get a first hand experience of the actual working conditions,

which otherwise is possible only when students the job Joining.

As a part of  MBA Program, student has to pursue a project duly approved by the

Faculty of Concerned area. I had the privilege of undertaking the project on “A

COMPARATIVE STUDY ON CAR LOAN BY TATA CAPITAL LTD. & OTHER

BANKS”

This report is account of what I learnt and experienced during my training and I have

tried to complete this report with as much perfection as possible.

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EXECUTIVE SUMMARY

In today’s corporate and competitive world, I find that banking sector has the

maximum growth and potential as compared to the other sectors. This growth potential

attracts me to enter in this sector and TATA CAPITAL Ltd. has given me the opportunity

to work and get experience in highly competitive and enhancing sector.

• The success story of good market share of different market organizations

depends upon the availability of the product and services near to the customer,

which can be distributed through a distribution channel.

• Marketing channels helps company in getting good market share and reach to

customer more fluently and for that all big giant in this sector of banking take help

of good marketing channels. Auto loan is a big demand in today’s era and

banking corporations also available in this sector.

• Marketing channels are the only way for a company of banking sector through

which policies and benefits of the company can be explained to the customer.

I had done my project under the guidance of my guide Mr. krishan verma (Branch

Manager), TATA CAPITAL Limited) whose guidance helps me in completing my

Project Work Successfully.

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INTRODUCTION

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Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is registered

with the Reserve Bank of India as a Systemically Important Non Deposit Accepting Non

Banking Financial Company (NBFC) and offers fund and fee-based financial services to

its customers.

We only do what’s right for you’

 

The Tata’s are amongst the most respected business houses in the world. Tata Capital

aims to bring the trust and expertise of the Tata’s to an economically and socially

relevant sector like financial services.

 

The essence of brand Tata Capital is encapsulated in our brand proposition – ‘We only

do what’s right for you'. The proposition reflects our strong resolve to deliver financial

solutions that are ‘right’ for our customers and the society at large.

 

Tata Capital seeks to build strong relationships with its customers and deliver superior 

and consistent customer experience across all products and touch-points.

 

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COMPANY PROFILE

The beginning of the Tata Group can be traced back to 1868, when Jamsetji 

Nusserwanji Tata established a trading company dealing in cotton in Bombay (now

Mumbai), British India.

This was followed by the installation of 'Empress Mills' in Nagpur  in 1877. Taj 

Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903.

Sir Dorab Tata, the eldest son of  Jamsetji Tata became the chairman of the

group after his father's death in 1904. Under him, the group ventured into steel

production (1905) and hydroelectric power generation (1910).

After the death of Dorab Tata in 1934, Nowroji Saklatwala headed the group till

1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata.

Tata Group is an Indian multinational conglomerate company headquartered in

the Bombay House in Mumbai, India. Tata Group is one of the largest companies in

India by market capitalization and revenue. It has interests in communications and

information technology, engineering, materials, services, energy, consumer products

and chemicals.

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The Tata Group has operations in more than 80 countries across six continents

and its companies export products and services to 80 nations. The Tata Group

comprises 114 companies and subsidiaries in eight business sectors, 27 of which are

publicly listed.

65.8% of the ownership of Tata Group is held in charitable trusts. Companies

which form a major part of the group include Tata Steel (including Tata Steel Europe),

Tata Motors (including Jaguar  and Land Rover ), Tata Consultancy Services, Tata 

Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata

Power , Tata Communications, Tata Sons, Tata Teleservices and the Taj Hotels.

The group takes the name of its founder, Jamsedji Tata, a member of whose

family has almost invariably been the chairman of the group. The current chairman of 

the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991 and is one of the

major international business figures in the age of globality. The company is currently in

its fifth generation of family stewardship. TATA Group's 114 companies are held by its

main company Tata Sons and the main owner of Tata Sons are various charitable

organizations developed and run by Tata Group. Out of which JRD Tata Trust & Sir 

Ratan Tata Trust are the main holders. About 65% ownership of Tata Sons which is the

key holding company of the other 114 Tata Group Company is held by various

charitable organizations.

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The 2009, annual survey by the Reputation Institute ranked Tata Group as the

11th most reputable company in the world. The survey included 600 global companies.

The Tata Group has helped establish and finance numerous quality researches,

educational and cultural institutes in India. The group was awarded the Carnegie Medal 

of Philanthropy in 2007 in recognition of its long history of philanthropic activities. Tata

gets more than 2/3 of its revenue from outside India.

In June 2011, based on market value Tata Group has become India's

wealthiest group with $98.7 billion.

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TATA CAPITAL LTD.

Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is

registered with the Reserve Bank of India as a Systemically Important Non Deposit

Accepting Non Banking Financial Company (NBFC) and offers fund and fee-based

financial services to its customers.

 

A trusted and customer-centric, one-stop financial services provider, Tata Capital

Limited caters to the diverse needs of retail, corporate and institutional customers,

directly or indirectly, through its subsidiaries across various areas of business namely

the Commercial Finance, Investment Banking, Private Equity, Infrastructure Finance,

Securities, Wealth Management, Consumer Loans, Cards and Travel Related Services.

 

Tata Capital is headquartered in Mumbai and has a wide network of over 100

branches spanning all critical markets in India. 

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VISION & MISSION

Mission:

“To be a competitive value provider in international business for Group companies and

all our partners.”

Vision:

• Our philosophy is rooted in the Tata Group’s core values: Integrity,

Understanding, Unity, Excellence and Responsibility. It is our vision to exemplify

these core values in the financial sector and become the leading financial

services company in India with a global footprint.

• We aspire to become a pioneering and forward-looking organization that is

collaborative, nimble, innovative and responsive to the changing financial needs

of our clients. We strive to be a reliable and a result-oriented custodian of our 

clients’ finances. We seek to create an amicable atmosphere of collaboration,

understanding and unity, to ensure happy, motivated and engaged employees.

• We seek to be trusted, admired and respected amongst all out stake holders,

customers, employees, regulators, share holders and the community at large.

 

We wish to achieve our vision by only doing what’s right.

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We only do what’s right for you:

• The essence of brand Tata Capital is encapsulated in our brand proposition –

‘We only do what’s right for you'

• The proposition reflects our strong resolve to deliver financial solutions that are

‘right’ for our customers and the society at large.

• We seek to build strong relationships with customers via deep understanding of 

their needs, strong financial expertise and the delivery of superior and consistent

customer experience across all touch-points.

Brand Charter:

• We choose to put our customer’s interest above ours, and fulfill their needs.

• We choose to use our expertise to get the best results for our customers.

• We choose to innovate and come up with new ways to fulfill our customers’

needs.

• We choose to make promises we can keep, and keep the ones that we have

made.

• We choose to believe that we enrich our customers, and not just make them rich.

• We choose to be humble and courteous with everyone who walks through our 

doors.

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• We choose to respect our customers and colleagues, and in turn gain their 

respect.

• We choose to earn our stakeholders’ trust and not just expect it.

• We choose to let not just our expertise, but also our conscience lead us.

We believe our choices make us who we are. So we choose to do only what is right and

nothing less.

Corporate Sustainability:

• We at Tata Capital believe that corporate sustainability is a cornerstone for 

business operations.

• Tata Capital is a socially responsible corporate citizen and a socially committed

organization. We have always made sincere efforts to protect the interests of all

our stakeholders and contribute to society.

• With a view to make a meaningful and positive contribution, we have identified

four key areas of work - Livelihood & Employability, Health, Education and

Environment.

A Unique Customer Centric Business Model:

• Tata Capital aims to build itself into a customer centric organization and thus

supports a front end which is truly based on customer convenience.

• All products and services of Tata Capital are offered to the Retail, Corporate and

Institutional customers via a unique common sales and service structure - a ‘one

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stop shop’ for the customer, servicing his entire financial requirements through a

‘single window’.

Commercial Finance:

• With its wide array of products and customized service, our commercial finance

business, helps small, medium and large corporate grow their business.

• Our team of handpicked professionals offers in-depth expertise to help customers

keep pace with the changing marketplace and offer them appropriate solutions to

meet their ever-growing financial needs.

• Our range of offerings includes Term Loans, Working Capital Loans, Channel

Finance, Equipment Finance, Lease Rental Discounting, Bill Discounting Letter of 

Credit and Bank Guarantee.

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SERVICES PROVIDED BY TATA CAPITAL LTD.

 

Commercial Finance

 

With its wide array of products and customized service, our commercial finance

business, helps small, medium and large corporate grow their business. Our team of 

handpicked professionals offers in-depth expertise to help customers keep pace with

the changing marketplace and offer them appropriate solutions to meet their ever-

growing financial needs. Our range of offerings includes Term Loans, Working Capital

Loans, Channel Finance, Equipment Finance, Lease Rental Discounting, Bill

Discounting Letter of Credit* and Bank Guarantee*

Investment Banking

Tata Capital Investment Banking services help Institutions and Corporate

manage and grow their business via high quality financial advisory services and capital

market solutions. Our team of dedicated and experienced professionals understands the

needs of its customers and offers them cost-effective solutions from a bouquet of 

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Securities

 

Tata Securities Limited*, a wholly owned subsidiary of Tata Capital Limited,

offers, both institutional and retail customers, quality products and services like equity

trading and research. With a strong research and execution team, and uncompromising

ethical standards, Tata Securities strives to work in the interest of its customers and has

successfully built a franchise of strong relations.

Wealth Management

 

Whether it is selecting the right investment opportunity, growing a financial

portfolio or building a retirement nest, our Wealth Management team guides our 

customers at every step. Backed with strong research capabilities and a deep

understanding of our customers, our team helps recommend and execute a customized

financial strategy that is just right for our customers. The spectrum of offerings includes,

Financial Planning Services, Retirement Planning Services, Third party investment

products like Portfolio Management Services, Private Equity/Venture Capital Funds,

Structured Products, Mutual Funds, Fixed Deposits and Bonds.

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Consumer Loans

  Our wide range of consumer loans helps ensure that the dreams our customers

want to realize today, are not put off for tomorrow. With a deep understanding of our 

customers’ needs we are able to guide them at every step and offer them specific

financial solutions. Our Consumer Loans include, Home Loans*, Auto Loans, Personal

Loans, Business Loans, Education Loans, Loans against Property, Loans against

Shares#, Loans against Gold.

Tata Cards

 

The Tata Card* combines the convenience of a powerful credit card with a

rewarding membership to the Empower program. The credit card allows customers to

earn points and the Empower program, India's first multi-brand loyalty program, offers

them the advantage of redeeming these points across several loyalty programs.

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Travel Related Services

 

Our travel related services helps cater to a range of travel needs - from planning

customized holiday packages for individual customers to group travel arrangements for 

corporate customers. Our focus on service quality and transparency is supplemented by

our commitment to optimize the cost, comfort and convenience for all our customers.

Our wide range of services includes Airline ticketing, Visa & passport facilitation, Hotel

accommodation and Cars-hire & surface transport.

Forex Services

 

TT Holdings & Services Limited, a wholly-owned subsidiary of Tata Capital

Limited offers a complete range of travel related foreign exchange products.

Our wide range of services include travelers cheques, foreign currency notes,

foreign currency denominated pre-paid travel cards, inward money transfer service and

other associated travel related products like travel insurance, prepaid calling cards

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Affiliates:

Financials Limited is a BPO and KPO unit specializing in the area of financial

services and owned by Tata Capital Limited, Tata Sons Limited and others.

Tata Capital Limited also owns around 4% of the equity capital of (Development

Credit Bank), a new generation private sector bank with a network of 80 state-of-the-art

branches across 10 states and two union territories.

Strategic Alliances:

  With Mizuho Securities Co. Ltd. to foster business cooperation

in private equity, investment banking including cross border mergers and acquisitions,

securities business including broking and distribution, structured finance and other 

business areas such as wealth management.

With Mizuho Corporate Bank Limited (MHCB) to foster business cooperation,

enhancing cross-market value creation capabilities, strengthening competitive

advantages in addition to aiding each other in gaining a deeper understanding of the

Indian and Japanese markets. As part of the understanding, Tata Capital and MHCB will

cooperate in a wide-range of business areas. Some of these include Ninja Loans,

Project and Infrastructure Finance and Treasury Products.

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With Mitsubishi UFJ Securities Co., Limited to establish a basis of cooperation

in a wide range of strategic business areas that include cross-border investment

banking, global offering of Indian.

Financial Highlights:

Tata Capital is a fast expanding financial services provider and built a strong

foundation in its initial years of business.

 YTD Dec 2010 (Rs. Crore):

• Total Assets 14, 463

• Total Advances 12,100

• Net Worth 2,222

• Capital Adequacy Ratio 17.1%

THE TATA’S TODAY MARKET VALUE:

• Market capitalization of 28 listed companies( Feb., 17, 2011)

454,688 cr/ $100.26 bn

• 6.9% of BOMBAY STOCK EXCHANGES’S MAKET CAP

• 3.5 mn shareholders

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SWOT ANALYSIS

STRENGTHS:

• Resources and capabilities (People and Raw Material)

• Vast experience (steel and automobiles)

• The business model. (TBEM is a model determining the quality movement

in the group).

WEAKNESS:

• Distribution

• value chain innovation

• macro environment

• in order to serve the global markets with high quality and low price.

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LEADERS WITH A VISION

Tata Capital Board consists of valuable and extensively experienced individual

experts in their domains. They direct and nurture the Company with their priceless

guidance, foresight and vision.

Farrokh K. Kavarana

Farrokh K. Kavarana is a Director of Tata Sons Limited and Tata Industries Limited, the

apex holding companies of the Tata Group. He is the Chairman of several Tata

Companies in India and abroad – notably Tata AIG Life and General Insurance

Companies, Tata Asset Management Ltd., Trent Ltd. and Tata Projects Ltd.

Farokh Nariman Subedar 

Mr. F N Subedar is a qualified chartered accountant and company secretary and has

vast experience in the matters of company administration, taxation, accounts and

finance. He is the senior Vice President - Finance and Company Secretary of Tata Sons

Ltd. and is on the board of various Tata companies. Mr. Subedar has served as the

Chairman of the Direct Taxation Committee of the Bombay Chambers of Commerce

and Industry.

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Hoshang Noshirwan Sinor 

Hoshang Noshirwan Sinor was the Chief Executive, Indian Banks’ Association, Mumbai,

India till July 31, 2008. With 42 years of extensive experience in the banking sector, he

has had exposure to the working of both public sector and private sector banks in India

and has hence, had the experience of both the phases of nationalization and

liberalization in this sector in India..

Ishaat Hussain

Ishaat Hussain, the Finance Director of Tata Sons Ltd. since July 2000, joined the

Board of Tata Sons as an Executive Director on 1st July 1999. Prior to joining Tata

Sons, he served as the Senior Vice-President and Executive Director – Finance in Tata

Steel where he served for almost 10 years. Besides being on the Board of Tata Sons

Ltd., he is also the Chairman of Voltas Limited and Tata Sky Limited. He serves on the

Boards of several Tata Companies like Tata Steel, Tata Industries, Tata Teleservices

and Titan Industries Limited. Mr. Hussain is a member on the Primary Markets Advisory

Committee of the Securities and Exchange Board of India (SEBI). In April 2005, he was

appointed a Member of the Board of Trade and in November 2006 he was appointed a

Public Interest Director of Bombay Stock Exchange Limited.

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Janki Ballabh

Janki Ballabh joined the State Bank of India in July 1966 and served in several

important positions which included assignments at the New York Branch of the Bank,

Chief Executive Officer of the Bank's Branch at Singapore, Chief General Manager 

(Product Development, Marketing and Personal Banking) at the Corporate Office and

Deputy Managing Director and Group Executive (International Banking), before taking

over as Chairman, State Bank Group in November 1, 2000. Besides heading the State

Bank of India, Shri Ballabh was also the chairman of the Seven Associate Banks of the

State Bank of India, 4 banking subsidiaries of the Bank abroad and seven non-banking

subsidiaries of the Bank in India. On retirement from State Bank of India, Shri Ballabh

was appointed by the President of India as Vigilance Commissioner in the Central

Vigilance Commission, New Delhi for 3 years from November 2002 to October 2005.

Shri Ballabh worked as Chairman, Reserve Bank of India Services Board from 8th

December 2005 to 23rd October 2007. He is presently the Chairman, UTI Trustee Co.

of UTI Mutual Fund. He also serves as the Director on the Boards of Tata AIG Life

Insurance Co. and Small Industries Development Bank of India (SIDBI). He is also a

Member of the Asia Pacific Advisory Committee of Barclays Bank PLC, London since

June 1, 2007.

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Praveen P Kadle

Praveen P Kadle, the Managing Director of Tata Capital Limited, has been associated

with the Tata Group for the last 16 years in various important capacities. For the first 5

years, he served as the Chief Financial Officer of Tata’s joint venture with IBM in India.

Thereafter, he joined Tata Motors Limited as Vice-President (Finance) and in the year 

2001 he joined the Board of Tata Motors Limited as Executive Director – Finance and

Corporate Affairs.

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AWARDS & RECOGNITION

Padma Bhushan  on 26 January 2000.

Padma Vibhushan  on 26 January 2008.

NASSCOM Global Leadership on February 14 2008 in Mumbai.

Carnegie Medal of Philanthropy in 2007.

Robert S. Hatfield Fellow in Economic Education in March 2006.

London School of Economics and Indian Institute of Technology

Kharagpur .

The Government of Singapore conferred honorary citizenship on Ratan

Tata.

The title of honorary economic advisor to Hangzhou city in the Zhejiang 

province of China.

Fortune magazine in November 2007, listed him among the 25 most

powerfull business man.

Time magazine's 2008, listed him the World's 100 most influential people.

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OBJECTIVE OF THE STUDY

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TO STUDY THE CAR LOAN PROVIDED BY TATA CAPITAL LTD. TO THEIR

CUSTOMERS.

TO STUDY THE DETAILED PROCEDURE INVOLVED IN THE SANCTIONING

OF CAR LOAN.

TO STUDY THE AWARENESS OF THE CAR LOAN AMONG THE CUSTOMER

MAKE A COMPARATIVE STUDY OF TATA CAPITAL LTD. CAR LOAN WITH

OTHER COMPETITIVE BANKS

TO STUDY THE RULES AND DOCUMENTS REQUIRED BY TATA CAPITAL

LDT FOR CAR LOAN

TO KNOW THE VARIOUS LOAN PROVIDED BY THE TATA CAPITAL LTD.

RECOMMEND THE VALUABLE SUGGESTION WHICH MAY INCREASE THE

FAITH OF NEW CUSTOMERS.

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RESEARCH METHODOLOGY

Research

The study of research method provides you with the knowledge and skills you need

to solve the problem and meet the challenges of the fast- based decision. Marketing

environment we define Business Research as a systematic inquiry whose objective is to

provide information to solve managerial problem.

It seeks to find explanation to unexplored phenomena to clarify the doubtful facts

and to correct the misconceived facts. This will be done by carrying out the following

process.

a) Defining the problem and research objective :

The research objective is to find out the perception of the customers about the services

provided.

b) Method of data collection:

After determining the research objective the nature of data to be collected is given due

consideration as it will influence the interpretation of the entire project, after determining

the nature of data the next step would be to adopt an appropriate data collection

method. The method of data collection adopted by the research is inclusive of a

structured well designed questionnaire.

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c) Sampling Design:

Sampling units:

The respondents of the questionnaire are categorized are the customers of the Tata

Capital Ltd.

Sample size:

Survey will be conducted for 100 respondents who are the customers of Tata Capital

Ltd.

Sampling technique:

The respondents were interviewed with the help of a well structured questionnaire and

will be interviewed personally to gather the required information.

Sources of data:

Data collected for the project study is inclusive of both primary as well as secondary

data.

Type of Data Used

There are basically two types of Data

Primary Data

Secondary Data

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Primary Data

Primary Data is first hand information that the researcher collects. It helps in collecting

useful and most accurate information that is needed for the researcher to do his

research.

Primary Data will be collected from tata capital ltd. clients who are already using the

services of tata capital ltd., for the descriptive information. The purpose of this study is

to find out perception of clients in the population (what percentage) of KARNAL city

about car loan by tata capital ltd.

Sources of Primary Data

1. Questionnaire

2. Interview Schedule

Secondary Data 

Secondary data is what the researcher collects from different sources. It also help

researcher to get elaborate information to do his research.

Sources of Secondary Data

1. Internet

2. Journal

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RESEARCH DESIGN

M arketing Research

Marketing research covers the field of problems, techniques, and other aspects of 

marketing and related decision-making and their implementation. It studies an

economic unit in respect of its various constituents such as consumers, buyers, and

sellers. It studies their response pattern towards prize, promotion, purchasing power,

and loyalty towards specific brands and similar other marketing activities. It also tries

to determine the contribution of other relevant factors such as habits, consumers,

and preference to decision making.

Types of Research Design

• The research design adopted for this study is exploratory research design.

• Exploratory research includes survey and fact finding enquiries of different kinds.

• Research design is used to describe the state of affairs, as it exists at present.

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Types of Research

Descriptive Research

Descriptive study is a fact- finding investigation with adequate interpretation. It is the

simplest type of research. It is more specific than an explanatory study, as it has focus

on particular aspect of the problem studied. It is designed together descriptive

information and provide information for formulating more sophisticated studies. Data are

collected by using one or more appropriate method, observation, interviewing and mail

questionnaire.

Target Group/ Population

As this research is based on Relationship Marketing my Target group is my Clients who

are using the Services of Tata Capital Ltd.

Area of Study

Karnal (Haryana)

Tools for Data Collection

The Various method of Data gathering involves the use of appropriate recording forms.

These are called tools or instrument of data collection.

Total No. of Sample

  100 (Hundred)

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RESEARCH INSTRUMENT:

• A structured design questionnaire is used for surveying the consumers.

• Both open ended and close ended questions are included.

Questionnaire

Close Ended Question

Are structured ones with two or more alternative responses from which respondent can

chose. They contain standardized answers and they are simple to administer and easy

to compile and analyzes.

Dichotomous or two- choice questions

A dichotomous question can be answered in one of the two responses such as “Yes”

or “No”. It is necessary to realized that in many two choices question there may be

potential alternative beyond the stated two.

Multiple Choice questions

These questions contain more than two alternatives.

Following points should be remembered before making this question

• The list of alternative choice should be exhaustive.

• It Should not overlapping

• There should be fair balance in choice

• All alternative should be reasonable.

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Sampling

The Basic idea of sampling is that by selecting some of the element in a population in

order to get first hand information of study.

There are two type of sampling probability Sampling & Non probability sampling and in

this research, Researcher has taken probability sampling.

Probability Sampling

Probability sampling is most commonly associated with survey based research where

you need to make inferences from your sample about a population to answer your 

research questions or to meet your objectives. The process of probability sampling can

be divided into four stages:

• Identify a suitable frame based on your research question or objectives

• Decide on a suitable sample size

• select the most appropriate sampling technique and select the sample

• Check that the sample is representative of the population

The objective of probability sampling depends on the research question & on the

objective. Subsequently I need to have face to face contact with respondents.

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Simple random sampling

Simple random sampling involve in selecting sample at random from the sampling frame

using either random no. table. In my research I had use random selection of respondent

who used to come for the loan taking purpose in tata capital ltd. it is most accurate and

easily accessible form of sampling method.

Convenience Sampling

Convenience or haphazard sampling involve selection haphazardly those cases that are

easiest to obtain for your sample, Such as the person interviewed at random in a

shopping center for the interview programmed. The sample selection process is

continued until your required sample size has been reached. Although this techniques of 

sampling is widely used it is prone to bias and influence that are beyond your control. I

has selected convenience sampling as some of the respondent are my clients only.

Technique used for analysis & interpretation

Bar Diagram & Pie Chart

Percentage Analysis

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Some Car Companies

Maruti Suzuki- Alto, Wagon-R, Swift, Zen, Van, Gypsy,Sx4, Eco

Hyundai- Accent, I-20, I-10

Honda- Civic, Honda City

Mahindra- Logan, Scorpio

Tata- Safari, Indigo, Sumo

GM – Spark, Cruise, Beat, Magnum

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MEANING OF LOAN

Loan means a credit facility where the money is disbursed in the beginning,

mostly in one stroke, and later on only recoveries in the forms of installments take place

in the account. Very often the two words ‘Loans’ and ‘Advance’ are interchangeably

used without observing any difference in their meanings. But there exists a fine degree

of distinction between the two words. Loan means a credit facility where the money is

disbursed in the beginning, mostly in one stroke, and later on only recoveries in the

forms of installments take place in the account. In case of ‘Advance’, credit facility is

availed of as and when needed and continuous debit and credit operations are made in

the account, within the prescribed limit. Thus, credit facilities repayable in installments

are ‘loans’ and credit facilities like cash credit and overdrafts where cheque book facility

is also given ‘advances’. In case of loan, except initial disbursal, no further debits are

allowed barring interest being debited by the bank. The account will have credit entries

only by the way of recovery and balance outstanding will gradually decline. But in case

of Advance, cheque book remains with the borrower and any number of debits and

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credits are permitted with in the agreed limit. In banking parlance, mostly the deposits

are payable on demand including term deposits, which too can be discounted at any

time and as such ‘Advances’ are preferred as compared to ‘Loans’ for simple reasons

that advance can be recalled on demand whilst loan will be repaid only in installments

over a long period. Although the logic of such preference is practically not visible since

the cash credit accounts are never repaid and only limits are enhanced every year while

the loans are at least paid back gradually. However, traditionally banks prefer facilities

which are payable on demand. Moreover, for granting loans, others specialized

agencies like State Financial Corporations have been promoted and they don’t sanction

advances.

TYPES OF LOANS

Banks grant loans for different periods- short, medium and long, and for different

purposes. Broadly, the loans granted by banks are classified as Error! Bookmark not

defined.

1. Short term loan

Short term loans are granted to meet the working capital needs of the borrowers.

These loans are granted for granted less than a year. These loans are granted against

the security of tangible assets- mainly the movable assets like goods and commodities,

share, debentures etc. since April, 1995 reserve Bank of India has made in mandatory

for the banks to grant a portion of bank credit to big customers in the form of loans,

which may be the various maturities. The reserve bank of India has also permitted the

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banks to roll over such loans, i.e., to extent loan for another period at the expiry of the

tenor of the first loan.

2. Medium term loan & long term loan

Medium and long term loans are usually called ‘Term Loan’. Medium terms loans are

granted for more than a year and less than three years and long term loans are granted

for more than three years and are meant for purchase of capital assets for the

establishment of new units and for expansion or diversification of an existing unit. Bank

usually grants such loans together with specialized financial institutions like Industrial

Finance Corporation of India, Industrial Credit and Investment Corporation of India etc.

3. Bridge loans

Bridge loans are essentially short term loans which are granted to industrial

undertakings to meet their urgent and essential needs during the period when

formalities for availing of the term loan sanctioned by financial institutions are being

fulfilled or necessary steps are being taken to raise funds from the capital market. These

loans are granted by banks or by financial institutions themselves and are automatically

repaid out of amount of the term loan or the funds raised in the capital market.

4. Composite loan

When a loan is granted both for buying capital assets and for working capital

purposes it is called a composite loan. Such loans are usually granted to small

borrowers, such as artisans, farmers, small industries etc.

5. Consumption loan

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Though normally banks provide loans for productive purposes only, but as an

exception loans are also granted on a limited scale to meet the medical needs or the

educational expenses relating the marriages and other social ceremonies etc. of the

needy persons. Such loans are called consumption loans.

CAR GROWTH INDUSTRY:

THE TOTAL GROWTH IN AUTO LOAN SEGMENT FOR LAST THREE YEARS:-

YEAR 2008 2009 2010

Car Loan Growth% 37.88% 22.6% 38.8%

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MAIN GROWTH DRIVERS:

• GROWING ECONOMY

• CHANGE IN DEMOGRAPHICS, PEOPLE PREFER USING LIFESTYLE

PRODUCTS

• INCREASING LITERACY LEVELS

• CHANGING REGULATORY ENVIRONMENT WITH REGULATION IN EXCISE

DUTIES

• EASY AVAILABILITY OF FINANCE & INDIAN CONSUMERS ARE NO

LONGFER AVERSE TO CONCEPT OF TAKING LOAN FOR BUYING VEHICLES

• INCREASING CONSUMPTION MINDSET IN INDIA

• ORGANIZING USED CAR BUSINESS

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COMPARITIVE ANALYSIS AMONG DIFFERENT BANKS FOR CAR LOANS

Bank’s Rate of  Interest

Max. LoanAmount

LoanTenure

ProcessingFees

Pre-paymentCharges

ICICI Bank 13% 90% 1 – 5 yrs Rs. 2500 - 5000 1.5%HDFC Bank 11.30% 90% 1-7yrs Rs. 2150 - 3650 N.A

ABN AMRO Bank 15% Rs. 20lakh N.A Rs. 1000 5%

PSBs

SBI 8 - 11.25% Rs. 15lakh 1-7yrs 0.50% 2%Bank of India 8.75 -10% Rs. 25lakh 1-6yrs Rs.1000 NILDENA Bank 10.75 -11% Rs. 8lakh 1-5yrs Rs. 1000 NILUCO Bank 11.50% 85% or  

Rs.7.50Lakh

1-5yrs 1% or Rs.1000 0.5%

Indian Bank 11 - 11.25% Rs 15Lakh 1-5yrs 0.30% NILO.B.C 10.25-10.75% Rs10Lakh 1-7yrs 0.50% NIL

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CAR LOAN BY TATA CAPITAL LTD.

TCL Car Loan: TCL Provides a Quick and Easy car loans with Easy Documents, EMI

Options and Low Interest Rates. TCL Car loan interest rates start from 9.25 to 11.50

percent.

Tata Capital Ltd. also provides:

• PERSONAL LOAN,

• HOME LOAN,

• EDUCATION LOAN,

• LOAN AGAINST SECURITIES & INSURANCE.

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FEATURES AND BENEFITS of AUTO LOAN

• Choose any car manufactured in India within a certain age.

•

Borrow up to 80% of the value of the car.

• Flexible repayment option, ranging from 12 to 60 months.

• Borrow up to 3 times your annual salary (for salaried professionals) and 6

times your annual income (for self employed professionals).

• Available for almost all car models at attractive interest rates.

• Repay with easy EMIs.

• Attractive car loan plans – To Fastrack your loan, just choose the plan that is

right for you.

• Additional loan on existing loan – If you are an existing tata capital ltd Auto

loan customer with a clear track record of 12 months or more, then you can

get an additional loan to the extent of your existing loan amount at attractive

rate of interest.

• Customer Privileges

• Special benefits for Tata Capital Ltd employees.

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PRODUCT OFFERINGS

New Car loans:

Funding of up to 100% of ex-showroom value

Tenors from 12-84 months

Competitive pricing

Unique credit shield offered along with loan-suraksha Kawatch

Used car Loans:

Funding of up to 85% of valuation of car 

Tenors from 12-60 months

Competitive pricing

Unique credit shield offered along with loan- Suraksha Kawatch

Car and Cash:

Refinance on your existing car 

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ELIGIBILITY & DOCUMENTATION:

• Salaried individual

•

Self employed

• Partnership firms

• Private ltd company

• Public ltd company

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Salaried Individuals

Telephone: Must at residence.

Self Employed

Eligibility Criteria: 

• Minimum age of Applicant: 21 years.

• Maximum age of Applicant at loan maturity: 58 years.

• Minimum employment: 1 year in current employment and minimum 2 years

employment.

• Minimum Annual Income: Rs 100000 net annual income.

Documents required: 

• Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving

license( Laminated, Recent, Legible).

• Income Proof :- Latest salary slip with form 16.

• Address Proof :- Ration card/Driving license/Voters card/passport

copy/telephone bill/ electricity bill/Life insurance policy PAN Card.

• Bank Statement:- Not mandatory

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• Telephone: Must at residence.

Partnership Firms

Eligibility Criteria: 

• Minimum age of Applicant: 21 years.

• Maximum age of Applicant at loan maturity: 65 years.

• Minimum employment: Atleast 3 years in business.

• Minimum Annual Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000

p.a. for mid-sized and premium cars.

Documents required: 

• Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving licence

(Laminated, Recent, Legible).

• Income Proof:- Latest ITR

• Address Proof:- Ration card/Driving licence/Voters card/passport copy/telephone

bill/ electricity bill/Life insurance policy PAN Card.

• Bank Statement:- Waived for small cars, for mid - sized and premium cars if 

incomee greater than Rs. 1.5 lacs then bank statement requirement waived

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Eligibility Criteria: 

• Minimum Income: Net profit Rs. 60000 p.a for standard cars and Rs.100000 p.a.

for mid-sized and premium cars.

• Minimum turnover: Turnover Rs. 4.5 lacs.

• Telephone: One phone at least at business and at residence of the loan

executing partner.

Documents required: 

• Proof of Identity:- NA

• Income Proof:- Audited balance sheet, Profit & Loss Account for latest two years

and the latest 2 years IT returns of the company.

• Address Proof:- Telephone Bill/Electricity Bill/Shop & Establishment Act

certificate/SSI registered certificate/Sales Tax certificate.

• Bank Statement:- Waived for small cars, for mid - sized and premium cars if 

income Is greater than Rs 1.5 lacs then bank statement requirement can be

waived