Dindekar Project Maharashtra Bank

Finance is the life blood of trade, commerce and industry.
Now-a-
days, banking sector acts as the backbone of modern business. Development of
any country mainly depends upon the banking system.
The term bank is either derived from Old Italian word banca or from a
French word banque both mean a Bench or money exchange table. In olden days,
European money lenders or money changers used to display (show) coins of different
countries in big heaps (quantity) on benches or tables for the purpose of lending or
exchanging.
A bank is a financial institution which deals with deposits and advances and
other related services. It receives money from those who want to save in the form of
deposits and it lends money to those who need it.
Bank is defined as an institution for the keeping, landing and
exchanging etc. of money. Economists have also defined a bank highlighting its
various functions. According to some economist, the banker business is to take
the debt of other people to offer his own asset in exchange and thereby create
money.” Thus a bank is an institution that accepts deposits from the public in
terms of advances loans by creating credit. It is different from other financial
institutions in that they cannot create credit though they may be accepting
deposits and making advances.
Characteristics / Features of a Bank
 Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given by
depositors.
 Individual / Firm / Company

A bank may be a person, firm or a company. A banking company means a company
which is in the business of banking.
 Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are usually
repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of
its customers. It also acts as a custodian of funds of its customers.
 Giving Advances
A bank lends out money in the form of loans to those who require it for different
purposes.
 Payment and Withdrawal

A bank provides easy payment and withdrawal facility to its customers in the form of
cheques and drafts, It also brings bank money in circulation. This money is in the form of
cheques, drafts, etc.
 Agency and Utility Services

A bank provides various banking facilities to its customers. They include general utility
services and agency services.
 Profit and Service Orientation

A bank is a profit seeking institution having service oriented approach.
 Ever increasing Functions

Banking is an evolutionary concept. There is continuous expansion and diversification as
regards the functions, services and activities of a bank.
 Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Banks collect
money from those who have surplus money and give the same to those who are in need
of money.
 Banking Business
A bank's main activity should be to do business of banking which should not be
subsidiary to any other business.
 Name Identity
A bank should always add the word "bank" to its name to enable people to know that it is
a bank and that it is dealing in money.
Types of banks:
 Commercial banks
 Exchange banks
 Industrial banks
 Agricultural banks
 Cooperative banks
 Saving banks
 Central banks
Banking Industry in India has always revolved around the traditional function of deposits
and credit. Their role had been defined as to assist the overall economic growth with
majority of share being controlled by the Government of India in most of the banks. But
with the process of liberalization, and the technological revolution the banking
industry has also undergone tremendous change in the last 5 years. The market,
Which was largely controlled by the public sector banks, has now been facing stiff
competition not only from foreign players but also from the new generation private sector
banks. The rules of the game have been changing with the RBI introducing new norms to
make banks more accountable and to adopt the practices followed worldwide Most of
the banks have now been trying to function on the concept of a Universal Bank apart from
the traditional functions of a commercial bank, they are taking steps to build themselves into
a one stop financial center wherein all the financial products would be available. Banks
have started catering to the retail segment to improve their deposit portfolio. In order to
have a maximum share in this segment, most of the banks have been introducing new
products. The delivery channels have also been shifted from branches to ATMs, phone
banking, net banking etc. Banks traditionally involved in working capital financing
have started offering consumer loans and housing loans. Some of the banks have started
offering travel loans as well. Retail financing is the other area where the banks have
started to concentrate. The loan formalities too have been relaxed to a great extent and
sanctioning time has been speeded up.
Meaning of Housing Finance
The home is basic unit of society, but the capital required per dwelling is so large
that few individuals can raise it from their own savings. So there is a great need
and scope for the purpose of construction of house.
The terms “Housing Finance” or “Home Loan” means finance for buying or
modifying a property. The different housing loan products could be classified as:-
(a) Home Loans
(b) Home Extension Loans
(c) Home Improvement Loans
(d) Land Loans
(e) NRI Loans
(f) Home Equity Loans
(g) Short Term bridging Loans
(h) Converting high interest housing loan to low interest housing loan.
Eligibility criteria of housing finance in India.
The individual, who is planning to buy a house in India, can apply for home loan,
whether he is “Resident” or No n-resident individual. The individual can apply for
loan even before the selection of the property which is to be purchased. Once an
individual decides the maximum amount that he can put into the property, all
Housing Finance Institution (HFIs) can help to plan his budget by calculating his
“Affordability” which is based on his
Individual or clubbed income.
The loan applicant has an option of having co-applicant to his loan to enhance his
loan eligibility. All HFIs lay down conditions on who can be co- applicants. All
co-owners to the property need to be co-applicants to the loan necessarily. But
any minor cannot be co-applicant as he is not eligible to enter into contract as per
law. HFIs do not permit friends or relatives who are not blood relatives to take
property jointly. Income of co-applicants as decided by HFIs can be clubbed
together to get higher loan eligibility.
The following table shows some acceptable relationship of co-applicants for

accepting loan application:-
(a) Husband – Wife (Yes)
(b) Parent – Son (if only son) (Yes)
(c) Parent – Daughter (if only daughter) (Yes)

(d) Brother – Brother (if currently staying (Yes)
(e) Brother – Sister (No)
(f) Sister – Sister (No)
(g) Parent – Minor Child (No)
General Terms and Conditions of a Housing Loan
The following are the general terms and conditions applicable to the basic housing
loan product only. These are likely to change with respect to different types of
housing loans.
1. The loan to value ratio cannot exceed a particular percentage. This

differs from product to product and from one HFI to another. The ratio is known as
‘LTV’.
2. The maximum tenure of the loan is normally fixed by HFIs.

However, HFIs do provide for different tenor with different terms and conditions.
3. The installment that applicant pay is normally restricted to about 40

percent of his monthly gross income. This is known as Installment to Income
Ratio (IIR).
4. The total monthly outflow towards all the loans that applicant has
availed of including current loan is normally restricted to 50 percent of applicants
monthly gross income. This is known as the Fixed Obligation to Income Ratio
(FOIR).
5. An applicant will eligible for a loan amount, which is lowest as per

his eligibility. This is calculated as per the LTV norms, the IIR norms and the
FOIR norms.
6. Most HFIs consider applicant’s profile before they judge his

capacity. The applicants are judged on the basis of age, qualification, number of
dependents, employment details, employer credentials, work experience, previous
track record of repayment of any loans that he has availed of, occupation, the
industry to which applicant’s business relates to. If applicant is self-employed, then
his turnover in the last 3-4 years, etc.
7. Some HFIs insist on guarantees from other individuals for due

repayment of applicant’s loan. In such cases applicants have to arrange for the
personal guarantee before the disbursement of loan takes place.
8. Most HFIs have a team of civil engineers to visit the site to get a
technical report on the quality of construction and compliance with the local laws
before they disburse the loan.
9. Most HFIs have a panel of lawyers who go through applicant’s
property documents to ensure that the documents are clear and are not mis-
represented.
10. The disbursement of loan takes place as per progress of

construction of property unless it is ready property in which case the disbursement
of loan will take place by one single cheque. PEMI are simple interest on loan
amount disburse to an applicant in case of a part disbursement is payable by an
applicant on the disbursement.
11. The disbursement in most cases, favors the builder or the seller or
the society or the development authority as the case may be. The disbursement
does come in applicant’s favors only in special circumstances.
12. An applicant can repay the loan either through deduction against
salary, postdated cheques, standing instruction or by cash or demand draft (DD).
13. The principal is amortized either an annual reducing or monthly

reducing basis as case may be.
A STUDY ON CONSUMER SATIFACTION FOR HOME LOAN BUYERS OF
MAHARASHTRA BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
Different kinds of charges applicable to Housing Loan Products.
The different kinds of charges applicable to home loans are listed below, but all of
these charges may or may not levy by all HFIs. These charges are broadly
classified into two categories.
CHARGES
RE-DISBURSEMENT POST –
CHARGES DISBURSEMENT
1 Processing CHARGES
. Fees
2 Administrativ Cheque
1 Bounce
. e Fees .
3 Rate of Charges
. Interest
4 Legal 2 Del
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5 Technical Cha
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6 Stamp Duty 3 Add
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Registration al
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Charges 4 Inci
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7 Personal 5 Prep
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Processing Charges:
This is a charge that is levied by most HFIs to cover the cost that they incur on the
processing of loan application. This has to be paid at the time of submission of the
application form. Most HFIs refund this fee if loan application is rejected. It is
normally charged as a percentage of loan amount sanctioned or it may be charged
as a flat fees based on loan amount. In case of excess fees corresponding to loan,
it can be adjusted with subsequent charges which are to be paid by applicant.
Administrative fees:This charge is based on percentage on the loan amount
sanctioned. It is collected by the HFI for the maintenance of customer’s records,
issuing interest certificates, legal charges, technical charges etc. through the
tenure of loan. It is to be paid after acceptance of offer letter given by HFI.
Rate of Interest:
It is charges on the principal on either annual reducing method or monthly

reducing method. There are two types of rate of
interest, “Fixed rate of interest”, and “Floating r ate of interest”. Applicant can opt
for any of these types.
egal Charges:
Some HFIs levy legal charges that they incur on getting property document vetted
by their panel of lawyer.
Technical Charges:
This charge is levied by some HFIs to meet their expenses on the technical site
visits to the property.
Stamp Duty and Registration Charges:
HFIs that go in for a registered mortgage pass these charges on to an applicant.

These are rather heavy in certain states depending on the laws laid down by the
State where the property is to be purchased.
Personal Guarantee form Charges:
These charges are levied by HFIs who demand for guarantee. Since the personal
guarantee provided by an applicant is to be stamped, so these charges are to be
paid by applicant.
Cheque Bounce Charges:
In case the cheque through which an applicant is making payment to HFI gets
dishonored, then some minimum charges are levied by bank. And these charges
are to be recovered by an applicant.
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Delayed Payment Charges:
In case of delay of installment beyond due date. HFIs charge these charges to an
applicant.
Additional Charges:
These are levied as a percentage on the delayed payment charges by most HFIs.
These charges are levied if an applicant fails to pay the dues within the stipulated
time after delay has taken place.
Incidental Charges:
This is payable in case the HFI sends a representative from their organization to
collect their outstanding dues. It is normally charged at a flat rate per visit. These
charges are levied by most HFIs.
Prepayment Charges:
It is penalty charged by HFIs from when the applicant makes either a part
prepayment or a full prepayment of loan. This charge is levied on the amount
prepaid by an applicant and not on the equated monthly installments (EMIs) that
he pays. This charge is levied on the amount prepaid and not on the entire
outstanding principal. These charges are gradually being discontinued by the
HFIs.
PDC Swapping Charges:
In case, an applicant wishes to swap the PDC’s given by him to HFI for EMI
repayments, some HFIs charge a flat fee for the
same. Here PDC reers to “Post Dated Cheques”.
.5The Typical Credit Documents that Need to besubmitted to the HFI:
The given list is the exhaustive list of credit documents that need to be submitted
for a general home loan product. The document vary from one HFI to another.
But the general requirements are:-
1. Income Document: it may be
(a) Salary slips for last three months.
(b) Appointment letter
(c) Salary Certificate
(d) Relationship Agreement, if appointed as consultant.
(e) Form 16 issued by an employer on applicant’s name.
(f) Last three years Profit and Loss Account Statement duly attested
by a Chartered Accountant, if self employed.
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(g) Last three years Balance Sheets duly attested by a Chartered

Accountant, if self employed.
(h) Last three years Income Tax Returns duly filed and certified by
the Income Tax Authorities.
2. Proof of Employment: it may be
(a) Identity Card issued by employer.
(b) Visiting Card
3. Employer’s Details (in case of Private Limited Companies) Profile of

employer on employer’s letter head it is to be
signed by a Senior Person in the organization comprising:
(a) Name of Promoters / Directors
(b) Background of Promoters / Directors
(c) Nature of business activity.
(d) Number of Employees
(e) List of branches / factories
(f) List of Suppliers
(g) List of Clients / customers
(h) Turnover of employer
(i) Annual reports of the employers for the last two to three years.
Proof of Age (any one of the following)
(a) Passport
(b) Voter’s ID Card
(c) PAN Card
(d) Ration Card
(e) Employer’s Identity Card
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(f) School Leaving Certificate
(g) Birth Certificate
5. Proof of Residence (any of the following)
(a) Passport
(b) Ration Card
(c) PAN Card
(d) Rent Agreement
(e) Bank Pass Book
(f) Allotment letter from company, if an applicant is residing in

company quarters.
6. Proof of Name Change (if applicable)
(a) A copy of the official Gazette.
(b) A copy of the newspaper advertisement publicizing the name

change.
(c) Marriage Certificate
7. Proof of Investment (if required)
(a) Bank Statement for the last six months of all operating and salary
account.
(b) Bank statements for the last six months of all current accounts, if self
employed.
(c) Any other photocopies of investment held, if required by HFI.
The name and the list of documents vary from state to state and it also depends on
the type of property being financed. The broad outline of the documents which are
generally required by most HFIs is given below:
1. Acceptance copy of the offer letter issued by HFI.
2. Title document of the property that includes:-
(a) Sale agreement duly registered.
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(b) Allotment letter
(c) Registration Receipts
(d) Land Documents indicating ownership, if applicable
(e) Possession letter
(f) Lease Agreement, if applicable (Property bought from development

authority)
(g) Mortgage deed, if HFI opts for a registered mortgage.
3. No Objection Certificate from developer, society or development authority

as applicable.
4. Personal Guarantee, if applicable.

5. In case of alternate or additional security, documents for the same depending
upon the security details.
6. Post Dated Cheques for EMIs.
These documents are indicative in nature and do not cover the entire list.
2.6 Type of Housing Finance Home Loans:
A home loan is a loan taken from a Housing Finance Institution (HFI) to buy or to
modify a property. The term property includes:-
(a) Property – under construction
(b) Property – ready for occupation
(c) Resale Property
(d) Self Construction or own construction.
Home Extension Loan:
A home extension loan is a finance taken from HFI to extend the built up area of
an existing property. This could be by way of any of the following:-
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(a) Additional Floor Space Index (FSI) granted by the approving

authority to construct an additional room.
(b) Enclosing the balcony with sliding windows or grills.
(c) Construction of an additional floor in the existing house.6
Land Loan:
A land loan is a loan taken from HFI to purchase the plot of land from either a
developmental authority or a society or a
developer.
Home Equity Loan:
Home equity loan is especially designed to meet financial needs of a person who
already owns a house. The loan amount is given against the existing property and
as a customer the person can utilize these funds to meet any of his requirements.
Difference Between a Normal Home Loan and Home Equity Loan is as follows:-
1. A normal home loan is a loan given for the purchase of new property.
While home equity loan is given against existing property of a customers.
2. In a normal home loan, the end use of the loan amount is
monitored to ensure that loan is actually used to pay the seller of the property.
While in case of the home equity loan the customers can utilize the loan amount
to meet any of his requirements.
3. In a normal home, since it is finance for the purchase of property, the

agreement value of the property is taken as benchmark. While in home equity
loan, the finance is against an existing property and hence the property needs to be
valued by a Government Approved Valuer or by HFI approved valuer.
NRI Home Loan:
The NRI home loan’s available to Non-Resident Indians from various HFIs for
any of the following activities:-
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(a) For purchase of house of a house either under construction or on

resale.
(b) For self-construction of a property on a plot of land.
(c) To finance the purchase of a plot of land allotted by a

society/development authority.
(d) To renovate or improve on Indian holding a valid Indian passport.10

Who is NRI?
(a) As defined by Reserve Bank of India, according to RBI, an Indian

citizen who holds a valid Indian Passport and who stays abroad for employment or
carrying on business or vocation outsides India or stays abroad under
circumstances indicating an intention for an uncertain duration of stay in abroad is
NRI
(b) As defined by Income Tax Authorities, according to Income Tax Act

1961, NRI is one who employed abroad for a period of not less than 182 days in
the financial year immediately preceding the year in which he is assessed.
Balance Transfer Loan:
A balance transfer loan enables the financing of an outstanding home loan. This
loan may have been availed from a HFI at a time when the interest rates are high.
To convert this loan to a lower rate of interest or at the rates prevailing currently a
balance transfer loan is the best option. This can be done with the same HFI or one
could switch to a new HFI. This switch becomes attractive when there is a
substantial decrease in the current interest rate vis-a-
vis the rate of which the loan was availed.
Most housing loans are disbursed at a rate of interest that is fixed over the tenure of
a loan. A converting high interest housing loans to low interest housing loan
enables a customer to get benefit from the decrease in rates and reduce the monthly
installment on the loan. The two option are available at the time of transfer of
loan.
(A) Reduction in EMI (Equated Monthly Installment)
An applicant may get the option of reducing the EMI with the term being
constant. Constant means the balance term left as per the
erms and conditions of the previous sanction by HFI. The EMI reduces as a result
of the reduction in interest rate on loan.
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(B) Reduction in Term
An applicant may keep his EMI constant and reduce the term
of loan. This possibility arises in case when an applicant is comfortable with

current EMI and wishes to clear the loan much earlier.
For the cases mentioned above, the loan amount for which an applicant is eligible
is calculated as:-
Eligible Amount = Principal outstanding as on the month in which one apply for
loan (as mentioned in the letter issued by HFI from
where the loan has been taken) + Prepayment Charges.
Finance for Housing

The responsibility to provide housing finance largely rested with the government
of India till the mid eighties. Even until ten years ago, the housing finance industry
had only one or two active lenders for home loans it was only, when the Govt.
realized their importance that it offered sops to customers and banks. The realized
their importance that it offered sops to customers and banks. The need for
institutionalization of housing finance has been realized. To cope up with
increasing demand it became necessary that the institutional finance should be
made accessible to different sections of society at reasonable interest rates. The
significant emphasis had been made in institutional set up for housing finance in
form of specialized housing finance institutions.
Finance for house is provided in the form of mortgage loans, that is, it is provided
against the security of immovable property of land and buildings. The suppliers of
house mortgage loans in India are the following institutions such as. The Housing
and Urban Development Corporation (HUDCO), the apex cooperative housing
finance societies and Housing Boards of different states, Central and State
Governments, Life Insurance Corporation (LIC), General Insurance Corporation
(GIC), and a few private housing finance companies and nidhis.
The government provides direct loans mainly to their employees. The shelter
sector of Indian financial system remained utterly underdeveloped till the end of
1980s. But with the establishment of apex institutions like HUDCO, in 1970,
BANK OF MAHARASHTRA in 1977, and the NHB in 1988, it has been getting
impetus. As at national level, HUDCO, BANK OF MAHARASHTRA , NHB, All
Indian Financial
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Institutions, Cooperative Institutions, State Housing Finance Societies, Insurance

Companies, The Central & State Government
housing Boards, Provident fund organizations, Commercial Banks and their

subsidiaries etc. are the major funding organization for housing projects. The brief
description about the premier sources of housing finance is given as follows:
Housing And Urban Development Coopration (HUDCO)
HUDCO was set up on 25th April 1970 as a National Techno—financing

institution in the field of housin g and Urban Development by the Government of
India. It was established with a equity base of Rs. 2 crores, today its Authorized
capital is Rs. 2500 crores and its paid-up capital is of Rs. 2001.90 crores. And the
net worth is of Rs. 3588.55 crores (Provisional). It has been able to mobilize
resources from institutional agencies like LIC, GIC, Banks, and international
agencies like KIW, OECF, ODA, USAID as well as through public deposits. The
principal mandate of the HUDCO is to ameliorate the housing conditions of low
income groups (LIG) and economically weaker Section (EWS). HUCDO’s
housing portfolio covers a wide range of target groups spread all over the country
both in urban and rural areas. HUDCO lays emphasis on the affordable housing
and project lending wherein before lending, housing projects are examined for
financial viability with a motive to ensure full cost recovery
.HUDCO has been trying to reach to the ultimate beneficiaries through State
Parastatals, Development Authories, Local Bodies, Cooperative, Private Sector
Agencies, Special designated agencies and others. HUDCO has its offices in State
Capitals and in many cities also. HUDCO’s lending operations are subject to
market conditions, and it also provides subsidy in its few housing and shelter
programmes where State or Central Govt. provides additional support to it in this
regard.
HUDCO undertakes housing and urban development programmes, the setting up
of new satellite towns, and the setting up of the building materials industries. It
also subscribe the debentures and bonds to be issued by State Housing Boards,
Improvement Trusts and Development Authorities. HUDCO has been playing an
important role in meeting the housing needs in emergency situations of natural
calamities such as earthquake, cyclone, floods, sea-
erosion, Tsunami etc.
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During the Tenth Five Year Plan (2002-07) the HUDCO has assigned the target of
4 Lakh dwelling units in urban areas and 6 Lakh dwelling units in rural areas
annually, this target was under Two Million Housing Programme (2 MHP).
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During Eleventh year Plan period (2007-2012), HUDCO proposes to extend a

larger quantum of assistance for supporting the housing and urban development
requirements in urban and rural areas. The proposals envisage a total sanction of
Rs. 74,596 crores during the plan period for both housing and urban development
programmes. The amount of Rs. 14919 crores have been tentatively identified for
its housing operations and the amount of Rs. 27820 crores proposed to be disbursed
during XI Plan period. The amount
of Rs. 5574 Crores is anticipated for its housing programme.17
2.9 National Housing Bank (NHB)
The NHB was established in 1988 under the NHB Act 1987, to operate as a
principal agency to promote housing finance institutions (HFIs), at both local and
regional levels and to provide financial and other support to them. The setting up
of NHB, a fully owned subsidiary of the Reserve Bank of India marked the
beginning of the emergency of housing finance as a fund based service in country. It
was established with authorized and paid up capital of Rs. 350 crore. The National
Housing Bank had issued Housing Finance Companies (NHB) Directions, 1989,
to every Housing Finance Company in exercise of the powers conferred on it
under the National Housing Bank Act 1987 (53 of 1957).
t had also issued guidelines to housing finance companies on prudential norms on

income recognition, accounting standards, asset classification, provisioning for bad
and doubtful assets, capital adequacy and concentration of credit/investment. The
National Housing Bank act 1987 has been further amended by National Housing
Bank (Amendment) Act 2000 (15 of 2000) further to enable the NHB to safeguard
the interest of depositors and promote healthy and universal growth of Housing
Finance Companies in India.
The functions of the NHB includes the promotion and development of housing
finance institutions on sound and healthy lines, regulation and supervision of
housing finance companies in the matter of acceptance of deposits and providing
refinance facilities to retail lending institutions in order to speed up housing
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construction activity and augmenting housing stock in the country. NHB also
provides direct lending facility to public agencies such as State level Housing
Boards and Area Development Authorities for large scale housing projects, slum
redevelopment projects and other special projects such as housing for earthquake
and cyclone victims.
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CHAPTER –II
PROFILE OF BANK OF MAHARASHTRA
Bank of Maharashtra is a major public sector bank in India. Government of India
holds 87.01% of the total shares.The bank has 15 million customers across the
length and breadth of the country served through 1897 branches as of 5 April 2016.
It has largest network of branches by any public sector bank in the state of
Maharashtra.
Bank of Maharashtra is an Indian bank based in the city of Pune. The bank was
established in the year 1935 with an initial authorized capital worth Rs. 10.00
Lacs, although it became operational in the early phase of the next year. The bank
got nationalized by the Government of India in the year 1969. With a total
number of 1421 branches located all over India as of April 2009, the bank claims
to have the largest number of branches within the state of Maharashtra, among all
the Public Sector banks.
Commonly known as a common man's bank, Bank of Maharashtra adopts a

philosophy of "Technology with personal touch", and follows its motto stating
"One Family, One Bank, Bank of Maharashtra".
Facilities
All the branches of Bank of Maharashtra have been fully computerized, with
Depository services and Demat facilities being offered at 131 branches as of April
2009. The bank aims at increasing its ATM network from 345 to 500 soon, apart
from planning to install Biometric ATMs at some selected branches. Apart from it,
introduction of Phone Banking, Internet Banking and Mobile Banking is also on
the cards.
Other Highlights
Apart from providing regular banking services to the customers, Bank of

Maharashtra has established two Joint Ventures to fulfill its other commitments
towards the general public and society. These Joint Ventures are M-SETI and
Mahabank Info Centre. Mahabank Self-Employment Training Institute (M-SETI)
is an effort initiated by Mahabank Agricultural Research & Rural Development
Fund (MARDEF), a trust run by Bank of Maharashtra receiving help from
National Bank for Rurl Development (NABARD). The institute runs various self-
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employment oriented training courses for the rural unemployed youth from the
districts of Pune, Kolhapur, Satara, Sangli, Nashik, Ahmednagar, Jalgaon, Dhule
and Nandurbar. Mahabank Info Centre is a yet another initiative by Bank of
Maharashtra aimed at providing various retail baking related information to the
customers, and enabling smoother operations for them.
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Head Office
Bank of Maharashtra
Lokmangal, 1501, Shivajinagar, Pune (Maharashtra) - 411 005 Website:
www.bankofmaharashtra.in
Mission
To ensure quick and efficient response to customer expectations. To innovate

products and services to cater to diverse sections of society. To adopt latest
technology on a continuous basis. To build proactive, professional and involved
workforce. To enhance the shareholders’ wealth through best practices and
corporate governance. To enter international arena through branch network. To be
a vibrant, forward looking, techno-savvy, customer centric bank serving diverse
sections of the society, enhancing shareholders' and employees' value while
moving towards global presence. VISION
To be a vibrant, forward looking, techno-savvy, customer centric bank serving

diverse sections of the society, enhancing shareholders’ and employees’ value
while moving towards global presence.
History
The bank was founded by V. G. Kale and D. K. Sathe and registered as a banking
company on 16 September 1935 at Pune. The bank was registered on 16
September 1935 with an authorised capital of ₹ 1 million, and began business on 8
February 1936. Bank's financial assistance to small units has given birth to many
of today's industrial houses. After nationalization in 1969, the bank expanded
rapidly. Narendra Singh who had assumed the office of Chairman and Managing
Director from 1 February 2012, left his office on 30 September 2013 on attaining
superannuation. Sushil Muhnot was the Chairman and Managing Director before
Ravindra Prabhakar Marathe. Ravindra Prabhakar Marathe was the MD and CEO
before A.S. Rajiv. A.S.Rajiv became the managing director and chief executive
officer on 1st December 2018.
Autonomy of the bank
YCMOU Page 20
The bank attained autonomous status in 1998. As a result, the bank has limited
interference of Government bureaucracy in its decision making process and
internal affairs.
Other attributes
 Convener of the State Level Bankers Committee.

 Offers Depository services and Demat facilities at 131 branches.
 Has a tie up with Life Insurance corporation of India and United India
Insurance company for sale of insurance policies.
 Has achieved 100% CBS enabling anytime anywhere banking to its customers.
 Milestones
 1936 :Commenced business on February 8th. • 1938 :Second branch of the bank
was opened at mumbai. • 1945 :Deposits crossed Rs1.00 crore mark. • 1946
:Deposits crossed Rs One crore mark. Formed fully owned subsidiary, The
Maharashtra Executor & Trustee Company.
• 1969 :The bank was nationalized with 153 branches. • 1974 :Deposit base
crossed Rs. 100 Crore mark. • 1978 :Deposits crossed the figure of Rs.500 Crores •
1987 :100th branch of the bank oF opened at Indira Vasahat,pune.
 1991 :Mahabank Farmer Credit Card " was launched.Entered in to Domestic
Credit Card Business.Main Frame Computer installed.Became member of the
SWIFT. • 1998 :The Bank attained autonomous status. • 2000 :Deposits crossed
Rs 10000 crore mark . • 2004 :Bank came up with Initial Public Offering (IPO).–
24% owned by Public. Listed in BSE and NSE.
• 2009 :1444 branches, 345 ATMs.Total business over RS.90,000 crore,902
CBS branches.
• 2011 : First SHG Branch opened in Pune. • 2012 : Inaugurated the Bank’s
1624th branch at Rajgambiram on 25.08.2012.
 Awards
 • Bank of Maharashtra awarded “Best Banker – Customer Friendliness” for
2012 by The Sunday Standard : 2012
 Received the Dun & Bradstreet – Polaris Financial Technology Banking Award
2012 as Best Public Sector Bank under the category “Asset Quality”: 2012
YCMOU Page 21
Business Profile
Bank of Maharashtra is an Indian bank based in the city of Pune. The bank
wasestablished in the year 1935 with an initial authorized capital worth Rs. 10.00
Lacs,although it became operational in the early phase of the next year. The bank
gotnationalized by the Government of India in the year 1969. With a total number
of 1421 branches located all over India as on April 2009, the bank claims to have
the largestnumber of branches within the state of Maharashtra, among all the
Public Sector Banks.Commonly known as a common man's bank, Bank of
Maharashtra adopts a philosophyof "Technology with personal touch", and
follows its motto stating "One Family, OneBank, Bank of Maharashtra".
Facilities
YCMOU Page 22
All the branches of Bank of Maharashtra have been fully computerized,

withDepository services and Demat facilities being offered at 131 branches as of
April2009. The bank aims at increasing its ATM network from 345 to 500 soon,
apart from planning to install Biometric ATMs at some selected branches. Apart
from it,introduction of Phone Banking, Internet Banking and Mobile Banking is
also on thecards
Other Highlights
Apart from providing regular banking services to the customers, Bank of
Maharashtrahas established two Joint Ventures to fulfill its other commitments
towards the general public and society. These Joint Ventures are M-SETI and
Mahabank Info Centre.Mahabank Self-Employment Training Institute (M-SETI)
is an effort initiated byMahabank Agricultural Research & Rural Development
Fund (MARDEF), a trust run by Bank of Maharashtra receiving help from
National Bank for Rurl Development
(NABARD). The institute runs various self-employment oriented training courses

for the rural unemployed youth from the districts of Pune, Kolhapur, Satara,
Sangli, Nashik, Ahmednagar, Jalgaon, Dhule and Nandurbar. Mahabank Info
Centre is a yet another initiative by Bank of Maharashtra aimed at providing
various retail baking related information to the customers, and enablingsmoother
operations for them
From the chairman and managing director

It gives me immense pleasure to interact through this Web Site of Bank of
Maharashtraand I take this opportunity to share with you a few salient features of
our strength. It isour ten million clientele whose valuable support and patronage
facilitated the success of this well known institution.
I w ou ld l i k e t o r e c a l l a nd s ha r e w it h yo u t ha t t h is g r e a t i ns t i t u t i o
n w a s f ou nd e d w a y back in September 1935 by a group of dedicated persons of
small means but with agreat vision and wisdom.The objectives behind establishing
Bank of Maharashtra were to mobilize the savingsof household and extend
financial support to persons of small means who were then notconsidered for
credit facilities by banks.
In a nutshell, the philosophy of founder fatherso f t h e B a n k w a s s o m e t h i n g m

or e t ha n w ha t ha s b e e n e m p ha s iz e d a b ou t t h e r o le o f Public Sector
YCMOU Page 23
Banks in the economic upliftment of rural poor and neglected segments of the
society.Right from its inception the Bank has continued to play a vital role in
carrying throughthis philosophy and has always been in the forefront in extending
helping hand to theweakest of the weaker sections besides providing banking
services to all the business,corporate, institutional and personal segments.Down
the stream over more than 70 years,
YCMOU Page 24
banking industry has witnessed sea changea nd t he B a n k c ou ld s u c c e s s fu l l

y s u s t a i n a nd fa c e t h e e m e r g i ng c h a l le ng e s i nc lu d i n g smooth transition
in the era of banking sector reforms which were initiated in the year 1992.
The Bank has been continuously making profits for many years.T he o v e r w h e
lm i n g s u p p or t a nd l o ya l t y o f t e n m i l l i o n c l i e nt e le ha s g i ve n u s a d
d e d strength from time to time and enabled this Bank to establish its network of
more than1300 branches spread over 22 States and 2 Union Territories, thus
giving unique statusof an All India Bank. This network is being expanded to cater
to the banking needs of u nd e r b a n ke d a r e a s . A s t he b a n k i n g i nd
u s t r y is u nd e r g o i n g r a p i d t r a ns f or m a t i o n a nd i n f u s i o n o f s t a t e - of-
t h e - ar t t e c h n o l og y i n e x t e nd i ng s e r v i c e s is t he or d e r o f t he d a y, B
a n k o f M a ha r a s ht r a is n o e x c e p t i o n. W it h t he e ve r i n c r e a s i ng v o lu
m e o f b u s i n e s s , number of clientele and their expectations of high quality
service, the Bank have been
adopting latest technology to render cost-effective and customer-friendly products
andservices without losing its “Personal Touch ".We have an ATM network
operated through VISA Debit card across the country.
This network is being continuously expanded. We have embarked on a very
important technological initiative viz., Core Banking Solutions which is targeted
to transform our Bank totally. It is our constant endeavour to regularly upgrade
our skills and technology and we are eager to interact with as many well wishers
as possible. The bank is proactive in revising its interest rates on deposits for the
benefit of the customers. The Bank's objective is to continuously modify its
existing products and introduce new products to meet changing needs of the
customers. Recently we have started new services like Banc assurance in
collaboration with LIC of India and United India Insurance Co Ltd and Foreign
Inward remittances services through Western Union Money Transfer.
Deposit Schemes
•Mahasaraswati Scheme
• Mixed Deposit Scheme
• Mahabank Lok Bachat Yojana
• Mahabank Unit Deposit Scheme
• Sulabh Jama Yojana
YCMOU Page 25
Credit Facilities
• Educational Loans
• Housing Finance Scheme
• Mahabank Adhar Scheme
YCMOU Page 26
Banking Services
• ATM
• Credit Card
Demat Services
• Distribution of Mutual Funds NRI Services
• Techno Products
• Add-on Services
CHAPTER –III
CONSUMER BEHAVIOUR & A CONCEPTUAL DISCUSSION
Consumer behaviour can be broadly classified as the decisions and actions that
influence the purchasing behaviour of a consumer. What drives consumers to
choose a particular product with respect to others is a question which is often
analysed and studied by marketers. Most of the
YCMOU Page 27
selection process involved in purchasing is based on emotions and reasoning. The

study of consumer behaviour not only helps to understand the past but even
predict the future.
We conducted a survey across the geographies of India covering varied

demographics of the consumers regarding their buying behaviours when they opt
for purchasing a loan or a financial product.
Our survey covered all the factors which the customer consider while buying a
loan or financial services. The details of factors covered in the survey are as under
AGE BRACKET
The respondent were from different age brackets, for the convenience to research
we divided our age in 4 brackets like 18-25 years, 26-40 years, 41-60 years and
above 60 years. The age wise response we received were as mentioned.
50% of the respondents were from the age bracket of 26-40 years, the most
potential age bracket where Banks and NDFC can target to sell their loans and
financial services. 25% of the respondents were among the age bracket of 18-25
years which is again a big potential age bracket to target.
EMPLOYMENT STATUS
We divided the employment status as Self-Employed, Salaried and un employed.

58% of salaried preferred to buy loans and financial products against 34% of self
employed, though both the segments are potential customers to sell loans and
financial products.
PREFERENCE OF FINANCIAL SERVICE PROVIDER
We surveyed a direct question “Where does the customer prefers to take loans
from”?. The categories were Banks or NBFC. 75% of the respondents preferred to
take a loan from Banks as against 25% from NBFC. While banks and non-
banking financial companies (NBFC) both are key financial intermediaries that
offer similar services to the customers. Its quite evident that most of the customers
YCMOU Page 28
wants to take loans from Banks, just because of their branding, NBFC too are
governed by RBI but have certain relaxation , all NBFC’s are working to expand
their geographical reach to service the potential customer and are giving a stiff
competition to Banks.
YCMOU Page 29
PREFERENCE ON LOAN TYPE
55% of the respondent preferred to take a Home loan, 18% preferred to take Loan
against Property and Business loan, this category specifically includes the self
employed customers, only 9% respondent showed interest in Personal loans. It
should be noted that the most preferred loan among the customers is home loan,
though the preference for LAP and BL to is increasing, if we see the combine
percentage of LAP and BL, it is around 36% which is not very far off the
preference of Home loan.
MOST IMPORTANT FACTOR WHILE TAKING LOAN
We segregated difference factors which customer consider while taking loan or

financial services, such as loan amount , Processing Fees, loan service provider
and Interest rates. The most important factors which the customer consider while
taking the loan is the Interest Rate. 50% of the respondents preferred Interest rate
over any other factor. 22% each votes were given to the loan service provider and
processing fee, which means that if NBFC are competitive in terms of Interest rate
and processing fees , they too can attract a large customer base to sell their
financial products, irrespective that 75% of customers prefers to take loans from
Banks. Only 7% votes were given to the loan amount as the most important factor
while taking a loan.
PREFERENCE ON MEDIUM TO APPLY FOR A LOAN
Taking a home loan is easier said than done. Though in today’s scenario every
Bank & Financial institution is eager to lend but getting a loan sanctioned can be
a difficult task. Though it may seem all banks are eager to lend, getting a loan
sanctioned can be a tedious task. Taking a home loan is easier said than done.
Also the awareness among the customer pertaining to financial products is also
very limited, basis this we checked for their preference to apply loan. A whopping
42% votes were given to applying loan through a mortgage broker who has a
multiple loan options as per the customer’s requirements and at the convenience
YCMOU Page 30
of their time and place. 33% of the respondents prefer apply the loan directly with
their banks with no intermediately in between. 25% of the votes were given to
online application process, where the respondent wanted to compare and apply
online. With the growing technology in the coming time online comparison and
application will take over all the other preference to apply loans.
YCMOU Page 31
SIGNIFICANT OF STUDY
This Study will help us to understand the consumer’s satisfaction about banking
services and products. This study will help banks to understand, how a consumer
selects, organizes and interprets the Quality of service and product offered by
banks. The market is more aware and realistic about investment and returns from
financial products. In this background this study tries to analyze the customer
satisfaction towards banking services in general and Bank of Maharashtra in
particular.
RATIONAL OF STUDY
This is due to relatively straightforward operations of most Maharashtra banks,

their ability to focus on member service as opposed to short-term profit
maximization and the conservative nature of its executives and their regulators.
The current status and the operational features.
OBJECTIVE OF THE STUDY
 To understand the major attributes of customer satisfaction.
 To determine the main factors influencing the level of customer satisfaction in

Bank of Maharashtra.
 To assess the level of customer satisfaction on the quality of service provided
by the Bank of Maharashtra.
 To study consumer perception about the Bank of Maharashtra.
HYPOTHESIS
 Real home loan interest rate has a negative effect on the demand for home
loans
 Income has positive effect on the demand for home loans
YCMOU Page 32
 Urbanization has a positive impact on the demand for home loans
 Customise of bank of Maharashtra , Amravati all satisfied with operational

services
YCMOU Page 33
RESEARCH METHODOLOGY
Research Methodology is a way to solve the research problem systematically. It
involves the various steps to find out the solution of an identified problem. It also
clarifies the logic behind the study of the problem. When we talk about research
methodology we not only talk of the research method but also consider the logic
behind the method we use in the context of our research study and explain why
we are using a particular method or techniques and why we are not using other so
the result are capable of being evaluated.
RESEARCH DESIGN
A descriptive study tries to discover answers to the questions who, what, when,
where, and, sometimes, how. The researcher attempts to describe or define a
subject, often by creating a profile of a group of problems, people, or events. Such
studies may involve the collection of data and the creation of a distribution of the
number of times the researcher observes a single eventor characteristic (the
research variable), or they may involve relating the interaction of two or more
variables.
SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the
present study, 100 respondents were selected at random. All the 100 respondents
were the customers of Amravati City of Bank of Maharashtra Branch.
SAMPLING METHOD
A sample is a representative part of the population. In sampling technique,

information is collected only from a representative part of the universe and the
conclusions are drawn on that basis for the entire universe.
PRIMARY DATA
Primary data are those collected by the investigator himself for the first time and
thus they are original in character, they are collected for a particular purpose. A
YCMOU Page 34
well-structured questionnaire was personally administrated to the selected sample
to collect the primary data.
YCMOU Page 35
SECONDARY DATA
Secondary data are those, which have already been collected by some other persons
for their purpose and published. Secondary data are usually in the shape of
finished products.
LIMITATION
2. The study covered only geographical boundaries of Amravati city.
3. Due to the problem of illiteracy some house loan applicants and loan takers
could not respond to questionnaire properly
4. The study is limited for last one year.
5. Responded not respond properly .
CHAPTER -III
DATA ANALYSIS AND INTERPRETATION
Loan and advances sanction by Bank of Maharashtrain past 5 years.
Particulars Loans and

Advances
(Amt in
cr...)
YCMOU Page 36
2008-2009 580236.48
2009-2010 667026.91
YCMOU Page 37
2010-2011 800497.29
2011-2012 920691.91
2012-2013 1093508.58
1200000
1093508.58
1000000
920691.91
800497.29
800000
667026.91
580236.48
600000
Series1
400000
200000
0
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
Interpretation:
From year 2009-10 the loan and advances has been increased by 14%. In year
2010-2011 increased by 20%. In year 2011-2012 increased by 15%. And in year
2012-2013 increased by 18.7%. There is a rapid growth in loans and advances
that shows the Bank of Maharashtrais helping the financial needy people by
providing loans and advances at the low rate of interest.
YCMOU Page 38
Q1. On which bank you depend for your regular transaction?
BANK OF 10%
MAHARASHTRA
ICICI 4%
HDFC 80%
OTHER 6%
TOTAL 100%
H
D
F
C
B
A
N
K
O
F
M
A
H
A
R
A
S
H
T
R
A
YCMOU Page 39
RESPONSES OF PEOPLE IN %
4%
10% 6%
I
C
I
C
I
8 O
0 t
% h
e
r
Interpretation:
It has been observed that approximately 80% correspondents are using the service
of BANK OF MAHARASHTRA for their daily transaction, around 10% of people
are using ICICI Bank for their transaction and only 4% & 6% of people are using
HDFC & other Bank service respectively in Bangalore. It also shows that BANK
OF MAHARASHTRA have the highest market position in Bangalore as per my
sample.
YCMOU Page 40
Q2. Are you aware of products & services provided by BANK OF

MAHARASHTRA?
YES 82%
NO 18%
TOTAL 100
No. of people aware of product and

services provided by BANK OF MAHARASHTRA
NO
18%
YES
82%
Interpretation:
From the above data it is clear that most of the customers (around 82%) of
Bangalore have the idea about the product & services of BANK OF
MAHARASHTRA, the rest 18% have the idea about the product they are using.
In this 18% most of the people are from typical rural area.
YCMOU Page 41
Q3. If yes are you aware of the advance products (Loan segments) of BANK
OF MAHARASHTRA?
YES 94%
NO 6%
TOTAL NO OF 100%
PEOPLE
% OF PEOPLE
6%
YES
NO
94%
Interpretation:
It is clear that most of the people have the idea about the advance product of
BANK OF MAHARASHTRA. Almost all the 95% people who have the idea
about the advance product are the user of BANK OF MAHARASHTRA product
& service.
YCMOU Page 42
Q4. Which bank you prefer for taking loans?
BANK OF
MAHARASHTR 82%
A
ICICI 8%
HDFC 6%
OTHER 4%
TOTAL NO OF 100%
PEOPLE
B
A
N
K
O
F
M
A
H
A
R
A
S
H
T
R
A
I
C
I
C
I
YCMOU Page 43
6% SATIFACTION FOR HOME LOAN BUYERS OF
A STUDY ON CONSUMER
MAHARASHTRA 8%BANK WITH SPECIAL REFERENCE TO AMRAVATI CITY
H
D
F
C
8
O
2
T
%
H
E
R
Interpretation:
According to my sample size 82% of people prefer BANK OF MAHARASHTRA
for loan product, but some people prefer ICICI, HDFC or OTHER Bank for loan
because they have their account in different bank & it is easier for them to get
loan from their bank & it easier for them to pay the interest because it is less as
compare to other bank because they are the customer of that bank.
YCMOU Page 44
Q.6 Which loan product of BANK OF MAHARASHTRA you have

used?
HOME 55% (22)

LOAN
EDUCATIO 20% (8)
NAL LOAN
CAR LOAN 12.5% (5)
PERSONAL 7.5% (3)

LOAN
OTHER 5% (2)
TOTAL NO 40
OF PEOPLE
8 5%
%
1 H
O
3
M
% E
L
O
A
N
ED
U
C
AT
IO
N
AL
L
O
A
N
55% C
2
A
0
R
% L
O
A
N
PE
YCMOU Page 45
RS
O
N
A
L
L
O
A
N
O
T
H
E
R
Interpretation:
From the sample size 82% of people are using the BANK OF MAHARASHTRA
loan product. From the 40 people 55% of people took home loan from BANK OF
MAHARASHTRA. 20% of people took education loan for their children, 13% of
people took car loan from BANK OF MAHARASHTRA. Some of the customer
took 2 type of loan from BANK OF MAHARASHTRA like both car &
educational loan and home & car loan. 8% of people took personal loan. And 5%
of people took other loans.
YCMOU Page 46
Loan products used by customer
Q7. What do you feel about the services providing by BANK OF

MAHARASHTRA in advance product?
Bad 0 (
% 0
)
Satisfactory 6 (
% 3
)
Good 5 (
4 2
% 7
)
Excellent 4 (
0 2
% 0
)
TOTAL NO. OF 50
PEOPLE
CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE

BY BANK OF MAHARASHTRA IN ADVANCE PRODUCT
0%
6%
40%
BAD
SATISFACTORY
54%
GOOD
EXCELLENT
Interpretation:
From this it is clear that the service provide by BANK OF MAHARASHTRA in
its advance product is good in between the customer. All of them satisfy with the
product provide by BANK OF MAHARASHTRA. 55% of people said that the
service provide by BANK OF MAHARASHTRA is good & 43% said it is
excellent & just 2% of people said that it is satisfactory.
YCMOU Page 47
Q8. Which features do you like most in Loan segments of BANK OF

MAHARASHTRA?
LESS PAPER WORK 10% (5)
ATTRACTIVE 40% (20)

INTEREST RATE
SIMPLE AND FAST 18% (18)
PROCESSING
LONGER 32% (16)

REPAYMENT
PERIOD
TOTAL NO. OF 50
PEOPLE
S
18% I
M
P
L
E
A
N
D
F
A
S
T
P
R
O
C
E
S
S
I
N
G
L
O
N
G
E
R
R
YCMOU Page 48
E
10% P
LESS PAPER WORK
A
Y
32% M
E
N
ATTRACTIVE INTEREST RATE
T
40% P
E
R
I
O
D
Interpretation:
Most of the people like the attractive interest rate & longer repayment period. It’s
easier for people to repay the whole loan amount with its interest with low interest
rate and with longer repayment period.
YCMOU Page 49
Q9. For how many years do you want to avail Loan?
Less than 1 16% (8)

year
1 to 3 years 34% (17)
3 to 5 years 20% (10)
More than 5 30% (15)

year
TOTAL NO. 50
OF PEOPLE
number of years for loan repayment
16%
30%
Less than 1 year
1 to 5 years
34%
20% 3 to 5 years
More than 5 years
Interpretation:
From this we get to know that 34% of people like to repay their loan within 1 to 5
years. And 30% person who took Home loan they prefer More than 5 years. And
20% of people who runs small business like to repay the loan amount in 3 to 5
years.
YCMOU Page 50
Q10. How do you prefer to pay your Installments?
Monthly 20% (10)
Quarterly 34% (17)
Annually 46% (23)
TOTAL NO. 50
OF PEOPLE
M
o
n
t
h
l
y
payments in installments Q
u
a
r
t
e
r
20% l
y
46% 34 A
nnu
% all
y
Interpretation:
Form this sample size we got to know that 46% of people prefer to repay their
YCMOU Page 37
Loans in Annual installments basis. 34% and 20% of people like to repay the loan
amounts in Quarterly and Monthly respectively.
YCMOU Page 38
CHAPTER –V
FINDING CONCLUSION & SUGGESTION
FINDINGS:

All of Bank Of Maharashtra customers are satisfied with the services provided
by the bank.

Many of these customers satisfied with the low interest rate and longer
repayment period of the advance product.

Most of the customers at Amravait prefer to take loan from .

Approximately 40% of advance product users said that the service of Bank Of
Maharashtra in advance product is excellent.

A response from customer care is so clear & good.

Many customers have no time to call customer care so that they are not able to
know about the service & features of Bank Of Maharashtra advance product.

Most customers are shifted from other bank’s advance product to Bank Of
Maharashtra because of hidden charges, high interest rate, less repayment period.

Government employees are more concern than private employees for advance
product.
YCMOU Page 39
CONCLUSION :

Customer awareness program is required so that more people should attract
towards advance product.

If there are any kind of hidden charges than that must disclose to customer
before giving loan to them.

Bank Of Maharashtra must take some steps so that
customers can get their loan in time. Like phone verification by customer care that
one customer is got their loan on time or not
.It must be before a certain date so necessary steps can be taken.

Bank Of Maharashtra should more concern about physical verification rather
than phone verification so it will avoid fraud or cheating.

Advance product selling agents must not give any type of wrong information
regarding advance product.

Bank Of Maharashtra customer care should more concern about the fastest
settlement of customer problems.

Before deducting or charging any monetary charge Bank Of Maharashtra must
consult with customer.

It is the duty of the bank to disclose all the material facts regarding advance
product, like interest charged, repayment period, other types of charges, etc.
YCMOU Page 40
SUGGESTION

The bank should increase the period for repayment of loan.

Bank Of Maharashtra must focus on Segmentation based on customer
knowledge Product offering based on customer demand.

Bank Of Maharashtra must take feedbacks of customers regarding features &
services.
YCMOU Page 41
Questionnaire
Date:
Name: Occupation:
Q1. On which bank do you depend for your regular transactions?
(a) State Bank of India [ ] (b)

ICICI Bank [ ]
(c) Bank of Maharashtra [] (d)

Other Bank [ ]
Q2. Are you aware of the products & services provided by Bank Of Maharashtra
?
(a) Yes [ ] (b) No [ ]
Q3. If yes are you aware of the advanced products (Loan segments) of Bank Of
Maharashtra ?
( ] (b) No [ ]
a
)
Yes
[
Q4. Which bank do you prefer for taking loans?
(a) State Bank of India [ ] (b)

ICICI Bank [ ]
(c) Bank of Maharashtra [] (d)

Other Bank [ ]
Q.6. Which loan product of Bank Of Maharashtra have you used?
( H [ ] (b) EDUCATIONAL ]
a O LOAN [
) M
E
L
O
A
N
YCMOU Page 42
( C [ ] ( P [ ]
c A d E
) R ) R
S
L O
O N
A A
N L
L
O
A
N
( O [ ]
e T
) H
E
R
S
Q7. What do you feel about the services providing by Bank Of
Maharashtra on Advance products?
( E [ ] ( [ ]
a x b
) c )
e G
l o
l o
e d
n
t
( S [ ] ( B [ ]
c a d a
) t ) d
i
s
f
a
c
t
o
r
y
YCMOU Page 43
Q8. Which features do you like most in Loan segments of Bank Of Maharashtra ?
(a) Less paper Work [ ] (b) Attractive Interest Rates

[ ]
(c) Simple and fast Processing [ ] (d)
(a) Less than 1year [ ] (b) 1

to 3 years [ ]
(c) 3 to 5 years [ ] (d)

more than 5 years [ ]
Q10. How do you prefer to pay your installments?
(a) Monthly [ ] (b) Quarterly [ ]
(c) Annually [ ]
YCMOU Page 44
REFERENCES:
BOOKS
 Kotler Philip, marketing management, (Pearson education, 12th edition)
 Malhotra K. Naresh, marketing research (An applied orientation), Research
design, (Prentice hall of India pvt. 5th edition)
 Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing
Integrated customer Focus across the Firm”
 (4th Edition) M.K. Rampal : Service Marketing
WEBSITES
 www.Bank of Maharashtra bank.com
 www.Bank of Maharashtra india.com
 www.wikipedia.org
 www.marketresearch.com
YCMOU Page 43
YCMOU Page 43

Dindekar Project Maharashtra Bank

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Finance is the life blood of trade, commerce and industry.

Characteristics / Features of a Bank

 Individual / Firm / Company

 Payment and Withdrawal

 Agency and Utility Services

 Profit and Service Orientation

 Ever increasing Functions

(a) Home Loans

(b) Home Extension Loans

(c) Home Improvement Loans

(d) Land Loans

(e) NRI Loans

(f) Home Equity Loans

(g) Short Term bridging Loans

Eligibility criteria of housing finance in India.

The following table shows some acceptable relationship of co-applicants for

(a) Husband – Wife (Yes)

(b) Parent – Son (if only son) (Yes)

(c) Parent – Daughter (if only daughter) (Yes)

(e) Brother – Sister (No)

(f) Sister – Sister (No)

(g) Parent – Minor Child (No)

General Terms and Conditions of a Housing Loan

1. The loan to value ratio cannot exceed a particular percentage. This

2. The maximum tenure of the loan is normally fixed by HFIs.

3. The installment that applicant pay is normally restricted to about 40

5. An applicant will eligible for a loan amount, which is lowest as per

6. Most HFIs consider applicant’s profile before they judge his

7. Some HFIs insist on guarantees from other individuals for due

10. The disbursement of loan takes place as per progress of

13. The principal is amortized either an annual reducing or monthly

Different kinds of charges applicable to Housing Loan Products.

It is charges on the principal on either annual reducing method or monthly

for any of these types.

HFIs that go in for a registered mortgage pass these charges on to an applicant.

Delayed Payment Charges:

PDC Swapping Charges:

(a) Salary slips for last three months.

(b) Appointment letter

(c) Salary Certificate

(d) Relationship Agreement, if appointed as consultant.

(e) Form 16 issued by an employer on applicant’s name.

(g) Last three years Balance Sheets duly attested by a Chartered

2. Proof of Employment: it may be

(a) Identity Card issued by employer.

(b) Visiting Card

3. Employer’s Details (in case of Private Limited Companies) Profile of

signed by a Senior Person in the organization comprising:

(a) Name of Promoters / Directors

(b) Background of Promoters / Directors

(c) Nature of business activity.

(d) Number of Employees

(e) List of branches / factories

(f) List of Suppliers

(g) List of Clients / customers

(h) Turnover of employer

Proof of Age (any one of the following)

(b) Voter’s ID Card

(c) PAN Card

(d) Ration Card

(e) Employer’s Identity Card

(f) School Leaving Certificate

(g) Birth Certificate