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Retail lending is one of the main functions of any Bank. The main principles of lending are
safety, liquidity, and profitability and retail lending helps bank in achieving these factors as NPA
will be comparatively low under retail lending schemes. Banking, as defined in Banking
Regulation Act, is acceptance of deposits for the purpose of lending and investment and not
repayable otherwise than on demand.

The Retail lending schemes, it is useful for middle income, low income, and corporate people.
Know all the banks maximizing his profit on the basic lending money in a various schemes like
personal loan, car loan, home loan, and education loan. Retail lending is the practice of loaning
money to individuals rather than institutions. Banks, credit unions and loan associations do retail
lending. These institutions make loans for automobile purchases, medical care, home repair,
vacation and other consumer uses.


Co-operative banks are small-sized units organized in the co-operative sector, which operate
both in urban and rural regions. These banks traditionally centered on communities, localities
and work place groups and they essentially lend to small borrowers and businesses. The term
Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative
banks located in urban and semi-urban areas.

Today the co-operative banks in rural areas mainly finance agricultural based activities including
farming, cattle, milk, hatchery, personal finance, etc.

Along with some small-scale industries and self-employment driven activities, the co-operative
banks in urban areas mainly finance various categories of people for self-employment, industries,
small-scale units and home finance.


Main objective:
To understand the Retail lending Schemes of Co-operative bank and Customer Perception
towards Retail lending schemes and towards Kota Co-operative Agriculture Bank, Kota.
Sub objective

• To compare and measure the efficiency of cooperative banks.

• Study the awareness of customers towards Retail products of Banks.
• To know different type of loans preferred by different sets of customers.
• To study the mode of recovering loan.
• Comparison of Bank interest rate and to know the difference in retail loan strategy an


• To know the lending practices of cooperative banks in India

• Availability of retail lending products of the cooperative bank.
• To understand the performance of cooperative bank.


The scope of research is vast, but due to constraint of both time and resources, the research
organized in area of Kota, Udupi District. The sample size is 100 people. The study organized
mainly in household survey, shops, etc.


The research will take into consideration two sources

Primary Source

The primary source of this study will be through a questionnaire, which will be further process
with SPSS and analysed with the help of tables, charts and statements. The methodology used to
collect this information is questionnaire method.
Secondary Source

Secondary sources will include all the studies done partially relating to this field of study, this
will include webpage references, availed data etc. Further, to analyse the sample of 100
respondents the analysis techniques like Graphs, Tables analysis used.


The data collected through different sources edited, tabulated manually and appropriate graphs
and statistical techniques used to interrupt the results.


• Sample size is too small to substantiate the entire population, thus may hamper the
application of the analysis.
• Geographically this study covers a very small area; therefore, the probability of the
relationship may not be appropriate.
• The other factors that may hinder the quality of the analysis are religion, culture, mood of
the person when the study conducted.
• The study for restricted all common people who are taking loan in other bank or financial

• The period of the research was limited.

Despite these limitation measures has taken to ensure the optimum quality of the study.


Various studies conducted and numerous suggestions sought to bring effectiveness in the
working and operations of financial institutions.

Bhatia (1978), in his study titled, “Banking Structure and Performance − A Case Study of the
Indian Banking System” attempted to analyse the economic performance of Indian banking
system as reflected by its output, price and profitability during the period 1950-68. He found that
profit of the Indian banking system during the said period had an upward trend.

The study suggested deregulation of interest rates to enhance the profitability of financial
institutions and to ensure a competitive banking environment, which would ultimately result in
better services.

Kalyankar (1983) in his study titled, “Wilful Default in Loans of Co-operatives” examined the
trends in deposits, share capital, working capital, loans outstanding, advances, overdues and
recoveries at the district level financing institutes. Socioeconomic factors responsible in
projecting and promoting future development in the operations and approaches of the co-
operative credit organizations also considered to examine the specific progress made by District
Co-operative Banks. The study revealed that the cropping intensity, irrigation facility and
working capital of the societies were the major factors for explaining overdues at primary
agricultural credit society’s level. The socio-economic factors were not responsible for
increasing overdues at the borrowers’ level, but overdues mainly mounted due to the non-
economic factors in case of wilful defaulters.

Devadas (1987), in his book titled, “Co-operative Banking and Economic Development” studied
the role of Assam Co-operative Apex Bank Ltd. in economy of the State. He found that apart
from working as a commercial bank it had to discharge three other functions, i.e., to finance
primary credit societies, to act as banking Centre for primary societies, to undertake supervision
of primary societies. He found that bank had not been able to achieve much in these three fields
due to lack of adequate support from government of the state.

Narsimham Committee (1991) emphasized on capital adequacy and liquidity, Padamanabhan

Committee (1995) suggested CAMEL (capital adequacy, asset quality, management, earnings,
liquidity and systems and control) rating (in the form of ratios) to evaluate financial and
operational efficiency.

Tarapore Committee (1997) talked about Non-performing assets and asset quality, Kannan
Committee (1998) opined about working capital and lending methods, Basel committee (1998
and revised in 2001) recommended capital adequacy norms and risk management measures.
Kapoor Committee (1998) recommended for credit delivery system and credit guarantee and
Verma Committee (1999) recommended seven parameters (ratios) to judge financial
performance and several other committees constituted by Reserve Bank of India to bring reforms
in the banking sector by emphasizing on the improvement in the financial health of the banks.

Bhaskaran and Josh (2000) concluded that the recovery performance of co-operative credit
institutions continues to unsatisfactory which contributes to the growth of NPA even after the
introduction of prudential regulations. They suggested legislative and policy prescriptions to
make co-operative credit institutions more efficient, productive and profitable organization in
tune with competitive commercial banking.

Singh and Singh (2006) studied the funds management in the District Central Co-operative
Banks (DCCBs) of Punjab with specific reference to the analysis of financial margin. It noted
that a higher proportion of own funds and the recovery concerns have resulted in the increased
margin of the Central Co-operative Banks and thus had a larger provision for non-performing

Dutta and Basak (2008) suggested that Co-operative banks should improve their recovery
performance, adopt new system of computerized monitoring of loans, implement proper
prudential norms and organize regular workshops to sustain in the competitive banking

Chander and Chandel (2010) analysed the financial efficiency and viability of cooperative bank
and found poor performance of the bank on capital adequacy, liquidity, earning quality and the
management efficiency parameters.


The entire study goes through various chapters such as introduction, industry profile, company
profile, conceptual background, data analysis and findings, suggestions and conclusion.

In the chapter on introduction, coverage given to objectives of the study, scope of the study,
methodology and so on.
The concept of retail lending brought forth clearly in terms of definition and present day
understanding. Banking as we know forms a part of Indian economy. In the industry profile,
glimpses on types of banks, history of banking are covered. It also takes care of challenges faced
by Indian Banking Industry.

The chapter on company profile traces the highlights of the Bank especially with regard to its
history, performance evaluation and the milestones and branch expansion of Kota Co-operative
Agriculture Bank and it included competitors of the Bank.

The chapter on data analysis and interpretation captures data and comparison pertaining to
various Bank interest rate and eligibility pattern. The major findings from the project include
findings about the performance of the Kota Co-operative Bank and customer perception in rural
areas about retail lending schemes.

In the chapter summary of findings and conclusion, the major findings such as greater demand
for Co-operative Banks in rural area for agricultural loan, housing loans vehicle loans,
educational and personal loans have in Kundapur region. Customers having very good opinion
about service of Kota Co-operative Bank have been highlighted and some recommendations are
been given to improvise in certain areas of concern.


The English word ‘Bank’ is derived from Italian word ‘Banco’, the Latin word ‘Bancus’ and the
French word ‘Banque’, which means a bench and also from the German word ‘Banck’, which
means a joint stock fund or a common fund rose from a large number of members of the public.

The Banking Company in India has defined in the Banking Companies Act, 1949 as, “Which
transacts the business of banking which means accepting for the purpose of lending or
investments of deposits of money from the public repayable on demand or otherwise
withdrawals by cheque, draft and order or otherwise.”
Since times immemorial, the Banker has been an indispensable pillar of the Indian society. Some
kind of banking business carried in India even during Vedic period. Before the formation of the
joint stock banks, indigenous bankers and moneylenders offered Banking services. The ‘Manu
Smriti’ and Buddhist literatures also provide ample evidence on the existence of such a Banking
system in our country. In 1770, Messrs. Alexander and Co. an Agency House established the
Bank of Hindustan.

By the 1900s, the market expanded with the establishment of Banks like Punjab National Bank,
in 1895 in Lahore; Bank of India, in 1906, in Mumbai - both of which were founded under
private ownership. Indian Banking sector formally regulated by Reserve Bank of India from

In 1948, the Reserve Bank of India, India's central Banking authority, nationalized, and it
became an institution owned by the Government of India. In 1949, the Banking Regulation Act
was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and
inspect the Banks in India."

The Banking Regulation Act also provide that no new bank or branch of an existing bank may be
opened without a license from the RBI, and no two Banks could have common directors.
However, despite these provisions, control and regulations, Banks in India except the SBI,
continued to be own and operated by private persons. This changed with the nationalization of
major Banks in India on 19th July 1969.

The Indian Banking System

The formal Banking system in India comprises the RBI, Commercial Banks, Regional Rural
Banks and the co-operative Banks. In the recent past, private non-Banking finance companies
also have been active in the financial system, and regulated by the RBI.

Reserve Bank of India

The RBI, established in 1935, is the central Banking and monetary authority in India managing
the country’s money supply and foreign exchange and serves as a Bank for the Government of
India and for the country’s commercial Banks. The RBI issues guidelines on various areas
including exposure standards, income recognition, asset classification, provisioning for non-
performing assets, investment valuation and capital adequacy standards for commercial Banks,
long-term lending institutions and non-Bank finance companies.

Public Sector Banks (PSBs)

The Banking sector in India characterized by the predominance of Public Sector Banks. They
include the State Bank of India and its associate Banks, 19 nationalized Banks and 196 regional
rural Banks.

Private Sector Banks

In July 1993, as part of the Banking sector reform process and as a measure to induce
competition in the Banking sector, the RBI permitted entry by the private sector into the Banking

Foreign Banks

There are several foreign Banks operating in India through several branches. Some foreign
Banks have also set up representative offices in India. Foreign Banks operate only in urban cities
and metropolitan cities.

Co-operative Banks

Co-operative banks play an important role in meeting the credit requirements of both the urban
and rural India. Though in the bank dominated financial system, these institutions account for a
small share in the total credit they hold a significant position in credit delivery as they cater to
different geographic locations and demographic categories. The wide network of co-operative
banks, both rural and urban, supplements the commercial banking network for deepening
financial intermediation by bringing a large number of depositors/borrowers under the formal
banking network. Demographically, these institutions have enabled access to financial services
to low and middle-income groups in both rural and urban areas.

Structure of Co-operative Banks (as at end of March 2013)

Note- StCBs- State Cooperative Banks, DCCB- District Central Cooperative Banks, PACS- Primary
Agriculture Credit Societies, PCARDBs- Primary Cooperative Agriculture and Rural Development Banks,
UCB- Urban Cooperative Bank

The role of co-operative banks has been commendable in enhancing the inclusiveness of the
financial system. However, the financial performance of these institutions particularly rural co-
operatives has been sub-par partly owing to operational and governance-related issues. A number
of committees have examined the reasons for their poor financial performance and have
suggested remedial measures from time to time. Initiatives for revitalising co-operatives have
been on going.

There are 1,606 UCBs and 93,550 rural co-operative credit institutions, including short-term and
long-term Cooperative banks are operating in India at end-March 2012..

The Indian Banking industry has been undergoing rapid changes reflecting a number of
underlying changes. Liberalization and deregulation witnessed in the Indian markets in the 1990s
have resulted in a spurt in banking activity in India. Banks and financial institutions are
continuously exploring new avenues for increasing their footprint and safeguarding their
margins. The following are the new paradigms in the Indian Banking Industry.
a. Changing nature of Corporate Banking- The corporate Banking business has become
increasingly competitive, with most Banks targeting large corporate clients for loans and fee-
based services. This has caused a fall in margins as well as non-fund business margins. Going
forward, success will hinge on maximizing value from corporate relationships through a range of
product offerings.

b. Retail banking- huge growth potentialities- Traditionally, the retail market has been
overlooked as a Low Cost Deposits segment. However, structural changes in last couple of years
resulted in significant growth in retail lending business.

c. Technology offering the competitive edge- Technology has revolutionized the delivery chains
for financial products and services with ATMs, Home Banking, and Telephone Banking, which
have replaced Banking only at branches. Operating on a strong technology platform is
increasingly becoming imperative for the launch of innovative products and services by Banks in
today’s age.



Undivided Dhakshina Kannada district is hometown for holy places. This gave birth too many
nationalized, commercial banks and cooperative associations. Late Molahalli Shivaraya is the
father of the co-operative sector. Co-operative sector also has its own value and facing
competition from commercial banks.

In Kota, which is located in Udupi district, the cooperative union merged with the four
Cooperative Banks. It started in the name of Kota Co-operative Agriculture Bank, Kota, and a
title from the Madras State Co-operative Act registered in 30-11-1958. Now as per Vaidyanathan
report recommended that, a word 'association' instead of the word 'bank'. This association
popularly called as KOTA CA Bank.

Workspace of the association is limited to only eleven villages. Within a limited workspace, the
association extend the utility and maximum amount of the service to their member.
The most important objectives are mention here.

1) Promote feelings of self-help and co-operation in members.

2) Giving short term, medium term and long-term loans to their members.

3) The main objective of the association is to promote saving attitude with the members.

4) Supply of farm equipment and agricultural machinery.

5) The creation of storage facility for their members farming product.

6) Providing better market for members’ agriculture product.

7) Guiding the farmer members about scientific farming system.

8) Giving loan to the members of the association, the children of members for their higher
education studies.

Business and Trade

Association controlling the delivery system for ration material to customers through its eleven
fair price shops. In 2012-2013, association bought Rs. 97.51 lakhs ration materials sold for
Rs.106.46 lakhs. In the year-end company has a balance of Rs.1.40 lakhs final goods. Members
are having facility, they can store their farming products in warehouses until the products get
good price in the market. They can take a loan on their farming products that stored in
warehouse. The Association consists of four warehouses.


The Association serves for their members in order to be full-fledged twelve branches in their
limited work field. The four branches working its own trading building and eight branches of the
association working in the rented building. The branches supervised by the head office. Eleven
of the fair price are working adequately and fully controlled by association.

The Association's management including nine elected members. Seven members are represents
from the eleven villages, one women's representative and one member is from Scheduled Castes
and Scheduled Tribes representative. Governing Council of the Association held meeting from
time to time about the progress of the operation, often bringing the various plans. For monitoring
their branches, association created an advisory council.

Employee Strength

Association has approved 52 employees in the organisation, in that 48 were working as a

permanent employee.


For CA Bank, all the Banks both public sector and private sector are competitors. The local
financial organization or institutions and the local moneylenders are also competitors.

The main competitors are Karnataka bank, Cooperation bank and Canara bank. Now a day
SCDCC Bank is giving toughest competition to all co-operative banks located in all over
undivided Dhakshina Kannada district.

Development of the CA Bank

No. Particulars 1958 2009 2010 2011 2012 2013

1. Members 640 10468 10959 11479 12232 12366

2. Shares 0.15 90.83 98.47 106.54 115.39 123.04

3. Debtors 1.26 19.48 2233.00 2648.92 3201.85 3791.92

4. Net Profit 0.05 8.07 19.37 26.47 40.35 50.84

5. Loan Recovery (%) --- 91.58% 90.51% 95.26% 96.56% 96.76%

6. Deposit --- 2606.00 3113.00 3824.00 4600.00 5445.00

(Amount in lakhs)

As per 31st March year ending

The bank started their operation in 1958 with 640 a very limited member in their association.
However, it has gradually increased year by year, which is resulted to 12366 members registered
in CA bank association at the end of 2013 March 31st. Also increases in net profit as well as
deposits in the association.

Recognition and Prizes

In 2004, the CA Bank has recognised in state level and in 2005 got national level recognition for
their excellence service in rural area. CA bank has organised 428 Self Help Group in their
working area. This is also one of the greatest achievement of the association.

Comparison of Bank’s Loan Schemes

Personal Loan

Particulars CA Bank Karnataka Bank Corporation Bank Canara Bank

Rate of Interest 16.00% 16.50% 14.50% 14.95%

A member or K-power Corp personal Can budget
a. account holder. Any individual Aged between 21 Aged between
having SB/CA is years and 55 21 years and 58
eligible. years. years.

Above Rs. A professional He/she is Confirmed

b. 25000/- need permanent employees of
surety from 2 employee of reputed PSUs
person. state/central and Joint stock
govt/public limited company.

c. Someone Someone Pensioners -Same-

receiving receiving regular drawing service
regular income. income from rent, pension through
our Bank aged not
pension etc. more than 70.

Tenure period 12 months 12 -60months 24 months 12 months

Processing fee 0.80% 1.00% 1.5% 0.25%

Education Loan
Particulars Rate of Eligibility Tenure Amount

CA Bank India 12.00% A minor student represented Upto 4.5 lakhs

by parent or guardian.

Karnataka Bank India 14.25% -Same- Upto 4 lakhs

14.75% Above 4 lakhs

Abroad 14.75% -Same- Upto 20 lakhs

Corporation Bank India 12.10% Should have secured at least Upto 4 lakhs
60% marks in the previous
13.10% qualifying examination. Above 4 lakhs

Abroad 14.25% -Same- Upto 20 lakhs

Canara Bank India 13.75% Age 16 yrs to 55yrs 50000-400000

Abroad 13.75% -Same- 50000-400000

14.75% 400000-750000

House Loan
Particulars Rate of Eligibility Tenure Period Penalty
interest Amount

CA Bank 16.00% Member or the account Up to Rs 10 15 years 3%

holder. Lakh

Karnataka 10.75% -Same- Up to Rs 1 Cr 15 years 2%


Corporation 10.25% Regular & verifiable Up to Rs 1 Cr 30 years Nil

Bank income.

Canara Bank 10.20% Salaried individuals, Up to Rs 1 Cr 20 years Nil

businesspersons, NRIs
also eligible to avail

Vehicle Loan

Particulars Rate of Eligibility Tenure Tenure Process

interest Amount period charges

CA Bank New car 16.00% A member or account Upto 10 Min-12 0.80%

holder. lakh Max-60

Used car 16.00% A member or account Upto 10 Min-12 0.80%

holder. lakh Max-60

Karnataka New car 11.25% Within the age, limit Upto 50 Min-12 0.1%
Bank of 21 to 55 years in lakh Max-60
case of salaried month

Used car 15.00% An individual who Upto 20 Min-12 0.1%

is an income tax lakh Max-34
holder. month

Corporation New car 10.75% Both salaried and self- Upto 50 Min-12 1.00%
Bank employed people are lakh Max-60
eligible. month
Used car 10.75% Both salaried and self- Upto 20 Min-12 1.00%
employed people are lakh Max-60
eligible. month

Canara Bank New car 10.70% Both salaried and self- No Min-12 0.1%
employed people are upper Max-72
eligible. limit month

Used car 10.70% An individual who 6 lakh. Min-12 0.1%

is an income tax Max-72
holder. month

Analysis and Interpretation

The retail loan studies bring the four type of loans. This is of great help to customers. The home
loan, education loan, personal loan and vehicle loan which makes life of easier to customers and
make customer to afford that thing which he dream to have in future but can buy now when he

• In the shown above table rate of interest for the personal loan of CA Bank is slightly higher
than the public sector bank and most of all the Banks eligibility criteria is same. However,
compare to the Karnataka Bank interest for the personal loan of CA Bank is reasonably
good. Processing charge is comparatively good in CA bank.

• In education, loan compare to all the public and private sector Bank rate of interest is
similarly same. However, in CA Bank giving education loan for 12%, which is lesser than
all banks. The tenure amount is restricted to Rs.4.5 Lakh and this is only for education
within India.
• In the case of home loan rate of interest is low in private and public sector banks, but very
high in CA bank.

• In vehicle loan, the interest is comparatively good in public as well as private sector banks in
both the cases like for new vehicle and used vehicle. CA bank charges very high interest

CA bank charges approximately 16% of interest for all loans. In the case of Education Loan
bank charges 12% for education period plus 1-year grace period, after that bank will charge
16% only. If we considered other loans like agriculture loan and gold loan share is very high
compare to other banks in Kota region. Because gold and agriculture loans are preferred by
farmer. If they need money, they will go and pledge their gold in the bank. CA bank will
give the gold loan within an hour. Agriculture loan is given by CA bank is without interest
and which is for one year and they will get subsidies for their agri-equippments. Therefore,
people prefer CA bank for gold and agriculture loan.

Data Analysis and Interpretation

Table no. 1: The distribution of respondents based on age

Here the objective was to find out the customer profile. This question mainly asked to analyse
the perception of customer in different age group.

Frequency Percent
20-30 11 11
30-50 42 42
50 and Above 47 47
Total 100 100
From the above we can understand that 11% of the respondents are in the age group of 20-30,
42% of them are in the 30-50 age group and 47% of the respondents come under 50 and above
age group.

Table no. 2: The distribution of respondents based on gender

This question mainly asked to analyse the perception of customer in different genders.

Frequency Percent
Male 46 46
Female 54 54
Total 100 100
In this above table we can easily identify 46% samples are male and 54% samples are female
respondent in selected area. Most of the female respondents prefer gold loan.
Table no. 3: The distribution of respondents based on customer preference for loan

Frequency Per cent

Educational Loan 2 2

Vehicle Loan 2 2

House Loan 15 15

Agriculture Loan 20 20
Gold loan 25 25

Personal Loan 36 36

Total 100 100

Present study reveals that majority of the respondents have taken personal loans, gold loan,
agriculture loan, house loan and less respondents prefer, educational and vehicle loans.

Table no. 4: The distribution of respondents based on preferable term of loan

Frequency Percent
More than 5 year 4 4
3 year to 5 year 16 16
1 year to 3 year 22 22
Less than a year 58 58
Total 100 100
Study shows that 58% respondents take loan for less than a year, 22% take loan for 1 to 3 years,
16% take loan for the period of 3 year to 5year, and only 4% take loan for more than 5year.

Table no. 5: The distribution of respondents based on range of the loan

Frequency Percent

More than 100000 3 3

50000-100000 13 13

20000-50000 32 32
Less than 20000 52 52

Total 100 100

Present Study reveals that 52% people prefer loan less than 20,000, 32% respondents prefer
20,000 to 50,000,16% prefer 50,000-100,000 and 3% of the respondents prefer more than

Table no. 6: The distribution of respondents based on what prompted customers take the

Frequency Percent

Reasonable Interest 19 19

Easy Payment 37 37

Less Formalities 44 44
Total 100 100

Study reveals that 44% take loan because banks provide less formality. 37% take loans because
of easy payments, and other 19% respondents take loan because of reasonable rate of interest that
includes only agriculture loan provided by bank. Most of farmers prefer this loan because there is
no interest for a year and after that bank will impose 2-3% interest.

Table no. 7: The distribution of respondents based on average time taken for processing of

Frequency Percent

7days-14days 19 19

More than 14 days 32 32

Less than 7 days 49 49

Total 100 100

Study reveals that 49% respondents says that average time taken for processing of the loan is less
than 7 days, 32 % says that it takes more than 14 days and 19% says that it takes 7 – 14 days.
Table no. 8: The distribution of respondents on the basis of do they have pledge any of
their security for your borrowings

Frequency Percent
No 13 13
Yes 87 87
Total 100 100
Study reveals that 87% respondents says that they kept securities for their loan it includes land
documents, nominee etc. 13% of the respondents not kept any securities.

Table no. 9: The distribution of respondents based on mode of repayment

Frequency Percent
Installments 42 42
Lump sum 58 58
Total 100 100
As per the survey reveals that 58% people prefer lump sum method for their repayment of loan,
42% respondents prefer instalment method.

Table no. 10: The distribution of respondents based on what do the banks to recover the

Frequency Percent
Personal Visit 3 3
Letters/notice 97 97
Total 100 100
The study reveals that majorly bank will prefer sending letter/notice to their customer for
reminding their loan instalment or repayment. In some cases bank go for personal visit.
However, this bank will not preferring email or call.

Table no. 11: The distribution of respondents based on ranking of facility provided by the

Frequency Percent
Above Average 4 4
Below Average 8 8
Average 88 88
Total 100 100
Study shows that 88% of the respondent says that facility provided by the bank are average, 8%
say that its below average and 4% says that its above average.

Table no. 12: The distribution of respondents based on ranking of service provided by the

Frequency Percent
Excellent 1 1
Average 27 27
Good 72 72
Total 100 100
Study shows that 72% of the respondents say that customer service of the bank is good, 27%
says that it is average and another 1 % says it is excellent.

Table no. 13: The distribution of respondents based on satisfaction of the customer with the
amount and period of instalment

Frequency Percent
Cannot say 21 21
No 38 38
Yes 41 41
Total 100 100
Study reveals that 41% are satisfied with the amount and period of instalment, 38 % are not
satisfied and 21 % cannot say.

Table no. 14: The distribution of respondents based on education level of respondent

The main objective of this question is to understand the literacy level of the customer or

Frequency Percent
Post-Graduation 1 1
Graduation 12 12
Illiterate 35 35
Below SSLC 52 52
Total 100 100

The above chart shows that 52% of the respondents are below SSLC, 35% of the respondents are
illiterate, and 12% of the respondents are graduates. The fair amount of respondents in post

Table no. 15: The distribution of respondents based on occupation level of the respondents

Frequency Percent
Govt. Employee 5 5
Business man 5 5
house maker 5 5
Pvt. Employee 16 16
Daily Wager/ Cooly 29 29
Agriculture 40 40
Total 100 100
From the above chart, we can understand that 40% of the respondents are in agriculture and 29%
respondents are in daily wages worker. The salaried employees in private sector are 16% and in
Govt. Sector, businessperson share equally 5%. The 5% of the respondents are coming under
others category like homemaker.

Summary of Findings

The research on retail lending schemes in Kota CA Bank and customer perception has led to
several findings.

The findings are as follows.

• In rural area like Kota, people are taken more loan from the cooperative bank because of
the bank have connected and reached all 14 villages which comes under Kota region. In
addition, people most prefer these for the reason it is one of the oldest association
working in Kota region and one of the nearest bank.
• In rural places, people are not worried about interest. They prefer less formality and easy
installments. Because if we compare the interest rates with public and private banks the
cooperative bank bit costlier. Even it is expensive people are preferring cooperative very

• People are finding difficult in getting loan from private and public bank, because of
procedure and delay in sanctioning the loan. In this region most of the people depending
on agriculture income and daily wages. So they do not having any fixed income.

• Bank NPA is successfully coming down from year by year.

• Most of the middle income and low-income group families are depending on this
cooperative bank.

• Majority of the respondents prefer short-term loans (1year) and medium term loans (1-3

Suggestions and Conclusion

The rural respondents have different in their attitude towards lending money in the bank or
association. In rural area, some time they are not aware of the bank loan product, less publicity.
Banks must do the different strategies to reach every single remote village.

• The Bank needs to expand its operations in all the rural areas where customer do not have
access to the services of other banks.

• More TV advertisements help full to the all the category. Now a day local TV news
channels are coming. Through this bank can give more and more awareness about their
product. As per my view, the bank can putting stalls in “krishi melas” and other such kind
of programs to tell people about the schemes. Measures should take to increase the
performance of Agricultural loans in other region than Kota.

• The banks should adopt the modern methods of banking like internet banking, credit
cards, ATM, etc.

• The bank can start service like insurance, telephone bill payment, etc.
• The banks should plan for expansion of branches.

• The banks should improve the customer services of the bank to a better extent.


In this project, an attempt has made to introduce all the schematic loans under retail lending in
various banks interest rate and eligibility criteria of four Banks. Also to analyse the performance
of all these banks in rural areas of Kota region. It was most help full for the customer to prefer
the best bank for availing the loan. It found that the performance of personal loans and gold loans
are very good in Kota region. Gold loan is easiest way to get loan who has gold in their hand. It
is spot cash loan and there is no time lag for sanction. Agricultural loan are preferably good and
there is no problems for sanction. Because bank will getting enough security. However, they are
not getting any return even though they lending money for their own members development. The
government for famer development through this bank sanctions some of money. As people often
tend to avail loan from the bank that is nearby to their place, the bank should expand branches to
remote areas to survive in competition.