MAY 11, 2013 TO JULY 6, 2013

Internship report submitted to SBI in completion of the requirement of Summer Internship at State Bank of India On the topic Study On Car Loans to Professional, Self employed and Businessman
UNDER THE GUIDANCE OF Prof. S.P Mohapatra Sahoo PREPARED BY, Deepak Kumar ENROLLMENT NO-12DM075

OBJECTIVES
To To

study the Car Loan procedure provided by SBI.

study the general perceptions of Professionals, Self employed and Businessman regarding the process of sanction and disbursement of SBI loans and the acceptability/popularity of car loan provided by SBI.
From

the results thus obtained, to make suggestions for improving SBIs market share and the strategies to be adopted.

SCOPE

To ensure that the project report is useful and could become a source of reference for the bank. To study the practical difficulties in extending car finance to Professionals, self employed and Businessmen. To find out the strategies to be adopted by the Bank for better result.

METHODOLOGY

The research carried out for this project is descriptive in nature. It required the banks internal circular for the car loan and other banks car loan schemes. Sampling Technique: To study the Project, a Simple Random Sampling technique is used. Sample Size: Sample of 150 people was taken into study, and their data was collected. Data Collection: Collection of data is done by Primary and Secondary Data. The primary data has been collected with the help of questionnaire as well as personal observation book, magazine; journals have been referred for secondary data. Data Interpretation: Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and also using quantitative techniques (by using these techniques) accurate information is obtained.

DATA ANALYSIS
For the study 150 samples were taken, out of which 100 were customers and 50 were non customers including Professionals, self employed and businessman.
Customers Customers Non

professio nal 30 self employe d Business man 20 15

profession al self employed 15 Businessm an

40

30

FACTORS PREFERRED FOR TAKING LOAN FROM SBI

Factors preferred for loan from SBI
Low interest rates
4% 18% Fast service process Minimum processing fee 10% 60% 8% Longer repayement period Low Emi

DOCUMENTATION PROCEDURE IN SBI

90

85

80 60 40 20

80
70 60 in % 50 40 30 20 10 0 Professional Self employed Businessman Satisfaction of customers in documentation procedure in SBI 15 satisfied not satisfied

BANKS PREFERRED BY CUSTOMERS

60%
50% 40% 30% 20% 10% 0% 24% 20% 56%

SBI

Other banks

Non banking finance companies

REASONS FOR CHOOSING THE BANK

85% 75% 70%

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

80% 70% 45% 40%

60% 35%

75% 65%

60% 50%

72% 68% 60% SBI HDFC

AXIS
Finance companies

REASONS FOR NOT PREFERRING SBI

Reasons for not preferring SBI
High interest rate 5% 15%

18%

Floating interest rates Delayed service process 12%

15%

High processing fee

10%

25%

Callous attitude of employees Unsuitable documentation procedure

FINDINGS

From the findings it can be clearly seen that SBIs market share is already high but there are certain crucial points where the bank needs to work on in order to attract more customers. Moreover the bank needs to improve its marketing skills, and all the bank representatives must give their best performance to attract more customers. Many drawbacks of SBI can be cited from this study and needs to be worked over to increase its market share in auto loan. If the processing time is shortened and the bank gives way for minimal documentation then this can prove to be of much use to the bank thus, increasing the number of the people seeking its Auto Loan.

RECOMMENDATIONS

The nonresident businessmen are facing more difficulties in the documentation procedure i.e. in providing residence proof or income proof, so some new criteria can be introduced for them so that they may also find ease in availing car loan. Though interest rates of the bank regarding car loan product is comparatively less than other organization but still some problems are faced by the customers due to the floating rates, so the bank needs to work on it and as much as possible try to provide a fixed rate of interest to the customers. Those customers who find that the documentation procedure dont match their profile must also be considered to be important and SBI should search some way out for them so that the bank could prevent losing its customer to other organization.

CONT.

Since the Rural approach of SBI is least, the bank should try to provide proper public awareness of their car loan scheme and their benefits in rural areas. SBI should provide spot financing for purchasing car in the dealers premises during festival seasons. The bank should employ hassle-free procedures for the sanctioning of loan to the customers.

LIMITATIONS

The present data is confined to the Car Loan process offered by State bank of India. The data collected here is specific to the selected branches of the various banks in Bhubaneswar and Cuttack as per the instructions of the organization. The data and information collected here has been taken from the internal circular of the organization and from conversations with customers. The customer feedback collected here is specific to selected customers of limited centers only. Ignorant, non-cooperative and reluctant attitude of respondents was also a major constraint. Period of study: 8 weeks

REFERENCES
Primary data collected: Questionnaires filled in by customers. o Primary data collected: Questionnaires filled in by non customers. o Primary data collected: Questionnaires filled in by dealers. o Documents available from the Bank website: www.sbi.co.in. o Information gathered from SBI officials. o Information gathered from the bank officials through face-to-face conversation. o Information gathered from Utkal Hyundai officials. o Information gathered from Sky Automobiles. o Information gathered from Narayani motors. o http://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspx o http://www.hdfc.com o Information gathered from Jyoti Automobiles. o Information gathered from Aditya motors