LENDING PROCEDURE OF VEHICLE LOAN

1.1 INTRODUCTION OF LENDING PROCEDURE

Lending is simply the act of giving money on credit to another person called the
Borrower against some pre-decided interest in return. This is universal concept of banking
which has got organized in last few decades. The services are catered to Retail well as
Institutional customers and changes according to the Economic Structure in different country.
The biggest challenge before entire industry is to decide for a bank that how much
money it should lend to his customer as Customer focus of Banking industry bring a narrow
competition. In digital banking the concept of Credit Score has evolved. Credit score which is
a three-digit numeric summery of entire credit behavior of a person. In recent times for the
evolution of Banking made a resolution regarding a credit history of a person while lending
for any purpose. CIBIL (Credit Information Bureau (India) Limited) an authority to issue
credit score to the person by referring his base history of credit throughout years.
Generally, vehicle finance is offered by banks, non-banking financial services or other
unorganized lenders. The lenders can offer either secured vehicle finance or unsecured vehicle
finance. In case of secured loans, the lenders can ask secure the loan of vehicle Borrowers by
pledging some of the assets like
1. Land or Building
2. Equipment or Supplies
3. Received from invoice
Three assets are used to collateralize the loan borrowed for vehicle finance.
Alternatively, the vehicle finance can also be unsecured loans, in that case the lenders will
rely on the cash flows of the vehicle finance borrowers and predict the ability of the
borrowers to repay the dues.
India is witnessing a surge in sales in the Vehicle loan Sector. The sales figure of all the
lending two-wheeler, four-wheeler as well as commercial vehicle manufacture are booking a
phenomenal rise. This increase in the demand of vehicle loan and it can be attributed to be the
ease of offering these loans to its customer at attractive rates to increase the customer base;
banks are funding to the purchase of new vehicle and refinancing the old ones too. Car loans
are the fasted increasing segment in the Vehicle loans category. Vehicle loan reacquired for
commercial and personal purpose. Public sector banks, private sector banks and NBFC (Non
– Banking Financial Company) are providing better services in this sector. There has been a
growing trend of getting purchase of vehicle loan finance.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 1

LENDING PROCEDURE OF VEHICLE LOAN

to take loan, purchase their own vehicle & can repay the loan within the period up to 30 The
loans are important function that are providing as fund-based loans and non-fund-based loans.
Before the globalization the only traditional institutions were providing finance. In providing
loans, the Loan Disbursement System plays very decisive role. Recently, RBI is interrelated
with interest rates on loans and deposits. Even today all banks Increase rate on deposit when
they increase the interest rate on loans. There is perfect correlation between interest’s rates on
loans and interest rates on Deposit. Purchase of vehicle needs large amount of investment, it is
always difficult on the part of person to invest surcharge amount out of his small saving.
Hence, need of vehicle arises people to 36 months & can have their own vehicle in this way
there is always demand for all the people whether rich or poor person hence, everyone can
able to have his\her own vehicle.
1.2 MEANING OF LEND
To allow somebody to use something for a short tome or to give somebody money that
must be paid back after a certain period of time.
1.3 WHO IS LENDER
A lender is an individual, a public or private group, or a financial institution that makes
funds available to a person or business with the expectation that the funds will be repaid.
Repayment will include the payment of any interest or fees.
1.4 DEFINITION OF LENDING
In finance, a loan is the Lending of Money by one or more individuals, organizations, or
other entities to other individuals, organizations etc. The recipient (i.e., the borrower) incurs a
debt and is usually liable to repay interest on that debt until it is repaid as well as to repay the
principal amount borrowed.
1.5 MEANING OF LENDING PROCEDURE
The lending procedure is a relatively straightforward series of activities involving two
principal parties whose association ranges from the initial loan request to the successful or
unsuccessful repayment of the loan.
1.6 DEFINITION OF LENDING PROCEDURE
`The lending process involves a series of activities that lead to the approval or rejection
of a bank loan application.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 2

LENDING PROCEDURE OF VEHICLE LOAN

1.7 STEPS OF LENDING PROCESS

1. Finding prospective loan customers,
2. Evaluating a prospective customer’s character and sincerity of purpose,
3. Making site visits and evaluating a prospective customer’s credit record,
4. Evaluating a prospective customer’s financial condition,
5. Assessing possible loan collateral and signing the loan agreement,
6. Monitoring compliance with the loan agreement and other customer service needs.
1.8 PRICIPLES OF LENDING
1. Profitability : Now a days all organizations are commercial in nature aiming for the
profits. When the organization is profitable three will be serving the interest of all the
stakeholders. lending is the main sources of income to them. the banks while
sanctioning the amount should properly verify the creditability of borrowers so that the
principles amount along with the interest should be repaid on time.
2. Safety :As the banks lend the funds entrusted to it by the depositors, the first and
foremost principles of lending is to ensure the safety of the funds lent. Safety implies
that the borrower is in a position to repay the loan, along with interest, according to the
terms of the loan contract. The repayment of the loan depends upon the borrower’s
capacity to pay and willingness to pay.
3. Nature of assets: The loan disbursed by the banks is payable on demand. These are
generally a need for working capital. While sanctioning the loan bank should ensure the
ability of the borrower to repay it. The nature of assets which is owned by the borrower
should be of nature of conversion into liquidity.
4. End use of the loan: Banks/ FIs should closely monitor the end use of funds and obtain
certificates from borrowers certifying that the funds are utilized for the purpose for
which they were obtained. In case of wrong certification for the borrowers.
5. Diversifying risks: Diversification of the risks is one the cardinal principles. The banks
and financial institutions should sanction the loans to various sectors of the economy. In
economy there are fluctuation in different in various sectors of the economy.
6. Credit worthiness of borrowers: The sanctioning of unsecured advances is more risky
and needs special care and attention on the part of the banker. In the absence of a charge
over any specific asset, the safety of advance depends upon the honesty and integrity of
the borrower as much as upon the worth of his tangible asset.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 3

LENDING PROCEDURE OF VEHICLE LOAN

1.9 INTRODUCTION OF VEHICLE LOAN

In a direct vehicle loan, a bank lends the money directly to a consumer. In an indirect
vehicle loan, a car dealership (or a connected company) acts as an intermediary between the
bank or financial institution and the consumer. The interest rates for secured loans are usually
lower than those of unsecured loans.
1.10 HISTORY OF VEHICLE LOAN
Take credit for granted nowadays – credit cards, mortgages, car loans, etc. – but it was
not always so. Installment sales date back to the Civil War era, and by the early 20th century,
consumer goods like washing machines and phonographs were often purchased on an
installment plan. However, it was the car industry that accelerated the use of credit, and
America hasn’t looked back since. Here are some of the important events in the history of the
auto lending industry.
The first mass-produced automobile was introduced in1908. Its original cost, $850,
translates into more than $20,000 in present-day dollar value. Most prospective buyers had to
save for years in order to pay cash for the need for financing was clear. Some dealerships
offered installment loans, but it was a Wild West environment with little regulation.The
General Motors Acceptance Corporation was formed by GM in 1919 to provide customers
with car loans. It was the brainchild of GM President Alfred P. Sloan as a way for consumers
to buy cars without having a lot of upfront cash. Originally located in five large North
American cities, it eventually became a nationwide behemoth as it expanded into banking,
insurance, mortgages, and commercial finance.
The early loans required 35 percent down, with the remainder due in installments over the
period of one year. GMAC wanted to recoup its loans quickly before consumers began
shelling out money to repair their cars. In 2006, GMAC was taken private by Cerberus Capital
Management. Then, in 2008 it became a bank holding company and qualified for a 17.2
billion bailout from the U.S. Treasury. In 2009, GMAC changed its name to Ally Bank, and in
2010, Ally Financial.
Ally finished repaying the Treasury in 2014, shelling out $19.6 billion in total. In the
same year it recapitalized itself as a public company. Currently, the Ally Auto division
provides credit to more than four million retail consumers and 18,000 automobile dealerships.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 4

LENDING PROCEDURE OF VEHICLE LOAN

1.11 OVERVIEW OF VEHICLE LOAN

In the CV market availability of credit is a very important factor on which its
performance depends. The penetration of finance in this sector is around 90%.
In the 1980s, concept of auto finance was restricted to only the rich and the affluent.
However, with the liberalization of the Indian economy, entry of several foreign investors and
banks has changed the scenario around. Catapulted by the growing economy, the purchasing
power of Indian middle class, gave way to a surge in the demand for automobiles. This gave
way to the role of the banks and other financial institutions, which harnessed the growth of the
auto mobile industry by offering auto loans at competitive prices. The Indian auto segment in
general became the eye candy for the financiers due to its consistent growth. The automobile
loans offered by banks and other financial institutions have proliferated the rise of the
automobile sector in India by conduit of affordable schemes at competitive rates of interest.
The availability of various schemes and features and the fact that the financing can cater to
the requirements of the customer and needs has made auto financing products viable option in
India.
1.12 MEANING OF LOAN
A loan is when money is given to another party in exchange for repayment of the loan
principal amount plus interest. Loan terms are agreed to by each party before any money is
advanced.
1.13 DIFINITION OF LOAN
A loan is a form of debt incurred by an individual or other entity. The lender usually a
corporation, financial institution, or government advances a sum of money to the borrower. In
return, the borrower agrees to a certain set of terms including any finance charges, interest,
repayment date, and other conditions.
1.14 TYPES OF LOAN
1) Agricultural loan
2) Home loan
3) Personal loan
4) Overdraft loan
5) Vehicle loan
1. Agricultural loan: Irrigation equipment purchases, crops for cultivation, and other
agriculture-associated activities. Besides farmers, these loans are also available to individuals

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 5

LENDING PROCEDURE OF VEHICLE LOAN

engaged in other agree-related sectors like animal husbandry, horticulture, apiculture,

aquaculture, silk farming, and floriculture Agriculture loans in India are offered to farmers for
various purposes, like farming and. Agricultural loan are offered at lower interest rates
compared to other loans available to individuals. The main objective of these loans is to
provide a helping hand to farmers to meet their various cash needs.
2. Home loan: A home loan is an amount of money that an individual borrows from a bank or
money lending company at a certain rate of interest to be paid with the EMI every month. The
property is taken as a security by the money lending company for the Home Loan. The
property can either be commercial or personal in nature.
3. Personal loan: Personal Loan is an unsecured credit provided by financial institutions based
on criteria like employment history, repayment capacity, income level, profession and credit
history. Personal Loan, which is also known as a consumer loan is a multi-purpose loan,
which you can use to meet any of your immediate needs.
4. Overdraft loan: A bank overdraft is a line of credit that covers your transactions if your
bank account balance drops below zero.
1.15 MEANING OF VEHICLE LOAN
A Vehicle Loan is taken by borrowers to purchase a new or used private or commercial
vehicle. Vehicle loans are secured loans where the vehicle itself is used as collateral Lenders
fix interest rates depending on the type of vehicle and loan amount. Interest rates are usually
fixed for vehicle loans.
1.16 DEFINITION OF VEHICLE LOAN
Vehicle loan means a motor vehicle instalment sales contract assigned to the company
that is secured by title to, security interests in, or lines on a motor vehicle under applicable
provisions of the motor vehicle or other similar law of the jurisdiction in which the motor
vehicle is title and registered by the purchaser at the time the contract is originated or
purchased.
1.17 FEATURES OF VEHICLE LOAN
1. Get financing for purchasing new and used cars.
2. The financing can go to 85%-90% of the on-road price of the car. Some banks offer up
to 100% financing on the vehicles on-road price to certain conditions.
3. The loan tenure can range from one year up to seven years.
4. The loan amount can be up to three times the annual income of the applicant.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 6

LENDING PROCEDURE OF VEHICLE LOAN

5. Some lenders offer instant financing facilities for cars.

6. You may get additional discounts and offers if you choose to purchase a purchase a
car from the dealer or manufacture the bank has a tie-up with.
7. The car purchased through financing will be held as collateral until loan is repaid.
8. The repayment structure most commonly followed for a car loan is equated monthly
instalments (EMI).
1.18 FACTOR AFFECTING VEHICLE LOAN
1) Credit score: Your lender will enquire about your credit score to understand your
creditworthiness. Based on your report and score, the lender will take a call on the
loan amount they are willing to lend you and the associated terms and conditions.
2) Debt-to-income ratio: Lenders assess your income and the commitments you have to
cater to at the end of the month to see if the new car loan and its EMIs fit in your
budget. The lender will determine your ability to take a new loan and stand by it
trough the debt-to-income (DTI) ratio. If you have a high DTI score, you will get a
lower loan amount irrespective of your loan terms being stringent.
3) Down payment: Every car loan comes with a defined margin. Margin, here, means
the amount of money or the percentage of the on-road car price that you will have to
pay from your pocket. Through there are 100% financing loan schemes availed in the
market, they are subject to conditions.
4) Age of vehicle: In the case of used car loans, the age of the vehicle matters a lot in
deciding the interest rate; it is a deciding factor in accepting or rejecting the loan
application.
1.19 ADVANTAGES OF VEHICLE LOAN
1. Makes easy to buy car: As many banks provide up to 100% finance on ex-showroom
price, you don’t have to wait long to buy your dream car.
2. Flexibility to choose the tenure: Banks offer car loan for tenure of up to 7 year. You
have the flexibility to choose the tenure as per your convenience.
3. Loan for buying used car: Many banks offer loan on used car these days. Although
the interest rate will be higher than the interest rate on new car loan and the loan-to-
value (LTV) ratio will be lower than the new car loan.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 7

LENDING PROCEDURE OF VEHICLE LOAN

4. Interest rate can be negotiated: Unlike home loan in case of car loan you have the
flexibility to negotiate the rate with your lender if you have a good credit score and
have good relationships with the bank.
5. No collateral required: You don’t have to put any collateral to avail the car loan as
your vehicle will act as a security with the bank and in case you fail to make the
payment, the bank has the rights to seize the vehicle and sell it off to recover the
funds.
6. Flexibility to choose the payment mode: You can choose to pay through post-dated
cheques or use the auto debit facility where your equated monthly instalments (EMIs)
will be automatically deducted from your bank account.
7. Flexibility to choose the fixed or floating interest rate option: You can choose the
type of interest rate whether fixed or floating. The interest rate will depend on the type
of interest rate you are choosing.
1.20 TYPES OF VEHICLE LOAN AVAILABLE IN INDIA
Buying a car of your own is a ‘dream come true’! When you are young, owning
your first car can be identified as a symbol of success. However, purchasing a vehicle is
not a cheap affair. If you have just started working then you probably do not have
enough savings to afford a car. This is where a car loan comes in. The loan can help you
with the finance at the time of purchase and you can repay the money over a long
period of time.
In India, the loan for a vehicle comes in different basic types as listed below.
1) New car loan: This loan option is available for people who want to buy a brand new
car. The loan is taken to buy any car model from any maker. You will have to pay an
interest of 9-14% per year over a period of one-seven years.
2) Used car loan: The truth is that not everyone can afford to buy a new car, even with a
loan. The good news is that you can always purchase a used car with the help of a used
car loan. Most lenders will finance up to 85% of the car’s price. You will need to pay
a yearly interest of 12-18%. You will have one-five years to complete the repayment.
However, to get a loan for the previously owned car, the vehicle has to be less than
five years, and, at the time of the loan’s maturity, the car cannot be more than ten
years old.
3) Commercial vehicle loan: A business organization or an individual, who owns a
business that requires cars, can opt for a commercial vehicle loan. This kind of loan

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 8

LENDING PROCEDURE OF VEHICLE LOAN

comes with a 10-15% interest rate that you will have to pay yearly over a period of six
months to five years. The amount of loan you can get depends on your business’
yearly turnover and the number of cars you already own.
4) Two-wheeler loan: Not everyone wants to buy a four-wheeler; some people love a
bike more than a car. If you are a bike enthusiast then the two-wheeler loan will help
you get one. The loan for two-wheelers comes with a yearly interest rate of 11-18% on
the amount paid for the bike. You have to be at least 18 years of age to avail of the
loan. However, some lenders require a minimum age of 21 years.
5) Tractor loan: The tractor loan is available for people or organizations, which have a
regular source of income from any agricultural activity. It is also available for people
who want to rent tractors as a business. The tractor loan is available for a yearly
interest of 12 % on the loan amount. You have to pay a monthly interest for five years
to complete the payment.
1.21 STAFFENGAGEDINANORMALBRANCHPROCESS:
1) Security Guard
2) Customer Care Executive
3) Joint Custodian
4) Branch Manager
5) Cashier
1. Job of Security Guard:
a. First and for most things are that security guard needs tube addressed properly.
b. Greet the customer
c. Ask customer the reason for visiting branch
d. Ask customer to enter details in visitor register
e. Lead the customer to branch

2. Customer Care Executive:

a. Handling in queries from customers regarding loans against vehicle loan.
b. Helping customer solve his/her all queries.
c. Explaining term and condition of the product to the customer.
Case1: Customer Doesn’t Have Valid Documents (KYC Norms)
a. Do not violate KYC norms.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 9

LENDING PROCEDURE OF VEHICLE LOAN

b. A valid address proof must be taken.

c. In this case rent agreement is must as a address proof.
d. One should not process the loan if customer doesn’t have the proof of current residential.

Case2: Customer Doesn’t Have Address Proof (KYC Norms)

1. Do not violate KYC norms.
2. In this case address proof is to be taken.
3. One should not process the loan if customer doesn’t give you the address proof at the same
moment.
4. Do not deny of giving loan but you can always say your customer to come up with all the
documents so, you will process the loan in5min.
Case3: Fraud Customer
a. Customer’s behaviour must be noticed
b. In case of doubt, ask the customer about the reason for taking loan
c. Telephonic verification must be done at the same time
Case4: Branch Visit by Senior
a. Do not allow any senior to check branch in venture without checking his/her ID card
3. Joint Custodian
a. The joint commissioners for transport at other divisions supervise and guide the DCT
b. The custodian of the vehicle is the person who had charge of the vehicle when the accident
happened.
c. Claims are attributed to the vehicle.
d. Working out on loan amount with mutual conversation.
e. Provides for general insurance coverage for a specified and time period.
f. Each and every details mention on must be filled in with accuracy.
4. Branch Manager:
A. Branch manager has to explain customer about RTGS process
B. Convince customer to opt for RTGS/NEFT mode of cash transfer
C. Explain customer about the advantages of RTGS/NEFT process
D. Make sure that address verification is done by BM before disburse al of loan
5. Cashier:
a) Joint custodian so open the vault room.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 10

LENDING PROCEDURE OF VEHICLE LOAN

b) Pass out the same to cashier to re-count.

c) Take cash as per cash denomination entered in system.
d) To make sure that cash is taken from vault strictly as per cash denomination entered in the
system.
e) Ensuring that cash is counted twice before giving it to customer.
f) To make sure that cash transaction is done in front of CCTV camera

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 11

LENDING PROCEDURE OF VEHICLE LOAN

1.22 OBJECTIVES OF VEHICLE LOAN

1) Enjoy a range of benefits on car loans from Bank of Baroda, irrespective of your loan
amount or type of vehicle.
2) With our car loan, you can ride home your dream car in a short period of time. Our
loans are designed for those who may be unable to purchase a private vehicle due to
paucity of funds.
3) Opt for a car loan from Bank of Baroda to benefit from quick processing, minimal
documentation and speedy fund disbursal. Additionally, our loan borrowers are not
required to pay foreclosure charges or pre-payment penalty, nor do they need to pay
advance EMIs.
4) With higher limits on the car loan amount, you can avail loans for new cars for up to
Rs.100 lakh (Rs.1 crore). So, if you have always had your eye on a luxury car, our
loan can take you one step closer to your dream.
5) Also, say goodbye to down payment worries, as you can get up to 90% financing on
the car’s on-road price with Bank of Baroda’s auto loan.
6) We offer attractive interest rates on loans to all our customers based on their credit
scores. Additionally, existing home loan borrowers with a good credit history enjoy a
concession of 0.25% on their car loan interest rate.
1.23 SIGNIFICANCE OF VEHICLE LOAN
1. It helps you purchase a car even if you don’t have all the money for it right now.
2. Most car loans will finance the on-road price of the car.
3. Some car loans will even finance 100% of the on-road price. This means no down
payments.
4. With some banks offering financing in the crores, you are not limited in your choice of
cars.
5. Most car loan offerings in India are secured loans. This implies that the car serves as
the security/ collateral for the loan.
6. Procuring a car loan is usually simple when compared to other loan products.
Individuals with slightly unsavoury credit scores can also hope to procure one.
However, this option differs from bank to bank.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 12

LENDING PROCEDURE OF VEHICLE LOAN

7. Car loans in India often offer fixed interest rate options. This means, you are always
assured of a fixed amount that needs to be repaid monthly.
8. Many lenders will offer interest rates based on your credit score so a high score to get
you a cheaper loan.
9. Car loans are not meant for just new cars. A used car loan can help you buy a pre-
owned car.
1.24 ELIGIBILITY CRITERIA
Details Salaries Self-employed

Age 21-60 years 18-65 years

Annual income Rs 25,000 Minimum turnover of 40 Lakh

Credit score 700 700

Loan tenure Up to 7 years Up to 7 years

Loan to value ratio Up to 100% Up to 100%

1) Salaried Employees
2) Businessmen, professionals and Farmers
3) Directors of Private and Public Limited companies, Proprietor of Proprietorship Firms,
partners of Partnership Firms.
4) Corporate (Partnership, private Limited, Public limited and Trust)
5) NRIs/PIOs
1.25 MOST IMPORTANT TERMS AND CONDITION
Total deductions including proposed EMI should not exceed

GMI less than Rs.50000 60%

GMI Rs.50000 & above but

less than 150000 70%

Salaried GMI Rs.150000 and above 80%

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 13

LENDING PROCEDURE OF VEHICLE LOAN

Average Annual Income(last

2 years) less than Rs.6 lacs 60%

Average Annual Income (last

2 years) is Rs.6.00 lacs and
Others above 80%

1. Maximum Limit:
Rs.100 Lacks (For all categories)
2. Repayment Period:
Maximum 84 months
3. Margin:
10% Margin on ‘On road price’ of the vehicle
4. Bureau Score validation:
Minimum Bureau score cut off as per Bank’s guidelines
6. Age:
a. Minimum: Borrower 21 years, Co-applicant- 18 years
b. Maximum: Age of the applicant / co-applicant / guarantor + repayment period should
not exceed 70 years
7. Security
Hypothecation of Vehicle financed
8. Insurance
Comprehensive Insurance of the Vehicle with Bank’s Clause
8. Pre-closure charges:
NIL
9. Rate of Interest:
Rate of interest on car loan is based on CIBIL Bureau score of the applicant/co-
applicant. Minimum Cut off score is 701.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 14

LENDING PROCEDURE OF VEHICLE LOAN

Concession in ROI: Concession of 0.25% in rate of interest on Car Loans to our

existing Home Loans borrowers who maintains a good track record of repayment
without any overdue.
1.26 SEGMENT OF LOAN
a) Business loan
b) Commercial equipment loan
c) Farm equipment loan
d) Medium and heavy goods vehicle loan
e) Passenger commercial vehicle loan
f) Small/light/intermediate goods vehicle loan
a) Business loan:
Businesses require an adequate amount of capital to fund startup expenses or pay for
expansions. As such, companies take out business loans to gain the financial assistance they
need. A business loan is debt that the company is obligated to repay according to the loan’s
terms and conditions. According to the U.S. Small Business Administration, before
approaching a lender for a loan, it is imperative for the business owners to understand how
loans work and what the lender will want to see from the owner.
b) Commercial equipment loan:
Commercial Equipment loan is a type of small-business loan designed specifically for
the purchase of machinery and equipment essential to running your business. You can use an
equipment loan to purchase anything from office furniture and medical equipment to farm
machinery or commercial ovens.
c) Farm equipment loan:
Farm equipment loan" means equipment that is used or intended for use informing
operations, including any combine, tractor, implement, engine, motor or attachment, but not
including a motor vehicle.
d) Medium and heavy goods vehicle loan:
Medium- and heavy-duty vehicles weigh more than 10,000 pounds and include school
and public transit buses, freight, and other fleet vehicles. The Clean Transportation Program's
investments support the state's efforts to achieve its climate change goals and improve air
quality.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 15

LENDING PROCEDURE OF VEHICLE LOAN

A goods vehicle or truck whose legal weight and load ranges from 3.5 tonnes to 12
tonnes (or 7,716 to 26,455 pounds)
e) Passenger vehicle loan:
Passenger vehicles growth in coming years will be for growing working population in
the country’s growth, increasing urbanization, better road connectivity and preference for
shared transportation.
f) International vehicle loan:
It is employed by the governments of the lenders to perform a political. 1 The term
"international vehicle loan” would be more accurately applied to loans made by one. Nation
to Nation. The term is not generally applied to the purchase of an internal.
1.27 DOCUMENTION:
FIRST TIME USERS
1. Deployment letter for proposed asset
2. Trade references required
3. External guarantor required
4. Property ownership proof required
5. Resident stability of 2 years
FIRST TIME BUYERS
1. Experience proof required to get vehicle finance
2. Property ownership proof required
3. Resident stability of 2 years
4. Trade references required
5. External guarantor required
1.28 DOCUMENTS REQUIRED
1. Photo ID and Age Proof
a) PAN card
b) Passport
c) Driving license (Mandatory)
2. Signed application form
3. Three passport size photographs
4. Residence proof
a) Valid passport

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 16

LENDING PROCEDURE OF VEHICLE LOAN

b) Voter ID card
c) Driving license
d) Post-paid utility bill ( gas bill and electricity bill)
e) Updated passbook or bank account statement
f) Notarised registered rent agreement
5. Bank statement for the last six months
6. Salaried individual
a) Last three months salary slips
b) Form 16 or Income Tax Returns
7. Self-employed individual
a) Balance sheet and profit and loss account, computation of income for last two years.
b) Income Tax Returns- last two years for applicants, 26AS, Traces.
8. Business proof:
a) Gomasta License, Registration Certificate, Service Tax Registration, among others.
b) IT Assessment/ Clearance Certificate
c) Income Tax Challans/ TDS Certificate (Form 16A) Form 26 AS for income declared
in ITR.
1.29 STEPS TO GET THE LOAN APPROVED FASTER
When you want to receive funds to purchase the new or used car that you have been
eyeing for a while, it is better that you opt for a pre-approved loan. To avail such a loan, you
can follow a few steps to quickly receive the required funds.
1. check your credit report: You can check your credit report to verify your standing
in terms of credit score. A score of 750 or more can get you a lower interest rate.
However, the interest rate for a score of 650 to 750 will be slightly higher. If you have
defaults in your report, or have a very low score, your application may be rejected
2. Pay Your Bills on Time : In order to avail a loan to purchase your dream car, you
must have a minimum monthly pre-tax income and a manageable debt-to-income ratio
(DTI). While it is usually not possible to change one’s income, you can improve your
DTI by clearing off all your pending credit card debts.
To create a better credit profile, you should always pay your bills on time. If that is not
possible then you can make timely payment of your bills at least 6 months prior to the loan
application. If you pay your bills on time, it assures the lender that you will also repay the

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 17

LENDING PROCEDURE OF VEHICLE LOAN

Equated Monthly Installments (EMIs) on time. This, in turn, will help you secure a loan
easily.
3. Look for Car Loan Options: There are multiple options available in the market
through which you can get a loan to purchase your new or used car. You should check
the car loan interest rates of different banks and car financing firms in order to find the
one that fits your needs.
4. Borrow as Less as Possible: By paying a larger amount upfront as down payment,
you can reduce the sum that you will have to borrow in order to match the price tag of
the car you have chosen. If you borrow a lesser amount, you will be in a better
position to repay your loan quickly since a smaller loan amount means smaller EMIs
or shorter loan tenure. Additionally, the amount that you will have to pay to your bank
or car financing organisation as interest will also reduce.
5. Be Sure to Choose a Plan That Fits Your Budget: The repayment capability of an
applicant greatly impacts the approval of a loan that he or she has applied for. As you
decide to get a loan to purchase the car that you have always wanted, you should make
sure that you choose a scheme that you can afford. If you are already paying EMIs for
other loans that you have availed, you should ensure that you can also pay the EMI of
the car loan that you choose.
6. Pay Attention to the Terms of the Loan: A car loan that has low monthly EMIs but
consists of a longer tenure might not be viable for you. Before you finalise your
financing scheme, you should always try to opt for a plan that carries the lowest
interest rate and the shortest loan tenure as possible. Avoid being tricked into an
expensive payment situation by ensuring that the loan terms are conclusive.
7. Get Car Insurance with Complete Coverage: While offering a loan, the main
concern of banks and NBFCs is not to incur any losses. Therefore, having full-cover
insurance is a requirement for many organisations before sanctioning a car loan as it
helps recover the balance debt in case there is an accident wherein the borrower is at
fault.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 18

LENDING PROCEDURE OF VEHICLE LOAN

2.1 INTRODUCTION
Review of literature is one of the most important steps in the research process.
It is an account of what is already known about a particular phenomenon.
The main purpose of literature review is to convey to the readers about the work
already done and the knowledge and ideas that have been already established on
particular topics of research.
Literature review is a laborious task, but it is essential if the research purpose is to
be success full.
2.2 MEANING
A review of literature is description and analysis and analysis of the literature
relevant to a particular field or topic. It provides an overview of what world already had
been carried out, who are the key researchers who did that work.
2.3 DEFINITION
A literature review is a comprehensive summery of previous research on a topic.
The literature review surveys scholarly articles, books and other source4s relevant to a
particular area of research.
2.4 REVIEW OF LITERATURE
Dubey Manisha (2011):
the study has been conducted considering the segment such as passenger vehicle,
commercial vehicle, utility vehicle, two or three-wheeler vehicle of key player
performance and also analyze SWOT analysis and key factors influencing growth of
automobile industry.
DawarVarun (2012):
Study to analyse the effect of various fundamental corporate policy variable like
dividend, debit, capital expenditure on stock prices of automobile companies of India.
The study trends that dividend & investment policy are relevant and capital structure
irrelevant to stock price.
Singh Amarjit & Gupta Vinod ( 2012):
Explored an overview of automobile industry. Indian automobile industry itself as a
manufacturing hub and many joint ventures have been setup in India with foreign
collaboration. SWOT analysis done there are some challenges by the virtue of which
automobile industry faces lot of problems and some innovative key features are keyless
S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 19
LENDING PROCEDURE OF VEHICLE LOAN

entry , electrically controlled mechanisms enhanced driving control, soft feel interiors
and also need to focus in future on like fuel efficiency, emission reduction safety and
durability.
HotwaniRakhi (2013):
the author examines the profitability position and growth of company in light of sales
and profitability of Tata Motors for past 10 years. Data is analysed through rations,
standard deviations and coefficient of variance. The study reveals that there not exists a
strong relationship between sales & profitability of company
Srivastava Anubha (2014):
Data analysis has been done using the top down approach, i.e. Economic analysis,
industry analysis, company and technical analysis to find relationship between
automobile sector index with market index. Mahindra have a great position on the stock
market and will attract investor and this could lead to expansion and growth. Thus, Tata
motors Maruti Suzuki need to take care of their stock and expansion.
Shende Vikram ( 2014 ):
This research will be helpful for the new entrants and existing car manufacturing
companies in India to find out the customer expectations and their market offerings.
The objectives of study is the identifications of factors influencing customers
performance for particular segment of cars.
Sarwade Walmik Kachru (2015):
analysed the effect of linearization, government de-licensing and liberal trade policies
on the growth of the Indian auto mobile industry. The study recommends that investing
four- wheeler is going to be smart potion not only in India but all around the world.
Ravichandran, M. & Subramanium M Venkata (2016):
the main idea behind this study is to assessment of viability, stability and profitability
of Force motors limited. Operating position of the company can be measured by using
various financial tools such as profitability ratio, solvency ratio, comparative statement
& graphs etc. This study finds that company has got enough funds to meet is debts &
liabilities. Company can further improve financial performance by reducing the
administrative, selling & operating expenses.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 20

LENDING PROCEDURE OF VEHICLE LOAN

Kaur Harpreet ( 2016 ):

The author tries to examine the qualities & quantities performer of Maruti Suzuki co. &
how had both impact on its market share in India, for this study secondary data has
been collected from annual reports, journals, report automobile sites. Result shows that
MSL has been successfully leading automobile sector in India for last few years.
Mustafa and Taqi (2017):
Evaluated the financial performance of the second largest public sector bank of India
i.e. Punjab National Bank. This study was based on secondary data, to evaluate the
financial performance of the bank along with regression analysis. This concluded that
the PNB had performed well on the sources of growth rate and financial efficiency but
profitability had been found poor during the study period.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 21

LENDING PROCEDURE OF VEHICLE LOAN

3.1 TITLE OF THE STUDY

“A STUDY ON LENDING PROCEDURE OF VEHICLE ON BANK OF
BARODA AT SPECIALREFERENCE KANAKAPURA BRANCH”
3.2 STATEMENT OF PROBLEM
The problem faced by the people is the booming price for even high a normal living of
mankind the necessities also increased by the demand of vehicle loan also increased. This
study was taken up with the main idea of studying the lending procedure of vehicle loan
because of the lack of proper information and satisfaction level about this scheme. So that is
problem or reasons for the study. The bank as need to analyse & understand what their
consumer actually wants & what they perceive about vehicle loan.
3.3 SCOPE OF THE STUDY
The study was focus on lending procedure of vehicle loan on Bank Of Baroda at
Kanakapura branch. The respondent for the study are only citizen’s who are around
kanakapura region, those who are taking the benefit of vehicle loan facility.
3.4 OBJECTIVES OF THE STUDY
The study is descriptive in nature and tries to analyze and study the Indian gold loan
market. The study attempts to achieve the following objectives;
1. To study the conceptual framework Of Lending Procedures Practices on Vehicle
Loan.
2. To analyze the various Lending Schemes on Vehicle Loan.
3. To identify the existing practices of Lending Procedure in Vehicle Loan.
4. To find out various issues, if any faced customer while getting vehicle loan.
5. To suggest suitable suggestions based on the findings.
3.5 RESEARCH METHODOLOGIES:
Research methodology is systematic way of solving any research problems, the
methodology deals with the research design used and methods used to study. The research h
design adopted for the study of the state of affairs as it exists at present.
1. Sampling:
It is not always necessary to collect data from whole universe. A small representative
sample may serve the purpose. A sample means a small group taken in a large lot this

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 22

LENDING PROCEDURE OF VEHICLE LOAN

small group should be cross section really representative in character. This selection
process is called sampling.
2. Sampling size:
The 100 customers will be taken into study at kanakapura region, collection of the data &
observed fact are subjected to random sampling method.
3. Sampling method:
It is a probabilistic method where the sampling method & samples were drawing from the
customer of vehicle loan at kanakapura region.
3.6 SOURCES OF DATA COLLECTION;
The data collection follows the formation design including the sample this
sample plan, while taking a decision regarding the method of data collection to be used,
I have taken both primary and secondary data.
1. Primary data:
Primary data has been collected through structured questionnaires the response
will be analyzed and evaluated to extract the required information.
2. Secondary data:
Secondary data is obtained for the purpose of literature review where
information from the studies has been secondary data collected from the company
records, reports journals, websites, newspaper and magazines.
3.7 PLAN OF ANALYSIS
1. Plan in the study
2. Collecting in the information from the bank.
3. Preparing questionnaires for collecting the data.
4. Analysing & interpreting data
3.8 OPERATIONSAL DEFINITION OF CONCEPT
LOAN: A loan is when money is given to another party in exchange for repayment of
the loan principal amount plus interest. Loan terms are agreed to by each party before
any money is advanced.
VEHICLE LOAN: Vehicle loan means a motor vehicle instalment sales contract
assigned to the company that is secured by title to, security interests in, or lines on a
motor vehicle under applicable provisions of the motor vehicle or other similar law of

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 23

LENDING PROCEDURE OF VEHICLE LOAN

the jurisdiction in which the motor vehicle is title and registered by the purchaser at the
time the contract is originated or purchased.
BANK: A bank is a financial institution licenced to receive deposits & make loans.
Bank may also provide financial services such as wealth management.
CUSTOMER: A customer is an individual or business that purchased another
companies goods or services. Customers are important because the drive revenue
3.9 LIMITATIONS OF THE STUDY
1. Study area is restricted to Kanakapura Bank.
2. Due to time constrain only 100 has been taken for the sample size.
3. The results of the research study are limited to the vehicle any loan only.
4. The research study are simple percentage analysis and independents sample test.
3.10 CHAPTER LAYOUT
Chapter 1: Introduction
This chapter illustrate conceptual background of the lending procedure of vehicle loan.
Chapter 2: Literature review
This chapter deals with the various articles related to the study.
Chapter 3: Research design
This chapter deals with the research design, title of the study, statement of the problem, scope
of the study, objectives of the study, tools & technique used for data collection and limitation
of the study.
Chapter 4: Bank profile
This chapter consist of brief information about Bank Of Baroda.
Chapter 5: Data analysis and interpretation
This chapter includes analysis & interpretation of primary & secondary data collected with
respect to objectives of the study.
Chapter 6: Findings, Suggestions and Conclusion
This chapter deals with the valid findings and suggestions.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 24

LENDING PROCEDURE OF VEHICLE LOAN

4.1 INTRODUCTION
The Maharaja of Baroda, Maharaja Sayajirao Gaekwad, founded the bank on 20
July 1908 in the princely state of Baroda, in Gujarat. The government of India nationalized
the bank, along with 13 other major commercial banks of India on 19 July 1969. The
bank has been designated as a profit –making Public Sector Undertaking (PSU). As many
as 10 banks have merged with Bank of Baroda.
Bank of Baroda (BOB)is an Indian multinational, public sector banking and financial
services company. It is the second largest public sector bank in India post- merger with a
business mix of close to US$225 billion.

Based on 2019 data, it is raked 1145 on Forbes 2000 list. Bank of Baroda has total assets in
excess of 3.58 trillion (making it India’s 2nd biggest bank by assets), a network of 9583
branches in India and abroad, and 10442 ATMs as f July, 2017.The government of India
announced the merger of Bank Of Baroda, Vijay bank and Dena bank on September 17, 2018,
to create the country’s third largest lender. The amalgamation is the first – ever three- way
consolidation business of Rs 14.82 trillion (short scale), making it the third largest bank after
state bank of India (SBI) and ICICI Bank
4.2 HISTORY
In 1908, Maharaja Sayajirao Gaekwed III, set up the bank of Baroda (BOB), with
other stalwarts of industry such as sampatroagaekwad, ralph whitenack, vithadasthakersey,
tulsidaskilachand and NM chokshi. Two years later, BOB established its first branch in
Ahmadabad. The bank grew domestically until after World War II.
Then in 1953 it crossed the Indian Ocean to serve the communities of India’s in
Kenya and India’s in Uganda by establishing a branch each in Mombasa and

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 25

LENDING PROCEDURE OF VEHICLE LOAN

Kampala. The next year it opened a second branch in Kenya, in Nairobi, and in 1956 it
opened a branch in Tanzania at Dar-es-salaam. Then in 1957, BOB took a big step abroad by
establishing a branch in London.
London was the centre of the British Commonwealth and the most important
international banking centre. In 1958 BOB acquired hind bank (Calcutta; est. 1943), which
became BOB’s first domestic acquisition.
4.3 OVERVIEW OF BANK OF BARODA
It has been a long and eventful journey of almost a century across 19 countries. Starting in
1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre
in Mumbai, is a saga of vision, enterprise, financial prudence and corporate governance.
It is a story scripted in corporate wisdom and social pride. It is a story crafted in private
capital, princely patronage and state ownership. It is a story of ordinary bankers and their
extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of
corporate glory. It is a story that needs to be shared with all those millions of people -
customers, stakeholders, employees & the public at large - who in ample measure, have
contributed to the making of an institution.
4.4 ABOUT THE FOUNDER
SayajiraoGaekwad III was the maharaja of Baroda state from 1875 to 1939, and is
notably remembered for reforming much of his state during his rule. He belonged to the royal
gaekwad dynasty of the Marathas which ruled parts of present – day Gujarat.

SayajiraoGaekwad III (born ShrimantGopalraoGaekwad 11 march 1863– 6 February

1939) was the Maharaja of Baroda state from 1875 to 1939, and is notable remembered for
reforming much of his state during his rule. He belonged to the royal gaekwaddynasty of the
Marathas which ruled parts of present-day Gujarat. He wrote some book like notes on the

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 26

LENDING PROCEDURE OF VEHICLE LOAN

famine tour by his highness the maharaja Gaekwad. He is also a patron of Indian classical
music. The Maharaja SayajiroUniversity of Vadodara started the first dance programmer in
India in 1950.
4.5 LOGO OF BANK OF BARODA

India’s International Bank - is the tag line of the Bank our logo is a
unique representation of a universal symbol. It comprises dual “B”
letterforms that hold the Rays of the Rising Sun we call this the
‘Baroda Sun’.
The Single- colour, compelling vermillion palette has been
carefully chosen, for its distinctiveness as it stands for ‘Hope and
Energy’.
4.6 VISION
It has been a long and eventful journey of almost a century across 25 countries which
was starter in 1908 from a small building in Baroda to its new hi-rise and hi- tech Baroda
corporate Centre in Mumbai.
4.7 MISSION
The mission is to be a top-ranking national bank of international standards which is
committed to augmenting stake holders’ value through concern, care and competence.

4.8 BORD OF DIRECTON

Dr.Hasmukh Adhia ShriSanjivchad

(Non-Executive Chairman) (Managing Director &CEO)

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 27

LENDING PROCEDURE OF VEHICLE LOAN

Shri S.L. Jain Shrimuraliramswami

(Executive Directors) (Executive Directors)

Shriamithagrawal ShriAjaykumar
(Director) (Director)

Smt. Soundara Kumar Dr. Bharatkumar

(Shareholder Director) (Director)

Shri Srinivasan Sridhar shribijuvarkkey

(Shareholder Director) (Director)

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 28

LENDING PROCEDURE OF VEHICLE LOAN

4.9 PRODUCT AND SERVICES OF THE BANK OF BARODA

1. Deposit Account:

a. Saving account: Bank of Baroda offer 15 types’ savings accounts to its customersto
serve their needs. Customers can carry out the basicbanking transaction easily and
earn interest on their savings as well.
b. Current Account: Bank of Baroda offers 3 types of current accounts to its customer.
These accounts provide a host of banking benefits such as fund transfer receive
cheques, cash etc.
2. Loan:

a. Home Loan:
The bank offers a variety of home loan options to its customers, thus enabling
them to purchase a house under their own name. These loans can be availed at
attractive interest rates.
b. Personal Loan:
In metro and urban areas, the loan amounts can range from Rs. 1 lakh to Rs. 10
lakhs. In semi- urban and rural areas, it can vary from Rs. 50,000 up to Rs. 5 lakhs.
c. Car Loan:
Bank of Baroda offers car loan up to Rs. 1 crore withtenure up to a maximum
of 84 months & quick approval &lowprocessing fees.
d. Mudra Loan:
There are 3 schemes under PMMY mamely, shisu, Kishore and turn whereby a
customer can avail maximum loan of up to Rs. 10 lakhs.
e. Education loan:
Bank of Baroda offers schemes for education loans to students for pursuing
higher education in indicator in a foreign country.
f. Two- wheeler loan:
Bank of Baroda offers two- wheeler loan up to Rs. Lakh with 60 months
repayment period. The documentation process is very convenient for users.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 29

LENDING PROCEDURE OF VEHICLE LOAN

3. Investment

a. Fixed Deposit:
Bank of Baroda offers fixed deposit schemes to individuals for a short-term as
well as for long terms. There are different types of schemes with attractive rates of
interest.
b. Recurring Deposit:
The minimum monthly deposit RD accounts are Rs. 50 in rural and semi-urban
branches and Rs. 100 urban and metro branches. This service is cost – effective.
4. Cards
a. Credit card:
Bank of Baroda credit cards are loaded with specialbenefits and the card
holders are rewarded with privileges and savings on every usage.
b. Debit card:
Bank of Baroda offers 6 types of debit cards to suit the growing requirement and
needs of its customers.
5. Banking
a. Balance enquiry:
The bank allows its customers to check balancethrough various methods which
include net banking, mobile banking, SMS banking, passbook, missed call facility etc.
b. Mobile banking:
Bank of Baroda mobile banking apps are designed to cater to different needs of
customers and each application serves a unique purpose in its own way.
c. Net banking:
The bank helps the users with the facility of interest banking called as ‘Baroda
connects. This service is available 24/7 and can be modified for use depending on
retail and corporate customers.
d. Customer care:
Customer can approach the customer servicedepartment of bank of Baroda in
case of any kind of queries, fromgenerating PIN for ATM transactions to blocking a
credit or debit card etc.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 30

LENDING PROCEDURE OF VEHICLE LOAN

4.10 BANK PRODUCT AND SERVICES

1. Bank of Baroda business loan
2. Bank of Baroda car loan
3. Bank of Baroda credit card
4. Bank of Baroda debit card
5. Bank of Baroda education loan
6. Bank of Baroda gold loan
7. Bank of Baroda Home loan
8. Bank of Baroda loan against property
9. Bank of Baroda personal loan: eligibility, interest rate and apply online
10. Bank of Baroda saving account
4.11 PAYMENT SYSTEM OF THE BANK OF BARODA
1. Application supported by blocked amount (ASBS):
It is an application for subscription to an issue containing an authorization to block the
application money in a bank account. It is an additional mode of payment for investment in
shares. Without moving the funds out of your account, the amount will now be simply
blocked. This means as long as the IPO shares are not allotted, the funds stay in your
accountant will also not lose interest in your saving bank account. The account equivalent to
allotted shares will be debited from your account and the balance, if any, will be unblocked in
your account.
2. Real time gross settlement (RTGS):
Real time gross settlement system (RTGS) is a funds transfer mechanism where
transfer of money takes place from one bank to another on a real time basis. It is an electronic
payment processing environment wherein transactions are settled as soon as they are
processed.
3. National Electronic fund transfer (NEFT):

National electronic fund transfer (NEFT) is a funds transfermechanism where transfer

of money takes place from one bank to another on the same day. This is an electronic
payment processing environment where it transactions are settled as soon as they are
processed.
4. Electronic clearing services (ESS):
The electronic clearing services (ECS) are an electronic mode of payment for
transaction that can be used for making bulk payments or receipts. This facility is used

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 31

LENDING PROCEDURE OF VEHICLE LOAN

by institution for making bulk payment of amount towards distribution of dividend, interest,
salary, pension, etc.
5. Western union money transfer:
It provides the sender a 10-digit money transfer control number (MTCN) that the
sender must provide to their recipient. The receipts than proceeds to a western union agent
office in the designated payment location, present the 10-digit MTCN, and a photo ID, money
is then paid out to the recipient.
4.12 OTHER LOANS PROVIDED BY THE BANK OTHER THAN
VEHICLE LOAN
1. Mortgage loan:
Mortgage loan is a loan provided by the bank for ideal use of idle property generates
additional income from an otherwise idle property. You can withdraw money as per your
need and save on interest cost, by depositing surplus money you can get regular income and
save interest. This loan provides competitive rate of interest, amount of loan available up to
Rs. 10 Crore.
2. Mudra Loan:
The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the
Government of India to extend affordable credit to micro and small enterprises. Mudra Loans
are designed to bring enterprises into the formal financial system, or to “fund the unfunded”.

Loans under PMMY scheme are available to non- farm micro or small enterprises engaged in
income generation through manufacturing, trading and services.
3. Loan for Public Issues/ Initial Public Offers:
Do you wish to invest in public Issues of reputed companies? Bank of Baroda’s loan

product for Financing Subscription tom Initial Public Offers is designed just for you.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 32

LENDING PROCEDURE OF VEHICLE LOAN

So, make your smart investment decisions and avail of the benefits. You can avail loan
up to Rs. 10 Lakh for subscribing to new issues. The loan offered at affordable/
competitive interest rate. Invest now pay within maximum period of 90 days, option to
continue the loan thereafter by availing loan against allotted shares.
4. Baroda Advance Against Securities:
Meet your urgent need for cash without selling off our securities with bank of Baroda
‘Loan against Securities’. Pledge your Securities and avail instant loan/ credit facility
with attractive interest rates and minimal documentation. Loan against securities is an
ideal choice to meet your contingencies and personal needs without selling off your

securities. Get high value loans against securities and easy repayment and transparent
processing.

4.13 AWARDS
a. Association Of Business Communicators Of India (ABCI) Awards (2006)

b. Bank Of Baroda Awarded The Outlook Money NDTV Profit Awards 2007

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 33

LENDING PROCEDURE OF VEHICLE LOAN

c. Bank Of Baroda ages Four Awards Of ABCI For Year 2009

d. Business world best bank 2011 awards

e. MY FM stars of the industry award2012

f. Bank of Baroda awarded skoch order of merit in India’s best 2014

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 34

LENDING PROCEDURE OF VEHICLE LOAN

g. Bank of Baroda has won the award from PFRDA Govt, of India for markers of
excellence APY (Atal pension yojana) campaign(7th to 20thDecember, 2017)

h. Bank of Baroda received runners up award for “best payment initiatives”, at the
IBA banking technology 2019 awards function, held St, rages, Mumbai

i. Bank of Baroda received the IPL award for “best practices in CSRawards2020

4.14 OFFICE AND BRANCHES

1. Head Office
Baroda Bhavan, RC Dutt Road, Alkapuri,
Baroda- 390007
Phone Number: (0265) 2316010
2. Corporate Center
Baroda Corporate Center, Plot No. C-26
Block G, BandraKurla Complex,
Bandra (East), Mumbai- 400051
Phone Number: (022) 6698 5000/ 04

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 35

LENDING PROCEDURE OF VEHICLE LOAN

Table: 3.2 Branch Network (as on 28. 02. 2021)

Area Branches
Metro 1801
Urban 1482
Semi-Urban 2094
Rural 2853
Total Branches (Domestic) 8230
Total Office (Domestic) 255
Foreign (Overseas)Branches/Offices 96
Total (Global) 8581
(Sources: https://bankofbaroda.in/offices-branches.htm)

Table: 3.3 Controlling Offices (as on 28. 02. 2021)

Area Branches
Zonal Offices 18
Regional Offices 148
Corporate Office 1
Head Office 1

(Sources:://bankofbaroda.in/offices-branches.htm)

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 36

LENDING PROCEDURE OF VEHICLE LOAN

4.15 ABOUT THE BANK OF BARODA AT KANAKAPUR BRANCH

Bank Name Bank of Baroda
Branch Name Kanakapura
Address R.E.S Complex, MG Road,
Kanakapura-562117

Contact Number 080-27522427

8329350767

E-mail [email protected]
[email protected]
o.in
Branch Timings 10:00am–4:00pm
IFSC Code BARB0VJKNPU
Branch Code VJKNPU
Total No of Employees in 10Staff
Branch
Branch Founded 29/12/1964(Merged with
Vijaya Bank
intheyear2019)
Area Served Kanakapura
Official Website www.bankofbaroda.in

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 37

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.1
GENDER WISE CLASSIFICATION

No. of
Sl.NO Gender respondents Percentage

1 Male 57 57%

2 Female 43 43%

Total 100 100%

(Sources: Primary data)
ANALYSIS:
The above table shows that out of 100 respondents, 57 respondents are male,43
respondents are female.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 38

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.1
GRAPH SHOWING GENDER WISE CLASSIFICATION OF
RESPONDENTS.

43%
PERCENTAGE
57%

43
NO. OF RESPONDENTS
57

0 10 20 30 40 50 60

2 Female 1 Male

INTERPRETATION:
It can be inferred from the table 4.1 and graphical represent of the graph 4.1
at the percentage of male members are more than that of female members.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 39

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.2
MARITAL STATUS

Sl.No Marital status No. of Percentage

Respondent

1 Married 41 41%

2 Unmarried 59 59%

Total 100 100%

(Sources: Primary data)

ANALYSIS:
The above table shows that out of 100 respondents,59 respondents are unmarried
and 41 respondents married.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 40

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.2
GRAPH SHOWING MARITAL STATUS OF RESPONDENTS.

120
Chart Title
100 59

80

60

40 41

20

0 59%
41%
No. of Respondent Percentage
Married Unmarried

INTERPRETATION:
The above graph analyse majority of 59% are unmarried respondents and
41% respondents are married.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 41

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.3
AGE WISE CLASSIFICATION OF RESPONDENTS.

Sl.No Age group No. of Percentage

Respondent
1 18-25 61 61%

2 25-35 19 19%

3 35-50 14 14%

4 50-75 6 6%

Total 100 100%

(Sources: Primary data)

ANALYSIS:
The above table found that, out of 100 respondents, 61 respondents are in the age
group of 18-25, 19 respondents are in the age group of 25-35, 14 respondents are in the age
group of 35-40, and only 6 respondents are in the age group of 50-75.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 42

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.3
AGE WISE CLASSIFICATION OF RESPONDENTS.

80
61
60

40
19
14
20 6
61% 19% 14% 6%
0
18-25 25-35 35-50 50-75

No. of Respondent Percentage

INTERPRETATION:
It can be inferred from the table 4.3 and graphical representation of 4.3 that the
percentage of 18-25 years of age group member are the more than that of all age group
members.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 43

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.4
DIFFERENT OCCUPATION

Sl.No Occupation No.of Percentage

Respondent

1 self employed 21 21%

2 Salaried 64 64%

3 Business 9 9%

4 Other 36 36%

Total 100 100%

(Sources: Primary data

ANALYSIS:
From the above table we can analyse out of 100 respondents that 64 respondents are
salaried, 36 respondents are others, 21 of the respondents are self employed and 9 respondents
are business.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 44

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.4
DIFFERENT OCCUPATION

Percentage

21%
36%

9%
64%

self employed salaried business other

INTERPRETATION:
From the above graph we can analyse out of 100 respondents, which 64%
respondents are salaried, 36% respondents are others, 21% of the respondents are self
employed and 9% respondents are business.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 45

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.5
INCOME WISE CLASSIFICATION RESPONDENTS

Sl. No Monthly income No. of Percentage

Respondent

1 15000-20000 59 59%

2 20000-30000 18 18%

3 30000-4000 14 14%

4 40000-50000 9 9%

Total 100 100%

(Sources: Primary data)

ANALYSIS:
The above table shows that out of 100 respondents, majority 59 respondent’s monthly
income is 15000-20000, 18 respondents monthly is 20000-30000, 14 respondents monthly
income 30000-40000 and only 9 respondents’ monthly income needs from 40000 but less
50000.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 46

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.5
INCOME WISE CLASSIFICATION RESPONDENTS

40000-50000 9 9%

30000-40000 14 14%

20000-30000 18 18%

15000-20000 59 59%

0 10 20 30 40 50 60 70

No. of Respondent Percentage

INTERPRETATION:
From the above figure shows that the majority of the respondent. The
survey consist of respondents 57% respondent are 15000-20000 level of income, 18%
respondent are 20000-30000 level of income , 14% respondents are 30000-40000 level
of income finally 9% respondents are 40000-50000.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 47

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.6
AWARENESS THE VECHICLE LOAN FACILITY

Sl. No Opinion No. of Percentage

Respondent

1 Yes 84 86%

2 No 16 16%

Total 100 100%

(Sources: primary data)

ANALYSIS:
The above table shows that, out of 100 respondents, 84 respondents are aware vehicle
loan facility and only 16 respondents are unaware of vehicle loan facility.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 48

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.6
AWARENESS THE VECHICLE LOAN FACILITY

86%

84

No. of Respondent Percentage

INTERPRETATION:
The above graph shows that, 84% respondents are aware vehicle loan facility,
remaining 14% respondents are not aware of vehicle loan facility.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 49

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.7
KIND OF LOAN BORROWED BY THE RESPONDENTS FROM
BANK.

Sl. No Options No. of Percentage

Respondent

1 Two-wheeler 48 48%

2 Four-wheeler 24 24%

3 Mini vehicle 10 10%

4 Others 18 18%

Total 100 100%

(Sources: primary data)

ANALYSIS:
Majority 48 respondents were the beneficiaries of Two-Wheeler vehicle loan, 24
respondents are the beneficiaries of Four-Wheeler vehicle loan, 18 respondents were
beneficiaries other kind of vehicle loan but only 10 respondents were the beneficiaries of Mini
vehicle loan.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 50

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.7
KIND OF LOAN BORROWED BY THE RESPONDENTS FROM
BANK

48
50
45
40
35
30 24
25 No. of Respondent
18
20 Percentage
15 10
10
5 48% 24% 10% 18%
0
two four mini others
wheeler wheeler vechile

INTERPRETATION:
The above graph indicated that majority 48% of the respondent borrowed Two-
Wheeler vehicle loan, 24% of the respondents prefer Four-Wheeler vehicle loan, 18% of
respondents borrowed other vehicle loan finally only 10% borrow Mini vehicle.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 51

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.8
TABLE SHOWING SOURCE FOR RESPONDENTS AWERENESS
TOWARDS VEHICLE LOAN

No. of
Sl. No Options Respondent Percentage

1 Advertising 23 23%

Friend/Family
2 members 56 56%

3 News papers 6 6%

4 Other 15 15%

Total 100 100%

(Sources: Primary data)

ANALYSIS:
The above table showing that the source of respondents awareness about vehicle loan.
56 respondents are communicated by Friends\ Family members, 23 respondents are aware by
Advertisements, 15 respondents are educated by other sources and remaining only 6
respondents know by Newspapers.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 52

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.8
GRAPH SHOWING SOURCE FOR RESPONDENTS AWERENESS
TOWARDS VEHICLE LOAN

INTERPRETATION:
The above graph shows that out of 100% respondent’s majority 56% of respondents
are aware by friends/ family members, 23% were knowing by different advertisements, 15%
were aware by other sources and finally only 6% respondents are aware by news papers.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 53

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.9
TABLE SHOWING THE AMOUNT OF VEHICLE LOAN BORROWED
FROM THE BANK.

No. of
Sl. No Options Respondent Percentage

1 50000 -100000 57 57%

2 100000-200000 20 20%

3 200000-400000 12 12%

4 More than 400000 11 11%

Total 100 100%

(Sources: Primary data)

ANALYSIS:
From the table we can analyse. That of 100 respondents are barrowed the loan of
50000-100000, 20 respondents are received the loan of 100000-200000, 12 respondents
benefited, 200000-400000 and only 11 respondents are the beneficiaries of more 4lakh loan
facility.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 54

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.9
GRAPH SHOWING THE AMOUNT OF VEHICLE LOAN BORROWED
FROM THE BANK.

INTERPRETATION:
From the chart we can analysis that the vehicle loan borrowed from the bank majority
57%n of the respondents are borrowed 50000-100000, 20% of the respondents are borrowed
100000-200000, 12% of the respondents are borrowed 200000 to 400000 and only 11% of the
respondents more are benefited more than 4lakh.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 55

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.10
TABLE SHOWING TIME TAKEN BY THE BANKER TO DISBURSE
THE LOAN.

No. of
Sl. No Options Respondent Percentage

1 Within 1 month 47 47%

2 2 to 4 months 26 26%

3 5 to 10 months 10 10%

4 More than 1 year 17 17%

Total 100 100%

(Sources: Primary Data)

ANALYSIS:
The above table we observed that, out of 100 respondents, 47 respondents were
received the loan from the bank within 1 month, 26 were disbursed between 2 to 4 months, 10
respondents were benefited by 5 to 10 months and only 17 respondents were disbursed after 1
year.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 56

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.10
GRAPH SHOWING TIME TAKEN BY THE BANKER TO DISBURSE
THE LOAN.

Percentage

17%
10% 47%

26%

1 month 2 to 4 months 5 to 10 months Morethan 1 year

INTERPRETATION:
The above graph describe that majority 47% of the respondents are disbursed within a
month, 26% of the respondents are wait for 2 to 4 months, 17% of thew respondents are
disbursed after a year remaining 10% respondents were benefited within 5 to 10 months.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 57

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.11
TABLE SHOWINGTHE LENDING PROCEDURES PRACTICES BY
THE BANKER WHILE SANCTIONING A LOAN

No. of
Sl. No Options Respondent Percentage
Document
1 Collection 52 52%

2 Security 16 16%

3 Witness 7 7%

4 Credit score 25% 25%

Total 100 100%

(Sources: Primary Data)
ANALYSIS:
The above table shows that, for 52 respondents bankers sanction a loan. Through
document collection, for 25 respondents credit score is considered while sanctioning loan, 16
respondents gave security to receive a loan, and only 7 respondents were gave witness to the
banker for sanctioning loan.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 58

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.11
GRAPH SHOWING THE LENDING PROCEDURES PRACTICES BY
THE BANKER WHILE SANCTIONING A LOAN

Chart Title
60 52 60%
52%
40 40%
16 13 12
20 16% 7 20%
13% 12%
7%
0 0%
Doument Security Witness Credit Credit Score
Collection

No. of Respondent Percentage

INTERPRETATION:
The above chat shows that, for 52% respondents bankers sanction a loan. Through
document collection, for 25% respondent’s credit score is considered while sanctioning loan,
16% respondents gave security to receive a loan, and only 7% respondents were gave witness
to the banker for sanctioning loan.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 59

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.12
DOCUMENT ARE SUBMITTED BY RESPONDENT TO BANKER
WHILE SANCTIONING A LOAN

No. of
Sl. No Options Respondent Percentage

1 Bank statement 18 18%

2 Address Proof 11 11%

3 Photo & Signature 9 9%

4 All the Above 62 62%

Total 100 100%

(Sources: primary data)

ANALYSIS:
From the above table we observed that, 62 respondents are submitted all Three
documents to bank, 18 respondents are provide bank statements, 11 respondents given address
proof, and only 9 were submitted photo & signature.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 60

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.12
DOCUMENT ARE SUBMITTED BY RESPONDENT TO BANKER
WHILE SANCTIONING A LOAN

100%

18% 11% 9% 62%

100%

99%
18 11 9 62
99%
Bank statement Adress Proof Photo & All the Above
Signature

No. of Respondent Percentage

INTERPRETATION:
From the above graph we observed that, majority 62% respondents are submitted all
Three documents to bank, 18% respondents are provide bank statements, 11% respondents
given address proof, and only 9% were submitted photo & signature.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 61

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.13
RANGE OF LOAN OFFERED BY BANKER TO THE RESPONDENTS

No. of
Sl. No Options Respondent Percentage

1 150000-300000 60 60%

2 300000-500000 18 18%

3 500000-800000 14 14%

4 More than 800000 8 8%

Total 100 100%

(Sources: primary data)

ANALYSIS:
From the above table represent that, 60 respondents are offered 150000-300000 by a
bank, 18 were offered are eligible of 500000, 14 respondents are eligible of 500000-800000
only 8 respondents are offered more than 800000.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 62

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.13
RANGE OF LOAN OFFERED BY BANKER TO THE RESPONDENTS

INTERPRETATION:
From the above graph represent out of 100% respondents majority 60% of the
respondents are eligible for 150000-300000, 18% of the respondents are eligible for 300000-
500000, 14% of the respondents capable for 500000-800000, & only 8% of the respondents
are eligible getting more than 800000 loan.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 63

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.14
RATE OF INTEREST CHARGED BY THE BANK

No. of
Sl. No Options Respondent Percentage
1 4% 53 53%

2 6% 19 19%

3 8% 17 17%

4 More than 9% 11 11%

Total 100 100%

(Sources: primary data)

ANALYSIS:
From the above table represent that 53 respondents are charged 4% rate of interest
loan, 19 respondents are charge 6% rate of interest on loan, 17 respondents are charge 8%
rate of interest on loan, remaining 11 respondents are charged more than 9%.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 64

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.14
RATE OF INTEREST CHARGED BY THE BANK

INTERPRETATION:
From the above graph exhibited that, majority 53% of the respondents are charged
only 4% rate of interest, 19% of the respondents are charged 6%, 17% are charged 8%, &
finally 11% of the respondents charge highest rate of interest.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 65

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.15
TABLE SHOWING RESPONDENTS TOWARDS PROCESSING
CHAERGE COLLECTION

No. of
Sl. No Options Respondent Percentage

1 Yes 70 70%

2 No 30 30%

Total 100 100%

(Sources: primary data)

ANALYSIS:
The above table shows the processing charges collecting by banker. 70 respondents
are response “YES”, remaining 30 respondents are response they are not paying any
processing charge.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 66

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.15
GRAPH SHOWING RESPONDENTS TOWARDS PROCESSING
CHAERGE COLLECTION

INTERPRETATION:
From the above table shows that processing charges collecting by banker majority
70% of the respondents are paid processing charges while getting a loan, remaining 30% of
the respondents are not paying any charges,.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 67

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.16
RANGE OF PROCESSING CHARGE PAID BY THE RESPONDENTS

No. of
Sl. No Options Respondent Percentage

1 8000 to 10000 67 67%

2 10000 to 14000 9 9%

3 15000 to 18000 12 12%

4 More than 2000 12 12%

Total 100 100%

(Sources: primary data)

ANALYSIS:
From the above table shows the amount paid by the respondents for processing. 67
respondents are paid 8000 to 10000, 12 respondents are paid 15000 to 18000, 12 respondents
are paid more than 20000, & remaining 9 respondents are paid 10000 to 14000.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 68

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.16
RANGE OF PROCESSING CHARGE PAID BY THE RESPONDENTS

INTERPRETATION:
From the above graph shows the amount paid by the respondents for processing.
Majority 67 respondents are paid 8000 to 10000, 12 respondents are paid 15000 to 18000, 12
respondents are paid more than 20000, & remaining 9 respondents are paid 10000 to 14000.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 69

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.17
RESPONDENTS LEVEL OF SATISFACTION TOWARDS
PROCESSSING CHARGES

No. of
Sl. No Options Respondent Percentage

1 Satisfied 63 63%
2 Highly Satisfied 14 14%

3 Dis-satisfied 16 16%
4 Highly Dis-satisfied 7 7%

Total 100 100%

(Sources: primary Data)
ANALYSIS:
The above table showing respondents satisfaction level towards processing fees, 63
respondents are satisfied, 16 respondents are not satisfied, 14 respondents are highly satisfied
& 7 respondents are highly dis-satisfied.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 70

 LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.17
RESPONDENTS LEVEL OF SATISFACTION TOWARDS
PROCESSSING CHARGES

INTERPRETATION:
The above graph shows that out of 100% respondent’s majority 63% of the respondents
are satisfied with the processing charges, 16% are dis-satisfied, fortunately 14% of the highly
satisfied remaining 7% of the respondents are highly dis-satisfied.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 71

LENDING PROCEDURE OF VEHICLE LOAN

TABLE:5.18
RESPONDENTS OPINION TOWARDS RATE OF INTEREST
CHARGED BY THE BANK

No. of
Sl. No Options Respondent Percentage
1 Extremely Satisfied 14 14%
2 Satisfied 69 69%

3 Extremely Dis-Satisfied 5 5%

4 Dis- satisfied 12 12%

Total 100 100%

(Sources: Primary Data
ANALYSIS:
From the above table indicate that69 respondents satisfied, 14 respondents are
extremely satisfied, 12 respondents are dissatisfied, and remaining 5 respondents extremely
dis-satisfied by rate of interest by the bank.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 72

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH:5.18
RESPONDENTS OPINION TOWARDS RATE OF INTEREST
CHARGED BY THE BANK

INTERPRETATON:
The above graph indicates that out of 100% respondents, 69% of the respondents are
satisfied of rate of interest charged by the bank, 14% are extremely satisfied but 12% were
dis-satisfied, 5% were extremely dis-satisfied.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 73

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.19
REPAYMENT PERIOD GIVEN BY BANK.

No. of
Sl. No Options Respondent Percentage

1 Within 1 Year 28 28%

2 2 Years 43 43%
3 3 Years 16 16%

4 More than 5 years 13 13%

Total 100 100%
(Sources: primary data)
ANALYSIS:
The above table shows that, 43 respondents are given 2 years for repayment, 1 year for 28
respondents, 3 years for 16 respondents & only 13 respondents are given more than 5 years.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 74

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.19
REPAYMENT PERIOD GIVEN BY BANK.

INTERPRETATION:
It can be inferred from the above graphical representation considered for the study
majority 43% of the respondents are permitted 2 years for repayment of loan, 28% of the
respondents have to be paid within 1 years, 16% of the respondents can repaid by 3 years but
only 13% respondents are benefited more than 5 years time.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 75

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.20
TABLE SHOWING PROBLEM FACED BY THE RESPONDENTS
WHILE TAKING LOAN

No. of
Sl. No Options Respondent Percentage
1 Processing Charges 19 19%
2 Interest Rate 40 40%
3 Documentation 17 17%
4 Other 24 24%

Total 100 100%

(Sources: primary data)
ANALYSIS:
From the above table it is found that out of 100 respondents considered for the study
they were 40 of the respondents are faced interest rate problem, 24 of the respondents are
faced other rate problem, for 19 of the processing charge becomes a problem, for remaining
17 respondents documents procedure becomes a problem.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 76

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.20
TABLE SHOWING PROBLEM FACED BY THE RESPONDENTS
WHILE TAKING LOAN

INTERPRETATION:
From the above graph it is found that, out of 100% respondents considered for
the study they were 40% of the respondents are faced interest rate problem, 24% of the
respondents are faced other rate problem, for 19% of the processing charge becomes a
problem, for remaining 17% respondents documents procedure becomes a problem.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 77

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.21
TYPE OF REPAYMENT FACILITY PREFERRED BY THE
RESPONDENTS

No. of
Sl. No Options Respondent Percentage

1 Monthly EMI 67 67%

2 Quarterly EMI 9 9%

3 Half Yearly EMI 10 10%

4 Annually EMI 14 14%

Total 100 100%
(Sources: primary data)
ANALYSIS:
From the above table shows that 67 respondents prefer monthly EMI, 14 respondents to
pay annually, 10 respondents preferred half yearly EMI & only 9 respondents preferred
Quarterly EMI.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 78

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.21
TYPE OF REPAYMENT FACILITY PREFERRED BY THE
RESPONDENTS

INTERPRETATION:
The table graph shows that 67% of the respondents are ready to repay the loan amount
on monthly instalment, 14% of the respondents are preferred to pay yearly once, 10%
respondents are ready to pay Half yearly but only 9% respondents are ready to pay Quarterly.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 79

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.22
TABLE SHOWING OPINION ABOUT VEHICLE INSURANCE
OFFERED BY THE BANK ON SANCTIONING LOAN.

No. of
Sl. No Options Respondent Percentage

1 Yes 68 68%

2 No 32 32%

Total 100 100%

(Sources: primary data)
ANALYSIS:
From the above table shows that, out of 100 respondents, 68 respondents are offered
vehicle insurance by the bank while sanctioning a loan, 32 respondents are not benefited this
facility.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 80

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.22
GRAPH SHOWINGOPINION ABOUT VEHICLE INSURANCE
OFFERED BY THE BANK ON SANCTIONING LOAN.

INTERPRETATION:
The above graph considered for the study 68% of the respondents are benefited
vehicle insurance facilities offered by bank while sanctioning loan hence, 32% of the
respondents yet to benefited.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 81

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.23
BASIS FIXED BY BANK FOR LENDING VEHICLE LOAN TO
RESPONDENTS

No. of
Sl. No Options Respondent Percentage

1 Safety 44 44%

2 Liquidity 7 7%
3 Purpose 20 20%
4 Profitability 29 29%
Total 100 100%
(Sources: primary data)
ANALYSIS:
The above table show basis considered by the bank for lending loan. 44 respondents
are receive loan on safety basis, 29 respondents are received loan on profitability basis, 20
respondents are receive loan on purpose basis and only 7 respondents are receive loan on
liquidity basis.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 82

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.23
BASIS FIXED BY BANK FOR LENDING VEHICLE LOAN TO
RESPONDENTS

INTERPRETATION:
From the above graph analysed that, for 44% of the respondents bank sanction loan on
safety basis, for 29% respondents profitability is considered are base, 20% respondents are
benefited by purpose and remaining 7% of the respondents are sanctioned loan on the basis of
their liquidity position.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 83

LENDING PROCEDURE OF VEHICLE LOAN

TABLE: 5.24
SATISFACTION LEVEL OF RESPONDENTS WITH RESPECT
SERVICE BY THE BANK

No. of
Sl.No Options Respondent Percentage
1 Moderate 20 20%

2 Good 61 61%
3 Excellent 13 13%
4 Bad 6 6%
Total 100 100%
(Sources: primary data)
ANALYSIS:
From the above table considered for the study. 61 respondents are rate “Good” for
service renderdered by the bank, 20 respondents rate it is Moderate, 13 respondents rate
“Excellent” and remaining 6 respondents are dis-satisfied by the service.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 84

LENDING PROCEDURE OF VEHICLE LOAN

GRAPH: 5.24
SATISFACTION LEVEL OF RESPONDENTS WITH RESPECT
SERVICE BY THE BANK

INTERPRETATION:
The above graph indicate that majority 61% of the respondents are satisfied with the
service rendered by the bank. 20% of the respondents are opinioned it is moderate. 13% of the
respondents rate it is Excellent nut only 6% are not satisfied.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 85

LENDING PROCEDURE OF VEHICLE LOAN

6.1 FINDINGS:
1. It is found that, majority 84% of respondents are aware of vehicle loan.
2. It is observed from the study majority 48% of respondent are borrowed Two-Wheeler.
3. It is found that out of 100 respondent 56% of the respondents are aware of vehicle loan
through the friends\family members.
4. It is identified that, 57% of the respondents are borrowed loan amount 50000 to 100000.
5. It is found that, for 47% of the respondent’s bank disburse the loan with a month.
6. It is found that, for majority60% respondent’s bank sanctioned a loan of Rs 150000-
300000.
7. It is observed that, 43% respondents are changed 4% rate of interest by bank.
8. For 67% respondent’s bank changes 8000-10000 of processing charge.
9. It is found from the above study 63% of respondents are satisfied with the processing
charge.
10. For 67% respondents bank given 2 years of time to repayment.
11. It is found that majority 69% of the respondents are satisfied with the rate interest
charged by the bank.
12. It is found that, majority 67% of the respondents prefer monthly EMI for repayment.
13. It is found that, bank provide loan on the basis of security rather than liquidity, purpose
% profitability.
14. It is identified that, majority 61% of the respondents are satisfied with the service
offered by the bank.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 86

LENDING PROCEDURE OF VEHICLE LOAN

6.2 SUGGESTIONS:
1. It is suggested that, the bank Of Baroda still has to organise programs to create
awareness about vehicle loan benefits.
2. It is suggested that, the banker should motivate their customer to utilize the benefit
of vehicle loan.
3. It is suggested that banker has to reduce the time taken to disburse the loan.
4. It is suggested that, banker to respond the customers immediately.
5. It is suggested that, the bank has to extend the repayment period of loan.
6. It is suggested that, Bank of Baroda to extend vehicle insurance facility to
everyone.
7. It is recommended that to reduce the processing charge.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 87

LENDING PROCEDURE OF VEHICLE LOAN

6.3 CONCLUSSION:
Bank and vehicle finance company official pay direct and personal attention to
their customers and customers trust and prefer the banks as compared to vehicle
finance companies. The players of vehicle finance should look for innovative way to
reduce EMIs on cars and extending the tenure of loan. The vehicle finance companies
need to focus on other employees. The players in vehicle finance are required to offer
innovative vehicle loan schemes. The vehicle finance companies should appreciate
those consumers who have made regular repayment and also reward them financially.
Once you have decided on your vehicle type and model, the next step is to
compare lenders. use online comparison tables to find the interest rates, eligibility and
features of auto loans at various lenders, so that you can pick the best deal.

S. KARIYAPPA RURAL PG AND RESEARCH CENTER, KANAKAPURA Page 88