Abhudaya Bank(Final)

7/28/2019 Abhudaya Bank(Final)

1/18

Presented By: Suvidha Waghmare

Comparative Study Of Loans &Advances Of Abhyudaya Bank

with Other banks


2/18

To study the interest rates of loans& advance of Abhyudaya bank

and to compare it with other bank


3/18

To study the loans and advances and the depositsbeing provided by Abhyudaya co operative bankwith reference to Vashi branch.

To know the interest rates of other banks and tocompare those with our banks interest rates.

To analyse the different loans provided by thebank .

To study which bank gives the best loans at areasonable interest rates.


4/18

The research is carried out with the help ofprimary data and secondary data.

Primary data: It is collected through personal

visit to the banks and also by interacting withthe staff of the banks and the customers of thebank.

Secondary data: It is collected through Internet,Magazines, and Newspapers etc.


5/18

Abhyudaya Co-op. Bank Ltd., one of the leading UrbanCo-operative Banks in India, in its outlook andapproach, has the objective of progress and prosperityof all.

Beginning in January 1964 as a Co-operative Creditsociety with a share capital of a merely Rs.5,000/- heldby 83 members.

Today Abhudaya Co-op bank has become one of thelarge Urban Co-operative Banks with a "ScheduledBank" status.

The bank has been converted into a Multi-StateScheduled Urban Co-op. Bank w.e. f. 11th January,2007. The area of operation which was restricted to theState of Maharashtra has now been extended toKarnataka State.


6/18

Bank has taken Corporate Agency of LIC ofIndia & The New India Assurance Co. Ltd. andnow all types of policies of LIC & general

policies of New India Assurance Co. Ltd. aremade available at our branches.

Out of 105 branches, 22 branches are workingin double shift, rendering 11 hours service to

the customers.


7/18

The term "loan" refers to the amount borrowed by oneperson from another. The amount is in the nature ofloan and refers to the sum paid to the borrower. Thus,from the view point of borrower, it is 'borrowing' andfrom the view point of bank it is lending.

Loan may be regarded as credit granted where themoney is disbursed and its recovery is made on a laterdate. It is a debt for the borrower.

While granting loans, credit is given for a definitepurpose and for a predetermined period. Interest is

charged on the loan agreed rate and intervals ofpayment. Advance on the other hand, is a 'creditfacility' granted by the bank. Banks grant advanceslargely for short-term purposes.


8/18

Types Of Loan :

Demand LoanTerm Loan

Categories of Loan:

Secured Loans

Unsecured Loans


9/18

Comparative Study OfInterest Rates


10/18

Parameters Abhudaya Bank Saraswat Bank Cosmos Bank

Loan Products Education Loan,Vehicle Loan, Personal

Loan, Loan Against

Gold, Housing Loan,Secured Overdraft &

Loan AgainstNSCs/RBI

Bonds/LIC/KVP.

Vastu Siddhi Home Loan,Vehicle Loan, Doctor Delight,

Saraswati Education Loan,

Sammruddhi Credit Scheme,E-Stock loan, Loan AgainstGold, Multipurpose Loan,

Travel Loan, Advance AgainstRBI Bonds.

Education Loan, MortgageLoan, Vehicle Loan, Loan

Against Gold, Home Loan,

Credit Loan, Personal Loan

Interest Rates:

Personal loan 15%-17% 16% 14.50%

Vehicle loan:Upto 3 yrs

3yrs to 5yrs

5 yrs to 7 yrs

12.5%13.5%

11.00%11.50%12.00%

13.50%

14.50%

Education loan: 12.5% 14% 12.5%

Mortgage loan 17% 13.5% -

Loan Against Gold 13% 13.5% 14%

Housing loan:Upto 15 lac

15 lac to 25 lac

Above 25 lac

12%14%

15%

11.75%12%

12.25%

12.50%

13.50%


11/18

Processing Fees:

Personal loan 1.2% 1% -

Vehicle loan 1.2% 0.5% -

E-stock loan - Nil -

Education loan 1.2% 0.5% 0.1%

Mortgage loan 1.2% - -

Loan against gold0.6%

Nil

0.10%

Housing loan 0.60% Upto 15 lac Rs2000/-

15 lac to 25 lac Rs 5000/-

Above 25 lac Rs10,000/-

Rs.1500

Investment

Products

Fixed deposits,

Flexible deposits,

Insurance

Bonds, Equity, Fixed

Deposits, Flexible Deposits,

Insurance ,Mutual Funds,

Stock Investment.

Bonds, Equity, Fixed

Deposits, Flexible

Deposits, Insurance

,Mutual Funds, Stock

Investment.


12/18

Parameters Abhudaya Bank State Bank of India Bank of India

Loan Products Education Loan, Vehicle Loan,Personal loan , loan against gold,housing loan, secured overdraft

& loan against NSCs/RBI

bonds/LIC/KVP.

Home Loan Scheme, SBI CarLoan Scheme, SBI Student Loan

Scheme, SBI CAR Loan, SBISaral Personal Loan, Xpress

Credit (Demand Loan), LoanAgainst NSCs/KVPs/RBI

Relief Bonds/Surrender ValueOf SBI Life/LIC etc , LoanAgainst Gold Ornaments.

Star Personal Loans, Star

Vehicle Loan Scheme, Star

Education loan, Star Mahila

Gold Loan Scheme , StarPensioner Loan Scheme , Star

Holiday Loan Scheme , Star

Vidya Loan Scheme, Star Loan

Against Property Scheme.

Interest Rates:

Personal loan15%-17% 18.5% 15.5%

Education loan:Upto 4 lac

4 lac to 7.50 lacAbove 7.50 lac

11.5%(upto 20 lac)

13.50%13.25%12.00%

-13.00%12.50%

Vehicle Loan:New Vehicle:Second Hand

Vehicle

12.5%-13.5% 18.25%17.25%

12.25%12.75%

Loan Against Gold 13% 14.25% 13.50%

Housing loan:Upto 15 lac

15 lac to 25 lacAbove 25 lac

12%

14%15%

Upto 30 lac 10.75%

30 lac to 75 lac 11.00%Above 75 lac 11.25%

Upto 30 lac 10.50%

30 lac to 75 lac 10.75%Above 75 lac 11.25%


13/18

Processing Fees:

Personal loan 1.2% 2%-3% 1.10%

Vehicle loan: 1.2% 0.5%

Upto Rs 25000 is Rs 1000/

Upto Rs 25 lac 1%

E-stock loan - - -

Education loan 1.2% Nil Nil

Mortgage loan 1.2%

Loan against gold 0.6% 1% 2%

Housing loan 0.60% 0.5% Rs 50,000


14/18

CO-Operative Banks: From the comparison it has been seen that our interest rates on vehicle

loan are slightly higher than the Saraswat bank in regard to all the loansbeen provided.

The interest rates charged by our bank on different loans are slightly highas compare to Saraswat and Cosmos bank which also indicates the higher

profitability. Our bank is been providing loan against gold at a low interest rate as

compare to other two banks which seems that we are able to attract morecustomers.

Our bank is providing Education loan i.e. upto 10 lakh is 11.5% andabove 10 lakh its 12.5% where as Saraswat bank is giving loan upto 20lakh at 14.00% which is higher than our rates.

Cosmos is the bank that is giving education loan at a better rate of interestfor loan above 10 lac.

Interest rate charge on Home loan is high as compare to Saraswat andcosmos bank.

Processing fees charge by Abhyudaya Bank is very high for all type ofloan i.e. home loan, personal loan, car loan and education loan.


15/18

From the comparison it has been seen that SBI and BOI are giving loan fornew vehicle and also for second hand vehicle but wherein our banks areproviding loan only for purchase of new vehicle which indicates that thedemand for the people who want to buy a second hand vehicle is beenavoided by our banks.

Education loans provided by us upto 20 lakh is 11.5%-12.5% wherein SBIand BOI upto 4 lakh is 13.5%.

Our banks are providing loans to the customer at a low rate as compare toSBI and BOI which shows that we are able to attract the customers. State bank of India is charging a very high interest rates on Personal loan

as compare to other banks. Housing loan we are providing low amount of loan at a high rate of

interest wherein the State Bank of India & Bank of India are giving Highamount of loan at a low rate of interest.

Bank of India is providing Vehicle loan at a very low rate of interest ascompare to SBI & BOI.

Bank of India is providing Pensioner Loan to the customers where ourBank is not providing as such kind of loan.

Processing fees are higher as compare to other bank public sector banks.


16/18

Banks should use easy and less time consumingprocedure for sanctioning the loans to thecustomers.

There should be less no. of legal formalities tocompete in less time ,which will help to attractmore customers.

Banks should give extensive advertising to attractpotential customers.

We should make certain schemes for our loyal

customers in order to retain our customers. Banks should provide some new more categories

of loan to the customers like Travel loan, Holidayloan scheme, E- stock loan, etc


17/18

The study at Abhyudaya Co-operative Bank gave avast learning experience to me and has helped toenhance my knowledge.

Loans are to be processed faster by extending fasterand efficient customer oriented service. The customers

should be educated with the different credit facilities ina bank.This will create greater confidence among theinterested parties which will help them to choose themost suitable scheme.

The credit policy of the bank should be reviewedperiodically by taking into account changes in moneymarket, changes in the credit policy announced byReserve Bank of India and happening of the otherevents to protect the interest of the bank and tomaintain profitability.


18/18

Documents

Abhudaya Bank(Final)