Factors affecting Customer’s Decision for taking out Bank loans in Ahmedabad

Factors affecting Customer’s Decision for taking out Bank loans in Ahmedabad

“Factors impacting Customer’s Decision for taking out

Bank loans in Ahmedabad”

Executive Summary

Purpose:

The recent planetary fiscal crisis has highlighted the intense competition between Bankss for pulling clients ; therefore, research on choice standards used by clients to take a bank for making concern has been enriched with new methodological analysiss, findings and recommendations for both Bankss and clients.

This is of all time more of import when we take into history that Bankss and by and large the fiscal system have lost their repute and credibleness, as a consequence of certain fiscal minutess which brought about the economic crisis.

Hence, the banking industry appears as one of the most quickly emerging sectors necessitating to place the chief factors that lead to care of bing clients and ways to pull new 1s.

Methodology:

This is carried out utilizing quantitative study of 150 respondents of the Ahmedabad metropolis. Each respondent are personally contacted to make full up the questionnaire.

Determination:

  • Out of 150 respondents, 86.7 % respondents have received a loan, and 13.3 % respondents have non received a loan. This confirms that most of the respondents have received a loan but few of them have non really received but they consider the of import factors for receive a loan.
  • Respondents are sing loan factor, competitory involvement rates as one of the most of import parametric quantity.
  • In t value is positive for parametric quantity like, client services professionalism and credibleness of staff is good, possible client ailments, assortment of product- service provided by the bank, adequate information about loan, clip continuance for loan, simpler process, entire cost, ability to finance maximal to security ( belongings ) , EMI Based capablenesss, possibility of early refund, no demand of subventioning belongings, ability to supply insurance plan to protect the payment of installments, competitory involvement rates and privilege footings in comparing with other Bankss. So these parametric quantity non merely of import but more than of import for the clients.
  • The association between respondents received a loan with demographic factor, adult male are 1.71 times more likely to take a loan than a adult females and in age group between 31-40 and 41-50, respondents are more likely to take a loan than other age group.
  • Similarly, there is sufficient correlativity exists between the variables to returns with the analysis for take a loan.
  • For that 12 of import factors have been extracted from 20 eight variables contributed approximately 62 % fluctuation in clients determination for taking out bank loan.

Recommendation:

  • Customers place more accent on factors like involvement rates, installments and other factors like, entire cost, simpler process. Therefore, such factors should be considered earnestly by the Bankss in planing their selling schemes by widening their subdivisions and supplying good clients services to clients.
  • Since the age class between 41-50 has the most usage and more representation in the sample, Bankss should aim its selling mix toward this class.
  • Bank should besides concentrate on entire cost, carried by clients to take out a loan due to higher competition in the market there are different strategy available for processing fees for the loan.
  • Bank should necessitate decreased involvement rate on loans and high involvement rate on nest eggs and services offered. In this regard, Polish bank clients do non differ from clients of the banking industry in other states.

Index

SR. NO

Particulars

Page No

PART- I GENERAL INFORMATION

1

About the Industry

1.1 Introduction of Bank

1

1.2 Global Banking Sector

1

1.3 Indian Banking Sector

2

1.4 Growth in the industry

5

1.5 Banking construction in India

9

1.6 Types of Bank

10

1.7 Major Banks and merchandises in Banking Sector

12

2

About the company

2.1 Introduction of Company

15

2.2 Market portion and Management Pattern

20

2.3 Financial Highlights

21

3

Merchandise Profile

23

PART-II INTRODUCTION OF THE STUDY

4

Introduction of the survey

30

4.1 Literature reappraisal

32

4.2 Problem Statement and Importance of the Study

35

4.3 Objective of the Study

36

4.4 Background of the Study

37

4.5 List of Hypothesis

38

5

Research Methodology

5.1 Problem definition

39

5.2 Research design

39

5.3 Data Collection Method

41

5.4 Sampling design

41

5.5 Data Collection Instrument

42

5.6 List of Statistical Test used.

42

5.7 How to carry on statistical trial

44

5.8 Restrictions of the Study

46

6

Data Analysis and Interpretation

6.1 Descriptive Analysis

47

6.2 Inferential Analysis

51

7

Findingss

71

8

Recommendation

74

9

Decision

76

10

Bibliography

77

11

Annexure

78-81

List of Table

SR. NO

Particulars

Page No

1.

Table: 1 Major Bankss in planetary banking sector

12

2.

Table: 2 Major Bankss in public sector

13

3.

Table: 3 Major Bankss in private sector

13

4.

Table: 4 Shareholding form of axis bank

20

5.

Table: 5 Management form of axis bank

20

6.

Table: 6 Respondents receive a loan

47

7.

Table: 7 Gender of respondents

47

8.

Table: 8 Age group of respondents

48

9.

Table: 9 Marital position

48

10

Table: 10 Education degree

49

11.

Table: 11 Employment position

49

12.

Table: 12 Sector of employment

50

13.

Table: 13 Annual income group

50

14.

Table: 14 Personal belongings crook belonging to

51

15.

Table: 15 Reliability trial

51

16.

Table: 16 One sample T trial

53

17.

Table: 17 Association of taking loan with demographic factor

58

18.

Table: 18 KMO and Barteltt’s trial

60

Table: 18.1 Communalities

61

Table: 18.2 Entire discrepancy explained

62

Table: 18.3 Component Matrix [ Unrotated ]

64

Table: 18.4 Component Matrix [ Rotated ]

67

List of Figure

SR. NO

Particulars

Page No

1.

Figure: 1 Banking construction in India

9

2.

Figure: 2 Types of Bank

10

3.

Figure: 3 Banking merchandises and services

14

4.

Figure: 4 Merchandises of Bank

23

5.

Figure: 5 Customer Decision Process

30

6.

Figure: 6 Influence on client determination

31

7.

Figure: 7 Scree Plot

63