A REPORT OF SUMMER TRAINING

ON
VARIOUS TYPES OF LOANS PROVIDED BY
CITIZEN URBAN AND CO-OPERATIVE BANK
SUBMITTED IN PARTIAL FULFILLMENT FOR THE
REQUIREMENT OF THE AWARD
OF THE DEGREE OF

MASTERS IN BUSINESS ADMINISTRATION (2019)

(Human resources & Marketing)

SUBMITTED TO : GUIDED BY: SUBMITTED BY:

DR. Savdeep Vasudeva DR. Megha sharma Name: Leeza
ASSISTANT PROFESSOR ASSISTANT PROFESSOR Class : MBA ( 3rd sem)
Roll No.2125/18
Uni. roll no: 1803899

1
 DECLARATION

I undersigned Leeza student of MBA 3rd semester declare that I have done the project on

“VARIOUS TYPES OF PROVIDED BY CITIZEN URBAN AND CO-OPERATIVE BANK”

has been personally done by me under the guidance of DR. MEGHA SHARMA in partial
fulfilment of MBA program during academic year 2018-2020. All the data represented in
this project is true & correct to the best of my knowledge . I also declared that this project
report is my own presentation and not copied from anywhere else.

Date

Signature

Leeza

MBA 3rd semester

2
 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude, thanks and regards towards all of
those who have directly or indirectly helped me in the succesful completion of this project. I
present my sincere thanks to Mr.RAKESH SHARMA Who allowed me to take training at
CITIZEN BANK.

I also would like to thank CITIZEN bank staff for their wonderful support & inspirable guiding.
I also thank Prof. Megha sharma who has sincerely supported me with the valuable insights into
the completion of this project.

Last but not the least I am debted to my PARENTS who provided me their time, support and
inspiration needed to prepare this report.

DATE:

Place:

Signatures:

3
 Table of Content

CHAPTER TOPICS PAGE NO.

1 INTRODUCTION TO CO- OPERATIVE BANKING 6-13

1.1 Definition
1.2 Co-operative Banking an Introduction
1.3 Objective of Study
1.4 Origin of Co-operative Banking
1.5 Operations of Co-Operative Banking
1.6 Role of Co-Operative Banking
1.7 Types of Co-Operative Banking

2 INTRODUCTION TO ORGANISATION 14-17

2.1 Profile of the Bank
2.2 Adresses and Phone no.
2.3 Management
2.4 History of the Bank
2.5 Achievements & Awards

3 LOANS 18-28

4 OBJECTIVES & RESEARCH METHODLOGOLY 29-30

5 DATA ANALYSIS AND INTERPRETATION 31-34

6 DISCUSSION 35-37

6.1 Findings of study

6.2 Conclusion

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 CHAPTER-1
INTRODUCTION TO CO-OPERATIVE BANKING

1.1 CO-OPERTIVE BANKING - AN INTRODUCTION

Co-operative bank, in a nutshell, provides financial assistance to the people with small means to protect
them from the debt trap of the moneylenders. It is a part of vast and powerful structure of co-operative
institutions which are engaged in tasks of production, processing, marketing, distribution, servicing and
banking in India. A co-operative bank is a financial entity which belongs to its members, who are at the
same time the owners and the customers of their bank. Co-operative banks are often created by persons
belonging to the same local or

professional community or sharing a common interest. These banks generally provide their members with
a wide range of banking and financial services (loans, deposits, banking accounts…). Co-operative banks
differ from stockholder banks by their organization, their goals, their Values and their governance.

1.2 DEFINATION

“A Co-operative bank, as its name indicates is an institution consisting of a number of

individuals who join together to pool their surplus savings for the purpose of eliminating the
profits of the bankers or money lenders with a view to distributing the same amongst the
depositors and borrowers.”

The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank as a cooperative
registered as a co-operative bank in terms of the Act whose members –

1. Are of similar occupation or profession or who are employed by a common employer or who
are employed within the same business district; or

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2. Have common membership in an association or organisation, including a business, religious,
social, co-operative, labour or educational group; or

3. Have common membership in an association or organisation, including a business, religious,

social, co-operative, labour or educational group; or

4 . Reside within the same defined community or geographical area.

1.3 OBJECTIVES OF STUDY

 The Objective of the study of Co-operative Banking is to know the origin of Co-operative
Banks in India.

 To know the role of Co-operative banks in India.

 To know the importance of Co-operative Banks in India.

 To know the types of Co-operative Banks.

1.4 ORIGIN OF CO-OPERATIVE BANKING

The beginning co-operative banking in India dates back to about 1904, when official efforts were
made to create a new type of institution based on principles of co-operative organization &
management, which were considered to be suitable for solving the problems peculiar to Indian
conditions.

The philosophy of equality, equity and self help gave way to the thoughts of self responsibility
and self administration which resulted in giving birth of co-operative. The origin on co-operative
movement was one such event-arising out of a situation of crisis, exploitation and sufferings.

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1.5 OPERATION OF CO-OPERATIVE BANKING:
 Establishments:
 Co-operative bank performs all the main banking functions of deposit mobilisation,

supply of credit and provision of remittance facilities.

 Co-operative Banks belong to the money market as well as to the capital market.
 Co-operative Banks provide limited banking products and are functionally specialists in

agriculture related products. However, co-operative banks now provide housing loans

also.

 UCBs provide working capital loans and term loan as well.

The chief functions of Co-operative banks are

a. To attract deposit from non-agriculturist,

b. To use excess funds of some societies temporarily to make up for shortage in another,

The basic principles on which a co-operative banks works are:

 A co-operative character of activities and traits of mutual aid of credit

granted.

 Catering for collective org. And their members.

 Restriction on the number of individual votes.

As a result , during 2007-08, the Primary Coperative

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Agriculture and Rural Development Banks have again started lending for the Non Farm- Sector
inculding Jewel Loans.

 Aiming at high rates on deposits and low rates on lending.

 Limitation of dividends out of profits and bonus to depositors and borrowers or grants to
cultureal or co-operative endeavour.

These banks are constituted of voluntary association,self-help and mutual aid, one share one vote
and non- discrimination and equality of members. The co-operative banks are the org. Of and for
the people.

1.6 ROLE OF CO-OPERATIVE BANKING

The co-operative banks in RURAL AREAS mainly finance agricultural based
activities like:

 Farming
 Cattle
 Milk
 Hatchery
 Personal finance

The Co-operative banks in URBAN AREAS finance in activities like:

 Self-employement
 Industries
 Small scale units
 Home finance
 Consumer finance
 Personal finance

8
Some of the forward looking Co-operative banks have developed sufficient core competencies to
such an extent that they are able to challenge state and private sector banks.

IMPORTANCE OF CO-OPERATIVE BANK

Co-operative bank form an intergral part of banking system in India. This bank
operates mainly for the benefits of rural area, particularly the agriculturel sector. Co-operative
bank mobilize deposits and supply agricultural and rural credit with the wider outreach. They are
the main sources for the institutional credit to farmers. The are responsible for breaking the
monopoly of moneylenders in providing credit to agriculturists.

Co-operative bank has also been an important instrument for various development schemes,
particularly subsidy-based programmes for the poor. Co –operative banks operate for non-
agriculture sector also but theirrole is small.

Though much smaller as compared to schedule commercial banks, co-operative banks

constitute an important segment of the Indian banking system.

They have extensive branch network and reach out to the people in remote area. They have
traditionally played an important role in creating banking habits among the lower and middle
income groups and in strengthening the rural credit delivery system.

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1.7 TYPES OF CO-OPERATIVE BANKS

CLASSIFICATION OF CO-OPERATIVE BANKS

The Co-operative banking structure in India comprises of
1. Urban Co-operative Banks

2. Rural Co-operative Banks

Some co-operative banks are schedule banks, while others are non-schedule banks.
For instance, State Co-operative banks and some Urban Co-operative banks are
scheduled banks but other co-operative banks are non – schedule banks.

Schedule banks are those banks which have been included in the second schedule of the
Reserve bank of India Act of 1934.

The banks included in this schedule list should fulfill two conditions:

1. The paid capital and collected funds of banks should not be less than RS .5 lac.
2. Any activity of the bank will not adversely affect the interest of depositors.

Every scheduled bank enjoys the following facilities:

1. Such bank becomes eligible for debts/ loans on bank rate from the RBI.
2. Such bank automatically acquire the membership of clearing house.

1.URBAN CO -OPERATIVE BANKS

Urban Co-operative Bank also referred as Primary Co-operative banks by the
Reserve Bank of India. Among the non-agriculture credit societies urban co-operative banks

10
occupy an important place. This bank is started in India with the object of catering to the banking
and credit requirement of the urban middle classes.

The RBI defines Urban Co-operative banks as “Small sized co-operatively

organized banking units which operate in metropolitan, urban and semi-urban centers to cater
mainly to the needs of small borrowers, viz. Owners of small scale industrial units, retail traders,
professional and salaries classes.’’

The objectives and functions of the urban co-operative banks:

 Primarily , to raise funds for lending money to its members.

 To attract deposits from members as well as non-members.

2.Rural Co-operative:
Rural co-operative banking plays an important role in
meeting the groeing credit needs of rural population of India. It provides institutional
credit to the agricultural and rural sector. The inadequacy of rural credit engaged the
attention of RBI and Government thoughtout the 1950s and 1960s. One important
features of providing agriculture credit in India has been the existence of a widespread
network of rural financial institution branch expansion was undertaken to create a strong
institution based in rural areas.

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 CHAPTER-2
INTRODUCTION TO THE ORGANIZATION

2.1 PROFILE OF THE BANK

Co-operative institutions are intended for the welfare of the common
man particularly the poor section and have continous to play a vital role in the economic
development of the country. The Citizen Urban co-operative Bank Ltd. Jalandhar was started in
1989 with the meagre capital, few members and small operational limits. The bank has brought a
revolution in banking segment in its area of operations and is contributing to the needs of the
localise by providing attractive savings schemesand need based credit. The bank is pioneers in
introducing coperative movements for urbanities and providing them an opportunity to become
an partners in banking industry and avail benefits as an investors, depositors, and borrowers. The
bank is in profits since its inception and is sharing the same with its members.

The bank has made tremendous progress across the border since its
inception. The membership of the bank has risen from 62 members to more than 7000 and paid
up Capital from 10500.00 to Rs.6.22 crores. As on 31-12-2012, the bank’s Own funds have
grown to Rs. 28.26 crores and working capital to Rs. 272.95 crores which is manifestation of
peoples confidence in area of operation of the bank. The deposits of the bank have grown to Rs.
229.44 crores and advances have increased Rs. 120.30 crores.

All the branches of the bank are in profits and for the financial year 2011-
2012 , the bank has shown a net profit of Rs. 129 lacs. The bank is accredited with highest Audit
Classification ‘A’ by Registrar Co-operative Societies , Punjab since its inception. The bank has
created a niche in its areas of operations. The bank is providing credit for all viable economic
activities in its area of operations and catering to all segments of society. The bank has take
initiative in promoting and providing financial assistance to small acle industry, traders,
shopkeepers, unemployed youth and weaker sections.

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2.2 ADDRESSES AND PHONE NO’s OF THE BRANCHES

BRANCHES PHONE NO’S

Main branch,Opp. Circuit house, jal. 222007,224712

Partap Bagh, Mandi Fenton Ganj. Jal. 241006,223382

Banga Road,Nawanshahar 20837,24467

Mithapur Road Ravinder Nagar 273170,462170

Kishanpura Chownk,Ind. Area Road 294011,297085

New Sabzi Mandi, G.T. Road, Jal 204056

G.T. Road Banga 261084,263012

G.T. Road Opp.GNA, Goraya 263763

2.3 MANAGEMENT
The Citizen Urban and co-operative Bank Ltd. Jalandhar is a body corporate registered under the
Punjab Co-operative Scocieties Act 1961 and the rules framed there under. The bank functions
according to the Bye- Laws framed by it and registered by the Registrar, co-operative Societies ,
Punjab. The bank is governed under the democratically elected board of Directors who are well
reputed persons of the area. The term of the board is 5 years. The board has employed a Chief
Executive Officers and further staff to run day to day working of the bank. The Board of
Directors under the Chairmanship of Sh.K.K Sharma have drawn up ambitious futuristic plans to
compete with other banking institutions in the region. The board is well diversified and is being
reprensted by the various sections of the society including bankers, educationists, cooperators
and traders. The board is further assisted by experienced professionals like Financial consultants,
legal advisors, internal and external auditors.

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 2.4 HISTORY OF THE BANK
The Citizens Urban Co. Bank Ltd. Jalandhar which has emerged as a lending Urban Co-
operative Bank of Northern India was infact conceived in the late 80’s and started functioning on
17/11/1989 after receiving final nop from the Reserve Bank of India with 62 members and share
capital of Rs. 10,500/- within operational limits of Jalandhar and Jalandhar cantonment.

Since then, Citizens Bank has made a tremendous progress in

all the areas of Banking sphere. Only Recently, In the Fiancial year 1999-2000 , Citizens Bank
has set up a mile- stone in the Urban Co-op. Banking by achieving a 100 crores Deposit target
within 10 years of it,s working thereby becoming the only Urban Co-op. Bank of Northen India
who has met the 1st condition of the R.B.I for getting schedule Bank status. Marching ahead,
Bank Deposits now stands at 117.42 crores which is in itself a manifestation of people’s
confidence residing in the area of operation of the Bank. Citizens Bank which has nine Branches
made consistent profit gain right from it’s inception and has also earned a net profit of Rs.3.64
crores during the last financial year 2000-01. Bank has achieved this profit growth deposit the
fact that rate of interest was reduced from 0.5%-1% during the lst financial year. The most
satisfying aspect for the Bank management is that, all the nine branches have recorded profit in
the financial year 2000-01. Bank has also taken initative in the loan sector & advanced Rs.88
crores to weaker sections of the society, small-scale industries, housing, traders, shopkeepers and
unemployed youths in the financial year 2000-01.

This advancement has registered an increase of Rs.7 crores from the financial
year 1999-2000. The present membershio of the bank now stands at 6566 and share capital has
increased to Rs. 4.09 crores. Whereas Bank’s own funds and working capital has touched to Rs.
12.19 crores and Rs. 137.52 crores in the financial year 2000-01.

In fact, bank has achieved it ‘s objective to a great extent by helping people of weaker sections ,
financing S.S.I’s and developing infrastructure in the area of operations of bank.

14
 2.5 ACHIEVEMENTS AND MILESTONES:

 In order to encourage the best and honest employees of the bank and to create a
competition amongst the staff members to achieve their target and to improve their
service, the bank has started to honour the best workers of every branch. 18 staff
members were honored and awarded by the hon’ble Sh. Manoranjan Kalia, cabinet
minister, local bodies and industries, Punjab in the special general body meeting of the
bank held on 16.06.2007.

 To encourage the staff , the bank management honoured the staff members whose
working during the year found outstanding.

 Further keeping in the view the competition of the banking industry & attractive
packages given to the staff by the private as well as foreign banks, the bank has
introduced incentive schemes for the staff in which incentives to the staff will be given
on achieving the yearly target . With the implementation of the scheme, the staff will be
benefited financially, the staff will be motivated, and their morale will be boosted .

15
 CHAPTER-3 LOANS

One of the reasons for boom in Indian economy is that now a days loans are easily available and
the rate of interests at which they are available are very reasonable. Urban citizen cooperative
bank is giving loan for and loan against any and every thing. Government too is encouraging
people to take loans for certain purposes

Following are the some types of loans provided by urban citizen cooperative bank-

Personal loan/Consumer loan -

Products - CUCB Personal loan

a) Personal loan 1 lack or 8 times of monthly salary For casual financial obligations.

b) For emergency financial requirements.

c) Faster Processing

d) Minimum Documentation required

e) Attractive Interest Rates

Quantum of Loan
a) With CUCB Home loan, you can get a loan up to Rs.1, 00,000/- without collateral
security and Rs.2, 00,000/- with collateral security. Loan amount is eight times of
monthly income in case of salaried persons. In case of non-salaried persons loan
amount is sixty six percent of annual income.

Rate of Interest
a) Interest rate @13.00% p.a. on monthly rest.

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 Repayment Period

a) Five years.

Types of Personal Loans

 A secured loan is one in which you need to attach a guarantee against the sum of money
borrowed. This can either be in the form of your property or any fixed/movable asset.
Upon default, there is a risk of the asset being taken over by the bank and sold off.

 An unsecured loan is one in which no security needs to given for the money borrowed.
However, in this case, the lender would be charging a higher rate of interest, taking into
account the high risk involved in lending the sum. In case the recipient fails to repay the
loan, the lender can seek legal help to make up for the loss incurred.

Eligibility Criteria for Personal Loans

Salaried Individuals
 Minimum Age of the Applicant - 21 years

 Maximum Age of Applicant at Loan Maturity - 58 years

 Minimum Employment Period - 2 years in total and 1 year at present organization

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 Self Employed Professionals & Businessman

 Minimum Age of the Applicant - 25 years

 Maximum age of Applicant at Loan Maturity - 65 years

 Minimum Business Period - Minimum 3 years in current business and 5 years

total experience

 Minimum Annual Income is Rs/10000

Auto loan
With a plethora of auto loan opportunities available in India these days, it is now possible for you
to buy your dream car within a matter of days. No need to save up money for making complete
down payment at the time of buying. Urban citizen cooperative bank offer an easy auto loan
service to provide its constomer satisfactory service. Just gather enough amount for the initial
payment and pay the rest in easy installments, by taking up a loan. The best part about auto
financing is that, apart from the new cars, loans are available for old cars as well. After you have

decided to take an auto loan, check out the various schemes available in the bank. After
undertaking a thorough research of each and every scheme, you will need to pick the one that
suits you the most, in terms of interest rate, monthly installments, duration, and so on. The size
of the loan will depend upon the cost of the vehicle and its type (standard or premium), along
with the percentage financing you want or are being offered.

18
 Types of vehicle Rate of Interest

Three Wheelers/Scooter/Motor Cycle /Light Vehicle 11.25%

Car loans Upto Rs 4.00 lacs 11.25%
Car loans Above Rs 4.00 lacs 11.50%
Trucks and other Heavy Vehicles 13.50%

There is no necessity for any collateral to get a car loan from urban citizen cooperative bank
Usually, the bank hypothecates the car in its name. The endorsement for hypothecation is made
in the Registration Certificate (RC) book of the vehicle, which gets cancelled after the loan is
repaid. Usually the tenure of auto loan varies from 1 to 5 years. However, Urban cizen
cooperative bank has a schemes that offer loans for 7 years as well.

General Features
 In case of a new car, loan amount is up to 90% of cost of the car.
 In case of used car, loan amount is up to 80% of the car.
 The maximum loan amount is up to 3 times the annual salary (for salaried
professionals) or 6 times the annual income (for self employed professionals).
 Urban citizen cooperative Bank generally offer a preferential treatment to their
existing customers. If you have savings or current account with a bank, it is
easier to get the loan and you might also get preference in terms of rate of
interest.
 Loan is given for a period of 1 to 5 years.
 If you want to go for an early settlement of the loan amount, certain charges are
taken as a penalty.

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Eligibility Criteria

 Minimum Age of Applicant While Applying For Loan: 21 years

 Maximum Age of Applicant at Loan Maturity: 58 years
 Minimum Employment: 1 year in current employment and minimum 2 years of
employment in general
 Minimum Annual Income: Rs 100,000 (net)
 Telephone: Must at Residence

Documents Required

 Proof of Identity (Copy of Passport, PAN Card, Voters ID Card or Driving

License)
 Income Proof (Latest salary slip with form 16 - for salaried individuals or IT
returns for the last two financial years - for self employed individuals and
professionals)
 Address Proof (Copy of Ration Card/Driving License/Voters Card/Passport
/Telephone Bill/ Electricity Bill/Life Insurance Policy/ Pan Card)
 Bank Statement (For the last 6 months)
 Two passport size photographs.

Types Of Home Loans

 Home Purchase Loans: This is the basic home loan for the purchase of a new
home.

 Home Improvement Loans: These loans are given for implementing repair
works and renovations in a home that has already been purchased by you.

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  Home Extension Loan: This is given for expanding or extending an existing
home. For instance, you may apply for a loan for the addition of an extra room in
your home and for similar cases.

 Land Purchase Loans: This loan is available for purchase of land for both
construction and investment purposes.

 Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that
needs to be paid on the purchase of property

Type of Loan Rate of Interest

House and Building (Owned )

Upto to Rs 5.00 Lacs 10.25%

Above Rs 5.00 Lacs to 20.00 Lacs 10.80%

Above Rs 20.00 Lacs to Rs 25.00 lacs(Maximum) 11.25%

House and Buliding(Trust and Edu. Society) 13.00%

Eligibility Criteria
 The minimum age limit for the person applying for loan is 21 years.

 For Government employees and those working at public limited companies, the
maximum age limit for applying for home loan is 60 years, while for salaried individuals,
it is 58 years.. For self employed people, the maximum age limit is 65 years.

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 DOCUMENTS REQUIRED:

Salaries Customers Self Emoloyed Self Employed

Professionals Businessman

Application From with Application From with Applications From with

Photographes Photographes Photographes

Identity and Residence Identity and Residence Proof Identity And Residence

Proof

Latest Salaries-slip Education Qualification Education qualification

Certificate and Proof of Certificate and Proof of

Business existence Business existence

Form 16 Last 3 Years Income Tax Business Profile

Return (self and busi.)

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Education Loan:

Education is the essence of life. To ensure that no deserving student is denied education for
want of funds, the government is promoting education loans in a big way. The basic aim or
idea behind education loan is to bring education within the reach of students and help them
improve their prospects in life. Any student who has secured admission in an institute of
repute, whose degree/diploma is recognized by University/Institute affiliated to any
Central/State Statutory Body or recognized by AICTE (All India Council of Technical
Education) and other institutes of repute, is eligible for educational loan.

Education loans cover cost of the school/college fee, hostel expenses, and cost of books
and stationery. Apart from this, any other expense required to complete the course can also
be considered. The maximum amount of education loan is up to Rs. 7.50 lakh in case of
studies in India and Rs 15 lakhs for studying abroad. The sum of money offered is against a
third-party guarantee. The third-party guarantee can come from an uncle, neighbor or friend
standing guarantee for the full amount of the loan. On an
average, an education loan has to be repaid over a period of 5 to 7 years, with the provision
of a grace period of one year after completion of studies. The loan money has to be repaid
within 84 months in equated monthly installments (EMIs), commencing 12 months after
course completion or 6 months after getting the job, whichever is earlier. In case of overseas
study loan of 7 lakhs or above, the sum of money is usually given against fixed deposits,
NSC certificates and property worth the loan amount.

General Information for taking education loan from urban citizen cooperative
bank is:
 The exact rate of interest for education loan differs from one bank to the other.
However, it usually varies from 10 to 15 percent.
 Apart from the fee of the course, a list of other expenses is also covered by education
loans. However, the list depends upon the bank from which you are taking the loan.

23
  Education loan can be offered at fixed as well as floating interest rate. The interest is
usually charged on a daily or monthly reducing balance.

 Generally, nationalized banks have been seen to offer variable interest rates, while
private and foreign banks charged fixed interest rates on education loans.

 While applying for education loan, you will have to pay a percentage of the loan
amount, as processing fee.

 In most of the cases, the entire fee for a course is not financed by the bank. A certain
proportion, called margin, has to be paid by the applicant. The margin requirements
on education loans are not very rigid, with the average being 5 percent for studying in
India and 15 per cent for abroad.

Marriage Loan:
Marriage is one of the most important events in a person's life. You want to make
sure that all the arrangements are perfect and match the occasion. Marriage loans ensure that
money is not a hindrance in marriage preparations. Several Indian banks offer loans for marriage.
The loan is available for meeting the expenses of marriage of your own self as well as that of
your daughter, son dependent sister and dependent brother. The marriage loan amount that can
be sanctioned varies from bank to bank and from customer to customer, depending on a number
of factors, such as, security/collateral offered by the customer, repayment capacity of the
borrower, age of the borrower. Generally, it is twice the net annual income of the applicant.
There is no fixed interest rate for marriage loans in India. For the loan to be disbursed, the bride
and the groom should not be less than 18 years and 21 years of age respectively. Anyone can
apply for the loan. He/she has to fill a form at bank outlet. The bank charges processing fees, at
the time of submission of the form, which varies from one bank to the other. The repayment of
the loan can be done either through monthly/quarterly/half yearly installments or under Equated
Monthly Installments scheme.

24
The eligibility criteria to take marriage loan from Urban citizen cooperative
bank is:

 Minimum Age for loan: 21 years (groom)/ 18 years (bride)

 Maximum Age of Applicant at the Time of Loan Maturity: 60 years

 Net Annual Income: Rs. 1,44,000 p.a

 Years in Current Job / Profession: 1 year

 Years in Current Residence: 1 year

Business loan
Business loans are available to self employed professionals, firms and corporations, to meet their
operating expenses, finance capital expenditure (or acquisition of fixed assets) towards starting
or expanding a business. Even industrial units are given business loans, to swap existing high-
cost debt from other bank / financial institution. Apart from providing funding, bank can also
issue letters of credit or give a guarantee, on behalf of the customer, to the suppliers and even
government departments, for the procurement of goods and services on credit.

The maximum amount of business loan that can be sanctioned varies from bank to bank.
However, the minimum loan amount is Rs. 25000 and maximum loan amount is Rs 25 Lakh and
tenure is 5 years. Generally, no security is required for business credit up to a certain limit.

For business loans above the limit, banks usually require a collateral security or a percentage of
business loans as margin, in the form of fixed deposit with the bank. Business loans are similar
to an overdraft and are available like a limit on current account. In this case, the interest is
charged only on the actual amount utilized, rather the entire amount of loan.

25
Types of Business Loans

Professional Loans:
Professional loans, as their very name suggests, are provided to self employed professionals like
Doctor, Chartered Accountant, Interior Decorator, Architect, Company Secretary, etc. Unsecured
in nature, this type of loan is not given to manufacturing, trading or processing units. The amount
of loan varies between Rs. 25000 to Rs. 25 lakh, considering the age of the applicant, his
financial standing, his repayment capacity, tenure of the loan (maximum 5 years), etc. The urban
citizen cooperative bank provides loans to professionals including doctors,chartered
accountants,company secretaries,architects,engineers at the rate of 12.25%.

In case of professional loans, the rate of interest depends upon the prime lending rate, is
calculated on diminishing balance and can be on the fixed as well as fluctuating basis. In many
cases, it depends upon the customer's profile and his financial capacity. The payment is made
through EMIs and in only a few cases, tangible collateral security is required. Most of the
finance companies also charge a process fee, usually 1% of the loan amount.

Trade Loan
Trade loans are provided to traders/ businessmen, so as to help them either open a new business
or operate/expand an existing one. The amount of loan varies between Rs. 25000 to Rs. 100 lakh,
considering the age of the customer, his financial standing, his repayment capacity, tenure of the
loan, etc. The maximum duration for which the loan is given is 5 years and it has to be repaid
through Equated Monthly Installments or EMI.

The rate of interest depends upon the prime lending rate and can be offered on the fixed as well
as fluctuating basis. There are many banks that require customers to furnish collateral security
for the loan, in the form of mortgage of land (not agricultural land) and building. Apart from that,
National Savings Certificates, Government Bonds, Bank's Term Deposits, Assignment of Life
Insurance Policies, Approved Shares & Bonds (in the name of
borrower/proprietor/partner/director) are also acceptable.

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 CHAPTER- 4
OBJECTIVES AND RESEARCH METHODOLOGY

OBJECTIVES
This study has been conducted with a variety of important objectives in mind. The following
provides us with the chief objectives that have tried to achieve through the study. The extent to
which these objectives have been met could be judged from the conclusions and suggestions,
which appear in the later of this study.

• To get a practical knowledge of banking services.

• To get the knowledge about different types of loans schemes are available for lending
purpose.

RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge and methodology can
properly refer to the theoretical analysis of the methods appropriate to a field of study or to the
body of methods and principles particular to a branch of knowledge. A Research methodology
has a specified framework for collecting the data in an effective manner. Research methodology
means a "defining a problem, defining the research objectives, developing the research plan,
collecting the information, analyzing the information and presentation of findings." Such
framework is called "Research Design".

• My research problem is to know about the various lending facility which are provided
by Citizens Urban Co-Op. Bank Ltd.

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Secondary data : : In order to have a proper understanding of the service quality of bank a
depth study was done from the various sources such as books, a lot of data is also collected from
the official websites of the banks and the articles from various search engines like Google, yahoo
search and answers.com.

• The citizen urban and co-operative bank publish information about the performance of
the bank like share capital ,own funds , deposits , loans & advances etc quarterly in
newspapers.So, most of data about the citizen urban and co-operative bank are collected from the
newspaper .

• The another important source of collection of data about the bank is their prospectus
issued by banks which gives valuable information about the minimum limits sets up by bank for
,home loans and other types of loans etc.

• The information about the credit flow of citizen urban and co-operative bank i get from
the newspapers.

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 CHAPTER-5
SECONDARY DATA ANALYSIS AND INTERPRETATION

Performance of the bank

30000
25000
20000
15000
10000
5000
Series1
0
Series2

Interpretation:
The above chart depict the performace of the bank , during the financial year 2011-12 to 2012-13
which show the advancement in banking operations due to personalized service approach of the
members and small depositors . The bank has show the tremendous growth in all areas of its
operations

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 Financial Position of Bank

140000
120000
100000
80000
60000
40000
Series1
20000
0

Interpretation:
This chart depict the financial position of the bank as on 30.06.2019 (Rs. in Lakh) . The Citizen
Urban and Co-operative bank earn 845.84 profits during the year 2018 to 2019 which is also
responsible for improving the performance of the bank.

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CREDIT FLOW OF CITIZEN URBAN AND CO-OPERATIVE BANK

14%
26% TRADE
22% AGRICULTURE
12, 12%
SMALL SCALE INDUSTRY

26% TRANSPORTATION
HOUSING

Interpretation:
The above pie chart shows that the Citizen bank has more credit flow in small scale industries,
trade and in trasportation having in each sectors 26% , 26% , 22% respectively. The agriculture
and housing has 12% and 14% respectively.

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 RATE OF INTEREST ON HOUSE AND BUILDING

14
12
10
8
6
Series1
4
2
0
house and Above Rs.5 Above Rs. 20 house and
building lacs to 20 Lacs to Rs. 25 building
(upto Rs.5 Lacs Lacs (trust and
Lacs education )

Interpretation:
The above pie chart shows the rate of interest charged by the bank for different types of house
and building loan . The bank charge 10.25% rate of interest for the loan of upto Rs. 5.00 Lacs
and charge 10.80% rate of interest for the loan of Rs.5 Lacs to 20 Lacs and also charge 13.00%
rate of interest for providing the loan to house and building.

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 CHAPTER-6
SUMMARY, CONCLUSIONS & RECOMMENDATIONS

6.1 FINDINGS OF THE STUDY:

 The training project shows that maximum numbers of people are aware of
Lending facility of Citizens Urban Co-Op. Bank Ltd.

 It is revealed from the project report that majority of the respondents have come
to know about the lending facility of Citizens Urban Co-Op. Bank Ltd. through
newspaper followed by other sources i.e. friends, pamphlets, advertisement,
Banners etc.

 During the time of training I depicit that mostly 70-75 customers are daily visiting
in the bank for availing the different types of services of the bank like savings,
withdrawl , lending etc.

 Citizens Urban Co-Op. Bank Ltd. is a one stop bank because it provides all
modern banking services and products to customers under one roof.

 During the time of training I observed that customers spent only 5 to 10 minutes
to perform different kind of services in the Bank.

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6.2 CONCLUSION:
The customer satisfaction is very important for success of Bank. Only those Banks will be at the
top which satisfied their customer. If the employees are performing their Job efficiently it will
improve the customer relations. The face of Indian banking is changing rapidly. The competition
and challenges in Indian banking sector is increasing day by day. I made this project on the topic
entitled “Services provided by Citizens Urban Co-Op. Bank Ltd.”. From the above study I
concluded that the account holders of Citizens Urban Co-Op. Bank Ltd. are satisfied with the
bank. The banking is providing all modern banking products & services like Saving A/c, Current
A/c, Fixed Deposits, NRI A/c, Loans etc. to customers of Citizens Urban Co-Op. Bank Ltd.
Citizens Urban Co-Op. Bank Ltd. is one of the fastest growing co-operative bank in Jalandhar.
The bank has to take necessary initiatives in order to increase customer base. The bank should
increase number of branches and install ATMs at the prime locations of Jalandhar. The bank can
also introduce gifts and prizes from time to time. The interest for different deposits account
should be increased.

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 6.3 BIBLIOGRAPHY

Books :
 Khan Masood Ahmed (1992), “Banking in India”, Anmol publications, 3rd Edition, New
Delhi.
 Seethapathi K., Sivaram Y G and Rama T S, (2003) “Indian Banking System – The
Changing Scene”, ICFAI University Press

Websites :

 http://www.emeraldinsight.com/10.1108/eb010811
 www.emeraldinsight.com/10.1108/02652329710194964
 www.emeraldinsight.com/Insight/html/Output/.../0320170304.pdf
 https://www.ccblonline.com/
 https://en.wikipedia.org/wiki/Cooperative_banking
 http://www.sutexbank.in/pages/history-of-urban-co-op-banking/

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