A PROJECT REPORT ON

CREDIT APPRAISAL
FOR

SHRIRAM TRANSPORT FINANCE CO.LTD JALGAON

SUBMITTED TO

UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION (MBA) SUBMITTED BY

YOGESH S.PATIL
UNDER THE GUIDANCE OF

SHUCHI GAUTAM
DEPARTMENT OF MANAGEMENT STUDIES

SANDIP FOUNDATION'S SANDIP INSTITUTE OF TECHNOLOGY & RESEARCH CENTRE, NASHIK- 422213. 2012-13

Objective of Study

To study the credit appraisal system of commercial vehicle finance. To study the documentation required for credit appraisal. To identify & suggest the scope for improvement in Credit Appraisal System. To study the LCC report of STFC.

RESEARCH METHODOLOGY:Data source Area of Research Research instrument Sample plan Sample unit Sample size Primary (Field Survey) Secondary data (internet) Jalgaon city Questionnaire Personal interview Truck owners, Transporters etc. 50 customers

Methodology is the important part of research study, which enables the researcher to form blue print of the research undertake. Research methodology involves the systematic procedure by which the research starts from the time of initial identification of the problem to the final conclusions. This chapter deals with different steps which are undertaken by the investigator for gathering and organizing the data. It includes the description of research approach, research design, setting of the study, population, sampling techniques, criteria for selection of the samples size, limitation, and method of data collection, development and description of the tools.

Means of research
The research is based upon various types of information, which give knowledge concerning the problem. Now in order to carry on research successfully, information should be gathered from proper source. The more valid is the source of information, the

RESULTS AND DISCUSSION WITH GRAPHS AND CHARTS:1) Do you own a HCV?
Number of customers Yes No Total 50 Nil 50 Percentage 100% Nil 100%

50 45 40 35 30 25 20 15 10 5 0 Number of customers Percentage No Yes

All respondents own Heavy Commercial Vehicle.

2) Source

of finance for your HCV?

Number of customers 3 30 10 7 50 Percentage 6% 60% 20% 14% 100%

Sources Co-op banks STFC Cholamandal Others Total

Number of customers
35 30 25 20 15 10 5 0 Co-op banks STFC Cholamandal Others Number of customers

60% respondents have taken loan from STFC . 20% respondents have taken loan from Cholamandalam and 3% from co-op banks.
While remaining 7% have taken from other finance companies.

3) Are

you aware of STFC?

Number of customers Percentage 80% 20%

Yes No

40 10

Number of customers
40 35 30 25 20 15 10 5 0 Yes No Number of customers

4) How did you come to know about this company?

Sources Friends Agents Advertisements Others

Number of customers 19 12 16 3

Number of customers
20 18 16 14 12 10 8 6 4 2 0 Number of customers

5) Do you get the finance quickly from STFC?

Number of customers Yes No 42 8 Percentage 84% 16%

Number of customers
45 40 35 30 25 20 15 10 5 0 Yes No Number of customers

o o

84% respondents are in favour of quick finance availability from STFC . While remaining 16% of them are not in favour of quick finance.

6) Are

you satisfied with the documentation process at STFC?

Number of customers 28 42 14 14 2 100 Percentage 28% 42% 14% 14% 2% 100%

Sources Highly Satisfied Satisfied Neither satisfied/dis-satisfied Dis-Satisfied Highly dis-Satisfied Total

Number of customers
45 40 35 30 25 20 15 10 5 0

Number of customers

7)

Do you require any changes in the documentation process?

Number of customers

Yes No

13 36

Number of customers
40 35 30 25 20 15 10 5 0 Yes No Number of customers

8) What

do you feel about the interest rates at STFC?

Number of customers 8 22 17 3

Sources Very High High Moderate Low

Number of customers
25

20

15 Number of customers 10

0 Very High High Moderate Low

9)

What are the features that attracted you to borrow loan from STFC?
Number of customers 6 10 84 Nil 100 Percentage 6% 10% 84% Nil 100%

Sources Low interest rates Easy documentation Quick finance Low EMI Total

Number of customers
90 80 70 60 50 40 30 20 10 0 Number of customers

10)

Are your queries cleared quickly?

Number of customers Percentage 82% 18% 100%

Yes No Total

82 18 100

Number of customers
90 80 70 60 50 40 30 20 10 0 Yes No Number of customers

11)

Are you satisfied with the repayment system of STFC?

Number of customers Percentage 64% 36% 100%

Yes No Total

64 36 100

Number of customers
70 60 50 40 30 20 10 0 Yes No Number of customers

12) Do

you want to take finance in near future from STFC?

Number of customers Percentage 60% 40% 100%

Yes No Total

60 40 100

Number of customers
60 50 40 30 20 10 0 Yes No Number of customers

Findings

Shriram transport finance company Limited is one of the trusted financial institutions in NBFC. Credit Appraisal plays the most significant role in funding the right and eligible person. From the information customers are satisfied with STFC, 45% customers are old customer.

Credit Appraisal plays the most significant role in funding the right and eligible person. The interest rate is lower than other banks and non-financial institution like ICICI, cholamandal, Sundaram etc. In the company the recovery rate is 85%. From the data the loan procedure of company is easy as compared to others. From the information customers are satisfied with STFC, 45% customers are old customer.