FEDERAL SUMMER INTERNSHIP PROJECT REPORT

APRIL 2019 TO MAY 2019

“MARKET TREND ANALYSIS AND SOURCING OF CAR LOAN

THROUGH DEALER CHANNEL”

Submitted by
SRIKRISHNA S
 FEDERAL SUMMER INTERNSHIP PROJECT REPORT

Submitted by
SRIKRISHNA S
RA1852001010074
MBA 2018-20

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SRM INSTITUE OF SCIENCE AND TECHNOLOGY

Mahatma Gandhi Rd, Potheri, SRM Nagar, Kattankulathur,
Tamil Nadu - 603203
 CERTIFICATE

This is to certify that this project report “SOURCING OF CAR LOAN

THROUGH DEALER CHANNEL” is the bona fide work of SRIKRISHNA S

who carried out the project work under my supervision.

Mr. Sarath Kumar Reddy

Manager (Retail-Sales)
Zonal office- Federal Bank Ltd,
Royapettah,
Chennai-600 014
Place: Chennai
 ACKNOWLEDGEMENT

The internship opportunity I had with FEDERAL BANK was a great chance for
learning and professional development. Therefore, I consider myself as a very
lucky individual as I was provided with an opportunity to be a part of it. I am also
grateful for having a chance to meet so many wonderful people and professionals
who led me though this internship period.

Bearing in mind previous I am using this opportunity to express my deepest

gratitude and special thanks to the Mr. Karthik S, (Zonal Head- Sales) who in
spite of being extraordinarily busy with his duties, took time out to hear, guide and
keep me on the correct path and allowing me to carry out my project at their
esteemed organization.

I express my deepest thanks to Mr. Sarath Prasad, Mr. Sarath Kumar Reddy
and Mrs Shanthalakshmi for taking part in useful decision & giving necessary
advices and guidance and arranged all facilities to make the internship easier. I
choose this moment to acknowledge their contribution gratefully.

I perceive this opportunity as a big milestone in my career development. I will

strive to use gained skills and knowledge in the best possible way, and I will
continue to work on their improvement, in order to attain desired career objectives.
Hope to continue cooperation with all of you in the future,

Sincerely,
Srikrishna.S
Place:
Chennai
 EXECUTIVE SUMMARY

This is the internship report based on the two month long internship program that I
had successfully completed in FEDERAL BANK under Retail Sales-Chennai
Division as a requirement of my MBA program on Business Administration, SRM
University. As being completely new to practical, banking world setting, every
hour spent with the Retail team gave me some amount of experience all the time all
of which cannot be explained in words. But nevertheless, they were all useful for
my career.

This report includes how a Car Loan Sales Division works, what are the documents
and eligibility criteria for car loan, our key competitors and their market
performances and few areas of improvement.

With limited knowledge and experience I tried my best to make this report as much
understandable as possible and translated the real world experience into a
document. The various boundaries to process improvement and maintaining ethical
standards in a banking environment have also been experienced. But even so, how
those policies and practices are In-Line with the corporate strategy are discussed in
this report. Before drawing any conclusion based on this report it may be noted that
the report was prepared in a very short term and there is lack in data. But still the
report may be useful for designing any further study to evaluate the data provided
by the banks.
 TABLE OF CONTENTS

Chapter No Title

Executive Summary

1 Introduction –

About company

Responsibilities and Interpretations

2 Objectives and Survey methods (Data collection details

including sourcing and analysis)

3 Results and Recommendations (include Data Analyses and

interpretation )

4 Summary and Way forward

References
About the Bank:

Federal Bank Limited is a major Indian commercial bank in the private sector
headquartered at Aluva, Kerala having more than thousand branches and ATMs
spread across different States in India. The Bank is a pioneer among traditional
banks in India in the area of using technology to leverage its operations and was
among the first banks in India to computerize all its branches. The Bank offer its
customers, a variety of services such as Internet banking, Mobile banking, on-line
bill payment, online fee collection, depository services, Cash Management
Services, merchant banking services, insurance, mutual fund products and many
more as part of its strategy to position itself as a financial super market and to
enhance customer convenience.

The history of Federal Bank dates back to the pre-independence era. The Bank was
incorporated on April 23, 1931 as the Travancore Federal Bank Limited,
Nedumpuram under the Travancore Companies Regulation, 1916. Late K.P.
Hormis, the visionary banker and founder took up the reigns in 1945 and built the
bank a nationwide institution. The Bank's name was changed to The Federal Bank
Limited on December 2, 1949. The Bank was licensed under the Banking
Regulation Act, 1949, on July 11, 1959 and became a scheduled commercial bank
under the Second Schedule of Reserve Bank of India Act, 1934 on July 20, 1970.
Today the bank is present in 25 States, Delhi NCT and 4 Union Territories and the
bank is listed in BSE, NSE and London Stock Exchange.
VISION – MISSION

Our Vision
To be the ‘Most Admired Bank' which is digitally enabled with a sharp focus on
Micro, Medium and Middle market enterprises.

Our Mission
Devote balanced attention to the interests and expectations of stakeholders, and in
particular:
Shareholders: Achieve a consistent annual post-tax return of 18% on net worth.
Employees: Develop in every employee a high degree of pride and loyalty in
serving the Bank.
Customers: Meet and even exceed expectations of target customers by delivering
appropriate products and services, employing as far as feasible, single window and
24-hour-seven-day-week concepts, leveraging a strengthened branch infrastructure,
ATMs, other alternative distribution channels, cross-selling a range of products
and services to meet customer needs varying over time, and ensuring the highest
standards of service at all time, guided by our principle of being 'Digital at the fore,
human at the core'.
BRANCH AND ATM DISTRIBUTION
PORTFOLIO DISTRIBUTION

₹ in Cr
OUR STANDINGS:
 Federal Bank SWOT Analysis

SWOT ANALYSIS

Below is the Strengths, Weaknesses, Opportunities &

Threats (SWOT) Analysis of Federal Bank. Strengths are:
1. Good credit quality and capital adequacy ratio.
2. Innovative products and service offerings
3. Expansion across country and advanced services
Strengths 4. Maintaining the standard and quality.

Here are the weaknesses of Federal Bank :

1. Lack of penetration in to the corporate.
Weaknesses 2. Lack in marketing and advertisements

Following are the Opportunities of Federal Bank :

1. Development in digital banking
2. Continuous growth in CASA products.
3. Improvement in retail loan services.
4. Targeted branch expansion across geographies. (40
Opportunities new branches)

The threats of Federal Bank are as mentioned :

1. Increasing growth of private sector banks like HDFC,
ICICI, BANK OF BARODA etc.
2. Highly competitive market environment
Threats 3. Stringent Banking Norms
AUTO LOAN

Gone are the days when people would dip into their cash reserves and savings to
buy cars. Almost all – both individuals and companies – prefer to buy vehicles on
installments, because that allows them the liberty of not having to invest a huge
amount upfront. That’s the need gap being filled by almost all banks and financial
institutions, who now offer auto loans on lucrative terms to consumers, egging
them to fulfill their dreams and aspirations, just by paying some extra interest.
According to industry estimates, in the last few years alone, 60% of cars were
bought through finance deals. Two-wheelers, being cheaper, had a smaller share in
the auto loans market.
With more and more attractive car and two wheeler brands and models jostling for
the consumer’s attention, banks and financial institutions, are also falling over each
other to offer the most customer-friendly loan schemes, which can suit even the
most humble earnings. That’s what creates an embarrassment of riches – a
confusion over which bank to choose and which loan to opt for.
Based on certain conditions, banks in India are more than willing to extend a car
loan to finance the major share of the car's cost.
Certain terms of services offered by Banks are explained as follows:

A secured loan
Beginning with the basics, a car loan by nature is a secured loan. The vehicle or car
you are buying will be the collateral or security for your loan. Until you complete
the loan repayments, your lender will have complete authority over the purchased
car.
The margin money or down payment
Initially, for a car loan, there is some amount (usually 15% to 30% depending on
the car model and bank), which has to be paid up front to the car loan company.
This amount is called the margin money or the down payment.

Ex-showroom or on road prices:

Some banks provide car loans at On Road Prices. This means that the loan amount
sanctioned for your cars will contain the ex-showroom price of the car plus the
insurance, the road tax and any other amount that is required. The car loan amount
in case of On Road Price will be significantly greater than the Ex-showroom price
of the car.

Fixed and Floating Interest Rate:

A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during
the fixed rate period of the loan. This allows the borrower to accurately predict
their future payments.

A floating interest rate loan is also referred to as adjustable, variable or flexible

interest rate loan. The home finance company will decide upon a base rate --
known as the floating reference rate. In such a loan, the interest rate keeps
changing. So, the interest rate on the loan will go up or come down depending on
how the interest rate in the economy is moving. This, in turn, will impact the EMI.

Loan tenor is defined as the length of time until a loan is due.

Repayment structure

 Fixed Rate of Interest:

This is the most common type of repayment structure where you pay regular
even amounts, subject to interest rate.

 Step Down Payment Structure

The EMIs are large in the early part of the tenure, and are lowered after
some years.

 Step up Payment Structure

The EMI is lower in the early part of the repayment period, which gradually
increases as the income of the customer increases. Typically, in this case, the
loan is slotted into three ranches based on the potential income profile of the
customer.
Auto Loan Finance Process

 Submission of filled out Application Form.

 Login, with all required documents.
 Residence verification, Office verification and Tele- verification at residence &
office. Normally done by external agencies.
 Industry credit match with other banks and finance institutions for credit
history.
 Final credit approval and amount of loan eligibility are determined at this
point.
 Submission of signed agreement, postdated cheques along with other necessary
documents.
 Pre-disbursal check at operations.
 Pre-disbursal call to the customer for confirming the EMI and interest rate as
documented by the customer.
 Disbursement.
 Release of payment and vehicle release order to the specified authorized
dealer.
 Letter of communication send to the customer with all details for future
reference.
FEDERAL AUTO LOAN

Finance shall not be a red signal when your dream car opens door for you. Drive home with
Federal Car Loan.

Features & Benefits

 Funding upto 100% of ex-showroom price

 Repayment period upto 84 months
 Competitive interest rates
 Free Personal accident insurance upto Rs. 10.00 lakhs for individuals
 Nil Pre-closure charges for individuals
 Can be availed for buying new car, used car and new two-wheelers
 Re-imbursement within 1 month of car purchase date
 No-income document scheme
 Faster processing

Documents Required

 KYC Documents
 Two passport size photos each of the applicant/ and the co obligant
 Identity Proof – Passport / Voters ID / Driving License/ PAN Card / Aadhaar Card
 Address Proof – Passport / Voters ID / Driving License / Aadhaar Card
 Age Proof – Passport / Birth Certificate / Driving License / SSLC or AISSE Certificate
 Additional documents for Non Resident Customers - Certified copy of Passport, Visa,
Work Permit, ID card
 Latest Salary Certificate / Salary Slip (3 months)
Resident Salaried Copies of IT returns (2 years) or Form No.16 (2 years)
Latest 6 month's Bank Account statement evidencing the salary credits

Proof of Business existence & Business Profile

Last 12 months bank a/c statements
Resident Self IT returns for 2 years supported by Balance Sheet, P&L Account for the past
Employed two years. Where ever available, Tax paid challans may also be
collected OR Last 2 years IT returns supported by Tax calculation sheet &
Tax paid challans

Option 1
NRE account statement with any bank for last one year
Embassy / CRO certified Salary Certificate/ latest 3 months salary
Non Resident Salaried
Slip OR Latest Salary Certificate / Slip (3 months) supported by 6 months
(either of option1 or
Salary Crediting Statement
option 2)
Option 2
Two years NRE a/c statement of the customer and/or resident accounts of
spouse/parents (with us/ other Bank) in which remittance is made.

Option 1
Proof of Business existence & Business Profile
Last 12 months bank a/c statements
Non Resident Self
Balance Sheet, P&L Account for the past two years. Where ever available,
Employed (either of
Tax paid challans may also be collected
option1 or option 2)
Option 2
Two years NRE a/c statement of the customer and/or resident accounts of
spouse/parents (with us/ other Bank) in which remittance is made.
Other Documents
 Invoice
 Latest land tax receipt or own house proof (latest land/building tax receipt, Electricity
Bill, Water bill Etc.)
 Sale Letter & Valuation letter from authorized used car dealer /dealer in case of Used Car
 Property Documents (In case of loans over 25 Lakhs)
 Documents of title
 EC for 13 years
 Possession certificate
 Location sketch
 Land tax receipt
 Building tax receipt

Repayment options

Repayment of the loan can be made as EMIs

Other Terms & Conditions

 Income of the applicant

 Minimum take Home after meeting all monthly EMI commitments including the
proposed one should be at least Rs.20000 (lower take home pay requirement for rural,
semi urban locations)
 Spouse's income can be clubbed.
 Agricultural Income/Rental can be clubbed with regular income(minimum monthly
income to be At least Rs.40,000, including agriculture income/rental income)
 Period of the loan
 New Vehicles (other than two wheelers) - 60 months
  New Vehicles (for Salaried) - 84 months*
 Used Vehicles - 60 months
 New two wheelers - 48 months

Conditions for used vehicles

 Depreciation using Straight Line Method @ 15% for the first year and @ 10% for
subsequent years.
 Part of the year shall be counted as one year.
 Age of vehicle not more than 3 years

 In the case of used vehicles 75 % on lower of depreciated /market / purchase value only
eligible.
COMPETITORS ROI COMPARISON:

Below is the Different rate of interest charged by some of the key market
competitors of federal Bank:

RATE OF
BANKS PROCESSING FEE
INTEREST
ICICI 8.65 0
FEDERAL BANK 9.15 0
HDFC 9.25 0.4
SBI 9.3 0.51
INDIAN BANK 9.5 0.22
BANK OF BARODA 9.65 0.75
KOTAK 11.5 0
GIVEN RESPONSIBILITY:

TO BE ENGAGED IN DOING CAR LOAN TIE UPS WITH THE BANK. SHALL MEET THE
DEALERS ON A REGULAR BASIS AND PRESENT THEM THE FEDERAL BANK CAR
LOAN PRODUCTS.

DEALERS MET:
 MR.MOSES (FINANCE MANAGER- CAPITAL HONDA) AND ENQUIRED
ABOUT
1. The market trend of car loan
2. Other bank products and services
3. Satisfaction level of service provided by Federal Bank (Since he is our existing
Dealer)
4. Other expectations from Federal Bank
5. Other bank’s Payout and Interest Details

 MR.UDHAY (FINANCE MANAGER-FPL HYUNDAI) AND COLLECTED SOME

DATA ON:
1. Other bank products and services
2. Satisfaction level of service provided by Federal Bank (Since he is our existing
Dealer)
3. Other expectations from Federal Bank

 MR. J.G. JAIKUMAR (FINANCE MANAGER- KUN HYUNDAI) FOR NEW

AGREEMENT
 ZULAIKA MOTORS EXISTING DEALER OF FEDERAL BANK

 INITIAL MEETING WITH MR.DHANDAPANI (FINANCE - TATA CONCORDE)

AND EXPLAINED OUR PRODUCT DETAILS.

 INITIAL MEETING WITH MR.SUNDAR (FINANCE – TVS MAHINDRA) AND

EXPLAINED OUR PRODUCT DETAILS.
 INITIAL MEETING WITH MR.ISMAIL (SALES MANAGER – HMP HYUNDAI)
 MR.JAGAN (FINANCE MANAGER – HMP HYUNDAI) FOR DEALERSHIP
AGREEMENT.

 MR.IRUDHAYARAJ (FINANCE- - KUN RENAULT) FOR NEW DEALERSHIP

AGREEMENT
INTERPRETATIONS FROM THE MEETING:

 Federal bank is rated the best in terms of RATE OF INTEREST.

 SBI and Bank of Baroda provides the Major support for most of the dealers
because of their deviations and risk taking ability.
 Metro city expenses which is being followed by federal bank is one factor
because of which many files are moved to other banks.
 Many customers do not know the features and benefits of federal bank
which is another drawback for federal bank. Federal bank lacks in market
advertising.
 FINZAP( Agents for sourcing) concentrates on getting files on daily basis
and involves in new dealership tie ups.
 ICICI varies their rate of interest based on the type of vehicle.( For ex: ICICI
charges different rate of interest for ASCENT, SANTRO, CRETA with
same HYUNDAI delar)
 The rate of interest of HDFC differs on the basis of price of the vehicle.
 Bank of Baroda is being one of the key competitor of Federal Bank provides
the highest Dealer payout in the market of 3%. Due to that so may businees
is doen with bank of baroda.
 One of the advantage of federal bank is the processing fee wavier, where we
will not charge any processing fee in case of good file with better credit
position.
 Yes Bank provides topup facility for the existing loan and they focus
majorly on USED CARS segment.
 Federal Bank do not involve in providing loans to commercial vehicles
where as other banks are getting better business from Commercial vehicles.
 Some banks like Bank of Baroda, HDFC provides pre-approval car loan
facility and making the process easier.
 Kotak charges higher rate of interest but the TAT is minimum, considering
it customers prefers to go with KOTAK.
 Based on the above meetings and market data analysis. Below is the SWOT
ANALYSIS of Federal Auto Loan:

SWOT

Below is the Strengths, Weaknesses, Opportunities and

Threats (SWOT) Analysis of Federal Auto Loan.
Strengths are:
1. Lowest rate of interest in the market.
2. Advance EMI option.
3. No prepayment charges and wavier of PF in case of
good files.
Strengths 4. Loan Disbursement in 1 day TAT.

Here are the weaknesses of Federal Car loan :

1. Lack of risk taking ability and lower deviation rate.
Weaknesses 2. Lack of advertisements of Federal car loan

Following are the Opportunities:

1. Because of reduce in payout structure from other
banks, federal bank can aim at better business with
current payout.
2. Finzap concentrating on brining at least 10% business
every month from each dealer.
3. With lower rate of interest, finance for luxury cars is
Opportunities getting increased.

The threats of Federal car loan are as mentioned :

1. Increasing growth of private sector banks like HDFC,
ICICI, BANK OF BARODA etc.
Threats 2. Highly competitive market environment
BELOW ARE THE LIST OF NEW DEALERSHIP AGREEMENT SIGNED:

1. VST TITANIUM MOTORS PVT. LTD- MERCENDES

BENZ

2. KUN HYUNDAI MOTORS PVT. LTD- HYUNDAI

3. KUN RENAULT PVT. LTD- RENAULT

4. VISHNU CARS INDIA PVT. LTD- MARUTI

5. KHIVRAJ MOTORS PVT LTD- MARUTI

6. TATA CONCORDE PVT. LTD- TATA

7. MAHINDRA TVS & SONS PVT. LTD- MAHINDRA

 GENERAL SURVEY

AIM:
To carry out a data analysis of auto loan customers and develop appropriate products/schemes to
fulfill these needs.

OBJECTIVES:
1. To ascertain the perceptions of customers regarding car loan financing provided by different
banks.
2. To assess the auto loan requirements of car owners and prospective car owners.
3. To develop appropriate products/schemes to fulfill these needs.

Benefits of the Study:

The study will help FEDERAL BANK Car Loans to devise appropriate products/strategies.
These products would help to fully complement their customers’ needs with regards to their loan
requirements.

Importance of the Study:

With more and more attractive car brands and models jostling for the consumer’s attention,
banks and financial institutions are competing aggressively to offer the most customer-friendly
loan schemes. In this context, it is important to understand the consumer buying behavior of auto
loan customers.

Limitations of Study:
Time availability was one of limiting factor due to which we will have to limit our sample size.
Limited choice of application based software.
Limited expertise in analysis of data through use of application based software.
Limited access to secondary data
 SAMPLING METHODS

1. Target Population
The Population consists of all customers desirous of financing their car purchase through loans
provided by banks.

2. Sample frame
The Sample frame consists of all customers visiting various car dealerships.

3. Sampling Method
Probability sampling is used as the sampling frame is available, population is homogeneous and
population details are available.

4. Sampling Procedure
Simple random sampling
The population has different categories like people belonging to different age groups, different
income levels each have different perceptions of a loan product depending upon their need. So
we are using simple random sampling.

5. Description of the Sample

The sample size of 62 was collected by interviewing customers at the following dealerships in
and around Chennai:

Dealership Brand

Concorde Motors (India) Limited. Tata Motors

Kun Hyundai Hyundai

Zuleka Motors Mahindra

Maruthi Nexa Maruthi

 Summary of Findings

Overview of the Sample Size:

Price Range 1-5 lakhs 10-15 lakhs 5-10 lakhs

Survey Size 35 9 18

Interpretation

The sample size indicates a larger proportion of customers visiting auto dealerships around
Chennai had a preference for cars within the price range of Rs. 1-5 lakhs (Small Car segment).
The Mid Car Segment was preferred by customers at a price range of Rs. 5-10 lakhs.
A small percentage of the sample size preferred the luxury car segment for cars price above Rs.
10 lakhs.
Overview of Loan Tenure:

Loan 3 4 5 More than 5

Tenure years years years years
Survey
Size 6 10 34 12
OVERVIEW OF OTHER PRODUCTS:

Discounted personal loan 2%

Discounted life Insurance 5%
Disc on Education loan 10%
No preferences 19%
Discount on vehicle insurance 52%
Insurance on Loan cover 78%

Chart Title

Insurance on Loan cover 78%

Discount on vehicle insurance 52%

No prefernces 19%

Disc on Education loan 10%

Discounted life Insurance 5%

Discounted personal loan 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

OVERVIEW OF CUSTOMER PREFERNCES:

Flexible EMI repayment options 19%

Loan Disbursement 36%
Loan tenure 10%
Down Payment 31%
Prepayment charges 20%
Rate of Interest 65%

CUSTOMER PREFERENCE

Rate of Interest 65%

Prepayment charges 20%

Down Payment 31%

Loan tenure 10%

Loan Disbursement 36%

Flexible EMI repayment options 19%

0% 10% 20% 30% 40% 50% 60% 70%

BANK PREFERENCE:

Auto Loan Terms of Service Bank A Bank B Bank C

Not
Flexible EMI repayment options Available Not Available
Available
Loan Disbursement (in days) 1-3 days 6-8 days 10-12 days
Loan Amount excluding Margin
90-100% 85% 80%
*(On-Road Price)

Loan Tenor (Years) 7 6 5

Down Payment (%)

0-10% 15% 20%
*(On-Road Price)
Prepayment Charges
*(On % of Principal Amount prepaid) 5% 2% 1%

At Par(As
Rate of Interest
9.5-10.5% above per bank 9.2-9.8%
*(as per industry average)
rate)

BANK A BANK B BANK C

26 15 21
Recommendations and Conclusions

From the above analysis it has been clear that:

 Customers are giving much preference to the loan margin as well
as the rate of interest as per the current market irrespective of the
price range of the car.
 Federal bank should aim at providing additional cross selling
products like life insurance and car insurance coverage.
 Respondents had a favorable opinion of structured EMI payment
methods and responded positively if such customized payment
methods were offered. The data indicates that the customers were
more responsive towards a structured EMI payment method which
suited their needs.
 Respondents also considers Loan disbursement time as one of the
key factor. Federal bank should aim at reducing the TAT for car
loan.
 Customers are keen towards different repayment options. Just like
ADVANCE EMI option, federal bank should bring in new
repayment methods other than the existing simple repayment
method.
 Loan Tenure can be increased as in the case of luxury car segments
in order to vary the rate of interest.
 Insurance on loan cover (Credit Assure) was well received among
customers.
 Also a Discount on vehicle insurance was also preferred among
respondents.
 QUESTIONNAIRE

Dear Sir/ Madam,

We would be grateful if you could answer the following questions honestly. Your
valuable time spared will assist us in collecting relevant data in our area of research. All
information collected will be treated as confidential. Information gathered is strictly for
research purpose.

 Please tick the check boxes wherever applicable

Name (Optional): _____________________________________________________________

Age (yrs): 18-30 31-40 41-50 51 & above

Profession: Salaried Self-Employed Business

Annual Income (Rs):

Less than 1,00,000 1,00,001 – 4,00,000 4,00,001 – 7,00,000

7,00,001 – 10,00,000 10,00,000 & above

First-Time Buyer: Yes No

1) Which Car do you intend to purchase?

_______________________________________

2) What would be the price range of the Car you intend to purchase? (Rs. In lakhs)

1-5 lakhs 5-10 lakhs 10-15 lakhs 15-20 lakhs

Above 20 lakhs
3) What type of Rate of Interest (ROI) facility do you prefer on your auto loan deal?
Fixed Floating

4) What is the % of Loan to value (LTV) deal you expect for your auto loan?
Less than 50% 50-70% 70-80% 80-90%
90-100%

5) What is the Loan Tenor you expect? (No. of Years)

1 2 3 4
5 more than 5

6) Are you willing to utilize flexible EMI repayment facilities if offered?

Yes No

7) What is the type of EMI repayment facility you prefer?

Quarterly reducing Monthly reducing Weekly reducing
Daily reducing Others (Please Mention) ___________________

8) Please see the terms offered by three different Banks A, B, and C for a particular car in your price
range. As per your requirements, please tick the Bank you would most likely seek to finance your
auto loan.

Auto Loan Terms of Service Bank A Bank B Bank C

Flexible EMI repayment options Available Not Available Not Available

Loan Disbursement (in days) 1-3 days 6-8 days 10-12 days

Loan Amount excluding Margin

90-100% 85% 80%
*(On-Road Price)

Loan Tenor (Years) 7 6 5

Down Payment (%)

0-10% 15% 20%
*(On-Road Price)
Prepayment Charges
5% 2% 1%
*(On % of Principal Amount prepaid)
 Rate of Interest At Par(As per
9.5-10.5% above 9.2-9.8%
*(as per industry average) bank rate)

Bank A Bank B Bank C

9) With reference to the previous question and as per your selection, please rank the 4 most Important
Auto Loan Terms of Services offered.
(Rank 1 – Highest importance to Rank 4 – Lowest importance)

Auto Loan Services Rank (1 to 4)

Flexible EMI repayment options
Loan Disbursement (in days)
Loan Tenor (Years)
Down Payment (%)
Prepayment Charges
Rate of Interest (%)

10) What kind of additional services do you expect along with your auto loan? Please check the boxes
below:

Insurance Cover on Loan

Discount on (Please select from below):
General Insurance premium (Vehicle) Education Loan
Health Insurance premium (for self and family) Personal Loan
Life Insurance premium
REFERENCE

 www.federalbank.co.in
 www.wikipedia.org
 www.google.com
 Car dealership showrooms and other primary sourcing of data.

THANK YOU