Hdfc Bank

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DECLARATION

I, Vipin Upreti student of MBA 4thSemester, of IIMT management college Meerut hereby declare that the Research Project Report title as " LOAN SCHEMES AND CAR RECOVERY PROCEDURE OF H.D.F.C. BANK" is the outcome of my own work & I also declare that this report is my original work and no part of this has been published or submitted to anybody or any university by any one for the award of any other degree/ diploma.

Vipin Upreti

ACKNOWLEDGEMENT

It is a matter of great explanation and ecstasy for me to present my research project report the topic " LOAN SCHEMES AND CAR RECOVERY PROCEDURE OF H.D.F.C. BANK" I offer my sincere gratitude to every one involves directly and indirectly for his help and guidelines through out the project I am especially thankful to my project guide MR. Sandeep Kumar Lecturer, who had given me opportunity to complete project.

My project has been influenced by number of standards and popular text books.

I express my gratitude to the respective author.

Vipin Upreti

PREFACE

The opening of the economy has brought car buyers a plethora of models choose from. The decision to buy the car means the buyers have covered half the distance they need to travel to own their dream car. The second half, which is probably the more difficult path begins with the question "How are you going to pay for it?" i.e. whether the buyers wants to buy the car by their own funds or they want to finance it. The current sluggish market conditions coupled with the lowering of the inter rates; have made the car finance market extremely competitive. Final companies, dealers and manufacturers are wooing buyers with special offers/ such as low interest rates. To select the best cat loan scheme that suits the customer, it is necessary for the customer to first make himself familiarize with the mechanics of this market after which the customers will be in a better position to make up their mind. With the popularity of financing the problem of recovery has also borrowing for houses and appliances. Therefore, it is not infrequent that a person with multiple liabilities for funding his assets can sometime find it difficult to meet all his obligations in time. Now, come the question - how to recover the loan? In eve finance company, there is a specified loan recovery procedure. But even they are facing the problem of non-recovery of loan. Non recovery of installments as well as interest on the loan portfolio negates the effectiveness of the process of the credit cycle. Non recovery also affects the profitability of lenders besides required to maintain additional owned funds by way of capital and provisions recovery. This report will elaborate the basics of car finance, the various terms and some insights into how the car loan schemes work. It also contains collection strategy to be adopted for delinquency management.

INTRODUCTION

Finance plays an important role in economy. As banks, credit unions, and other financial institutions provide credit, they help expand the economy by directing funds from savers to borrowers. For example, a bank acquires large amounts of money from the deposits of individual savers. The bank does not let this money sit idle but instead provides loans to borrowers who might then buy a house / car or expand a business. The savings of millions of people percolate through many financial institutions, spurring economic growth. Thus the modem economic activities of any country cannot be imagined without money capital. every country has its own monetary and financial institutions, which restates the circulation of money and provide financial'" assistance of money and provide financial assistance to all economic activities. A wide variety of financial institutions have different roles...
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