B.K School Of Management |2015-17 0

PROJECT REPORT

ON

Loan against Property Analysis -

MAS V/S Competitor companies

Submitted in partial fulfillment for the award of degree of

Master of Business Administration

Company Guide College Guide

Mr.Vineet Kumar Gupta Dr. Nilam Panchal

Submitted By

Bhavesh Patel

Submitted

To

Department of Management Studies

BKSM

GUJARAT UNIVERSITY

AHMEDABAD, GUJARAT 380009

B.K School Of Management |2015-17 0

DECLARATION

I, Bhavesh G Patel do hereby declare that this project report entitled “Loan Against

property analysis MAS V/S competitor Companies” is a bonafied record of the

work done by me under the guidance of Prof. Dr. Nilam Panchal in partial

fulfillment for the award of degree of Masters of Business Administration of

Gujarat University.

I also declare that this thesis report has not been submitted by me fully or partially

for the award of any degree, diploma or title or recognition before.

Place: Ahmedabad Bhavesh Patel

Date: 28/07/2016

B.K School Of Management |2015-17 0

ACKNOWLEDGEMENT

First and foremost, I thank the almighty God for bestowing me with good health

and confidence to complete the project on time.

I would like to express my hearty gratitude to Dr.Pratik Kanchan, Director, School

of Management Studies for introducing me to the MAS finance services ltd.

I record my gratitude to Mr.Vineet Kumar Gupta Regional Manager MAS

finance services ltd for facilitating to carry out this research work in the

organization.

Place: Ahmedabad

Date: 28/07//2016 Bhavesh Patel

B.K School Of Management |2015-17 0

EXECUTIVE SUMMARY

There is growing competition between NBFC firms in post reform India. For

investor it is always difficult to decide which NBFC firm to choose. Research

was carried out to find which NBFC firm they choose For the LAP(Loan Against

Property Loan) This study suggests that people and are reluctant while taking a

loan from other NBFC due to lack of knowledge.

Through this report we were also able to understand, what are our Company’s

(MAS financial Services Ltd.) positive and strong points, on the basis of which we

come to know what can be the basis of pitching to a potential client

B.K School Of Management |2015-17 0

Index

Chapter Page No

1 Introduction

1.1 Introduction To study 2

1.2 Objective Of Study 4

1.3 Scope Of study 5

2 Industry Profile

2.1 Non-banking Financial company 7

2.2 Competitors Profile 9

3 Profile Of MAS Financial Services

3.1 Introduction About 14

4 4.1 Literature review

4.2 Limitation Of study 19

5 Process Overview

5.1 Loan Against Property (LAP) Process :

Overview

23

5.2 Detailed list of Documents Required 24

5.3 About MAS finance service Work Over View 27

5.4 Customers Over view 30

6 Research Methodology 32

35

7 Data Analysis

8 Findings and recommendation

8.1 Findings 50

8.2 Suggestions and recommendation 50

8.2 Suggestion given by the consumers at the time

of survey

52

8.3 Conclusion 53

9 Bibliography

10 Annexure

11 Other Attachments

B.K School Of Management |2015-17 1

Introduction

B.K School Of Management |2015-17 2

1.1 - INTRODUCTION TO STUDY

You may have a lot on your mind when it comes to sending your children for

education abroad or maybe finance your business or even finance your child's

wedding. The first thing that would come into the mind of most of us is, 'Where

would I get the money from?'

There are many ways you could arrange for money, and one of those ways is

taking a loan. You could take a personal loan for the amount required, or you could

take a loan against your property.

1.1.1What is a loan against property?

A loan against property (LAP) is exactly what the name implies -- a loan given or

disbursed against the mortgage of property. The loan is given as a certain

percentage of the property's market value, usually around 40 per cent to 60 per

cent.

Loan against property belongs to the secured loan category where the borrower

gives a guarantee by using his property as security.

What purposes can I take a loan against property for?

Loan against Property can be taken for following purposes:

Expanding your business

Getting your son/daughter married

Sending your son/daughter for higher studies abroad

Funding your dream vacation

Funding medical treatments

What kind of properties can I mortgage for a loan?

You can normally take a loan against your self-occupied or rented residential

property. This could be a house or even a piece of land.

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What are the eligibility criteria to get a loan against property?

This criteria will vary from one bank to another. However, from all the host of

factors, the common factors that all banks look at are:

Your income, savings, debt obligations

Cost/value of the property mortgaged

Your repayment track record for other loans, credit cards, etc.

What are the normal interest rates and tenure for repayment offered for a

loan against property?

Interest rates on loan against property range from 12 per cent to 15.75 per cent, and

the loan tenure can be up to 15 years.

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1.2 OBJECTIVE OF THE STUDY:

The following are the objective of the present study:

The main objective of doing this project is Analysis of LAP Industries in

Ahmedabad City.

To Understand MAS Finance services Ltd LAP Product and its

Competitors.

To analyze Indian Mortgage loan market and its growing trends

To analyze various methods of operating Mortgage Loan .To gain

knowledge about various LAP loan Product.

To Understand Different challenges face by Financial institution.

To understand Differences Between LAP (Loan against property, Mortgage

Loan) and Personal Loan.

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1.3 SCOPE OF STUDY

The study is limited to only MAS financial Services Limited.

To understand in batter way of market condition of LAP industries.

This study is mainly related to the individuals who are interested in taking

Mortgage loans from MAS finance to fulfill their dreams.

The study is mainly related to all the loans provided by MAS finance limited

only only.

B.K School Of Management |2015-17 6

Industry

Profile

B.K School Of Management |2015-17 7

Non Banking Financial Company

Non-bank financial companies (NBFCs) are financial institutions that

provide banking services without meeting the legal definition of a bank, i.e. one

that does not hold a banking license. These institutions typically are restricted from

taking deposits from the public depending on the jurisdiction. Nonetheless,

operations of these institutions are often still covered under a country's banking

regulations.

The specific banking products that can be offered by NBFCs depends on the

jurisdiction, and may include services such as loans and credit facilities, savings

products, investments and money transfer services. In some jurisdictions, such as

New Zealand, any company can engage in banking business, except they are not

allowed to use the word bank in their name. A company can only call itself a bank

if it is a registered as such with the nation's central bank.

Non-banking financial companies (NBFCs) are fast emerging as important

segment of indian financial system. It is a heterogeneous group of institutions (

other than commercial and co operative banks) performing financial intermediation

in a variety of ways, like accepting deposits, making a loans to the various loans

and advances, leasing hire purchase , etc. they raise fund from the public, directly

or indirectly, and lend them to ultimate spenders. They advance loans to the

various wholesale and retail traders, small-scale industries and self-employed

persons. Thus they have broadness and diversified the range of product and

services offered by a financial sector . Gradually, they are being recognized as

complementary to the banking sector due to their customer-oriented services:

simplified procedures: attractive rate of return on deposits : flexibility and

timeliness in meeting the credit needs of specified sectors etc.

The working and operations of NBFCs are regulated by the reserve bank of india

within the framework of the reserve bank of Act, 1934(Chapter 3B) and the

directions issued by it under act . as per RBI Act, a non-banking financial company

is defined as:-

I. A financial institution which is a company.

II. A non-banking institution which is a company and which has its principal

business the receiving of deposits, under any scheme of arrangement or in

any other manner.

B.K School Of Management |2015-17 8

III. Such other non-banking institutions or class of such institutions, as the bank

may, with the previous approval of the central government and by

notification in the official gazette, SPECIFIES.

Under this act, it is mandatory for a NBFC to get itself registered with the RBI as a

deposit taking company. This registration it to conduct its business as an NBFC.

For the registration authorizes it to conduct its business as an NBFC. For the

registration with the RBI, a company incorporated under the Companies Act, 1956

and desirous of commencing business of non banking financial intuition should

have a minimum net owned fund (NOF) of Rs 25 lakh (raised to Rp 200 Lakh ,

W.E.F April 21, 1999) . the term NOF means ,owned fund (paid-up) capital and

free reserves, minus accumulated losses, deferred revenue expenditure and other

intangible assets) less,

I. Investment in share of subsidiaries /companies in the same group/ all other

NBFCs; and

II. The book value of debentures/bonds/ outstanding loans and advances,

including hire-purchase and lease finance made to, and deposits with ,

subsidiaries/ companies in the same group, in excess of the 10% of the

owned funds.

The registration process involves submission of an application by the company

in the prescribed format along with the necessary document for RBI’s

consideration. If the bank is satisfied the condition enumerated in the RBI ACT,

1934 are fulfilled, it issue a ‘certificate of registration accept/ hold public

deposit. The NBFC’s accepting public deposits should comply with the Non-

banking Financial Companies Acceptance if Public Deposits (Reserve Bank)

direction, 1998, as issued by the bank . some if tge important regulations

relating to acceptance of deposits by NBFC’ are :-

The are allowed accept/renew public deposits for minimum period of 12

months and maximum period of 60 months.

They cannot be accept deposits repayable on demand.

They cannot offer interest rates higher than the ceiling rate prescribed by

RBI for time to time.

They cannot offer Gifts/incentives or any other additional benefit to the

depositors.

They should have minimum investment grade credit rating.

Their deposits are not insured.

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The repayment of deposit’s by NBFCs is not guaranteed by RBI.

The types of NBFCs registered with the RBI are:-

Equipment leasing company:- is any financial intuition whose

principal business is that of leasing equipments or financing of such

an activity.

Hire-purchase company:- is any financial intermediary whose

principal business relates to hire purchase transaction of financing of

such transactions.

Loan company:- means any financial institution whose principal

business is that of providing finance, whether by making loans or

advances or otherwise for any activity other than its own (excluding

any equipment leasing or hire –purchase fiancé activity)

Investment company:- is any financial intermediary whose principal

business is that of buying and selling of securities.

Now, these NBFCs have been reclassified into three categories:-

Asset Finance Company

Investment Company(IC)and

Loan Company (LC) . Under this classification, ‘AFC’ is defined as a

financial institution whose principal business is that of financing the

physical assets which support various productive/ economic activities

in country.

2.2 Competitors Profile

Sbi (State Bank),

State Bank of India (SBI) is an Indian multinational, public

sector banking and financial services company. It is

a government-owned corporation with its headquarters

in Mumbai, Maharashtra. As of 2014-15, it had assets of INR

20,480 billion (USD 310 billion) and more than 14,000

branches, including 191 foreign offices spread across 36

countries, making it the largest banking and financial services

B.K School Of Management |2015-17 10

company in India by assets. The company is ranked 232nd on the Fortune Global

500 list of the world's biggest corporations as of 2016.

State Bank of India is one of the Big Four banks of India, along with ICICI

Bank, Bank of Baroda and Punjab National Bank.

The bank traces its ancestry to British India, through the Imperial Bank of India, to

the founding, in 1806, of the Bank of Calcutta, making it the oldest commercial

bank in the Indian Subcontinent. Bank of Madras merged into the other two

"presidency banks" in British India, Bank of Calcutta and Bank of Bombay, to

form the Imperial Bank of India, which in turn became the State Bank of India in

1956. Government of India owned the Imperial Bank of India in 1955,

with Reserve Bank of India (India's Central Bank) taking a 60% stake, and

renamed it the State Bank of India. In 2008, the government took over the stake

held by the Reserve Bank of India.

State Bank of India is a banking behemoth and has 20% market share in deposits

and loans among Indian commercial banks.

DHFL:- DHFL was established by Late Shri

Rajesh Kumar Wadhawan (16th April, 1949-

30th September, 2000), a visionary Indian

businessman.

The Founder Chairman observed the sad truth that most Indians couldn’t get a

housing loan on fair terms. He believed that owning a home is a critical element to

the building of an identity for every Indian. He thus set out on a mission to manage

this social need. On April 11, 1984, DHFL was established to enable access to

affordable housing finance to the lower and middle income groups in semi-urban

and rural parts of India. DHFL is the second housing finance Company to be

established in the country, however, with a unique mission, which is today

benchmark as a model of financial inclusion in the Indian financial services sector.

While most experts lauded Shri Rajesh Kumar Wadhawan’s altruism, they posed

pragmatic apprehensions on the possibility of this Vision becoming a reality.

However, that did not influence the visionary’s mission. DHFL disbursed funds

from its own equity contribution and had a return of less than 8% at a time when

interest rates were about 18%. But, what DHFL ascertained was the difference

between those who see things as they are and the visionaries who see things as they

can be.

B.K School Of Management |2015-17 11

HDFC BANK

HDFC Bank Limited is an Indian banking and

financial services company headquartered

in Mumbai, Maharashtra. It has about 76,286 employees including 12,680 women

and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is the second

largest private bank in India as measured by assets. It is the largest bank in India by

market capitalization as of February 2016. It was ranked 58th among India’s most

trusted brands according to Brand Trust Report, 2015.

Total balance sheet size as of June 30, 2016 was Rs.755,100 crores as against

Rs.629,322 crores as of June 30, 2015. The Bank’s total income for the quarter

ended June 30, 2016 was Rs.19,322.6 crores, as against Rs.16,503.0 crores for the

quarter ended June 30, 2015. Net revenues (net interest income plus other income)

increased by 19.6% to Rs.10,588.1 crores for the quarter ended June 30, 2016 as

against Rs.8,850.7 crores in the corresponding quarter of the previous year.

INDIABULLS The Indiabulls Group is an

Indian conglomerat e headquartered in

Gurgaon, India. It was founded by Mr. Sameer

Gehlaut (Chairman) in 1999, and operates in

sectors spread across housing finance, real estate & wealth management. The three

main independently listed companies of the group are Indiabulls Housing Finance

Limited (IBHFL), Indiabulls Real Estate Limited (IBREL), and Indiabulls

Ventures Limited (IBVL).[2]

The Indiabulls Group has a net worth of Rs. 15,332 Cr. as of 30 June, 15 and is one

of the top dividend paying groups amongst the Indian listed promoter owned

group/companies.

Kotak Mahindra Bank is an Indian private sector banking headquartered

in Mumbai, Maharashtra, India. In February

2003, Reserve Bank of India (RBI) gave the licence to

Kotak Mahindra Finance Ltd., the group's flagship

company, to carry on banking business.

B.K School Of Management |2015-17 12

It offers a wide range of banking products and financial services for corporate and

retail customers through a variety of delivery channels and specialized subsidiaries

in the areas of personal finance, banking, life, and wealth management.

As of 30 September 2014, Kotak Mahindra Bank has a network of 641 branches

and over 1,159 ATMs spread across 363 locations in the country. The bank, which

has garnered positive reviews from its customers and clients before its merger with

ING Vysya, had around 29,000 employees. In 2014, it was the fourth largest

private bank in India by market capitalization.

ING Vysya Bank was a privately owned Indian

multinational bank based in Bangalore, with retail,

wholesale, and private banking platforms formed

from the 2002 purchase of an equity stake in Vysya

Bank by t he Dutch ING Group. This merger marks

the first between an Indian bank and a foreign bank. Prior to this transaction,

Vysya Bank had a seven-year-old strategic alliance with erstwhile Belgian

bank Banque Bruxelles Lambert, which was also acquired by ING Group in 1998.

As of March 2013, ING Vysya is the seventh largest private sector bank in India

with assets totaling ₹54,836 crore (US$8.1 billion) and operating a pan-India

network of over 1,000 outlets, including 527 branches, which service over two

million customers. ING Group, the highest-ranking institutional shareholder,

currently holds a 44% equity stake in ING Vysya Bank, followed by Aberdeen

Asset Management, private equity firm ChrysCapital, Morgan Stanley,

and Citigroup, respectively.

ING Vysya has been ranked the "Safest Banker" by the New Indian Express and

among "Top 5 Most Trusted Private Sector Banks" by the Economic Times.

On 20 November 2014, in an all stock amalgamation, ING Vysya Bank decided to

merge with Kotak Mahindra Bank, creating the fourth largest private sector bank in

India. On 1 April 2015, the Reserve Bank of India approved the merger. On 15th

May 2016 the whole merger process was over.

B.K School Of Management |2015-17 13

Profile of MAS

Financial

limited

B.K School Of Management |2015-17 14

3.1 INTRODUCTION

MAS Finance Services existence since last 22

years. Turned corporate in the year 1995.

A focused retail finance company spread all

over Gujarat, Maharashtra, Rajasthan, Madhya

Pradesh (Indore), Tamilnadu (Chennai) &

Karnataka (Bangalore) with its 71 branches and more than 2500 Locations.

Created the expertise in the distribution of credit and a base of more than

4,00,000 customers.

Completed close to 8 cycles per customers tenor assuming the tenor to be on

average 30 months.

MAS is specialized retail financing organization engaged in financial services

since 1988, registered with Reserve Bank of India as an NBFC.

MAS Financial services offer loans and Financial Services for Home Loans,

Two Wheeler Loans, MSME Loans, Agri Loans, SME Loans and

Commercial Vehicle Loans to satisfy their varied needs.

The focus remains on the vast lower income and middle income groups of the

society, spread across urban, semi urban and rural areas, and including formal and

informal sector.

We are very proud to be associated with this class of customers since approx 2

decades.

MAS Financial services business model, vision, vast experience and distribution

network places us uniquely in the industry

MAS are excited at the vast opportunity this sector offers.

MAS aims to have a very significant market share in financial services distribution.

The Credit distribution to these class in particular assumes lot of importance as the

credit is to be given to those classes which have to be understood and assessed

from various perspectives of creditability in absence of proper and systematic

credit documents, but a commandable credit worthiness.

B.K School Of Management |2015-17 15

We are determined to accomplish the mission with dedicated team efforts and a

vast, ever increasing DISTRIBUTION NETWORK.

Seeing is believing. To get a feel of one of the finest range of financial services

Products and Services

MAS Financial services Limited Offer the widest range of products.

MSME Finance :MAS Financial services Limited

Cater to the micro entrepreneurs to augment their

business activities. The average ticket size is of Rs.

30K with tenure ranging from 18-24 Months. Loans

are extended based on income assessment and cash

flows, assessment of current leverage through

current banking and CIBIL. Repayment Mode is

PDC backed & Monthly. The interest rate for the product ranges between 21% to

30%

SME Finance: Small and Medium Enterprises

(SME) plays a pivotal role in the development of

Nation by promoting livelihood and creating Jobs.

We take pride in offering the best financial

services to them, thus being instrumental in their

development. The interest rate for the product

ranges between 16% - 20%.

TWO Wheeler Finance: MAS Financial services

limited Cater to farmers and service class. The

average ticket size is of Rs. 30K with Tenure

ranging to 24 Months. These loans are for

purchasing two wheelers in rural, semi urban and

B.K School Of Management |2015-17 16

urban areas. In case of farmers loans are extended based on income assessment

from farming activities and animal husbandry and in case of services class loans

are extended on income assessment and cash flows, assessment of current leverage

through current banking and CIBIL. Repayment Mode is PDC backed & Monthly.

The interest rate for the product ranges between 18% to 23%.

Commercial Vehicle Finance: MAS finance

services limited commercial vehichle financing

aims at promoting the individuals from users to

owners. We are proud to full fill his cherished

dream of becoming an owner. The interest rate for

the product ranges between 18% - 20

Insurance: Mas Financial services also take the

responsibility of educating our clients on various

types of risk. We strive to offer the best product in

order to insure them against various risk

Present Investors

Nederlandse Financierings Maatschappij voor Ontwikkelingslanden

N.V.(FMO)

FMO, an entrepreneurial development bank of the Netherlands, has invested

INR 434.71 Million in equity through Cumulative Compulsorily Convertible

Preference Shares.

FMO`s investment portfolio is EUR 3,4 billion, making it one of the largest

bilateral development banks worldwide. FMO has an AAA rating from

Standard and Poor`s and has recently obtained a banking license from the

Dutch Central Bank (DNB).

B.K School Of Management |2015-17 17

Through such investments FMO is stepping up to achieve their mission to

stimulate sustainable private sector development and optimize economic growth

through its investment activities in emerging markets.

FMO’s investment decisions are based on the fundamental concept that sustainable

economic growth is stimulated by the development of a healthy private sector,

which in turn contributes to combating poverty and to improving living standards

in developing countries.

Deutsche Investitions-Und Entwicklungsgesellschaft Mbh (DEG)

DEG invested EUR 10 Mn. in the MAS in the form of Compulsorily Convertible

Debentures.

DEG, a subsidiary of KFW, is one of the largest European development finance

institutions for long-term project and company financing. For 50 years, DEG has

been financing and structuring the investments of companies in developing and

transition countries in order to contribute to sustainable progress.

Its portfolio in India stands at over EUR 500 Mn. across 50 companies.

Lok Capital II LLC

The Lok Capital initiative was launched at the end of 2000 with the support of a

grant from the Rockefeller Foundation. Lok Capital means People’s Capital. Lok

Capital defines itself as a hands-on financial investor with social performance

goals and standards, dedicated to promoting financial and social inclusion through

all its activities.

Lok Capital manages two BoP funds with over $85mn under management. The

funds are the central entity of the Lok group structure. Lok Foundation, the

charitable trust at the heart of Lok Capital, was set up in 2003 to promote financial

and social inclusion, principally in India by means of targeted grants, technical

support, research and advocacy.

Past Investors

Bellwether

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Bellwether Micro Finance Fund has invested Rs. 65 Million in the company in the

form of Redeemable Non-Convertible Cumulative Preference Shares.

The Bellwether Microfinance Fund is dedicated to investing in the capital of

Microfinance institutions (MFIs) in India. The Fund, incorporated in India, has its

operating base in Hyderabad, in the southern state of Andhra Pradesh. The Fund

invests in high potential startups as well as established medium-sized NGO-MFIs

intending to transform in to legally appropriate entities. The Fund looks to invest in

MFIs that focus on efficiency as well as commercial viability.

ICICI Venture

ICICI Venture Fund Management Company Limited, the private equity arm of

ICICI Bank Ltd., India’s second biggest lender, had invested INR 400 Million

through a mezzanine fund, India Advantage Fund - VII. The investment was in the

form of redeemable preference shares. The investment made by ICICI Venture has

been successfully redeemed by the company in the year 2012.

Vision

To be one of the most efficient distributer if financial services and create value on

a very large scale.

Mission

to constantly to attain excellence and create a very wide distribution netwrk and to

be catalyst in providing the most efficient financial services which we term as

financial inclusion

B.K School Of Management |2015-17 19

Literature review on

the study topic

research gap

B.K School Of Management |2015-17 20

The financial sector is one of the booming and increasing sectors in India. The

NBFC are one of the most powerful, efficient and effective channel through which

the company sales its various types of financial products and company takes

operational work also. It is really difficult to convince customers (Agents) and sell

a single product and accomplish operational work. Whereas in my entire project

work I found my interest in working in a team, dealing with customers(Agents)

and finally convincing them to buy Our Financial product.

An increasing trend has been observed in demand for the services of Non-Banking

Financial Institutions nowadays.

This project is aimed to find out factors affecting Demand of Loan against

Property. There has also been emphasis to find out the plus points of MAS

financial service’s or the differentiating factors that give Mas Finance services Ltd

a competitive edge. In short:

To find out the factors affecting LAP (loan Against Property) in a NBFC.

To find out various competitive advantages and Disadvantage that makes of

the largest Financial Institution

.

B.K School Of Management |2015-17 21

LIMITATIONS OF STUDY

The population size is limited to Ahmedabad area.

There may be My bias or judgmental bias.

There may be redundancy of data or area surveyed.

Due to time and resource constraints some important segment of population

might have been missed out.

All the findings and conclusions obtained are based on the survey done in the

working area within the time limit. I tried to select the sample representative of the

whole group during my summer training. I have collected data from people linked

with different professional at Ahmedabad

B.K School Of Management |2015-17 22

Loan Against

Property (LAP):

Process: Overview

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5.1 LOAN AGAINST PROPERTY (LAP): PROCESS: OVERVIEW

There are several steps in the process of getting a loan against property.

A loan against property (LAP) gets you capital based on the value of your

property. It is available for both salaried and self-employed persons and against

commercial as well as residential property. All this and, you don't have to sell your

property to raise the capital. It is all yours to keep if you repay the loan taken.

Steps involved in the application process are:

Application

Processing

Documentation

Sanctioning of the loan

Valuation and legal check

Disbursement

Just as in case of every loan, the loan application begins the whole process.

You will need to fill in a loan application with details, personal and

professional, loan requirement, details of the property intended for mortgage

etc. Make sure the details are filled in accurately.

Next comes the loan processing stage, the stage at which the loan process

gains actual momentum. This could start with a personal discussion followed

by the bank's field investigation.

Along with the application form and the credit documents, you may have to

pay a processing fee to the bank, which could be 1-2 per cent of the intended

loan.

An upfront fee could be collected to maintain your loan account records,

sending income tax certificates every year, maintaining post-dated cheques,

etc.

When you go for a personal discussion, carry all the original documents

pertaining to the information provided on the application form. Do not submit

any forged documents or lie about the financial details requested.

The bank's field investigation will follow; the bank might outsource this task

to third-party verification agents.

B.K School Of Management |2015-17 24

5.2 DETAILED LIST OF DOCUMENTS REQUIRED

CIBIL: CIBIL stands for Credit Information Bureau (India) Limited. It is the first

credit information company in India, established in August 2000. The company

collects and maintains credit records of individuals as well as commercial entities.

This includes borrowing and payments related to loans and credit cards.

CIBIL obtains this information with the help of its associate partners which include

members of banks and credit institutions. Information is provided to CIBIL on a

monthly basis based on which CIBIL prepares a Credit Information Report (CIR)

and credit score of an individual. This report is then provided to credit institutions,

when requested, to help them evaluate and approve loan/credit applications.

CIBIL plays a major role in India’s financial system by helping banking

institutions better manage their business and be helping customers secure credit on

fair terms. CIBIL is also referred to as the Credit Bureau. It is licensed by the RBI

and governed by the Credit Information Companies Regulation Act, 2005.

Proof of income: Copies of last three years income tax returns (along with copies

of Computation of Income/Annual accounts, if any), Form 16/Form 16A, last three

months salary slips, copies of the last 6 months statements of all the active bank

accounts that reflect your salary/business income details etc.

Age proof: Copy of the school leaving certificate/driver's licence/passport/ration

card/PAN card/voter identity card etc.

Address proof: Utilities bills, such as phone and electricity bills, need to be

provided to prove that you are actually staying at your current address.

Identification proof: Documents with your photograph.

Sometimes, one document, if it contains a photograph, the current residential

address, and the correct age can be the proof for all three mentioned above.

Employment details: If your company is not well-known, a short summary about

the nature of the company, its business lines, its main customers, its competitors,

number of offices, number of employees, turnover, profit, etc. may be needed.

B.K School Of Management |2015-17 25

Usually, the company profile that is available on the standard website of the

company is enough.

Property papers: The bank may require title deeds and other documents relevant

to the property. This will be important as the loan can be taken only against free-

hold property. Also, it can be only about 40-60 per cent of the cost of property. It is

important for the bank to establish the value of the property and its legal status

before the offer can be considered.

Meanwhile, bank verifies your personal and employment details. The bank also

does a valuation of the property.

loan sanction is the next process in the series. At this stage, the bank has checked

your financial credentials based on criteria such as your income, age,

qualifications, experience, employer, nature of business (if self employed), etc.

They work out the maximum loan eligibility, and an indicative loan amount that

the bank is willing to offer.

Offer letter/Sanction letter: The bank now sends you an offer letter with details

relevant to the loan. If these terms and conditions are acceptable to you, you can

sign an acceptance copy.

Valuation and legal check on property and papers is the next stage where the

focus of the bank will shift to the property that you intend to mortgage. Make sure

the property papers and the relevant NOCs are in place. The bank's lawyer will

check the property papers for their legality. The bank may also send an expert to

visit the property. This expert could be a bank employee or an associate with a

realty firm.

Once the bank has ascertained all that it needs to be assured of you as a client, the

property as a security, and your repayment capacity, it will disburse the loan. The

bank does not enquire about the purpose for which you use the loan. Though, it

stipulates that the loan should not be utilized in speculative activities.

Fees & Charges For Lap

Fees and charges applicable for LAP

B.K School Of Management |2015-17 26

Very often we fail to read the fine print in a loan document. If you intend to make

comparisons with other types of loans, it is necessary to take into account these

charges to arrive at the real cost. For example, the processing fee and prepayment

fee is lesser in the case of a loan against propertythan that of personal loan.

Here is a list of all charges that are levied either before the loan is disbursed or

through the course of the loan or when you terminate the loan:

Description of Charges:

Processing fee

Prepayment fee

Charges for changing from fixed to floating rate of interest

Charges for changing from floating to fixed rate of interest

Processing fee:

Processing fee is the amount charged by banks to cover the cost of processing your

loan application. Processing fees vary from one bank to another. Some banks ask

you to pay the processing fee upfront even before the loan is sanctioned. This is

often charged when you submit your loan application along with the supporting

documents.

The processing fee is generally a percentage of the loan amount and is between

0.25-2 per cent for loan against property.

Prepayment fee:

The pre-payment fee is the penalty paid by the borrower for foreclosing the loan

before the actual tenure. Pre-payment fees are levied as a percentage of the

outstanding principal of the loan amount. The prepayment fee varies from bank to

bank. It varies from 1-4 per cent of the outstanding loan amount, if the repayment

amount exceeds 25 per cent of the outstanding loan amount.

There are a few banks that allow you prepay the loan if you have funds without

charging you any penalty on it. Ideally one should opt for a lender that does not

charge a prepayment penalty.

Charges for changing from fixed to floating rate of interest:

This is charge wherein you are charged for switching your interest rate from fixed

to floating rate of interest. It is levied as a percentage of the outstanding principal

of the loan amount. The charge varies from 0.25-2 per cent.

Charges for changing from floating to fixed rate of interest:

This is charge wherein you are charged for switching your interest rate from

floating to fixed rate of interest. It is levied as a percentage of the outstanding

principal of the loan amount. The charge varies from 1-2 per cent.

B.K School Of Management |2015-17 27

There are banks that also have others charges such as charges for late payment of

EMI, duplicate no due certificate / NOC, cheque swapping charges, bounce cheque

charges, statement charges (per statement), duplicate repayment schedule charges

5.3 ABOUT MAS FINANCE SERVICE WORK OVER VIEW

MAS finance services Ltd. Provide Three type Loan to the customer’s But

They mainly focus on on Business Loan.

MAS finance divided three categories LAP Loan. (CAT-A)(CAT-B)(CAT-

C)

Two type of Loan they provide Formal and Informal.

MAS Finance Services Ltd. Always try to find Customer who take Long

term loan.

B.K School Of Management |2015-17 28

Particular Formal

CAT A CAT B CAT C

Business Class

Business Class

Purpose Loan For Business Purpose Only For Business Purpose Only For Business Purpose Only

Vintage Of Business ≥ 5 years ≥ 3 years ≥ 3 years

Ownership Residence+ business place Residence+ business place Atleast Ownership

Bank account Current account Current account Current account

T/O reflected in current Account 75% of actual T/O 75% of actual T/O 60% of actual T/O

Financial ->ITR and Books of

account

Audited Audited CA certified

Income reflected in financial /(ITRs) Min. income should be 2.50 Lakh

Min. income should be 2.00 Lakh

Min. income should be 1.00Lakh

Maximum Loan offered (metro) 200 175 150

Maximum Loan Offered(urban) 175 150 125

Maximum Loan Offered(semi-urban) 150 100 75

Maximum Loan Offered(semi-urban

1)

150 100 75

Maximum Loan Offered(semi-urban

2 )

150 100 75

Co-Applicant

(All the property owner to be taken

as Co- applicant)

NA NA One women family member

Guarantor NA NA One Guarantor: 1.CIBIL & internal DE dupe to be

positive

2.SV Positive 3.Referance Positive

4.Collection positive

Type Of Property Residence only . Commercial property can be

consider with proper approval

Residential only. Commercial property can be

consider with the proper

approval.

Residential only Commercial property can be

consider with the proper approval.

ROI 16%-17% 17%-18% 18%-19%

PF 0.75%-1 0.75%-1 0.75%-1

Stamping & Other Charges To be born By customer’s To be born By customer’s To be born By customer’s

LTV <60% <60% <55%

Property Registered Mortgage Registered Mortgage Registered Mortgage

Legal and Technical Clearance By approval Of vendors Of MAS

By approval Of vendors Of MAS

By approval Of vendors Of MAS

Sight visit of Office & Residency To Be positive To Be positive To Be positive

Collection comfort Of Office &

Residency

To Be positive To Be positive To Be positive

CIBIL &Internal De-dupe To Be positive To Be positive To Be positive

IIR <55% <45% <40%

FOIR <55% <50% <45%

Tenure up to 84 Month Up to 84 Month up to 84 Month

Loan Eligibility according to Banking, ITR & Financial -> 30 % Of turnover

->4 times Of debt to Equity

->IIR<55% ->FOIR<60%

Banking, ITR & Financial ->25 % Of turnover

->4 times Of debt to Equity

->IIR<50% ->FOIR<55%

Banking, ITR & Financial -> 30 % Of turnover

->3.50 times Of debt to Equity

->IIR<45% ->FOIR<50%

Cash Flow

(format Attached)

Taking Minimum exposure of

above, cumulative cash flow

should be positive

Taking minimum ezposer of

above ,cumulative cash flow

should be positive

Taking minimum ezposer of above

,cumulative cash flow should be

positive

B.K School Of Management |2015-17 29

Particular informal

CAT A CAT B CAT C

Business Class

Business Class

Purpose Loan For Business Purpose Only For Business Purpose Only For Business Purpose Only

Vintage Of Business ≥ 5 years ≥ 3 years ≥ 3 years

Ownership Residence+ business place Residence+ business place Atleast Ownership

Bank account Current account Current account Current account

T/O reflected in current Account 50% of actual T/O 40% of actual T/O 10%-30%

Financial ->ITR and Books of

account

CA Certified IF above rs 25

Lakh

Unaudited Unaudited Not Compulsory

Income reflected in financial /(ITRs) NA NA NA

Maximum Loan offered (metro) 75 50 30

Maximum Loan Offered(urban) 50 40 25

Maximum Loan Offered(semi-urban) 50 40 25

Maximum Loan Offered(semi-urban

1)

50 40 25

Maximum Loan Offered(semi-urban

2 )

50 40 25

Co-Applicant

(All the property owner to be taken

as Co- applicant)

One women family member One women family member One women family member

Guarantor One Guarantor:

1.CIBIL & internal DE dupe to be positive

2.SV Positive

3.Referance Positive 4.Collection positive

One Guarantor:

1.CIBIL & internal DE dupe to be positive

2.SV Positive

3.Referance Positive 4.Collection positive

One Guarantor:

1.CIBIL & internal DE dupe to be positive

2.SV Positive

3.Referance Positive 4.Collection positive

5.Minimum income of 1.25 x

Installment As per SV

Type Of Property Residence only .

Commercial property can be

consider with proper approval

Residential only.

Commercial property can be

consider with the proper approval.

Residential only

Commercial property can be

consider with the proper approval.

ROI 18.50%-19.50% 19.50%-20.50% 20.50%-22%

PF 1%-1.5% 1%-1.50% 1-1.50%

Stamping & Other Charges To be born By customer’s To be born By customer’s To be born By customer’s

LTV <50% <50% <50%

Property Registered Mortgage Registered Mortgage Registered Mortgage

Legal and Technical Clearance By approval Of vendors Of

MAS

By approval Of vendors Of

MAS

By approval Of vendors Of MAS

Sight visit of Office & Residency To Be positive To Be positive To Be positive

Collection comfort Of Office &

Residency

To Be positive To Be positive To Be positive

CIBIL &Internal De-dupe To Be positive To Be positive To Be positive

IIR <40% <35% <30%

FOIR <45% <40% <35%

Tenure up to 84 Month Up to 84 Month up to 84 Month

Loan Eligibility according to Income assessment (sales &

Purchase bills/ TDS Certificate

Required) -> 20 % Of turnover

->3 times Of debt to Equity

->IIR 40% ->FOIR<45%

Income assessment (sales &

Purchase bills/ TDS

Certificate Required) -> 20 % Of turnover

->3 times Of debt to Equity

->IIR <30% ->FOIR<40%

Income assessment (sales &

Purchase bills/ TDS Certificate

Required) -> 15 % Of turnover

->3.00 times Of debt to Equity

->IIR 30% ->FOIR<45%

Cash Flow

(format Attached)

Taking Minimum exposure of

above, cumulative cash flow

should be positive

Taking minimum ezposer of

above ,cumulative cash flow

should be positive

Taking minimum ezposer of above

,cumulative cash flow should be

positive

B.K School Of Management |2015-17 30

5.4 MAS FINANCE LIMITED SERVICES APPROCHES TO

COUSTOMERS

1. Direct Sales Associated

2. Referral Appointments

Sales Associate job description

Sales Associates are responsible for marketing products in a very direct way. They

interact with clients or customers in order to persuade them to purchase specific

products or services of a company. They are required to work in irregular shifts,

including nights and weekends. These workers frequently need to complete

financial transactions and use cash registers. They may work at different industries

including pharmaceuticals, automobile, retail, aviation, among other areas.

Sales Associates usually perform many of the following tasks:

Filing sales reports.

Developing sales plans.

Participating in sales events.

Giving product demonstrations.

Maintaining contact with clients.

Skills

• Having good communication skills.

• Being proactive.

• Having time management skills.

• Being able to develop good relationships with clients.

• Having IT skills.

• Being able to deliver customized sales proposals and presentations.

• Having knowledge to operate all necessary equipment.

• Being able to travel a few days in a month.

• Having good sales skills.

• Being able to understand client´s needs.

B.K School Of Management |2015-17 31

2. Referral Appointments

In the referral Appointment MAS Finance consult and tie-up with the Agents.

(CA, CS, Manager, financial consultants) they refer their client for borrow loan

from MAS financial services.

In the referral . the agent make all the require documents and directly send to the

MAS financial services Ltd. And after the passing the loan agents earn Incentive.

so the referral appointments is very useful to run LAP business.

Agent create a network for MAS financial services Ltd.

they are situated in different Ahmedabad Locations. and they are very important

for the Business.

B.K School Of Management |2015-17 32

6.Research

methodology

B.K School Of Management |2015-17 33

6. Research methodology

Research methodology is a methodology for collecting all sorts of information &

data pertaining to the subject in question. The objective is to examine all the issues

involved & conduct situational analysis. The methodology includes the overall

research design, sampling procedure & fieldwork done & finally the analysis

procedure. The methodology used in the study consistent of sample survey using

both primary & secondary data. The primary data has been collected with the help

of questionnaire as well as personal observation book, and magazine; journals

website have been referred for secondary data. The questionnaire has been drafted

& presented by the researcher himself.

Sample Size:

Sample of 2000 people was taken into study, and their data was collected

Sampling Technique:

To study the Project, a Simple Random Sampling technique is used.

Data Collection:

Collection of data is done by

Secondary Data & through

Questionnaire

i.e., Primary data was collected through Questionnaire.

Data Analysis:

After data collection, I’m able to analyze customer’s views, ideas and opinions

related to MAS Finance And Its competitors

B.K School Of Management |2015-17 34

Data Interpretation:

Interpretation of data is done by using statistical tools like Pie diagrams, Bar

graphs, and also using quantitative techniques (by using these techniques) accurate

information is obtained.

Classification & tabulation of data:

The data thus collected were classified according to the categories, counting sheets

& the summary tables were prepared. The resultant tables were one dimensional,

two dimensional.

Statistical tools used for analysis:

Out of the total respondents, the respondents who responded logically were taken

into account while going into statistical details & analysis of data. The tools that

have been used for analyzing data & inference drawing are mainly statistical tools

like percentage, ranking, averages, etc.

As per questionnaire and market surveys I have find out different responses from

different people. According to their responses I analyze the findings and draw

certain remarks.

B.K School Of Management |2015-17 35

7. DATA

INTERPRETATION

B.K School Of Management |2015-17 36

Q .1 Do You Know about Mas Finance Services Limited?

Response Number Percentage

Yes 82 82%

No 12 12%

Hear 100 sample taken from Market. Who regularly deal with client. In this

survey out of 100 respondent 82 Give positive response that a good sign for

company Profile.

Q .1 Do You Know about Mas Finance Services Limited?

Yes

No

B.K School Of Management |2015-17 37

Q.2 Are you aware about advance product of MAS finance services Ltd.?

Response Number Percentage

Yes 70 70%

No 15 15%

Don’t have proper idea 15 15%

From the above data and pie chart we can interpret that respondent are majorly

aware about advance product of MAS finance service with 70% and 15% are not

aware about it, and rest 15% don’t have Proper Idea.

Aware

Yes

No

Don’t have Proper Idea

B.K School Of Management |2015-17 38

Q.3 Are you aware about LAP (loan Against Property) Policy of Mas

Finance?

Response Number Percentage

Yes 40 40%

No 60 60%

From the above data and pie chart we can interpret that respondent are do not

aware with MAS finance Services LAP policy.

Column1

Yes

No

B.K School Of Management |2015-17 39

Q.4 Do you have client who require Immediate Long term / Short Tern ?

Response Number Percentage

Yes 55 55%

No 45 45%

From the above data and pie chart we can interpret that respondent are majorly

aware about advance product of MAS finance service. But Half Of the CA CS or

management Firm not take Interest in LAP referral Scheme.

Sales

Yes

No

B.K School Of Management |2015-17 40

Q.5 If yes, than which purpose they require loan ?

Response Number Percentage

Business Loan 60 30%

Home Loan 20 50%

Personal Loan 20 20%

From the above data and pie chart we can interpret that Agents having client who

require Business loan. So there is good market on providing a Business Loan.

Loan Require

Business Loan

Home Loan

Personal Loan

B.K School Of Management |2015-17 41

Q.6 How Much your client able to pay interest for Loan ?

Response Number Percentage

<10-14% 45 45%

<15-18% 30 30%

<18-20% 15 15%

<22-25% 10 10%

From the above data and pie chart we can interpret that Agents having client who

require Business loan. But there is a big reason to worry that Less no of agent who

having the client that can able to pay 18% to 25% interest rate.

0

5

10

15

20

25

30

35

40

45

50

< 10 -14% <15 -18% <18 -20% <22-25%

Intrest Rate

Intrest Rate

B.K School Of Management |2015-17 42

Q.7 Are You Associated with any financial institution for LAP Referral

scheme?

Response Number Percentage

Yes 40 40%

No 30 30%

No But want to associate 30 30%

From the above data and pie chart we can interpret that Agents having client who

require Business loan. And other Loan . there is 40% Agent who already associate

with other Financial service but there may be 30% new agents who want to

associate with MAS financial services.

Associate

Yes

No

B.K School Of Management |2015-17 43

Q.8 If yes than which financial service provider ?

Response Number Percentage

SBI 13 13%

DHFL 4 4%

HDFC 9 9%

IndiaBulls 28 28%

Kotak Mahindra 12 12%

ING Vyasya 14 145

MAS Finance 18 18%

Other 2 2%

Above Plotter chart show that maximum Market cover By Indiabulls in

Ahmedabad city, who have a large number of agent network.

0

5

10

15

20

25

30

Market Cover

Market Cover

B.K School Of Management |2015-17 44

Q.9 If No, can you justify the reason ?

Particular Number Percentage

Lack Of Trust 4 4%

Past Experience 2 2%

Less Incentives For Agents 20 20% Time Consuming Process 10 10% High Rate Of Interest 42 42% Not Convince Property

valuation Method 4 4

From the above data and pie chart we can interpret that The reason behind the

Agents inconvenient that the High Rate of interest. That we comprise in Secondary

data.

Resone Behind Rejection Of Refral Piority For MAS

Lack Of Trust

Past Experience

Less Incentives For Agent

Time Consuming Loan Process

High rate Of intrest

Not Convince Propertyvaluation method

B.K School Of Management |2015-17 45

Secondary Data :-

Loan Against Property Interest Rates and Lowest EMI per Lakh Comparison of Banks in

India

Bank Loan Against Property Interest Rates* Max Tenure Lowest EMI per Rs.1

lakh for Max Tenure

SBI

Upto Rs. 10,000,000 - 10.75%,

Above Rs. 10,000,000 - 11.25% -

11.75% Floating

10 Years Rs. 1363

HDFC

Upto Rs. 10,000,000 - 10.6% - 12.35%,

Above Rs. 10,000,000 - 10.6% -

12.35% Floating

15 Years Rs. 1112

ICICI Bank

Upto Rs. 5,000,000 - 11.5% - 13.75%,

Above Rs. 5,000,000 - 11.5% -

13.75% Floating

10 Years Rs. 1406

Axis Bank

Upto Rs. 4,000,000 - 11.6% - 12.6%,

Above Rs. 4,000,000 - 11.6% -

12.6% Floating

15 Years Rs. 1175

PNB Housing

Finance

Upto Rs. 7,500,000 - 11.25% - 11.75%,

Above Rs. 7,500,000 - 11.25% -

11.75% Floating

15 Years Rs. 1152

Citibank

Upto Rs. 50,000,000 - 10.25% -

11.5% Floating 15 Years Rs. 1090

Standard

Chartered Bank

Upto Rs. 7,500,000 - 10.75%,

Above Rs. 7,500,000 - 10.75% Floating 15 Years Rs. 1121

DBS Bank

Upto Rs. 10,000,000 - 10.2% - 12.2%,

Above Rs. 10,000,000 - 10.2% - 12.2%,

Above Rs. 30,000,000 - 10.2% -

10 Years Rs. 1333

B.K School Of Management |2015-17 46

12.2% Floating

IndusInd Bank

Upto Rs. 20,000,000 - 10.9% - 13.5%,

Above Rs. 20,000,000 - 10.9% -

13.5% Floating

15 Years Rs. 1130

ING Vysya Bank Upto Rs. 7,500,000 - 0% Floating 10 Years

Karur Vysya Bank

Upto Rs. 7,500,000 - 12.9%,

Above Rs. 7,500,000 - 12.9% Floating 8 Years Rs. 1675

Kotak Bank

Upto Rs. 7,500,000 - 12.75% - 16%,

Above Rs. 7,500,000 - 12.75% -

16% Floating

12 Years Rs. 1359

Ratnakar Bank

Upto Rs. 7,500,000 - 13.1% - 13.35%,

Above Rs. 7,500,000 - 13.1% -

13.35% Floating

15 Years Rs. 1272

HSBC Bank

Upto Rs. 5,000,000 - 10.6%,

Above Rs. 5,000,000 - 10.6% Floating 15 Years Rs. 1112

DHFL

Upto Rs. 3,500,000 - 13.75%,

Above Rs. 3,500,000 - 13.75% Floating 15 Years Rs. 1315

Edelweiss

Upto Rs. 7,500,000 - 12% - 12.75%,

Above Rs. 7,500,000 - 12% -

12.75% Floating

15 Years Rs. 1200

Corporation Bank

Upto Rs. 6,000,000 - 12% - 14%,

Above Rs. 6,000,000 - 12% - 14% Floating 10 Years Rs. 1435

IDBI Bank

Upto Rs. 5,000,000 - 11.1% - 11.6%,

Above Rs. 5,000,000 - 11.1% - 15 Years Rs. 1143

B.K School Of Management |2015-17 47

11.6% Floating

Indian Bank

Upto Rs. 7,500,000 - 13.9%,

Above Rs. 7,500,000 - 13.9% Floating 7 Years Rs. 1868

Indian Overseas

Bank

Upto Rs. 7,500,000 - 12.2%,

Above Rs. 7,500,000 - 12.2% Floating 5 Years Rs. 2235

OBC

Upto Rs. 75,000,000 - 11.8%,

Above Rs. 75,000,000 - 11.8% Floating 7 Years Rs. 1755

PNB

Upto Rs. 7,500,000 - 11.15% - 15.4%,

Above Rs. 7,500,000 - 11.15% -

15.4% Floating

7 Years Rs. 1720

SBBJ

Upto Rs. 7,500,000 - 12.05%,

Above Rs. 7,500,000 - 12.05% Floating 10 Years Rs. 1438

Syndicate Bank

Upto Rs. 7,500,000 - 12.35%,

Above Rs. 7,500,000 - 12.35% Floating 10 Years Rs. 1455

HDFC Bank

Upto Rs. 7,500,000 - 11.3% - 12.8%,

Above Rs. 7,500,000 - 11.3% -

12.8% Floating

9 Years Rs. 1479

City Union Bank

Upto Rs. 200,000 - 14.75%,

Above Rs. 200,000 - 16.25% Floating 5 Years Rs. 2366

Development

Credit Bank

Upto Rs. 75,000,000 - 13.29%,

Above Rs. 75,000,000 - 13.29% Floating 15 Years Rs. 1284

Dhan Laxmi Bank

Upto Rs. 7,500,000 - 12.18% - 14.65%,

Above Rs. 7,500,000 - 12.18% -

14.65% Floating

15 Years Rs. 1212

B.K School Of Management |2015-17 48

Karnataka Bank

Upto Rs. 7,500,000 - 13.2%,

Above Rs. 7,500,000 - 13.2% Floating 15 Years Rs. 1278

South Indian

Bank

Upto Rs. 7,500,000 - 13.65%,

Above Rs. 7,500,000 - 13.65% Floating 7 Years Rs. 1855

Tamilnad

Mercantile Bank

Upto Rs. 7,500,000 - 16.15%,

Above Rs. 7,500,000 - 16.15% Floating 5 Years Rs. 2440

Federal Bank

Upto Rs. 7,500,000 - 12.22% - 15.47%,

Above Rs. 7,500,000 - 12.22% -

15.47% Floating

10 Years Rs. 1447

Jammu And

Kashmir Bank

Upto Rs. 200,000 - 13.25%,

Above Rs. 200,000 - 13.75%,

Above Rs. 2,000,000 - 14.25% Floating

7 Years Rs. 1833

Lakshmi Vilas

Bank

Upto Rs. 5,000,000 - 12.55%,

Above Rs. 5,000,000 - 12.55% Floating 20 Years Rs. 1140

Nainital Bank

Upto Rs. 5,000,000 - 14.75%,

Above Rs. 5,000,000 - 14.75% Floating 10 Years Rs. 1598

Allahabad Bank

Upto Rs. 7,500,000 - 15.1%,

Above Rs. 7,500,000 - 15.1% Floating 9 Years Rs. 1698

Andhra Bank

Upto Rs. 7,500,000 - 12.5% - 13%,

Above Rs. 7,500,000 - 12.5% -

13% Floating

5 Years Rs. 2250

Bank of India

Upto Rs. 7,500,000 - 11.2% - 11.7%,

Above Rs. 7,500,000 - 11.2% -

11.7% Floating

12 Years Rs. 1265

Canara Bank

Upto Rs. 7,500,000 - 12.4%,

Above Rs. 7,500,000 - 12.4% Floating 10 Years Rs. 1458

B.K School Of Management |2015-17 49

Central Bank of

India

Upto Rs. 7,500,000 - 12.2%,

Above Rs. 7,500,000 - 12.2% Floating 10 Years Rs. 1446

Dena Bank

Upto Rs. 7,500,000 - 11.3%,

Above Rs. 7,500,000 - 11.3% Floating 7 Years Rs. 1728

Punjab and Sind

Bank

Upto Rs. 7,500,000 - 11.9%,

Above Rs. 7,500,000 - 11.9% Floating 7 Years Rs. 1760

State Bank of

Hyderabad

Upto Rs. 7,500,000 - 13% - 13.25%,

Above Rs. 7,500,000 - 13% -

13.25% Floating

10 Years Rs. 1493

State Bank of

Mysore

Upto Rs. 7,500,000 - 12.6%,

Above Rs. 7,500,000 - 12.6% Floating 7 Years Rs. 1798

State Bank of

Patiala

Upto Rs. 7,500,000 - 14.5%,

Above Rs. 7,500,000 - 14.5% Floating 5 Years Rs. 2353

State Bank of

Travancore

Upto Rs. 7,500,000 - 12.6%,

Above Rs. 7,500,000 - 12.6% Floating 10 Years Rs. 1470

UCO Bank

Upto Rs. 7,500,000 - 11.7%,

Above Rs. 7,500,000 - 11.7% Floating 7 Years Rs. 1749

Union Bank of

India

Upto Rs. 7,500,000 - 12.35%,

Above Rs. 7,500,000 - 12.35% Floating 10 Years Rs. 1455

Vijaya Bank

Upto Rs. 7,500,000 - 12.15%,

Above Rs. 7,500,000 - 12.15% Floating 7 Years Rs. 1773

United Bank of

India

Upto Rs. 7,500,000 - 11.35%,

Above Rs. 7,500,000 - 11.35% Floating 7 Years Rs. 1731

B.K School Of Management |2015-17 50

8.1 Findings.

MAS financial services has Less number of DSA Agent thane other NBFC

Firm.

MAS finances services charges higher rate of interest as compare to its

competitors.

Approximately 28% agent Prefer to his client Indiabulls .

SBI Provide Lone against property at Lowest Rate Upto Rs. 10,000,000 -

10.75%, Above Rs. 10,000,000 - 11.25% - 11.75% Floating

MAS finance services Ltd Give Loan at minimum interest 16% . that’s the

reason they can not compete the LAP industry

SUGGESTION & RECOMMENDATION

Recommendation:

Customer(Agen Or Other Associated Firms) awareness programme is

required so that more people should attract towards advance product.

If there are any kind of hidden charges than that must disclose to customer

before giving loan to them.

MAS Finance Services must take some steps so that customers can get their

loan in time. Like phone verification by customer care that one customer is

got their loan on time or not .It must be before a certain date so necessary

steps can be taken.

Though the service quality is good but it should become better consistently

as good service and better relationships are the key success factors of current

market situations.

Advance product selling agents must not give any type of wrong information

regarding advance product.

For the better service new offers would be require.

B.K School Of Management |2015-17 51

MAS Finance Services Ltd customer care should more concern about the

fastest settlement of customer problems.

Before deducting or charging any monetary charge MAS Finance must consult

with customer.

Direct sales associate should be trained, well educated & proper trained to

convince the people about different advance product.

It is the duty of the Financial Institution to disclose all the material facts

regarding advance product, like interest charged, repayment period, other

types of charges, etc.

Special scheme should be implemented to encourage both customer and

agents.

The MAS finance services Ltd should increase the period for repayment of

loan.

MAS Finance services Ltd should more focus on Retaining existing

customers, broker , Agent.

MAS Finance services Ltd must take feedbacks of customers regarding

features & services.

A customer awareness programme should be taking place in rural area.

B.K School Of Management |2015-17 52

8.2 SUGGESTIONS GIVEN BY THE CONSUMERS AT THE TIME OF

SURVEY:

There is more time period for repayment of Business Loan . because a

person who take loan from NBFC ban, on Mortgage its property. That

means he/ she willing to repay you. You should wait for 2 month minimum.

Because you charge more than 18 % its quite high rate.

MAS Services Ltd Should to solve Agents problem immediately

Mas Finances services take more time for documentation and loan process

time than India Bulls, and that the problem Agents are not associate with

Mas finance .

Loan sanction date should be according to customer convenient.

B.K School Of Management |2015-17 53

Conclusion

From the analysis part it can be conclude that customers and Agent have a good

respond towards MAS Financial services Limited advance products LAP(loan

Against Property) in Ahmedabad . MAS finance is in 3st position having large

number of customers & providing good services to them. The Company has a

wide customer base, so the Company should concentrate on this to retain these

customers.

In present scenario MAS Become largest NBFC in Ahmedabad . Within a very

short period of time the achievement made by MAS financial services is excellent,

what a normal NBFC cannot expect, but it is being done by MAS Finance . It

happens due to employee dedication towards the organization, fastest growing

Indian economy, & brand image.

MAS finance Ltd has high interest rate, then other Financial institution that’s the

reason MAS finance Services have to face more Competition from Exiting

competitor.

MAS finance Services Spread almost in country. A focused retail finance

company spread all over Gujarat, Maharashtra, Rajasthan, Madhya Pradesh

(Indore), Tamilnadu (Chennai) & Karnataka (Bangalore) with its 71 branches and

more than 2500 Locations. That’s not enough for Lead in NBFC Market.

other Competitors have large Network than MAS financial services Ltd.

To be the largest NBFC Loan issuer In Ahmedabad & india , MAS finance

should focus on-

Launch New LAP scheme. With attractive customers benefit’s

Customized advance products

Better customer services

Fastest customers/ agents problem solving techniques

Customer / agent retention

Apart from all the above, MAS Financial service’s believe in providing good

customer services to their customers which is a key factor for success in future.

BIBLIOGRAPHY

Bhattacharyya, D.K. (2011) “Performance management system and strategies” Pearson Education, New

Delhi.

Varma, A., Budhwar, P.S. and DeNisi, A.S. (2008) “Performance management systems – A global

perspective” Taylor & Francis, New York.

http://www.mas.co.in/about-us/about-us.aspx

http://www.financemarket.co.in/mortgage-loans.html

https://www.bankbazaar.com/cibil/how-to-check-cibil-credit-score.html

https://www.jobisjob.com/sales+associate/job-description

https://en.wikipedia.org/wiki/State_Bank_of_India

https://en.wikipedia.org/wiki/Indiabulls

https://en.wikipedia.org/wiki/ING_Vysya_Bank

https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank

https://www.myloancare.in/loan-against-property-lap/

RESEARCH QUESTIONNAIRE FOR A STUDY ON “Loan against Property Analysis -

MAS V/S Competitor companies”

THANK YOU IN ADVANCE

Thank You for your willingness to participate in this survey. We value your precious time and assure you

that this will not take more than 10 minutes of your time. Your responsiveness to the questionnaire are

highly valued and considered extremely vital for this research.

NAME : AGE :

DESIGNATION : DATE OF JOINING :

__/__/____

Contact No:________________________

Address______________________________________________________________________________

Q .1 Do You Know about Mas Finance Services Limited? (If No than Continue with Q .6 )

Yes No

Q. 2 Are you aware About advance product of MAS finance services Ltd.?

Yes No

Q.3 Are you aware about LAP (loan Against Property) Policy of Mas Finance?

Yes No

Q.4 Do you have client who require Immediate Long term / Short Tern ?

Yes No

Q.5 If yes, than which purpose they require loan ?

Business Loan Home Loan Personal Loan

Q.6 How Much your client able to pay interest for Loan ?

< 10 -14% <15 -18%

<18 -20% <22-25%

Q.7 Are you Associated with any financial institution for Lap Referral scheme ?

Yes No

Q.8 If yes than which financial service provider ?

Other ________________________

Q.8 Would You like to refer LAP(loan Against Property) From Mass financial Services ?

Yes No

Q.9 If No, can you justify the reason ?

Lake Of thrust Past Bad Experience With MAS finance Services .

Less Incentive Time Consuming Loan Process

High Rate Of Interest Not convince Property valuation Method

inconvenient with Processing fees.

Other ___________________________________________________________

Q.10 What Do You Feel About The services Provided By the mas Finance ?

Bad Satisfied.

Good Excellent

Q.11 Give priority You refer First to Last ?

Other ________________________

Q.13 Mention which Features would you like suggest MAS Finance service Ltd. ?

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