Personal finance has become a portion and package of our life as there is barely one or two in 1000s who does non choose this pick. Indians, in general are neither born really rich nor really hapless. Hence, they face the job of finance at one point of clip in their lives. Personal finance which includes the loaning of loans, consumer recognition, investings in portions, etc will move as encouragement up factors for people who are in demand of finance in times of crisis.
Public Finance – At a Glance
The application of the rules ofA financeA to take pecuniary determinations of an single unit or household unit is called as Public Finance. It is concerned with the ways by which persons or households can obtain, budget, spend and salvage pecuniary resources, taking into history assorted fiscal hazards and future life events. Savings histories, consumer loans, recognition cards, investings on portions and unsecured bonds in stock market, plans like those of retirement, insurance policies, societal security benefits and IT direction signifier the built-in portion of public finance.
AA loanA may be considered as a type ofA debt. Unlike any debt instrument, the redistribution of financialA assetsA over clip, between theA lenderA and theA borrower is the basic characteristic of a loan. The particular facet of a loan is that the chief sum can be repaid in installments with a certain sum of involvement along with it. Loans are by and large of two types viz. :
Secured Loans where the loan is obtained on security footing.
Unbarred Loans where the loan is obtained with the aid of recognition cards, etc.
Nationalized Banks in India and the loans they offer:
All nationalized Bankss offer all sorts of loans to clients. Many private Bankss may hold limitations for offering loans to general public but that is the contrary in instance of nationalized Bankss. Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab and Sind Bank, Punjab National Bank, State Bank of India ( SBI ) , Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, Vijaya Bank, IDBI Bank. The undermentioned subdivision of the paper deals with a survey on the loans issued by many of these nationalized Bankss.
The research survey starts from the Allahabad bank where the figure of loans issued under assorted caputs is given for the twelvemonth ended 31st July, 2010.
Table 1.1 TABLE SHOWING THE QUARTERLY DATA OF ALLAHABAD BANK
Type of Loan
No. of loans Offered
A survey of the bank reveals that the clients apply for more saral loans as it is easy offered. The mean rate of involvement charged is 8.75 % merely where 8 % being the bank ‘s base rate. Coming to the educational loan, there is an addition in the figure of loans offered when compared to the old one-fourth where it was 28994 loans about. The rate of involvement charged is 12 % .
Bank of India
The Bank of India is specialized in offering industrial loans for clients. There is a steady addition in the figure of loans offered. The below pie chart depicts the distribution of loans under assorted caputs like industrial loans, lodging loans, educational loans and agricultural loans. At an norm, the rate of involvement is higher when compared to the other Bankss. There is a 0.25 % approximative addition in the rate of involvement when compared with Bankss offering the same sorts of loans. The below diagram shows the comparative pie chart of Bank of India between two old ages with respect to the loans issued and the money generated henceforth.
Diagram 2.1 DIAGRAM SHOWING THE TOTAL PRIORITY OF LOANS IN BANK OF INDIA
The Corporation Bank has increased the offering of personal loans to the general populace and hence there is an addition in the entire figure of loans offered. The entire loans issued by the bank have increased to Rs. 63,203 crores when compared to the old twelvemonth which was Rs. 48,512 crores. The educational loans have registered an built-in portion of the addition of loans. They have contributed Rs. 6,317 crores ( 43 % of the entire difference in the sum of two old ages i.e. 43 % of Rs. 14,691 ) .
Table: 3.1 TABLE SHOWING THE AMOUNT RECEIVED FROM LOANS BY CORPORATION BANK
Amount received from loans ( Rs. in crores )
Diagram 3.1 DIAGRAM DEPICTING THE ABOVE TABLE OF CORPO BANK
Punjab National Bank
Punjab National Bank besides continues to turn its retail recognition installations. The one-year studies reveal the growing of retail recognition from Rs. 15,947 crore to Rs. 19,214 crore during the fiscal old ages 2008-09 and 2009-10 which has registered an addition of 20.49 % . The Housing strategy, Vehicle strategy, Education strategy, Pensioner strategy, Gold strategy, Mortgage & A ; Reverse Mortgage schemes which come under outstanding in nucleus retail has increased from Rs. 13,745 crore to Rs. 16,369 crore exhibiting an one-year growing of 19.09 % . Education Loans still go on to be the cynosure of the bank as it has increased by 46 % to Rs. 2,272 crore as on 31.3.2010 from Rs. 1,559 crore as on 31.03.2009. At the same clip, Housing loans have increased to Rs. 9,538 crore as on 31.03.2010 demoing a steady growing of 14 % . Vehicle loan has besides increased to Rs. 1,309 crore taging a growing of 12 % .
Table: 4.1 TABLE SHOWING THE AMOUNT RECEIVED FROM LOANS BY PUNJAB NATIONAL BANK
Amount received from loans ( Rs. in crores )
Table: 4.2 TABLE SHOWING THE GROWTH OF LOANS AND ITS PERCENTAGE IN PUNJAB NATIONAL BANK
Type of Loan
Growth ( Rs. in Crores )
Percentage of Growth
Diagram: 4.2 DIAGRAM DEPICTING THE GROWTH OF LOANS IN PUNJAB NATIONAL BANK
The comparative survey of 4 old ages ‘ public presentation show that the entire loan sum has increased from Rs. 28,233 crores in 2006-07 to Rs. 56,462 crores in the fiscal twelvemonth 2009-10. There has been a stiff competition between the personal loan and educational loan in its addition in these old ages as the overall addition of educational loan is 43.2 % whereas it is 43.8 % in instance of the personal loan.
Table: 5.1 TABLE SHOWING THE AMOUNT RECEIVED FROM LOANS IN ANDHRA BANK
Amount received from loans ( Rs. in Crores )
Diagram: 5.1 DIAGRAM SHOWING THE AMOUNT RECEIVED FROM LOANS IN ANDHRA BANK
Analysis OF THE TOTAL STUDY:
The undermentioned illations and decisions were drawn out of the present survey:
The processs and formalities for the sanctioning of a loan are reduced from clip to clip.
There is a hiking in the issue of educational loans as the pupils who opt for higher surveies are increasing in figure.
There is an equal addition in the issue of personal loans as most of the clients apply on the footing of their salary histories from both public and private establishments.
Car loans are least demanded in India when compared to the others.
The concluding and dumbfounding decision of this survey is that about 72 % of the entire population of India has had a positive experience for personal finance through loans offered by Bankss as they are extremely dependable and executable for the clients to refund.