A project report on customer satisfaction and credit procedure study of citifinancial personal loans BY BABASAB PATIL

CUSTOMER SATISFACTION AND CREDIT PROCEDURE STUDY OF CITIFINANCIAL PERSONAL LOANS

Babasabpatilfreepptmba.com Page 1

TABLE OF CONTENTS

S.NO. CHAPTER PAGE

NUMBER

1 EXECUTIVE SUMMARY 7

2 AIM OF THE STUDY 8

3 Dr. GALLUP & GALLUP ORGANIZATION 9

4 DESIGN OF THE STUDY 29

5 PERSONAL LOANS 33

6 PERSONAL LOANS MARKET IN INDIA 39

7 CITIGROUP 41

8 CITIFINANCIAL 46

9 ANALYSIS & INTERPRETATION 48

10 FINDINGS 68

11 RECOMMEDATION 71

12 CONCLUSION 73

LIST OF TABLES & GRAPHS

CUSTOMER SATISFACTION AND CREDIT PROCEDURE STUDY

OF CITIFINANCIAL PERSONAL LOANS


S.NO. TOPIC PAGE

NUMBER

1 Customer Age Profile

2

1 Customer satisfaction regarding overall service of

Citifinancial.

51

2 Customer opinion regarding Citifinancial‟s ability to

keep up its promises.

53

3 Customer opinion regarding Citifinanacial‟s ability to

meet its customers‟ needs.

55

4 Customer opinion regarding Citifinancial as a

trustworthy bank.

57

5 Customer satisfaction regarding time taken for loan

approval.

59

6 Customer satisfaction regarding EMI schemes offered

by Citifinancial.

61




7 Customer satisfaction regarding interest rate charged

by Citifinancial.

63

8 Customer satisfaction regarding processing fees

charged by Citifinancial.

65




EXECUTIVE SUMMARY

Personal Loan market in India is growing by leaps and bounds. The major players include

ICICI which tops the list along with HDFC, Citibank, ABN AMRO, HSBC, all the

nationalized Banks, co-operative banks, other financial institutions and unorganized

money lenders.

The project is a customer satisfaction study which involved city of Dharwad. The

research involved studying existing customers. It covered each and every aspect of

personal loan which can affect customer satisfaction. The main objective of the study was

to find out areas where customers are not satisfied with the service offered by

Citifinancial regarding personal loan. The study alo aimed at studying the credit

procedure at citifinancial.

Citifianancial mainly caters to the B and C segment of the market. The Loan amount lent

is between 10,000 to 50,000. The rate of interest varies from 16% to 36% depending

upon the credit procedure.

The study shows that most of the customers are happy with the service given by the

citifinancial. But the reason of dissatisfaction mainly lies with the interest rates and

processing charges.

Citifinancial can introduce schemes that can suit for premium segment too. Also ETC

arrangements are better since some of the cases Cheques required are more in some

cases.




OBJECTIVES OF THE STUDY

1. To study the customer profile of citifinancial

The major objective of the study is to understand the profile of customer segment of

citifinancial.

2. To Study the customer perception towards citifianacial consumer loans

The aim of the study is to understand the customers perception about citifinancial

personal loans which includes queries regarding interest rates, service, and other factors.

3. To study the personal loan market in India.

With the entry of private players personal loan industry in India has expanded. Also

added is the increase in the number of middle class mass in India.

4. To understand the working of citifinancial.

Citifinancial is one one the flagship members of citigroup. One of the major objectives of

the study is to get an insight into the world‟s largest financial company.




NEED FOR STUDY

Financial Sector in India is expanding many folds. Every other day there is a new

company coming up with new services. The need for study arouse with the entry of

numerous institutions who came up with personal loan products. But personal loan being

a unsecured loan risk is no doubt more in the business.

People require immediate cash for various reasons. Increase in the avenues of spending

has triggered off a good market for personal loans. There are various documents and

procedures of different banks and Institutions who lend personal loans.

Citifinancial being one of the pioneer lending institutions is excelling in personal loan

sector. It an institutions which is catering to the most risky profiles but at the same time is

expanding rapidly in the market with profits too.

This study was initiated to study organization, product policy, customer profile and the

personal loan market in India.

The major intension is to know the customers perception towards personal loans of

citifianancial.




SCOPE OF THE STUDY

The study is limited to the city of Dharwad only. It is also restricted to the study of

citifianancial only. Also the location being Upcountry, it does not reflects the perception

of customers of metro cities where personal loan market is at hype.

The study includes organization study and credit policy but excludes any financial data.

The study covered each & every aspect of the customers. The study focused on customer

reaction with respect to the overall service & each & every aspect of the product such as

interest rate, EMI etc.




DESIGN OF THE

STUDY




RESEARCH METHODOLOGY

1. Data Collection:

Mainly two types of data were used for data collection viz:

Secondary data: The main source was the customer data base which was obtained at

Citifinancial office at Dharwad. It was used to find out all general information about the

existing customers such as their names, their residential & official address & their phone

numbers. Also the product policy of Citifianancial which provided major data about the

product and credit policy. Also articles from the news papers, magazines and websites

were used.

Primary data: The main source was the questionnaire which was designed to collect all

the primary data such customer reaction towards all the aspects of the product.

2. Steps involved in sampling Process:

a. Defining population:

Respondents are existing customers of citifianancial Dharwad

b. Specifying sampling frame:

Sampling frame is the database provided by citifinancial Dharwad.

c. Specifying the sampling Unit:




Customers who have availed loan from citifianancial.

d. Specifying the sampling method:

Non-Probability Convinience sampling method was used for data collection.

e. Determining sampling size:

Total target respondents were 50

d. Specifying the sampling plan:

Selected different category of the customers.

3. Type Of Questions:

To collect the primary data, a questionnaire was devised which consisted of:

Dichotomous questions: Having three options

Balanced scaling questions: Having three points on which the customers were required

to rate.

Apart from this, Demographic based questions were there to collect data about the

customers regarding their names, age, income, occupation, household income, amount of

loan & the number of installments.

4. Analysis:

Single Tabulation was used for arranging the collected data & for analyzing &

interpretation




LIMITATIONS

Though the study has covered each & every aspect of customer satisfaction but it has

neglected customer-employee interaction, which contributes highly to the customer

satisfaction. Due to this, though the study may help in finding out the areas where

Citifinancial needs to improve with respect to product features but it will not help

Citifinancial in deciding whether to train its employees or not for dealing in a better way

with the customers




CONCEPTUAL

FRAMEWORK




PERSONAL LOANS

DEFIATIONS:

Loan: A Loan is an amount of money given to the other person with or without a

collateral or a guarantor for a certain period of time anticipating the repayment of lent

money with certain returns.

Personal Loan: “An amount of money borrowed from a bank or other lender by an

individual”.

It is a loan based on a consumer's income, debt and credit history. It is a loan obtained by

an individual for personal (as opposed to business or investment) purposes. A personal

loan is generally an unsecured loan.

Personal Loan establishes consumer credit that is granted for personal use; usually

unsecured and based on the borrower's integrity and ability to pay.

A personal loan is a lump sum which you borrow from a bank, building society or

another lender.

The simplest explanation of the use of the word "personal" is to describe these types of

loans is that, the money that is borrowed is to be used for personal reasons. If the aim of

the loan was to finance the purchase of a home, that is a mortgage. If the purpose of the

loan is to help a business to expand, that is a business loan. If you are taking out a loan to

http://www.personal-loans-advice.co.uk/




fund something that will be for your own personal use, or to help you out with personal

issues, then that is a personal loan. The best way to expand on this would be to look at

what a personal loan could be used for.

A personal loan is an amount of money offered, normally by lending institutions such as

banks and building societies, on the condition that it will be paid back at some later date.

Personal loans are available in a whole host of formats and can range from 10000

upwards. The term of the loan is often dependent on whether the lender requires security

to be offered by the borrower and the size of the regular repayments you wish to make.

Under most personal loan arrangements you receive a lump sum, equal to the amount of

the agreed loan and in return you agree to make regular repayments. These repayments

are normally monthly and cover both the interest due and the capital outstanding loan

amount. If you have established the loan as a 'repayment' type loan then the repayments

will include an amount to pay off some of the capital and reduce your outstanding debt.

Payments are made throughout the term of the loan to ensure that the total debt is repaid

to the lending institution.

AMOUNT OF PERSONAL LOAN

Amount wise personal loans may range from 10,000 to 10, 00,000.

RATE OF INTEREST

Currently, interest rates across all banks are in range of 10% to 22%. The interest rate

usually depends on three factors:

Amount of loan: Higher the amount lower will be the interest rate & vice verse.





Type of loan: While secured loan carries lower rate where as unsecured loan carries

higher rate.

Customer Segment: Rate of interest is higher in case of high risk segment and vice versa

PERSONAL LOANS

USES OF PERSONAL LOAN

The range of uses for the money is very wide indeed. Common uses include the purchase

of a new car, a holiday or the repayment (consolidation) of existing debt.

Frequently the lending institution will ask for details of the reason you require the loan.

Although the purpose of the loan may have little impact on their decision to grant the

money, it can have some influence on the maximum term of the loan.

It is more likely that larger sized loans, for purchases such as cars, home improvements

etc. will result in a longer repayment term. It is not uncommon for the purchase of a car

to established with a repayment term of 3 years whilst the term for home improvement

loans can be for much longer terms (sometimes as long as ten years).

SUITABILITY OF PERSOAL LOAN

If you are looking to borrow money over a period of less than ten years, whether you

need the money for a purchase or perhaps to repay existing debt, then a personal loan

may be suitable for the needs




Personal loans are just another form of credit. If you are considering a personal loan to

run alongside other forms of personal credit such as overdrafts and credit cards, you must

give careful consideration to whether you will be able to afford the total of your regular

payments. When considering the situation it is wise to take into account your ability to

pay were you unable to work due to any reasons.

PERSONAL LOANS

ACCESSABILITY TO PERSOAL LOAN

There are hundreds of potential lenders willing to offer you the opportunity to borrow

from them. However the offer of finance does depend upon your ability to repay the debt

and your previous credit history. Those applicants that have had credit difficulties in the

past can find it more difficult to obtain access to a personal loan compared to those

applicants that have a better credit history.

It is normally true that the better the credit risk you are, the easier you will find it to

obtain a personal loan. It is also likely that people who have the best credit histories will

be offered the best deals. This normally means a lower interest rate is charged or the

repayment terms are longer.

DIFFERENCE BETWEEN PERSONAL LOAN AND BANK LOAN

There isn't much of a difference between a bank loan and a personal loan. They are in

essence the same thing. In a bank loan one can are borrow an amount of money against

property or an asset or in consideration of his/her creditworthiness to repay at agreed

intervals with interest added to the sum.

The difference is that a bank specifically provides a bank loan. A few years ago, the

bank was one of the only places a customer could get a loan, which is why people used to

say they needed a good relationship with their bank manager. Obviously, this isn't the

case now, as building societies and many other financial companies also offer loans.







MERITS & DEMERITS OF PERSONAL LOAN

MERITS: Positive side of a personal loan is that, it is quick and easy to avail. Moreover

usually a personal loanis lent without any security and guaranty

PERSONAL LOANS

TYPES OF PERSOAL LOAN

Unsecured personal loan: Is a debt that you can acquire where you do not have to

use any specific collateral to back the loan. Usually, the people who would be eligible for

this type of loan would be people

An unsecured loan will mean less risk to the person taking out the loan than a secured

loan. This is due to the fact that a person will not have to use their home as insurance for

the loan. The negative aspect of this is that due to the lack of insurance, the interest

payments set will be higher, as the loan provider will need to cover the added risk of not

being able to get their money back. A positive aspect of the unsecured loan could be that

your application is processed a lot quicker, so you can get hold of money more rapidly.

This speed is due to the fact that your home will not need to be valued to make sure your

security is available. Another upshot of this is that you can submit an application, get a

reply and answer very quickly to your application, and just because you have submitted

does not mean you are under an obligation to take up the loan.

Secured personal loan: Is a loan that is specifically assigned for home owners. This

is where the home is used as collateral, which is a larger risk for a customer than an

unsecured loan, because if you fall into difficulties or are unable to repay the loan for any

particular reason your home is at risk. One of the most vital points to understand about a

http://www.secured-loans-advice.co.uk/





secured loan is that it is not best used as a solution to debt problems, because it is even

more important that you have budgeted properly to cover the loan payments. Many

people with debt problems have them precisely because they are not good at budgeting to

cover loan payments.

Secured personal loans could be taken out for various reasons. You could want to make

home improvements, for which you can borrow money secured on your home, as you are

hopefully increasing its value. Perhaps it could be for a debt consolidation loan, where

you take out a loan for an amount large enough to pay off several other debts for a longer

period

PERSONAL

LOANS

MARKET

IN






INDIA

PERSONAL LOANS MARKET IN INDIA

In recent times, personal loans market in India is witnessing a rapid growth. Over the

year 2002-03 personal loans disbursement has grown by 39%. Consumer credit in India

is currently growing at around 45%-50% annually, and considering that the Indian

economy is expected to grow at around 8% this year, demand for consumer loans

including personal loans is expected to remain strong. The growth is high in unsecured

personal loans as compared to secured personal loans.

Following are some of the factors responsible for growth in personal loans market in

India:

Falling interest rates: Interest rates have gradually fell form above 25% to below 20%

across all banks over the years.

Change in consumer behavior: Once customers hesitated to take loans from banks but

now they are looking at it from a positive angle.

Shift in focus of banks from corporate lending towards retail lending: Banks are now

concentrating more on retail loans including personal loans, home loans & auto loans due

to the growth in retail loans.




Positive demographics: There is rapid growth in urban population, who are most likely

to take retail loans. Apart from this middle class segment is growing, which account for

about 70-80% of the total loan seekers.

MAJOR PLAYERS: At preset ICICI Bank is the market leader having more than

30% market share in personal loans market, followed by HDFC Bank. Apart from this

there are several other banks including Government banks, Private banks & MNC banks

who are in the lead. In case of MNC banks, Citifinancial tops the list with respect to total

loan disbursements & in terms of market share. It is followed by HSBC, Standard

Chartered bank, ABN AMRO & others.

CITIGROUP




CITIGROUP

LEGACY

Citigroup Inc., today's pre-eminent financial services company, with some 200 million

customer accounts in more than 100 countries, dates back to the history of Citibank,

which began in 1812; Travelers Life & Annuity, since 1864; Smith Barney, founded in

1873; Banamex, formed in 1884 as a result of the merger of Banco Nacional Mexicano

and Banco Mercantil Mexicano; and Salomon Brothers, which dates back to 1910 and

later merged with Smith Barney, a subsidiary of Travelers Group at the time.

Other major brand names under Citigroup's trademark red umbrella include Citi Cards,

CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners Club, Citigroup Asset

Management, The Citigroup Private Bank and CitiCapital.

FAMILY TREE




Citigroup is largely organized into four groups: Citigroup Global Consumer Group, the

Global Corporate and Investment Banking Group, Citigroup Global Investment

Management, and Global Wealth Management.

CITIGROUP

PRODUCT LINES

Global Consumer Group

Cards

o World‟s largest provider of credit cards

o Third Quarter '04 Net Income of $1.267 billion

Consumer Finance

o World‟s consumer finance leader

o Third Quarter '04 Net Income of $643 million

Retail Banking




o Citibank: highest-rated, leading global brand


Global Corporate and Investment Banking Group

Capital Markets & Banking

o #1 underwriter of Combined Debt and Equity and Equity-related

transactions


Global Transaction Services

o Leading provider of transaction products; $7.3 trillion in assets

under custody


CITIGROUP

PRODUCT LINES

Global Investment Management

Life Insurance & Annuities

o One of the fastest growing life insurers in the U.S with expanding

international presence


Asset Management

o A leader with $500.7 billion in assets under management





Global Wealth Management

Private Client Services

o A leader in managed accounts with $1.087 trillion in total client

assets


Private Bank

o Offers widest range of services to more than 25,000 of the world‟s

most successful and influential families


CITIGROUP

IN

INDIA

Citigroup opened its first office in India in 1902 in Kolkatta. Since then they have

become one of India's most diverse and recognized financial service providers operating

in 450 offices and branches across India. Citigroup India has 5,000 employees

nationwide. Their operations encompass a premier global corporate and investment bank

and a well-established consumer business under the Citibank and CitiFinancial brands.




The global corporate and investment banking group provides a comprehensive range of

financial services including treasury management, transaction services, securities

custodianship, foreign exchange, fixed income and equities sales and trading, and

corporate finance to corporate clients, governments and financial institutions.

Citibank India is the country's leading retail bank with a history of innovation and

customer service. Today we are the largest issuer of credit cards and offer mortgages,

personal loans, insurance, and investment services for on-shore customers. Citibank India

also provides banking services to the international Indian community in 23 cities around

the World.




CITIFINANCIAL

CITFINANCIAL

Since 1912, CitiFinancial has been helping people realize their financial goals and

dreams. Headed by CEO and President Harry D. Goff, CitiFinancial is a member of

Citigroup, the world's largest financial services provider.

They have more than 2000 offices in the United States and Canada. Each branch manager

runs their CitiFinancial office as if it is their own business, so loan decisions are made

locally.




They provide home improvement loans, bill consolidation loans, money for tuition,

vacation getaways and unexpected expenses. They have a solution that helps you afford

what you want or need most in life. They‟ll get you the money you need when you need

it!

Products & Services:

Personal loans

Home loans

Auto loans

Citifinancial personal loan: It can be used to pay off your credit card bills, meet

your unexpected expenses or it can be used for education or travel purpose. At this time,

CitiFinancial Personal Loans are not available for business purposes. Their specialty is

extending credit for personal, family and household purposes.

Qualification criteria: CitiFinancial grants personal loans to people over age 18 who

have established credit and can secure the loan with personal property. Some established

credit, like a gasoline or store credit card, is necessary, and employment or other steady

income is required. We also make unsecured loans to homeowners. People just beginning

to establish credit may be asked to have another responsible adult co-sign for the loan.

The Indian middle class, which constitutes a large market, has doubled over the last

decade and is set to multiply in the coming years. The Citifinancial target market falls in

this category and the company is already catering to finance requirements for consumer

durables, two wheelers, and automobiles to this segment. We have a customer base of

over 200000 customers, of which 25% customers have more than a year‟s credit history

with the Citifinancial. We are now targeting our consumer durable and two wheeler

customers for providing them with Personal loans with an objective to retain performing

customers build loyalty and create lasting relationships.




The middle class salaried individual segment and the small business segment have also

shown an appetite for small ticket loans to meet personal needs, debt consolidation and

short-term capital needs for business. Citifinancial has sought to address these financing

needs by launching a personal loan program for individuals who have no prior financing

relationship with us. This is referred to as the new borrower program.

The existing players in the market are ICICI, Citibank, ABN Amro Bank, Standard

Chartered Bank, American Express and GE Countrywide. In the last one year hectic

activity to promote the product has been visible in the market. Our focus on strengthening

bonds with existing customers, geographical reach and relationship-based approach will

provide as a unique competitive advantage

ORGANISATION STRUCTURE:

Citifinancial has a flat organization structure. In fact there are only four steps between an

officer and MD.

The grade structure applicable to all employees on the rolls of Citifinancial Consumer

Finance India Limited is:




Grade Designation

5 Vice President

4 Assistant Vice President

3 Manager / Senior Manager

2 Assistant Manager / Management Associate

1 Officer / Senior Officer / Secretary

PROCESS

The minimum qualification required for any employee of Citifinancial India is

graduation.

All hiring is executed by the Regional HR teams.

A hiring request could arise from vacancies created on account of:

Replacement of an employee who has left the organization or movement of an

employee to a different position / location

Creation of a new position

Business expansion

HR receives a hiring request (verbal/email) from the line manager. A hiring request

should be in line with the manpower plan which is duly approved by the country business

head and head of financial control. Wherever vacancies are not provided for in the

manpower plan, the hiring must be approved by the country business head.

The hiring request may be accompanied by specifications related to the level and profile

of the incumbent

HR, in conjunction with the line manager decides to source candidates through:

Internal movements - Key internal movements are decided and agreed upon by

business and functional heads. Movements are discussed with line managers and

reported by HR every month.

Databases existing with HR – These may be created through referrals and / or

direct applications

Empanelled recruitment consultants - HR maintains a panel of approved




recruitment agencies, along with agreements and rate lists. While the line

manager or HR could interact with the agency during the course of hiring, no

recruitment agency can be empanelled without the approval of HR.

Recruitment advertisements on any media – These are released keeping in mind

the requirement, cost and other options open for recruitment.

All job advertisements should cover the following areas:

1. Brief profile of the Company

2. Level / title of the position and brief outline of responsibilities

3. Candidate qualification and experience profile

4. Response time for applications

Text should be non-discriminatory in nature and should specifically avoid reference to

sex, creed and religion. The content and presentation of the advertisement should be in

compliance with Citigroup branding guideline.

Candidates are shortlist from applications received in the following manner:

Not suitable - rejected

Suitable – Called for personal interview

Meet minimum requirement but not suitable for immediate requirement – stored

in data of short listed candidates

In the process of short listing, no candidate should be discriminated against on the basis

of gender, religion, ethnicity or age.

Candidates short listed are called for a personal interview with the line manager, or HR

PRODUCT DESCRIPTION

S.

NO

PRODUCT

PARAMETERS

NEW BORROWER PROGRAM

EXISTING

BORROWER

PROGRAM

PL PLUS

PROGRAM

CORE

PROGRAM

SURROGATE

PROGRAMS




1

Target Market

Salaried

Individuals

Self

employed

professionals

Self

employed

businessmen

Freedom

Loan-

Individuals

who have a

repayment

track with any

other bank or

financial

institution.

The loan must

be running or

not closed

earlier than 6

months from

the date of

application.

Debt

consolidation – Individuals

who hold a

Classic or

Gold card or

its variants &

the card must

have been in

existence for

more than a

year. 2

Suvidha

Cross Sell:

Salaried: 3

salary credits

in Citibank

suvidha a/c &

a minimum

net salary

credit of Rs

3500/-pm

Self-

employed:

monthly

average

balance of

3500 for the

Existing

Citifinancial

customers

with

performance

of:

· 4

months in

CD, TW

and Auto

(Corporate

and

Individual)

· 9

months in

PL

· 14

months in

Pro Credit

Existing and

New

customers of

Section A

and B

segment with

higher

Equity.




last 6 months

Mobile

phone

subscribers-

Minimum

average

monthly

billing of

Rs 1000/- in

the last 3

months

2

Locations

All approved

locations and

those which

might be

approved by

management in

future

All approved

locations and

those which

might be

approved by

management in

future

All approved

locations and

those which

might be

approved by

management

in future

All approved

locations and

those which

might be

approved by

management

in future

3

Minimum Loan

Amount

Rs.10000

Rs.10000

Rs.10000

Rs. 75000

4

Maximum

Loan amount

Rs 50000

(as

communicate

d to the

market)

Rs. 200000

(as per PP)

Rs 50000

(as

communicate

d to the

market)

Rs. 200000

(as per PP)

Rs.

100000 (as

communicat

ed to the

market)

Rs 200000

(as per

CCPP)

Rs.

200000

5

Minimum

Tenor

12 months

12 months

12 months

12 months

6

Maximum

Tenor

48 months

48 months

48 months

48 months

S.

NO

PRODUCT

PARAMETERS


EXISTING

BORROWER

PROGRAM

PL PLUS

PROGRAM

CORE

PROGRAM

SURROGATE

PROGRAMS*




7

Sources of

Acquisition

Branch

walk in „s

Direct

selling

Agencies

· Direct

mailing

Cross sell

/marketing

programs

Branch

walk in „s

Direct

selling

Agencies

Direct

mailing

Cross sell

/marketing

programs

N.A

Branch

walk in„s

Direct

selling

Agencies

Direct

mailing

Cross sell

/marketing

programs

Tele-

calling

Agencies

Existing

borrowers

8

Restricted

Profiles

As per list

defined and

any other

profiles as

defined by

the location 3

As per list

defined and

any other

profiles as

defined by

the location 3

N.A

As per

list defined

and any

other

profiles as

defined by

the location

3

9

Restricted

Areas

Restricted

Area List to

be based on

collection and

market

feedback and

reviewed

from time to

time.

Restricted

Area List to

be based on

collection and

market

feedback and

reviewed

from time to

time.

N.A

Restricted

Area List to

be based on

collection

and market

feedback

and

reviewed

from time

to time.

10

Interest rate

Loans to be

extended

based on the

grid

provided,

Loans to be

extended

based on the

grid

provided,

Loans to

be extended

based on

the grid

provided,

Loans to

be extended

based on

the grid

provided,




which will be

revised/repris

ed based on

business

requirements

and approved

by the

Business

Head

which will be

revised/repris

ed based on

business

requirements

and approved

by the

Business

Head

which will

be revised

/reprised

based on

business

requirement

s and

approved

by the

Business

Head

Cross-loan

recourse

available

which will

be revised

/reprised

based on

business

requiremen

ts and

approved

by the

Business

Head

Cross-loan

recourse

available

11

Fee

Typically 2% of the loan amount and as decided by Business

Manager

12

Other Charges

Cheque swap charges – Rs 500

Prepayment Charges - 4%

Cheque returned charges - Rs 150 per instrument bounce

Penal Charges - Rs 250

Any other charges as decided by the management

S.

NO

PRODUCT

PARAMETERS


EXISTING

BORROWER

PROGRAM

PL PLUS

PROGRAM

CORE

PROGRAM

SURROGATE

PROGRAMS*

13

Credit

Approvals

Credit

Decision to be

based on the

Citifinancial

Underwriting

Standards. All

approvals to

be signed off

Credit Decision

to be based on

the Citifinancial

Underwriting

Standards. All

approvals to be

signed off by

officer having

As per the

existing

borrower

qualifying

grid. All

approvals to

be signed off

by officer

Credit

Decision to

be based on

the

Citifinancial

Underwriting

Standards.

All approvals




by officer

having

requisite

authority as

per credit

delegation

matrix

requisite

authority as per

credit

delegation

matrix

having

requisite

authority as

per credit

delegation

matrix.

to be signed

off by officer

having

requisite

authority as

per credit

delegation

matrix

14

Repayments

Through

Post dated

Cheques to

be collected

at the time

of disbursal

of the Loan

payable on

the 5th of

the month.

Through

ECS

Through

Post dated

Cheques to be

collected at

the time of

disbursal of

the Loan

payable on the

5th of the

month

Through

Standing

Instructions

on the

CITIBANK

SUVIDHA

a/c for

SUVIDHA

customers

· Through

ECS

Through

Post dated

Cheques to

be collected

at the time

of disbursal

of the Loan

payable on

the 5th of

the month.

Through

ECS

Through

Post dated

Cheques to

be collected

at the time

of disbursal

of the Loan

payable on

the 5th of

the month.

Through

ECS

15

Targeted IRR

As decided by management

16

Collateral

None. Citifinancial recourse will be based on the Loan agreement

and the PDCs/ECS mandate signed by the customer

UNDERWRITING STANDARDS- Principle terms and

conditions




S.

NO

CRITERIA

NEW BORROWER

PROGRAM

EXISTING

BORROWER

PROGRAM

PL PLUS

PROGRAM

CORE

PROGRAM

SURROGATE

PROGRAMS

Income

surrogate

Debt

consolidation

Mobile phone

subscribers

Citibank

Suvidha

customers

1 Minimum

Age 21 yrs 21yrs 21yrs 21yrs

2

Maximum

Age on

Loan

Maturity

065 yrs 65 yrs 65 yrs 65 yrs

3 Income

Rs

40000/-

per

annum

Not applicable till

loan amount Rs

50000 provided

the following

Surrogate income

indicators are

considered

Freedom Loan

–Last 6 months

repayment track

with another

bank or

financial

institution with

no emi bounce

in last 3 months.

Debt

Consolidation-

Last 2 months

credit Card

statements

Mobile Phone

subscriber-

Minimum

Not applicable

for finance

amount less

than Rs 50000.

For loan

amount greater

than Rs 50000,

latest income

proof to be

taken with

minimum of

Rs. 40000 p.a.

(Refer to section

on criteria of

approval for loan

amounts greater

than Rs 50000

without a valid

income proof

document for

repeat customer)

1. Existing

Consumer

Durables

customers

with the

following

criteria are

eligible

Single

product >Rs

30000/-

Min 8 MOB

Max One

EMI bounce

in last 8

months

All EMI

cleared

No bounce

in last 3

months

· Min EMI




monthly

average billing

for the last 3

months to be Rs

800/-

Suvidha

customers-

Salaried: 3

months salary

credits in

Suvidha a/c

with minimum

salary credit of

Rs 3500. Self-

Employed:

Monthly

average balance

of 3500/- for the

last 6 months.

Rs 2000/-

2. Auto

customers( of

Citifinancial

and other

finance

company)

with 12 MOB

record of a

car (except

matiz, cielo,

Siena, auto

taxi) with the

following

criteria

Max 1

EMI

bounce,

All

EMI‟s

paid,

No

bounce

in the

last 3

months

3. Salaried

applicants

with a

standard

income proof

above Rs

125000

4. Doctors

(MBBS with

running

practice) with

standard

income proof

above Rs

100000.




5. Gold Card

holder with

credit limit

above

Rs 100000

with last 3

bills paid on

minimum

amount due.

6. Self-

employed

individuals

with standard

income proof

greater than

Rs 100000

7. 12 months

track on a PL

with other

finance

company(onl

y new

borrowers)

where

minimum

finance

amount is Rs

75000 and

minimum

emi is Rs

3500

8. 9 month

track on a

housing loan

with other

finance

company

with

maximum 1

emi bounce

and no emi




bounce in last

3 months.

Loan to be

current as on

date.

Minimum

housing loan

amount to be

Rs 500000

and minimum

emi Rs 5000.

Loan to be

active or

closed not

later than 6

months from

the time of

loan

application

9. Any other

criteria as

approved by

Credit & Risk

Director

Income proof

required in

100% cases.

Minimum

income Rs

40000 pa(where

other surrogates

are available)

4

Bank

Statements

3

months

from

date of

applicati

on

3 months

from date of

application

6 months for

Freedom Loan

program

N.A 3 months

from date of

application for

New

Customers

Not required

for Existing

Customers




CRITERIA

NEW BORROWER PROGRAM EXISTING

BORROWER

PROGRAM

PL PLUS

PROGRAM

CORE

PROGRAM

SURROGATE

PROGRAMS

5

Current

employment

At least 1

year

At least 1

year

N.A

At least 1

year for new

borrowers

Not

applicable for

Existing

Customers

6

Residence

stability

1 year for

Rented

accommodati

on

6 months

for self

owned/parent

al/ company

provided

accommodati

on

1 year for

Rented

accommodati

on

6 months

for self

owned/parent

al/ company

provided

accommodati

on

N.A

1 year for

rented

accommodatio

n

6 months for

self

owned/parenta

l/ co. provided

Not

applicable for

Existing

Customers

7

Telephone

Requirement

(direct

contactability)

Ref to

Annexure IV

on phone

acceptability

criteria.

At least one

direct line at

residence or

office

At least one

direct line at

residence or

office

At least one

direct line at

residence or

office

At least one

direct line at

residence or

office

8

CPV office

Mandatory for

self employed

only

Mandatory for

self employed

only

Mandatory for

self employed

only where

The

previous

Mandatory for

all self

employed new

borrower cases,

and for existing

borrowers only




loan was a

Fast track

loan

Was

foreclosed

earlier than

6 months

from the

date of

application

Change in

address

from

previous

loan

Loan

amount

greater

than Rs

75000

where

The previous

loan is a Fast

track loan

Was

foreclosed

earlier than 6

months from

the date of

application

Change in

address from

previous

loan

For all self

employed

new

borrowers

9 CPV

Residence

Mandatory for

all cases

Mandatory for

all cases

Mandatory for

all cases

where

The

previous

loan is a

Fast track

loan*

Was

foreclosed

earlier than

6 months

from the

date of

application

Change in

address

from

previous

loan

Loan

amount

greater

Mandatory for

all new

borrower cases

and for existing

customer cases

where

The previous

loan is a Fast

track loan

Was

foreclosed

earlier than 6

months from

the date of

application

Change in

address from

previous

loan




than Rs

75000

10

Telephone

Verification

Mandatory for

the applicant &

one reference.

Mandatory for

the applicant &

one reference.

(Reference tvr

waived where

applicant has an

active running

repayment

track for more

than 6 months

with another

financier)

Mandatory for

the applicant

Mandatory for

the applicant in

all cases.

Reference tvr to

be done in New

borrower cases

11

De-

duplication

Check

De-duplication check on Citifinancial database, Citibank Negative

database and watch list customers (SDN & RBI watch list) mandatory

for all.

Note:

Fast track for Sales Finance (CD/2W) - Physical verification report is not required for

“Fast Track” applications where the loan amount for durables (net of advance emis) is

less than Rs.30000 for individuals salaried in government/limited companies or less than

Rs.20000 for self employed individuals. For two wheelers, if the LTV is below 80%

(subject to finance amount net of advance EMI‟S being less than Rs.35000), the loan

becomes a fast track case.




Sl.

N

O

CRITER

IA


EXISTING

BORROWER

PROGRAM

PL PLUS

PROGRAM

CORE PROGRAM

SURROGATE

PROGRAMS

12

Reference

s

Two references are

mandatory. Can be

friends/colleagues/relatives

in the same city

Two references are

mandatory. Can be

friends/colleagues/rel

atives in the same city

N.A

N.A in existing

borrowers

Two references are

mandatory for all

new borrowers.

Can be

friends/colleagues/r

elatives in the same

city, for all new

borrowers

13

Personal

Discussio

n

Mandatory for all cases

Refer to section on

interviews

Mandatory for all

cases

Refer to section on

interviews

N.A

Mandatory for all

cases

Refer to section

on interviews

14

Budget

Analysis

Mandatory

Refer to section on Budget

analysis

Mandatory

Refer to section on

Budget analysis

Mandatory for

Loan amounts

greater than

Rs 50000.

Refer to section

on Budget

analysis

Mandatory

Refer to section on

Budget analysis

15

Repayment

Track

N.A

Freedom Loan:

§ Minimum 6

months as evident by

bank statements or

Statement of account

from previous

financier.

§ Loan should be

running or not closed

earlier than 6 months

from the date of

1. 1.

Minimum

4 months

for

Auto/Sales

Finance

2. 2. 9

months for

PL

3. 3. 14

For existing

borrowers:

Minimum 8MOB

on sales finance

loan

Minimum 12 MOB

on auto loan from

us or other finance

company

For new borrowers:

12months track on




application.

§ PDC and ECS

based repayment to be

considered.

Debt Consolidation:

§ Credit card to

be in existence for a

minimum of 1 year.

§ Expiry on the

card to be greater than

3 months from the date

of application.

§ Last 2 months

statements to be

analyzed.

Suvidha customers:

§ Salaried: 3

months salary credit in

a/c with minimum

salary credit of Rs

3500 pm.

§ In Self-

employed: No bounce

in last 6 months and

monthly average

balance of 3500/- in

the last 6 months.

Mobile phone

subscribers:

§ Minimum 3

months billing

statements with an

average monthly

billing of Rs 800/-

months for

pro credit

§ No

EMI

bounces in

the last 3

months

§

Never

beyond

bucket 2

§

Loan

status to

current at

the time of

new loan

Mortgage

customers do

not fall into

repeat

customer

bracket. They

should be

treated as new

borrower if

they come for

a loan

PL.

9 months track on

housing loan

16

Loan emi

Eligibility

Between 10000&

50000(Rs 200000 as

per the PP) as per

budget analysis.

Debt ratio is capped at

70%

Freedom Loan: Max emi

capped at 150% of the emi

of track loan till loan

amount Rs 50000.

Debt burden capped at

70% for all loan amounts

greater than Rs 50000.

Subject to budget analysis.

Debt Consolidation : Max

As per the

existing

borrower

grid, on first

and second

enhancemen

t, for loan

amount less

than Rs

Max emi capped at

70% of the

monthly verifiable

income.




30000 for classic cards and

its variants .Max 50000 for

Gold card and its variants .

Max loan amount to be 1.5

times the credit limit or the

absolute loan Cap ,

whichever is lesser. Emi as

per the budget analysis

Mobile phone subscriber:

Max emi can be 300% of

the average billing amount

of last 3 months till loan

amount Rs 50000. Subject

to budget analysis

Debt burden capped at

70% for all loan amounts

greater than Rs 50000.

Subject to budget analysis

Suvidha customers: Max

emi can be 70% of salary

credit per month subject to

budget analysis

Suvidha Account holders:

For salaried applicants:

Last 3 months Citibank

Suvidha bank statements

with monthly salary credit

of not less than Rs 3500

for last 3 months. Debt

burden capped at 70%

For self employed

applicants: Last 6 months

Citibank Suvidha bank

statements with monthly

average balance of not less

than Rs 3500 . Debt

Burden capped at 70%

50000,emi

to be 150%

of previous

loan or as

determined

by debt

ratio cap

which ever

is higher.

· Debt

ratio capped

at 70% for

first

enhancemen

t & loan

amount

greater than

Rs50000/-

·

Following

categories

not eligible

a) a)

Collections

foreclosed

cases

b) b) Write

off cases

with write

off amount

more that

Rs 500

c) c) Any

case beyond

bucket 2

d) d) AHFS

e) e)

Mortgages/

Home Loan

customers

17

Debt Burden

Capped at 70% of

applicant‟s gross

disposable

Not applicable till loan

amount less than equal

to Rs 50000 where the

Not applicable

till loan amount

less than equal to

Capped at 70% of

the applicant‟s

gross disposable




verifiable income emi and loan amount is

calculated as per the

surrogate.

For all loan amounts

greater than Rs 50000,

debt burden capped at

70% of the monthly

verifiable income.

Rs 50000 where

the emi and loan

amount is

calculated as per

the Existing

borrower Grid.

For all loan

amounts greater

than Rs 50000,

debt burden

capped at 70% of

the monthly

verifiable

income.

Pls note: No debt

burden for loan

amounts greater

than Rs 50000

subject to certain

parameters, is

detailed in

separate section

verifiable income

18

Corporate

Lending

N.A

N.A

· If the

previous loan

on Sales

Finance and

Auto is in the

corporate

name, the PL

is offered only

to the Partner/

Director who

was the

authorized

signatory in

the previous

loan.

NA

19

Guarantor

N.A

N.A

N.A

N.A




Note:

Maximum finance amount till Rs. 200000 can be given subject to 70% debt burden cap,

with approval from Credit & Risk Director or his designees (with relevant approval

authority limits).




EXISTING BORROWER QUALIFYING GRID

The finance amount an existing customer is eligible for, is worked-out based on the

following grid :

There should be no EMI bounces in the last 3 months and the account to be

current as on date.

Never beyond bucket 2 (60dpd)

AHFS closures, write off cases with write off amount greater than Rs 500 and

accounts beyond bucket 2 are not eligible.

OLD LOAN

CD/TW PL AUTO Pro-Credit

N

E

W

P

E

R

S

O

N

Performance

(min months) -

4 9 4 14

M

A

X

E

M

I

Income Proof –

ACTIVE

50% of

monthly

income OR

150% of

EMI

(whichever

is greater)

LESS

current EMI

50% of

monthly

income OR

150% of EMI

(whichever is

greater) LESS

current EMI

Tenure <= 12

months –

50% of

monthly

income OR

125% of EMI

(whichever is

greater)

LESS current

EMI

Tenure > 12

months –

50% of

monthly

income OR

150% of EMI

(whichever is

greater)

LESS current

EMI

50% of

monthly

income OR

150% of

EMI

(whichever

is greater)

LESS

current EMI

(if there are

active

loans)




L

O

A

N

A

L

L

O

A

N

Income Proof –

CLOSED/

FORECLOSED

50% of

monthly

income OR

150% of

EMI

(whichever

is greater)

50% of

monthly

income OR

150% of EMI

(whichever is

greater)

50% of

monthly

income OR

150% of EMI

(whichever is

greater)

50% of

monthly

income OR

150% of

EMI

(whichever

is greater)

No Income

Proof –

ACTIVE

150% of

EMI LESS

current EMI

150% of EMI

LESS current

EMI

Tenure <= 12

months –

125% of EMI

LESS current

EMI

Tenure > 12

months –

150% of EMI

LESS current

EMI

150% of

EMI LESS

current EMI

No Income

Proof –

CLOSED/

FORECLOSED

150% of

EMI

150% of EMI

150% of EMI

150% of

EMI

M

A

X

A

M

T

Loan <=

12,000 –

350% of

previous

finance

amount OR

Rs 60,000

(whichever

is lesser)

Loan >

12,000 –

300% of

previous

finance

amount OR

Rs 60,000

(whichever

is lesser)

Foreclosed

after 6

months/net

disbursal after

9 months –

150% of

previous

finance

amount OR

Rs 1,50,000

(whichever is

lesser)

Performance

of 9 months –

75% of

previous

finance

amount OR

Rs 1,50,000

(whichever is

lesser)

Rs 1,00,000

Rs 1,00,000




Note: Existing customers who do not fall under the pre approved criteria mentioned

above are referred for decision to the Credit Unit for a revised look at the case.

Debt burden capped at 70% for all loan amounts greater than Rs 50000.

Any finance amount deviation from the grid needs to be signed off by credit officer.

Budget Analysis mandatory for all loan amounts greater than Rs50000

Any EMI deviation beyond 150% the previous emi (where no income proof is

available)or 70% of Debt Burden is a credit policy deviation, which has to be signed

off by Credit & Risk Director

Applicants who have foreclosed the sales finance loan post 4 MOB of performance

and personal loan post 6 MOB of performance only and loan not closed 6 months

prior to new loan application, are eligible for PL under EB GRID




DOCUMENTS REQUIRED

S.

NO

CRITERIA


EXISTING

BORROWER

PROGRAM

CORE

PROGRAM and

PL PLUS

PROGRAM

SURROGATE

PROGRAM

4.1

Income

proof

Standard

Income Tax

return

Form 16

Salary

Certificate

/slip from

Government

/reputed

company

Income tax

clearance

certificate

Advance Tax

Challan with

Computation

Intimation

under section

143 of the IT

Act

Audited

financials

Non-Standard

Pension

Certificate

Salary Credit

in bank

account other

The following can be

considered as

surrogate income

indicators

§ Last 6

months Bank

statements/track

record evidence

of repayment to

previous

financier (Min

6month MOB)

§ Debt

Consolidation -

latest 2 months

Credit Card

statement &

photocopy of

both sides of the

credit Card.

§ Mobile

phone

Subscriber-Latest

3 months mobile

bill

§

Payroll/salary

credits/ average

balance in

Suvidha a/c for

Suvidha

Latest Income

proof to be

obtained for

Loan amount

greater than Rs

50000/-

(Ref to list for

Core Program)




than Suvidha

Account.

Salary

Certificate

from a not

very known

and reputed

company

(Ref to Section on

acceptability

criteria for

Income

documents)

customers.

(Applicable for loan

amounts till Rs

50000).

Latest Income proof

to be obtained for

Loan amounts greater

than Rs 50000. Refer

to list for the Core

program

4.2

Address

proof

Standard

Ration Card

Utility Bills not older than 90 days from application date

Life insurance policy paid premium receipt of latest year

Passport

Voters ID Card

Registered Rent deed/company lease

House Allotment letter from the Government/Registered

societies

Property papers

Property registered deed

Non-Standard

Latest Credit card statements (last 2 months)

Bank Passbook

Gas bill

Declaration on company letter head for Government/Semi

government undertakings and known public limited

companies

Latest Bank statements ( last 2 months bank

statements)/Latest updated bank passbook

Mobile phone bill postpaid (last 2 months bills)

RC Copy of 4W in applicant‟s name

Driving License




S.

NO CRITERIA


EXISTING

BORROWER

PROGRAM

CORE PROGRAM

and PL PLUS

SURROGATE

PROGRAM

4.3 Identity

Proof

Standard

Passport

Voters ID

Driving License

Photo Credit Card

Pan Card

Employee Identity card issued by Government/ reputed

Public limited and Private limited companies

Employee State insurance medical cards with photographs

Medical Insurance cards from Public sector insurance

companies with photographs

Trade license/professional license (e.g sales tax no,

importer exporter code)with applicant‟s photograph

Armed Forces ID card

Non-standard

Photo attested from Bank

School/College Certificate showing Date of Birth

Form 49(a) for Pan Card application

Ration card with applicant‟s photo

Certified birth/marriage certificate

Bank passbook with applicant‟s photograph on the same

which is duly attested

Property registered deed with applicant‟s photograph

Employee photo ID card from recognized company(Any

company which is listed with NSE/BSE or any recognized

stock exchange of India)

Vehicle (car) registration certificate with applicant‟s

photograph

4.4 Photograph Mandatory for all

applicants

Mandatory for all

applicants

N.A

4.5 Bank

Statements

Bank statements for

the last 3 months

Bank statements for

the last 3 months

Not Applicable




from the date of

application. Cover

page of bank

statements/passbook

mandatory. Bank

account should be

in existence for

minimum 06

months from the

date of application

from the date of

application. Cover

page of bank

statements/passbook

mandatory. Bank

account should be in

existence for

minimum 06 months

from the date of

application

For income surrogate

program Bank

statement to reflect

repayment to prior

lender (to be atleast 6

months on books).

Not mandatory if

genuine track record

is provided

4.6 Loan

Application

&

Agreement

Fully completed and

signed by the

customer

Fully completed and

signed by the

customer

Fully

completed and

signed by the

customer

4.7 PDCs

ECS

For the entire tenor of the loan

To be issued from a maximum of 2 accounts

Signatures to match with the Loan agreement and the

application form

PDCs can be provided from current account of

proprietorship firm along with proprietorship

declaration. PDCs can also be provided from

partnership firm a/c or company a/c along with

partnership deed + NOC from partners /Board

resolution from company.

PDCs from a joint account (applicant-father, applicant-

mother, applicant-spouse) acceptable with signature

verification from the bank

ECS mandate to be completely filled in and

signed/stamped by the bank

Non-standard document and documents older than from as specified in table, can

be accepted by Credit Officers with specific approval authority on Personal

Loans.

Documents list will be updated from time to time with Credit and Risk Director‟s

approval.




ACCEPTABILITY CRITERIA FOR INCOME PROOF DOCUMENTS

S.No. Documents Acceptability Criteria

1 Income Tax

Return

§ Should be in applicant‟s name

§ Income tax return should be filed from the

same city as of loan application

§ Any one of last 2 years ITR is acceptable.

Only agricultural income or income from other

sources is not acceptable.

§ Income under the head

business/profession, Salary, others, property and

agriculture is acceptable and can be clubbed.

§ Income from short term and long term

gains and Interest income is not considered.

§ ITR should bear the ITO stamp with

ward/range number and date mentioned in the

same and the acknowledgement number written in

hand or hard coded in black

§ It should have been signed by the applicant

§ 2 years ITR‟s can be filed on the same date

in the same year

2 Form 16

§ Has to be latest.

§ It should bear original stamp of the

company and signed by the authorized signatory.

§ Company issuing a Form 16 should have

TAN number.

§ It should give details on gross salary ,

standard deductions, investments made for tax

rebate, tax deducted at source deposited in which

bank on what date

3 Salary Slip § Any one of last 2 months salary slip is

acceptable.

§ It should provide details on gross salary

deductions and net salary.

§ Computerized /statement in standard

format , does not require a signature.

§ Salary slip is never on a letterhead




4 Salary

Certificate

§ Salary certificate cannot be older than 90

days from the time of loan application

§ It should be signed and stamped by the

company.

§ It can be on the company letterhead or

plain stationery and is always addressed to “whom

so ever it may concern”.

§ Salary certificate of known

Government/Semi Government/Public limited

companies is acceptable

5 ITCC § Any one of last 2 years ITCC is

acceptable.

§ Has to be signed and stamped by the

Income tax office

6 Advance Tax

Challan

§ It has to be the latest (Last quarter‟s).

§ Should have the IT seal and details of

income tax paid.

§ Should have a computation attached

7 Intimation

under Section

143 of the IT

Act

§ Any one of last 2 years is acceptable

§ Should have the signature and seal of IT

office

8 Audited

Financials

§ Any one of last 2 years is acceptable

§ Balance sheet/Profit and loss statements

along with schedules are required

§ Auditor‟s report and auditor‟s stamp and

signature required on all statements

§ Corporate should have positive cash flow

9 Pension

Certificate

(Non-

standard)

§ Document from the Government body

from where the applicant has retired giving details

on pension entitlement along with last 3 months

Bank statements showing pension credit in the

bank

ACCEPTABILITY CRITERIA FOR IDENTITY PROOF DOCUMENTS

S No Documents Acceptability criteria

1

Passport





§ Should be valid for next 3 months from the

date of application

§ Should confirm applicant‟s identity through

the photograph, signature, Date of Birth and

addresses.

§ Check for the passport number and place of

issue

2

Voter‟s ID card


§ Photograph on the same should identify the

applicant

§ Check for father‟s/spouse name, applicant‟s

age and date of issue

§ Check for unique alphanumeric ID card no

on top of the photograph. For all cards issued from

1996 bears the same number on the backside of the

card.

§ Check for applicant‟s address and issuing

body‟s hologram seal and signature with year of

issue.

§ Please check that the printing has been done

on the back and front of the same paper, not two

papers joined together with the glue

3

Driving License

§ Should be in applicant‟s name, photograph

on the same should validate the customer identity.

§ Check for the validity date, applicant‟s

signature and issuing authority stamp

§ Check for DL no, father‟s name/spouse‟s

name and Date of birth.

§ DL not laminated should have the

photograph attested by the RTO. Laminated DL will

not have the stamp

4

Photo credit card

§ Should be in applicant‟s name.

§ Check for the photo and signature which

should be specific to the applicant

§ Check for the credit card no and validity

period.

§ Expiry date should not be another 3 months

from the loan application date.

§ Should have been issued at at least 1 year




from the loan app date

5

PAN card

Issued by Government of India to all with taxable/non

taxable income .It stands for Permanent Account

number .PAN no is a unique 10 digit alphanumeric

number mentioned on top of the card. The 5th

character

of the number is the first letter of the first name or the

last name. 4th

character is indicative of the kind of entity

who ah been issued the card. P stands for Individual,C

stands for company,H for HUF and F for partnership

firm.

Verify the applicant‟s photo, signature, Date of birth

,father‟s/spouse name with the information available

with us

6

Employee ID card

issued by

Government/semi

Government

companies/Armed

forces

Check for

Applicant‟s photograph, Employee Code.

Company Seal And Signature with validity period.

The same needs to be cross verified with application

form ,cpv and tvr done at the office

7

Employee state

insurance medical

card with photo

Check for the policy no, applicant‟s photo and validity

period.

8

Medical insurance

cards from Public

sector insurance

companies with

photo

Check for

The policy number

Applicant‟s photo should validate the individual.

Validity Period.

9

Trade

License/Professional

license

Check for

License code

Date of issue,

Type of business whether same correlates with

application form and verification,

Applicant‟s photograph on the same should validate

Non standard documentation

1

Ration card with

photo

Ration card should be at the applicant‟s current

residence address as given in the application form




Photograph should validate the applicant and should be

attested by gazetted officer/authorized signatory.

Pls keep in mind that photograph on the ration card can

only be of the Head of the Family

2

Bank passbook with

applicant‟s photo

attested on the same

Bank passbook to be in applicant‟s name. It should give

his name and account number

Photograph on the same should validate applicant and

have the seal and stamp of the bank. Seal stamp should

partly be on the photograph and the surface

3

Property registered

deed with

applicant‟s

photograph attested

Property registration documents on the stamp papers

bearing applicant‟s photograph and signature

4

Employee photo ID

card from

recognized company

Check company status

Check for applicant‟s photograph, name, designation,

employee code and company name and logo.

Some of the firms also mention the residence address on

the backside

5

Vehicle (car)

registration

certificate with

applicant‟s

photograph

RC to be in applicant‟s name and photo to validate the

applicant.

Please

TRANSACTION PROCESS – NEW BORROWER

Note:

N stands for No

Y stands for Yes

Personal Discussion and Budget Analysis has to be done by a PL Officer/Credit

Officer.




Final approval to be done by PL Officer/Credit Officer with specific approval

authorities as per credit authority delegation matrix.

Deviations in each credit step( negative cpv, negative tvr, negative dedupe etc)

can only be signed of by a Credit officer/Manager/Credit Head







TRANSACTION PROCESS – EXISTING BORROWER







ANALYSIS

&

INTERPRETATION

ANALYSIS & INTERPRETATION




LIMITATIONS:

Analysis has been made for each & every question given in the questionnaire. Mainly

analysis has been done for the sample of 50 covering Dharwad. This analysis represents

only of Dharwad. Therefore the findings will show the picture of Dharwad only.

To have an in-depth analysis of the sample, the sample of 50 has been classified into 3

groups by using household income as classification data. Therefore the analysis will not

only show the picture of the whole sample together but it will also show the picture of

each group separately within the sample.

On the basis of analysis, interpretation has been made for the whole sample as well as for

each group within the sample.

Type of questions:

Dichotomous questions: options given were:

Agree (it means customer is satisfied)

Don‟t agree (it means the customer is unsatisfied)

Can‟t say

Type of questions:

Balanced scaling questions: Here the customer is required to rate on a scale of 1 to 3

including 1 & 3.

Rating of 1 means that the customer is unsatisfied

Rating of 2 means that the customer is neither unsatisfied nor satisfied..

Rating of 3 means that the customer is satisfied.




CLASSIFICATION OF SAMPLE (TOTAL SAMPLE:50)

The whole sample of 50 has been divided into 3 groups, using household income as

classification data. Following are the 3 groups:

Group 1: It consists of customers having household income of less than 5000. The total

strength of this group is 15.

Group 2: It consists of customers having household income in the range between 5000

to 10000. The total strength of this group is 25.

Group 3: It consists of customers having household income of more than 10000. The

total strength of this group is 10.

In the following pages you will encounter some tables & pie charts for each of the topic

separately, being covered in the questionnaire. For each topic there will be one table

showing responses of each group separately & combined together which forms the total

sample of 50. Apart from this there will be 4 pie charts for each topic. While the first pie

chart will show the responses of all groups taken together where as the other 3 will show

the responses of each group separately.




1. Customers age group

0

1

2

3

4

5

6

18-25 25-35 35-45 45-55 55-65

G1

G2

G3

Maximum age group of the customers is between 25 to 35.

2. Income Group of the customers

Number

0

5

10

15

20

25

30

Below 5000 5000-10000 Above 10000

Number

maximum number of customers would fall in the income category of 5000-10000 p.m.




3. CUSTOMER SATISFACTION REGARDING OVERALL

SERVICE OF CITIFINANCIAL.

Ratings G 1

freq

G 1

per

G 2

freq

G 2

per

G 3

freq

G 3

per

Total

freq

Tot

al

per

1 8 53.33 3 12 1 10 12 24

2 5 33.33 10 40 2 20 17 34

3 2 13.33 12 48 7 70 21 42

Total 15 25 10 50 100

NOTE: ‘G’ means group, ‘freq’ means frequency & ‘per’ means percentage

CUSTOMER SATISFACTION-TOTAL

SAMPLE

24%

34%

42% 1

2

3

Only 42% of the total sample of customers is satisfied with the overall service of

Citifinancial.




customer satisfaction-group 1

54%33%

13%

1

2

3

In group 1, only 13% of the customers are satisfied with the overall service of

Citifinancial.


12%

40%

48%1

2

3

In group 2, the situation is somehow better than group 1 as here, about 48% of the

customers are satisfied with the overall service of Citifinancial.


10%

20%

70%

1

2

3

In group 3, about 70% of the customers are satisfied. This shows the higher income

customers are much more satisfied than the lower end customers as group 3 denotes

higher end whereas group 1 denotes lower ed customers.




4. CUSTOMER OPINION REGARDING CITIFINANCIAL’S

ABILITY TO KEEP UP ITS PROMISES

CUSTOMER OPINION-TOTAL

SAMPLE

74%

24%2%

1

2

3

It shows that about 74% of the total sample of customers agrees with the fact that

citifinancial was able to keep up its promises.

STATEMENT G 1

freq

G 1

per

G 2

freq

G 2

per

G 3

freq

G 3

per

Total

freq

Total

per

Agree(1) 6 40 22 88 9 90 37 74

Don’t (2)

agree

8 53.33 3 12 1 10 12 24

Can’t (3)

say

1 6.66 - 0 - 0 1 2

Total 15 25 10 50




customer opinion-group 1

40%

53%

7%

1

2

3

In group 1, only 40 % customers agree with the fact that citifinancial was able to keep up

its promises.


88%

12% 0%

1

2

3

In group 2, as against group 1, a staggering 88% customers agree with the fact that

citifinancial was able to keep up its promises.


90%

10% 0%

1

2

3

I group 3, about 90% customers agree with the fact that citifinancial was able to keep up

its promises. This again shows that high income group customers (group 3) are much




more satisfied with Citifinancial than the low income group customers (group 1), as 90%

customers of group 3 support the above statement as against a mere 40% customers of

group 1 who support the above statement.

5. CUSTOMER OPINION REGARDING CITIFINANCIAL’S

ABILITY TO MEET ITS CUSTOMERS’ NEEDS


SAMPLE

70%

28%2%

1

2

3

STATEMENT G 1

freq

G 1

per

G 2

freq

G 2

per

G 3

freq

G 3

per

Total

freq

Total

per

Agree(1) 5 33.33 21 84 9 90 35 70

Don’t (2)

Agree

9 60 4 16 1 10 14 28

Can’t (3)

Say

1 6.66 - 0 - 0 1 2

Total 15 25 10 50




It shows that about 70% of the total sample of customers agrees with the fact that

Citifiancial was able to meet their personal needs.


33%

60%

7%

1

2

3

In group 1, only 33% of the customers agree with the fact that Citifinancial was able to

meet their personal needs.


84%

16% 0%

1

2

3

In group 2, as against group 1, a staggering 84% of the customers agree with the fact that

Citifinancial was able to meet their personal needs.


90%

10% 0%

1

2

3

In group 3, about 90% customers agree with the fact that citifinancial was able to meet

their personal needs. This again shows that high income group customers (group 3) are




much more satisfied with Citifinancial than the low income group customers (group 1), as

90% customers of group 3 support the above statement as against a mere 33% customers

of group 1 who support the above statement.

6. CUSTOMER OPINION REGARDING CITIFINANCIAL AS A

TRUST WORTHY BANK


SAMPLE

74%

24%2%

1

2

3

It shows that about 74% of the total sample of customers agrees that Citifinancial is a

trustworthy bank.

STATEMENT G 1

freq

G 1

per

G 2

freq

G 2

per

G 3

freq

G 3

per

Total

freq

Total

per

Agree(1) 6 40 22 88 9 90 37 74

Don’t (2)

agree

8 53.33 3 12 1 10 12 24

Can’t (3)

Say

1 6.66 - 0 - 0 1 2

Total 15 25 10 50





40%

53%

7%

1

2

3

In group 1, only 40 % customers agree with the fact that Citifinancial is a trustworthy

bank.


88%

12% 0%

1

2

3

In group 2, as against group 1, 88% customers agree with the fact that Citifinancial is a

trustworthy bank.


90%

10% 0%

1

2

3




I group 3, about 90% customers agree with the fact that citifinancial is a trustworthy

bank. This again shows that high income group customers (group 3) are much more

satisfied with Citifinancial than the low income group customers (group 1), as 90%

customers of group 3 support the above statement as against a mere 40% customers of

group 1 who support the above statement.

7. CUSTOMER SATISFACTION REGARDING TIME TAKEN FOR

LOAN APPROVAL

Ratings G 1

freq

G 1

per

G 2

freq

G 2

per

G 3

freq

G 3

per

Total

freq

Total

per

1 - 0 - 0 - 0 - 0

2 3 20 5 20 - 0 8 16

3 12 80 20 80 10 100 42 84

Total 15 25 10 50





SAMPLE

0% 16%

84%

1

2

3

It shows that 84% of the total sample customers are satisfied with the time taken for loan

approval by Citifinancial.


0% 20%

80%

1

2

3

About 80% customers of both groups 1 & 2 are satisfied with the total time taken by

Citifinancial for loan approval.





0%

0%

100%

1

2

3

As against group 1 & 2, 100% customers of group 3 are satisfied with the total time taken

by Citifinancial for loan approval.

8. CUSTOMER SATISFACTION REGARDING EMI SCHEMES

OFFERED BY CITIFINANCIAL

Ratings G 1

freq

G 1

per

G 2

freq

G 2

per

G 3

freq

G 3

per

Total

freq

Total

per

1 2 13.33 2 8 - 0 4 8

2 3 20 8 32 2 20 13 26

3 10 66.66 15 60 8 80 33 66

Total 15 25 10 50





SAMPLE

8%

26%

66%

1

2

3

It shows that about 66% of the total sample customers are satisfied with the EMI schemes

offered by Citifinancial.


13%

20%

67%

1

2

3

In group 1, about 67% customers are satisfied with the EMI schemes offered by

Citifinancial.


8%

32%

60%

1

2

3

In group 2, about 60% customers are satisfied with the EMI schemes offered by

Citifinancial.





0% 20%

80%

1

2

3

As against group 1 & 2, about 80% customers of group 3 satisfied with the EMI schemes

offered by Citifinancial, indicating that they are the most satisfied among all groups, with

Citifinancial.

9. CUSTOMER SATISFACTION REGARDING INTEREST RATE

CHARGED BY CITIFINACIAL

Ratings G 1

freq

G 1

per

G 2

freq

G 2

per

G 3

freq

G 3

per

Total

freq

Total

per

1 10 66.66 14 56 3 30 27 54

2 5 33.33 8 32 6 60 19 38

3 - 0 3 12 1 10 4 8

Total 15 25 10 50





SAMPLE

54%38%

8%1

2

3

It shows a mere 8% of the total sample customers are satisfied with the interest rate being

charged by Citifinancial. & about 54% customers are unsatisfied with it.


67%

33%0%

1

2

3

In group 1, a high of 67% customers are dissatisfied with the interest rate being charged

by Citifinancial. The interesting thing is that not even a single customer is satisfied.


56%32%

12%

1

2

3




Here also the scene is not so good as 56% customers of group 2 are dissatisfied with the

interest rate being charged by Citifinancial.


30%

60%

10%

1

2

3

In group 3, though only 30% customers are dissatisfied but on the other had only 10% are

satisfied with the interest rate being charged by Citifinancial. This shows that majority of

the customers across all groups are dissatisfied with the interest rate being charged by

Citifinancial.

10. CUSTOMER SATISFACTION REGARDING PROCESSING

FEES CHARGED BY CITIFINANCIAL

Ratings G 1

freq

G 1

per

G 2

freq

G 2

per

G 3

freq

G 3

per

Total

freq

Total

per

1 10 66.66 14 56 3 30 27 54

2 5 33.33 8 32 6 60 19 38

3 - 0 3 12 1 10 4 8

Total 15 25 10 50





SAMPLE

54%38%

8%1

2

3

It shows a mere 8% of the total sample customers are satisfied with the processing fees

being charged by Citifinancial. & about 54% customers are dissatisfied with it.


67%

33%0%

1

2

3

In group 1, a high of 67% customers are dissatisfied with the processing fees being

charged by Citifinancial. The interesting thing is that not even a single customer is

satisfied.





56%32%

12%

1

2

3

In group 2 also 56% customers are dissatisfied with the processing fees being charged by

Citifinancial.


30%

60%

10%

1

2

3

In group 3, though only 30% customers are dissatisfied but on the other had only 10% are

satisfied with the processing fees being charged by Citifinancial. This shows that

majority of the customers across all groups are unsatisfied with the interest rate being

charged by Citifinancial.




11. NUMBER OF CUSTOMERS WHO FACED ANY

INCONVENIENCE FOR GETTIG IN TOUCH WITH ANY

CITIFIANCIAL PERSOAL LOAN OFFICER OR THE CONCERNED

AGENT FOR ENQUIRY REGARDING STATUS OF PROCESSING

OF LOAN

Out of a sample of 50, not even a single customer faced any inconvenience In getting in

touch with any Citifinancial personal officer or the concerned agent.




12. NUMBER OF CUSTOMERS FACED ANY PROBLEM FROM

CITIFINANCIAL DURING REPAYMENT

Out of the sample of 50 customers being surveyed, only 5 customers faced any problem

during repayment.

13. CUSTOMER SATISFACTION REGARDING SOLUTION GIVEN

TO THE PROBLEM REGARDING REPAYMENT BY

CITIFIANCIAL

In this, only the 5 customers who faced the problem were interviewed & all of them were

satisfied with the solution give by Citifinancial.




EPILOGUE

FINDINGS

1. From the analysis part one can interpret that customers across all groups in the sample

are satisfied with the service offered by Citifinancial except for the interest rate &

processing charges. We have already seen that a very high percentage of customers

across all groups in the sample are unsatisfied with the rate of interest & the processing

fees being charged by Citifinancial.

One of the major findings during the survey was that the major reason behind such

unsatisfaction by a majority of the customers is the high rate of interest being charged by

Citifinancial.




The customers are of the perception that the rate charged by Citifinancial is

comparatively higher than the rate charged by other institutions offering personal loans.

2. Except for the interest rate & the processing charges, customers are satisfied with all

other aspects of the service being provided by Citifinancial.

This signals a danger for Citifinancial as its customers are not satisfied with the interest

rate & processing charges. As many customers look out for only these two aspects, any

other institution offering personal loan at a low rate may come & takeaway the customers

of Citifinancial. This is now started happening with Citifinancial as its customers are now

turning towards its competitors, who are offering personal loans at a comparatively lower

rate.

3. Credit process at citifinancial is definitely strong enough to ensure that

delinquency is kept at the minimum.

MANAGERIAL IMPLICATIONS

1. During the course of study it was found that refund cheques of the

customers are delayed specially in upcountry locations. Therefore

procedures have to be fastened specially in case of refund cheques.

2. Though citinancial is catering to risky profile which is typically called B

and C segment, it can always bring out a service which is also relevant to

the premium segment.




3. Intense competition in the up country location in personal loan market is

very much likely with the entry of ICICI Janatha Loans, HDFC, Kotak

Mahindra, and Indiabulls. The competitors are again targeting the B and C

segment with less interest rates and Processing charges.

4. To counter attack the competition, citifianacial will have to design its

products in way that can very well fight with competition in terms of

interest rates an processing charges.

5. Also a strong sales team is the need of the hour. Focus shall be in not only

recruiting the team but retention is of prime importance.

CONCLUSION

According to the study personal loan market is growing along with the growth of middle

class. Therefore competition in all the customer segments is increasing. Competition is

also posed by local financiers or money lenders.

Though citifinancial gives loan upto Rs 2 lakh, for an initial borrower amount is limited

to maximum of 50,000 especially in up country location. This amount definitely needs to

be enhanced or other scheme has to be designed for premium segment.




The whole study shows how customers are satisfied with the personal loans offered by

Citifinancial except for the interest & processing fees part. But considering the risk in the

business, since it is an unsecured loan, rate of interest charged is justifiable.

Sound credit procedures and able sales force is definitely making citifinancial a number

one financial company in India.

BIBLIOGRAPHY

1. K P M Sundaram, Indian Economics

2. PL Handbook 2005, Citifinancial

3. Credit Policy 2005 , Citifiancial

4. www.citifiancial.com

5. www.indiainfoline.com

6. www.icici.com

7. www.hdfc.com

8. www.indiabulls.com

http://www.indiainfoline.com/

http://www.icici.com/

http://www.hdfc.com/

http://www.indiabulls.com/




QUESTIONNAIRE

(Circle the suitable options)

1. NAME:

2. AGE: A) 18-25 B) 25-35 C) 35-45 D) 45-55 E) 55-65

3. Rate the service provided by citifinancial

Satisfied Dissatisfied

1 2 3




4. Is citifianancial able to keep up its promise to the customer.

Agree Can‟t Say

1 2 3

5. Do you feel that citifianancial is a trust worthy fianancial institution.

Agree Can‟t Say

1 2 3

6. Rate your opinion regarding the time taken at citifinancial for your loan approval.


1 2 3

7. What is your opinion regarding Schemes offered by citifianancial.


1 2 3

8. Give your opinion about the interest rates charged by citifinancial


1 2 3

9. Give your opinion Regarding the Processing fee charged by citifinacial


1 2 3

10 . Did face any inconinience in contacting Officer at citifiancial.

A) Yes b) No

11. Did you feel any inconvenience for repayments at citifiancial

A) Yes b) No

12. Are you given satisfactory solution to your queries at citifiancial

A) Yes b) No




My entirely doings or workings

devoted to

Dnyaneshoo Bagawaan Vishnu

A project report on customer satisfaction and credit procedure study of citifinancial personal loans BY BABASAB PATIL

Education

credit delegation

post dated

monthly average

credit procedure

customer fully

debt burden

monthly verifiable

revisedrepris