A

PROJECT REPORT
ON

A STUDY OF CREDIT APPRISAL SYSTEM FOR

HOME LOAN
REFRANCE TO NAGAR NAGARI SAHAKARI
PATHASANSTHA
HADAPSAR BRANCH.

SUBMITTED BY
FARGADE SNEHAL VIJAY

SUBMITTED TO

SAVITRIBAI PHULE
PUNE UNIVERSITY

In the partial fulfillment of the requirements for the award of

Master of Business Administrative (MBA)

Through

(JSPMS)
JAYAWANTRAO SAWANT INSTITUTE OF MANAGAMENT & RESEARCH,
HANDEWADI ROAD, HADAPSAR, PUNE-28

DECLARATION

I,SNEHAL VIJAY FARGADE undersigned honestly declare that, this project

titledA STUDY OF CREDIT APPRISAL SYSTEM FOR HOME LOAN. Written and
submitted by me to the Savitribai Phule Pune University, Pune, in partial fulfillment of
Master Degree in Business Administration. The project work is original & conclusions drawn
herein are based on the data collected by myself.
To best of my knowledge, the matter presented in this project has not been submitted
for awards of any degree, diploma or membership either to this or any other institute or
university.

Date:
Place:

SNEHAL VIJAY FARGADE

ACKNOWLEDGEMENT
It gives me the great pleasure to express our deep sense of gratitude toward director
of Jaywantrao Sawant Institute of Management and Research, for her valuable guidance, inspiration
and wholehearted involvement during every stage of this project. Her experience, perception and
through professional knowledge, being available beyond the stipulated period of time for all kind of
guidance and supervision and ever-willing attitude to help, whose embellished ideas helped us to
blossom our endeavors without whose considerable approach and insight, this project would never
have been possible and have greatly influenced the timely and successful completion of this project.

I am thankful to manager and all staff members of NAGAR NAGARI SAHAKARI

PATHASANSTHA, HADAPSAR for their generous help and constant encouragement throughout the
work of this project. The faith and the confidence shown by them in me boosted my moral and
motivated me to perform better in developing this project.

I would like to thanks director of JSIMR and also like to thanks to prof. Vaishali
Nikam project guide of Jaywantrao Sawant Institute of Management and research for her help and
suggestion.

INDEX

CHAPTER

TITLE

NO.
Executive Summary
1

Objectives & Scope of the study.

Research Methodology.

Company Profile.

Theoretical background of the Topic selected.

Data Analysis & Data Interpretation.

Findings. Suggestion.

Conclusion.
.Bibliography
Annexure

PAGE NO

EXECUTIVE SUMMARY

The study shows that how the NAGAR NAGARI SAHAKARI PATHSANSTHA LTD gives the
loans to its customers. Credit appraisal is done to evaluate the credit worthiness of a borrower.
The credit appraisals for any organization basically follow these steps: Assessment of credit
need, financial statement analysis, and financial ratios of the company, credit rating, working
capital requirement, term loan analysis, submission of documents, NPA classification and
recovery.
The main aim of research is to find out the truth which is hidden and which has not been
discovered as yet. Though each research study has its own Specific purpose, we may think of
following broad categories:

To gain familiarity with a phenomenon or to achieve new insights into it.

To portray accurately the characteristics of a particular individual, Situation or a group.
To determine the frequency with which something occurs or with which it is associated
with something else.
It is a way to systematically solve the research problem. It may be understood as a science of
studying how research is done scientifically. In it we study the various steps that are generally
adopted by a researcher in studying his research problem along with the logic behind them.

CHAPTER NO-1

OBJECTIVES & SCOPE OF THE

STUDY.

Identify various parameter on basic of which credit appraisal is conducted.

To understand the reason for choosing these parameter.

To identify how score are given against each of these parameter.

Recommendations

CHAPTER NO-2

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

Research is the process which include defining and refining problems, formulating hypothesis
or suggested solution, collecting, organizing and evaluating data; making deduction &
reaching conclusion and at last, carefully testing the conclusion to determine whether they fit
the formulating hypothesis.

Definition:
According to Websters Twentieth century dictionary, Research is the careful, patient,
systematic, diligent, enquiry or examination in some field of knowledge undertaken to
establish facts or principles.

Objectives of research:

To verify &test existing facts & theory.

Analyze their sequence, inter relationship & causal explanations.
To analyze inter-relationship between variables.
To establish generalizations.
To make reliable predictions of events yet to happen.

Data collection methods:

There are two types of data collection methods:
1. Primary Data:
Primary data is a data which collected first time from the employees.
2. Secondary Data:

The data are collected from the annual reports maintained by the company for
the past 5 year viz.2010 to 2015

Data are collected from the companys website.

Books and journals pertaining to the topic.

Internet

Analysis of Data:

The study is qualitative in nature and not much primary data is there. So no analytical tools
have been used in the preparation. The report has been prepared after doing a qualitative
analysis of the data collected. Some bar charts, graphs and pie charts are used to make the
data more understandable to the reader.

Period of study
The period of the study at NAGAR NAGARI SAHAKARI PATHSANSTHA is for
two month.

Limitations:

a. The study restricted to only one branch.

b. The time constraint was a limiting factor, as more time required carrying out study on other
aspects of the topic.
c. Due to secrecy it is difficult obtain actual facts and figures of advances of branches.
d. Study limited to Home loans.
e. Its hard to get permission from the bank to get all data

CHAPTER NO-3

COMPANY
PROFILE

INTRODUCTION: