ON

STUDY OF AUTO LOAN IN

GUIDED BY
MR. RAHUL TIWARY
(TERRITORY MANAGER IN HDFC BANK)



SUBMITTED BY
SUKHDEV VERMA
B.B.M. VTH SEM.
097536
2

ACKNOWLEDGEMENT

This is not work oI individual but a number oI persons who are directly
and indirectly helped in its preparation. So it is my duty to express my
gratitude to those who have helped and assisted me in giving Iinal shape
to his report.
I am extremely proud to express my heartiest thanks to the proI.
incharge K. Shanti Swarup Ior providing summer training letter, which
has given to the great opportunity my training in proper way
I am Ieeling honored in bestowing my deepest gratitude to my training
guide to Mr. Rahul Tiwary (Territory Manager oI Auto Loan in HDFC
Bank) Ior kind co-operation.
This project work is not only accomplished due to my hard work and
devotion but also due to encouragement, inspiration and enlightenment
oI my guide, Iaculty, Iamily, Iriend and well wisher who helped me
during all the moments oI troubles and triumphs. I am hearty indebted
Ior the co-operation.


SUKHDEV VERMA


DECLARATION


I do declare that training Report entitled 'Study oI Auto Loan Ior the
HDFC Bank Sanjay Place, Agra is my own work done under the
supervision and guidance oI Mr. Rahul Tiwary.

I Iurther declare that to the best oI my knowledge and belieI this report
is totally the result oI my hard work and regularity and contain the true
knowledge.




SUKHDEV VERMA



TABLE OF CONTENTS
Sr No. Contents Page No.
1 Bank ProIile 5
i. Background 6
ii. Business ProIile 9
Introduction oI the topic 11
iii. Auto Loan 12
iv. ew Car Loan 1
v. Requirements Ior new car loan 16
vi. ligibility and income criteria 17
vii. Document 19
viii. Terms and conditions 22
ix. &sed car loan 2
x. Requirements oI used car loans 26
xi. ligibility and income criteria 27
xii. Documentation 29
xiii. Terms and Conditions 2
3 quated monthly installments (MIs) 5
4 Rate approval 6
5 Project analysis 9
6 SWQT analysis oI the bank
7 Conclusion 1
5







BANK PROFILE
6

Background of HDFC Bank
The Housing Development Finance Corporation Limited (HDFC) was amongst the
Iirst to receive an in principal approval Irom the reserve bank oI India (RBI) to set
up a bank in the private sector. In 199 the bank was incorporated in august 199
in the name oI HDFC Bank limited, with its registered oIIice in Mumbai, India.
HDFC Bank commenced operations as a scheduled commercial bank in January
1995.
Promoter
Since its inception in 1977, the corporation has maintained a consistent and healthy
growth in its operation to remain the market leader in mortgages. Its outstanding
loan portIolio covers well over a million dwelling units. HDFC has developed
signiIicant expertise in retail mortgage loans to diIIerent market segments and also
has a large corporate client base Ior its housing related credit Iacilities. With its
experience in the Iinancial markets, a strong market reputation, large shareholder
base and unique consumer Iranchise. HDFC was ideally positioned to prompt a
bank in the Indian environment.
Business Focus
HDFC banks mission is to be a world class Indian bank. The objective is to build
sound customer Iranchises across district businesses so as to be the preIerred
provider oI banking services Ior target retail and wholesale customer segments,
and to achieve healthy growth in proIitability, consistent with the banks risk
appetite. The bank is committed to maintain highest level oI ethical standards,
proIessional integrity, corporate governance and regulatory compliance. HDFC
bank business philosophy is based on Iour core values operational excellence,
7

customer Iocus, product leadership and people.
Capital structure
The authorized capital oI HDFC bank is Rs.5 crore (Rs..5 billion) the paid
up capital is Rs.9.9 crore. The HDFC group holds 22.2 oI the Banks equity
and about 19.5 oI the equity is help by the ADS depository (in respect oI the
banks American depository shares ADS issue). Roughly 1.7 oI the equity is
held by Ioreign institutional investors (FII) and the bank has about 19.
shareholders. The shares are listed on the stock exchange (Bombay stock exchange
and the national stock exchange.) The banks American depository shares are listed
on the ew York Stock xchange (YS) under the symbol "HDB".
Distribution Network
HDFC bank is headquartered in Mumbai. The bank at present has an enviable
network oI over 5 branches spread over 22 cities across India. All branches are
linked on an online real time basis. Customers in over 12 location are also
serviced through telephone banking being a clearing settlement bank to various
leading stock exchanges , the bank has branches in the centers where the SBS
have a strong and active member basis. The bank also has a network oI about over
15 networked ATMs across these cities moreover. HDFC Banks ATM network
can be accessed by all domestic and international visemaster card visa
electronmaestro and American express creditcharge cardholders.
Technology
HDFC bank operates in a highly automated environment in term oI inIormation
technology and communication system. The entire banks branches have online
connectivity, which enables the bank to oIIer speedy Iunds transIer Iacilities to its


customers. Multi-branch access is also provided to retail customers through the
branch network and automated teller machines (ATMs).
The bank has made substantial eIIorts and investments in acquiring the best
technology available internationally. to build the inIrastructure Ior a world class
bank in terms oI soItware , the corporate banking business is supported by Ilex
cube , while the retail banking business by Iin ware, both Irom l-Ilex solutions ltd.
the system are open scalable and web-enabled.
The bank has prioritized its engagement in technology and the internet as one oI its
key goals and has already made signiIicant progress in web-enabling its core
businesses in each oI its businesses. The bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and
build market share.
Awards and Accolades
Over the years, HDFC Bank has received recognition and awards Irom various
leading organizations and publications, both domestic and international.
In June 25, HDFC Bank won Asian money magazines Best Domestic
Commercial Bank Award 25" Ior India.
The bank was awarded. The Asian Bankers "xcellence In Retail Banking Risk
management Award For 2"Best Domestic bank In India 2.
In may 2 the bank also won the ':Operational xcellence in Retail Financial
Services-India "award as part oI the Asian bankers xcellence in Retail Financial
Service Program 2.
Closer home, HDFC bank was selected as the "Best Bank in India Ior the second
consecutive year in 2 by Business Today.
9

BUSINESS PROFILE
HDFC bank caters to a wide range oI banking services covering both commercial
and investment banking on the wholesale side and transactional branch banking on
the retail side. The bank has three key business segments'.
Wholesale Banking Services
The bank`s target market is primarily large, blue -chip manuIacturing companies in
the India corporate sector and to a lesser small & mid-sized corporate and agri-
based business.
For these customers the bank provides a wide range oI commercial and
transactional banking services including working capital Iinance trade services
transactional services cash management etc.
The bank is also a leading provider oI structured solution which combing cash
management services with vender and distributor Iinance Ior Iacilitating superior
supply chain management Ior its corporate customers.
It is recognized as a leading provider oI cash management and transactional
banking solutions to corporate Customers mutual Iunds stock exchange members
and banks.

Retail Banking Services
The objective oI the retail bank is to provide its target market customers a Iull
range oI Iinancial products and banking services giving the customer a one -stop
window Ior all his, her banking requirements.
1

The product are backed by world-class service and delivered to the customers
through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, et Banking and Mobile Banking.
The bank also has a wide array oI retail loan products including Auto Loans
against marketable securities Personal Loan and Loan Ior Two Wheelers.
HDFC Bank was the Iirst bank in India to launch an international. Debit Card in
association with VISA (VISA lectron) and issues the MasterCard, Maestro debit
card as well. The bank launched its credit card business in late 21.
The bank is also one oI the leading players in the merchant acquiring business with
over 2, point oI sale (POS) terminals Ior debit\credit cards acceptance at
merchant establishments.
Treasury
Within this business, bank has main products areas-
O Foreign xchange & Derivatives,
O Local Currency Money
O Debt Securities and quities.
With the liberalization oI the Iinancial markets in India corporate need more
sophisticated risk management inIormation advice and product. These and Iine
pricing on various treasury products provided through the bank`s treasury team.
To comply with statutory reserve requirements the bank is required to hold 5 oI
its deposits in government securities.
The Treasury business is responsible Ior managing the market risk on this
investment portIolio.
11




INTRODUCTION
TO
THE TOPIC
12

Introduction to the Topic
Study Of Auto Loan
Meaning
Lending oI Iunds to the constituents mainly traders business and industrial
enterprises constitutes the main business oI the banking company.
The major portion oI a bank s Iunds is Iunds is employed by way oI loans and
advances which is the most proIitable employment oI its Iunds.
The major part oI bank income is earned Irom interest and discount on the Iunds so
lent.
'Finance may be deIined as the provision oI money at the time when it is required'
Definition
"Auto Loans means a credit Iacility where the money is disbursed in the beginning
mostly in one stroke and later on only recoveries in the Iorm oI installments take
place in the accounts"
HDFC Bank oIIers wide variety oI Loans Products to suit Your requirements
Coupled with convenience oI networked branches over 15 ATMs and Iacility oI
-channels like internet and mobile banking select any oI Our loan product and
provide your details online and our representative contact you Ior getting loans.
HDFC Provides diIIerent types oI loans to his customers and other people whose
wants to get the loan.
The diIIerent types oI loans are given by bank are given below-
1. Home-Loans
2. Auto Loans
. Personal Loans
1

. Two-wheeler Loans
5. Commercial Vehicle Loans
6. Loans Against Security
7. Loans Against Shares
. Loans Against Property
9. Construction quipment Loans
1. Medical quipment Loans
The diIIerent types oI loans that are not given by bank are-
1. Agriculture Loans
2. ducation Loans
Approved Models & Rate of Interest (ROI)
Standard - 14.5 (ROI)
Mahindra Scorpio Bolero, Maruti Versa etc.
Middle - 13.75 (ROI)
Zen, Fiat Palio, Indica, Santro, Tata Sumo, Wagon R, Ford ikon, Maruti Ritz, Fiat
Punto etc.
Premium - 13.5 (ROI)
steem Bolero, Opel AstraCorsa, Ford, Ikon Mistubishi, Lancer, Honda city,
Accent, Indigo, Tata SaIari, Siera, Fiat Sienna, Toyota Qualis, Skoda, Hyundai
Sonata, Ford Mondeo,Toyota Corrola Camry, Honda Accord etc.
Luxury - 1.50 (ROI)
Mercedes, Benz, Pajero, BMW, Landrower, Discovry, Porsche etc.

1




NEW CAR LOAN








15

New Car Loan
ver looked longingly at a stick brand new car oI a Iriend or a neighbor? Would
like to buy your own but shudder at the thought oI all the money involved?
You have spent a lot oI time thinking about the make model and colour oI your car.
ow you don`t have to spend a movement more than necessary to bring it home.
Just get in touch with us Ior a car loan to buy a new car and see how simple the car
buying experience can be HDFC Banks Car Loan Scheme is the most convenient
way to get a loan Ior year new dream car.
The HDFC Bank is the on one Iinancier Ior car loans in the country, Tie-ups with
all leading automobile manuIacturers to ensure the best deals, Flexible Schemes &
quick processing.
Advantages of New Car Loans Services
O Speedy processing-within hours.
O Covers the widest range oI car and multi-utility vehicles in India.
O Whatever car you choose, we Iinance you up to 9 oI its invoice value
Flexible repayment options 12 to 6 months period.
O Attractive car loan plans among the lowest interest rates.
O Special rates Ior HDFC Bank account holders.

16




REQUIREMENTS
FOR NEW CAR
LOAN

17

Requirements for new car loan
Eligibility And Income Criteria
For Salaried individuals
O Minimum age oI applicant-21 years
O Maximum age oI applicant at loan maturity: 5years
O Minimum employment 1 year in current employment and minimum 2 year
oI employment.
O Minimum annual income: Rs. 1 net annual income.
O Telephone: must at residence
For Sale-Proprietor/Self Employed -
O Minimum age oI applicant: 21 years
O Maximum age applicant at loan maturity :65 year
O Minimum employment at least three years in business
O Minimum annual income net proIit Rs 6. p.a. Ior standard cars and Rs
1.. p.a. Ior mid-sized and premium cars
O Telephone: must at residence
For Partnership Firms
O Minimum income net proIit Rs 6 p.a. Ior standard cars and Rs
1,, p.a. Ior mid-sized and premium cars.
O Minimum turnover: Rs .5 lacs.
O Telephone: one phone at least at business and at residence oI the loan
executing partner.

1

For Public/Private Limited Company
O Limited companies should have been in existence Ior at least 2 years.
O Minimum income net proIit Rs 6, p.a. Ior standard cars and Rs
1,. p.a. Ior mid-sized and premium cars.
O Minimum turnover: turnover Rs ,5 lacs.















19

Documentation For New Car
The set oI documents will diIIer Irom case to case depending on the constitution oI
the borrower and type oI security being Iinanced.
For Salaried Individuals
O Application Form
O Income ProoI Latest salary slip oI 2 months with latest Iorm 16.
O Address ProoI-Ration Card, Driving License, Voters Card. Telephone Bill,
lectricity Bill, LiIe Insurance Policy.
O Identity ProoI- PA Card, Voters ID Card, Driving License.
O Bank statement (6months)Ior prooI oI Bank Account Continuity.
O Photographs
O Post Dated Cheques (According to Tenure)
For Sale-Proprietor
O Application Form
O Income ProoI latest 2 years income Tax Return with Computation Pan
Card.
O Address ProoI Ration Card, Driving License, Voters Card, Telephone
lectricity Bill, LiIe Insurance Policy.
O Identity ProoI Pan Card, Voter ID Card, Driving License
O Bank statement (6months) Ior prooI oI Bank Account Continuity.
O Photographs
O Post Dated Cheques (According to Tenure)

2

For Partnership Firms
O Application Form
O Income ProoI latest 2 year income Tax Return with Computation PA
Card -Latest 2 years ITR oI the Iirm`s Balance sheet & ProIit and loss A\C
Ior one year.
O Address ProoI Ration Card, Driving License, Voter Card, Telephone
Bill lectricity Bill, LiIe Insurance Policy.
O CertiIied copy oI partnership deed oI the Iirm.
O 2 letter head oI partnership Ior the partner authorization.
O Bank statement oI Iirm ( months).
O Firm`s PA Card
O Photograph oI sighed partner
O Post Dated cheques-
PDC s can be accepted Irom partnership Iirms Ior Individual partner with the
Iollowing additional Documents
O &ndertaking cum authorization by the partnership Iirm to issue PDCs For
loan repayment oI an individual partner oI the said Iirm signed by all the
partners.
O Declaration cum authorization request Iorm the individual partner to the
partnership Iirm to issue PDCs on behalI oI the partner Ior loan repayment
signed by the borrowing partner.



21

For Public Private Limited Company
O Income ProoI latest 2 years income Tax Return with Computation PA
Card Latest 2 years ITR oI the Iirm`s Balance sheet & ProIit and loss Ac
Ior one year.
O Address ProoI- Ration Card, Driving License, voter Card, Telephone Bill
lectricity Bill, liIe Insurance Policy.
O CertiIied true copy oI memorandum oI association oI company Board
resolution copy.
O 2 letter head oI company Ior Authorization.
O uarantor`s photograph ( Ior Pvt. Ltd. Company only)
O Post dated cheques (according to tenure)
ote
O All the documents PHOTO COPY accepted.
O All the photocopies should be compulsory selI AttachedSelI Signed by all
diIIerent categories persons.
Importance of Documentation
O Proper Documentation.
O Helps in identiIying the borrower.
O Helps in identiIying the security.
O Serves as a documentary evidence oI the transaction.
O nables the bank to enIorce its rightsecurity in a court oI law or
administrative authority Ior recovery oI its dues.
O Cash can also be deposited at any oI the bank branches.
O Late payment charges- in cash payment is not made by the due date a late
payment Iee oI 15 maximum oI Rs. 5 will be levied.
22

Terms and Conditions
Repayments
O Repayment tenure ranges Irom 1 year to 7 years Ior new car loans. 6 Years
and 7 years loans are available Ior speciIic models.
O You may change the tenure oI the loan beIore the loan is disbursed. The
interest rate & MI would change accordingly.
O The repayments due dates are 2
nd
& 7
th
oI every month and would depend
on the date oI disbursement. Payment due dates cannot be charged.
O You can make the payments through the post dated cheques (PDS s).
O Repayment option through Direct Debit Mandates is also available Ior all
HDFC Bank account holders.
O Option oI repaying through CS is also available in selected cities.
O Payments through cash oI credit cards are not accepted.
O You may change the PDC s in case your bank account is changed.
O A nominal Iee oI Rs. 75- (swap charge) would be charged Ior exchange oI
cheques.
O A Iull pre payment oI the loan is accepted. Part pre payment is not allowed.
O Service tax will be charged as applicable.
O We charge pre payment Iee oI Rs on the cut standing principal amount
service tax will be charged as applicable.



2

Guarantor Loans
In the event oI applicant not meeting any oI the eligibility criteria the loan
application can be processed under the Iollowing conditions-:
O The guarantor should meet all applicant criteria.
O Acceptable relationships are-:
-Individual proprietorship: Spouses Parent & Children
-Partnership Firm: Partners
-Private \ Public Limited company: Directors.
Unverified Income Programme
O Applicant who does not Iile their income tax return can still get a HDFC
Bank auto loan up to 75 oI the car value with-:
-Property ownership prooI
-Six months bank account statement.
Schemed Offered
There are special schemes which are launched Irom time to time in association
with the manuIactures and the dealers.

2





USED CAR LOAN

25

Used Car Loan
Today used oI reliable quality and good value Ior money are readily available
HDFC Bank &sed Car Loans puts you in the driver`s seat Flexible options are
available Ior most models at competitive interest rates and quick approvals.
What's more? HDFC Bank also helps you select good quality used cars and even
value them. We make it possible Ior you to get what you want when you want it
and at a price you always wanted.
Advantages of our Used Car Loans Services
O You can choose any car manuIactured in India within a certain age.
O Choose Ilexible loan repayment schedules.
O et up to Iinance oI the value oI the car
O Repay in easy installments oI 12 to months
O Avail oI the lowest interest rates.
O II you are an HDFC Bank account holder we have got special beneIits Ior
you.

26



REQUIREMENTS
FOR
USED CAR LOAN

27

Requirements for used car loan
Eligibility and Income Criteria
For &sed Car
For Salaried Individual
O Minimum age oI applicant - 21 years
O Maximum age oI applicant at loan maturity- 6years
O Minimum employment: 1 year in current employment and minimum 2
years oI employment.
O ross household income i.e. including income oI the spouse Rs 1..
net annual income.
O Telephone : necessary at residence
For Self- employment /Sole-Proprietor
O Minimum age oI applicant: at loan maturity 6 years
O Minimum employment at least years in business
O Telephone necessary at residence
For Partnership Firms
O Minimum income Rs 6, P.a.
O Minimum turnover: Rs .5lacs
O Telephone ; landline at oIIice and at residence oI the loan executing partner
Post paid mobile phone oI three month vintage acceptable in case oI
landline at only one place.

2

For Private \Public limited company
O Minimum income Rs 6. P.a.
O Telephone Landline at oIIice
Trusts
O Minimum income: Rs 6, P.a.
O Telephone: landline at oIIice and at residence oI the loan executing partner
post paid mobile phone oI three month vintage acceptable in case oI
landline at only one place.












29

Documentations For The Used Car
The set oI documents will diIIer Iorm, case to case depending upon the constitution
oI the borrower and type oI security being Iinanced.
For Saralied Individuals
O Application Iorm
O Income prooI -salary certiIicate on employer's letterhead (salary slip attested
by the employer computerized pay slip TDS (Iorm 16)Irom employer Ior the
latest Iinancial year )
O Address prooI -ration card, driving, voter card, telephone bill, electricity
bill,liIe insurance policy.
O Identity prooI -PA card , voter ID card , driving license.
O Bank statement (6 months) Ior prooI oI bank account continuity.
O Photographs
O Post dated cheques (according to tenure)
O Valuation report
For Sale - Proprietor
O Application Iorm
O Income prooI -latest 2 years income tax return with computation PA card
O Address prooI -ration card, driving license, voters card, telephone bill,
electricity bill, liIe insurance policy.
O Identity prooI -PA card, voters ID card, driving license
O Bank statement (6 months) Ior prooI oI bank account continuity
O Photographs
O Post date cheques (according to tenure)


O Photocopy
O valuation report
For Partnership Firms
O Application Iorm
O Income prooI- Latest 2 years income tax return with computation PA
card- latest 2 years ITR oI the Iirm`s balance sheet & proIit and loss Ac Ior
one year (income proIit aIter tax depreciation partner's salaries
interest on partner's capital)
O Address prooI -ration card, driving license, voter card, telephone bill
electricity bill, liIe insurance policy.
O CertiIied copy oI partnership deed oI the Iirm.
O 2 letter head oI partnership Ior the partner authorization.
O Bank statement oI Iirm ( months).
O Firm`s PA card.
O photographs oI partner.
O Post dated chaques-
PDC's can be accepted Irom partnership Iirms Ior individual partner with the
Iollowing additional documents-
-undertaking cum authorization by the partnership Iirm to issue PDC's Ior
loan repayment oI an individual partner oI the said Iirm, signed by all the
partners.
-declaration cum-authorization request Irom the individual partner to the
partnership Iirm to issue PDC's on behalI oI the partner Ior loan repayment
signed by the borrowing partner
O photocopy oI R.C. & insurance
O valuation report
1

For Public / Private Limited Company
O Income prooI - latest 2 years income tax return with computation PA card
latest 2 years ITR oI the Iirm`s balance sheet & proIit and loss Ac Ior the
one year.
O Address prooI -ration card, driving license, voter card, telephone bill,
electricity bill, insurance policy.
O certiIied true copy oI memorandum oI association oI company board
resolution copy.
O 2 letter head oI company Ior authorization.
O guarantor's photograph (Ior pvt ltd. company only)
O post dated cheques (according to tenure)
O photocopy oI R.C. & insurance
O valuation report
ote-
O all the documents PHOTO COPY accepted
O all the photocopy's should be compulsory selI attachedselI signed by all
diIIerent categories persons.






2

Terms And Conditions

Loan Amount
O We Iinance maximum up to oI the assessed value oI the vehicle.
O The loan amount also depend s on the car model. Higher loan amounts are
available under speciIic enhanced income eligibility criteria.
O Minimum loan amount Ior used car loan is Rs 5,.
Loan Period
1-5 years Ior selI-employed 1-7 years Ior salaried.
Age of Vehicle
At the maturity oI the loan vehicle should not be more than years old.
Rates and Fees
O We oIIer most competitive interest rates in the industry.
O Interest rates depends on car model loan tenure customer & location
Processing Fee IL File charge -IL
Pre -Payment
O Facility Ior prepayment with small charges allowed aIter halI the tenure oI
the loan is over.
O Four close charges - at rest oI the outstanding principle amount.



Mode
O You can deposit your re-payment cheques at any oI the HDFC Bank
branches ATM centers or at the cheque drop boxes conveniently (located
across your city.)
O Cash can also be deposited at any oI the bank branches.
O Late payment charges.
-In cash payment is not made by the due date a late payment Iee oI 15 oI
the minimum amount due subject to a minimum Rs 15 and a maximum oI
Rs 5 will be lived.
Repayments
O Maximum loan tenure Ior used car would depend on the age oI the car. The
car should not be more than years old the time oI maturity oI the loan.
O You may change the tenure oI the loan beIore the loan is disbursed.
O The interest rate & MI would change accordingly.
O The repayments due dates are 2nd & 7th oI every month and would depend
on the date oI disbursement. Payment due dates cannot be charged.
O You can make the payments through the post dated cheques (PDCs).
O Repayment option through Direct Debit Mandates is also available Ior all
HDFC Bank account holders...
O You may change the PDC s in case your bank account is changed.
O A nominal Iee oI Rs 75\-(swap charge) would be charged Ior exchange oI
cheques..
O We charge pre payment Iee oI Rs on the outstanding principal amount
service tax will be charged as applicable.
O We charge Rs 25-per bounced cheque.


Guarantor Loans
O In the event oI applicant riot meeting any oI the eligibility criteria.
O The loan application can be processed under the Iollowing conditions.
O The guarantor should meet all applicant criteria.
Acceptable relationships are-:
O Individual proprietorship- Spouses Parent & Children
O Partnership Firm- Partners.
O Private Public Limited Company: Directors.
Unverified Income Programme
O Applicant who does not Iile their income tax return can still get a HDFC
Bank auto loan up to 75 oI the car value with-:
-Property ownership prooI
-Six months bank account statement.
Schemed Offered
There are special which are launched Irom time to time in association with the
manuIactures and the dealers-For detail contact customer care center or nearest
branch or enquire through email
The Bank cannot provide loan for some person
O Policeman
O Lawyer
O Bar owner
O Cable operator
O Taxi driver
5

Equated Monthly Installments
In the loan re-payment process the customer repays the loan in equated monthly
comprising principal amount & the interest.
Three MIs are in the post dated cheque oI security post dated cheques in the
Iavour oI HDFC Bank.
In the case oI repayment oI loan m the term oI MI interest will be charged as
reducing basis.
For example-
Suppose you have taken a loan oI Rs 1,, Ior one year and aIter Iirst month
you have paid an MI oI Rs 1, oI this. Rs 9 go towards paying the
principal amount and Rs 1, goes towards paying the interest.
During the second month your outstanding principal is Rs 91, so Ior Rs
1,,. thereIore in the second month only Rs.91 will go towards paying the
interest and the rest oI MI will go towards reducing your principal. This
calculation will be done each month
MIs are calculated using the Iollowing Iormulae-



Where-
r Rate oI interest I.e. CIRR (see on rate approval)
n Tenure oI the loan
6

Rate Approval
Rate approval is also the main part oI loan process. In this we describe two types oI
rates-
O Business Internal Rate OI Return (BIRR)
O C&STOMR internal Rate OI Return (CIRR)
Business Internal Rate Of Return
Business IRR is that rate oI return, which is maintained by the HDFC Bank, or that
oI interest which is received by the HDFC Bank.

7

BIRR ACCORDING TO PER LAKHS EMIS
BIRR 1 Yrs 2 Yrs Yrs Yrs 5 Yrs 6 Yrs 7 Yrs
. 62 9 11 225 21 172 159
.25 651 5 12 26 225 175 1561
.5 66 51 15 2 27 1766 1572
.75 67 52 16 259 219 1775 155
9. 6 55 157 27 269 179 1597
9.25 69 55 167 22 272 11 169
9.5 7 556 17 29 2 11 162
9.75 71 566 19 25 296 125 16
1. 719 577 2 2516 217 1 16
1.25 729 57 211 2527 212 15 167
1.5 79 59 222 25 21 162 162
1.75 7 6 2 255 21 17 16
11. 75 619 2 2561 2155 16 1697
11.25 76 629 255 257 2167 199 171
11.5 77 6 267 25 21 1911 1722
11.75 77 65 27 2596 219 192 175
12. 797 661 29 26 22 196 17




Customer Internal Rate Of Return
Customer IRR is that rate oI return that is pay by the customer or we can say that it
is bear by the customer.
Customer IRR is decide mainly on these basis-
O Dealer subvention
O DSA subvention
O ManuIacturer subvention
Dealer Subvention
These are the monetary discount given by dealer to their Customer. This amount is
automatically deducted Irom customer s interest amount and thus CIRR come
down. This subvention is deducted Irom the dealer payment.
DSA Subvention
HDFC Bank gives 5 oI Loan amount as pay out to their channels except direct
sales team (DST). They use some part oI this payout in the Iorm oI DSA
subvention with the help oI these subvention CIRR comes down.
Manufacturer Subvention
ManuIacturer companies provide this subvention with the help oI this subvention
we adjust CIRR. In Iew cases this subvention deducted Irom the dealer payment.
This subvention Irom time to time and company sets subvention according to their
targets.

9





PRO1ECT
ANALYSIS


Sowt Analysis Of The Bank
Strengths
O Capture large market in auto loans.
O Proper utilization oI men power.
O Products are highly demanded in the market.
O Services are good.
O The bank executives should develop a healthy relationship with the
Merchant and customers, which will be an additional advantages oI bank.
Weaknesses
O It is new and private bank.
O They are capturing only urban areas.
O Bank is not doing any advertising other side other bank are more Iocus on
advertising.
O Bank should not opens more branches in &P.
Opportunities
O Large number oI customer
O Feature is bright
O Bank comes in the Iield oI insurance and international debit card
Threats
xistence oI other banks. This is limited bank and consumer is not invested in
private Iirms.

1




CONCLUSION


2

CONCLUSION
When I conclude this report .I Iound in the present scenario, car is not Just a luxury
thing but it step down and become our basic need as this is the basic need may
Iinancial institution, corporate housed, bank and new dimensions oI Iinancial
market oI a source oI Iinance.
Here are some oI the arguments Iavoring a Iurther event or development that
could-:
Performance
As this report belong to HDFC Bank. I can easily concluded that HDFC Bank
capture the 7 to 75 at the auto Iinance. When we are talking about the Agra
city attracting oI people towards car in the previous Iive years is increasing rapidly.
Last year about 7 oI total car sold is being Iinanced.
In this Iield HDFC Bank play the pivot role 7 oI the total Iinance market is
being captured by the HDFC Bank this is being done because oI powerIul and
strengthens channel oI HDFC Bank.
When we talk about the process oI auto Iinance in HDFC Bank it take less
document as compared to the other and the processing time is also less car near
about only a single day; due the eIIicient working oI credit processing unit oI
HDFC Bank.





Bright Future
As the globalization place is an important role in our economic structure. This is
given a new dimension oI our market. loblization giIts auto Iinance market in
India. Finance market reach their hypes because oI new corporate houses include
there selI in this market and to attract the customer they provide us easy and low
documentation process. To attract the customer having low rates oI interest is
biggest strategy.






BIBLIOGRAPHY


5

BIBLIOGRAPHY
Territory manager oI Auto loan in HDFC Bank - Mr. Rahul Tiwary
O www.hdfcbank.com
O www.wikipedia.com