Retail lending is a typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so. The Retail lending environment today is changing fast. The changing customer demographics demands to create a differentiated application based on scalable technology, improved service and banking convenience. Higher penetration of technology and increase in global literacy levels has set up the expectations of the customer higher than never before. Increasing use of modern technology has further enhanced reach and accessibility.
The present project attempts to create awareness about different types of loan lending products; to identify the exact needs of the customers and finding a best suitable product; to guide and help the customer for approaching the bank; to get the maximum possible amount for customer; to increase the customer satisfaction level and to find the awareness of people about different loans and to offer the suggestions based on findings.
This study has been conducted purely to understand retail lending. The study is restricted to three banks based on comparative analysis. Detailed study of the topic was not possible due to limited size of the project. There was a constraint with regard to time allocation for the research study i.e. for a period of 45 days. Suggestions and conclusions are based on the limited data.
Without a sound and effective banking system in India it cannot have a healthy economy. The Banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market, the customers have more choice in choosing their banks .A competition has been established within the banks operating in India, by the stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The basic reason for which the loans are given to customers is to help the customers in satisfying their needs. So different kinds of loans are given to the customers by various bankers in order to help the customer in satisfying their various needs. Loans and deposits constitute an important or major part of any banking or financing business, and the profit made by a bank or non-banking financing companies mainly depends upon the spread and non interest income of that particular bank or company. In order to enhance its profit will offer different kinds of loans with attractive lending terms.
The study was conducted to know about the Fundamentals of the retail loans and to know about the policies, procedures and practices to study about the portfolio management of various loans i.e. personnel, auto and housing loans.