INTRODUCTION OF CREDIT APPRAISAL

It is the process by which the lender assesses the credit worthiness of the

borrower. It revolves around character, collateral capability and capacity.

It takes into account various factors like income of the applicants, number

of dependents, monthly expenditure, repayment capacity, employment

history, number of years of service.
Credit

appraisal is a process of determining the eligibility of a person too

giving various loans adopted by banks & various financial institutions.

The

eligibility of a person depends on credit worthiness

Every

bank has its own & different criteria to satisfy itself on credit

worthiness or eligibility of borrower.

LITERATURE REVIEW
Author

Description

1)Dr. Ram Jass Yadav Credit appraisal is a process of collecting related

7, July 2013 information of customers and projects to undertake
risk assessment exercise by the bank prior providing
any loans & also checks the technical, economical &
financial viability of the project proposed.
2) V. M .V. Subba Rao The researcher gave two views
5 July 2009 1) Narrow view- the monitoring starts only after the
advance is disbursed, (ii)Broad view- at the time of
conducting credit investigation of the borrower and
continue in all other stages of credit .
3) Eleanor Charles
Say that centralized function of the appraiser to
3 September 1995 grant the loan and virtually every loan applicant will
have to rely on an appraisal to set a value on the
property against which the loan is to be made.

CONTINUE...
4) Kanungo, S.Sharma
25 January 2006

have conducted a study to evaluate the efficiency

of decision support system (DSS) for credit
management. credit appraisal has become an
integral sub-function of the Indian banks.

5) Linbo
9 January 2004

He provides two important information on the bank

efficiency in terms of profit creation related to risk of
those banks. The relationship between liquidity risk
and loan-to-deposit ratio was examined

6) Hsiu -Kwang
Observe that sound credit policy would help improve
2march 1969 prudential oversight of asset quality, establish a set
of minimum standards, and apply a common
language and methodology for measurement and
reporting of nonperforming assets and loan.

INTRODUCTION OF KALUPUR COMMERCIAL COOP BANK

The bank had a very humble, but very inspiring beginning on 5th December

1970. The Bank is a professionally managed Financial Institution a

benchmark of transparency, credibility and innovation.
The

Bank is founded by Late Shri Baldevbhai Dosabhai Patel, Late Shri

Gopaldas Shivlal Patel and Shri Arvindbhai Jivanlal Saheba.

The

Kalupur Bank has earned a name in co-operative Banking sector due

to its rich heritage, integrity and adherence to prudent banking practices,

technology advancement customized products and services.
Mission:Kalupur Bank will provide to its customers, premier banking

services through technology up gradation.

Vision: Kalupur Bank will strive to emerge as the most preferred cooperative Bank by 2020.

RESEARCH METHODOLOGY
1)Introduction: Research Methodology is a way to systematically solve
the problem& how research is done scientifically
2)Research Title:Credit appraisal system of kalupur commercial co op
bank
3)Data Collection:
1)primary source: informal discussion with staff members.
: survey of customer by questioner
2)secondary source:Books, Magazines, Journals, Annual report .
4) Research design: descriptive research design
5)Sample Size: 100 sample

CONTINUE.....
6) Sample unit: consumer of different age, gender and occupation.
7) Sample area: Ahmadabad
8) Statistical Tools & Techniques: One sample t-tes
9) objective:

To study the credit appraisal system of kalupur commercial

co.op bank.

To understand the credit appraisal procedure followed to

grant loan of bank.

To assess the total amount lend by the bank for few years
and assist the
bank in improving their financial performance.

CONCEPTUAL FRAMEWORK
Doctor mitra yojna:

purpose:

for construction of clinic

loan limit: 10 crore for term loan

25 lakh for cash credit

Interest rate: 11% to 11.5%

Guarantee: Guarantor possessing the tax
payer

Securities: Mortgage of finance

asset

CONTINUE..
Home loan:

purpose:

for construction of
bungalow

loan limit: Max 70.00 Lakh or 85% of

sale deed
whichever is lower.
Interest rate: 10.25% p.a.
( 10.00% p.a. in case of
woman beneficiary)
Guarantee: Age above 35 years with
regular, steady and proven
record o
income for last five years.

DATA ANALYSIS
Annual income
Factor

1)Below 5 lakh

30

2)5 lakh to 10 lakh

54.5

3) 10 lakh to 15 lakh

15.5

Type of account
Factor

1)Current account

20.9

2)Saving account

44.5

3)Recurring account

4.5

4)Fixed deposit account

30

CONTINUE...
Customer prefer loan
Factor

1)Public sector

4.5

2)Private sector

10

3)Schedule bank

15

4)co-operative

70

Type of loan
Factor

1)Vehicle loan

25.5

2)Housing loan

28.2

3)Education loan

26

4)Business loan

20

CUSTOMER HAVE INFLUENCE BY VARIOUS FACTOR TO

OPEN AC IN BANK
One-Sample Test

Test Value = 3

T
Advertisin
6.578
g
Brand
image
5.677

df

Sig. (2tailed)

Mean
Difference

95% Confidence
Interval of the
Difference
Lower

Upper

109

.000

.88182

.6161

1.1475

109

.000

.52727

.3432

.7113

1.085

109

.280

.10000

-.0827

.2827

Employee 1.068

109

.288

.12727

-.1089

.3634

Friends

-.360

109

.719

-.04545

-.2955

.2045

.436

109

.664

.05455

-.1934

.3025

Employer -2.917

109

.004

-.35455

-.5955

-.1136

Goodwill

Co worker

Conclusion
fail to reject
null
fail to reject
null
fail to reject
null
fail to reject
null
Reject null
fail to reject
null
Reject null

FOLLOWING COLLATERAL ASK FOR SECURE

THE LOAN
One-Sample Test
Test Value = 3
95% Confidence Interval
of the Difference
t
Mortgage

8.867

Hypothecati
on
7.157
Personal
guarantee

df
109

Sig. (2tailed)
.000

Mean
Difference
.80000

Lower
.6212

Upper
.9788

Conclusion
Fai to reject
Fai to reject

109

.000

.72727

.5259

.9287
Fai to reject

1.094

109

.276

.12727

-.1033

.3578

FINDING
During

my internship, I found that mostly all customers prefer less

paper work.
I

found from my survey that 60%of respondent were aware about

product and services provided by bank.

From

the t- test calculation it was found that friends and employer do

not influence respondent to open account in bank.

I

survey that most of the people preferred to avail loan from co-

operatives bank.
According

to the survey bank offered secure loan

SUGGESTION
The

process of loan should be easy to be understood by customers.

Give

special offer related to loan or F.D. to increase customers.

Customers

also expects from bank unsecured loan. So it should also

provide unsecured loan to customer.

The

bank should improve the facilities as compare to other private

bank.
Implement

some special scheme to improve customers

Encourage

the customers about new services of bank.

If

the customer is not able to pay loan than bank should give some little

time to pay loan.

LEARNING

Every

graduate wants go-getters. Given that internships are usually

not required in college, such experience will prove that you are proactive
about career development.
Internships

increase my professional confidence. By interning, I can

confront and overcome the fear of the unknown that I may have about
what its like to work in a professional environment
Internships

improve my communication skills. . By interacting with others

in a professional environment during an internship, you will have many

opportunities to become a better communicator.

LIMITATION

My

sample size was of 100 people, the information given by fewer

Respondent may not give actual fact.

The

sample that was collected is only from Ahmadabad and in particular

area only as K.C.C.B has too many branches

The

sample that was collected is only from Ahmadabad and in particular

area only as K.C.C.B has too many branches

Due

to less time of internship programmed, we have analyzed less market

conditions
Some

of the customers are less educated, so they cant give proper

response

CONCLUSION

The

Kalupur Commercial co-op .bank ltd is one of the biggest multistate

scheduled banks.
Working

with such a growing company which has great vision and

potential in future gave me an edge over my theoretical management

knowledge as well as practical knowledge
The

staff of kalupur Co-op bank is amazing staff. Because they are very

friendly with the customers, so if customers are facing any kind of

problem related to bank or finance than the staffs members are also help
them
They

also learn me about banking services. They maintain very good

relation with each other and with the customers

Thank you