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org © 2023 IJCRT | Volume 11, Issue 12 December 2023 | ISSN: 2320-2882

A Case Study On Awareness And Procedures Of

Loans And Advances
1
Revathi N
1
Assistnat Professor
1
Department of Management Studies, (MBA)
1
Ballari Institute of Technology and Management, Ballari, India

Abstract: The evidences and previous studies had stimulated the study to figure out how much awareness is
bestowed with the customers with regard to the kind awareness and process and procedures to avail various
types of loans and advances from banks for the differential purposes. The study emphasis on the key
knowledge of customers and their Aquent of sound knowledge of loans and advances, types of various
loans, availing different loans, interest rates and to know the pre-requisites required to avail loans and
advances in Manappuram Gold loan. The study encompasses the aspects of loans and advances , and gives
further scope to comprehend the study.

Index Terms - Loans, Advances, interest rate, awareness and knowledge

I. INTRODUCTION
Gold is one of the utmost cherished commodities athwart the board. In India, gold has significant social and
sentimental value. Since the dawn of time, it has been used as a security for loans. Previously, unorganised
players controlled the gold loan market. One of the Non-Banking Financial Companies (NBFCs) and banks in
India's fastest-growing lending segments right now is the structured gold loan firm. The organised sector has
grown at an unprecedented rate during the past ten years. The market expansion and financial efficiency of the
category have been adversely affected by recent regulatory updates from the reserve bank of India (RBI) and
other outside factors.
Manappuram Finance Limited. Manappuram Finance Ltd., frequently known as MAFIL (Manappuram
General Finance and Leasing), is an NBFC with headquarters in Valapad, Thrissur, Kerala. More than 190,00
people are employed by Manappuram, which has more than 4190 divisions blowout all over 25 states .
Loan refers to any sum that is rented or lent. If cash is lent, it is measured business debt; if it is loaned, it
is considered business receivable.

A loan is a type of lending in which a bank spreads credit to a borrower for a programmed amount of time
and a prearranged use. Loans are available for long-term liabilities since they are possibilities for future
payments that must be refunded over time periods longer than a year.
In other terms, a loan is when a banker advances a lump sum that cannot be paid in full or in part and that
the consumer has approval to withdraw later.

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The support around which all corporate activity revolves is profit. In spirit, banking is a business that deals
with money and credit. Banks invest their capital in a variety of ways to produce profits since, like all
businesses, they are profit-oriented. The majority of their dividend revenue comes from loans and advances

1. BHADRAPPA HARALAYYA (2021): According to the Indian Banking

Regulation Act act 1949, a bank is defined as "to accept the borrowing or depositing,
apparent return or other wise of public deposits and checks, money orders, orders or other
instruments". borrowing or investment agreement.” The main players in the Indian
financial market are banks, which includes lenders. The first group of NBFCs and trade
participants includes state-owned banks, investment banks, specialized financial
institutions, non-banking financial companies (NBFCs) etc. stockbrokers and includes
intermediaries such as lenders.2.

2. Nwaeze Chinweoke (2015): - Access to loans and advances from commercial companies
is essential for growth, for the production and agriculture of the Nigerian economy. This
study exam in the impact of bank loans and advances on various sectors of Nigeria's
economic growth fro m 1994 to 2013. The study was developed by the project after the
research and secondary data were taken from the Statistics Bulletin of the Central Bank
of Nigeria. In this research, multiple regression models were used using the least squares
method (OLS) to estimate hypotheses based on the research objective. Bank loans and
advances to agriculture and manufacturing are
used as variables, while real GDP (a representative of economic growth) is used to
make the difference.
3. Oziengbe Scott (2015):- Given the role of Microfinance Banks (MFLs) in poverty
reduction, jo b creation and overall economic growth (especially less efficient markets),
this article adopts the
4. ARDL A expansion and error based Bounds testing model. - Analyze using data to
explore f actors affecting loan repayment and progress by microfinance banks in Nigeria.
The time rang e is from 1992 to 2013. Evidence shows that deposits, shareholder funds,
liquidity ratios and inflation are the main determinants of microfinance lending. Customer
deposits have positive short- and long-term effects on loans and income from MFL, but
long-term effects are not significant. the Sri Lankan banking sector. different. The study
concludes that both macroeconomic factors and certain characteristics of banks can be
used to explain the level of non-performing loans. It shows that non-performing loans are
on the rise as banks do less business. There is also a relationship between loan-to-equity
and non-performing loans.

5. Tanu Aggarwal (2018): - The aim of this study is to compare various mortgage loan rates for
real estate and on the other hand analyze the impact influence of real estate success in Indian
public banks. most suitable model). According. affording to the best performance results of the
model, real estate promotion has little effect on public banks. In other words, public sector
companies have reduced their participation in the Indian real estate market.

6. Sushmitha, P. (2020):- Bank profile of Gramin Bank, Karnataka covering the past,
present and future of the banking industry. Banks play an important
significant role in the provision of various services. Banks have given loans and
received money in the past. However, many services facilitate of the bank have continued
in recent years. Due to the increasing competition, customers need to receive fast and
efficient service at affordable prices. Today, banks try to provide
timely and complete service to all their customers.

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www.ijcrt.org © 2023 IJCRT | Volume 11, Issue 12 December 2023 | ISSN: 2320-2882
7. CHAITRA, GR (2020):- This study titled "Retail Loans and Advances of Commonwealth
Ban k Limited" attempts to follow the evolution of retail loans through Commonwealth
Bank Limit ed research. The largest private bank in Kerala and one of the best in India is
Federal Bank, head quartered in Aruwa. Banks have influenced politics and commerce for
thousands of years. In the past, the main role of banks was to lend money to commercial
enterprises .Banks give businesses money to buy goods and get their money back with
interest when the goods are sold.

8. Tejaswini, G (2021):- The term ‘credit’ alludes to the sum obtained via one man or woman
from any other. The sum is within the Nature of credit and alludes to the whole paid to
the borrower. On this manner, from the view point of borrower, It’s miles ‘obtaining’ and
from the view factor of financial institution, it’s miles ‘loaning’. Credit score might be
regarded a ‘credit’ allowed where the coins are dispensed and its healing is made on a
later date. Its miles a Charge for a borrower. Even as giving advances, credit is given for a
clear cause and for a Foreordained length. Top rate is charged at the increase at concurred
rate and time spans. ‘Improve’ then again, is a ‘credit score office’ allowed by using
financial institution. Bank’s award propels usual.
9. Gopinath, V (2016):- The main purpose of this study is to better understand and analyze
the " LOANS AND ADVANCES" of "CHARTERED SAHAKARI BANK
NIYAMITHA" and take the necessary steps to avoid any problems. To achieve this goal,
analytical research work is us ed. Data is collected from annual reports. An important
limitation is that they did not provide all information about the company. Due to the
different ways of cooperation, there are some unclear information. The time limit is seen
as an important limitation as some of the above assumptions are used in the analysis.
10. William Abungu Onyango (2020): - The financial crisis and banking failure in Kenya is
mainly due to the increase in nonperforming loans. Therefore, this study examines the
impact of ban k-specific factors on non-performing loans in Kenyan commercial banks.
The study shows that the focus was on forty three (43) currently licensed companies
used in this study. This study used the Census to collect secondary data from financial data
from past years and other financial data from 2012 to 2016.

11. Ihtesham Khan (2017): - NPLs are an important part of the stability and profitability of
the banking sector. This study aims to evaluate the variables that may affect the NPL ratio
in the ban king sector in Pakistan. Size, return on assets, earnings per share, cash and
investments as a percentage of total assets, capital resources and dividend payments are
used as the measure of non- performing loans in banks in the study. Compilation of panel
data from 2006 to 2016 using an nual reports and State Bank of Pakistan data base .

12 . Anthony Wood (2018): - In Barbados, the banking sector is the main source of financial
influence. It is an important factor in payments, an important factor in stimulating domestic
savings, and an important factor in external financing of the economy. In 2008, when the
global financial crisis was experienced, the deterioration in the financial indicators of the
banking sector and the credit quality are the most important ones. In 2007, the ratio of
nonperforming loans to all loans reached a record low of 2.9% and rose to 12%.In 2012 it
was 9%. Due to the negative impact of nonperforming loans on the performance of
commercial enterprises, the reasons for nonperforming loans have been investigate d for
years. This study investigates macroeconomic and bank-specific influencing factors.

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OBJECTIVES
1. To study several types of loans and advances at Mana Puram finance limited
2. To analyse the awareness of loans and advances
3.To know the procedure of Granting Loans and Advances at MFL.
4.To study the Different Loans and Advances, Interest Rate
5.To Study the Pre-Requisites required to avail Loans and Advances at MFL.

SCOPE OF THE STUDY

1.The current study "ANALYSIS ON LOANS AND ADVANCES" is experiential and expressive in
character.
2.The study's concentration on the financing of the Manapuram gold loan.
3. The study, titled "Loans and Advances on Main Branch Manapuram Gold Loan Finance
Sandur," is based solely on information provided b
4. The Manapuram Gold Loan Bank and exclusively the operations of the Manapuram Bank
branch in Sandur.

METHODOLOGY
Empirical research is research that is based on observation and measurement of phenomena, as directly
experienced by the researcher. The data thus gathered may be compared against a theory or hypothesis,
but the results are still based on real life experience.
TARGET POPUATON
Sample unit : Sandur
Sample size : 55
SOURCE OF DATA
Data collection is one of the greatest critical workings of any research project because it controls the
final outcome. My approaches of using both primary and secondary to get the data will be useful for the
final analysis.

PRIMARY DATA
The first source of primary data was the annual report of the banks and the investors' registering.
Consultations with the representatives who provide useful data collection, books and general banking
information yearly report, etc. were held in order to study additional around the rules and regulations
leading loans and advances as well as other information.
SECONDARY DATA
To appreciate the financial situation, secondary data based on loans and advances were prepared.
Different rates of interest based on loans exported findings were noted. Through the procedure, inferior
bases are second hand to wrinkle the data. This data was used to make routine designs founded on the
interpenetration of interest rates.

DATA ANALYSIS AND INTERPRETATION

Gender

Table

No of respondents particulars Percentage

40 male 72.73
15 Female 27.27

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Graph

Chart Title

particular No of respondents Percentage

Interpretation:- In this survey we come to know how several of the male persons are known
about the loans and developments and 27 %of female are aware about the loans and advances.

what is the primary reason for taking out a loans and advances.

Table

Particulars No of respondents percentage

Debt consolidation 5 9.09
Home purchase 19 34.55
Vehicle purchase 13 23.64
Education expenses 11 20.00
Business expenses 7 12.73

No of respondents

Debt consolidation Home purchase Vehicle purchase

Education expenses Business expenses

what is the primary reason for taking out a loans and advances.

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Table

Particulars No of respondents percentage

Debt consolidation 5 9.09
Home purchase 19 34.55
Vehicle purchase 13 23.64
Education expenses 11 20.00
Business expenses 7 12.73

Interpretation:- In this questionary survey the 34.55% of customers are taken loans for the resolution
of home purchase and 23.55% of customer taken loans for the vehicle purchase purposes and 20.00%
of clienteles are taken loan for their children’s education purposes 12.73% of clients are occupied loans
for their business purposes.

what is the primary reason for taking out a loans and advances.

Table

Particulars No of respondents Percentage

Debt consolidation 5 9.09
Home purchase 19 34.55
Vehicle purchase 13 23.64
Education expenses 11 20.00
Business expenses 7 12.73

No of respondents

Personal loan Home loan Car loan Business loan Education loan No answer

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Interpretation:- In this questionary survey the 34.55% of customers are taken loans for the
resolution of home purchase and 23.55% of customer taken loans for the vehicle purchase purposes
and 20.00% of clienteles are taken loan for their children’s education purposes 12.73% of clients
are occupied loans for their business purposes.

Have you ever taken loans out a loans and advances from financial institution .

Table

particulars No of respondent Percentage

Yes 38 69.09
No 17 30.91

Chart Title

1 2 3

Interpretation:- In this survey 65% of customers are taken loans from financial institutions and
35% of customers are not taken the loans from the financial institution.

FINDINGS

1. In this survey we come to know how several of the male persons are known about the loans and
developments and 27 %of female are aware about the loans and advances.

2. In this questionnaire survey the 34.55% of customers are taken loans for the resolution of home
purchase and 23.55% of customer taken loans for the vehicle purchase purposes and 20.00% of
clienteles are taken loan for their children’s education purposes 12.73% of clients are occupied
loans for their business purposes.
3. In this survey the 36.36%of clienteles are occupied home loans and 34.55% of clienteles are
occupied personal loan and 10.91%of clienteles are occupied car loan and nearly clienteles are
occupied business loan and education loan.
4. In this survey 65% of customers are taken loans from financial institutions and 35% of
customers are not taken the loans from the financial institution.

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SUGGESTIONS

 The popular of accused thought they would be interested in applying for a bank-
provided personal loan.

 The common of accused thought they would like near pay in monthly installments.
 The mainstream of suspect thought they planned to use the loans within the next one to
two years.
 The widely held of plaintiffs assumed they preferred the loan segment's reduced
paperwork burden.
 Several opportunities are existing when it comes to loans and advances providing by
cooperative banks, founded on the unique policies and products of each bank.
 Here are some typical loan and advances sorts that you might discover at a cooperative
bank, nevertheless.

 It is always advisable to visit your local cooperative bank or checked their website for
definite data around the loan products they offer, eligibility requirements, interest rates,
and application procedures because the accessibility of these loans and advances may vary
from one cooperative bank to another.

 Preceding to subtracting or charging any financial rate, MFL must consult the customer.

CONCLUSION
Cooperative banks offer a wide range of loans and advances to provide to the diverse financial
needs of individuals, businesses, farmers, and students. These loans provide an accessible and
convenient financing option, often with competitive interest rates and flexible repayment terms.
It is significant to note that the specific loan foodstuffs, suitability measures, attention charges, and
application procedures may vary between cooperative banks. Therefore, it is advisable to directly
contact your local cooperative bank or visit their site for exhaustive evidence on the loans and
advances they offer.

• Hemple and Simonsson (1998)., Practice and Law of Banking, Swan Publication
Agra, Third Edition, 1991.

• Tanu agrval (1999), Urban Cooperative Banks Functions & Procedure,

Magnetic Publication, Bombay- 1987.

• Kennedy and Mill. (1990) “Theory and practices of Cooperation”, Meerut: Lall
Book Depot.

• www.mnappuram.com

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