A Comparative Study of Retail Credit Schemes of Selected Banks

Abstract

Retail banking in India operates in a highly saturated and competitive market. As the name suggests retail banking has been able to touch the population in a big way. They offer a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels. The areas could be investment banking, life and non-life insurance, venture capital and asset management, retail loans such as home loans, personal loans, educational loans, car loan, consumer . durable loan, credit cards etc. It focuses on customization of products that are designed to meet the specific needs of the customers. In Indian banking sector, it were the private and the foreign banks to make headway in retail segment of banking. They realized the importance and the potential of the emerging great Indian middle class whose income levels were on the rise. The main objective of this research study is to make a comparative study of consumer credit schemes of selected banks. The research is based on primary data as well as secondary data. The comparative study of Consumer Credit Schemes has been made on ground of various variables such as purpose of taking loan, eligibility criteria, maximum loan amount, prepayment penalty, repayment period etc. It is concluded that the nationalized banks have better personal loan schemes except the amount of personal loan sanctioned by the private banks. Researcher recommends better discounts to borrowers especially to increase the loan schemes and to make them more attractive to the borrowers.