2.Declration and Content Sheet

8/16/2019 2.Declration and Content Sheet

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DECLARATION

I hereby declare that this summer project report is prepared by me, based on original study

conducted by me at Mahindra Finance Ltd. under the guidance of Mrs.Chaitra.K.S. , Faculty, Bapuji

Academy of Management and Research, Lakeie! "ampus, #.#.layout, $aangere.

Further I declare that this report is my original !ork and has not been submitted to any other uniersity

or Institute for the a!ard of any $egree or $iploma.

$ate% #mitha.&.B.

'lace% $aangere Reg. (o% )*MBA+)


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ACKNOWLEDGEMENT

A mammoth #ummer 'roject report on "redit Appraisal 'rocess !ith #pecial reference to

Mahindra Finance, of this nature calls for intellectual nourishment, professional help and encouragement

from many -uarters. I !ould like to epress my sincere gratitude.

Firstly, I !ould like to thank /THE ALMIGHTLY0 and MY PARENTS for haing sho!ered

their blessings on me.

I epress my obligations and gratitude to!ards Mahindra Finance, $aangere. For making the

arrangements for this incredible #ummer Internship 'roject in the first 'lace and for their inaluable

guidance, suggestions and confidence in me.

I !ould like to thank Dr. Sa!" Tri#h$%ananda, 'rincipal, for giing me this opportunity to

!ork on this project.

My heartiest thanks to Mrs.Chaitra.K.S& Faculty, guide for her able guidance, aluable time, co1

operation and inspiration !ithout !hich this project study !ould not hae been possible. I also thank all

my friends !ho hae directly or indirectly contributed in making my project successful 2 bringing this

report to the present form.

3heir contributions sho! in many suitable !ays and !ere indeed instrumental in achieing the

final results. Last but not the least I am indebted to all those !ho remained behind the scene but !ithout

their help this project !ould not hae been palpable.

$ate% #mitha.&.B.

'lace% $aangere Reg (o% )*MBA+)


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CONTENTS

CHAPTERS PARTIC'LARS PAGE N(.

454"63I74 #6MMAR8

) I(3R9$6"3I9( )

: I($6#3R8 'R9FIL4

:1;

+ "9M'A(8 'R9FIL4


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LIST OF TA)LES

LIST OF GRAPHS

Ta#*e N(. PARTIC'LARS Pa+e n$!#ers

3able ) Management of Mahindra Finance

3able : 3able sho!s loans and adances issued :+

3able + 3able sho!s percentage of ('A :;

3able * 3able sho!s percentage of yield on loans :

3able ; 3able sho!s total loans disbursed :@

3able < 3able sho!s total secured loans +)

3able 3able sho!s total unsecured loans ++

Ta#*e N(. PARTIC'LARS Pa+e n$!#ers

>raph ) >raph sho!s loans and adances issued :*

>raph : >raph sho!s percentage of ('A :<

>raph + >raph sho!s percentage of yield on loans :?

>raph * >raph sho!s total loans disbursed +

>raph ; >raph sho!s total secured loans +:

>raph < >raph sho!s total unsecured loans +*


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E,EC'TI-E S'MMARY

"redit Appraisal is a process to ascertain the risks associated !ith the etension of the credit

facility. It is generally carried by the financial institutions !hich are inoled in proiding financial

funding to its customers. "redit risk is a risk related to non repayment of the credit obtained by the

customer of a bank. 3hus it is necessary to appraise the credibility of the customer in order to mitigate

the credit risk. >enerally the credit facilities are etended against the security kno! as collateral. But

een though the loans are backed by the collateral, banks are normally interested in the actual loan

amount to be repaid along !ith the interest. 3hus, the customers cash flo!s are ascertained to ensure the

timely payment of principal and the interest.

It is the process of appraising the credit !orthiness of a loan applicant. Factors like age, income,

number of dependents, nature of employment, continuity of employment, repayment capacity, preious

loans, credit cards, etc. are taken into account !hile appraising the credit !orthiness of a person. 4ery

bank or lending institution has its o!n panel of officials for this purpose.

"redit is the proision of resources Csuch as granting a loanD by one party to another party !here

that second party does not reimburse the first party immediately, thereby generating a debt, and instead

arranges either to repay or return those resources Cor materialCsD of e-ual alueD at a later date. 3he first

party is called a creditor, also kno!n as a lender, !hile the second party is called a debtor, also kno!n asa borro!er.


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3he topic, /"R4$I3 A''RAI#AL 'R9"4## 9F MA=I($RA FI(A("40 demanded an

elaborate study of the presently follo!ed credit appraisal process of Mahindra Finance, make

suggestions regarding betterment of the !hole system if any, and finally base all the aboe on solid

research !ork.

I first tracked do!n the "redit Appraisal 'rocess of Mahindra Finance. I collected #econdary

data of ; years Annual Reports of MMF#L from :) to :);, Balance #heet, 'rofit and Loss account.

Based on that I tabulated all the data, analyEed them using Microsoft 4cel and finally made the

interpretation of the obseration.

At the end, I made some of my o!n suggestions.

Documents

2.Declration and Content Sheet