CUSTOMER SATISFACTION in citi bank

1. EXECUTIVE SUMMARY
The project is on “CUSTOMER SATISFACTION REGARDING CITIFIACIAL PERSOAL LOANS”.
I was assigned south Bangalore where I was required to collect & analyze data from south Bangalore.
The research involved studying existing customers. It covered each and every aspect of personal
loan, which can affect customer satisfaction. The main objective of the study was to find out areas
where customers are not satisfied with the service offered by Citifinancial regarding personal loan.
I was required to collect data from existing customers, analyze it, interpret it & make
recommendations which can help Citifinancial to improve on areas where it is lacking & achieve
better customer satisfaction by focusing on such areas.
The report will first give you a brief about the research methodology, which I was supposed to use in
the study. After this you will come to know about personal loans & the current trends in personal
loans market in India. You will also get information on Citigroup & Citifinancial. Apart from this you
will come to know about how I analyzed & interpreted the collected data. I hope that you will find
this report interesting & will help you in conducting further studies on this sector.
CHAPTER-1

2. AIM OF THE STUDY
AIM OF THE STUDY
Personal loans market is growing in India and one should know about this sector. The future looks
good & one can make a good career in this sector.
Now you will ask one question, why I chose Citifinancial only, why not others? The main reason
behind choosing Citifinancial is that it is not the market leader Citifinacial is just a market follower. I
wanted to choose such a company that is growing like Citifiancial. Where I can help the company,
grow more, by helping it focus on such areas where it is lacking as compared to its competitors,
with respect to various aspects of personal loan. This will help the company grow more by satisfying
the customers in a better way through focusing on areas where it can achieve better customer
satisfaction.
All these things inspired me to do project on this area.

3. CHAPTER-2
DESIGN OF THE STUDY
DESIGN OF THE STUDY
THE PROBLEM: Citifinancial is witnessing below average industry growth with respect to its
personal loans. Despite having a good network of its branches & DSAs in cities where it is present, it
is witnessing a low growth as compared to its competitors.
OBJECTIVE: Citifinancial holds customer dissatisfaction as the main reason beyond low growth in
its personal loans. So, the objective of this study is to find out from the existing customers, whether
they are satisfied with the Citifinancial personal loans or not, where the study will cover customer
reaction towards each & every aspect of the product. The study will try to find out the areas where
Citifinancial needs to improve.
GEOGRAPHICAL AREAS: I was allotted south Bangalore where I supposed to cover areas such as
BTM, Koramangala, HSR layout, Audugodi, JP Nagar, Jayanagar, Banashankari & Basavanagudi.
SCOPE: The study covered each & every aspect of the customers. The study focused on customer
reaction with respect to the overall service and each & every aspect of the product such as interest
rate, EMI etc.

4. LIMITATIONS: Though the study has covered each & every aspect of customer satisfaction but it
has neglected customer-employee interaction, which contributes highly to the customer satisfaction.
Due to this, though the study may help in finding out the areas where Citifinancial needs to improve
with respect to product features but it will not help Citifinancial in deciding whether to train its
employees or not for deal in a better way with the customers.
DESIGN OF THE STUDY-RESEARCH METHODOLOGY
RESEARCH DESIGN:
The research was Exploratory where it tried to cover Who, Where, When, How & Why about the
existing customers of Citifinancial.
DATA COLLECTION:
Mainly two types of data were used for data collection viz:
Secondary data: The main source was the customer database, which was given by Citifinancial . It
was used to find out all general information about the existing customers such as their names, their
residential & official address & their phone numbers.
Primary data: The main source was the questionnaire, which was designed to collect all the primary
data such customer reaction towards all the aspects of the product.
RESEARCH TYPE:
The type of research used to collect primary data was Quantitative, where all the findings were
quantified to draw interpretations. On the basis of which conclusions were made. Telephonic
interview was used to collect data, where customers were interviewed for five to ten minutes over
the telephone.
DESIGN OF THE STUDY-RESEARCH METHODOLOGY
TYPE OF QUESTIONS:
To collect the primary data, a questionnaire was devised which consisted of:

5. Dichotomous questions: Having three options
Balanced scaling questions: Having three points on which the customers were required to rate.
Apart from this, Demographic based questions were there to collect data about the customers
regarding their names, age, income, occupation, household income, amount of loan & the number
of installments.
SAMPLING TECHNIQUE:
Stratified sampling was used to cover all types of customers on the basis of income.
SAMPLE SIZE:
I was required to collect a sample of 50 from the database given.
ANALYSIS:
Single Tabulation was used for arranging the collected data & for analyzing & interpretation
CHAPTER-3
PERSONAL
LOANS

6. PERSONAL LOANS
DEFINITIONS:
“An amount of money borrowed from a bank or other lender by an individual”.
“A loan based on a consumer's income, debt and credit history”
“Money lent to an individual by a financial institution for a specific personal purpose except buying a
house. One main difference between a personal loan and a home loan is that most personal loans
are unsecured”.
“A loan obtained by an individual for personal (as opposed to business or investment) purposes. A
personal loan may or may not be secured”.
“A loan that establishes consumer credit that is granted for personal use; usually unsecured and
based on the borrower's integrity and ability to pay”.
A personal loan is a lump sum which you borrow from a bank, building society or another lender. A
personal loan could be the best option for you if you are looking to borrowing money for between 1
and 5 years and is particularly ideal if you have other debts that you're looking to consolidate into
one loan to reduce your overall monthly payments.
The simplest explanation of the use of the word "personal" to describe these types of loans is that
the money that is borrowed is to be used for personal reasons. If the aim of the loan was to finance
the purchase of a home, that is a mortgage. If the purpose of the loan is to help a business to
expand, that is a business loan. If you are taking out a loan to fund something that will be for your
own personal use, or to help you out with personal issues, then that is a personal loan. The best way
to expand on this would be to look at what a personal loan could be used for.
PERSONAL LOANS
A personal loan is an amount of money offered, normally by lending institutions such as banks and
building societies, on the condition that it will be paid back at some later date. Personal loans are
available in a whole host of formats and can range from £500 upwards. The term of the loan is often
dependent on whether the lender requires security to be offered by the borrower and the size of the
regular repayments you wish to make.
Under most personal loan arrangements you receive a lump sum, equal to the amount of the agreed
loan and in return you agree to make regular repayments. These repayments are normally monthly
and cover both the interest due and the capital outstanding loan amount. If you have established the
loan as a 'repayment' type loan then the repayments will include an amount to pay off some of the
capital and reduce your outstanding debt. Payments are made throughout the term of the loan to
ensure that the total debt is repaid to the lending institution.
AMOUNT OF PERSONAL LOAN

7. Amount wise personal loans may range from 15,000 to 10, 00,000.
RATE OF INTEREST
Currently, interest rates across all banks are in range of 10% to 22%. The interest rate usually
depends on two factors:
Amount of loan: Higher the amount lower will be the interest rate & vice verse.
Type of loan: While secured loan carries lower rate where as unsecured loan carries higher rate.
PERSONAL LOANS
USES OF PERSONAL LOAN
The range of uses for the money is very wide indeed. Common uses include the purchase of a new
car, a holiday or the repayment (consolidation) of existing debt.
Frequently the lending institution will ask for details of the reason you require the loan. Although
the purpose of the loan may have little impact on their decision to grant the money, it can have
some influence on the maximum term of the loan.
It is more likely that larger sized loans, for purchases such as cars, home improvements etc. will
result in a longer repayment term. It is not uncommon for the purchase of a car to established with
a repayment term of 3 years whilst the term for home improvement loans can be for much longer
terms (sometimes as long as ten years).
SUITABILITY OF PERSOAL LOAN
If you are looking to borrow money over a period of less than ten years, whether you need the
money for a purchase or perhaps to repay existing debt, then a personal loan may be suitable for
your needs.
Personal loans are just another form of credit. If you are considering a personal loan to run
alongside other forms of personal credit such as overdrafts and credit cards, you must give careful
consideration to whether you will be able to afford the total of your regular payments. When
considering the situation it is wise to take into account your ability to pay were you unable to work
due to illness or should you lose your employment.
PERSONAL LOANS
ACCESSABILITY TO PERSOAL LOAN

8. There are hundreds of potential lenders willing to offer you the opportunity to borrow from them.
However the offer of finance does depend upon your ability to repay the debt and your previous
credit history. Those applicants that have had credit difficulties in the past can find it more difficult
to obtain access to a personal loan compared to those applicants that have a better credit history.
It is normally true that the better the credit risk you are, the easier you will find it to obtain a
personal loan. It is also likely that people who have the best credit histories will be offered the best
deals. This normally means a lower interest rate is charged or the repayment terms are longer.
DIFFERENCE BETWEEN PERSONAL & BANK LOAN
There isn't much of a difference between a bank loan and a personal loan. They are in essence the
same thing, in that you are borrowing an amount of money from a product provider that you will
repay at agreed intervals with interest added to the sum.
The difference is that a bank specifically provides a bank loan. A few years ago, the bank was one of
the only places a customer could get a loan, which is why people used to say they needed a good
relationship with their bank manager. Obviously, this isn't the case now, as building societies and
many other financial companies also offer loans.
MERITS & DEMERITS OF PERSONAL LOAN
MERITS DEMERITS
Quick High rate
disbursement of interest.
of loan.
PERSONAL LOANS
TYPES OF PERSOAL LOAN
Unsecured personal loan: Is a debt that you can acquire where you do not have to use any
specific collateral to back the loan. Usually, the people who would be eligible for this type of loan
would be people who do not own a home, or people with bad credit.
An unsecured loan will mean less risk to the person taking out the loan than a secured loan. This is
due to the fact that a person will not have to use their home as insurance for the loan. The negative
aspect of this is that due to the lack of insurance, the interest payments set will be higher, as the
loan provider will need to cover the added risk of not being able to get their money back. A positive
aspect of the unsecured loan could be that your application is processed a lot quicker, so you can
get hold of money more rapidly. This speed is due to the fact that your home will not need to be
valued to make sure your security is available. Another upshot of this is that you can submit an
application, get a reply and answer very quickly to your application, and just because you have
submitted does not mean you are under an obligation to take up the loan.
Secured personal loan: Is a loan that is specifically assigned for home owners. This is where the
home is used as collateral, which is a larger risk for a customer than an unsecured loan, because if
you fall into difficulties or are unable to repay the loan for any particular reason your home is at risk.
One of the most vital points to understand about a secured loan is that it is not best used as a
solution to debt problems, because it is even more important that you have budgeted properly to

9. cover the loan payments. Many people with debt problems have them precisely because they are not
good at budgeting to cover loan payments.
Secured personal loans could be taken out for various reasons. You could want to make home
improvements, for which you can borrow money secured on your home, as you are hopefully
increasing its value. Perhaps it could be for a debt consolidation loan, where you take out a loan for
an amount large enough to pay off several other debts for a longer period
PERSONAL LOANS
MARKET
IN
INDIA
PERSONAL LOANS MARKET IN INDIA
In recent times, personal loans market in India is witnessing a rapid growth. Over the year 2003-04
personal loans disbursement has grown by 40%. Consumer credit in India is currently growing at
around 45%-50% annually, and considering that the Indian economy is expected to grow at around
8% this year, demand for consumer loans including personal loans is expected to remain strong.
The growth is high in unsecured personal loans as compared to secured personal loans.
Following are some of the factors responsible for growth in personal loans market in India:
Falling interest rates: Interest rates have gradually fell form above 25% to below 20% across all
banks over the years.

10. Change in consumer behavior: Once customers hesitated to take loans from banks but now they
are looking at it from a positive angle.
Shift in focus of banks from corporate lending towards retail lending: Banks are now
concentrating more on retail loans including personal loans, home loans & auto loans due to the
growth in retail loans.
Positive demographics: There is rapid growth in urban population, who are most likely to take retail
loans. Apart from this middle class segment is growing, which account for about 70-80% of the total
loan seekers.
MAJOR PLAYERS: At preset ICICI Bank is the market leader having more than 30% market share in
personal loans market, followed by HDFC Bank. Apart from this there are several other banks
including Government banks, Private banks & MNC banks who are in the lead. In case of MNC banks,
Citifinancial tops the list with respect to total loan disbursements & in terms of market share. It is
followed by HSBC, Standard Chartered bank, ABN AMRO & others.
CHAPTER-4
CITIGROUP

11. CITIGROUP
LEGACY
Citigroup Inc., today's pre-eminent financial services company, with some 200 million customer
accounts in more than 100 countries, dates back to the history of Citibank, which began in 1812;
Travelers Life & Annuity, since 1864; Smith Barney, founded in 1873; Banamex, formed in 1884 as a
result of the merger of Banco Nacional Mexicano and Banco Mercantil Mexicano; and Salomon
Brothers, which dates back to 1910 and later merged with Smith Barney, a subsidiary of Travelers
Group at the time.
Other major brand names under Citigroup's trademark red umbrella include Citi Cards, CitiFinancial,
CitiMortgage, CitiInsurance, Primerica, Diners Club, Citigroup Asset Management, The Citigroup
Private Bank and CitiCapital.
FAMILY TREE
Citigroup is largely organized into four groups: Citigroup Global Consumer Group, the Global
Corporate and Investment Banking Group, Citigroup Global Investment Management, and Global
Wealth Management.
CITIGROUP
PRODUCT LINES
Global Consumer Group
Cards
o World’s largest provider of credit cards
o Third Quarter '04 Net Income of $1.267 billion
Consumer Finance
o World’s consumer finance leader
o Third Quarter '04 Net Income of $643 million

12. Retail Banking
o Citibank: highest-rated, leading global brand
o Third Quarter '04 Net Income of $1.225 billion
Global Corporate and Investment Banking Group
Capital Markets & Banking
o #1 underwriter of Combined Debt and Equity and Equity-related transactions
o Third Quarter '04 Net Income of $1.159 billion
Global Transaction Services
o Leading provider of transaction products; $7.3 trillion in assets under custody
o Third Quarter '04 Net Income of $285 million
CITIGROUP
PRODUCT LINES
Global Investment Management
Life Insurance & Annuities
o One of the fastest growing life insurers in the U.S with expanding international
presence
o Third Quarter '04 Net Income of $282 million
Asset Management
o A leader with $500.7 billion in assets under management
o Third Quarter '04 Net Income of $84 million
Global Wealth Management
Private Client Services
o A leader in managed accounts with $1.087 trillion in total client assets
o Third Quarter '04 Net Income of $195 million
Private Bank
o Offers widest range of services to more than 25,000 of the world’s most
successful and influential families
o Third Quarter '04 Net Income of $136 million
CITIGROUP

13. IN
INDIA
Citigroup opened its first office in India in 1902. Since then they have become one of India's most
diverse and recognized financial service providers operating in 25 offices and branches across 18
cities. Citigroup India has 5,000 employees nationwide. Their operations encompass a premier
global corporate and investment bank and a well-established consumer business under the Citibank
and CitiFinancial brands.
The global corporate and investment banking group provides a comprehensive range of financial
services including treasury management, transaction services, securities custodianship, foreign
exchange, fixed income and equities sales and trading, and corporate finance to corporate clients,
governments and financial institutions.
Citibank India is the country's leading retail bank with a history of innovation and customer service.
Today we are the largest issuer of credit cards and offer mortgages, personal loans, insurance, and
investment services for on-shore customers. Citibank India also provides banking services to the
international Indian community in 23 cities around the world.
CITIFINANCIAL

14. CITFINANCIAL
Since 1912, CitiFinancial has been helping people realize their financial goals and dreams. Headed
by CEO and President Harry D. Goff, CitiFinancial is a member of Citigroup, the world's largest
financial services provider.
They have more than 2000 offices in the United States and Canada. Each branch manager runs their
CitiFinancial office as if it is their own business, so loan decisions are made locally.
They provide home improvement loans, bill consolidation loans, money for tuition, vacation
getaways and unexpected expenses. They have a solution that helps you afford what you want or
need most in life. They’ll get you the money you need when you need it!
Products & Services:
Personal loans
Home loans
Auto loans
Citifinancial personal loan: It can be used to pay off your credit card bills, meet your
unexpected expenses or it can be used for education or travel purpose. At this time, CitiFinancial
Personal Loans are not available for business purposes. Their specialty is extending credit for
personal, family and household purposes.
Qualification criteria: CitiFinancial grants personal loans to people over age 18 who have
established credit and can secure the loan with personal property. Some established credit, like a
gasoline or store credit card, is necessary, and employment or other steady income is required. We
also make unsecured loans to homeowners. People just beginning to establish credit may be asked
to have another responsible adult co-sign for the loan.
CHAPTER-5

15. ANALYSIS
&
INTERPRETATION
ANALYSIS & INTERPRETATION
Analysis has been made for each & every question given in the questionnaire. Mainly analysis has
been done for the sample of 50 covering south Bangalore. This analysis represents only of south
Bangalore & not of whole Bangalore & rest of India. Therefore the findings will show the picture of
south Bangalore only.
To have an in-depth analysis of the sample, the sample of 50 has been classified into 3 groups by
using household income as classification data. Therefore the analysis will not only show the picture
of the whole sample together but it will also show the picture of each group separately within the
sample.
On the basis of analysis, interpretation has been made for the whole sample as well as for each
group within the sample.
Before jumping on to the conclusion, one should know the type of questions being asked & the
options being given, on the basis of which analysis & interpretations have been made.
Type of questions:
Dichotomous questions: options given were:
Agree (it means customer is satisfied)

16. Don’t agree (it means the customer is unsatisfied)
Can’t say
ANALYSIS & INTERPRETATION
Type of questions:
Balanced scaling questions: Here the customer is required to rate on a scale of 1 to 3 including 1 &
3.
Rating of 1 means ‘bad’ that is the customer is unsatisfied
Rating of 2 means ‘average’ that is the customer is neither unsatisfied nor satisfied also.
Rating of 3 means ‘good’ that is the customer is satisfied.
CLASSIFICATION OF SAMPLE (TOTAL SAMPLE:50)
The whole sample of 50 has been divided into 3 groups, using household income as classification
data. Following are the 3 groups:
Group 1: It consists of customers having household income of less than 15000. The total strength
of this group is 15.
Group 2: It consists of customers having household income in the range between 15000 & 25000
including both 15000 & 25000. The total strength of this group is 25.
Group 3: It consists of customers having household income of more than 25000. The total strength
of this group is 10.
In the following pages you will encounter some tables & pie charts for each of the topic separately,
being covered in the questionnaire. For each topic there will be one table showing responses of each
group separately & combined together which forms the total sample of 50. Apart from this there will
be 4 pie charts for each topic. While the first pie chart will show the responses of all groups taken
together where as the other 3 will show the responses of each group separately.
QUESTIONNAIRE
I, Sharanabasav Nandimath doing Masters in Business Administration, is
doing a study which is a part of the curriculum and is administered to know
“The Customer satisfaction in citifinancial personal loans”. I thank you in
advance for your time and cooperation in this study. I assure complete
confidentiality of all your responses.
Name : ___________________________
Occupation : ___________________________
1. Average family income per annum

17. < Rs 15000 , >15000 <25000 , > 25000.
2. Age group
20 - 30, 30 - 40, 40 - 50, > 50
3. How customer is satisfied with citifinance service provided?
1, 2, 3
Rating of 1 means ‘bad’ that is the customer is unsatisfied
Rating of 2 means ‘average’ that is the customer is neither unsatisfied nor satisfied also.
Rating of 3 means ‘good’ that is the customer is satisfied.
4. HOW IS CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO KEEP UP ITS PROMISES?
1, 2, 3
5. CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO MEET ITS CUSTOMERS’ NEEDS
1, 2, 3
6. CUSTOMER OPINION REGARDING CITIFINANCIAL AS A TRUST WORTHY BANK
1, 2, 3
7. CUSTOMER SATISFACTION REGARDING TIME TAKEN FOR LOAN APPROVAL
1, 2, 3
8. CUSTOMER SATISFACTION REGARDING EMI SCHEMES OFFERED BY CITIFINANCIAL
1, 2, 3
9 . CUSTOMER SATISFACTION REGARDING INTEREST RATE CHARGED BY CITIFINACIAL
1, 2, 3
10. CUSTOMER SATISFACTION REGARDING PROCESSING FEES CHARGED BY CITIFINANCIAL
1, 2, 3
ANALYSIS & INTERPRETATION
Q.No-3) CUSTOMER SATISFACTION REGARDING OVERALL SERVICE OF
CITIFINANCIAL.

18. Only 42% of the total sample of customers is satisfied with the overall service of Citifinancial.
In group 1, only 13% of the customers are satisfied with the overall service of Citifinancial.
In group 2, the situation is somehow better than group 1 as here, about 48% of the customers are
satisfied with the overall service of Citifinancial.

19. In group 3, about 70% of the customers are satisfied. This shows the higher income customers are
much more satisfied than the lower end customers as group 3 denotes higher end whereas group 1
denotes lower ed customers.
ANALYSIS & INTERPRETATION
Q.No-4) CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO KEEP UP ITS
PROMISES
It shows that about 74% of the total sample of customers agrees with the fact that citifinancial was
able to keep up its promises.

20. In group 1, only 40 % customers agree with the fact that citifinancial was able to keep up its
promises.
In group 2, as against group 1, a staggering 88% customers agree with the fact that citifinancial was
able to keep up its promises.
I group 3, about 90% customers agree with the fact that citifinancial was able to keep up its
promises. This again shows that high income group customers (group 3) are much more satisfied
with Citifinancial than the low income group customers (group 1), as 90% customers of group 3
support the above statement as against a mere 40% customers of group 1 who support the above
statement.
ANALYSIS & INTERPRETATION
Q.No-5) CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO MEET ITS
CUSTOMERS’ NEEDS

21. It shows that about 70% of the total sample of customers agrees with the fact that Citifiancial was
able to meet their personal needs.
In group 1, only 33% of the customers agree with the fact that Citifinancial was able to meet their
personal needs.
I group 2, as against group 1, a staggering 84% of the customers agree with the fact that
Citifinancial was able to meet their personal needs.
I group 3, about 90% customers agree with the fact that citifinancial was able to meet their personal
needs. This again shows that high income group customers (group 3) are much more satisfied with
Citifinancial than the low income group customers (group 1), as 90% customers of group 3 support
the above statement as against a mere 33% customers of group 1 who support the above statement.

22. ANALYSIS & INTERPRETATION
Q.No-6) CUSTOMER OPINION REGARDING CITIFINANCIAL AS A TRUST WORTHY
BANK
It shows that about 74% of the total sample of customers agrees that Citifinancial is a trustworthy
bank.
In group 1, only 40 % customers agree with the fact that Citifinancial is a trustworthy bank.
In group 2, as against group 1, 88% customers agree with the fact that Citifinancial is a trustworthy
bank.

23. I group 3, about 90% customers agree with the fact that citifinancial is a trustworthy bank. This
again shows that high income group customers (group 3) are much more satisfied with Citifinancial
than the low income group customers (group 1), as 90% customers of group 3 support the above
statement as against a mere 40% customers of group 1 who support the above statement.
ANALYSIS & INTERPRETATION
Q.No-7) CUSTOMER SATISFACTION REGARDING TIME TAKEN FOR LOAN APPROVAL
It shows that 84% of the total sample customers are satisfied with the time taken for loan approval
by Citifinancial.

24. About 80% customers of both groups 1 & 2 are satisfied with the total time taken by Citifinancial for
loan approval.
As against group 1 & 2, 100% customers of group 3 are satisfied with the total time taken by
Citifinancial for loan approval.
ANALYSIS & INTERPRETATION
Q.No-8) CUSTOMER SATISFACTION REGARDING EMI SCHEMES OFFERED BY
CITIFINANCIAL
It shows that about 66% of the total sample customers are satisfied with the EMI schemes offered by
Citifinancial.

25. In group 1, about 67% customers are satisfies with the EMI schemes offered by Citifinancial.
In group 2, about 60% customers are satisfied with the EMI schemes offered by Citifinancial.
As against group 1 & 2, about 80% customers of group 3 satisfied with the EMI schemes offered by
Citifinancial, indicating that they are the most satisfied among all groups, with Citifinancial.
ANALYSIS & INTERPRETATION
Q.No-9) CUSTOMER SATISFACTION REGARDING INTEREST RATE CHARGED BY
CITIFINACIAL

26. It shows a mere 8% of the total sample customers are satisfied with the interest rate being charged
by Citifinancial. & about 54% customers are unsatisfied with it.
In group 1, a high of 67% customers are unsatisfied with the interest rate being charged by
Citifinancial. The interesting thing is that not even a single customer is satisfied.
Here also the scene is not so good as 56% customers of group 2 are unsatisfied with the interest
rate being charged by Citifinancial.

27. In group 3, though only 30% customers are unsatisfied but on the other had only 10% are satisfied
with the interest rate being charged by Citifinancial. This shows that majority of the customers
across all groups are unsatisfied with the interest rate being charged by Citifinancial.
ANALYSIS & INTERPRETATION
Q.No-10) CUSTOMER SATISFACTION REGARDING PROCESSING FEES CHARGED BY
CITIFINANCIAL
It shows a mere 8% of the total sample customers are satisfied with the processing fees being
charged by Citifinancial. & about 54% customers are unsatisfied with it.

28. In group 1, a high of 67% customers are unsatisfied with the processing fees being charged by
Citifinancial. The interesting thing is that not even a single customer is satisfied.
Here also the scene is not as good as 56% customers of group 2 are unsatisfied with the processing
fees being charged by Citifinancial.
In group 3, though only 30% customers are unsatisfied but on the other had only 10% are satisfied
with the processing fees being charged by Citifinancial. This shows that majority of the customers
across all groups are unsatisfied with the interest rate being charged by Citifinancial.
ANALYSIS & INTERPRETATION
NUMBER OF CUSTOMERS WHO FACED ANY INCONVENIENCE FOR GETTIG IN TOUCH
WITH ANY CITIFIANCIAL PERSOAL LOAN OFFICER OR THE CONCERNED AGENT FOR
EQUIRY REGARDING STATUS OF PROCESSING OF LOAN
Out of a sample of 50, not even a single customer faced any inconvenience I getting in touch with
any Citifiancial personal officer or the concerned agent.
NUMBER OF CUSTOMERS FACED ANY PROBLEM FROM CITIFINANCIAL DURING
REPAYMENT
Out of the sample of 50 customers being surveyed, only 5 customers faced any problem during
repayment.

29. CUSTOMER SATISFACTION REGARDING SOLUTION GIVEN TO THE PROBLEM
REGARDING REPAYMENT BY CITIFIANCIAL
In this, only the 5 customers who faced the problem were interviewed & all of them were satisfied
with the solution give by Citifinancial.
CHAPTER-6
FINDINGS AND
RECOMENDATION
FINDINGS
From the analysis part one can interpret that customers across all groups in the sample are
satisfied with the service offered by Citifinancial except for the interest rate & processing
charges. We have already seen that a very high percentage of customers across all groups in the

30. sample are unsatisfied with the rate of interest & the processing fees being charged by
Citifinancial.
As I interviewed all the customers in the sample, one thing I found is that the main reason behind
such unsatisfaction by a majority of the customers is the high rate of interest being charged by
Citifinancial. It all depends on customer attitude & perception.
People have a tendency of comparing each option with the other option available to them & then
they evaluate. In case of Citifinancial, the same thing has happened. Here also the customers have
perception that the rate charged by Citifinancial is comparatively higher than the rate charged by
other institutions offering personal loans.
If I say that Citifinancial charges 16% interest and I ask whether it is high or low, then you may not
reply as you don’t have other options with which you can compare it. But, say if you have 3 options
viz:
Citifinancial charging 16% interest
ICICI Bank charging 7.5% interest
HSBC charging 15% interest.
FINDINGS
Then in this case you will compare all the options & will definitely think that the rate charged by
Citifinancial is high as compared to others. This is what has exactly happened with Citifinacial.
Same is the case with the processing fees also as customers think that the fees charged by
Citifinancial is very high.
Except for the interest rate & the processing charges, customers are satisfied with all other aspects
of the service being provided by Citifinancial. Only this thing is affecting the customer satisfaction
regarding overall service offered by Citifinancial. There are many customers who are though
satisfied with the overall service of Citifinacial but they are not satisfied with the interest rate &
processing fees being charged by Citifinancial.
This signals a danger for Citifinancial as its customers are not satisfied with the interest rate &
processing charges. As many customers look out for only these two aspects, any other institution
offering personal loan at a low rate may come & takeaway the customers of Citifinancial. This is now
started happening with Citifinancial as its customers are now turning towards its competitors, who
are offering personal loans at a comparatively lower rate.

31. RECOMMENDATION
RECOMMENDATION
My recommendation will clearly focus on the interest rate & the processing fees being charged by
Citifinancial.
I would not recommend Citifinancial to fix interest rate only according to what the customers want &
neglecting the RBI guidelines. I would not recommend Citifinancial to lower its interest rate but I can
recommend that Citifinancial should try to balance the following three things while fixing the rate:
RBI guidelines
Preference of customers

32. Rates being charged by its competitors
The most important thing is that while fixing the interest rate Citifinancial should not only comply
with the RBI guidelines but it should try to fix it competitively. The rates should be charged
competitively with the rates being charged by the competitors especially the MNC banks.
Since Citifinancial is an MNC, people when come here to take personal loan will definitely compare
it with the personal loans being offered by other MNCs such as HSBC Bank, ABN AMRO Bank,
Standard Chartered Bank, besides comparing it with the personal loans offered by India private
banks & government banks. It is natural as Citifinancial, HSBC Bank, ABN AMRO Bank, Standard
Chartered Bank belong to same category, people will first try to compare any product of Citifinancial
with that of the other three. So, Citifinancial should watch out its competitors especially the MNC
banks which may easily take away its customers.
CHAPTER-7
CONCLUSION

33. CONCLUSION
The whole study shows how customers are satisfied with the personal loans offered by Citifinancial
except for the interest & processing fees part, with which the customers are unsatisfied.
This is not only the picture of south Bangalore but of whole Bangalore & of whole India.
Customers across all cities/tows, wherever Citifinancial is present, are unsatisfied with the rate of
interest & processing fees being charged by Citifinancial.
Citifinancial is now working on it & will soon come out with a new rate that is competitively set & in
accordance to RBI guidelines & customers preference.
MY

34. LEARNINGS
MY LEARNINGS
This project has helped me learn lot of new things. It has helped me to apply all those things, which
I studied only in books.
This project has given me a deep insight into the world of not only personal loans but of consumer
loans as a whole. I came to know about the various aspects of personal loan.
Apart from this it helped me to learn how customer satisfaction studies are carried out. How
research methodology is implemented, how questionnaires are designed, how customers are
interviewed over telephone, how data is collected, how it is analyzed, interpreted & how
recommendations are made on the basis of findings.
To say that all these things that I have learned in books, I have seen it & done it practically. This was
all possible only through this project. This project has really helped to learn a lot about the
corporate world. I hope this will definitely help me in my real job.