Perception of Customers towards Lending Practices of Commercial Banks
R. Edward Vettivel1, Darling Selvi V2

1R. Edward Vettivel, PG Assistant,  Department of Commerce, St. John’s Higher Secondary School, Palayamkottai,  Rani Anna Government College for Women, Tirunelveli, Manonmaniam Sundaranar University, Tirunelveli (TamilNadu), India.

2Darling Selvi V, Assistant Professor,  Department of Commerce, Rani Anna Government College for Women, Tirunelveli, Manonmaniam Sundaranar University, Tirunelveli (TamilNadu), India.

Manuscript received on 15 May 2019 | Revised Manuscript received on 22 May 2019 | Manuscript Published on 08 June 2019 | PP: 24-30 | Volume-8 Issue-7C May 2019 | Retrieval Number: G10060587C19/19©BEIESP

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Abstract: It is the general opinion that an effective financial system should concentrate on the empowerment of individuals, facilitate better integration with economy, actively contribute to development and give protection against economic variations. Further the vital factors like Inclusive finance through securing savings, by providing appropriately priced credit to all, and by giving payment and remittance services, should help vulnerable groups such as low income groups, weaker sections and so on to increase income, acquire capital, manage risk and work their way out of poverty. Despite considerable expansion of the banking system in India, large segments of the India’s population are not adequately served with credit facilities. This study is an attempt to evaluate the perception of customers towards lending practices of Commercial banks in Tiruelveli District of Tamilnadu. The collected data from 100 sample respondents were analysed with the help of Cronbach’s Alpha reliability statistics, rotated Factor Analysis, Cluster Analysis, Reliability of segmentation with the help of Reliability of segmentation and path analysis. The survey result shows that the factors credit volume, customer satisfaction, affordability and unbiased were filtered by factor analysis. The four factors were further sub divided into two Short Term Agriculture loans and satisfactory schemes. The path analysis designed to find the model fit suggest that in all the three models the four factors such as credit volume, customer services, affordability and satisfaction give a fitting model by having all the variants within the limits. Hence it is concluded that all the four factor contributing the positive perception of sample respondents towards the lending practices of commercial banks. It is suggested that just by increasing the short term agriculture with attractive schemes will help the rural mass to get more benefits from the lending practices of banks.

Keywords: Factors, Lending Practices, Model, Perception, Segments.
Scope of the Article: Perception and Semantic Interpretation