Performance of United Commercial Bank
1. ORGANIZATION OVERVIEW
United Commercial Bank Limited is a scheduled commercial bank registered by the Bangladesh Bank. United Commercial Bank follows the rules and regulations prescribed by the Bangladesh Bank for Scheduled commercial banks. The functions of the bank cover a wide range of banking and functional activities to individuals, firms, corporate bodies and other multinational agencies.
The prime objective of United Commercial Bank is to serve the people for attainment of their economic goal and success in life here and hereafter. United Commercial Bank Limited stands not only for material well-being but also for ethical development of its customers. The Government of Bangladesh has licensed United Commercial Bank Ltd. (UCBL) as a private commercial bank, which is focused on the established and emerging markets of Bangladesh. United commercial Bank has started their operation in Bangladesh as a local bank in 1983 under company Act 1994. UCBL has Tk. 1000 million as authorized capital and Tk. 230 million as paid-up capital.
The Bank has made a significant progress within a very short period of its existence and occupied an enviable position among its competitors after achieving remarkable success in all areas of business operation. The Bank is operating its business according to maintain all the rules and regulations that the Government of Bangladesh imposed for sound performance in the Banking Industry.
1.1 History of UCBL
United commercial Bank Ltd. is one of the leading private commercial bank in Bangladesh. It sponsored by some dynamic and reported entrepreneurs and eminent industrialists of the country and also participated by the eminent. UCBL started its operation in the mid 1983. It renders banking services to its customers. With an outstanding lance, the company is heading towards the new millennium though focusing on leadership, service innovations and all other is required for earning excellence and continued growth. This is offering service-keeping harmony with the changing demands customers and is getting customer satisfaction by assuring quality and by delivery better service value comparing with its competitors.
The emergence of UCBL in private sector is an important event in the arena of Bangladesh. It has been able to establish the network of 102 branches throughout the country. A team of highly qualified and experienced professionals headed by the Managing Director of the Bank who has vast banking experience bank and at the top there is an efficient Board of Directors for making policies.
With its firm commitment to the economic development of the country, the Bank has already made a distinct mark in the realm of Private Sector Banking through personalized service, innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy. UCBL currently works with 329 correspondents covering 102 countries. Moreover, the Bank has arrangement with a number of Exchange House at Singapore, U.A.E, Oman, Qatar, and Kuwait to facilitate remittances from expatriate Bangladeshis. UCBL offers various types of products and services include Western Union money transfer, SMS banking, and online services, debit card, credit card, dual currency VISA credit card, various deposit schemes etc.
They have total online banking facilities along with no charge in the local transactions. They have 10 (Ten) Automated Teller Machine (ATM) Booth in Chittagong Sylhet and Dhaka Division. But they also have the contract with Dutch Bangla Bank Limited to use their booths in all over Bangladesh by the UCBL customers. With its firm commitment to the economic development of the country, the Bank has already made a distinct mark in the realm of Private Sector Banking through personalized service, innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy.
1.2 Vision
United Commercial Bank Limited wants to be the market leader in the local banks in Bangladesh. Their target is to be the highest profitable bank in local banking sector.
1.3 Mission
To provide quality services to customers
To set high standards of integrity
To make quality investment
To ensure sustainable growth in business
To ensure maximization of Shareholders’ wealth
To ensure human resource development to meet the challenges of the time
1.4 Strategies
ü To strive for customers best satisfaction & earn their confidence
ü To manage & operate the Bank in the most effective manner
ü To identify customers needs & monitor their perception towards meeting those requirements
ü To review & updates policies, procedures & practices to enhance the ability to extend better services to the customers
ü To train & develop all employees & provide them adequate resources so that the customer’s needs are reasonably addressed
ü To promote organizational efficiency by communicating company plans, polices & procedures openly to the employees in a timely fashion
ü To cultivate a congenial working environment
ü To diversify portfolio both the retail & wholesale markets
1.5 Motto
happy banking
1.6 Values of the UCBL
- Put customer first
- Emphasize on professional ethics.
- Maintain quality at all levels
- Believe in being a responsible corporate citizen
- Say on the believes
- Foster participative management
1.7 Branch information of UCBL
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UCBL has 105 Branches in Bangladesh
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| Year | 2006 | 2007 | 2008 | 2009 | 2010 |
| No. of Branches | 80 | 80 | 84 | 84 | 107 |
1.8 Special Features of the UCBL
v It has been performing commercial banking activity and striving to introduce dynamic Banking functions.
v It is the pioneer in introducing and launching different customer friendly deposit schemes to tap the savings of the people for channelizing the same to the productive sectors of the economy.
v For uplifting the standard of living of the limited income group of the population the Bank has introduced Consumer Credit Schemes by providing financial assistance in the form of loan to the consumers for procuring household durables, which have had encouraging responses.
v The Bank is committed to continuous research and development so as to keep pace with modern technology.
v The operations of the Bank are fully computerized so as to ensure quick, prompt flawless and services to the customers.
v The Bank has introduced camera monitor system (CCTV) to strengthen the security services inside the Bank premises.
1.9 Credit Rating
United Commercial Bank Limited was rated by Credit Rating and Information Services Limited (CRISL). In their report on April 2009, they rated the Bank as AA- for long term and ST-2 for short term. The gradation in long term rating has been done in consideration of its good capital adequacy, appropriate asset quality, increased non funded business and sound liquidity position. The short term rating indicates high certainty with regard to the obligators capacity to meet its financial commitments.
2.1 BOARD OF DIRECTORS:
| Chairman |
| Mr. M. A. Hashem |
| Vice-Chairman |
| Mr. Kazi Enamul Hoque |
| Chairman, EC |
| Hajee Yunus Ahmed |
| Chairman, Audit Committee |
| Mr. Md. Jahangir Alam Khan |
| Managing Director |
| Mr. M. Shahjahan Bhuiyan |
2.2 Organizational Chart of United Commercial Bank Ltd.
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| 2.3 United Commercial Bank Limited at a glance | ||||||||||||||||||||||||||||||||||
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3.1 Analysis and Interpretation of the Data
Main Departments of United Commercial Bank Ltd.
(Uttara Branch)
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3..2 PRODUCTS & SERVICES OF UCBL |
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3.3 FEATURES OF CORE PRODUCTS & SERVICES OF UCBL
3.3.1 UCB Multi Millionaire
UCBL provides an opportunity to be a millionaire at maturity by depositing a certain amount in monthly basis.
Maturity of this scheme:
- 5 – 10 years
- 7 – 12 years
- 10 – 15 years
Value at Maturity
- Minimum 10 lacs
- Maximum 1 crore
Special features
- 90% margin for loan against the scheme
- Minimum amount of loan is Tk. 50,000
- One person can open more one scheme
3.3.2 UCB Money Maximizer
UCBL provides an opportunity to get double amount of deposited money at maturity by depositing in monthly basis.
Maturity of this scheme:
- 8 years
Value at Maturity
- Double of deposited amount
Special features
- 90% margin for loan against the scheme
- Minimum amount of loan is Tk. 50,000
- One person can open more one scheme
3.3.3 UCB Earning Plus
UCBL provides an opportunity to withdraw an attractive amount of profit in every one or three months by depositing a specific amount of money.
Maturity of this scheme:
- 3 years
- 5 years
Value at Maturity
- Minimum Tk. 50,000
- Maximum a multiplier of Tk. 50,000
Special features
- 90% margin for loan against the scheme
- Minimum amount of loan is Tk. 50,000
- 0.10% extra interest is provided for elder person ( age: 55 year or above)
- One person can open more one scheme
3.3.4 UCB ONLINE
We are happy to announce that UCB has stepped into the electronic banking age. Now, you can deposit and withdraw cash, get mini statement, check balance and even transfer money within your accounts and pay installments from any of the branches with online facility. This is just beginning of our any branch banking under which other branches will come soon.
For the convenience of our valued customers, this is the way UCB would like to modernize it and serve them better by introducing state-of-the-art banking concept as the first generation local private bank.
| 3.3.5 SMS Banking Service
The Application form must be filled up & sent directly to United Commercial Bank and not by facsimile. The Bank may require three working days after receiving the Application Form for activation of the service. |
| The account holder is solely responsible to stop misuse of SMS Banking Services and also to maintain the confidentiality of his/her financial information by ensuring safe holding of the mobile phone/connection assigned to SMS Banking Service provided by United Commercial Bank. If the Mobile Phone/ Connection is lost, stolen or sold to another individual, the account holder shall immediately notify the Bank and cancel the SMS Banking Service. The account holder hereby agrees that United Commercial Bank shall not be responsible for any disruption in SMS Banking Service due to any mechanical failure on the part of United Commercial Bank/Mobile Phone Service Provider.
Registration form should be submitted to the branch, where the account is maintained. SMS Banking Service shall remain effective until otherwise advised in writing by the account holder. The Bank may revise and/or change any of the Terms & Conditions at any time with notice to you but does not require any consent. |
| By providing SMS Banking Service United Commercial Bank may collect service charge from the linked account. United Commercial Bank may revise and/or change the service charge at any point of time. |
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3.3.6(a) CREDIT CARD |
Features of UCB Credit Card:
| Ø Truly global – Locally & internationally transactable with the same card. This is a dual product. | |
| Ø Higher coverage of acceptance globally in POS terminals & ATMs. | |
| Ø Latest & best quality product at lowest price (annual fee) in the market. | |
| Ø Reward point for spending leads to wining of attractive prizes. | |
| Ø Choice of colors in Classic (Silver) products. | |
| Ø Credit Card for ladies – first time in Bangladesh. |
Product Type & Annual Fees:
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3.3.6(B) Documents Required for UCB Card
1. Salaried:
a) Two copies of passport or stamp size photograph
b) Latest Salary Certificate or pay slip
c) Personal bank statement for last 6 months
d) TIN Certificate photocopy
e) Passport photocopy (first 5 pages & last 3 pages)
2. Self Employed (Proprietorship):
a) Two copies of passport or stamp size photograph
b) Trade License photocopy
c) Personal bank statement for last 6 months
d) TIN Certificate photocopy
e) Passport photocopy (first 5 pages & last 3 pages)
3. Self Employed (Partnership):
a) Two copies of passport or stamp size photograph
b) Trade License photocopy
c) Partnership deed photocopy
d) Personal bank statement for last 6 months
e) TIN Certificate photocopy
f) Passport photocopy (first 5 pages & last 3 pages)
4. Self Employed (Limited Company):
f) Two copies of passport or stamp size photograph
g) Memorandum of Association Personal bank statement for last 6 months
h) TIN Certificate photocopy
i) Passport photocopy (first 5 pages & last 3 pages)
4. “UCB Auto Loan
Maintaining a car now a days is no more a luxury but an essential part of daily working life to add speed to its performance and taking this as view United Commercial Bank Ltd. has introduced ‘UCB Auto Loan’. Potential users of personal cars can contact any of the branches of the bank for availing the facility within shortest possible time at very easy terms.
4.1 SCHEME INFORMATION
1. Customer segment of auto loan: Any Bangladeshi (single and jointly with other co-owners/co-borrowers e.g. spouse also) to be more specific the falling group of people will be eligible for UCB Auto loan.
Professional
(a)Doctor
b) Engineer
c) Accounts
Self- Employed:
Businessman (in business at least for 2 years), land lord having significant rent income etc
Salaried people:
a) Employees of Govt/Semi Govt/Autonomous body
b)) Employees of financial institution
c) Employees of different public limited company/private limited
Company having corporate structure
d) Teacher of any School/collage/university
4.2Purpose of UCB AUTO loan
Purchasable Car
Brand New or Reconditioned
Private Car
Microbus
Jeep
Pick-up van
Eligibility
Age between 20 to 55 years
Permanent employees of
§ Govt., Semi Govt. and Autonomous Bodies
§ Banks and financial institutions
§ Teachers of University, School, College
§ Executives/Officers of Multinational Companies and renowned NGOs
Worthy businessman having trade license, VAT certificate and TIN
Professionals like Physicians, Engineers, etc.
Ceiling
Ø Maximum 80% for Private Car, Microbus, Jeep
Ø Maximum 60% – 70% for Van
Period
v Maximum 5 years for brand new
v Maximum 4 years for reconditioned
Down payment
Minimum 10 % for brand new
Minimum 20 % for reconditioned
Profit Rate or Interest Rate
Private Car, Microbus, Jeep – 15%
Van – 16%
Insurance
It is mandatory for the client to take an insurance against the car.
UCBL specified some insurance company from where the clients have to take the insurance for their car.
Special Feature
Registration cost and comprehensive insurance cost can be included in the total cost
1.00% rebate, if all the installments are paid in due time
Nationality
Bangladeshi only
Minimum income
TK. 20000 for salaried individuals and TK40000 for the business man.
Loan size:
TK.2000000 For both brand new& Recondition cars.
Debt Equit ration
Loan amount will not exceed 80% of the vehicle price.
Maximum term of loan:
05 (five) years.
Repayment method:
Equal monthly installments based on the tenor of the loan
Security/collateral
A. Hypothecation over the car (registration of the vehicle in the joint name of the bank)
B. First part comprehensive insurance of the car.
C. Post dated cheques based on the loan tenor. D. Additional security in the form of personal guarantee may be obtained of.
E. Parents or an individual having minimum solvency/income not less than that of the borrower supported by income proof
Legal documents
A. Duly filled of car loan application form terms and condition signed.
B. Demand Promissory Note.
C. Letter of set-of.
D. Irrevocable letter of authority to repossess the vehicle.
E. Ownership transfer form signed by customer.
F. Letter of offer with full terms and conditions stated therein and dual accepted.
Disbursement mode
After loan approval vendor will receive a facility confirmation letter. On the basis of that vehicle will be registered in joint name of the bank. Upon submission of registration vendor will be paid the total value of the vehicle in the form of pay order. Customer should pay the down-payment/total value prior to issuance of faculty confirmation letter
Verification of personal details and quotation.
A. Details of an applicant to be verified of a third party/internal assessment officers before an approval accorded
B. Letter from employed with details of employment and salary.
C. Borrower and guarantors details both present and permanent all telephone numbers of residence office and mobile number.
D. Personal net-worth statement.
Substantiation of income
Proper substantiation of income will be mandatory. All or any of the following original/true copy of original documents are accepted for the purpose.
A. Bank statements for minimum 6 months.
B. Personal net-worth statements.
C. Any other document that may stand as a proof of income such as last tax return deed of enfant agreement etc.
5. Different Consumer Scheme of UCB Ltd.
Ø Doctor’s Loan of UCB Ltd.
This is a new product of UCB. With the emerging concept of global village the medical profession is becoming sophisticated. In our country the number of doctors is higher than other professionals. The doctors need money to purchase modern medical equipments to provide better services to the patients. UCBL launched the doctor’s loan to promote the health services of our country
Eligibility of applicants:
1) Bangladeshi citizen
2) Minimum graduate in medical science
3) Allopathic medical professionals
4) Adequate earning capacity to service the loan
5) Within 25 to 65 years
Purpose of the loan:
1) To set up and renovate chambers
2) To purchase medical equipments
Loan features: (in broad sense)
Loan limit———————–BDT 5 Lac to 10 Lac
Down payment—————–10%
Interest rate———————17%
Service charge——————1% on the loan amount
Risk fund————————1% on the loan amount
Ø Loan Against salary of United commercial Bank Ltd.
Life is full of surprises. We often tumble into unforeseen cost that leaves the fixed income people unprepared. To support the fixed income people in those sudden events UCB launched “Loan against salary”. This product is tailored to provide loan to fixed income people against salary to mitigate any emergency need.
Eligibility of the applicants:
Only salaried employee within the age limit of 21-65 years can apply for this loan.
Security and documents:
I. 24 post dated cheques.
II. Letter of undertaking of the employer to deposit monthly installments directly to the bank and to adjust the outstanding loan amount from the employee’s terminal service benefits in case of early separation from the current organization
III. Terminal service benefits are to be lien against the loan.
Loan features:
Loan limit———————– 3 Lac (If the account is in UCBL bank salary account than 8times or if the account is in other bank than 6times
Loan period———————3; Interest rate———————17%
Service charge——————1% on the loan amount
Risk fund————————1% on the loan amount
Remarks: Loan against Salary is a special retail product united commercial bank limited which is only for Service holder’s .In the last 2 years disbursement amount is not satisfactory. However the bank should try to attract new customers by altering this loan features such as by better pricing & repayment periods. Recovery percentage under this loan is very good.
Ø Any purpose loan of UNITED COMMERCIAL Bank Ltd.
United commercial Bank introduces this loan scheme very recently. The loan scheme is under the retail credit scheme of UCBL.
Purpose of the loan:
The purpose of the loan is basically to meet the need of cash money in the time of emergency.
Eligibility of the applicants:
Any people with a stipulated fixed income within the age limit of 25-65 years can apply for this loan.
Loan features:
Loan limit———————–BDT up to 3 Lac (Monthly income minimum 10000 to 12000tk)
Loan period———————3 years
Interest rate———————17%
Service charge——————1% on the loan amount
Risk fund————————2% on the loan amount
Security and documents:
a) One socially recognized personal guarantor
b) Letter of introduction from the employer
c) Salary certificate
d) Application for the loan with specification of the purpose of the loan
Ø \Maximum 80% for Private Car, Microbus, Jeep
Ø Maximum 60% – 70% for Van
Marriage Loan
| This scheme is to meet the fund requirement for marriage purpose of salaried person in Govt. /Semi govt. /Autonomous bodies/ Multinational Co./Banks/Insurance/Financial Inst. /Educational Inst. with confirmed 3-years service ahead and businessman having adequate cash flow. |
Travel Loan
This scheme is for meeting fund for travel purpose of salaried person in Govt./Semi govt. /Autonomous bodies/ Multinational Co./Banks/Insurance/Financial Inst./Educational Inst. with confirmed 3-years service a
| Loan Limit and Period of Loans | ||||||||||
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Education Loan:
Purpose of the loan: For educational purposes like study in abroad or within the country.
Eligibility of the applicants:
Any people with a stipulated fixed income within the age limit of 25-65 years can apply for this loan.
Loan features:
Loan limit———————–BDT up to 5 Lac
Minimum income: Tk.10000 for salaried individuals and Tk.15000 for businessman
Loan period———————4 years
Interest rate———————17%
Service charge——————1% on the loan amount
Risk fund————————2% on the loan amount
| Loan Limit and Period of Loans | |
| Required Documents | |
| 01. | Employer Certificate |
| 02. | Photocopy of Tin Certificate, if any |
| 03. | Photocopy of Passport, Telephone(T&T) Bill, if any |
| Security | |
| 01. | Personal guarantee from an individual having means, standing and social status acceptable to the bank and another from his/her family |
| 02. | Undated cheques in favor of the Bank covering the whole amount |
5.1 Required documents for the scheme
1) Photograph of client (Two Copies) attested by the client
2) Quotation of Car accepted by client
3) Photograph of two guarantors (Two Copies each)
4) Income Expenditure Statement with supported documents
5) Visiting Card (Client & Guarantors)
6) CIB of client and Guarantors
7) Salary Certificate of client & guarantors
8) TIN certificate
9) Copy of National ID Card for client & guarantors
10) Net worth statement of client and Guarantors
11) Bio-data of the client & guarantors
12) Other Income with supported documents
13) Other Bank’s Liability
14) Others Bank statement
15) Memorandum & Article of Association for Business purpose car loan
16) Company profile, if applicable
17) Trade license
18) 3 years financial statement
19) Vat registration certificate
6. Performance Analysis
6.1 Portfolios
| UCBL Total Investment Portfolio of 2009 | |||
| Sl. NO. | Modes of Investment | Taka in million | Percentage of Total Investment |
| 1 | UCB Money Maximizer | 30.3 | 6.24 |
| 2 | UCB Multi-millionaire | 32.5 | 6.70 |
| 3 | UCB Earning Plus | 37.2 | 7.66 |
| 4 | UCB DPS & DPS Plus | 35.1 | 7.23 |
| 5 | UCB Auto Loan | 54.1 | 11.15 |
| 6 | UCB Home Loan | 259.2 | 53.41 |
| 7 | UCB Any-purpose Loan | 21.6 | 4.45 |
| 8 | Other Investment | 15.3 | 3.16 |
| Total | 485.3 | 100.00% | |
6.2 COMPARISON WITH OTHERS
| Bank Name | Interest Rate %
(Per Annum) |
Range of loan amounts of total cost | Loan maximum limit (TK/-) | Period | ||
| Brand new | Recondition | Brand new | Recondition | |||
| United Commercial Bank Ltd. | 15% | 80% | 20,00,000 | 20,00,000 | 5 years | 5 years |
| Mercantile Bank Ltd. | 16% | 75% | 20,00,000 | 15,00,000 | 6 years | 5 years |
| Trust Bank Ltd. | 14% | 75% | 20,00,000 | 20,00,000 | 5 years | 5 years |
| Dhaka Bank Ltd. | 15% | 80% | 20,00,000 | 20,00,000 | 6 years | 6 years |
| One Bank Ltd. | 16% | 80% | 20,00,000 | 20,00,000 | 6 years | 5 years |
| HSBC Bank Ltd. | 15% | 75% | 20,00,000 | 20,00,000 | 5 years | 5 years |
| Standard Chartered Bank Ltd. | 15% | 90% | 20,00,000 | 20,00,000 | 5 years | 6 years |
6.3 Trend of UCB Auto Loan from 2006 to 2010(November)
This Line chart shows us the financial growth Trend of the “UCB Auto Loan” from 2006 to 2010(November). And we can find that the Trend is gradually increasing from year to year. That
Means it is growing from 2006 to 2010.
7. SURVEY REPORT
Frequency Table
| Name of the respondents | Frequency | Percent | Valid Percent | Cumulative Percent | |||||
| Gazi Abdur Rob | 1 | 12.5 | 12.5 | 12.5 | |||||
| Lutfor Rahman | 1 | 12.5 | 12.5 | 25.0 | |||||
| Mawlana Kazi Mujibur Rahaman | 1 | 12.5 | 12.5 | 37.5 | |||||
| Md. Shamim Istiaq | 1 | 12.5 | 12.5 | 50.0 | |||||
| Md. Zillur Rahman Mridha | 1 | 12.5 | 12.5 | 62.5 | |||||
| Mr. Md. Iftakher Hossain Harun | 1 | 12.5 | 12.5 | 75.0 | |||||
| Mr. Nazmul Kabir | 1 | 12.5 | 12.5 | 87.5 | |||||
| Mr. Syed Golam Mawla | 1 | 12.5 | 12.5 | 100.0 | |||||
| Total | 8 | 100.0 | 100.0 | ||||||
In this survey we have chosen eight individual people, those have taken the “UCB Auto Loan” in year 2010 by using stratified sampling method.
Occupation
| Frequency | Percent | Valid Percent | Cumulative Percent | |
| Businessman | 7 | 87.5 | 87.5 | 87.5 |
| Service-holder | 1 | 12.5 | 12.5 | 100.0 |
| Total | 8 | 100.0 | 100.0 |
In this Survey eight respondents were chosen & they have different occupations. From them 87.5% Businessman & 12.5% Service-holder. It is revealing from the study that most of the investors of UCB Auto Loan’s are Businessman.
v Have you taken car loan from which bank?
| Frequency | Percent | Valid Percent | Cumulative Percent | |
| UCBL | 8 | 100.0 | 100.0 | 100.0 |
The purpose of the study was to indentify whether the loan borrowers of this scheme have taken any loan from the other banks for the same reason. However it is found that none of the loan borrowers have taken loan from the other bank except United Commercial Bank Limited. Because the Clients are loyal to the Bank, they have to do some other transactions with the bank & they want to make a good relation with the bank.
v Did you have any account in this bank?
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Yes | 8 | 100.0 | 100.0 | 100.0 | |
All respondents said ‘yes’, they had to open a bank account in United Commercial Bank Ltd. Because it is mandatory & it also provides some help to the Clients & the Bankers for doing any kind of transition.
v Was it mandatory to have an account in this bank?
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Yes | 8 | 100.0 | 100.0 | 100.0 | |
All respondents said ‘yes’, opening a bank account was mandatory.
v Did you have to full fill the bank’s requirements for this loan?
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Yes | 8 | 100.0 | 100.0 | 100.0 | |
All respondents said ‘yes’ & full filling the bank’s requirements were mandatory not only for UCBL but also for all banks. And this rule remain unchanged now on.
v What was your monthly income level?
| Income level | Frequency | Percent | Cumulative Percent |
| 40,000 TK/- | 1 | 12.5 | 12.5 |
| 50,000 TK/- | 1 | 12.5 | 25.0 |
| 60,000 TK/- | 1 | 12.5 | 37.5 |
| 70,000 TK/- | 1 | 12.5 | 50.0 |
| 80,000 TK/- | 2 | 25.0 | 75.0 |
| 90,000 TK/- | 1 | 12.5 | 87.5 |
| More than 90,000 TK/- | 1 | 12.5 | 100.0 |
| Total | 8 | 100.0 |
This Pie chart shows that the income level of the respondents is differ from each other. It is found that all of the respondent’s monthly income is more than 40,000 TK/-.
It is found that 50% of respondents had taken this loan for 1 time, 37.5% for 2 times & 12.5% for 3 times. It differs from their needs of the vehicle.
v You had taken loan for how many cars?
| Number of Cars | Frequency | Percent | Cumulative Percent | |
| 1 | 4 | 50.0 | 50.0 | |
| 2 | 3 | 12.5 | 62.5 | |
| 3 | 1 | 12.5 | 100 | |
| Total | 8 | 100.0 | ||
It is found that the respondents had taken loan for as many cars as their need. The pie chart shows that 50% had taken by one respondents & rest of the respondents had taken at the rate of 12.5%.
v For which type of vehicle you had taken this loan?
| Frequency | Percent | Cumulative Percent | ||
| Private Car | 5 | 62.5 | 62.5 | |
| Jeep | 1 | 12.5 | 75.0 | |
| Microbus | 2 | 25.0 | 100.0 | |
| Total | 8 | 100.0 | ||
United Commercial Bank Ltd. gives Car loan for 3 types of vehicle- Private Car, Jeep & Truck. It is found that according to the Borrowers need they had taken loan for different kinds of vehicles. And the percentage is 62.5% for Private Car, 12.5% for Jeep & 25% for Truck. So the highest rate of loan browed for the Private Car.
v Had you taken loan for-
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Brand new car | 2 | 25.0 | 25.0 | 25.0 | |
| Recondition car | 6 | 75.0 | 75.0 | 100.0 | |
| Total | 8 | 100.0 | 100.0 | ||
From the survey it found that the most of the loan borrowers had taken this loan for commercial purpose & as we now the intention of all commercial organization is how minimize cast. So in here we found that the percentage rate for the Recondition Car is high 75% & only 25% for the Brand new Car. Though in our country people are naturally like to use the Recondition car, so
That may be another reason behind this highest rate.
v What was the profit/interest rate for this loan?
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| 15% | 8 | 100.0 | 100.0 | 100.0 | |
All respondents said that they had taken the loan in 15% rate of interest/profit from the UCBL. Here we found that the rate is fixed but sometimes it can be changed according to the roles under the purpose of taking loan, that mean Personal purpose & Commercial purpose. In Commercial purpose the rate should be higher that the Personal purpose. However here the respondents said
the rate is fixed. It all depends on the Banks roles & regulations.
v What was the range of loan amount on total cost?
| Loan-able fund on Total cost | Frequency | Percent | Cumulative Percent | |
| 90% | 2 | 25.0 | 25.0 | |
| 80 % | 3 | 37.5 | 62.5 | |
| 70% | 1 | 12.5 | 75.0 | |
| 60% | 2 | 25 | 100.0 | |
| TOTAL | 8 | 100.0 | ||
Maximum time bank sanctions 80% loan on total car-purchase amount but only for Brand-new car they allow 90% loan on total car-purchase amount.
v What was the loan amount (TK. in Lac)?
| (Tk. in ‘Lac’) | Frequency | Percent | Cumulative
Percent |
|
| 1 to 5 | 1 | 12.5 | 12.5 | |
| 5 to 10 | 5 | 62.5 | 75.0 | |
| 10 to 15 | 1 | 12.5 | 87.5 | |
| 15 to 20 | 1 | 12.5 | 100.0 | |
| Total | 8 | 100.0 | ||
It is found that the highest loan amount is not-more than 20, 00,000 Tk/-. Car is the long term asset, so investors had to invest a handsome amount of money for this Investment Scheme.
v What was the period limit of the loan?
| Frequency |
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