International Journal Of Marketing, Financial Services & Management Research ____________________ ISSN 2277-3622 IJMFSMR, Vol.3 (10), October (2014), pp. 102-113 Online available at indianresearchjournals.com A STUDY ON CUSTOMER PREFERENCE TOWARDS LOANS AND ADVANCES WITH REFERENCE TO LAKSHMI VILAS BANK DR.P.KARTHIKEYAN ASSISTANT PROFESSOR (SR.GRADE), SCHOOL OF MANAGEMENT STUDIES, KONGU ENGINEERING COLLEGE, PERUNDURAI, TAMIL NADU. ABSTRACT A Banking Sector performs three primary function in economy, the operation of the payment system, the mobilization of savings and the allocation of saving to investment products (Ahluvaliya Montek.,S). “Bank as institutions which collects money from those who it to spare or who are saving it out of their income and lends out to those who required it” (Crowthers). The bank offers various loans such as agriculture loan, vehicle loan, educational loan, housing loan and personal loan. While obtaining loan from banks, customer expects low interest rate, simple procedure, security and easier repayment. Hence, it became necessary to study the customer preference of selected loan products of Lakshmi Vilas Bank, Kangayam Branch. In this research we identify how people perceive the loans and advances on the different variables like interest rate, income level, repayment facility, loan approval, processing charges etc. The objective of the research is to study the customer preference towards various schemes and satisfaction level of loans and advances. In this research descriptive research design was used. The sample of 150 existing customers is taken for the study on the basis of convenience sampling method. The collected data were analyzed in different statistical test. The findings of the study is loan products offered by LVB is satisfactory when compare to others branches situated in nearest places. To compete, the bank should introduce more products including loans. Over all the customers are satisfied with the existing service. KEY WORDS: Banking, Customer perception, Interest rate, Loans, Satisfaction. REFERENCES 1. Ahluvaliya Montek,S.“Economic Reforms in India since 1991: Has Gradualism Worked”? Journal of Economic Perspective 16(3) pp 67-88. 2. Batra, Vinod “Development Banking in India”, Print Well Publications, Jaipur 3. Chowdari Prasad and K S Srinivasa Rao (2005), Study of Private Sector Banks in India, Journal of Bank Management. International Journal Of Marketing, Financial Services & Management Research ____________________ ISSN 2277-3622 IJMFSMR, Vol.3 (10), October (2014), pp. 102-113 Online available at indianresearchjournals.com 4. Christos C. Frangos, Konstantinos C. Fragkos , Ioannis Sotiropoulos, Giannis Manolopoulos and Aikaterini C. Valvi (2012) “Factors Affecting Customers’ Decision for Taking out Bank Loans: A Case of Greek Customers”, Journal of Marketing Research & Case Studies. 5. Janmeyaga K. Sinha, Bank on Major Change, The Financial Express referred on 22nd April 2006. 6. Kothari C.R, 2002, Research Methodology-Methods and Techniques, New Age International (P) Ltd, New Delhi. 7. Natarajan,S., Parameswaran., R, 2009, Indian Banking, Sultan Chand Publishing, New Delhi. 8. Nathwani Rajeshri 2004, “The Study of Customers' Preference and Managerial Effectiveness of Nationalized and Private Sector Banks”, Saurashtra University.) 9. Sachdev Sheetal B. and Verma Harsh V., 'Relative Importance of Service Quality Dimensions: A Multisectoral Study, Journal of Services Research. 4 (1), April -Sep (2004) 10. Salman Khalid, Babak Mahmood, Muzaffar Abbas, and Shabbir Hussain, International Journal of Marketing Studies Vol. 3, No. 4; November 2011 11. Subrahmanya, K.N. “Modern Banking in India”, Deep & Deep Publications, New Delhi. 12. Tandan, M.L., “Banking Law and Practice in India”, Indian Law house, Delhi, 2002, 13. Varshney P.N (2009), Banking law and Practice, SultanChand & Sons (P) Ltd, New Delhi. 14. William L. Boyd, Myron Leonard, Charles White, (1994) "Customer Preferences for Financial Services: An Analysis", International Journal of Bank Marketing, Vol. 12 Issue: 1, pp.9 – 15.