Comparative Study of Personal Installment Loan Services between Local and Foreign Bank in Bangladesh

Abstract

The study aims to investigate of Personal installment loan services between a local and foreign commercial bank over a period of 1999 to 2003. The study revealed that personal installment loan services have been popularizing among the customers of medium-low income levels in the society. It is demonstrated that the foreign sample bank is providing prompt services as compare to local sample bank as regards personal installment loan facilities, terms and conditions, fees, target market and customized products. But foreign banks are charging more charges than the local bank. It is observed that foreign commercial banks are more dynamic, more technological oriented and aggressive customer service than the local commercial bank. Moreover, foreign bank is more technological than the local bank in the context of designing the personal loan features. Finally, the study highlights the major components of personal installment loan system in the shed light of total disbursed amount, total outstanding amount, total customer achieved, etc.