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7/30/2019 Analysis of Home Loan Processing at UTI Bank
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Analysis of Home Loan
Processing At UTI Bank
www.studygalaxy.com
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AHEAD
Objectives
Overview of Indian Banking Sector
Leading Banks in India
Line of Products
About UTI : Promoters, Mission & Values Procedure for distribution of Home Loans
Funding
Terms & Conditions Loopholes in the System
Suggestions for improvement
Reference & Source
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OBJECTIVES OF THE PROJECT
To know the overall scenario of banking sector. To know the working of the UTI - RAC.
To do a detailed analysis of procedures adopted forprocessing of home loan.
To find out loopholes, if any, in the working of theorganisation.
To find out the ways of improving the existing
procedure of processing of home loan. To develop ways of generating more business for the
organisation.
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LEADING BANKS IN INDIA
State Bank of India
ICICI Bank
Centurion Bank of Punjab
HDFC Bank
Axis Bank, HSBC, IDBI
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Promoters UTI, LIC & GIC
Mission Customer Service and Product Innovation tuned to
diverse needs of individual and corporate clientele.
Continuous technology upgradation while maintaining
human values.
Progressive globalization and achieving international
standards.
Efficiency and effectiveness built on ethical practices.
Values Customer Satisfaction
Maximisation of Stakeholders value
Success through Teamwork, Integrity and People
ABOUT UTI BANK :
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PROCEDURE FOR HOME
LOAN DISTRIBUTION
Determination of Eligibility
Credit Appraisal
Technical Appraisal
Legal Appraisal
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DETERMINATION OF
ELIGIBILITY
Salaried Individuals
Government employees
Employees of reputed private organisations Professionals
Doctors, Engineers, Architects
C.A., C.S., Cost Accountants Management Consultants
Self-employed Individuals
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CREDIT APPRAISAL
Income
Age
Assets & Liabilities Servicing record in respect of other
institutional borrowing
Savings history / capacity Number of dependants
Income & expenditure pattern
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TECHNICAL APPRAISAL
Layout & Approval Plan
Commencement Certificate, if applicable
Estimate of cost of construction
NOC for mortgage of property in case the
purchase is from the development authority
or any govt. allotted scheme.
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LEGAL APPRAISAL
Availability of all property documents
Allotment Letter / Sale Deed / Transfer Deed
Revenue Receipts Complete chain of title
Non-encumbrance Certificate
Verification of documents by anexperienced lawyer
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Funding
Construction
(85% funding)
Land Purchase
(75% funding)
Constructed
property
(85% funding)
Take over /balance transfer
(75% funding)
Purchase
+construction
(85% funding)
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TERMS & CONDITIONS
REPAYMENT Repayment period not to
exceed 20 years
SECURITY Equitable Mortgage
INSURANCE Free fire & personal accident
insurance cover
PROCESSING FEES 1% of the loan amount
PENALTY FOR
EARLY CLOSURE
2% in case of takeover
Otherwise : Nil
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LOOPHOLES IN THE
SYSTEM
Formalities and requirement for the
approval of loan are many which causes
delay in loan sanctioning
The policies & procedures for getting loan
are complicated.
Using Excel Worksheet causes delay in theprocedure.
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SUGGESTIONS FOR
IMPROVEMENT Use of specialized banking software instead of
excel worksheet.
Cutting down channel for approval of loan.
Regular checking of files to sort out pendency .
Tie-up with Builders as well as with Government
organizations.
Workshop for various categories like salaried,
employed, self employed.
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LAST BUT NOT THE LEAST
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