Hdfc Final SANJAY

8/3/2019 Hdfc Final SANJAY

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A

Project Study ReportTraining Undertaken at

HDFC Bank on Education Loan

Submitted in partial fulfilment for theAward of degree of

Master of Business Administration(Rajasthan Technical University)

Submitted to: Submitted by:

Rajasthan Technical University Mohd. Sajid Ali

Kota MBA

Under Esteemed Supervision:Mr. Surjeet Bishnoi

Asst. Professor

Session 2009-11

SHEKHAWATI INSTITUTE OFMANAGEMENT

Behind Circuit House, Sikar-332001


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PREFACE

AN OUNCE OF PRECTICE IS EQUAL TO TON OF

THEORY

As we know that for the management student for their successive completion

of management education it is essential that they have practical knowledge

and without practical knowledge remains incomplete. For this, purpose the

Rajasthan technical university, Kota for MBA course includes 45days training

after 2nd SEM.

This is the report submitted by me after complete training of 45days, I have

completed at HDFC bank. In month of May-June.


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Acknowledgement

This project report bears the imprint of those who had rendered their

wholehearted support and encouragement without whose help this effort of

mine would be in vain. I express my deep sense of gratitude and sincerethanks to my project guide Mr. Anchal Kumar for his, directions, suggestion

and information provided which were of utmost importance for the successful

completion of the project.

At last, I also thank the employees of National HDFC Bank for assisting

me in the timely completion of project.

Sumit Agarwal


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Contents

1.Industry Profile

2. Introduction To The Organization

3. Research Methodology

Title Of The Study

Duration Of The Project

Objective Of The StudyType Of Research

Sample Size And Method Of Selecting Sample

Scope Of Study

Limitation Of Study

4. Facts and Findings

5. Analysis And Interpretation

6. SWOT ANALYSIS

7. Conclusion

8. Recommendation And Suggestions

9. Appendix

10. Bibliography


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INTRODUCTION OF INDIAN BANKING INDUSTRY

Banking in India originated in the first decade of 18th century with The

General Bank of India coming into existence in 1786. This was followed by

Bank of Hindustan. Both these banks are now defunct. The oldest bank in

existence in India is the State Bank of India being established as "The Bank of

Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks

started their Calcutta operations in the 1850s. At that point of time, Calcutta

was the most active trading port, mainly due to the trade of the British Empire,

and due to which banking activity took roots there and prospered. The first

fully Indian owned bank was the Allahabad Bank, which was established in

1865.

By the 1900s, the market expanded with the establishment of banks such as

Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in

Mumbai - both of which were founded under private ownership. The Reserve

Bank of India formally took on the responsibility of regulating the Indian

banking sector from 1935. After India's independence in 1947, the Reserve

Bank was nationalized and given broader powers.

At the end of late-18th century, there were hardly any bank in India in the

modern sense of the term. At the time of the American Civil War, a void was

created as the supply of cotton to Lancashire stopped from the Americas.

Some banks were opened at that time which functioned as entities to finance

industry, including speculative trades in cotton. With large exposure to

speculative ventures, most of the banks opened in India during that period

could not survive and failed. The depositors lost money and lost interest in

keeping deposits with banks. Subsequently, banking in India remained the

exclusive domain of Europeans for next several decades until the beginning of

the 20th century.


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The Bank of Bengal, which later became the State Bank of India.

BANKING

Banks have played a pivotal role in the process of development of the district

over the years, especially after the formation of the district in 1993. Apart from

dispensing credit, the Banks have also brought about social changes. The

contribution of the banking sector in the field of over all development of the

district is elaborated in the following paragraphs.

At the beginning of the 20th century, Indian economy was passing through a

relative period of stability. Around five decades have elapsed since the India's

First war of Independence, and the social, industrial and other infrastructure

have developed. At that time there were very small banks operated by

Indians, and most of them were owned and operated by particular

communities. The banking in India was controlled and dominated by the

presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the

Bank of Madras - which later on merged to form the Imperial Bank of India,

and Imperial Bank of India, upon India's independence, was renamed the

State Bank of India. There were also some exchange banks, as also a

number of Indian joint stock banks. All these banks operated in different

segments of the economy.

The presidency banks were like the central banks and discharged most

of the functions of central banks. They were established under charters from

the British East India Company. The exchange banks, mostly owned by the

Europeans, concentrated on financing of foreign trade. Indian joint stock

banks were generally under capitalized and lacked the experience and

maturity to compete with the presidency banks, and the exchange banks.

There was potential for many new banks as the economy was growing. Lord

Carson had observed then in the context of Indian banking: "In respect of

banking it seems we are behind the times. We are like some old fashioned

sailing ship, divided by solid wooden bulkheads into separate and

cumbersome compartments.


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Under these circumstances, many Indians came forward to set up banks, and

many banks were set up at that time, a number of which have survived to the

present such as Bank of India and Corporation Bank, Indian Bank, Bank of

Baroda, and Canara Bank.

Indian banking sector can be divided mainly into four broad categories

namely public sector Banks, old private sector banks, new private sector

banks, and foreign banks. The other categories of banks include co-operative

banks and regional rural banks. Since these banks dont form a substantial

chunk of the banking system, we will focus on the first four categories.

BANKING SYSTEM IN INDIA


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CENTRAL BANK: RESERVE BANK OF INDIA

NATIONALISED BANK OF INDIA

BANKS IN INDIA

CENTRAL BANK NATIONALISED PRIVATE BANKS FOREIGN BANKS


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The Banking System in India is dominated by nationalized banks. The

Nationalization of Banks in India took place in 1969 by Mrs. Indira Gandhi

the then Prime Minister. The major objective Behind Nationalization Banks

was to spread banking Infrastructure in Rural areas and make available cheap

finance to Indian farmers. Fourteen banks were nationalized in 1969. These

Banks were

State Bank of India

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

PRIVATE BANK OF INDIA
http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Andhra_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Maharashtrahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Dena_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Indian_Overseas_Bankhttp://en.wikipedia.org/wiki/Oriental_Bank_of_Commercehttp://en.wikipedia.org/wiki/Punjab_%26_Sind_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Syndicate_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Andhra_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Maharashtrahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Dena_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Indian_Overseas_Bankhttp://en.wikipedia.org/wiki/Oriental_Bank_of_Commercehttp://en.wikipedia.org/wiki/Punjab_%26_Sind_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Syndicate_Bank


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All the banks in India were earlier private banks. They were founded

in the pre-independence era to cater to the banking needs of the people. But

after nationalization of banks in 1969 public sector banks came to occupy

dominant role in the banking structure. Private sector banking in India

received a fillip in 1994 when Reserve Bank of India encouraged setting up of

private banks as part of its policy of liberalization of the Indian Banking

Industry. Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve Bank of

India (RBI) to set up a bank in the private sector.

Axis Bank

Bank of Rajasthan

Bharat Overseas Bank

Catholic Syrian Bank

Centurion Bank of Punjab

City Union Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank Limited

Karur Vysya Bank

Kotak Mahindra Bank

SBI Commercial and International Bank


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CBS NETWORKING

Core Banking Solutions is new jargon frequently used in banking circles

of India. The advancement in technology especially internet and information

technology has led to new way of doing business in banking. The

technologies have cut down time, working simultaneously on different issues

and increased efficiency. The platform where communication technology and

information technology are merged to suit core needs of banking is known as

Core Banking Solutions. Here computer software is developed to perform

core operations of banking like recording of transactions, passbook

maintenance, and interest calculations on loans and deposits, customer

records, balance of payments and withdrawal are done. This software is

installed at different branches of bank and then interconnected by means of

communication lines like telephones, satellite, internet etc. It allows the user

(customers) to operate accounts from any branch if it has installed core

banking solutions. This new platform has changed the way banks are working.

HISTORY OF BANKING

The period during the First World War (1914-1918) through the end of the

Second World War (1939-1945), and two years thereafter until the

independence of India were challenging for the Indian banking. The years of

the First World War were turbulent, and it took toll of many banks which

simply collapsed despite the Indian economy gaining indirect boost due to

war-related economic activities. At least 94 banks in India failed during the

years 1913 to 1918 as indicated in the following table:
http://en.wikipedia.org/wiki/Passbookhttp://en.wikipedia.org/wiki/Loanshttp://en.wikipedia.org/wiki/Depositshttp://en.wikipedia.org/wiki/Telephoneshttp://en.wikipedia.org/wiki/Satellitehttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Passbookhttp://en.wikipedia.org/wiki/Loanshttp://en.wikipedia.org/wiki/Depositshttp://en.wikipedia.org/wiki/Telephoneshttp://en.wikipedia.org/wiki/Satellitehttp://en.wikipedia.org/wiki/Internet


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Years Number of banks

that failed

Authorised

capital

(Rs. Lakhs)

Paid-up Capital

(Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

POST-INDEPENDENCE

The partition of India in 1947 had adversely impacted the economies of

Punjab and West Bengal, and banking activities had remained paralyzed for

months. India's independence marked the end of a regime of the Laissez-faire

for the Indian banking. The Government of India initiated measures to play an

active role in the economic life of the nation, and the Industrial Policy

Resolution adopted by the government in 1948 envisaged a mixed economy.

This resulted into greater involvement of the state in different segments of the

economy including banking and finance. The major steps to regulate banking

included:

1. In 1948, the Reserve Bank of India, India's central banking authority,

was nationalized, and it became an institution owned by the

Government of India.

2. In 1949, the Banking Regulation Act was enacted which empowered

the Reserve Bank of India (RBI) "to regulate, control, and inspect the

banks in India."


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3. The Banking Regulation Act also provided that no new bank or branch

of an existing bank may be opened without a license from the RBI, and

no two banks could have common directors.

However, despite these provisions, control and regulations, banks in India

except the State Bank of India, continued to be owned and operated by

private persons. This changed with the nationalization of major banks in India

on 19th July, 1969.

NATIONALISATION

By the 1960s, the Indian banking industry has become an importanttool to facilitate the development of the Indian economy. At the same time, it

has emerged as a large employer, and a debate has ensued about the

possibility to nationalize the banking industry. Indira Gandhi, the-then Prime

Minister of India expressed the intention of the GOI in the annual conference

of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank

Nationalization." The paper was received with positive enthusiasm.

Thereafter, her move was swift and sudden, and the GOI issued an ordinance

and nationalized the 14 largest commercial banks with effect from the

midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India,

described the step as a "masterstroke of political sagacity."Within two weeks

of the issue of the ordinance, the Parliament passed the Banking Companies

(Actuation and Transfer of Undertaking) Bill, and it received the presidential

approval on 9th August, 1969.

A second dose of nationalization of 6 more commercial banks followed in

1980. The stated reason for the nationalization was to give the government

more control of credit delivery. With the second dose of nationalization, the

GOI controlled around 91% of the banking business of India.

After this, until the 1990s, the nationalized banks grew at a pace of around

4%, closer to the average growth rate of the Indian economy.


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LIBERALISATION

In the early 1990s the then Narasimha Rao government embarked on a policy

of liberalization and gave licenses to a small number of private banks, which

came to be known as New Generation tech-savvy banks, which included

banks such as UTI Bank (now re-named as Axis Bank) (the first of such new

generation banks to be set up), ICICI Bank and HDFC Bank. This move,

along with the rapid growth in the economy of India, kick started the banking

sector in India, which has seen rapid growth with strong contribution from all

the three sectors of banks, namely, government banks, private banks and

foreign banks.

The next stage for the Indian banking has been setup with the proposed

relaxation in the norms for Foreign Direct Investment, where all Foreign

Investors in banks may be given voting rights which could exceed the present

cap of 10%,at present it has gone up to 49% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this

time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at

4) of functioning. The new wave ushered in a modern outlook and tech-savvy

methods of working for traditional banks. All this led to the retail boom in India.

People not just demanded more from their banks but also received more.

CURRENT SITUATION

Currently (2009), banking in India is generally fairly mature in terms of

supply, product range and reach-even though reach in rural India still remainsa challenge for the private sector and foreign banks. In terms of quality of

assets and capital adequacy, Indian banks are considered to have clean,

strong and transparent balance sheets relative to other banks in comparable

economies in its region. The Reserve Bank of India is an autonomous body,

with minimal pressure from the government. The stated policy of the Bank on

the Indian Rupee is to manage volatility but without any fixed exchange rate-

and this has mostly been true. With the growth in the Indian economyexpected to be strong for quite some time-especially in its services sector-the


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demand for banking services, especially retail banking, mortgages and

investment services are expected to be strong. One may also expect M & as,

takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to

increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%.

This is the first time an investor has been allowed to hold more than 5% in a

private sector bank since the RBI announced norms in 2005 that any stake

exceeding 5% in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public

sector banks (that is with the Government of India holding a stake), 29 privatebanks (these do not have government stake; they may be publicly listed and

traded on stock exchanges) and 31 foreign banks. They have a combined

network of over 53,000 branches and 17,000 ATMs. According to a report by

ICRA Limited, a rating agency, the public sector banks hold over 75 percent of

total assets of the banking industry, with the private and foreign banks holding

18.2% and 6.5% respectively

DEPOSITS

The overall deposits of the banks together has increased manifold during

the last decade. The total deposits of Rs.161.45 crores at the end of March,

1994 have swelled to a tune of Rs.961.99 crores by the end of financial

year 2002-2003. The Commercial Banks have a lions share in the deposit

portfolio having 80% of the market share followed by RRB and CCB with

11% and 9% market share respectively.

ADVANCES


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The overall advances of the banks have shown an increasing trend

during the last decade. At the end of March 1994 the total outstanding

advances stood at a level of Rs.62.41 crores, which has gone up to a level of

Rs.390.96 crores at the end of March, 2003. The priority sector has a share of

Rs.259.29 crores i.e. 66% of the total advances, of which Agriculture

constitute Rs.87.93 crores i.e. 22% of the total advances.

The Commercial Banks have the maximum share of 55% in the

advances portfolio, followed by RRB, CCB and other financing institutions with

22%, 15% and 8% share respectively.

The credit dispensed has also increased manifold during the last

decade. Rs.154.99 crores of credit was dispensed during 2002-03 compared

to Rs.16.02 crores dispensed during 1993-94. Under this portfolio, the share

of commercial banks was also highest at Rs.85.30 crores constituting 55% of

the total credit deployment followed by RRB, CCB and other financial

institutions with a share of 27%, 17% & 1% respectively. The trend in credit

deployment under various purposes has also undergone change by additionof new areas of financing like housing, education, consumer durable,

transport etc. Nevertheless agriculture enjoys due importance. Rs. 42.95

crores has gone to this sector during 2002-03 as against Rs. 3.66 crores in

1993-94.

GOVERNMENT SPONSORED PROGRAMMES


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In order to fulfill social commitments, the banks in the district have

come forward to extend financial assistance in respect of a plethora of

government sponsored programmes so as to improve the living condition of

the target groups through gainful employment.

The details of credit deployment of various banks operating in the district

under the annual credit plans during the last decade are as under.

(Rs.in lakes)

Year/

Sector

s

Particulars Agriculture Non-

Farm

sector

Other

priority

Sector

Total

priority

sector

Non

priority

sector

Total

advance

1993-

94

Target 576 132 297 1,005 455 1,460

Achievement366 128 375 869 733 1,602

1994-

95

Target 471 187 326 984 263 1,247

Achievement572 191 610 1,373 597 1,970

1995-

96

Target 859 255 705 1,819 304 2,123

Achievement1,024 272 1,065 2,361 544 2,905

1996-

97

Target 1,137 420 1,188 2,745 380 3,125

Achievement1,235 353 1,348 2,936 1,091 4,027

1997-

98

Target 1,881 531 1,855 4,267 492 4,759

Achievement1,668 205 1,962 3,835 1,511 5,346

1998-

99

Target 2,183 289 2,074 4,545 1,998 6,543

Achievement2,182 289 2,074 4,545 1,998 6,543


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1999-

2000

Target 2,747 857 2,334 5,938 1,238 7,176

Achievement2,602 267 2,089 4,958 2,522 7,470

2000-

2001

Target 2,538 719 2,744 7,001 1,704 8,705

Achievement2,782 478 2,391 5,651 3,775 9,426

2001-

2002

Target 4,126 821 2,948 7,895 2,200 10,095

Achievement3,340 346 5,479 9,165 5,607 14,772

20iv02

-2003

Target 4890 895 4,323 10,098 2,945 13,043

Achievement4295 211 5,176 9,682 5,817 15,499

NOTE: All data available till 2003 so further data cannot be given.

RECOVERY OF BANK DUE

The recovery of bank dues has not been commensurate with the

growth of loans and advances. Though in terms of absolute figures the

recovery has gone up substantially, the same in percentage term has shown a

moderate change and has settled at 45-50% during the last few years. The

poor recovery has adversely affected the CARD bank, which has weakened

the financial strength of this part of the banking structure. The liberal

measures to augment recovery like One Time Settlement Scheme of RBIand the various compromise settlement schemes of respective banks have

contributed in the percentage increase in recovery of bank dues.


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INTRODUCTION TO THE COMPANY

The Housing Development Finance Corporation Limited (HDFC) was amongst

the first to receive an 'in principle' approval from the Reserve Bank of India

(RBI) to set up a bank in the private sector, as part of the RBI's liberalization

of the Indian Banking Industry in 1994. The bank was incorporated in August

1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai,

India. HDFC Bank commenced operations as a Scheduled Commercial Bank

in January 1995.

Promoters

HDFC is India's premier housing finance company and enjoys an impeccable

track record in India as well as in international markets. Since its inception in

1977, the Corporation has maintained a consistent and healthy growth in its

operations to remain the market leader in mortgages. Its outstanding loan

portfolio covers well over a million dwelling units. HDFC has developed

significant expertise in retail mortgage loans to different market segments and

also has a large corporate client base for its housing related credit facilities.

With its experience in the financial markets, a strong market reputation, large

shareholder base and unique consumer franchise, HDFC was ideally

positioned to promote a bank in the Indian environment.

Mission

HDFC Bank's mission is to be a World-Class Indian Bank.

Objective

The objective is to build sound customer franchises across distinct businessesso as to be the preferred provider of banking services for target retail andwholesale customer segments, and to achieve healthy growth in profitability,

consistent with the bank's risk appetite.


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The bank is committed to maintain the highest level of ethical standards,professional integrity, corporate governance and regulatory compliance.HDFC Bank's business philosophy is based on four core values - OperationalExcellence, Customer Focus, Product Leadership and People.

Capital Structure

The authorized capital of HDFC Bank is Rs.550 crore (Rs.5.5 billion). Thepaid-up capital is Rs.424.6 crore (Rs.4.2 billion). The HDFC Group holds19.4% of the bank's equity and about 17.6% of the equity is held by the ADSDepository (in respect of the bank's American Depository Shares (ADS)Issue). Roughly 28% of the equity is held by Foreign Institutional Investors(FIIs) and the bank has about 570,000 shareholders. The shares are listed onthe The Stock Exchange, Mumbai and the National Stock Exchange. Thebank's American Depository Shares are listed on the New York Stock

Exchange (NYSE) under the symbol "HDB".

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an

enviable network of over 1229 branches spread over 444 cities across India.

All branches are linked on an online real-time basis. Customers in over 120

locations are also serviced through Telephone Banking. The Bank's

expansion plans take into account the need to have a presence in all major

industrial and commercial centres where its corporate customers are located

as well as the need to build a strong retail customer base for both depositsand loan products. Being a clearing/settlement bank to various leading stock

exchanges, the Bank has branches in the centers where the NSE/BSE have a

strong and active member base.

The Bank also has a network of about over 2526-networked ATMs across

these cities. Moreover, HDFC banks ATM network can be accessed by all

domestic and international Visa/MasterCard, Visa Electron/Maestro,

Plus/Cirrus and American Express Credit/Charge cardholders.

PRODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING SERVICES

A. Accounts & DepositsSavings Account

Regular Savings Account

Savings Plus Account

Savings Max Account Senior Citizens Account


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No Frills Account

Institutional Savings Account

Payroll Salary Account

Classic Salary Account

Regular Salary Account

Premium Salary Account

Defence Salary Account

Kid's Advantage Account

Pension Saving Bank Account

Family Savings Account

Kisan No Frills Savings Account

Kisan Club Savings Account

Current Account

Plus Current Account

Trade Current Account

Premium Current Account

Regular Current Account

Apex Current Account

Max Current Account

Reimbursement Current AccountFixed Deposit

Regular Fixed Deposit

Super Saver Account

Sweep-in Account

Recurring DepositDemat AccountSafe Deposit Locker

B. Loans

Personal Loans

Home Loans

Two Wheeler Loans

New Car Loans

Used Car Loans

Education Loan Express Loans

Loan against Securities

Loan against Property

Commercial Vehicle Finance

Working Capital Finance

Construction Equipment Finance

C. Investments & Insurance

Mutual Funds

Insurance

Bonds


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Financial Planning

Knowledge Centre

Equities & Derivatives

Mudra Gold Bar

D. Forex Services

Trade Finance

Travelers Cheques

Foreign Currency Cash

Foreign Currency Drafts

Foreign Currency Cheque Deposits

Foreign Currency Remittances

Forex Plus Card

E. Payment Services

Net Safe Prepaid Refill

Bill Pay

Direct Pay

Visa Money Transfer

E-Monies Electronic Funds Transfer

Excise & Service Tax Payment

F. Access Your Bank - One View

Insta Alerts

Mobile Banking ATM

Phone Banking

Branch Network

G. Cards

Silver Credit Card

Gold Credit Card

Woman's Gold Credit Card

Platinum plus Credit Card

Titanium Credit Card Value plus Credit Card

Health plus Credit Card

HDFC Bank Idea Silver Card

HDFC Bank Idea Gold Card

2. WHOLESALE BANKING SERVICES

Funded Services

Non Funded Services

Value Added Services

Internet Banking

Clearing Sub-Membership


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RTGS sub membership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

3. NRI BANKING SERVICES

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Payment Services

Net Safe

Bill Pay

Insta

Pay

Direct Pay

Visa Money

Online Donation

Remittances


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RESEARCH METHODOLOGY

1. TITLE OF THE STUDY:-

The title of the study is EDUCATION LOAN at HDFC Bank.

2. Duration of the project:-

The duration of the project was from 18TH may to 1ST july.

3. Objective of the study:-

My basic aim was to know all about EDUCATION LOAN at HDFC Bank and

to do the market analysis of comparative credit of Education Loan.

4. Type of Research:-

I Used Comparative Types of Research to obtain The Detail Information

About The education loan of HDFC Bank.This research Helps the Researcher

TO Get the Depth Knowledge about Anything with Minimum Expenditure of

efforts and time.


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5. Sample Size and method of selecting sample :-

Sample Size

My sample size for this project was 250 respondents. Since it was notpossible to cover the whole universe in the available time period, it wasnecessary for me to take a sample size of 250 respondents.

Research Design

Problem identification

Data collection related to Education Loan Policies in Nationalized Banks.

Studying the Education Loan Policies of HDFC Bank.

Sampling Technique

Convenience sampling

It is purposive or non-probability sampling.

This sampling method involves deliberate or purposive selection of

particular units of the universe for consulting a sample, which

represents the universe and when elements are selected for inclusionin the sample based on the ease of access, it is called convenience

sampling.

6.Scope of study:-

To acquire new customer by convincing them and to promote thebenefits of those which are provided by the bank.

To find the different way of convincing customers.

To study brand image of the bank.

To increase the business of the bank.

7. LIMITATIONS OF STUDY:-

1. The survey is conducted to in very short time. Hence shortest of time

is a big limitation for the survey.


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2. We use questionnaires tool for data collection. People do not give

correct answer about bank account and services.

3. People are not so much educated in the research area.

4. The area of research is Bikaner is too vast so it is not possible to

cover the all area.

5. Peoples are very busy in work. They do not give enough time for

answer of questions

FACTS AND FINDINGS

1. DO YOU KNOW ABOUT HDFC BANK?

Sample Size -250

Yes- 100\250

No- 75\250

Somewhat- 75\250

40%30% 30%

0%

10%

20%

30%

40%

50%

YES NO SOME WHAT

Series1


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2. ARE YOU SATISFIED WITH THE PRODUCTS AND SERVICES

OFFERED BY THE HDFC BANK?

Sample Size -250

Yes- 90\250

No- 135\250

Somewhat- 25\250

55%35%

10%

YES NO SOME WHAT


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3 DO YOU THINK THAT THE HDFC BANK PROVIDE BETTER SERVICES

COMPARE TO OTHER BANKS?

Sample Size -250

Yes- 120\250

No- 55\250

Somewhat- 75\250

48%

22%30%

0%

10%

20%

30%

40%

50%

YES NO SOME

WHAT

YES

NO

SOME WHAT


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4 WOULD YOU LIKE TO GIVE ANY SUGGESSTION ABOUT ANY

IMPROVEMENT IN OUR BANK?

Sample Size -250

Yes- 185\250

No- 65\250

YES, 75%,

75%

NO, 25%,

25%

YES

NO


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5. IF YOU OPEN AN ACCOUNT IN HDFC BANK WHICH ACCOUNT

WOULD BE?

Sample Size -250

Saving- 150\250

Salary- 50\250

Current- 50\250

0%

20%

40%

60%

80%

SAVING A/C SALARY A/C CURRENT A/C

Series1

6. WHAT DO YOU THINK ABOUT THE SUCCESS OF HDFC BANK?Sample Size -250

Better- 100\250

High- 75\250


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High cust.- 75\250

40%

30%

30%

BETTER SERVICE HIGH CUSTOMIZATION

BETTER RELATION SHIP

ANALYSIS AND INTERPRETATION

Education Loan Schemes Of Various Nationalized Bank

Eligible Courses

All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses

Other courses approved by UGC/Government/AICTE etc.Expenses considered for loan

Fees payable to college/school/hostel Examination/Library/Laboratory fees

Purchase of Books/Equipment/Instruments/Uniforms

Caution Deposit/Building Fund/Refundable Deposit (maximum 10%

Tution fees for the entire course)

Travel Expenses/Passage money for studies abroad

Purchase of computers considered necessary for completion of course

Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project

work etc.


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Amount of Loan

For studies in India, maximum Rs. 10 lacs

Studies abroad, maximum Rs. 20 lacs

Interest Rates

For loans up to Rs.4 lacs - 12.25% p.a. Floating

For loans above Rs.4 lacs - 13.25% p.a. Floating

Processing Fees

No processing fee/ upfront charges

Deposit of Rs. 5000/- for education loan for studies abroad which will

be adjusted in the margin money

Repayment

Repayment will commence one year after completion of course or 6 months

after securing a job, whichever is earlier.

Place of Study Loan AmountRepayment Period

in Years

Studies in India Rs. 10.0 lacs 5-7

Studies Abroad Rs. 20.0 lacs 5-7

Security

Amount

For loans upto Rs. 10.00 lacs for Studies

in India and upto Rs. 20.00 lacs for

studies abroad

Upto Rs. 4

lacsNo Security


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Above Rs.

4 lacs to

Rs. 7.50

lacs

Collateral security in the form of suitable third

party guarantee. The bank may, at its

discretion, in exceptional cases, weive third

party guarantee if satisfied with the net-

worth/means of parent/s who would beexecuting the documents as "joint borrower".

Above Rs.

7.50 lacs.

Tangible collateral security of suitable value,along with the assignment of future income ofthe student for payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In

case of married person, co-obligator can be either spouse or the parent(s)/

parents-in-law

Margin

For loans up to Rs.4.0 lacs : No Margin

For loans above Rs.4.0 lacs:

o Studies in India: 5%

o Studies Abroad: 15%

Documentation Required

Completed Education Loan Application Form.

Mark sheets of last qualifying examination

Proof of admission scholarship, studentship etc

Schedule of expenses for the specified course

2 passport size photographs Borrower's Bank account statement for the last six months

Income tax assessment order, of last 2 years

Brief statement of assets and liabilities, of the Co-borrower

Proof of Income (i.e. Salary slips/ Form 16 etc)


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Baroda Gyan

A loan product specially designed for students pursuing Graduation, Post -

Graduation, Professional & Other courses in India. Bank of Baroda extends a

helping hand to energize your studies and promote education of the youth.

No processing charges.

No Margin on loans upto 4 lacs.

Free Debit Card.

Terms & Conditions

Courses Eligible:

All Graduation courses.

All Post Graduation courses & Doctorate courses.

Professional Courses viz. Engineering, Medical, Agriculture,

Veterinary, Law, Dental, Management, Computer, Ayurved,Homeopathy, Physiotherapy, Hotel Management, Hospital


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Management, Interior Designing, Architecture, Event Management,

Mass Communication, Fashion Technology, etc.

Computer certificate courses of reputed institutes accredited to Dept. of

Electronics or institutes affiliated to Universities.

Courses like C.A, ICWA, CFA, CS, etc.

Courses offered in India by reputed foreign Universities.

Evening courses of institutes approved by

State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.

Courses offered by National Institutes and other reputed private

institutions. The College/Institute must have been approved by the

State/Central Govt./UGC/AICTE,etc.

Student Eligibility :

Should be Resident Indian.

Secured admission to either of above courses

Coverage of expenses:

Fee payable to college / Institution / University.

Examination / Library / Laboratory Fee.

Fee and other charges payable to hostel.

Purchase of books / equipments / instruments.

Personal Computers / Laptops wherever required.

Caution deposit / building fund / refundable deposit supported by

institution bills / receipts.

Any other expenses required to complete the course - like study tours,

project works, thesis, etc.

Maximum Loan Amount: Rs.10.00 Lacs.


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Margin:

Upto Rs. 4.00 lacs :- NIL

Above Rs. 4.00 lacs :- 5%

Margin is to be contributed on pro rata basis on year to year basis as

and when disbursements are availed.

Repayment Holiday / Moratorium Period:

Course period + 1 year or 6 months after getting job, whichever is

earlier.

Repayment Period:

The loan is repayable in 5-7 years after the above period.

Security:

Upto Rs.4 lacs: No security

Above Rs. 4 lacs: Collateral in the form of a suitable third party

guarantee along with assignment of future income.

Rate of Interest:

Simple interest to be charged at monthly rests during the repayment

holiday / moratorium period.

1% interest concession is provided if interest debited during repaymentholiday is serviced.

1% Concession in rate of interest to loans for girl student.

Penal interest @ 2% p.a. on overdue amount, if the loan amount

exceeds Rs.4.00 lacs

Baroda Scholar

Bank of Baroda presents financial assistance to students going abroad forProfessional / Technical studies. The loan offering is designed to empower


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you with the financial capability to realize your dreams... Achieve your goals...Reach out to the maximum limits...

Terms & Conditions

Eligibility of Courses:

Graduate/Post Graduate / Doctorate / Job Oriented Professional / TechnicalCourses offered by reputed Universities overseas.

Student Eligibility:

Should be an Indian National.

Secured admission to Professional/Technical Courses at foriegn

Universities/Institutions.

Coverage of expenses (for overseas studies):

Admission/Tuition fees to College/University.

Hostel/Mess charges.

Examination/Library/Laboratory fee.

Purchase of books/equipments/instruments.

Caution deposit/building fund/refundable deposit supported by

institution bills/reciepts.

One way travel expenses/Passage money.

Purchase of computers if essential for completion of the course.

Any other expense required to complete the course e.g. study tour,project work, thesis etc.

Maximum amount of loan:

Graduation & Other Courses up to 3 years duration: Rs.10 Lacs

Post graduation and other advanced studies: Rs.15 Lacs

Margin: 15%


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Repayment Period /Moratorium Period:

Course period + 1 year or 6 months after getting job, whichever is

earlier.

The loan is repayable in 5-7 years after the above period.

Security:

Upto Rs.4.00/- lacs : No security

Above Rs. 4.00/- lacs upto Rs. 7.5 lacs : Collateral in the form of a

suitable third party guarantee.

Above Rs. 7.5 lacs : Collateral security equal to 100% of loan amount.

Rate of Interest:

Simple interest during repayment holiday/moratorium period.

1% interest concession, if interest debited during the repayment

holiday is serviced.

1% Concession in rate of interest to loans for girl student.

Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lac

Oriental Bank of Commerce

Eligibility:Indian nationals not above 45 years of age those who secured admission in a

recognized course of an approved university (AICTE approved institutions).

Amount of Loan:

Education in India - Max. Rs.7.50 lacs.

Education Abroad - Max. Rs.15.00 lacs.

Security:For Loans upto Rs.4.00 lac-No Collateral Security

Co-obligation of parents/guardian if student is minor.


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For Loans above 4 lacs and upto Rs.7.50 lacs

No Collateral Security required,

Co-obligation of parents/guardian

One satisfactory third party guarantee

Above Rs.7.50 lacs

Co-obligation of parents/guardian is obligatory.

Mortgage of immovable property or any other tangible security like pledge of

NSC/UTI/LIC (Surrender Value)/Bonds etc. having value at least equal to

100% of loan. Extension of charge on property already mortgaged subject to

adequate residual value of security.

Co-obligations of parents is must for loans to students studying abroad

irrespective of the amount of loan/age of the borrower.

Margin:

Upto 4 lacs - NIL

Above 4 lacs for education in India - 5%

Education Abroad- 15%

Rate of Interest:10% per annum

Concession on Rate of Interest:Simple Interest shall be charged during study/moratorium period. The

concession of 1% in rate of interest to be allowed, if interest is serviced

regularly during the study/moratorium period.

Repayment:Within 84 EMIs commencing 12 months after course or 6 months after getting

the job, whichever is earlier?


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PUNJAB NATIONAL BANK

The Scheme enables all type of needy students viz., students of +2 stage,

Graduation courses B.A., B.Com., B.Sc., etc., Post-Graduation courses,

Masters in Ph.D; Professional courses, Engineering, Medical, Agriculture,

Veterinary, Law, Dental, Management, Computer etc., Computer Certificate

courses of reputed Institutes accredited to Department of Electronics or

institutes affiliated to University; Courses like ICWA, C.A., CFA, etc., courses

conducted by IIM, IIT, IISc, XLRI, NIFT, etc., Evening Courses of reputed

Institutes; Diploma/Degree courses conducted by Colleges/Universities

approved by UGC/Govt./AICTE/AIBMS/ICMR, etc., Courses offered by

National Institutes and other reputed Private Institutes.

Students should approach the branch nearest to the place of domicile.

Punjab National Bank is now offering concession in interest in education Loan

Scheme. The concession in interest rates is available to new borrowers who

will avail education loan from the bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer

friendly thus facilitating aspirant students to avail education loan on

comfortable & affordable terms. .


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Further, Interest is charged monthly on simple basis during the repayment

holiday/moratorium period & concession of 1% in rate of interest is also

allowed provided the same is serviced regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide

life insurance cover for education loan borrowers.

The insurance would cover study period as well as repayment period, he said,

adding in case of any mishap, the insurance company would take care of the

loan repayment rather than the aggrieved parents.

Eligibility

Student eligibility


Secured admission to Professional / Technical

courses through Entrance Test / Selection process.

Secured admission to foreign University / Institutions.

Student should have secured pass marks in the

qualifying Examination for admission to Graduation

Courses.

Expenses considered for Loan

Fee payable to College / School / Hostel

Examination / Library / Laboratory fee.

Purchase of books / equipments / instruments /

uniforms. Secured admission to foreign University /

Institutions.

Caution Deposit / Building Fund / Refundable Deposit


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supported by Institution Bills / Receipts.

Travel Expenses / Passage money for studies

abroad.

Purchase of computers - essential for completion of

the Course.

Boarding and lodging expenses in recognised

Boarding Houses / private accommodations

Any other expense required to complete the course -

like study tours, project work, thesis etc.

Quantum of Finance

Need based finance, subject to repaying capacity of the parents / students

with margin and the following ceilings: -

For studies in India: Maximum Rs.10.00 lacs.

For studies abroad: Maximum Rs.20.00 lacs.

Margin

Upto Rs.4.00 lacs: Nil.

Above Rs.4.00 lacs: Studies in India 5%

Studies Abroad 15%

Securit

y

Upto Rs.4.00 lacs: No Security.


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Above Rs 4.00 lacs and

Upto Rs 7.5 lacs:

3rd party guarantee acceptable

to the Bank.

Above Rs 7.5 lacs:

Collateral Security of Suitable

value or suitable 3rd party

guarantee.

The security can be in the form of land / building / Govt. Securities / Public

Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares /

Debentures, Bank Deposit in the name of the student parent / guardian or any

other third party with suitable Margin.

The document should be executed by both the student and the

parent/guardian.

Rate of Interest

Upto Rs. 4 lacs BPLR+Term Premia minus 1.25

Above Rs.4 lacs BPLR + Term Premia

Term premia of 0.50% p.a. shall be added for repayment period of 3

years & above.

The interest shall be debited monthly on simple basis during the

Repayment holiday/ Moratorium period.

Penal Interest @ 2% be charged for above Rs.4.00 lacs for the

overdue amount and overdue period.

1% Interest concession for servicing of interest during the study period

regularly is allowed at the time of start of repayment period of loan.

Repayment

Repayment Holiday /

Moratorium

Course period + 1 year OR 6 months

after getting job, whichever is earlier.

The Principal and interest is to be repaid in 5-7 years after

commencement of repayment. If the student is not able to complete the

course within the scheduled time, extension of time for completion of

course may be permitted for a maximum period of 2 years.

Upfront Fee


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Nil

Documentation Charges

Upto Rs. 4 lacs Rs.300/- + Service Tax & Education Cess

Above Rs.4 lacs Rs.500/- + Service Tax & Education Cess

Additional Benefits provided to the students by

PNB

Reimbursement of related expenses such as admission fee,

monthly fee, Boarding and lodging expenses in recognized

Boarding Houses etc. already incurred by way of loan taken

from own sources (to meet the contingency) by the applicant,if claimed within 3 (three) months of such payment and

before consideration of the loan by the Bank.

Second time Education Loan can be sanctioned to the same

student borrower for completion of next higher course.

Check List

While applying for the loan, the borrower is required to furnish the followinginformation/papers:

Loan application on Bank's format.

Passport size photograph

Proof of Address (Permanent) / ID Proof.

Proof of Age.

Proof of having secured pass marks in last qualifying examination.


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Letter of admission in professional, technical or vocational courses.

Prospectus of the course wherein charges like Admission Fee,

Examination Fee, Hostel Charges etc. are mentioned.

Details of Assets & Liabilities of parents.

In case loan amount is above Rs.4.00 lacs:

Particulars of Guarantors and details of their Assets & Liabilities.

If immovable property offered as Collateral Security - copy of Title Deed,

Valuation Certificate and Non-encumbrance Certificate from approved Lawyer

of the Bank.

Photocopy of Passport & Visa, in case of study abroad.

Any other document/information, depending upon the case and

purpose of the loan.

(The above CHECKLIST is only illustrative, not exhaustive. For details, please contact

our nearest Branch Office).

EDUCATION LOAN SCHEME PNB SARVOTTAM SHIKSHA

OBJECTIVE


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The Scheme aims at providing financial assistance to deserving students who

have secured admission for pursuing/are pursuing regular courses in the

IDENTIFIED educational institutions.

Punjab National Bank is now offering concession in interest in education Loan

Scheme. The concession in interest rates is available to new borrowers who

will avail education loan from the bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer

friendly thus facilitating aspirant students to avail education loan on

comfortable & affordable terms. Bank has reduced interest rates on education

loan up toRs.4.00 lac under PNB Sarvottam Shiksha Scheme

Further, Interest is charged monthly on simple basis during the repayment

holiday/moratorium period & concession of 1% in rate of interest is also

allowed provided the same is serviced regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide

life insurance cover for education loan borrowers

The insurance would cover study period as well as repayment period, he said,

adding in case of any mishap, the insurance company would take care of the

loan repayment rather than the aggrieved parents.

Eligibility

a) All types of professional/technical courses conducted by identified

institutions as per list annexed

b) A student is eligible for loan provided he/she is an Indian National

Secured admission to Professional / Technical courses of one of the identified

educational institutions through Entrance Test / Selection process.

In case of education in the foreign University / Institution (for which HO

approval is required for its coverage under the Scheme), the student

should have got necessary Passport / VISA formalities completed.

c) Expenses considered for Loan

Fee payable to College / Institute / Hostel.

Examination / Library / Laboratory fee. Purchase of books / equipments / instruments.


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Boarding & Lodging expenses in Boarding Houses subject to production

of Bills verified by the student borrower.

Travel Expenses / Passage money for studies abroad.

Purchase of computers - essential for completion of the Course.

Any other expense required to complete the course - like study tours,project work, thesis, etc.

QUANTUM OF FINANCE

Need based finance, subject to repaying capacity of the parents / students,

arranging margin and the following ceilings

Studies in India Maximum Rs. 7.50 lacs.

Studies abroad Maximum Rs.15.00 lacs.

Margin

Upto Rs.4.00 lacs Nil

Above Rs.4.00 lacsStudies in India 5%

Studies Abroad 15%

Note: Margin may be brought-in on year-to-year basis as and when

disbursements are made on a pro-rata basis.

Security

Upto Rs. 4.00 lacs No security

Above Rs.4 lacs & upto

Rs.7.50 lacs

A suitable 3rd party guarantee, which can be waived if parents

of the student has sufficient means

Above Rs 7.5 lacsCollateral Security of Suitable value or suitable 3rd party

guarantee.

NOTE:

The documents should be got executed by both the student and the parent /

guardian.

The security can be in the form of land / building / Govt. Securities / Public


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Allahabad Bank Education Loan Scheme

Eligibility Criteria:

(a) Student eligibility:

Student be an Indian National

Secured admission to professional/ technical courses in India orAbroad through Entrance Test / Merit based Selection process.

(b) Courses Eligible:

Studies in India

Graduation Courses- B.A, B.COM, B.Sc. etc.

Post Graduation Courses: Masters Courses, Ph D, etc.

Professional Courses: Engineering, Medical, Agriculture, Veterinary,

Law, Dental, Management, Computer etc.

Computer Certificate Courses of reputed Institutes accredited to

Department of Electronics or Institutes affiliated to University.

Courses like- ICWA, CA, CFA etc.

Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.

Regular Degree/ Diploma courses like Aeronautical, pilot training,

shipping etc., approved by Director General of Civil Aviation/ Shipping,

if the course pursued abroad, the Institute should be recognised by the

competent local aviation/ shipping authority.

Courses offered in India by reputed foreign universities. Evening Courses of approved Institutes.

Other Courses leading to diploma/degree etc conducted by the

Colleges/ Universities approved by UGC/Govt/AICTE/AIBMS/ICMR

etc.Studies Abroad:

Graduation: For Job oriented professional/technical courses offered by

reputed Universities.

Post Graduation: MCA, MBA, MS etc.


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Courses conducted by CIMA London, CPA in USA etc.

Regular Degree/ Diploma courses like Aeronautical, pilot training,

shipping etc., the Institute should be recognized by the competent local

aviation/ shipping authority.

Quantum of Loan:

Need based finance subject to repaying capacity of the parents / students with

following ceilings:

Studies in India: Maximum Rs 10.00 lacs

Studies abroad: Maximum Rs. 20.00 lacs.

Expenses Considered for Loan

Fee payable to College / School /Hostel Examination/Library/Laboratory Fee

Purchase of Books / Equipments/ Instruments/ Uniforms.

Caution Deposit/ Building Fund/ Refundable Deposit supported by

Bills/Receipts of the Institution, subject to the conditions that amount

does not exceed 10% of the total tuition fees for the entire course.

Travel Expenses/Passage Money for studies abroad.

Purchase of Computers essential for completion of the course.

Insurance premium for student borrower.

Any other expenses required to complete the course, such as- Study

Tours, Project Work, and Thesis etc.

Margin:

For loan upto Rs 4.00 lacs: NIL

For loan above Rs 4.00 lacs:

(i) Studies in India: 5%

(ii) Studies abroad: 15%

Scholarship / Assistantship to be included in Margin.

Margin Money to be brought on year-to-year basis and disbursementsare made on a pro-rata basis.


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Rate of Interest:

Loan Upto Rs. 4.00 lacs

For students of IIT / IIM/

ISB*

PLR-1.75%

For Others PLR-0.75%

Loan above Rs. 4.00lacs

For students of IIT / IIM/

ISB*

PLR-1.75%

For Others PLR-1.00%

*ISB means Indian School of Business; Hyderabad

Girl students may be provided a special relief of 1.00% in all cases as above.

Application of Interest:

Simple interest during moratorium period.

Service interest during moratorium period regularly and avail a special

discount of 1.00% in interest rate.

Repayment:

Repayment Holiday / Moratorium is Course Period + 1 year or 6 months aftergetting job, whichever is earlier.

Loan to be repaid within a maximum period of 7 years after commencement of

repayment.

Security:

For IIT/IIM/ISB*

For loan upto Rs 10.00 lacs- No collateral security is required. Co-obligation*

of parents/ guardian required


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*ISB means Indian School Business, Hyderabad

For others

For loan upto Rs 4.00 lacs: No collateral security is required. co-obligation*

required For loan above Rs 4.00 lacs and upto Rs 7.50 lacs: Satisfactory thirdparty guarantee & Co-obligation* required.

For loan above Rs 7.50 lacs: (a) Co-obligation * of parents/ guardian

together with tangible collateral security of suitable value covering full loan

amount, alongwith the assignment of future income of the student for payment

of installments.

*(The loan documents would be executed by both the student and the parent/

guardian as joint-borrower i.e. co-obligator. The co-obligation should be

parent / guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law.)

Processing Fee:

Processing Fees/ Documentation Charge:

For studies in India- Nil

For studies abroad -Rs.500/- upfront subject to the conditions that this amount

would be adjusted against the loan amount once the loan is availed from us.

Mortgage Charges:

Actual expenses, if any, will be borne by the Student/Parent or Guardian.

Delivery Channel

From all of our branches (Presently more than 2150) spread throughout the

country.

On-line sanction for leading 250 institutions within 72 hours.

Value added Service

FREE Debit Card

-For SB account holders in networked branches.

Insurance:

Group Life Insurance Cover

-For entire loan liability in tie-up with LIC

(One time upfront premium, can also be financed by adding into project cost.),

Prospective borrowers, who are not covered under the group insurance

scheme, will be allowed to take a single premium term insurance cover equalto the loan amount, individually on their own or premium being a component


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Andhra Bank

Eligibility:

Age: 12-30 years for studies in India

18 to 35 years for study in other countries

Quantum of Loan:Maximum Rs. 10.00 Lacs for studies in India

Rs. 20.00 Lacs for Studies Abroad

Purpose of Loan:

To meet cost of Tuition fee, Hostel fee, Examination fee, Books, Project

work, Study tours, and Refundable deposits.

PLUS

AIR PASSAGE AND MAINTENANCE, FOR ABROAD STUDIES.

Margin:

Upto Rs.4.00 Lacs Exempted

Above Rs.4.00 Lacs 5% In India 15% for Abroad Studies.

Security:

Upto Rs.4.00 Lacs guarantee of parent

Rs.4.00 to 7.50 lacs - guarantee of the parent

Above Rs.7.50 Lacs--Collateral Security of suitable value & guarantee of

the parent

Interest:

Upto Rs.4.00 Lacs--(BMPLR -1.25) - Presently 11.75%

Above Rs.4.00 lacs--(BMPLR + 0.50) presently 13.50%

(BMPLR at present: 13.00%)

Concession of 0.50% for women for sanctions after 01.07.2005

DIFFERENT RATES OF INTEREST - DIFFERENT INSTITUTES


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Syndicate Banks involvement in education dates back to the decades prior to

the Nationalization of Banks. The Bank was also the first to set up a string of

Rural Training Institutes aimed at empowering the young India in rural areas

through entrepreneurial education and training.

Continuing this commitment to education, the Bank has introduced a

comprehensive Education Loan Scheme-SyndVidya, which is more student

responsive and parent friendly. The Scheme covers the entire spectrum ofeducational needs from the school education to super specialty courses

including overseas courses. The scheme makes available need based finance

to cover expenses related to education such as fees payable to College,

Hostel, Examination, Library, Laboratory fees, caution deposit/building

fund/refundable deposit upto 10% of tuition fee, Cost of Books, Equipments,

Travel expenses for studies abroad etc. Only capitation fees, donation or

external coaching fee are not covered. The loan scheme carries liberal limits

of Rs.10.00 lac for courses within the country and Rs.20.00 lac for overseas

courses. The scheme which is attractively priced at the Bank's prime lending

rate and other details are furnished below:

Eligibility Criteria

Any student who is a major representing himself or a minor student

represented by parent or guardian of Indian nationality.

Must have secured admission on the basis of merit to professional/

technical/other courses through entrance test/selection process.

Deviation/relaxation is also permitted under special circumstances.

Must have secured admission to foreign universities/Institution (for studies

abroad).

Courses Eligible

a) Studies in India.

Graduation: B.A., B.Com, B.Sc., etc.

Post graduation: Masters & PhD.


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Professional courses: Engineering, Medical, Agriculture, Veterinary, Law,

Dental Management, and Computer etc. In respect of Management studies,

apart from University affiliation, All India Council for Technical Education

should also approve course. For Computer education, the recognised training

Institute should have accreditation of DOE, Govt of India to conduct thecourse under Department of Electronics Accreditation of Computer Course

(DOEACC) Scheme.

Computer certificate courses of reputed institutes accredited to Department of

Electronics or Institutes affiliated to Universities.

Courses like ICWA, CA, CFA etc.

Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.

Courses offered in India by reputed foreign universities.

Evening courses of approved institutes.

Other courses leading to Diploma / Degree etc. conducted by colleges /

universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc.

Courses offered by National Institutes and other reputed private institutions

acceptable to the Bank.

b) Studies abroad.

Graduation: For job oriented professional/technical courses offered by

reputed universities.

Post Graduation: MCA, MBA, MS. Etc.

Courses conducted by CIMA-London, CPA in USA etc.

Other Foreign Diploma courses are not eligible.

Student Eligibility


Secured admission on the basis of merit to professional/technical

courses through Entrance Test/Selection process.

Deviations/relaxations are also permitted under special circumstances.

Secured admission to foreign university / institutions.

The student who is a major representing himself or a minor student

represented by parent or guardian.


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Quantum of Loan

Need based finance to meet expenses such as fee payable to college / school

/ hostel, examination fee; cost of books, travel / passage fare for studiesabroad etc.

Capitation fee / donation / external coaching fee are not eligible for finance.

Maximum of Rs.10.00 lac for studies in India and Rs.20 lac for studies

abroad.

Margin

For loans upto Rs.4 lac - No Margin required.

For loans above Rs.4 lac - 5% for study in India and 15% for study

abroad.

Security

For loans upto Rs.4.00 lac - NIL.

For loans above Rs.4.00 lac and upto Rs.7.50 lac - Collateral in the

form of satisfactory third party guarantee acceptable to the Bank.

For loans above Rs.7.50 lac - Collateral security with 25% margin

covering the loan amount and assignment of future income of the

student for payment of loan installments.

NOTE: In all the above cases, the parent / guardian shall join the transaction

as co-borrower

Interest

(PLR presently 13.00%)

For loans upto Rs.7.50 lacs - PLR minus 1.00%

For loans above Rs.7.50 lacs - PLR minus 1.50%

No processing charges/service charges are levied for educational

loans

Repayment

In 5 to 7 years commencing one year after completion of the course or6 months after securing the job whichever is earlier.


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1. OBJECTIVE & PURPOSE:

The Star Educational Loan Scheme aims at providing financial support from

the bank to deserving/ meritorious students for pursuing higher education in

India and abroad. The main emphasis is that every meritorious student is

provided with an opportunity to pursue education with the financial support on

affordable terms and conditions.

2. ELIGIBILITY CRITERIA:

a) STUDENT'S ELIGIBILITY:

Should be an Indian National;

Secured admission to professional/technical courses in India or Abroad

through Entrance Test/Merit based selection process.

Good academic career. The student should not have outstanding education loan from any other

Institution.

Father/Mother should be co-borrower.

Branch nearest to the permanent residence of student will consider the

loan.

b) ELIGIBLE COURSE:

(i) Studies in India (Indicative list):

Graduation courses: BA, B.Com. B.Sc., etc.

Post Graduation courses: Masters & PhD.

Professional courses: Engineering, Medical, Agriculture, Veterinary,

Law, Dental, Management, Computer, etc

Computer certificate courses of reputed institutes accredited to

Department of Electronics or institutes affiliated to university.

Courses like ICWA, CA, CFA, etc.

Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other

Institutes set up by Central/State Govt. Evening courses of approved institutes.


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Other courses leading to diploma/degree, etc. conducted by

colleges/universities approved by UGC/Govt./AICTE/AIBMS/ ICMR,

etc.

Courses offered by National Institutes and other reputed private

institutions with prior approval of Head Office. Courses offered in India by reputed foreign universities with prior

approval of Head Office.

Note:

Professional courses not approved by AICTE and conducted by

Institutes not recognized by State Universities is outside the purview of

the eligibility under the scheme.

Special scheme for students admitted to IITs, at concessional rate of

interest.

(ii) Studies abroad:

Graduation: For job oriented professional/technical courses offered by

reputed universities.

Post Graduation: MCA, MBA, MS, etc.

Courses conducted by CIMA - London, CPA in USA, etc.

3. EXPENSES CONSIDERED FOR LOAN:

Fee payable to college/school/hostel*

Examination/Library/Laboratory fee.

Purchase of books/equipments/instruments/uniforms.

Caution deposit/building fund/refundable deposit supported by

Institution bills/receipts.

Travel expenses/passage money for studies abroad.

Purchase of computers - essential for completion of the course.

Insurance cover for the student.

Any other expense required to complete the course - like study tours,project work, thesis, etc.

* As per brochure/ demand letter from the institution.


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4. QUANTUM OF FINANCE:Need based finance subject to repaying capacity of the parents/students with

margin and the following ceilings:

Studies in India - Maximum Rs.10.00 lakh Studies abroad - Maximum Rs.20.00 lakh.

5. MARGIN:Upto Rs.4 lakh : Nil

Above Rs.4 lakh - Studies in India : 5%

Studies Abroad : 15%

Scholarship could be included in margin.

Margin to be brought in on year to year basis as and when disbursements

are made.

6. SECURITY:Upto Rs. 4 lakh : No security

Above Rs.4 lakh & upto Rs.7.5 lakh : Collateral security in the form of a

suitable third party guarantee.

Above Rs.7.5 lakh : Collateral security of suitable value or at the discretion of

the Bank suitable third party guarantee alongwith the assignment of future

income of the student for payment of installments.

Note : The security can be in the form of land/building/Govt. Securities/PublicSector Bonds/NSC/KVP/LIP/ Banks Term Deposit etc.,in the name of

Student/Parent/Guardian/Guarantor with suitable margin.

7. RATE OF INTEREST*:

Upto Rs.7.50 lacs - 1.75% below BPLR, Min. 11.00% p.a.

Above Rs.7.50 lacs - 0.75% below BPLR, Min. 12.00% p.a.

Simple interest during the repayment holiday/moratorium period.

Penal interest @2% for loans above Rs.4 lakh for the overdue amount

and overdue period.

Int. Concession of 0.50%p.a. for woman beneficiaries

1% int. concession if interest is serviced during moratorium period,

where repayment holiday is specified for interest/repayment under the

scheme (concession available for moratorium period)

8. INSURANCE:All the student borrowers are offered a specially designedTerm Insurance cover and the premium can be included as an item of finance.


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9. REPAYMENT:Repayment holiday/Moratorium: Course period + 1 year or 6 months after

getting job, whichever is earlier.

The loan is to be repaid in 5-7 years after commencement ofrepayment.

10. BANK CHARGES:

Processing/upfront charges For Studies in India- NIL.

For Studies Abroad Rs.1000 for

issuance of sanction letter for

obtention of VISA.

Amount refundable on availing loan.

Document /Stamp Charges At Actuals

Change of Institution Studies in India Rs.250/-

Studies Abroad- Rs.500/-

Agreement(copy to borrower)

Xerox charges

Loan upto Rs.2 lacs- Rs. 25/-*

Loan over Rs.2 lacs- Rs.100/-*

Plus copying charge of Rs.1 per

page


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Indian Bank provides convenient educational loans for meritorious/deserving

students to acquire knowledge and skill in the field of their interest. By playing

beacon, new-generation's quest for success is ably supported, paving way for

Generation Banking.

Eligibility

The applicant should be an Indian National.

He / She should have secured admission to professional / technical

courses in India or abroad through Entrance Test / Merit based

selection process.

Age of the Student - 15 to 30 Years (For Studies in India)

Age of the Student - 18 to 35 Years (For Studies in Abroad)

Purpose

To meet the cost of education covering fee payable to college /

school / hostel, exam fees, purchase of books / equipments,

travel expenses / passage money for studies abroad, purchase

of computers essential for completion of the course etc.

Caution Deposit, Building fund/ refundable deposit supported

by institution bills/receipts, subject to a maximum of 10% of total

tuition fees for the entire course.

Insurance premium for student borrower.

Course of Study

Maximum Permissible

Amount of Loan

Place of availment

For Studies in India - Rs.10.00*

lakhs

For Studies Abroad - Rs.20.00*

lakhs

* Higher quantum of loan also

can be considered in

deserving and meritorious

cases.

The loan can be availed

from the branch nearest

to the place of domicile.

Margin Rate of Interest

Studies in India

1. Diploma/Graduation/Post-graduation courses in various disciplines.

2. Computer certificate courses of reputed institutes accredited to The

Department of Electronics.

Studies Abroad

1. Job-oriented professional/technical courses offered by reputed

universities.

2. MCA, MBA, MS etc.

3. Courses conducted by CIMA London, CPA in USA etc.


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Upto Rs.4.00 lacs - NIL

Above Rs.4.00 lakhs

For Studies in India - 5%

For Studies Abroad - 15%

Upto Rs.4.00 lacs -12.50 %

p.a. at present

Above Rs.4.00 lakhs -13.00 %

p.a. at present

Floating Rate linked with

Benchmark Prime Lending

Rate (BPLR) of the Bank and

liable to undergo changes

whenever there is a change in

BPLR.

Holiday Period & Repayment Insurance

The course period PLUS 1 year

or 6 months after getting a job,

whichever is earlier.

Repayable in 5 7 years.

Life Insurance cover

available to the student

borrowers under 'IB Jeevan

Vidya' Insurance Scheme.

Securities

Documents should be executed both by the student and parent / guardian asjointborrower.

1. Upto Rs. 4 lacs - No security

2. Above Rs. 4 lacs & Upto Rs.7.50 lacs - Collateral in the form of satisfactory

third party guarantee

3. Above Rs.7.50 lacs - Co-obligation of parents / guardians together with

tangible collateral security of suitable value along with assignment of future

income of the student for payment of installments.

* In case of receipt of application for more than one loan from students from a

family, the 'family' as a unit will be taken into account for considering the loan

and security will be taken in relation to the total quantum of finance disbursed,

subject to margin and repaying capacity of the parent/student.


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Eligibility

You should be an Indian National

You should have secured admission to professional/technical courses in

India or abroad through

entrance test/merit based selection process


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Courses

Graduation/Post graduation/Diploma/Computer education in any recognized

State/Central Government/University. Professional courses including Engineering,

Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA,

CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc. Courses offered in India byreputed foreign universities/Evening courses of approved institutes. Regular

degree/Diploma courses like Aeronautical, Pilot training, shipping etc approved by

Director General of Civil Aviation/shipping if the course is pursued in India. In case the

course is pursued abroad the competent local aviation/shipping authority should

recognize the institute.

Amountmaximum of Rs. 10.00 lakh for studying in India and Rs. 20.00 lakh for studying abroad.

Interest Rate

Present Interest rate linked to BPLR is as follows:

- Up to Rs. 4.00 lakh - 12%

- Above Rs. 4.00 lakh 13.25%.

Margin money

For loans upto Rs. 4.00 lakh Nil

For loans above Rs. 4.00 lakh Studies within India 5%

For studies abroad 15%

Security

For loans upto Rs. 4.00 lakh Co obligation of parents. No

security

For loans above Rs. 4.00 lakh and up to Rs.7.50 lakh Co obligation of parents together

with collateral security in the form

of suitable third party guarantee

For loans above Rs.7.50 lakh Coobligation of parents together

with tangible collateral security.

Collateral security in the form of

NSC/KVIP, LIC Policy, Gold,

Shares/Debentures or immovable

properties Bank Deposits in the

name of student/Parent/Guardian

or any other third party with

suitable margin. Wherever the

land/building is alreadymortgaged the unencumbered

portion can be taken as security


66/82

Courses offered

An installment based loan for all courses mentioned below:

Studies in India:

Graduation courses: BA, B.Com. B.Sc., etc

Post Graduation courses: Masters & PhD

Professional courses: Engineering, Medical, Agriculture, Veterinary, Law,

Dental, Management, Computer etc

Computer certificate courses of reputed institutes accredited to Dept. of

Electronics or institutes affiliated to university

Courses like ICWA, CA, CFA etc

Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc

Courses offered in India by reputed foreign universities

Evening courses of approved institutes

Other courses leading to diploma/ degree etc. conducted by colleges/

universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc ,Courses

offered by National Institutes and other reputed private institutions. Banks

may have the system of appraising other institution courses depending onfuture prospects/ recognition by user institutions.


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Studies abroad:

Graduation: For job oriented professional/ technical courses offered by

reputed universities. Post graduation: MCA, MBA, MS, etc. Courses

conducted by CIMA- London, CPA in USA etc

Loan amount

Studies in India - Maximum Rs.10 lacs Studies abroad - Maximum Rs.20 lacs

Expanses covered under loan

Fee payable to college/ school/ hostel Examination/ Library/ Laboratory fee

Purchase of books/ equipments/ instruments/ uniforms Caution deposit/ building fund/ refundable deposit supported by

Institution bills/ receipts Travel expenses/ passage money for studies abroad Purchase of computers - essential for completion of the course Any other expense required to complete the course - like study tours,

project work, thesis, etc.

Repayment terms

The repayment of loan to begin after the course period + 1 year or 6 months

after getting a job, whichever is earlier. The loan to be repaid within 5-7 years

(maximum tenor 84 months) after commencement of repayment.


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UNION BANK OF INDIA

ELIGIBILITY

The student applying for UNION EDUCATION Loan ought to: Be an Indian National

Has secured admission to professional or technical courses through an appropriate

Entrance Test or selection process

Has secured admission to a foreign University

Has passed an appropriate qualifying examination

Studies in India School education up to +2

Graduation/Post-Graduation

Professional course

Management course

Special Education Loan Scheme for Students pursuing courses from approved

institutions like IITs/IIMs/ /NIT XLRI/BITS/VIT/IISc/S.P. Jain Institute Of

Management/Symbiosis Institute Of Management and T.S. Chanakya, Navi Mumbai-

Nautical Science and MERI, Calcutta, Marine Engineering, MERI, Mumbai, Maritime

Science.

Studies Abroad :

Graduation: For job-oriented professional or technical courses offered by reputed universities

Post-Graduation: MCA, MBA, MS and such other courses

Courses conducted by CIMA, London, CPA, USA., and such other institution

PURPOSE

To the poor and needy students to undertake basic education

To meritorious students to pursue higher or professional or technical education


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COMPARATIVE ANALYSIS OF EDUCATION LOAN POLICIES

OF NATIONALIZED BANKS

NA

ME

Maximum.

Loan amountand Rate of

Interest

Moratorium

period

Margin

money

Bra

nches

in

New

Del

hi

Credit Policy U.S.P.

S.B.

I.

Education in

India - Max.

Rs.10.00 lacs.

Education

Abroad - Max.

Rs.20.00 lacs.

Interest rate

Up to Rs 4

lacs- 12.25%

P.A.floating,

Above Rs. 4

lacs-

13.25%p.a.

floating

MoratoriumPeriod :-CoursePeriod + 1 yearor 6 monthsafter getting job,whichever isearlier.

Repayment:-Loan to berepaid within amaximumperiod of 5-7years after

commencementof repayment.

Forloans

uptoRs.4.00lacs:-Nil

For

loans

above

Rs.4.00

lacs:-

Studies

within

India

5%

For

studiesabroad

15%

Tot

al

bra

nches-

189

Upto Rs. 4 lacs - No

Security

Above Rs. 4 lacs to Rs.

7.50 lacs-- Third Party

Guarantee

Above Rs. 7.50 lacs to

Rs. 10 lacs (India)/ Rs.

15 lacs (Abroad) --

Tangible Collateral

security for full value of

loan

Rs 15 lacs to Rs. 20 lacs

for Abroad-- Tangible

Collateral security for full

value of loan

B.O.

B.

BARODA

GYAN:

Education in

India - Max.

Rs.10.00 lacs

EducationAbroad - Max.

MoratoriumPeriod :-CoursePeriod + 1 yearor 6 monthsafter getting job,whichever isearlier.

Repayment:-

UptoRs.4.00lacs:-Nil

Above

Tot

al

bra

nsh

es-

18

Upto Rs.4 lacs : No

security

Above Rs. 4.00 Lacs

and up to Rs. 7.5 lacs:

Collateral in the form of

a suitable third

party guaranteealognwith assignment of

FREE

DABIT

CARD,

1%

interest

concession

is provided iinterest


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Rs.20.00 lacs.

Rate of

Interest-

Upto

Rs.4.00 lacs:11.50%.

Above

Rs.4.00 lacs:-

13.50%.

Loan to berepaid within amaximumperiod of 5-7

years after commencementof repayment.

Rs.4.00lac

s:- StudieswithinIndia5% For

studiesabroad15%

future income. Above

Rs.7.5 lacs: Tangible

collateral security equal

to 100% of the loan

amount along withassignment of future

income

debited

during

repayment

holiday i

serviced 1%Conce

sion in rat

of interest t

loans for gi

student.

OB.

C.

Education in

India - Max.

Rs.10lacs.

Education

Abroad - Max.

Rs.20lacs.

Rate of

Interest:

For Loanupto Rs. 4.00

Lacs: 11.25 %

p.a. Loan

above Rs.

4.00 Lacs:

12.00 % p.a.

MoratoriumPeriod :-CoursePeriod + 1 year

or 6 monthsafter getting job,whichever isearlier.

Repayment:-

Loan to be

repaid within a

maximum

period of 5-7

years after commencemen

t of repayment.

Upto

Rs.

4.00lac

s:-NilAbove

Rs.

4.00

lacs:-

Studi

es

within

India

5% For

studies

abroad

15%

Tot

al

bra

nches-

96

For loan upto rs.4 lacs-

No Collateral Security

Above Rs. 4 lacs-7.50lacs-one satisfactory

third party guarantee

Above Rs.7.50- Co-

obligation of

parents/guardian is

obligatory.

1%

interest

concession

is provided i

interest

debited

during

repayment

holiday i

serviced

0.50%

concession

to womebeneficiaries

, SC/ST

and disable

students.

P.N.

B.

Education in

India

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