SUMMER INTERNSHIP PROJECT REPORT
ON
―COMPARATIVE STUDY OF METHODOLOGY ADOPTED
BY SBI, HDFC LTD. AND OTHER MAJOR BANKS IN
PROCESSING & SOURCING THROUGH HOME LOAN‖
SUBMITTED TO
ASIA PACIFIC INSTITUTE OF MANAGEMENT, NEW DELHI
IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR
THE AWARD OF
POST GRADUATE DIPLOMA IN MANAGEMENT
UNDER THE GUIDANCE OF
PROF. ASHU SINGH
SUBMITTED BY:
NARENDER SINGH
2K12A40
2012-2014
29 April 2013 to 30 July 2013
CERTIFICATE
This is to certify that Mr.NARENDER SINGH Roll number 2K12A40 a student of PGDM in
Asia Pacific Institute of Management, New Delhi, has carried out the Summer Internship Project
work presented in this report titled ―COMPARETIVE STUDY OF METHODOLOGY
ADOPTED BY SBI, HDFC LTD. AND OTHER MAJOR BANKS IN PROCESSING &
SOURCING THROUGH HOME LOAN‘‘ for the award of Post Graduate Diploma in
Management for the Academic Batch 2012-14, under my guidance.
Faculty guide
Prof. ASHU SINGH
Date:
DECLARATION
(FROM STUDENT)
I, NARENDER SINGH, hereby declare that the project work entitled ―COMPARATIVE
STUDY OF METHODOLOGY ADOPTED B SBI, HDFC LTD. AND OTHER MAJOR
BANKS IN PROCESSING & SOURCING THROUGH HOME LOAN‖ submitted towards
partial fulfillment for the award of Post Graduate Diploma In Management is my original work
and the dissertation has not formed the basis for award of any degree, associate ship, fellowship
or any similar title to the best of my knowledge.
Place: Gurgaon
Date: 30/06/2013 Name: NARENDER SINGH
Roll.No: 2K12A40
ACKNOWLEDGEMENT
―Perseverance inspiration and motivation have always played a key role in success of any
Venture‖. I hereby express my deep sense of gratitude to all the personalities involved directly
andindirectly in my project work.
I would thank to Mr. SUNIL PAHWA (Marketing executive) and thanks to God for their
blessing and my parents also for their valuable suggestionand support in my project report.
I would also like to thank our friends and those who have helped us during this project
directly or indirectly.
Last but not the least; I would like to express my sincere gratitude to all the faculty members
Who have taught me in my entire PGDM curriculum and our Prof. ASHU SINGH
whohasalways been a source of guidance, inspiration and motivation. However, I accept the sole
responsibility for any possible errors of omission and would be extremely grateful to the readers
ofthis project report if they bring such mistakes to my notice.
NARENDER SINGH
(Asia-pacific institute of management New Delhi)
CONTENT
SL NO. TITLE OF REPORT
PAGE NO.
1. Profile of SBI 1
2. Structure of SBI 6
3. Performance of SBI 7
4. Product and service of SBI 14
5. Nature and scope of project 15
6. Procedure of home loan 16
7. State Bank of India home loan 27
8. HDFC Bank home loan 40
9. ICICI Bank home loan 45
10. Axis Bank home loan 56
11. Research methodology 59
12. Objective of the project 61
13. Recommendation and finding 62
14. Conclusion 63
15. Limitations 64
16. Bibliography 65
17. Questionnaire 66
Brief profile of organization
INTRODUCTION:-
.
State Bank of India
Type Public
Traded as NSE: SBIN
BSE: 500112
LSE: SBID
BSE SENSEX Constituent
Industry Banking, financial services
Founded 1 July 1955
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people PratipChaudhuri
(Chairman)
Products Credit cards, consumer banking, banking,
finance, investment, mortgage loans, private
banking, wealth management
Revenue US$ 36.950 billion (2012)
Profit US$ 3.202 billion (2012)
Total assets US$ 359.237 billion (2012)
Total equity US$ 20.854 billion (2012)
Owner(s) Government of India
Employees 292,215 (2012)
Website www.sbi.co.in
State Bank of India (SBI) is a multinational banking and financial services company based in
India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As
of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign
offices, making it the largest banking and financial services company in India by assets.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding
in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two presidencies banks—Bank of Calcutta
and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank
of India. The Government of India nationalized the Imperial Bank of India in 1955, with
the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008,
the government took over the stake held by the Reserve Bank of India. SBI was ranked 285th in
the Fortune Global 500 rankings of the world's biggest corporations for the year 2012.
SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout the country.
SBI is a regional banking behemoth and has 20% market share in deposits and loans among
Indian commercial banks.
The State Bank of India was named the 29th most reputed company in the world according
to Forbes 2009 rankings and was the only bank featured in the "top 10 brands of India" list in an
annual survey conducted by Brand Finance and The Economic Times in 2010.
HISTORY
The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were incorporated as joint stock companies and were the result of the royal charters. These three
banks received the exclusive right to issue paper currency till 1861 when with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency banks
amalgamated on 27 January 1921, and the re-organized banking entity took as its name Imperial
Bank of India. The Imperial Bank of India remained a joint stock company but without
Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30
April 1955, the Imperial Bank of India became the State Bank of India. The government of
India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of
interest because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made
eight state banks associates of SBI. A process of consolidation began on 13 September 2008,
when the State Bank of Saurashtra merged with SBI.
SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new banks first manager was Jall N. Broacha, a Parsi. In 1985, SBI
acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its
affiliate, the State Bank of Travancore, already had an extensive network in Kerala.
The State Bank of India and all its associate banks are identified by the same blue keyhole logo.
The State Bank of India wordmark usually has one standard typeface, but also utilizes other
typefaces.
INTERNATIONAL PRESENCE
The Israeli branch of the State Bank of India located in Ramat Gan.
As of 31 March 2012, the bank had 173 overseas offices spread over 34 countries. It has
branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong
Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New
York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain,
and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in
Boston, USA.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches,
four in the Toronto area and three in the Vancouverarea.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank:
State Bank of India (Mauritius).
State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong
In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten
branches – nine branches in the state of California and one in Washington, D.C. The 10th branch
was opened in Fremont, California on 28 March 2011. The other eight branches in California are
located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and
Bakersfield.
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant
Bank and received permission in 2002 to commence retail banking. It now has five branches in
Nigeria.
In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In
Moscow, SBI owns 60% of Commercial Bank of India, withCanara Bank owning the rest.
In Indonesia, it owns 76% of PT Bank Indo Monex.
The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin.
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8
million in October 2005.
ASSOCIATE BANKS:-
Main Branch of SBI in Mumbai.
SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all
use the "State Bank of" name, followed by the regional headquarters' name:
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Earlier SBI had seven associate banks, all of which had belonged to princely states until the
government nationalized them between October 1959 and May 1960. In tune with the first Five
Year Plan, which prioritized the development of rural India, the government integrated these
banks into State Bank of India system to expand its rural outreach. There has been a proposal to
merge all the associate banks into SBI to create a "mega bank" and streamline the group's
operations
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six.
Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds
98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the
government hold the balance of 1.77 %.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will inch very close to the 10 trillion
marks (10 billion long scales). The total assets of SBI and the State Bank of Indore stood at
9,981,190 million as of March 2009. The process of merging of State Bank of Indore was
completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26
August 2010
STRUCTURE:-
Current Board of Directors
As on 14 January 2013, there are fifteen members in the SBI board of directors:-
NAME DEGINGNATION
PRATIP CHAUDHARY CHAIRMEN
HEMANT G. COTRECTOR
MANAGING DIRECTOR
DIWAKAR GUPTA
MANAGING DIRECTOR
A.KRISHNA KUMAR
MANAGING DIRECTOR
S. VISHWANATHAN
MANAGING DIRECTOR
S. VENKACHATLAM
DIRECTOR
D. SUNDARAM DIRECTOR
PARTHASARTHI LYINGAR DIRECTOR
THOMAS METHEW DIRECTOR
S.K. MUKHARJEE OFFICER EMPLOYEE DIRECTOR
RAJIV KUMAR DIRECTOR
JYOTI BHUSHAN MOHPATRA WORKMEN EMPLOYEE DIRECTOR
DEEPAK AMIN DIRECTOR
HARICHANDRA BAHADUR SINGH DIRECTOR
D. K. MITTAL DIRECTOR
PERFORMANCE:-
PRESS RELEASE FINANCIAL YEAR 2013
CONSOLIDATED RESULT
Operating profit increased from Rs 40,713 croresin FY12 to Rs 40,922 crores in FY13
Net profit (after minority interest) increased from Rs 15343 crores in FY12 to Rs 17,916
crores in FY 13 (YOY growth 16.77%)
Earing per share increased by 10.5% from Rs 242 in FY12 to Rs 267 in FY13.
ABI STAND ALONE RESULTS HIGHLIGHT
Net profit increased from Rs 11,707 crores in FY12 to Rs 14,105 crores in FY13
(20.48%YOY growth )
Cumulative domestic net interest margin continues to be healthy at 3.66%
CASA at 46.50% saving bank deposits cross Rs 4 lakh cores
PROFITABILY
FY13 OVER FY 12
Total interest income increased from Rs 106521 crores in FY12 to Rs 119657 cores in
FY 13 (12.33%) YOY growth
Interest income on advances increased from Rs 81078 crores in FY 12 to Rs 90537crores
inFY13 (11.67%YOY growth
Interest in com on resource operation increased from Rs 24300 cores inFY 12 to Rs
27746 crores in FY 13 (14.18 YOY growth )
Total interest expenses increased from Rs 63230 crores in FY 12 to Rs 75336 crores in
FY 13 (19.13% YOY growth )
Interest expenses om\n deposit increased from Rs 55644 crores in FY 12 to Rs 67465
crores in FY 13 (21.24% YOY growth )
Operating expenses increased from Rs 26069 crores in FY 12 to Rs 29284 crores in FY
13 (12.33% YOY growth %)
Staff expenses increased from Rs 16,974 crores in FY 12 to Rs 18381 crores in FY 13 (
8.29% YOY growth )
Operating profit is at Rs 31082 crores in FY 13
Net profit increased from Rs 11,707 crores in FY 12 to Rs 14,105 crores in FY 13
(20.48% YOY growth %)
Q4FY13 OVER Q4FY12
Intereste income on advanced increased from Rs 22,141 crores in Q4FY12 to Rs 23,064
crores in Q4FY13 ( 4.17% YOY growth )
Intereste income on resources operations increased from Rs 6,194 crores in Q4FY12to Rs
7,201 crores in Q4FY13 (16.26% YOY growth.)
Interest paid on deposits increased from Rs 14,822 crores in Q4FY12 to Rs 17,417
crores in Q4FY13 ( 17.51% YOY growth )
Non- interest income increased from Rs 5,377 crores in Q4FY12 to Rs 5,547 crores in
Q4FY13 ( 3.16% YOY growth )
Staff expenses increased from Rs 4,749 crores in Q4FY12 to Rs 5,612 crores in Q4FY13
(18.18% YOY growth )
Operating profit is at Rs 7761 crores.
DEPOSITS
Deposits of the bank increased from Rs 10, 43,647 crores in mar 12 to Rs 12, 02,740
crores in mar 13, a growth of 15.24%.
Saving deposits increased from Rs 3,59,847 crores in mar 12 to Rs 4,14,907 crores in
mar 13 ( 15.30% YOY growth.
ADVANCES
Gross advances increased from Rs 8, 93,613 crores in mar 12 to Rs 10, 43,647 crores in
mar 13 (20.70% YOY growth.)
Credit deposit ratio (domestic) increased from 78.51% in mar 12 to 82.42% in mar 13,
anincrease of 391 bps.
Large corporate advances from Rs 1,25,340 crores in mar 12 to Rs 1,75,831crores in mar
13 (40.28% YOY growth)
Mid –corporate advances increased from Rs 1,73,381 crores in mar 12 to Rs 2,04,853
crores in mar 13 (18.15% YOY growth )
Retail advances increased from Rs 1,82,427 crores in mar 12 to Rs 209694 crores in mar
13 ( 14.95% YOY growth )
Home loan increased from Rs 102739 crores inmar 12 to Rs 119467 crores in mar
13 ( 16.28 YOY growth )
Auto loan increased by 35.47% YOY from Rs 18306 crores to Rs 24800 crores
and education loan increased by 9.43% YOY from Rs 12566 crores or Rs 13751
crores.
SME advances increased from Rs 163745 crores in mar 12 to Rs 184128 crores in mar 13
( 12.45% YOY growth)
Direct agri advances increased from Rs 86281 cores in mar 12 to Rs 108584 crores in
mar ( 25.85% YOY growth )
International advances increased from Rs 135724 crores in mar 12 to Rs 169065 crores in
mar 13 ( YOY growth of 24.57% ) , with a USD denominated growth of 16.76%
ASSET QUALITY:
GROSS NPA (%) NET NPA (%) PCR (%)
Mar 12 4.44 1.82 68.10
Jun 12 4.99 2.22 64.29
Sep 12 5.15 2.44 62.78
Dec 12 5.30 2.59 61.49
Mar 13 4.75 2.10 66.58
KEY FINANCIAL RATIOS (SBI)
Return on assets has increased from 0.88% in mar 12 to 0.91 % in mar 13.
Return on equity decreased from 16.05% in mar 12 to 15.94% in mar 13.
Average cost of deposits increased from 5.95% in mar 12 to 6.29% in mar13 (34 bps
YOY growth )
Yield on advances declined from 11.05 % in mar 12 to 10.54% in mar13 (51% bps YOY)
Performance of associates and subsidiaries
Net profit of the 5 associate banks increased from Rs 3627 crores in FY12 to Rs 3678
crores in FY13.
SBI cards and payment services (PVT) ltd registered a net profit after tax of Rs 136 cores
in FY13 against Rs 38 crores in FY 12 (YOY growth of 259%)
SBI DFHI recorded a YOY growth of 82% in net profit from Rs 44 crores ( mar 12 ) to
Rs 80 crores ( mar 13)
The SBI life insurance company ltd posted a net profit tax of Rs 622 crores in FY 13, a
YOY growth of 11.94%, from Rs 556 crores in mar12.
The SBI capital market ltd has posted a net profit of Rs 296 crores in FY13, a YOY
growth of 17.93 % over Rs 251 crores in FY 12.
SBI group operating profit for FY13 at Rs 40922 crores is up by 0.51% from Rs 40713
crores in FY12 while net profit is up at Rs 17,916 crores from Rs 15,343 crores in FY12,
a growth of 16.77%.
Details of profit and loss account for stand-alone are as follows:
2011-12 2012-13
Growth (%)
Q4FY12
FY 12
Q4FY13
FY13
Q4FY13
OVER
Q4FY12
FY13
OVER
FY12
Interest on advances 22141 81078 23064 90537 4.17 11.67
Int. on recourses operations 6194 24300 7201 27746 16.26 14.67
Other interest income 248 1144 519 1374 109.30 20.11
Total interest income 28583 106521 30784 119657 7.70 12.33
Interest expenses 16992 63230 19706 75326 15.97 19.13
Net interest income 11591 43291 11078 44331 -4.42 2.40
Non-interest income 5377 14351 5547 16035 3.16 11.73
Operating income 16968 57643 16625 60366 -2.02 4.73
Staff expenses 4749 16974 5612 18381 18.18 8.29
Of which : payment to
employees
3696 13503 4707 15351 27.38 13.68
Contribution of employees 1053 3471 905 3030 -14.09 -12.69
Overhead expenses 2622 9095 3252 10904 24.03 19.89
Operating expenses 7371 26069 8864 29284 20.26 12.33
Operating profit 9597 31574 7761 31082 -19.13 -1.56
Total provisions 5547 19866 4461 16977 -19.56 -14.54
Income tax 2406 6776 280 5846 -88.34 -13.73
Loan loss 2837 11546 3974 11368 40.09 -1.54
Investment depreciation 27 664 -52 -961 ---------- ---------
Standers assets 375 979 267 750 -28.80 -23.42
Other provision -99 -98 -9 -25 91.37 74.24
Net profit 4050 11707 3299 14105 -18.54 20.48
FY 12-13 – Q4FY13-FY12
2011-12 Q4FY12
Interest on advances
Int. on recoursesoperationsOther interest income
Total interest income
Interest expenses
Net interest income
Non-interest income
Operating income
GROWTH (%) Q4FY13 OVER Q4FY12 –FY13 OVER FY 12
0
50000
100000
150000
Inte
rest
on
ad
van
ces
Oth
er in
tere
st in
com
e
Tota
l in
tere
st in
com
e
Inte
rest
exp
en
ses
Net
inte
rest
inco
me
No
n-i
nte
rest
inco
me
Op
erat
ing
inco
me
Staf
f ex
pe
nse
s
Co
ntr
ibu
tio
n o
f…
Ove
rhe
ad e
xpe
nse
s
Op
erat
ing
exp
ense
s
Op
erat
ing
pro
fit
Tota
l pro
visi
on
s
2012-13 Q4FY13
Series2
PRODUCT AND SERVICE:-
The products and services provided by the SBI are in various fields, such as:-
-60
-40
-20
0
20
40
60
80
100
120
140
Inte
rest
on
ad
van
ces
Oth
er in
tere
st in
com
e
Tota
l in
tere
st in
com
e
Inte
rest
exp
en
ses
Net
inte
rest
inco
me
No
n-i
nte
rest
inco
me
Op
erat
ing
inco
me
Staf
f ex
pe
nse
s
Co
ntr
ibu
tio
n o
f…
Ove
rhe
ad e
xpe
nse
s
Op
erat
ing
exp
ense
s
Op
erat
ing
pro
fit
Tota
l pro
visi
on
s
Growth (%) FY13OVER FY12 Q4FY13 OVERQ4FY12
Growth (%) Q4FY13 OVERQ4FY12
Banking services
Gold banking
NRI services
International banking
Corporate banking
Agricultural banking
International banking
Listed on the left are Services, SBI offers to its customers.
DOMESTIC TREASURY
BROKING SERVICES
REVISED SERVICE CHARGES
ATM SERVICES
INTERNET BANKING
STATE BANK MOBICASH
E-PAY
E-RAIL
RBIEFT
SAFE DEPOSIT LOCKER
MICR CODES
FOREIGN INWARD REMITTANCES
NATURE & SCOPE OF THE PROJECT:-
There are the large number of bank present in India with huge customer based so this
study will help to researcher, economist and company planner, bank to other measures
the degree of competitiveness of the bank in issuing car loan to the costumers present in
India .this study will also help in finding the growth potential and competitiveness among
car loan holder in the same region.
The project is mainly concentrated on the various services offered by state bank of India
and its competitors like HDFC,AXIS,and ICICI etc.
It also includes the services quality delivered to and perceived by its customers
This would help the bank to major it‘s standing as compared to its competitors and find
out where it lack and needs improvement.
It also helps in improving relationship with costumers.
Brief objectives/ responsibilities assigned by the project mentor.
PROCEDURE OF HOME LOAN
PROMOTION AND DISTRIBUTION OF THE PRODUCTS
(a) PROMOTION:
State Bank of India has come up with a non-conventional method to promote its home
loan business.
SBI promotes home loan segment at its „Home Fair Mela’s at each circle level.
SBI also use to enter into an agreement with the known builders to promote its home loan
segment.
The bank is looking forward to develop special processing channels so as to provide
quick services to home loan customers.
There would be no processing fees on loans, adding that the home loans approved at the
fair would bear 0.25 per cent less interest than the nominal rate from the start of fourth
year of repayment.
Around 24 property dealers and builders were present at the fair
Several kinds of staff are involved in these Fairs, who include:
Marketing Associates
Field Officers
Associated Builders and The staff from respective Retail Asset Central Processing Cells
(RACPC).
The staff do undertake several initiatives with the prospective customers at these Fairs
itself like:
Enquiries
Guidance
Instructions
Requirement Specifications
Application forms distribution
Application Approvals and
Customer Services
(b) DISTRIBUTION:
State Bank of India supplies and sells its home loan products through its over 11,440 branches
nation-wide and associated RACPCs. 66
PROCESS UNDERTAKEN
1. APPLICATION SUBMISSION
The home loan application form of SBI is rather lengthy compared to the forms at other
private sector lenders.
Completely filled in Form along with the necessary documents.
Need to submit the documents from builder.
In my case, the project had APF no in SBI (basically already approved by SBI); so not much
documentation was required.
Otherwise they would make a surge report, which can consume some time. I guess they are
quite strict about it.
2 PRE-SANCTION PROCESSES
The Field Officers hold Personal Discussion with the prospect customer regarding Interest
Rate, Eligibility, EMI and all the terms and conditions
The prospect customer’s options and acceptance are ascertained and recorded.
Necessary documents are collected from the customer.
Pre-Inspection Sheet is maintained along with the documents to record inspection by the
Bank‘s staff (or) outsourced agency.
Bank's Field Investigation for address proof/Employment etc.
All the documents are sent to Retail Assets Central Processing Cell (RACPC) for credit
appraisal based on the customer‘s financial capacities.
All the terms are conditions including Loan amount, interest rate, tenure, EMI etc. are
determined.
The RACPC would submit its credit appraisal report on the customer to the branch.
Legal Opinion:
Empanelled Lawyer(s) does submit the Title Deed verification and the search
report for 30 years in respect of properties of the customer.
The legal clearances/ opinion of the flat/property which you are buying / staying
/constructing have to be obtained from an advocate from Bank panel.
Submission of legal documents & legal check.
The search report reveals encumbrance on the property based on which the grant
of loan can be avoided and the prospect borrower may be asked to rectify it.
Valuation check:
The Engineer‘s valuation of the property and estimate for the construction to be
obtained with bank panel engineer.
In case of takeover loans, two panel engineer valuation is required and the least
value between them should be more than the takeover amount.
PRECAUTIONS TO BE TAKEN:
Applications form to be complete in all respects.
Market information about the potential borrower should be gathered.
Pre-sanction survey should be conducted wherever required.
The authenticity of salary slip, form 16 return, and proof of identification, address and
income etc. should be cross checked.
Income from all sources is to be considered, wherever applicable, when the sanctioning
authority is satisfied about the quantum and uninterrupted flow thereof during the tenure of
the loan.
6.3.3. SANCTION STAGE
The branch manager would consider the credit appraisal report of RACPC and will take a
decision whether to sanction or not the loan to the customer.
The decision is informed to the prospect customer the decision so taken via Field Officer.
If the decision is ―sanctioned‖, the Field Officer would issue Offer letter to the prospect.
4 POST-SANCTION PROCESSES
Registration of Property documents
Signing of Agreements and submitting post-dated cheques
SBI insists on all the margin money contributions to have been made to the seller and the
money receipts to be handed over to them prior to the loan disbursement.
The customer needs to submit the cash amount for various stamps, mortgage fee etc.
They would take 12 cheques of SBI a/c for security.
You can link your SBI savings a/c to have standing instruction to deduct EMI.
Normally, almost all home purchase transactions will entail payment of an advance to the seller
and on the day of registration, the remaining contribution from the buyer and the loan amount
from the bank are exchanged with the property documents. Not with SBI.
And once the registration is done, the loan applicant needs to get the latest Encumbrance
Certificate (EC) from the Registrar‘s Office and submit it to SBI. Subsequent to this process, SBI
will create an equitable mortgage on the property in favor of the bank as collateral. This entails a
fee of Rs 7000 (I understand that this is a percentage of the registered value of the property) to
the loan applicant. Only after all this is done, will the process be complete. I never saw this
equitable mortgage fee being mentioned anywhere in the high decibel advertisements from SBI.
5. DISBURSEMENT
The disbursement is made in phases correlating to the actual progress made in the
construction.
The proper end-use of funds is ensured by visits to the sites.
Certificate from the engineer may be required to be submitted by the borrower stating
the status of the project.
By BC/DD crossed A/c Payee only incorporating the builder‘s/seller‘s A/c No. and
banker‘s name and sent directly to builder/seller by Regd. AD/Speed Post.
6. POST- DISBURSEMENT PROCESS
Property inspection is carried out and recorded in the Inspection Register at each stage of
disbursement by the field officers
progress of the work.
7. REPAYMENT
Loan repayment options:
SBI lays down certain rules and regulations pertaining to the repayment of loans.
The loan applicants can repay the amount in the form of equated monthly installments.
The repayment is allowed up to the age of 70 years.
Repayment period:
Maximum 25 years (or) Up to the age of 70 years (the age by which the loan should be fully
repaid) of the borrower, whichever is early.
MAXIMUM REPAYMENT PERIOD:
For applicants upto 45 years of age: 25 years
Moratorium period (Repayment holiday): The moratorium period is included within the
maximum repayment period.
6.3.8. PRE-CLOSURE
-closure is allowed by the Bank at any time after the complete disbursal and before the
actual tenure.
-closed from own resources for which proof is submitted by the customer,
penalty is not levied irrespective of period for which the a/c has run.
Pre-closure Penalty:
e-closed from own savings/windfall gains for which documentary
evidence is produced by the customer.
excess of normal EMI dues shall be levied if the loan is pre closed within 3 years from the date
of commencement of repayment
6.3.9. NON-PERFORMAING ASSET FORMATION
When a loan or an advance does become an NPA:
The main business of a bank is through loans and advances section the bank accept deposits from
the public and certain amount they keep it as reserve balance and the rest of it they lend it to the
needed customers who require it in the form of loans and advances. The customer who deposits
the money they get interest and the person who takes the loan pays interest and the difference
between is the profit of the bank. Suppose the customer who took loan could not pay back the
loan amount or the installment money which consist of the interest amount and the principal
amount continuously for some specific period of time they are then converted to probable NPA
and then comes the role of recovery team which put their maximum effort to get back the amount
back which they have given as a loan or advances and at the end if they fail to get back the
money then finally the amount is converted as Non-Performing Assets.
than 90 days then a bank can convert the
loan amount to probable NPA and
it could not be recovered by the recovery management team then it is converted into NPA.
asset becomes non-performing when it ceases to generate income for the Bank. As from
31st March 2006, a non-performing Asset (NPA) is an advance
Where:
(i) Interest and/or installment of principal remain „overdue‟ for a period of more than 90 days in
respect of a Term Loan,
(ii) The account remains „out of order‟ for a period of more than 90 days, in respect of an
Overdraft/Cash Credit (OD/CC),
(iii) The bill remains „overdue‟ for a period of more than 90 days in the case of bills purchased
and discounted,
(iv) Any amount to be received remains „overdue‟ for a period of more than 90 days in respect
of other accounts.
(v) A loan granted for short duration crops is treated as NPA, if the installment of principal or
interest thereon remains overdue for two crop seasons and a loan granted for long duration crops
is treated as NPA, if installment of principal or interest thereon remains overdue for one crop
season.
vi) An account would be classified as NPA only if the interest charged during any quarter is not
serviced fully within 90 days from the end of the quarter.
10. RECOVERY MECHANISM
The following debt collection practices will be applied to all debts (rates and sundry debtors)
over $200 that is not in dispute which have been outstanding for 90 days:
Council to enter into an arrangement.
within 14 days or to contact Council to enter into an arrangement.
forwarded. The letter will state that failure to make payment in full or to enter into an
arrangement will result in the commencement of legal action.
forwarded to Council‘s debt
collection agent.
Various Recovery Procedures
State Bank of India adopts various recovery procedures to recover the debt from its defaulters.
The various recovery procedures are mentioned below:
Reasons For Default:
There are various reasons for default like mismanagement, diversification of fund, short fall in
investment, will fall default etc. So a credit manager should take various factors into account
before lending a loan.
Demand Notice:
When a defaulter does not repays loan a demand notice is issued to him that he has to repay his
loan with a stipulate time period.
Legal Notice:
When a defaulter does not respond to the demand notice a direct notice is issued to him that if he
does not repay the loan action would be taken against him legally and the court notice is issued
against him.
Transfer To NPA Account:
When a defaulter does not respond to respond to any legal notice or he becomes bankrupt the
Whole account is transferred to NPA account.
6.3.11. CUSTOMER CARE
SBI home loan customer care services can be accessed from everywhere and at any time using
the toll-free helpline numbers or the Internet. The bank has extensively covered all major cities
of the country while at the same time not overlooking the customer care requirements of people
residing in rural and semi-urban areas. You can get instant solutions to all your home loans
related queries the moment you get in touch with the staff working in a local SBI home loan
customer care center.
State Bank of India is undoubtedly the largest financial institution among all the public and
private sector banks operational in India. As a result, it receives an extremely large number of
requests seeking home loans and other types of financial assistance. With an extensive customer
base spanning all across the country and also at some locations abroad, SBI has emerged as the
largest provider of home loans in India. Thus it is not uncommon to see an SBI branch at a
remotely located rural or semi-urban area, no matter where it lies on the geographical map of the
country.
The customers can talk to SBI executives in a friendly environment and obtain information
regarding the types of home loans, current interest rates, repayment options, maximum loan
terms, EMI calculation and so on. Moreover, you can use SBI home loan
Customer care service for registering your complaints and grievances, which ensure a swift
remedial action by the concerned authority of the bank. Furthermore, it is also possible to meet
an SBI senior official directly through a special service known as Public Grievance Cell Facility
and get solutions instantly. This facility is available at all SBI branches across the nation and to
avail the same you need not take prior appointment or permission.
You can access SBI home loan customer care service through toll-free numbers and also through
Internet. Though the customer care toll free numbers are different for each city, the services
provided there remain the same, comprehensive, instant and bearing the quality standard of State
Bank of India.
SBI Home Loans Customer Care Number (Toll Free):
Ahmedabad: 1800 233 7933
Bangalore: 1800 425 8002
Bhopal: 1800-233-7551
Chennai: 1800 425 4424
Delhi: 1800 11 4545
Guwahati: 1800-345-3631
Hyderabad: 1800 425 3888
Kolkata: 1800 345 3455
Lucknow: 1800 180 5201
Mumbai: 1600 22 8866
Patna: 1800 345 6100
PRODUCT OF HOME LOAN
STATE BANK OF INDIA
"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer
Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV
18 in association with AC Nielsen-ORG Marg in 21 cities across India.
SBI Home Loans come to you on the solid foundation of trust and transparency built in the
tradition of State Bank of India.
Best Practices followed in SBI mentioned below will tell you why it makes sense to do business
with State Bank of India.
SBI Home Loans Unique Advantage:-
Package of exclusive benefits.
Low interest rates. Further, we charge interest on a daily reducing balance
Low processing charges.
No hidden costs or administrative charges.
No prepayment penalties. Reduce your interest burden and optimally utilize your surplus
funds by prepaying the loan.
Over 13,700 branches nationwide, you can get your Home Loan account parked at a branch
nearest to your present or proposed residence.
SBI MAXGAIN
HOME LOAN AS AN OVERDRAFT
An innovative and customer-friendly product enabling the customers to earn optimal
yield on their savings by reducing interest burden on Home Loans, with no extra cost.
The loan is sanctioned as an Overdraft with added flexibility to operate the Home Loan
Account like SB or Current Account. Bank also provides
Cheque Book/ATM-cum-Debit Card/Net Banking facility for the purpose.
The product enables customers to park their surplus funds/savings in ―SBI Maxgain‖
(with an option to withdraw whenever required), especially in the wake of low yields on
other Deposit/Investment products.
Loan Amount
Minimum Loan Amount: Rs.5 lacs
Maximum Loan Amount: No Cap
Interest Rate
A premium of 0.25% over and above the applicable Home Loan interest rate for Home
Loan > Rs.1 crores is payable.
(Other terms and conditions are as applicable to regular Home Loan Scheme)
SBI YUVA HOME LOAN:-
TAILOR MADE HOME LOAN SCHEME FOR THE YOUTH
SBI YUVA Home Loan provides 20% higher loan amount than that of normal Home
Loan eligibility to salaried employees of Private Sector Companies/MNCs/Government
Undertakings/PSUs & the Government employees.
Eligibility
Age between 21 years to 45 years.
Minimum Net Monthly Income of applicants should be Rs. 30,000/- (expected rental
income from the proposed property should not be included in the monthly income of the
borrower).
Repayment
Under SBI Yuva Home Loan Scheme, only the interest applied on Home Loan is payable
during the first 36 months. The regular EMIs start after completion of 36 months.
(Other terms and conditions are as applicable to regular Home Loan Scheme)
NRI HOME LOANS:
HOME LOANS TO NON RESIDENT INDIANS (NRIs) &
PERSONS OF INDIAN ORIGIN (PIOs)
Eligibility
Non Resident Indians (NRIs) or Persons of Indian Origin(PIOs)
The applicants should have a regular source of income.
Minimum employment tenure in India/Abroad should not be less than 2 years.
Loan Amount
Minimum Loan Amount: Rs. 3 lacs
Maximum Loan Amount:No upper cap.
(Other terms and conditions are as applicable to regular Home Loan Scheme)
SBI REALTY
HOME LOANS FOR PURCHASE OF PLOT FOR CONSTRUCTION OF A DWELLING
UNIT
SBI Realty provides an opportunity to the customer to purchase a plot for construction of house.
The construction of house should commence within 2 years from the date of availment of
―SBI Realty Loan‖.
Customers are also eligible to avail another Home Loan for construction of house on the
plot financed under the SBI Realty with the benefit of running both the loans
concurrently.
Loan Amount : Maximum Loan Amount: Rs.10 crores
Repayment Period : Upto 15 years
(Other terms and conditions are as applicable to regular Home Loan Scheme)
SBI PRE-APPROVED HOME LOAN
The SBI PAL provides sanction of Home Loan limits to the customers before finalization
of the property which enables them to negotiate with the Builder/Seller confidently.
The loan eligibility will be assessed on the basis of income details of the applicant.
Non-refundable processing fee as applicable to the Home Loan will be collected at the
time of sanction.
Validity Period
Pre-approved loan arrangement letter (PLAL) will be valid for a period of 4 months.
Property papers will be required to be submitted by the borrower within the validity of
PLAL. Processing fee will not be levied again.
Loan Amount
Pre-approved loan arrangement letter (PLAL) will carry the eligible loan amount
calculated on the basis of prevailing interest rates
Minimum Loan amount: Rs.10 Lacs.
(Other terms and conditions are as applicable to regular Home Loan Scheme)
SBI TRIBAL PLUS
SPECIAL HOME LOAN SCHEME FOR HILLY/TRIBAL AREAS
'SBI Tribal Plus' is a Special Home Loan Scheme designed for Hill/Tribal areas (where
mortgage of the property is not possible) for extending financial assistance to individuals.
Loan is sanctioned for Purchase or construction of a new house / flat (without mortgage
of land).
Purchase of an existing (old) house / flat which is not more than 10 years old.
Repair /Renovation/extension of an existing house or flat.
Loan Amount
Minimum Loan Amount: Nil
Maximum Loan Amount:Rs. 10 lacs
Repayment Period
Maximum repayment tenure: 15 years
GRAM NIWAS
HOME LOANS IN RURAL AREAS
Scheme covers all rural and Semi-urban centers having population upto 50,000 as per
2001 census.
Home Loans under ―Gram Niwas Scheme‖ are sanctioned for purchase/
construction/repair and renovation of house and purchase of plot for construction of a
house/shed etc.
Loan Amount
o Minimum Loan Amount: Nil
o Maximum Loan Amount:Rs. 5 lacs
Repayment Period
Maximum repayment period :15 years
(Processing Charges are waived under the Gram Niwas Scheme)
SAHYOG NIWAS
HOME LOANS TO SELF HELP GROUPS IN RURAL AREAS
The Sahyog Niwas Scheme provides Home Loan to Self-help groups, having good payment
record of 2 years, for on lending to their members for:
Purchase or construction of a house exclusively or including the housing needs of
activities carried by them (Dairy shed, tailoring shed/shop, grocery stores etc.)
Renovation or repair of an existing house / shed
Purchase of a plot for the construction of house
Extension of existing house / work space to existing house / shed.
Loan Amount
Home Loan amount under ―Sahyog Niwas Scheme‖ is restricted to 10 times of the saving
corpus of SHG subject to a maximum amount of Rs. 50,000/ per member.
SBI HOME EQUITY
TOP-UP LOAN
Loan for any purpose other than speculative.
Repayment period co-terminus with the underlying Home Loan account.
Upto two Home Equity Loans allowed existing together.
No prepayment/preclosure penalty.
Eligibility
All Home Loans with a satisfactory repayment track of at least one year.
Valid mortgage should have been created in favor of the Bank.
Loan Amount
Minimum: Rs. 0.50 lacs
Maximum:Rs. 2 crores.
Permissible Loan amount is calculated at 75% of present market value of the house
property less present outstanding in the Home Loan account.
Interest Rate
Term Loan: 1.25% over Base Rate, present effective rate: 11% p.a.
Overdraft: 1.50% over Base Rate, present effective rate: 11.25% p.a.
Loan Tenure
The tenure of the loan will be co-terminus with the original residual maturity of the
Home Loan or the option exercised by customer, whichever is earlier.
The loan has to be liquidated before the borrower attains the age of 70 years.
EARNEST MONEY DEPOSIT (EMD) SCHEME:
LOAN FOR EARNEST MONEY FOR ALLOTMENT OF A HOUSE/PLOT
Many Government agencies, viz. Urban Development Authorities and Housing Boards,
periodically come out with schemes for allotment of plots/houses, wherein applicants
have to deposit 10-20% of the total cost of plot/house as Earnest Money Deposit (EMD).
SBI Earnest Money Deposit Scheme provides finance for Earnest Money deposit to all
individuals above 21 years of age.
Applicant should have regular source of income.
No minimum income criteria.
Margin waived. Finance upto 100% of application money, subject to a maximum loan
amount of Rs.10 Lacs.
No security, irrespective of the loan amount.
Above mentioned features of the scheme are applicable subject to the following
conditions:
Allotment letters/refund orders should be routed through SBI.
Lump sum amount equal to 6 months interest to be paid up front.
Two PDCs, one for the principle amount of EMD and another towards interest for the
next 6 months should be taken to meet the eventuality of refund getting delayed.
SBI REVERSE MORTGAGE LOAN
LOAN FOR THE WELFARE OF SENIOR CITIZENS IN INDIA
House-owning Senior Citizens having inadequate income can avail this loan to meet their
financial needs for renovation/repairs to house, medical & other personal uses.
No compulsion for the borrower to repay the loan amount during his or her lifetime or till
such time he or she continues to stay in the house.
Borrowers have the options to prepay the loan at any time without any pre-payment
penalty.
Interest Rate
2.75% above the Base Rate, present effective rate being 12.50% p.a. (Fixed) subject to reset
every 5 years.
Disbursement
Either in Monthly/Quarterly payments or 50% of the sanctioned limit in lump-sum and the
remaining in periodic payments.
RATE OF INTEREST
Loan Slabs Applicable Variable rates % ( Monthly Rest Basis )
Basis : RPLR minus Spread
Upto and including Rs. 30 lacs 9.95% RPLR - 6.25 to - 5.75
Over Rs. 30 lacs 10.10% RPLR - 6.00 to - 5.50
DOCUMENTS
List of papers/ documents applicable to all applicants:
Completed loan application
3 Passport size photographs
Proof of identify (photo copies of Voters ID card/ Passport/ Driving
license/ IT PAN card)
Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/
Property tax receipt/ Passport/ Voters ID card)
Proof of business address for non-salaried individuals
Statement of Bank Account/ Pass Book for last six months
Signature identification from present bankers
Personal Assets and Liabilities statement
For guarantor (wherever applicable):
Personal Assets and Liabilities Statement
2 passport size photographs
Proof of identification as above
Proof of residence as above
Proof of business address as above
Signature identification from his/her present bankers
Additional documents required for salaried persons :
Original Salary Certificate from employer
TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly
acknowledged by IT Deptt.
Additional documents required for Professionals/self- employed/ other IT assesses:
Acknowledged copies of three years I.T. returns/ Assessment Orders.
Photocopies of challans evidencing payment of Advance Income Tax.
MAJOR COMPETITORS OF SBI
HDFC LTD.
HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of
promoting home ownership by providing long-term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 100 million.
Their objective, from the beginning, has been to enhance residential housing stock and promote
home ownership.
A new home brings with it new hopes, joys and emotions. At HDFC, we have shared new hopes, joys
and emotions with over 4.4 million customers. Every customer has a specific and unique concern.
Having earned an experience of over 34 years in home loans, Our home loan product is customized to
provide you solutions for your unique concern.
HDFC Home Loan Advantages
Counseling and advisory services for acquiring a property
Instant Home Loan Approval
Widest range of home loan products & services like Home Loans, Home Improvement
Loans, Home Extension Loans, Loans to professionals for office or clinic, Home Equity Loans
(Loan against Property), Short Term Bridging Loan etc.
Loan from any office for purchase of home anywhere in India
Loan approval even before a property is selected
Flexible loan repayment options like Step Up Repayment Facility, Flexible Loan installments
Plan, Tranche Based EMI, Accelerated Repayment Scheme & TelescopicRepayment Option
Vast network of over 331 in India, offices in Singapore, London& Dubai and franchises in the
Gulf Cooperation Council (GCC) region.
Most experienced and empowered personnel to ensure smooth & easy processing
Free & safe document storage
Online loan application facility
Features
Maximum Term
The maximum period of repayment of a loan shall be up to 30 years (Telescopic Repayment
option) under the Adjustable Rate Home Loan product, depending upon the specific repayment
scheme as may be opted.
The maximum period of a loan shall be up to 20 years under the Fixed Rate Home Loan product.
Repayment will not ordinarily extend beyond your age of retirement if you are employed or on
reaching 70 years of age, whichever is earlier. However, HDFC will endeavor to determine the
repayment period to suit your convenience.
Applicant and Co- Applicant to the loan
Home Loans can be applied for either individually or jointly. Proposed owners of the property will
have to be co-applicants. However, the co-applicants need not be crowners
Adjustable Rate Home Loan
Interest Rate
Loan Slabs Applicable Variable rates % ( Monthly Rest Basis )
Basis : RPLR minus Spread
Upto and including Rs. 30 lacs 10.15% to 10.65% RPLR - 6.25 to - 5.75
Over Rs. 30 lacs 10.40% to 10.90% RPLR - 6.00 to - 5.50
TruFixed Plus Home Loan
Under this product the customer has the option to choose a Fixed Interest Rate Period (FIRP) between
3 to 15 years. Post the fixed rate period the loan will automatically convert to a variable rate product.
The customer also has the option, subject to our eligibility norms to take a complete fixed rate term
product for a fixed term of 3 to 15 years. Or, he can avail a long term loan of 15 to 20 years with a part
fixed and part floating for the entire tenor of the loan. The full disbursement of the loan, irrespective of
the fixed period chosen, shall have been availed within the first 3 years from the date of first
disbursement of the loan. Post the fixed rate period the interest rates applicable on the loan shall be the
then applicable HDFC RPLR minus the spread as applicable currently on the loan amount being
availed under this product.
The applicable interest rates in the Fixed Interest Rate Period (FIRP) are linked to sanctioned loan
amount and as per details given below:
Loan Slabs Interest Rates during the Fixed
Interest Rate Period ( % )
Up to and including Rs. 30 lacs 10.50
Rs.30.01 lacs onwards 10.75
Eligibility
The product is available to salaried and self-employed customers for loan applications subject to first
Disbursement on or before July 31st, 2013.
Purpose
Purchase of
Flat, row house, bungalow from developers
Existing freehold properties
Properties in an existing or proposed co-operative housing society or apartment owner's
association
First Power of Attorney purchases in Delhi for DDA flats allotted before 1992.
Refinance (balance transfer) of an existing home loan from another financial institution.
Fees
.
0.5% of the loan amount applied plus applicable service taxes and cess.
No Charges for
Replacement of cheques
Income Tax Certificates
Accelerated Repayment Option
TERMS AND CONDITIONS OF HDFC HOME LOANS
HDFC has always been market oriented and dynamic with respect resource mobilisation as well as
lending programme. It provides loans to meet all requirements of the customers to make their house a
home. However following are the conditions which are to be met by the customer before applying for
a loan.
Loan amount conditions
HDFC finances upto 85% maximum of cost of property (agreement value + stamp duty +
registration charges)
Repayment capacity takrs into consideration factors such as income, assets, qualifications,
number of dependents, spouse income, liabilities, stability and continuity of occupation and
saving history.
The loan amount of the individual is also subject to Instalment to Income Ratio (IIR) which is
40% and Fixed Obligation Income Ratio (FOIR) which is 45%.
Maximum loan amount to an individual connot exceed Rs 1crore.
SUPPORTING DOCUMENTS
First of all when a customer came all documents are checked by the workstation which are directly in
contact with the customers. Necessary documents required are as follows.
FOR ALL APLICANTS
1. Allotment letter of the co-operative society /association of apartment owners.
2. Copy of the approved drawings of proposed construction /purchase /extention.
3. Agreement of sale /sales deed /detailed cost estimate cost from architect.
4. If an applicant have been present employment /business or profession for less than a year,
mention on a separate sheet details of occupation for previous five years , giving position held,
reasons for change and period of the same.
5. Applicable proceesing fees.
6. Residence proof and Identity Proof.
7. Certificate of loan outstanding issued by the lender ( for refinance cases only)
8. Any other information regarding your repayment capacity that is necessary and will assist
HDFC in appraising the loan proposal.
EMPLOYED CASE
1. Verification of Employment Form with only Part I filled in.
2. Latest original salary slip/salary certificate showing all deductions.
3. If a job is transferable, permanent address where correspondence relating to the applicant can
be mailed.
4. A letter from employer agreeing to deduct the EMI towards repayment of the loan from
applicant salary. This will expedite the processing of loan application.
5. Updated original Bank Passbook/ or Bank Statement for the last six months.
6. Photocopy of Form 16 (issued by the employer) for the last assesment year.
SELF EMPLOYED
1.Balance Sheet , Profit & loss and ITR for the last three years.
2. Business Profile.
3. Copies of individual Tax Challans for the last three years.
4. Copy of advance Tax Challan (if any).
5. Updated original Bank Passbook/ or Bank Statement for the last twelve months.
ICICI BANK
ICICI Bank (Industrial Credit and Investment Corporation of India) is a major banking and
financial services organization in India. It is the 4th largest bank in India and the largest private
sector bank in India by market capitalization. The bank also has a network of 2014+ branches (as
on 31 March 2010) and about 5219 ATMs in India and presence in 19 countries. ICICI Bank
offers a wide range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and specialization subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset management. (These
data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank is
India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31,
2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010.
ICICI HOME LOANS PRODUCT REVIEW:-
Eligibility
Home Loans can be availed by Resident Indian whether salaried or Self-Employed and also by
Non- Resident Indian who are Salaried. For resident Indians the following are the eligibility
norms:
You must be at least 21 years of age when the loan is sanctioned.
The loan must terminate before or when you turn 65 years of age or before retirement,
whichever is earlier.
You must be employed or self-employed with a regular source of income
Loan Amount
With ICICI Bank Home Loans, you can get a home loan suited to your needs. The home loan
amount depends on your repayment capability and is restricted to a maximum of 80% of the cost
of the property or the cost of construction as applicable. A number of factors are taken into
account when assessing your repayment capacity. Repayment capacity takes into consideration
factors such as income, age, qualifications, number of dependents, spouse's income, assets,
liabilities, stability, continuity of occupation and savings history.
However, there are ways by which you can enhance your eligibility.
If your spouse is earning, put him/her as a co-applicant. The additional income shall be included
to enhance your loan amount. In case of any co-owners they must necessarily be co-applicants.
The final amount to be sanctioned will depend on your repayment capacity. However, what you
ultimately are entitled to will have to conform within the limits fixed for each loan.
Also, when the company looks at the total cost, registration charges, transfer charges and stamp
duty costs are included
Documents required for the Sanctioning of Home Loan
ICICI Bank offers attractive interest rates and unbeatable benefits to ensure that you get the best
deal without any hassles. Keeping your convenience in consideration, we ask you for minimal
mandatory documents for the sanctioning of your Loan against Property. We require the
following documents to sanction your Loan against Property:
Duly Completed Application Form
Photograph
Fee Cheque
Photo Identity Proof
Signature Verification Proof
Residence Address Proof
Property documents as required
Document specific for Salaried
Last 3 months' salary slips
Form 16
Bank Statement for last 6 months from salary account
Repayment details on any existing loans or loan closure letter
Document specific for Self Employed
Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet /
Profit & Loss Account certified by Chartered Accountant for last 2 years (3 years for
Home Equity) (both for business and personal of partners/directors)
Bank Statement for last 6 months from operating account
Repayment details on existing loans or loan closure letter
Board Resolution in case of a company
Proof of existence of the business entity
Proof of Office Address
Photo Identity Proof, Residence Address Proof, Signature Verification must be provided
for all the main partners / directors
Disbursement of ICICI Bank Home Loan
ICICI Bank Home Loans disburses the loan amount after you identify and select the property or
home that you are purchasing and submit the requisite legal documents.
While one may be under the impression that the list of documents asked for is rather extensive,
please note that it is for customer‘s good. Each and every single document asked for will be
verified and checked to ensure your safety.
This may take some time but will complete all the legal and technical verifications to ensure that
one has full rights to his home.
Your loan will be disbursed after you identify and select the property or home that you are
purchasing and on your submission of the requisite legal documents.
On satisfactory completion of the above, on registration of the conveyance deed and on the
investment of your own contribution, the loan amount (as warranted by the stage of construction)
will be disbursed by ICICI Bank.
Property documents (as per P&D for respective states and has asked by empanelled
lawyers for individual cases).
Facility Agreement.
Disbursal Request Form.
Cheque Submission Form - for Pre EMI and EMI cheques.
ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for EMI / Pre
EMI.
Personal Guarantor's Documents (PG Form, Photograph, Identity Proof, Address Proof,
Signature Verification and Income documents, if applicable)
Repayment Terms of Home Loan
In order to make taking a home loan an easy process for you, ICICI Bank Home Loans address
all your queries about the repayment terms of Home Loans with respect to tenure, home loan
EMIs, methods of home loans EMI payments and pre-EMI interest
Insurance Plans for Home Loan
Introducing exclusive Home Insurance plans, that can provide cover to your Home loan in the
face of any unforeseen event happening to your life. In case of any of these happenings, your
family will have the support of the insurance cover to pay for the outstanding Home loan,
without being burdened by the loan EMI's.
ICICI Bank Home Loans presents "HomeSafePlus" & "Home Assure/Health Assure" two
exclusive and innovative insurance plans to insure your Home Loan.
HomeSafePlus
Key Benefits of HomeSafePlus:
No medical checkup
Comprehensive insurance plan for individual, home and its contents
Single premium long-term insurance plan
Premium paid for the Critical Illness cover is eligible for tax benefits u/s 80D of the
Income Tax Act
Sum Insured remains constant throughout the policy period (loan O/S amount to come to
bank, rest goes to individual)
Multiple applicants can be covered under the same loan
Simple application form
Home Assure/Health Assure
Key Benefits of Home Assure/Health Assure:
Life Cover from Home Assure for the entire home loan tenure
Critical Illness cover from life threatening illnesses like cancer, coronary artery bypass,
heart attack, kidney failure, stroke, major organ transplant
Special non-medical limits only for ICICI Bank Home Loans customers
Dual benefit to customers, Life Cover from Home Assure and Critical Illness Cover from
Health Assure
Dual tax benefits, Section 80C benefits under Home Assure, Section 80D benefits under
Health Assure
Simplified claim procedure
ADVANTAGES OF ICICI HOME LOAN :-
Wide range of product to choose from
Guidance throughout the process making home buying hassle free
Doorstep service at your comfort
Over 246 Bank Branches pan India for servicing of your loans
Sanction approval without having selected a property
Flexible repayment options
With a network of 2500 branches we are always close to you
ICICI Bank offers easy home loan for
First purchase in ready constuction.
Under constuction property.
Purchase in Resale case.
Self construction – extention of existing living space.
DOCUMENTS
EMPLOYED SELF EMPLOYED
Duly complete application Form with
one passport size photograph
Duly complete application Form with
one passport size photograph
Identity, Residence and Age proof Identity, Residence and Age proof
Fee Cheque Income tax return/ Computation of total
income/ Auditors report/ Balance
Sheet/ Profit Account certified by
Chartered Accountant for last two
years( 3 years for home equity)
Signature Verification Proof Signature Verification Proof
Last three months salary slip Business Profile
Form 16 Board Resolution in case of a company
Bank Statement for last six months
from salary Account
Bank Statement for last six months
from operating Account
Repayment track record of existing
loan/ loan closure letter
Repayment track record of existing
loan/ loan closure letter
Eligibility
Loan must terminate before or when the borrower turns 65 years of age or before
retirement whichever is earlier.
Minimum Age – 18 years of age.
Applicant must be Self employed or Employed with a regular source of income.
In case of Indian Resident both Self Employed or Employed can apply for loan but in
case of Non Resident only Employed can avail a loan.
The loan amount can be upto 80% of the cost of property.
RATE OF INTEREST
Home Loan Interest Rates
ICICI Bank floating rate:
Category Effective Rate of Interest
Rate
HL <= Rs. 3.0 million 10.15% I-Base + 0.40%
HL > Rs. 3.0 million 10.40% to 11.00% I-Base + 0.65% to 1.25%
ICICI Bank Renewable Fixed Rates
Initial Fixed Interest Rate- Rate applicable for initial period
Initial Tenor HL <= Rs. 3.0 million HL > Rs. 3.0 million
2 Year 10.15% 10.40%
3 Year 10.50% 10.75%
5 Year 10.75% 11.00%
ICICI Bank Fixed Rate
One year & Two year (s) fixed rate:
Ticket size slab Fixed rate for first 12/24
months
Floating rate pricing from
second & third year onwards
(from 13th/25th month)
HL <= Rs. 3.0 million 10.15% I-Base + 0.40%
HL > Rs. 3.0 million and <=
Rs. 30 million 10.40% I-Base + 0.65%
Three year fixed rate
Ticket size slab Fixed rate for first 36
months
Floating rate pricing from
fourth year onwards
(from 37th month)
SERVICE CHARGES & FEES
ICICI Bank ensures that you get the best Loans in terms of interest rates and other facilities. You
can choose from Adjustable, Fixed or Floating Rate Loan.
Charges Mortgages Loans
Loan Processing Charges /
Renewal Charges (Non
Refundable)
0.50% - 1.00% of the loan amount or Rs. 1500/- (Rs. 2000/- for
Mumbai, Delhi & Bangalore), whichever is higher + applicable
Service Tax & Surcharge
Prepayment Charges
No prepayment charge on floating rate home loan irrespective of the
source of fund
2% of the outstanding loan amount plus applicable service tax and
surcharge on fixed rate home loan and Home plus loan
4% of the outstanding loan amount plus applicable service tax and
surcharge on Loan against property, Lease rental discounting and
Nonresidential premises
HL <= Rs. 3.0 million
10.50%
I-Base + 0.40%
HL > Rs. 3.0 million and <=
Rs. 30 million
10.75% I-Base + 0.65%
For one year, two year and three year fixed rate loan the prepayment
charge is 2% of the outstanding loan amount plus applicable service
tax and surcharge till the time loan is under fixed rate. Once loan
moves into floating rate there would be no prepayment charge
irrespective of the source of fund
Charges for late payment
Home Loans : 2% per month
Home OD : 1.5% of the outstanding amount subject to minimum of
Rs. 500/- & Maximum of Rs.5000/-
Conversion charges for
home loan
Floating to Floating
0.5% of the principal outstanding plus
applicable taxes
Dual fixed rate to Floating
0.5% of the principal outstanding plus
applicable taxes
Floating to Dual fixed rate
0.5% of the principal outstanding plus
applicable taxes
Life time fixed to floating
1.75% of the principal outstanding plus
applicable taxes
Cheque Swap Charges Rs. 500/-
Document Retrieval
Charges Rs. 500/-
Cheque bounce charges Rs. 200/-
Amortization Schedule Rs.100 per schedule (Inclusive of S.T.)*
Statement of Account Rs.100 per statement (Inclusive of S.T.)*
Final prepayment Rs.100 per statement (Inclusive of S.T.)*
statement
Duplicate No Objection
Certificate / No Due
Certificate
Rs.100 (Inclusive of S.T.)
Revalidation of No
Objection Certificate Rs.100 per NOC (Inclusive of S.T.)*
Provisional Income Tax
Certificate Nil
Final Income Tax
Certificate Nil
Interest Certificate NA
Change of Address Nil
Agreement Copy Nil
No Objection Certificate /
No Due Certificate Nil
AXIS BANK
Axis Bank Ltd was incorporated in the year 1994 as ‗UTI Bank Ltd‘ which provided corporate
and retail banking products and was the first private banks to have begun operations in 1994,
after the Government of India allowed new private banks to be established. At present the bank is
the third largest private sector bank comprising of 1000 branch offices and extension counters
and 4055 ATMs.
Axis bank was formed as UTI when it was incorporated in 1994 when government of India
allowed private players in the banking sector. The bank was sponsored together by the
administrator of the specified undertaking of the Unit Trust of India, Life Insurance Corporation
(LIC) And General Insurance Corporation Ltd and its subsidiaries namely National Insurance
Company Ltd, New India Insurance Company, The Oriental Insurance Corporation and the
United Insurance Company Ltd. However the name of the UTI was changed because of the
disagreement on terms and conditions of th bank authority over certain stipulations including
royalty charged over the name from UTI AMC. The bank was also wanted to have a new name
from its Pan-Indian as well as international business perspective. So from July 30,2007 onwards
the UTI Bank was named as Axis Bank.
DOCUMENTS
EMPLOYED SELF EMPLOYED
Application Form with
photograph
Application Form with photograph
Identity and Residence proof Identity and Residence proof
Latest salary slip Education qualification certificate
Form 16 Business profile and last three years profit
Last six months bank statement Last six months bank statement
Processing fees Processing fees
Our Home Loan Rates
Sr.
No
Type Loan amount (Rs.) Base Rate +
Mark Up
Effective Rate Of
Interest
1 Floating
Rate
Less than Rs. 25 Lac Base Rate +
0.75%
10.75% p.a.
Loans greater than Rs.25 lac
- Rs. 75 lac
Base Rate +
1.00%
11.00% p.a.
Loans greater than Rs. 75
lac
Base Rate +
1.25%
11.25% p.a.
Top Up - All loans,
Renovations
Base Rate + 2% 12.00% p.a.
Base Rate - 10.00%
NISHCHINT - Home Loan with Fixed Rate of Interest
Type Effective Rate Of Interest
Fixed Rate 11.75% p.a.
Processing charges
Scheme
Loan
Processing
Charges
Prepayment
Charges for
Floating
Rate
Prepayment
Charges for
Fixed Rate
No Due
Certificate
Solvency
Certificate
Charges for
Late Payment
of EMI
Power
Home
Upto 1% of
the loan
amount
Nil
2% of
outstanding
principal/amoun
t prepaid
NA NA
Rs 500 per
cheque bounce
and a penal
interest @24%
per annum i.e.
@ 2% per
month on the
overdue
installment/s
Other Charges:
Sr. No Type Charges
1 Repayment Instruction/Instrument Return charges Rs.500/- per instance
2 Cheque/Instrument Swap charges Rs.500/- per instance
3 CERSAI Charges Rs.500/-
4 Duplicate Statement issuance charges Rs. 250/- per instance
5 Duplicate Amortization schedule issuance charges Rs. 250/- per instance
6 Duplicate Interest Certificate (Provisional/Actual)
issuance charges
Rs. 250/- per instance
7 Issuance charges for Photocopy of title documents Rs.250/- per document set
8 Charges on customer initiated requests for copies of
documents
Rs. 250 per document set
9 Equitable mortgage creation charges As applicable in the state
10 Credit Bureau report issuance charges Rs.50/- Per Instance
* Service Tax as applicable will be levied
Switching Cost:
Switching from the floating rate scheme to the fixed rate scheme and vice versa is permissible. If
a fixed rate customer wants to reschedule loan to the present fixed interest rate applicable to the
new customers, the same is also permissible. The existing customers can also switch over to the
new rate of interest applicable for the new customer. For all of the above changes, a nominal
switching fee is applicable.
RESEARCH METHODOLOGY
The methodology adopted for carrying out the present study and research analysis is elaborately
divided into the broad heading like period of study, scope of study, research design, sample, data
collection and interpretation and sampling techniques used for analysis.
Period of Study
The period from April 29, 2013 - June 30, 2013 has been selected depending on the duration of
summer internship program. I have collected all my data either from primary sources or secondary
sources only in this period. The report of this study belongs to this period only.
Scope of study
This study will help to researchers, economists, and company planners, Banks and others to measure
the degree of competitiveness of Banks in issuing prepaid cards to the customers present in India.
This Study will also help in finding the growth potential and competitiveness among prepaid cards
holder in the same region. We can also find our lacking through this study.
RESEARCH DESIGN
The research study conducted would be an exploratory research and the research design is
descriptive.
For the comparative analysis of various features offered by different banks for this I visited the
banks to meet the bank personnel who could give me about the various featured offered by them
part of their liability product.
SAMPLE
SAMPLING PLAN
I have visited Gurgaonregion builders and competitive home loan bank executive. and then taking
direct interviews or collecting data related to report.
DATA COLLECTION AND INTERPRETATION
PRIMARY DATA
Direct interview
Questionnaire
SECONDARY DATA
The secondary source of data used are :-
Internet
Newsletter
This include the information from various web sites.
SAMPLING TECNIQUES
The sampling procedure employed for this is judgmental sampling a convenience sampling
techniques in which elements are based on the judgment of research software tools used for the data
analysis the software tools used for data analysis in MS WORD and MS EXCEL.
Observations of data .
Analysis (indicating statistical tools, if any)
OBJECTIVE OF THE PROJECT
To gain overall idea about the organization.
To gain fist hand knowledge about the structure and the functioning of the financial
department and the return on the investment policies.
To gaining and enhance different managerial skill.
To see the applicability and usability of the theory which have been thought to us during
the first year of the course?
To find the financial performance of the organization.
To find out the importance of the finance in business.
To study the investment decision based on return.
Depending on the studies as stated above suggest some new innovative ideas which may
beneficially to the organization.
Now their offerings range from hassle-free home loans and deposit products, to property related
services and a training facility. They also offer specialized financial services to their customer
base through partnerships with some of the best financial institutions worldwide.
HDFC LTD. door to door service is fast as compare to SBI.
Time taken for loan sanction in HDFC LTD. is fast as compare to SBI. Customer wants a
short time period for sanction of loan. So remove the overlapping of the time.
Make a good relation with customers and builders.
Improve the area of marketing of home loan.
Not requirement of assets and liability form because , applicants are after taking loan then
they could sale it , then why spent time , and most of the time applicants are not fulfilling
assets and liability form requirement in this condition our executives are saying no , then
this types of cases our competitors are sanctioning very easily.
In ICICI bank if the applicants are not fulfilling all documentary requirements then not
canceling loan. They are also providing loan because executive is self-manage actions.
If ICICI consumer cibil is good and he or she is performing well in previous loan they are giving
all EMI regularly then they are sanctioning loan
RECOMMENDATION AND FINDING
CONCLUSION
From the above analysis and findings, I come to a conclusion that SBI is having most of facility
for customers. They are providing prepaid card at cheap rates and that can be accessible in
different countries also. SBI is the largest bank with large number of human work force but they
are still lacking in services.
Today, customer needs both services and cheap rate of interest from the bank. But most of the
customer demands high on time services for their work. If SBI wants to increase their market
share in prepaid card sector then he must be increase his services along with other facilities.
Then no one can stop SBI bank to become number one in banking sector.
All the people are availing loan facility from all the banks.
No. of respondents are 100
People related with SBI are more satisfied with the interest rate as compared to HDFC,
ICICI, Axis Bank.
SBI people much know about home loans then HDFC, ICICI, Axis Bank.
35% of home loans of SBI is coming by take over from the other banks.
SBI home loan is more secure than the others banks.
After home loan services of ICICI, Axis Bank is good as compare to SBI. Peoples related
with SBI is more satisfy with the employee behavior as compared to ICICI, Axis Bank.
People are more satisfied by SBI for time taken for sanctioning the loan.
From all this I conclude that SBI bank provide better home loan services as compared to
HDFC, ICICIand Axis Bank and mostly people are satisfied with SBI.
LIMITATIONS OF THE STUDY
Comparative study of car loan is hues according to this. So two months‘ time is less.
Comparative study is time consuming.
This is lengthy process for collecting data.
Data of individually car loan is not available everywhere.
Other banks are not shearing data with competitors executive.
Dealer‘s also not shearing monthly sales statement data with unknown person.
BIBLOGRAPHY
www.icici.co.in
www.sbi.co.in
www.axisbank.com
www.hdfc ltd.co.in
http://www.hdfc.co.in/loans/home-loan.asp
https://prepaid.onlinesbi.com/sbiviswa.html
https://prepaid.onlinesbi.com/ezpay.html
http://www.hdfcbank.com/personal/index
http://en.wikipedia.org/wiki/Banking_in_India
HOME LOAN QUESTIONNAIRE:
Name of the Bank(fromwhere loan have being taken):- ____________
Name:-____________ Qualification: - _________
Age 18-25 25-35 35-40 above
Gender_________
1) What is your occupation?
Business man Government employeeHouse wife Student Other
2) From how many years you are associated with this bank?
-5 years s
3) How do you come to know about the home loan schemes of this bank?
Newspaper Television Internet other resources
4) Are you aware of these types of home loans?
Home purchase loan
Home construction loan
Home improvement loan
Home extension loan
Home equity loan
Land purchase loan
5) Are you aware all terms and conditions of home loans?
Yes No
6) Are you satisfied with the interest rate charges by your bank?
Strongly agree Agree
Strongly disagree Disagree
7) Your bank offers which type of services?
Mobile banking Net banking Forex banking
8) Do you agree that your bank loan processing is fast?
Strongly agree Agree
Strongly Disagree Disagree
9) Do you satisfy with the after home loan services provided by your bank are best as compare to
other bank?
Strongly agree Agree Strongly disagree Disagree
10) Does the cost of home loan is appropriate, according to your demand?
Yes No
11) Are you satisfied with the employee‘s behavior at the bank?
Strongly agree Agree Strongly disagree Disagree
12) Does the bank give any discount upon loan services?
Yes No
13) Are you satisfy by the time taken in sanctioning the loan?
Yes No
14) Have you face any difficulty during taking the loan?
Yes No
If yes then specify___________________________
15) Which grade you want to give of home loan schemes of your bank?
Excellent Good
Average Below average
16) Any suggestions that you want to give_________________________________
