Description
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.
REGIONAL COLLEGE OF MANAGEMENT
Chakadola Vihar, Chandrasekhar Pur, Bhubaneswar-751023
An Internship Report, Submitted to SBI, in completion of the Requirement of
Summer Internship
At
STATE BANK OF INDIA
Submitted By
SABYASACHI PANDA
PGDM 2012-14
RCM (A)
Project Manager
Mr. Birendra Kuamr Pattnaik
BM, SBI, Puri Station. Branch Puri
13
th
May,2013 to 13
th
July,2013
“PROSPECT OF CAR LOAN AND HOME LOAN
AT THE CENTRE”
I hereby declare that the Project Report entitled, “Prospect of Car loan
and Home loan at the center” is my original research based project
work, prepared for submission to SBI, in completion of the requirement
of Summer Internship under the direct guidance and supervision of both
my Internal and External Guides, and the project has not formed the
basis for the award of any degree, diploma, associate ship, fellowship or
any other similar titles, to be submitted to any University or Institution.
Sabyasachi Panda
Reg. No. 1201247028
PGDM : 2012-14
RCM (A)
Date :
Place :
This is to certify that Mr. Sabyasachi Panda, Reg. No. 1201247028,
student of PGDM (Full-Time), Regional College of Management
(Autonomous), Bhubaneswar has completed the Summer Internship
Project titled, “Prospect of Car loan and Home loan at the Center”
under my supervision, in completion of the requirement of Summer
Internship at SBI and Partial Fulfillment of his Post Graduate Diploma
in Management Course.
Prof. Hitesh Kumar Kar
Dept. of Marketing Management
RCM (A), Bhubaneswar
Date :
Place :
I deem it a great pleasure and opportunity to dedicate the following few
lines to some persons, who enabled me to complete this Project in the
stipulated time period.
I express my obligations and gratitude towards State Bank of India and
Regional College of Management (Autonomous), for making the
arrangements for this incredible Summer Internship Project in the first
Place.
I am really indebted to my Internal Guide, Prof. Hitesh Kumar Kar,
RCM(A) and Project Mentor, Mr. Birendra Kumar Pattnaik , BM, SBI
Puri Station Branch for their invaluable guidance, suggestions and
confidence in me.
I am extremely grateful to Prof. Samendra Patra, Dept. of Operation and
Mr. Aniket Vishwakarma, Trainee Officer, Puri Station Branch, SBI, for
their endless support and ever valuable suggestions.
Their contributions show in many suitable ways and were indeed
instrumental in achieving the final results. Last but not the least I am
indebted to all those who remained behind the scene but without their
help this project would not have been palpable.
Page | 1
TABLE OF CONTENTS
1.Chapter 1
1.1. Profile of the Student
1.2. Profile of the Organization
1.2.1. Overview
1.2.2. History
1.2.3. Products and Services
1.2.4. Awards & Recognitions by SBI
1.2.5. SWOT Analysis
1.2.6. Nature of the Project
1.2.7. Objective and Responsibility
2. Chapter 2
2.1. Theoretical Framework of the project
2.1.1. Competitors of SBI in Advance Products
2.2. Objective of the Project
2.3. Scope of the Project
2.4. Limitation of the project
2.5. Period of the study
Page | 2
3. Chapter 3
3.1. Research Methodology
3.1.1. Methodology
3.2. Observation
4. Chapter 4
4.1. Analysis of Data
4.1.1. Primary Data
4.2. Conclusion
4.3. Suggestion & Recommendation
5. Annexure
6. Bibliography and References
7. List of Charts
8. List of Tables
Page | 3
LIST OF CHART
CHARTS PAGE NO.
CHART NO.1 52
CHART NO.2 53
CHART NO.3 54
CHART NO.4 55
CHART NO.5 56
CHART NO.6 56
CHART NO.7 58
CHART NO.8 59
CHART NO.9 60
CHART NO.10 61
CHART NO.11 63
CHART NO.12 64
CHART NO.13 65
CHART NO.14 66
CHART NO.15 67
CHART NO.16 68
CHART NO.17 69
CHART NO.18 70
CHART NO.19 71
CHART NO.20 72
CHART NO.21 73
CHART NO.22 74
CHART NO.23 75
CHART NO.24 76
CHART NO.25 78
CHART NO.26 79
Page | 4
LIST OF TABLE
TABLES PAGE NO.
TABLE NO.1 06
TABLE NO.2 23
TABLE NO.3 31
TABLE NO.4 35
TABLE NO.5 35
TABLE NO.6 36
TABLE NO.7 37
TABLE NO.8 43&44
TABLE NO.9 44&45
TABLE NO.10 45
TABLE NO.11 52
TABLE NO.12 53
TABLE NO.13 54
TABLE NO.14 55
TABLE NO.15 56
TABLE NO.16 56
TABLE NO.17 58
TABLE NO.18 59
TABLE NO.19 60
TABLE NO.20 61
TABLE NO.21 63
TABLE NO.22 64
TABLE NO.23 65
TABLE NO.24 66
TABLE NO.25 67
TABLE NO.26 68
TABLE NO.27 69
TABLE NO.28 70
TABLE NO.29 71
TABLE NO.30 72
TABLE NO.31 73
TABLE NO.32 74
TABLE NO.33 75
TABLE NO.34 76
TABLE NO.35 78
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CHAPTER 1
Page | 6
PROFILE OF THE STUDENT
My name is Sabyasachi Panda, pursuing Post Graduation Diploma in Management from
Regional College of Management (Autonomous), Bhubaneswar in the batch 2012-2014
having Reg no 1201247028. I had completed my graduation in engineering background in the
stream Computer Science & Engineering in the year 2010 from Gandhi Institute of
Engineering & Technology. Then I joined Genesys International Corp Ltd, Mumbai as a
developer and worked there for more then 1.6 years. Presently I am doing my Summer
Internship Program in State Bank of India in the topic “Prospect of Car Loan and Home Loan
at the Centre”. My contact no is 9692260568 and my mail id is [email protected].
Page | 7
STATE BANK OF INDIA
Type Public Sector
Traded as
NSE:SBIN,
BSE:500112,
LSE:SBID
Industry Banking, Financial Services
Founded 1 July 1955
Headquarter Mumbai, Maharashtra, India
Area Served Worldwide
Chairperson Pratip Chaudhuri(Chairman)
Products Credit cards, consumer banking, corporate banking, finance and
insurance, investment banking, mortgage loans, private banking,
wealth management
Owner(s) Government of India
Revenue US$ 36.950 billion (2012)
Profit US$ 3.202 billion (2012)
Employees 292,215(2012)
Website www.sbi.co.in
Table 1
Page | 8
OVERVIEW:
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. Government of India nationalized the Imperial Bank of India in 1955,
with 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.
Page | 9
STRUCTURE:
Board of Directors:
There are fifteen members in the SBI Board of Directors as on January 2013.
1. Pratip Chaudhuri (Chairman)
2. Hemant G. Contractor (Managing Director)
3. Diwakar Gupta (Managing Director)
4. A Krishna Kumar (Managing Director)
5. S. Visvanathan (Managing Director)
6. S. Venkatachalam (Director)
7. D. Sundaram (Director)
8. Parthasarathy Iyengar (Director)
9. Thomas Mathew (Director)
10. S.K. Mukherjee (Officer Employee Director)
11. Rajiv Kumar (Director)
12. Jyoti Bhushan Mohapatra (Workmen Employee Director)
13. Deepak Amin (Director)
14. Harichandra Bahadur Singh (Director)
15. D. K. Mittal (Director)
International Presence:
State Bank of India 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.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore
bank: State Bank of India (Mauritius). In Nigeria, SBI operates as INMB Bank (Indo-
Nigerian Merchant Bank). In Kenya, State Bank of India owns 76% of Giro Commercial
Bank, which it acquired for US$8 million in October 2005.
Page | 10
Associate Banks:
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
(Main Branch of SBI in Mumbai)
Non-Banking Subsidiaries:
Apart from its five associate banks, SBI also has the following non-banking
subsidiaries:
? SBI Capital Markets Ltd
? SBI Funds Management Pvt Ltd
? SBI Factors & Commercial Services Pvt Ltd
? SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
? SBI DFHI Ltd
? SBI Life Insurance Company Limited
? SBI General Insurance
Page | 11
HISTORY:
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1
July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India's
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.
The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the board of directors, which managed
the affairs of each bank, were mostly proprietary directors representing the large European
managing agency houses in India. The rest were government nominees, invariably civil
servants, one of whom was elected as the president of the board.
Page | 12
Page | 13
PRODUCT AND SERVICES:
Products:
SBI provides various types of products and services for their customers to fulfill their
dreams.
SBI PRODUCTS
Personal
Banking
NRI
Services
Agriculture
International
Banking
Corporate
Banking
SME
Government
Business
Page | 14
Services:
Personal banking:
State Bank of India offers a wide range of services in the Personal Banking Segment which
are indexed here. SBI products are designed with flexibility to suit customer’s personal
requirements.
PRESONAL BANKING
Personal
banking
Term
Deposits
Loan For
Pensioners
Recurring
Deposits
Housin
g Loan
Car
Loan
Educationa
l Loan
Personal
Loan
Loan
Against
Mortgage
Of
Property
Loan
against
Shares &
Debentures
Rent
Plus
Scheme
Medi-Plus
Scheme
Page | 15
NRI Services:
State Bank of India is the bank of choice for Indians wherever they live. With its vast
network of over 15,000 domestic branches, 69 dedicated NRI Branches in India, 186 Foreign
Offices in 34 countries, Correspondent Banking relations with over 400 global banks and tie
up with 26 Exchange Houses and 5 Banks across Middle East, NRIs can enjoy “anywhere –
anytime” banking facilities. The product suite for NRIs ranges from Bank Deposits, Loans
and Remittances to Investments, Online Equity Trading, Structured Products, Mutual Funds
and Insurance.
Agriculture:
State Bank of India Caters to the needs of agriculturists and landless agricultural labourers
through a network of 8750 rural and semi-urban branches. Apart from the branches, there are
428 Agricultural Development Branches (ADBs) which also cater to agriculturists. SBI is the
leaders in agri finance in the country with a portfolio of Rs. 64,000 crs in agri advances
covering around 80 lac accounts.
To give special focus to agriculture lending Bank has also appointed agri specialists in
various disciplines to handle projects/ guide farmers in their agri ventures. Advances are
given to borrowers for very small activities covering poorest of the poor to hitech activities
involving large fund outlays.
International banking:
International banking services of State Bank of India are delivered for the benefit of its Indian
customers, non-resident Indians, foreign entities and banks through a network of 180
offices/branches in 34 countries as on 30
th
Jan 2013, spread over all time zones. The network
is augmented by a cluster of Overseas and NRI branches within India and correspondent links
with over 483 banks, the world over. Bank's Joint Ventures and Subsidiaries abroad further
underline the Bank's international presence.
Page | 16
Corporate banking:
SBI is a one shop providing financial products / services of a wide range for large, medium
and small customer’s both domestic and international.
CORPORATE BANKING
Corporate
banking
Term
Loans
Deferred
Payment
Guarantees
Corporate
Loans
Export
Credit
Strategic
Business
Units
Pricing
Page | 17
SME:
? SBI offers SME EASY LOAN AGAINST PROPERTY
? SBI offers BEST DEAL FOR DEALERS at 9.70%* p.a. interest-(lowest Rate of
Interest)
Government business:
SBI’s out of 9315 branches in India, about 7000 branches are conducting Government Business. The
large network of our branches provides easy access to the common man to deposit the
following Government dues and pension payments.
1
• CENTRALISED PENSION PROCESSING CENTER (CPPC)
2
• SBI e-TAX
3
• GOVERNMENT ACCOUNTS
4
• SENIOR CITIZENS SAVINGS SCHEME
5
• SBI e-Freight
Page | 18
Award and Recognitions by SBI:
? Best Online Banking Award, Best Customer Initiative Award & Best Risk Manage-
ment Award (Runner Up) by IBA Banking Technology Awards 2010.
? The Bank of the year 2009, India (won the second year in a row) by The Banker Mag-
azine.
? Best Bank – Large and Most Socially Responsible Bank by the Business Bank
Awards 2009.
? Best Bank 2009 by Business India.
? The Most Trusted Brand 2009 by The Economic Times.
? Most Preferred Bank & Most preferred Home loan provider by CNBC.
? Visionaries of Financial Inclusion by FINO.
? Technology Bank of the Year by IBA Banking Technology Awards.
? SKOCH Award 2010 for Virtual Corporation Category for its e-payment solution.
? The Brand Trust Report 11th most trusted brand in Hindustan.
Page | 19
SWOT ANALYSIS:
SBI has its roots since 1806 which was later transformed under various names, finally SBI
Was established after the act in parliament on May 1955. In the year 1959 SBI took over 8
state owned banks and since then it started to grow up carrying its heritage of servicing peo-
ple at various economic levels.
Strengths:
? SBI is the largest bank in India in terms of market share, revenue and assets.
? As per recent data the bank has more than 13,000 outlets and 25,000 ATM centers
? The bank has its presence in 32 countries engaging currency trade all over the world
? The bank has a merged with State Bank of Saurashtra, State bank of Indore and the
bank is planning to go further acquisition in the current FY2012.
? SBI has the first mover advantage in commercial banking service
? SBI has recently changed its vision and mission statements showing a sign of inclina-
tion towards new age banking services
Weakness:
? Lack of proper technology driven services when compared to private banks
? Employees show reluctance to solve issues quickly due to higher job security and cus-
tomers’ waiting period is long when compared to private banks
? The banks spends a huge amount on its rented buildings
? SBI has the largest number of employees in banking sector, hence the bank spends a
considerable amount of its income in employee’s salary compensation
? In spite of modernization, the bank still carries the perception of traditional bank to
new age customers
Page | 20
Opportunities:
? SBI’s merger with five more banks namely State Bank of Hyderabad, State bank of
Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank
of Mysore are in approval stage
? Mergers will result in expansion of market share to defend its number one position
? SBI is planning to expand and invest in international operations due to good inflow of
money from Asian Market
? Since the bank is yet to modernize few of its banking operations, there is a better
scope of using advanced technologies and software to improve customer relations
? Young and talented pool of graduates and B schools are in rise to open new horizon to
so called “old government bank”
Threat:
? Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the
year FY2011
? This shows the reduce in market share to its close competitor ICICI
? Other private banks like HDFC, AXIS bank etc
? FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as
people tend to switch to foreign banks for better facilities and technologies in banking
service
? Other government banks like PNB, Andhra, Allahabad bank and Indian bank are
showing
? Customer prefer to switch to private banks and financial service providers for loans
and mortgages, as SBI involves stringent verification procedures and take long time
for processing.
Page | 21
Nature of the Project:
The nature of the project “PROSPECT OF CAR LOAN AND HOME LOAN AT
THE CENTER” is to find out the number of active customers taking loans from the bank.
To find out this we use the primary data as well as secondary data and compare with other
banks and non banking organizations analytically.
? Primary data includes what type of customer (Name, age, occupation, rural/urban area
and car loan/home loan).
? Secondary data includes, previously who are the customers take the loan.
? Comparative analysis done by taking few data from other banks and nonbanking or-
ganizations.
Page | 22
Objective and Responsibility:
Objective:
? The main object of the project is to find out the no of customers who are taking car
and house loan from SBI.
? Find out who are the major competitors of SBI.
? Compare with other banks and non banking organizations interns of loan amount, no
of customers and which type of loan (Car/Home).
? Customer perception about SBI.
? Selection of banks while taking the loan and why.
Responsibility:
? Our responsibility is to analysis the entire survey and find out the reason why people
prefer other banks then SBI more.
? Increase the potential customers for SBI Personal Banking products.
? Maintain a good relationship with the existing customers.
Page | 23
CHAPTER 2
Page | 24
Theoretical Framework of the Project:
Now a day not all the people have the capacity to fulfill their requirement by their own
earning, that’s why they need help from others. For this so many government & private sector
bank provide them money to fulfill their requirement, that’s call the Advance Product (loan
product) of the bank. All the banks have so many different types of advance product as per
the requirement of the people or customers. In Bhubaneswar also there are so many banks
those provide loan to the people for different causes.
Types of Advance Product:
? Home Loan
? Educational Loan
? Car Loan
? Personal Loan
? Property Loan
? Loan Against Shares\Debentures
? Rent Plus Scheme
Now a day a large no. of people are taking loan form different banks. It helps people to fulfill
their need and it really easy to repayment the loan amount with a longer repayment period.
My project is to know more about the advance product of Car Loan and Home Loan.
Page | 25
SBI Home loan:
"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.
Table 2
Page | 26
HOME Loan products:
Home loan products
Home loan
product
Related home
loan products
Page | 27
Home loan product:
1
• SBI MAXGAIN
2
• SBI YUVA HOME LOAN
3
• NRI HOME LOANS
4
• SBI REALTY
5
• SBI PAL
6
• SBI TRIBAL PLUS
7
• GRAM NIWAS
8
• SAHYOG NIWAS
Page | 28
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 crore is payable.
Page | 29
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.
Page | 30
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.
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:
Up to 15 years
Page | 31
SBI PAL:
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.
Page | 32
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 up to 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:
? Minimum Loan Amount: Nil
? Maximum Loan Amount: Rs. 5 lacs
“Maximum repayment period: 15 years”
Page | 33
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.
RELATED HOME LOAN PRODUCTS:
1.SBI HOME EQUITY
2.EARNEST MONEY DEPOSIT (EMD) SCHEME
3.SBI REVERSE MORTGAGE LOAN
Table 3
Page | 34
SBI Home Equity:
TOP-UP loan:
? Loan for any purpose other than speculative.
? Repayment period co-terminus with the underlying Home Loan account.
? Up to two Home Equity Loans allowed existing together.
? No prepayment/ preclusive penalty.
Eligibility:
? All Home Loans with a satisfactory repayment track of at least one year.
? Valid mortgage should have been created in favour 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.
Page | 35
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 upfront.
? 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.
Page | 36
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.
Features:
Eligibility:
Minimum age: 18 years as on the date of sanction
Maximum age:
70 years. i.e. the age by which the loan should be fully repaid, subject to availability of
sufficient, regular and continuous source of income for servicing the loan repayment.
Page | 37
Loan Amount:
Actual loan amount will be determined taking into consideration such factors as applicant’s
income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc.
To enhance loan eligibility you have option to add:
1
Income of your spouse/ your son/ daughter living with you, provided they have
a steady income and his/ her salary account is maintained with SBI.
2
Expected rent accruals (less taxes, cess, etc.) if the house/ flat are being
purchased are proposed to be rented out.
3
Depreciation, subject to some conditions.
4
Regular income from all sources.
Table 4
Security:
? Equitable mortgage of the property.
Margin/ LTV Ratio:
Individual Home
Loan Amount
Margin (Min.) (%) LTV (Loan to value ratio)
Ratio (%)
Upto Rs. 20 Lacs 10 90
Above Rs. 20
Lacs. and upto
Rs. 75 lacs
20
80
Above Rs. 75 lacs 25 75
Table 5
Page | 38
Home loans - interest rates (With effect from 04.02.2013)
All Rate are floating only (Base Rate= 9.70% p.a.)
Loan Amount Linkage with Base Rate over
the tenor of the loan
Effective Rate
Upto Rs. 30.00
lacs
0.25% above Base Rate 9.95% p.a.
Above Rs.
30.00 lacs
0.40% above Base Rate 10.10% p.a.
No fixed rate option in any limit bracket.
Table 6
Document:
List of papers/ documents applicable to all applicants:
? Completed loan application
? 2Passport size photographs
? Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ 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
? 3Passport size photographs
? Proof of identification as above
? Proof of residence as above
Page | 39
? Proof of business address as above
? Signature identification from his/her presents 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 Dept.
Additional documents required for Professionals/self- employed:
? Acknowledged copies of three years I.T. returns/ Assessment Orders.
? Photocopies of challans evidencing payment of Advance Income Tax.
Fees:
Loan Amount Processing Fee
Upto Rs. 25 Lacs 0.25% of loan amount, minimum Rs. 1,000/
Above Rs. 25 Lacs and upto Rs. 75
Lacs
Rs. 6,500/
Above Rs. 75 Lacs Rs. 10,000/
Table 7
Page | 40
SBI CAR LOAN PRODUCTS:
SBI NEW CAR LOAN SCHEME
SBI COMBO LOAN SCHEME
CERTIFIED PRE-OWNED CAR LOAN
CAR LOAN SCHEME FOR USED CAR
2-WHEELER LOAN
Page | 41
SBI New car loan scheme:
Salient features:
? No Advance EMI;
? Longest repayment tenure (7 years);
? Lowest interest rates;
? Lowest EMI;
? LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of ac-
cessories worth Rs 25000), 90% in case of Corporate Salary Package accounts;
? Interest Calculated on Daily Reducing Balance;
? Flexibility of payment of EMI anytime during the month;
? No pre-payment penalty;
? Optional SBI Life cover;
? Overdraft facility available.
Purpose:
? For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.
Eligibility:
? To avail an SBI Car Loan, you should be:
? Individual between the ages of 21-65 years of age.
? Regular employee of State / Central Government, Public Sector Undertaking, Private
Company or a reputed establishment.
? Professionals, self-employed, businessmen, proprietary/partnership firms who is an
income tax assessed.
? Net Annual Income Rs. 2,50,000/- and above.
Page | 42
SBI Combo loan scheme:
? SBI provides the loan for purchase of Car and Two Wheeler taken together.
Salient features:
? No Advance EMI;
? Longest repayment tenure (7 years);
? Lowest interest rates;
? Lowest EMI;
? LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of ac-
cessories worth Rs 25000), 90% in case of Corporate Salary Package accounts;
? Interest Calculated on Daily Reducing Balance;
? Flexibility of payment of EMI anytime during the month;
? No pre-payment penalty;
? Free Accident insurance; Optional SBI Life cover;
Purpose:
? For purchase of Car and Two Wheeler taken together.
Eligibility:
? Individual between the age of 21-65 years of age.
? Regular employee of State / Central Government, Public Sector Undertaking, Private
Company or a reputed establishment.
? Professionals, self-employed, businessmen, proprietary / partnership firms who is an
income tax assessed.
? Person engaged in Agricultural and allied activities.
? Net Annual Income Rs. 2,50,000/- and above.
Page | 43
Loan Amount:
? There is no upper limit for the amount of the loan. A maximum loan amount of 48
times of Net Monthly Income or 4 times of Net Annual Income can be sanctioned.
Documents Required:
? Statement of Bank account of the borrower for last 6 months.
? Passport size photographs of borrower(s).
? A copy of passport /voters ID card/PAN card.
? Proof of residence.
? Latest salary-slip showing all deductions
? I.T. Returns/Form 16: 2 years for salaried employees and 2 years for profession-
al/self-employed/businessmen duly accepted by the ITO wherever applicable
? Proof of official address for non-salaried individuals
Margin:
? 15% of the on road price of the Car and two-wheeler (which includes vehicle registra-
tion charges, insurance, one-time road tax and accessories).
Certified PRE-Owned CAR loan:
SBI provide the best car loan scheme for you to take a loan for purchase of Certified Pre-
owned Car, not more than 5 years old.
SBI offers:
? No Advance EMI;
? Longest repayment tenure (7 years);
? Lower interest rates
? Lowest EMI;
? LTV 85% of ‘On Road Price’ of car (includes registration, insurance and cost of ac-
cessories),
? Interest Calculated on Daily Reducing Balance;
? Flexibility of payment of EMI anytime during the month;
Page | 44
? Low pre-payment penalty, only 2%;
? Low processing fee (only 0.51% of loan amount);
? Free Accidental insurance; Optional SBI Life cover;
Purpose:
? Term Loans for purchase of Certified Pre Owned car, from certified used car deal-
ers, not more than five years old. The loan should be repaid within 7 years from the
date of the original purchase of the vehicle.
Eligibility:
? Individual between the ages of 21-65 years of age.
? A Permanent employee of State / Central Government, Public Sector Undertaking,
Private company or a reputed establishment or
? A Professionals or self-employed individual who is an income tax assessee or
? A Person engaged in agriculture and allied activities.
? Net Annual Income Rs. 100,000/- and above.
Loan Amount:
? Maximum Loan amount will be 2.5 times of net annual income. Spouse’s income
could also be considered provided the spouse becomes a co-borrower in the loan.
Margin:
? 15% of the on the road price (which includes vehicle registration charges, insurance,
one-time road tax and accessories).
Car Loan Scheme For used car:
SBI provide the best car loan scheme for you to take a loan for purchase of used car, not more
than 5 years old.
SBI offers you:
? No Advance EMI;
? Longest repayment tenure (7 years);
? Lower interest rates
? Lower EMI;
Page | 45
? LTV 85% of ‘On Road Price’ of car (includes registration, insurance and cost of ac-
cessories worth Rs 25000),
? Interest Calculated on Daily Reducing Balance;
? Flexibility of payment of EMI anytime during the month;
? Low pre-payment penalty, only 2%;
? Low processing fee (only 0.51% of loan amount);
? Free Accidental insurance ;
? Optional SBI Life cover.
Purpose:
? You can take finance for purchase of passenger cars, Multi Utility Vehicles (MUVs)
and SUVs not more than five years old.
Loan Amount:
? Maximum Loan amount will be 2.5 times of net annual income. Spouse’s income
could also be considered provided the spouse becomes a co-borrower in the loan.
Margin:
? 15% of the on the road price (which includes vehicle registration charges, insurance,
one-time road tax and accessories).
Interest Rates:
Types of products Tenure Rate of Interest
SBI CAR LOAN
SCHEME
For all tenures
For Term Loan and Overdraft:
0.75% above Base Rate, i.e. 10.45% p.a.
Used Vehicles
Up to 3 years 7.25% above Base Rate i.e. 16.95% p.a.
Above 3 yrs 7.50% above Base Rate i.e. 17.20% p.a.
Page | 46
Certified Pre-owned Car
Loan scheme
Up to 3 years 6.00% above Base Rate i.e. 15.70% p.a.
Above 3 yrs 6.50% above Base Rate i.e. 16.20% p.a.
SBI COMBO LOAN
SCHEME
For all tenures For Term Loan
0.75% above Base Rate i.e. 10.45% p.a.
Table 8
Competitors of SBI in Advance Products:
In case of Home Loan:
BANKS Rate of Interest Processing Fee Prepayment Charges
State Bank of
India
9.95% - 10.10% Up to 25 lacs : 0.125% of
loan amount minimum
Rs.1000/-
25-75 lacs : Rs.3,250/-
75 & above : 5,000/-
NIL
ICICI Bank 10.25% - 10.50% 0.50% of loan amount
upto 1 crore
N.A
HDFC Bank 10.15% - 10.40% 0.5% or maximum
10,000+service tax
(12.36%)
No prepayment
charges shall be
payable for partial or
full prepayments
irrespective of the
source
Page | 47
LIC Housing 10.25% - 11.20% Up to 50 lacs : 10,000
+(Service tax)
50 lacs & above : 15,000
+(service tax)
NIL
Axis Bank 10.25% - 10.50% 1% of the Loan amount NIL
Table 9
In case of Car Loan:
BANKS New Car
Loan(Reducing)
Used Car
Loan(Reducing)
Processing Fee
HDFC Bank 11.25% -12.25%
10.75% - 12%
(Corporate Rates)
15.25% - 18.25% Rs 1500/- to Rs.
2000/-
Kotak 11.50% - 13.50% 17% - 20% Rs.3300/- to Rs.4750/-
Axis Bank 11.50% - 14.50% 16.50% - 18% Rs.3000/- to Rs.3500/-
State Bank of
India
11.25% 17.25% (up to 3 years)
17.50% (above 3
years)
0.5% of Loan Amount
Table 10
Page | 48
Objective of the Project:
? Summer Internship Project gives a practical exposure and helps in acquiring the on
road skills.
? First and foremost objective is to find out the reasons for using of Home and Car Loan
Products from SBI.
? To find out the services that other bank given to their customer.
? To generate the leads through the survey.
? To sort out the prospective leads from the data I have collected through the survey.
? To build the relation ship with the customers and to follow up them, make sure that
they are satisfied with the product.
? To get more references from the customers and generate new leads by following a
chain process.
? To place SBI Loan Product ahead of the competitors.
? To find out the customer awareness on booming Loan Product market and to find out
the using patterns of the people
? To make the customer aware of the benefits of the product and convince him to go for
SBI Advance Product.
Scope of the Project:
? The geographical scope of the study is restricted to Bhubaneswar only with sample
size of 50 people.
? All the analysis and suggestions are based on the analysis of the primary data.
? There fore the scope of the study revolves around the following aspects:-
? Consumer perception towards Loan Product
? Consumer awareness about Loan Product scheme and its benefit.
? Aware the Bank about the customer problems, especially in case of Automobile and
Housing sector.
Page | 49
Limitation of the Project:
? During the survey period it is very difficult to explore proper data from the customers
as well as from the other banks due to some security reason. If also they provide some
information that is not enough for the project.
? Respondent may give biased answer for the required data. Some of the respondent did
not give the data.
? The study can also not be generalized for public and private sector banks of the coun-
try.
? Respondents tried to escape some statements by simply answering “neither agree nor
disagree” to most of the statements. This was one of the most important limitations
faced, as it was difficult to analyze and come at a right conclusion.
? In our study we have included 50 customers of bank because of time limit.
Period of the study:
? The entire project was of eight weeks from May 13
th
to July 13
th.
? The survey was conducted for about four weeks from May 20
th
to June 20
th
.
? The analysis and research took around two weeks.
Page | 50
CHAPTER 3
Page | 51
Research Methodology:
? Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues
involved & conduct situational analysis. The methodology includes the overall
research design, sampling procedure & fieldwork done & finally the analysis
procedure. The methodology used in the study consistent of sample survey using both
primary & secondary data. The primary data has been collected with the help of
questionnaire as well as personal observation book, magazine; journals have been
referred for secondary data. The questionnaire has been drafted & presented by the
researcher himself.
Sample Size:
? Sample of 50 people was taken into study, and their data was collected.
Sampling Technique:
? To study the Project, a Simple Random Sampling technique is used.
Data Collection:
? Collection of data is done through Questionnaire
? i.e., Primary data was collected through Questionnaire.
Observation:
? After data collection, I’m able to analyze customer’s views, ideas and opinions related
to Loan Product and about SBI Advance Product and from this, SBI will come to
know the customer requirements.
Data Interpretation:
? Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs,
and also using quantitative techniques (by using these techniques) accurate infor-
mation is obtained.
Page | 52
Classification & tabulation of data:
? The data thus collected were classified according to the categories, counting sheets &
the summary tables were prepared. The resultant tables were one dimensional, two
dimensional.
Statistical tools used for analysis:
? Out of the total respondents, the respondents who responded logically were taken into
account while going into statistical details & analysis of data. The tools that have been
used for analyzing data & inference drawing are mainly statistical tools like percent-
age, ranking, averages, etc.
? As per questionnaire and market surveys I have find out different responses from
different people. According to their responses I analyze the findings and draw certain
remarks.
Page | 53
CHAPTER 4
Page | 54
Analysis of Data for Car loan:
Q1: Your Residence is:
Frequency Percent Valid Percent Cumulative
Percent
Valid Own 26 51.0 52.0 52.0
Rented 11 21.6 22.0 74.0
Company Provided 5 9.8 10.0 84.0
Family 7 13.7 14.0 98.0
PG Accomodation 1 2.0 2.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we have seen that maximum people have their own house and
they prefer loan for buying a car by taking car loan from the bank.
(Table 11 and Chart 1 shows the Analysis)
Page | 55
Q2:Educational Qualification:
Frequency Percent Valid Percent Cumulative
Percent
Valid
Graduate 26 51.0 52.0 52.0
PG or Above 24 47.1 48.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the table and graph above it can be seen that
50.98% respondents are Graduate.
47.06% respondents are Post graduate.
01.96% respondents are Undergraduate.
(Table 12 and Chart 2 shows the Analysis)
Page | 56
Q3: Are you an account holder in SBI:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Yes 37 72.5 74.0 74.0
No 13 25.5 26.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we have seen that most of the people have their account in SBI i.e
72.55%.
(Table 13 and Chart 3 shows the Analysis)
Page | 57
Q3b: If yes, which type of account?
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Current Account 7 13.7 18.9 18.9
Savings Account 28 54.9 75.7 94.6
De mat Account 2 3.9 5.4 100.0
Total 37 72.5 100.0
Missing System 14 27.5
Total 51 100.0
Interpretation:
From the above Graph (3a) we have seen that most of the people have account in SBI and
most of them having savings account in SBI i.e.54.90%.
(Table 14 and Chart 4 shows the Analysis)
Page | 58
Q4a: Have you availed Loan facilities from any bank:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 30 58.8 60.0 60.0
No 20 39.2 40.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we have seen that most of the people availed loan facilities from the
bank.
(Table 15 and Chart 5 shows the Analysis)
Page | 59
Q4b: If yes, from which bank:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
LIC 5 9.8 16.7 16.7
UCO 6 11.8 20.0 36.7
HDFC 4 7.8 13.3 50.0
ICICI 13 25.5 43.3 93.3
Others 2 3.9 6.7 100.0
Total 30 58.8 100.0
Missing System 21 41.2
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the people not availed loan facilities from
any bank and besides that around 25.49% people availed loan facilities from ICICI Bank ra-
ther than SBI.
(Table 16 and Chart 6 shows the Analysis)
Page | 60
Q5a: Do you have any existing insurance cover premium paying and/or paid up poli-
cies:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 39 76.5 78.0 78.0
No 11 21.6 22.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we found that most of the people having their insurance cover premi-
um paying and/or paid up policies i.e.76.47%.
(Table 17 and Chart 7 shows the Analysis)
Page | 61
Q5b: If yes, mention the company you invested:
Frequency Percent Valid Percent Cumulative Percent
Valid
LIC 15 29.4 38.5 38.5
Bajaj Allianz 9 17.6 23.1 61.5
IOB 4 7.8 10.3 71.8
UCO 6 11.8 15.4 87.2
Others 5 9.8 12.8 100.0
Total 39 76.5 100.0
Missing System 12 23.5
Total 51 100.0
Interpretation:
From the table and graph above it can be seen that
29.41% respondents prefer LIC
17.65% respondents prefer Bajaj Allianz
11.76% respondents prefer UCO Bank
07.84% respondents prefer IOB.
(Table 18 and Chart 8 shows the Analysis)
Page | 62
Q6: Processing Charges or any other hidden charges are undertaken by the bank:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Yes 22 43.1 44.0 44.0
No 28 54.9 56.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
Most of the respondents have mentioned that there are no processing charges or any other
hidden charges are under taken by the bank. If also taken any charges it is in lesser amount.
(Table 19 and Chart 9 shows the Analysis)
Page | 63
Q7: How much time taken by the bank for sectioning the loan? (In days):
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Upto 10 days 13 25.5 26.0 26.0
Upto 20 days 15 29.4 30.0 56.0
Upto 30 days 13 25.5 26.0 82.0
More than 30 days 9 17.6 18.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
The time taken by the bank for the entire processing is depends upon the documents provided
by the customer and paper work done by the bank.
(Table 20 and Chart 10 shows the Analysis)
Page | 64
Q8: Are you aware to get facilities through online:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 43 84.3 86.0 86.0
No 7 13.7 14.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it shows that most of the people are aware to get facilities through
online as in today’s world internet is the main medium for the people.
(Table 21 and Chart 10 shows the Analysis)
Page | 65
Q9: Ensures transparency or accuracy of information:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Yes 44 86.3 88.0 88.0
No 6 11.8 12.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the banks shows transparency or accuracy
of information to their customers.
(Table 22 and Chart 12 shows the Analysis)
Page | 66
Q10: What is the annual gross income?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Less than 100000 4 7.8 8.0 8.0
100000-250000 7 13.7 14.0 22.0
250000-400000 16 31.4 32.0 54.0
400000-550000 13 25.5 26.0 80.0
550000-700000 3 5.9 6.0 86.0
700000-850000 2 3.9 4.0 90.0
850000-1000000 1 2.0 2.0 92.0
More than 1000000 4 7.8 8.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above it has been seen that most of the people who have income level of 250000 to
400000 prefer loan to reduce their taxes.
(Table 23 and Chart 13 shows the Analysis)
Page | 67
Analysis of Data for Home Loan:
Q1. Your residence is:
Frequency Percent Valid Percent Cumulative
Percent
Valid
Own 28 54.9 56.0 56.0
Rented 11 21.6 22.0 78.0
Company Provided 4 7.8 8.0 86.0
Family 3 5.9 6.0 92.0
PG Accomodation 4 7.8 8.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the people who have their own houses are
taking loan from the banks.
(Table 24 and Chart 14 shows the Analysis)
Page | 68
Q2. Educational Qualification:
Frequency Percent Valid Percent Cumulative Percent
Valid
Upto 10th Std. 2 3.9 4.0 4.0
Upto 10+2 3 5.9 6.0 10.0
Graduate 24 47.1 48.0 58.0
PG or Above 21 41.2 42.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it has been seen that mostly High educated person are preferring loan
products from the banks.
(Table 25 and Chart 15 shows the Analysis)
Page | 69
Q3a. Are you an account holder in State Bank of India
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 38 74.5 76.0 76.0
No 12 23.5 24.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above Graph it has been seen that most of the people have their account in SBI.
(Table 26 and Chart 16 shows the Analysis)
Page | 70
Q3b. If yes then which type of account:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Current Account 5 9.8 13.2 13.2
Savings Account 24 47.1 63.2 76.3
Fixed Deposit 6 11.8 15.8 92.1
De mat Account 3 5.9 7.9 100.0
Total 38 74.5 100.0
Missing System 13 25.5
Total 51 100.0
Interpretation:
Most of the people having their account in SBI and apart from that people mostly prefer sav-
ings account.
(Table 27 and Chart 17 shows the Analysis)
Page | 71
Q4a. Have you availed loan facilities from any banks?
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 38 74.5 76.0 76.0
No 12 23.5 24.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we have seen that most of the people availed loan facilities from the
bank.
(Table 28 and Chart 18 shows the Analysis)
Page | 72
Q4b: If yes, from which bank:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
LIC 16 31.4 42.1 42.1
UCO 5 9.8 13.2 55.3
HDFC 11 21.6 28.9 84.2
ICICI 4 7.8 10.5 94.7
Others 2 3.9 5.3 100.0
Total 38 74.5 100.0
Missing System 13 25.5
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the people prefer LIC Housing Finance
rather then other banks including SBI.
(Table 29 and Chart 19 shows the Analysis)
Page | 73
Q5a. Do you have any existing insurance cover premium paying and/or paid up policies:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 42 82.4 84.0 84.0
No 8 15.7 16.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
Most of the people having their existing insurance cover premium paying and/or paid up pol-
icies in banks and other non banking organizations.
(Table 30 and Chart 20 shows the Analysis)
Page | 74
Q5b: If yes, mention the company you invested:
Frequency Percent Valid Percent Cumulative Percent
Valid
LIC 12 23.5 28.6 28.6
Bajaj Allianz 10 19.6 23.8 52.4
IOB 4 7.8 9.5 61.9
UCO 5 9.8 11.9 73.8
Others 11 21.6 26.2 100.0
Total 42 82.4 100.0
Missing System 9 17.6
Total 51 100.0
Interpretation:
Most of the people preferring LIC because LIC provides a wide range of facilities for housing
loan awareness.
(Table 31 and Chart 21 shows the Analysis)
Page | 75
Q6. Processing Charges or any other hidden charges are undertaken by the bank:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Yes 21 41.2 42.0 42.0
No 29 56.9 58.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
It has been seen that in most of the banks are not taking any processing charges or any other
hidden charges from their customers.
(Table 32 and Chart 22 shows the Analysis)
Page | 76
Q7. How much time taken by the bank for sectioning the loan? (In days):
Frequency Percent Valid Percent Cumulative Percent
Valid
Upto 10 days 10 19.6 20.0 20.0
Upto 20 days 12 23.5 24.0 44.0
Upto 30 days 16 31.4 32.0 76.0
More than 30
days
12 23.5 24.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
The time taken by the bank for the entire processing is depends upon the documents provided
by the customer and paper work done by the bank.
(Table 33 and Chart 23 shows the Analysis)
Page | 77
Q8. Are you aware to get facilities through on line :
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 45 88.2 90.0 90.0
No 5 9.8 10.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it shows that most of the people are aware to get facilities through
online as in today’s world internet is the main medium for the people.
(Table 34 and Chart 24 shows the Analysis)
Page | 78
Q9. Ensures transparency or accuracy of information:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 46 90.2 92.0 92.0
No 4 7.8 8.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the banks shows transparency or accuracy
of information to their customers.
(Table 35 and Chart 25 shows the Analysis)
Page | 79
Q10. What is the annual gross income?
Frequency Percent Valid Percent Cumulative
Percent
Valid
100000-250000 4 7.8 8.0 8.0
250000-400000 9 17.6 18.0 26.0
400000-550000 11 21.6 22.0 48.0
550000-700000 8 15.7 16.0 64.0
700000-850000 10 19.6 20.0 84.0
850000-1000000 1 2.0 2.0 86.0
More than 1000000 7 13.7 14.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above it has been seen that most of the people who have income level of 400000 to
550000 prefer loan to reduce their taxes.
(Table 36 and Chart 26 shows the Analysis)
Page | 80
Conclusion:
? From the analysis part it can be conclude that customers have a good respond towards
SBI advance products in Bhubaneswar. SBI is in 1
st
position having large number of
customers & providing good services to them. The bank has a wide customer base, so
the bank should concentrate on this to retain these customers.
? In present scenario SBI is the largest advance product issuer in India. Within a very
short period of time the achievement made by SBI is excellent, what a normal bank
cannot expect, but it is being done by SBI. It happens due to employee dedication
towards the organization, fastest growing Indian economy, & brand image.
? To be the largest advance product (Car and Home Loan) issuer, SBI should focus on-
? Customized advance products
? Better customer services
? Fastest customers problem solving techniques
? Customer retention
? Apart from all the above, SBI believe in providing good customer services to their
customers which is a key factor for success in future.
Page | 81
Suggestion and Recommendations:
Recommendation:
? Customer awareness programme is required so that more people should attract to-
wards advance product.
? If there are any kind of hidden charges than that must disclose to customer before giv-
ing loan to them.
? SBI must take some steps so that customers can get their loan in time. Like phone ver-
ification by customer care that one customer is got their loan on time or not .It must
be before a certain date so necessary steps can be taken.
? SBI should more concern about physical verification rather than phone verification so
it will avoid fraud or cheating.
? Advance product selling agents must not give any type of wrong information regard-
ing advance product.
? For the better service new offers would be require.
? SBI customer care should more concern about the fastest settlement of customer prob-
lems.
? Before deducting or charging any monetary charge SBI must consult with customer.
? Agents should be trained, well educated & proper trained to convince the people
about different advance product.
? It is the duty of the bank to disclose all the material facts regarding advance product,
like interest charged, repayment period, other types of charges, etc.
? Special scheme should be implemented to encourage both customer and agents.
? The bank should increase the period for repayment of loan.
? SBI should more focus on Retaining existing customers.
? SBI must focus on Segmentation based on customer knowledge Product offering
based on customer demand.
? SBI must take feedbacks of customers regarding features & services.
Page | 82
Suggestions given by the consumers at the time of survey:
? There is more time period for repayment of Home and Car loan.
o (Rabindra Kumar Behera)
? SBI should take steps to solve customer problems immediately.
o (Biswajit Rout)
? Agents should be trained, well educated & proper trained to convince the people
about different product.
o (Sanjib Kumar Das)
? Loan sanction date should be according to customer convenient.
o (Abhisek Das)
? A customer awareness programme should be taking place in rural area.
o (Kasinath Panda)
Page | 83
ANNEXTURE
Page | 84
QUESTIONER
Dear sir/madam
Name :
Gender : ?Male ?Female
Date of birth :
No. of dependants :
Address :
Mobile no. :
I am the student of Regional College Of Management Autonomous, Department of
Management Studies, Bhubaneswar presently doing a project on “PROSPECTS OF
HOME LOAN AND CAR LOANS AT BHUBANESWAR CENTRE”. I request you to
kindly fill the questionnaire below and assure you that the data generated shall be kept
confidential.
? HOME LOAN ? CAR LOAN
1. Your residence is
?Owned ?Rented ?Company provided ?Ancestral/family
?PG Accommodation
2. Educational Qualification
?10
th
or below ?10+2 or below ?Graduate ?Post graduate
and above ?Other (specify)
3. Are you an account holder in State Bank Of India?
?Yes ?No
If yes, which type of account?
?Current ?Savings ?Fixed Deposit ?Demat
4. Have you availed loan facilities from any bank?
?Yes ?No
If yes, from which bank:
?LIC ?UCO ?HDFC ?ICICI ?Others
Page | 85
5. Do you have any existing insurance cover premium paying and/or paid up policies?
?Yes ?No
If yes, mention the company you invested:
?LIC ?Bajaj Allianz ?IOB ?UCO ?Others
6. Processing Charges or any other hidden charges are undertaken by the bank?
?Yes ?No
7. How much time taken by the bank for sanctioning the loan? (In days)
?10 or below ?10-20 ?20-30 ?30 and above
8. Are you aware to get facilities through online?
?Yes ?No
9. Ensures transparency or accuracy of information?
?Yes ?No
10. What is the annual gross income?
?Less than 100000 ?100001-250000 ?250001-400000
?400001-550000 ?550001-700000 ?700001-850000
?850001-1000000 ?1000000 and above
Page | 86
BIBLIOGRAPHY:
References:
? Kotler Philip, marketing management, (Pearson education, 14th edition)
? Malhotra K. Naresh, marketing research (An applied orientation), Research
design, (Prentice hall of India pvt. 5th edition)
Websites:
www.sbi.co.in
www.moneycontrol.com
www.wikipedia.org
www.deal4loans.com
www.studymaterial.com
doc_593410883.pdf
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.
REGIONAL COLLEGE OF MANAGEMENT
Chakadola Vihar, Chandrasekhar Pur, Bhubaneswar-751023
An Internship Report, Submitted to SBI, in completion of the Requirement of
Summer Internship
At
STATE BANK OF INDIA
Submitted By
SABYASACHI PANDA
PGDM 2012-14
RCM (A)
Project Manager
Mr. Birendra Kuamr Pattnaik
BM, SBI, Puri Station. Branch Puri
13
th
May,2013 to 13
th
July,2013
“PROSPECT OF CAR LOAN AND HOME LOAN
AT THE CENTRE”
I hereby declare that the Project Report entitled, “Prospect of Car loan
and Home loan at the center” is my original research based project
work, prepared for submission to SBI, in completion of the requirement
of Summer Internship under the direct guidance and supervision of both
my Internal and External Guides, and the project has not formed the
basis for the award of any degree, diploma, associate ship, fellowship or
any other similar titles, to be submitted to any University or Institution.
Sabyasachi Panda
Reg. No. 1201247028
PGDM : 2012-14
RCM (A)
Date :
Place :
This is to certify that Mr. Sabyasachi Panda, Reg. No. 1201247028,
student of PGDM (Full-Time), Regional College of Management
(Autonomous), Bhubaneswar has completed the Summer Internship
Project titled, “Prospect of Car loan and Home loan at the Center”
under my supervision, in completion of the requirement of Summer
Internship at SBI and Partial Fulfillment of his Post Graduate Diploma
in Management Course.
Prof. Hitesh Kumar Kar
Dept. of Marketing Management
RCM (A), Bhubaneswar
Date :
Place :
I deem it a great pleasure and opportunity to dedicate the following few
lines to some persons, who enabled me to complete this Project in the
stipulated time period.
I express my obligations and gratitude towards State Bank of India and
Regional College of Management (Autonomous), for making the
arrangements for this incredible Summer Internship Project in the first
Place.
I am really indebted to my Internal Guide, Prof. Hitesh Kumar Kar,
RCM(A) and Project Mentor, Mr. Birendra Kumar Pattnaik , BM, SBI
Puri Station Branch for their invaluable guidance, suggestions and
confidence in me.
I am extremely grateful to Prof. Samendra Patra, Dept. of Operation and
Mr. Aniket Vishwakarma, Trainee Officer, Puri Station Branch, SBI, for
their endless support and ever valuable suggestions.
Their contributions show in many suitable ways and were indeed
instrumental in achieving the final results. Last but not the least I am
indebted to all those who remained behind the scene but without their
help this project would not have been palpable.
Page | 1
TABLE OF CONTENTS
1.Chapter 1
1.1. Profile of the Student
1.2. Profile of the Organization
1.2.1. Overview
1.2.2. History
1.2.3. Products and Services
1.2.4. Awards & Recognitions by SBI
1.2.5. SWOT Analysis
1.2.6. Nature of the Project
1.2.7. Objective and Responsibility
2. Chapter 2
2.1. Theoretical Framework of the project
2.1.1. Competitors of SBI in Advance Products
2.2. Objective of the Project
2.3. Scope of the Project
2.4. Limitation of the project
2.5. Period of the study
Page | 2
3. Chapter 3
3.1. Research Methodology
3.1.1. Methodology
3.2. Observation
4. Chapter 4
4.1. Analysis of Data
4.1.1. Primary Data
4.2. Conclusion
4.3. Suggestion & Recommendation
5. Annexure
6. Bibliography and References
7. List of Charts
8. List of Tables
Page | 3
LIST OF CHART
CHARTS PAGE NO.
CHART NO.1 52
CHART NO.2 53
CHART NO.3 54
CHART NO.4 55
CHART NO.5 56
CHART NO.6 56
CHART NO.7 58
CHART NO.8 59
CHART NO.9 60
CHART NO.10 61
CHART NO.11 63
CHART NO.12 64
CHART NO.13 65
CHART NO.14 66
CHART NO.15 67
CHART NO.16 68
CHART NO.17 69
CHART NO.18 70
CHART NO.19 71
CHART NO.20 72
CHART NO.21 73
CHART NO.22 74
CHART NO.23 75
CHART NO.24 76
CHART NO.25 78
CHART NO.26 79
Page | 4
LIST OF TABLE
TABLES PAGE NO.
TABLE NO.1 06
TABLE NO.2 23
TABLE NO.3 31
TABLE NO.4 35
TABLE NO.5 35
TABLE NO.6 36
TABLE NO.7 37
TABLE NO.8 43&44
TABLE NO.9 44&45
TABLE NO.10 45
TABLE NO.11 52
TABLE NO.12 53
TABLE NO.13 54
TABLE NO.14 55
TABLE NO.15 56
TABLE NO.16 56
TABLE NO.17 58
TABLE NO.18 59
TABLE NO.19 60
TABLE NO.20 61
TABLE NO.21 63
TABLE NO.22 64
TABLE NO.23 65
TABLE NO.24 66
TABLE NO.25 67
TABLE NO.26 68
TABLE NO.27 69
TABLE NO.28 70
TABLE NO.29 71
TABLE NO.30 72
TABLE NO.31 73
TABLE NO.32 74
TABLE NO.33 75
TABLE NO.34 76
TABLE NO.35 78
Page | 5
CHAPTER 1
Page | 6
PROFILE OF THE STUDENT
My name is Sabyasachi Panda, pursuing Post Graduation Diploma in Management from
Regional College of Management (Autonomous), Bhubaneswar in the batch 2012-2014
having Reg no 1201247028. I had completed my graduation in engineering background in the
stream Computer Science & Engineering in the year 2010 from Gandhi Institute of
Engineering & Technology. Then I joined Genesys International Corp Ltd, Mumbai as a
developer and worked there for more then 1.6 years. Presently I am doing my Summer
Internship Program in State Bank of India in the topic “Prospect of Car Loan and Home Loan
at the Centre”. My contact no is 9692260568 and my mail id is [email protected].
Page | 7
STATE BANK OF INDIA
Type Public Sector
Traded as
NSE:SBIN,
BSE:500112,
LSE:SBID
Industry Banking, Financial Services
Founded 1 July 1955
Headquarter Mumbai, Maharashtra, India
Area Served Worldwide
Chairperson Pratip Chaudhuri(Chairman)
Products Credit cards, consumer banking, corporate banking, finance and
insurance, investment banking, mortgage loans, private banking,
wealth management
Owner(s) Government of India
Revenue US$ 36.950 billion (2012)
Profit US$ 3.202 billion (2012)
Employees 292,215(2012)
Website www.sbi.co.in
Table 1
Page | 8
OVERVIEW:
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. Government of India nationalized the Imperial Bank of India in 1955,
with 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.
Page | 9
STRUCTURE:
Board of Directors:
There are fifteen members in the SBI Board of Directors as on January 2013.
1. Pratip Chaudhuri (Chairman)
2. Hemant G. Contractor (Managing Director)
3. Diwakar Gupta (Managing Director)
4. A Krishna Kumar (Managing Director)
5. S. Visvanathan (Managing Director)
6. S. Venkatachalam (Director)
7. D. Sundaram (Director)
8. Parthasarathy Iyengar (Director)
9. Thomas Mathew (Director)
10. S.K. Mukherjee (Officer Employee Director)
11. Rajiv Kumar (Director)
12. Jyoti Bhushan Mohapatra (Workmen Employee Director)
13. Deepak Amin (Director)
14. Harichandra Bahadur Singh (Director)
15. D. K. Mittal (Director)
International Presence:
State Bank of India 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.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore
bank: State Bank of India (Mauritius). In Nigeria, SBI operates as INMB Bank (Indo-
Nigerian Merchant Bank). In Kenya, State Bank of India owns 76% of Giro Commercial
Bank, which it acquired for US$8 million in October 2005.
Page | 10
Associate Banks:
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
(Main Branch of SBI in Mumbai)
Non-Banking Subsidiaries:
Apart from its five associate banks, SBI also has the following non-banking
subsidiaries:
? SBI Capital Markets Ltd
? SBI Funds Management Pvt Ltd
? SBI Factors & Commercial Services Pvt Ltd
? SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
? SBI DFHI Ltd
? SBI Life Insurance Company Limited
? SBI General Insurance
Page | 11
HISTORY:
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1
July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India's
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.
The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the board of directors, which managed
the affairs of each bank, were mostly proprietary directors representing the large European
managing agency houses in India. The rest were government nominees, invariably civil
servants, one of whom was elected as the president of the board.
Page | 12
Page | 13
PRODUCT AND SERVICES:
Products:
SBI provides various types of products and services for their customers to fulfill their
dreams.
SBI PRODUCTS
Personal
Banking
NRI
Services
Agriculture
International
Banking
Corporate
Banking
SME
Government
Business
Page | 14
Services:
Personal banking:
State Bank of India offers a wide range of services in the Personal Banking Segment which
are indexed here. SBI products are designed with flexibility to suit customer’s personal
requirements.
PRESONAL BANKING
Personal
banking
Term
Deposits
Loan For
Pensioners
Recurring
Deposits
Housin
g Loan
Car
Loan
Educationa
l Loan
Personal
Loan
Loan
Against
Mortgage
Of
Property
Loan
against
Shares &
Debentures
Rent
Plus
Scheme
Medi-Plus
Scheme
Page | 15
NRI Services:
State Bank of India is the bank of choice for Indians wherever they live. With its vast
network of over 15,000 domestic branches, 69 dedicated NRI Branches in India, 186 Foreign
Offices in 34 countries, Correspondent Banking relations with over 400 global banks and tie
up with 26 Exchange Houses and 5 Banks across Middle East, NRIs can enjoy “anywhere –
anytime” banking facilities. The product suite for NRIs ranges from Bank Deposits, Loans
and Remittances to Investments, Online Equity Trading, Structured Products, Mutual Funds
and Insurance.
Agriculture:
State Bank of India Caters to the needs of agriculturists and landless agricultural labourers
through a network of 8750 rural and semi-urban branches. Apart from the branches, there are
428 Agricultural Development Branches (ADBs) which also cater to agriculturists. SBI is the
leaders in agri finance in the country with a portfolio of Rs. 64,000 crs in agri advances
covering around 80 lac accounts.
To give special focus to agriculture lending Bank has also appointed agri specialists in
various disciplines to handle projects/ guide farmers in their agri ventures. Advances are
given to borrowers for very small activities covering poorest of the poor to hitech activities
involving large fund outlays.
International banking:
International banking services of State Bank of India are delivered for the benefit of its Indian
customers, non-resident Indians, foreign entities and banks through a network of 180
offices/branches in 34 countries as on 30
th
Jan 2013, spread over all time zones. The network
is augmented by a cluster of Overseas and NRI branches within India and correspondent links
with over 483 banks, the world over. Bank's Joint Ventures and Subsidiaries abroad further
underline the Bank's international presence.
Page | 16
Corporate banking:
SBI is a one shop providing financial products / services of a wide range for large, medium
and small customer’s both domestic and international.
CORPORATE BANKING
Corporate
banking
Term
Loans
Deferred
Payment
Guarantees
Corporate
Loans
Export
Credit
Strategic
Business
Units
Pricing
Page | 17
SME:
? SBI offers SME EASY LOAN AGAINST PROPERTY
? SBI offers BEST DEAL FOR DEALERS at 9.70%* p.a. interest-(lowest Rate of
Interest)
Government business:
SBI’s out of 9315 branches in India, about 7000 branches are conducting Government Business. The
large network of our branches provides easy access to the common man to deposit the
following Government dues and pension payments.
1
• CENTRALISED PENSION PROCESSING CENTER (CPPC)
2
• SBI e-TAX
3
• GOVERNMENT ACCOUNTS
4
• SENIOR CITIZENS SAVINGS SCHEME
5
• SBI e-Freight
Page | 18
Award and Recognitions by SBI:
? Best Online Banking Award, Best Customer Initiative Award & Best Risk Manage-
ment Award (Runner Up) by IBA Banking Technology Awards 2010.
? The Bank of the year 2009, India (won the second year in a row) by The Banker Mag-
azine.
? Best Bank – Large and Most Socially Responsible Bank by the Business Bank
Awards 2009.
? Best Bank 2009 by Business India.
? The Most Trusted Brand 2009 by The Economic Times.
? Most Preferred Bank & Most preferred Home loan provider by CNBC.
? Visionaries of Financial Inclusion by FINO.
? Technology Bank of the Year by IBA Banking Technology Awards.
? SKOCH Award 2010 for Virtual Corporation Category for its e-payment solution.
? The Brand Trust Report 11th most trusted brand in Hindustan.
Page | 19
SWOT ANALYSIS:
SBI has its roots since 1806 which was later transformed under various names, finally SBI
Was established after the act in parliament on May 1955. In the year 1959 SBI took over 8
state owned banks and since then it started to grow up carrying its heritage of servicing peo-
ple at various economic levels.
Strengths:
? SBI is the largest bank in India in terms of market share, revenue and assets.
? As per recent data the bank has more than 13,000 outlets and 25,000 ATM centers
? The bank has its presence in 32 countries engaging currency trade all over the world
? The bank has a merged with State Bank of Saurashtra, State bank of Indore and the
bank is planning to go further acquisition in the current FY2012.
? SBI has the first mover advantage in commercial banking service
? SBI has recently changed its vision and mission statements showing a sign of inclina-
tion towards new age banking services
Weakness:
? Lack of proper technology driven services when compared to private banks
? Employees show reluctance to solve issues quickly due to higher job security and cus-
tomers’ waiting period is long when compared to private banks
? The banks spends a huge amount on its rented buildings
? SBI has the largest number of employees in banking sector, hence the bank spends a
considerable amount of its income in employee’s salary compensation
? In spite of modernization, the bank still carries the perception of traditional bank to
new age customers
Page | 20
Opportunities:
? SBI’s merger with five more banks namely State Bank of Hyderabad, State bank of
Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank
of Mysore are in approval stage
? Mergers will result in expansion of market share to defend its number one position
? SBI is planning to expand and invest in international operations due to good inflow of
money from Asian Market
? Since the bank is yet to modernize few of its banking operations, there is a better
scope of using advanced technologies and software to improve customer relations
? Young and talented pool of graduates and B schools are in rise to open new horizon to
so called “old government bank”
Threat:
? Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the
year FY2011
? This shows the reduce in market share to its close competitor ICICI
? Other private banks like HDFC, AXIS bank etc
? FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as
people tend to switch to foreign banks for better facilities and technologies in banking
service
? Other government banks like PNB, Andhra, Allahabad bank and Indian bank are
showing
? Customer prefer to switch to private banks and financial service providers for loans
and mortgages, as SBI involves stringent verification procedures and take long time
for processing.
Page | 21
Nature of the Project:
The nature of the project “PROSPECT OF CAR LOAN AND HOME LOAN AT
THE CENTER” is to find out the number of active customers taking loans from the bank.
To find out this we use the primary data as well as secondary data and compare with other
banks and non banking organizations analytically.
? Primary data includes what type of customer (Name, age, occupation, rural/urban area
and car loan/home loan).
? Secondary data includes, previously who are the customers take the loan.
? Comparative analysis done by taking few data from other banks and nonbanking or-
ganizations.
Page | 22
Objective and Responsibility:
Objective:
? The main object of the project is to find out the no of customers who are taking car
and house loan from SBI.
? Find out who are the major competitors of SBI.
? Compare with other banks and non banking organizations interns of loan amount, no
of customers and which type of loan (Car/Home).
? Customer perception about SBI.
? Selection of banks while taking the loan and why.
Responsibility:
? Our responsibility is to analysis the entire survey and find out the reason why people
prefer other banks then SBI more.
? Increase the potential customers for SBI Personal Banking products.
? Maintain a good relationship with the existing customers.
Page | 23
CHAPTER 2
Page | 24
Theoretical Framework of the Project:
Now a day not all the people have the capacity to fulfill their requirement by their own
earning, that’s why they need help from others. For this so many government & private sector
bank provide them money to fulfill their requirement, that’s call the Advance Product (loan
product) of the bank. All the banks have so many different types of advance product as per
the requirement of the people or customers. In Bhubaneswar also there are so many banks
those provide loan to the people for different causes.
Types of Advance Product:
? Home Loan
? Educational Loan
? Car Loan
? Personal Loan
? Property Loan
? Loan Against Shares\Debentures
? Rent Plus Scheme
Now a day a large no. of people are taking loan form different banks. It helps people to fulfill
their need and it really easy to repayment the loan amount with a longer repayment period.
My project is to know more about the advance product of Car Loan and Home Loan.
Page | 25
SBI Home loan:
"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.
Table 2
Page | 26
HOME Loan products:
Home loan products
Home loan
product
Related home
loan products
Page | 27
Home loan product:
1
• SBI MAXGAIN
2
• SBI YUVA HOME LOAN
3
• NRI HOME LOANS
4
• SBI REALTY
5
• SBI PAL
6
• SBI TRIBAL PLUS
7
• GRAM NIWAS
8
• SAHYOG NIWAS
Page | 28
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 crore is payable.
Page | 29
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.
Page | 30
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.
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:
Up to 15 years
Page | 31
SBI PAL:
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.
Page | 32
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 up to 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:
? Minimum Loan Amount: Nil
? Maximum Loan Amount: Rs. 5 lacs
“Maximum repayment period: 15 years”
Page | 33
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.
RELATED HOME LOAN PRODUCTS:
1.SBI HOME EQUITY
2.EARNEST MONEY DEPOSIT (EMD) SCHEME
3.SBI REVERSE MORTGAGE LOAN
Table 3
Page | 34
SBI Home Equity:
TOP-UP loan:
? Loan for any purpose other than speculative.
? Repayment period co-terminus with the underlying Home Loan account.
? Up to two Home Equity Loans allowed existing together.
? No prepayment/ preclusive penalty.
Eligibility:
? All Home Loans with a satisfactory repayment track of at least one year.
? Valid mortgage should have been created in favour 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.
Page | 35
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 upfront.
? 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.
Page | 36
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.
Features:
Eligibility:
Minimum age: 18 years as on the date of sanction
Maximum age:
70 years. i.e. the age by which the loan should be fully repaid, subject to availability of
sufficient, regular and continuous source of income for servicing the loan repayment.
Page | 37
Loan Amount:
Actual loan amount will be determined taking into consideration such factors as applicant’s
income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc.
To enhance loan eligibility you have option to add:
1
Income of your spouse/ your son/ daughter living with you, provided they have
a steady income and his/ her salary account is maintained with SBI.
2
Expected rent accruals (less taxes, cess, etc.) if the house/ flat are being
purchased are proposed to be rented out.
3
Depreciation, subject to some conditions.
4
Regular income from all sources.
Table 4
Security:
? Equitable mortgage of the property.
Margin/ LTV Ratio:
Individual Home
Loan Amount
Margin (Min.) (%) LTV (Loan to value ratio)
Ratio (%)
Upto Rs. 20 Lacs 10 90
Above Rs. 20
Lacs. and upto
Rs. 75 lacs
20
80
Above Rs. 75 lacs 25 75
Table 5
Page | 38
Home loans - interest rates (With effect from 04.02.2013)
All Rate are floating only (Base Rate= 9.70% p.a.)
Loan Amount Linkage with Base Rate over
the tenor of the loan
Effective Rate
Upto Rs. 30.00
lacs
0.25% above Base Rate 9.95% p.a.
Above Rs.
30.00 lacs
0.40% above Base Rate 10.10% p.a.
No fixed rate option in any limit bracket.
Table 6
Document:
List of papers/ documents applicable to all applicants:
? Completed loan application
? 2Passport size photographs
? Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ 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
? 3Passport size photographs
? Proof of identification as above
? Proof of residence as above
Page | 39
? Proof of business address as above
? Signature identification from his/her presents 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 Dept.
Additional documents required for Professionals/self- employed:
? Acknowledged copies of three years I.T. returns/ Assessment Orders.
? Photocopies of challans evidencing payment of Advance Income Tax.
Fees:
Loan Amount Processing Fee
Upto Rs. 25 Lacs 0.25% of loan amount, minimum Rs. 1,000/
Above Rs. 25 Lacs and upto Rs. 75
Lacs
Rs. 6,500/
Above Rs. 75 Lacs Rs. 10,000/
Table 7
Page | 40
SBI CAR LOAN PRODUCTS:
SBI NEW CAR LOAN SCHEME
SBI COMBO LOAN SCHEME
CERTIFIED PRE-OWNED CAR LOAN
CAR LOAN SCHEME FOR USED CAR
2-WHEELER LOAN
Page | 41
SBI New car loan scheme:
Salient features:
? No Advance EMI;
? Longest repayment tenure (7 years);
? Lowest interest rates;
? Lowest EMI;
? LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of ac-
cessories worth Rs 25000), 90% in case of Corporate Salary Package accounts;
? Interest Calculated on Daily Reducing Balance;
? Flexibility of payment of EMI anytime during the month;
? No pre-payment penalty;
? Optional SBI Life cover;
? Overdraft facility available.
Purpose:
? For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.
Eligibility:
? To avail an SBI Car Loan, you should be:
? Individual between the ages of 21-65 years of age.
? Regular employee of State / Central Government, Public Sector Undertaking, Private
Company or a reputed establishment.
? Professionals, self-employed, businessmen, proprietary/partnership firms who is an
income tax assessed.
? Net Annual Income Rs. 2,50,000/- and above.
Page | 42
SBI Combo loan scheme:
? SBI provides the loan for purchase of Car and Two Wheeler taken together.
Salient features:
? No Advance EMI;
? Longest repayment tenure (7 years);
? Lowest interest rates;
? Lowest EMI;
? LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of ac-
cessories worth Rs 25000), 90% in case of Corporate Salary Package accounts;
? Interest Calculated on Daily Reducing Balance;
? Flexibility of payment of EMI anytime during the month;
? No pre-payment penalty;
? Free Accident insurance; Optional SBI Life cover;
Purpose:
? For purchase of Car and Two Wheeler taken together.
Eligibility:
? Individual between the age of 21-65 years of age.
? Regular employee of State / Central Government, Public Sector Undertaking, Private
Company or a reputed establishment.
? Professionals, self-employed, businessmen, proprietary / partnership firms who is an
income tax assessed.
? Person engaged in Agricultural and allied activities.
? Net Annual Income Rs. 2,50,000/- and above.
Page | 43
Loan Amount:
? There is no upper limit for the amount of the loan. A maximum loan amount of 48
times of Net Monthly Income or 4 times of Net Annual Income can be sanctioned.
Documents Required:
? Statement of Bank account of the borrower for last 6 months.
? Passport size photographs of borrower(s).
? A copy of passport /voters ID card/PAN card.
? Proof of residence.
? Latest salary-slip showing all deductions
? I.T. Returns/Form 16: 2 years for salaried employees and 2 years for profession-
al/self-employed/businessmen duly accepted by the ITO wherever applicable
? Proof of official address for non-salaried individuals
Margin:
? 15% of the on road price of the Car and two-wheeler (which includes vehicle registra-
tion charges, insurance, one-time road tax and accessories).
Certified PRE-Owned CAR loan:
SBI provide the best car loan scheme for you to take a loan for purchase of Certified Pre-
owned Car, not more than 5 years old.
SBI offers:
? No Advance EMI;
? Longest repayment tenure (7 years);
? Lower interest rates
? Lowest EMI;
? LTV 85% of ‘On Road Price’ of car (includes registration, insurance and cost of ac-
cessories),
? Interest Calculated on Daily Reducing Balance;
? Flexibility of payment of EMI anytime during the month;
Page | 44
? Low pre-payment penalty, only 2%;
? Low processing fee (only 0.51% of loan amount);
? Free Accidental insurance; Optional SBI Life cover;
Purpose:
? Term Loans for purchase of Certified Pre Owned car, from certified used car deal-
ers, not more than five years old. The loan should be repaid within 7 years from the
date of the original purchase of the vehicle.
Eligibility:
? Individual between the ages of 21-65 years of age.
? A Permanent employee of State / Central Government, Public Sector Undertaking,
Private company or a reputed establishment or
? A Professionals or self-employed individual who is an income tax assessee or
? A Person engaged in agriculture and allied activities.
? Net Annual Income Rs. 100,000/- and above.
Loan Amount:
? Maximum Loan amount will be 2.5 times of net annual income. Spouse’s income
could also be considered provided the spouse becomes a co-borrower in the loan.
Margin:
? 15% of the on the road price (which includes vehicle registration charges, insurance,
one-time road tax and accessories).
Car Loan Scheme For used car:
SBI provide the best car loan scheme for you to take a loan for purchase of used car, not more
than 5 years old.
SBI offers you:
? No Advance EMI;
? Longest repayment tenure (7 years);
? Lower interest rates
? Lower EMI;
Page | 45
? LTV 85% of ‘On Road Price’ of car (includes registration, insurance and cost of ac-
cessories worth Rs 25000),
? Interest Calculated on Daily Reducing Balance;
? Flexibility of payment of EMI anytime during the month;
? Low pre-payment penalty, only 2%;
? Low processing fee (only 0.51% of loan amount);
? Free Accidental insurance ;
? Optional SBI Life cover.
Purpose:
? You can take finance for purchase of passenger cars, Multi Utility Vehicles (MUVs)
and SUVs not more than five years old.
Loan Amount:
? Maximum Loan amount will be 2.5 times of net annual income. Spouse’s income
could also be considered provided the spouse becomes a co-borrower in the loan.
Margin:
? 15% of the on the road price (which includes vehicle registration charges, insurance,
one-time road tax and accessories).
Interest Rates:
Types of products Tenure Rate of Interest
SBI CAR LOAN
SCHEME
For all tenures
For Term Loan and Overdraft:
0.75% above Base Rate, i.e. 10.45% p.a.
Used Vehicles
Up to 3 years 7.25% above Base Rate i.e. 16.95% p.a.
Above 3 yrs 7.50% above Base Rate i.e. 17.20% p.a.
Page | 46
Certified Pre-owned Car
Loan scheme
Up to 3 years 6.00% above Base Rate i.e. 15.70% p.a.
Above 3 yrs 6.50% above Base Rate i.e. 16.20% p.a.
SBI COMBO LOAN
SCHEME
For all tenures For Term Loan
0.75% above Base Rate i.e. 10.45% p.a.
Table 8
Competitors of SBI in Advance Products:
In case of Home Loan:
BANKS Rate of Interest Processing Fee Prepayment Charges
State Bank of
India
9.95% - 10.10% Up to 25 lacs : 0.125% of
loan amount minimum
Rs.1000/-
25-75 lacs : Rs.3,250/-
75 & above : 5,000/-
NIL
ICICI Bank 10.25% - 10.50% 0.50% of loan amount
upto 1 crore
N.A
HDFC Bank 10.15% - 10.40% 0.5% or maximum
10,000+service tax
(12.36%)
No prepayment
charges shall be
payable for partial or
full prepayments
irrespective of the
source
Page | 47
LIC Housing 10.25% - 11.20% Up to 50 lacs : 10,000
+(Service tax)
50 lacs & above : 15,000
+(service tax)
NIL
Axis Bank 10.25% - 10.50% 1% of the Loan amount NIL
Table 9
In case of Car Loan:
BANKS New Car
Loan(Reducing)
Used Car
Loan(Reducing)
Processing Fee
HDFC Bank 11.25% -12.25%
10.75% - 12%
(Corporate Rates)
15.25% - 18.25% Rs 1500/- to Rs.
2000/-
Kotak 11.50% - 13.50% 17% - 20% Rs.3300/- to Rs.4750/-
Axis Bank 11.50% - 14.50% 16.50% - 18% Rs.3000/- to Rs.3500/-
State Bank of
India
11.25% 17.25% (up to 3 years)
17.50% (above 3
years)
0.5% of Loan Amount
Table 10
Page | 48
Objective of the Project:
? Summer Internship Project gives a practical exposure and helps in acquiring the on
road skills.
? First and foremost objective is to find out the reasons for using of Home and Car Loan
Products from SBI.
? To find out the services that other bank given to their customer.
? To generate the leads through the survey.
? To sort out the prospective leads from the data I have collected through the survey.
? To build the relation ship with the customers and to follow up them, make sure that
they are satisfied with the product.
? To get more references from the customers and generate new leads by following a
chain process.
? To place SBI Loan Product ahead of the competitors.
? To find out the customer awareness on booming Loan Product market and to find out
the using patterns of the people
? To make the customer aware of the benefits of the product and convince him to go for
SBI Advance Product.
Scope of the Project:
? The geographical scope of the study is restricted to Bhubaneswar only with sample
size of 50 people.
? All the analysis and suggestions are based on the analysis of the primary data.
? There fore the scope of the study revolves around the following aspects:-
? Consumer perception towards Loan Product
? Consumer awareness about Loan Product scheme and its benefit.
? Aware the Bank about the customer problems, especially in case of Automobile and
Housing sector.
Page | 49
Limitation of the Project:
? During the survey period it is very difficult to explore proper data from the customers
as well as from the other banks due to some security reason. If also they provide some
information that is not enough for the project.
? Respondent may give biased answer for the required data. Some of the respondent did
not give the data.
? The study can also not be generalized for public and private sector banks of the coun-
try.
? Respondents tried to escape some statements by simply answering “neither agree nor
disagree” to most of the statements. This was one of the most important limitations
faced, as it was difficult to analyze and come at a right conclusion.
? In our study we have included 50 customers of bank because of time limit.
Period of the study:
? The entire project was of eight weeks from May 13
th
to July 13
th.
? The survey was conducted for about four weeks from May 20
th
to June 20
th
.
? The analysis and research took around two weeks.
Page | 50
CHAPTER 3
Page | 51
Research Methodology:
? Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues
involved & conduct situational analysis. The methodology includes the overall
research design, sampling procedure & fieldwork done & finally the analysis
procedure. The methodology used in the study consistent of sample survey using both
primary & secondary data. The primary data has been collected with the help of
questionnaire as well as personal observation book, magazine; journals have been
referred for secondary data. The questionnaire has been drafted & presented by the
researcher himself.
Sample Size:
? Sample of 50 people was taken into study, and their data was collected.
Sampling Technique:
? To study the Project, a Simple Random Sampling technique is used.
Data Collection:
? Collection of data is done through Questionnaire
? i.e., Primary data was collected through Questionnaire.
Observation:
? After data collection, I’m able to analyze customer’s views, ideas and opinions related
to Loan Product and about SBI Advance Product and from this, SBI will come to
know the customer requirements.
Data Interpretation:
? Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs,
and also using quantitative techniques (by using these techniques) accurate infor-
mation is obtained.
Page | 52
Classification & tabulation of data:
? The data thus collected were classified according to the categories, counting sheets &
the summary tables were prepared. The resultant tables were one dimensional, two
dimensional.
Statistical tools used for analysis:
? Out of the total respondents, the respondents who responded logically were taken into
account while going into statistical details & analysis of data. The tools that have been
used for analyzing data & inference drawing are mainly statistical tools like percent-
age, ranking, averages, etc.
? As per questionnaire and market surveys I have find out different responses from
different people. According to their responses I analyze the findings and draw certain
remarks.
Page | 53
CHAPTER 4
Page | 54
Analysis of Data for Car loan:
Q1: Your Residence is:
Frequency Percent Valid Percent Cumulative
Percent
Valid Own 26 51.0 52.0 52.0
Rented 11 21.6 22.0 74.0
Company Provided 5 9.8 10.0 84.0
Family 7 13.7 14.0 98.0
PG Accomodation 1 2.0 2.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we have seen that maximum people have their own house and
they prefer loan for buying a car by taking car loan from the bank.
(Table 11 and Chart 1 shows the Analysis)
Page | 55
Q2:Educational Qualification:
Frequency Percent Valid Percent Cumulative
Percent
Valid
Graduate 26 51.0 52.0 52.0
PG or Above 24 47.1 48.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the table and graph above it can be seen that
50.98% respondents are Graduate.
47.06% respondents are Post graduate.
01.96% respondents are Undergraduate.
(Table 12 and Chart 2 shows the Analysis)
Page | 56
Q3: Are you an account holder in SBI:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Yes 37 72.5 74.0 74.0
No 13 25.5 26.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we have seen that most of the people have their account in SBI i.e
72.55%.
(Table 13 and Chart 3 shows the Analysis)
Page | 57
Q3b: If yes, which type of account?
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Current Account 7 13.7 18.9 18.9
Savings Account 28 54.9 75.7 94.6
De mat Account 2 3.9 5.4 100.0
Total 37 72.5 100.0
Missing System 14 27.5
Total 51 100.0
Interpretation:
From the above Graph (3a) we have seen that most of the people have account in SBI and
most of them having savings account in SBI i.e.54.90%.
(Table 14 and Chart 4 shows the Analysis)
Page | 58
Q4a: Have you availed Loan facilities from any bank:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 30 58.8 60.0 60.0
No 20 39.2 40.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we have seen that most of the people availed loan facilities from the
bank.
(Table 15 and Chart 5 shows the Analysis)
Page | 59
Q4b: If yes, from which bank:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
LIC 5 9.8 16.7 16.7
UCO 6 11.8 20.0 36.7
HDFC 4 7.8 13.3 50.0
ICICI 13 25.5 43.3 93.3
Others 2 3.9 6.7 100.0
Total 30 58.8 100.0
Missing System 21 41.2
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the people not availed loan facilities from
any bank and besides that around 25.49% people availed loan facilities from ICICI Bank ra-
ther than SBI.
(Table 16 and Chart 6 shows the Analysis)
Page | 60
Q5a: Do you have any existing insurance cover premium paying and/or paid up poli-
cies:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 39 76.5 78.0 78.0
No 11 21.6 22.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we found that most of the people having their insurance cover premi-
um paying and/or paid up policies i.e.76.47%.
(Table 17 and Chart 7 shows the Analysis)
Page | 61
Q5b: If yes, mention the company you invested:
Frequency Percent Valid Percent Cumulative Percent
Valid
LIC 15 29.4 38.5 38.5
Bajaj Allianz 9 17.6 23.1 61.5
IOB 4 7.8 10.3 71.8
UCO 6 11.8 15.4 87.2
Others 5 9.8 12.8 100.0
Total 39 76.5 100.0
Missing System 12 23.5
Total 51 100.0
Interpretation:
From the table and graph above it can be seen that
29.41% respondents prefer LIC
17.65% respondents prefer Bajaj Allianz
11.76% respondents prefer UCO Bank
07.84% respondents prefer IOB.
(Table 18 and Chart 8 shows the Analysis)
Page | 62
Q6: Processing Charges or any other hidden charges are undertaken by the bank:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Yes 22 43.1 44.0 44.0
No 28 54.9 56.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
Most of the respondents have mentioned that there are no processing charges or any other
hidden charges are under taken by the bank. If also taken any charges it is in lesser amount.
(Table 19 and Chart 9 shows the Analysis)
Page | 63
Q7: How much time taken by the bank for sectioning the loan? (In days):
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Upto 10 days 13 25.5 26.0 26.0
Upto 20 days 15 29.4 30.0 56.0
Upto 30 days 13 25.5 26.0 82.0
More than 30 days 9 17.6 18.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
The time taken by the bank for the entire processing is depends upon the documents provided
by the customer and paper work done by the bank.
(Table 20 and Chart 10 shows the Analysis)
Page | 64
Q8: Are you aware to get facilities through online:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 43 84.3 86.0 86.0
No 7 13.7 14.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it shows that most of the people are aware to get facilities through
online as in today’s world internet is the main medium for the people.
(Table 21 and Chart 10 shows the Analysis)
Page | 65
Q9: Ensures transparency or accuracy of information:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Yes 44 86.3 88.0 88.0
No 6 11.8 12.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the banks shows transparency or accuracy
of information to their customers.
(Table 22 and Chart 12 shows the Analysis)
Page | 66
Q10: What is the annual gross income?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Less than 100000 4 7.8 8.0 8.0
100000-250000 7 13.7 14.0 22.0
250000-400000 16 31.4 32.0 54.0
400000-550000 13 25.5 26.0 80.0
550000-700000 3 5.9 6.0 86.0
700000-850000 2 3.9 4.0 90.0
850000-1000000 1 2.0 2.0 92.0
More than 1000000 4 7.8 8.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above it has been seen that most of the people who have income level of 250000 to
400000 prefer loan to reduce their taxes.
(Table 23 and Chart 13 shows the Analysis)
Page | 67
Analysis of Data for Home Loan:
Q1. Your residence is:
Frequency Percent Valid Percent Cumulative
Percent
Valid
Own 28 54.9 56.0 56.0
Rented 11 21.6 22.0 78.0
Company Provided 4 7.8 8.0 86.0
Family 3 5.9 6.0 92.0
PG Accomodation 4 7.8 8.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the people who have their own houses are
taking loan from the banks.
(Table 24 and Chart 14 shows the Analysis)
Page | 68
Q2. Educational Qualification:
Frequency Percent Valid Percent Cumulative Percent
Valid
Upto 10th Std. 2 3.9 4.0 4.0
Upto 10+2 3 5.9 6.0 10.0
Graduate 24 47.1 48.0 58.0
PG or Above 21 41.2 42.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it has been seen that mostly High educated person are preferring loan
products from the banks.
(Table 25 and Chart 15 shows the Analysis)
Page | 69
Q3a. Are you an account holder in State Bank of India
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 38 74.5 76.0 76.0
No 12 23.5 24.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above Graph it has been seen that most of the people have their account in SBI.
(Table 26 and Chart 16 shows the Analysis)
Page | 70
Q3b. If yes then which type of account:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Current Account 5 9.8 13.2 13.2
Savings Account 24 47.1 63.2 76.3
Fixed Deposit 6 11.8 15.8 92.1
De mat Account 3 5.9 7.9 100.0
Total 38 74.5 100.0
Missing System 13 25.5
Total 51 100.0
Interpretation:
Most of the people having their account in SBI and apart from that people mostly prefer sav-
ings account.
(Table 27 and Chart 17 shows the Analysis)
Page | 71
Q4a. Have you availed loan facilities from any banks?
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 38 74.5 76.0 76.0
No 12 23.5 24.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph we have seen that most of the people availed loan facilities from the
bank.
(Table 28 and Chart 18 shows the Analysis)
Page | 72
Q4b: If yes, from which bank:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
LIC 16 31.4 42.1 42.1
UCO 5 9.8 13.2 55.3
HDFC 11 21.6 28.9 84.2
ICICI 4 7.8 10.5 94.7
Others 2 3.9 5.3 100.0
Total 38 74.5 100.0
Missing System 13 25.5
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the people prefer LIC Housing Finance
rather then other banks including SBI.
(Table 29 and Chart 19 shows the Analysis)
Page | 73
Q5a. Do you have any existing insurance cover premium paying and/or paid up policies:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 42 82.4 84.0 84.0
No 8 15.7 16.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
Most of the people having their existing insurance cover premium paying and/or paid up pol-
icies in banks and other non banking organizations.
(Table 30 and Chart 20 shows the Analysis)
Page | 74
Q5b: If yes, mention the company you invested:
Frequency Percent Valid Percent Cumulative Percent
Valid
LIC 12 23.5 28.6 28.6
Bajaj Allianz 10 19.6 23.8 52.4
IOB 4 7.8 9.5 61.9
UCO 5 9.8 11.9 73.8
Others 11 21.6 26.2 100.0
Total 42 82.4 100.0
Missing System 9 17.6
Total 51 100.0
Interpretation:
Most of the people preferring LIC because LIC provides a wide range of facilities for housing
loan awareness.
(Table 31 and Chart 21 shows the Analysis)
Page | 75
Q6. Processing Charges or any other hidden charges are undertaken by the bank:
Frequency Percent Valid Percent Cumulative Per-
cent
Valid
Yes 21 41.2 42.0 42.0
No 29 56.9 58.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
It has been seen that in most of the banks are not taking any processing charges or any other
hidden charges from their customers.
(Table 32 and Chart 22 shows the Analysis)
Page | 76
Q7. How much time taken by the bank for sectioning the loan? (In days):
Frequency Percent Valid Percent Cumulative Percent
Valid
Upto 10 days 10 19.6 20.0 20.0
Upto 20 days 12 23.5 24.0 44.0
Upto 30 days 16 31.4 32.0 76.0
More than 30
days
12 23.5 24.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
The time taken by the bank for the entire processing is depends upon the documents provided
by the customer and paper work done by the bank.
(Table 33 and Chart 23 shows the Analysis)
Page | 77
Q8. Are you aware to get facilities through on line :
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 45 88.2 90.0 90.0
No 5 9.8 10.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it shows that most of the people are aware to get facilities through
online as in today’s world internet is the main medium for the people.
(Table 34 and Chart 24 shows the Analysis)
Page | 78
Q9. Ensures transparency or accuracy of information:
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 46 90.2 92.0 92.0
No 4 7.8 8.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above graph it has been seen that most of the banks shows transparency or accuracy
of information to their customers.
(Table 35 and Chart 25 shows the Analysis)
Page | 79
Q10. What is the annual gross income?
Frequency Percent Valid Percent Cumulative
Percent
Valid
100000-250000 4 7.8 8.0 8.0
250000-400000 9 17.6 18.0 26.0
400000-550000 11 21.6 22.0 48.0
550000-700000 8 15.7 16.0 64.0
700000-850000 10 19.6 20.0 84.0
850000-1000000 1 2.0 2.0 86.0
More than 1000000 7 13.7 14.0 100.0
Total 50 98.0 100.0
Missing System 1 2.0
Total 51 100.0
Interpretation:
From the above it has been seen that most of the people who have income level of 400000 to
550000 prefer loan to reduce their taxes.
(Table 36 and Chart 26 shows the Analysis)
Page | 80
Conclusion:
? From the analysis part it can be conclude that customers have a good respond towards
SBI advance products in Bhubaneswar. SBI is in 1
st
position having large number of
customers & providing good services to them. The bank has a wide customer base, so
the bank should concentrate on this to retain these customers.
? In present scenario SBI is the largest advance product issuer in India. Within a very
short period of time the achievement made by SBI is excellent, what a normal bank
cannot expect, but it is being done by SBI. It happens due to employee dedication
towards the organization, fastest growing Indian economy, & brand image.
? To be the largest advance product (Car and Home Loan) issuer, SBI should focus on-
? Customized advance products
? Better customer services
? Fastest customers problem solving techniques
? Customer retention
? Apart from all the above, SBI believe in providing good customer services to their
customers which is a key factor for success in future.
Page | 81
Suggestion and Recommendations:
Recommendation:
? Customer awareness programme is required so that more people should attract to-
wards advance product.
? If there are any kind of hidden charges than that must disclose to customer before giv-
ing loan to them.
? SBI must take some steps so that customers can get their loan in time. Like phone ver-
ification by customer care that one customer is got their loan on time or not .It must
be before a certain date so necessary steps can be taken.
? SBI should more concern about physical verification rather than phone verification so
it will avoid fraud or cheating.
? Advance product selling agents must not give any type of wrong information regard-
ing advance product.
? For the better service new offers would be require.
? SBI customer care should more concern about the fastest settlement of customer prob-
lems.
? Before deducting or charging any monetary charge SBI must consult with customer.
? Agents should be trained, well educated & proper trained to convince the people
about different advance product.
? It is the duty of the bank to disclose all the material facts regarding advance product,
like interest charged, repayment period, other types of charges, etc.
? Special scheme should be implemented to encourage both customer and agents.
? The bank should increase the period for repayment of loan.
? SBI should more focus on Retaining existing customers.
? SBI must focus on Segmentation based on customer knowledge Product offering
based on customer demand.
? SBI must take feedbacks of customers regarding features & services.
Page | 82
Suggestions given by the consumers at the time of survey:
? There is more time period for repayment of Home and Car loan.
o (Rabindra Kumar Behera)
? SBI should take steps to solve customer problems immediately.
o (Biswajit Rout)
? Agents should be trained, well educated & proper trained to convince the people
about different product.
o (Sanjib Kumar Das)
? Loan sanction date should be according to customer convenient.
o (Abhisek Das)
? A customer awareness programme should be taking place in rural area.
o (Kasinath Panda)
Page | 83
ANNEXTURE
Page | 84
QUESTIONER
Dear sir/madam
Name :
Gender : ?Male ?Female
Date of birth :
No. of dependants :
Address :
Mobile no. :
I am the student of Regional College Of Management Autonomous, Department of
Management Studies, Bhubaneswar presently doing a project on “PROSPECTS OF
HOME LOAN AND CAR LOANS AT BHUBANESWAR CENTRE”. I request you to
kindly fill the questionnaire below and assure you that the data generated shall be kept
confidential.
? HOME LOAN ? CAR LOAN
1. Your residence is
?Owned ?Rented ?Company provided ?Ancestral/family
?PG Accommodation
2. Educational Qualification
?10
th
or below ?10+2 or below ?Graduate ?Post graduate
and above ?Other (specify)
3. Are you an account holder in State Bank Of India?
?Yes ?No
If yes, which type of account?
?Current ?Savings ?Fixed Deposit ?Demat
4. Have you availed loan facilities from any bank?
?Yes ?No
If yes, from which bank:
?LIC ?UCO ?HDFC ?ICICI ?Others
Page | 85
5. Do you have any existing insurance cover premium paying and/or paid up policies?
?Yes ?No
If yes, mention the company you invested:
?LIC ?Bajaj Allianz ?IOB ?UCO ?Others
6. Processing Charges or any other hidden charges are undertaken by the bank?
?Yes ?No
7. How much time taken by the bank for sanctioning the loan? (In days)
?10 or below ?10-20 ?20-30 ?30 and above
8. Are you aware to get facilities through online?
?Yes ?No
9. Ensures transparency or accuracy of information?
?Yes ?No
10. What is the annual gross income?
?Less than 100000 ?100001-250000 ?250001-400000
?400001-550000 ?550001-700000 ?700001-850000
?850001-1000000 ?1000000 and above
Page | 86
BIBLIOGRAPHY:
References:
? Kotler Philip, marketing management, (Pearson education, 14th edition)
? Malhotra K. Naresh, marketing research (An applied orientation), Research
design, (Prentice hall of India pvt. 5th edition)
Websites:
www.sbi.co.in
www.moneycontrol.com
www.wikipedia.org
www.deal4loans.com
www.studymaterial.com
doc_593410883.pdf