INDUSTRIAL PROFILE

Introduction
The Financial services industry includes firms that deal with the management, investment, transfer, and lending of money. Though every company handles money in the course of doing business, financial institutions actually make money their business; rather than selling a line of physical products, they offer customers their fiscal expertise. The industry itself is very large, encompassing everything from small, local banks to the multinational investment banks regularly featured in news headlines. Financial system and markets in India Government of India, Ministry of Finance at the helm, statutes, statutory authorities, financial intermediaries, other financial institutions, agents who operate in the markets etc.
Financial Management is an integral part of Business Management. Finance is one of the key functions in an organisation. The other key functions in an organisation are: 1. Production 2. Human Resources 3. Marketing

Some of the key finance functions are: 1. Financial planning and estimation of finance required for the organisation 2. Mobilisation of financial resources required as above 3. Ensuring that the funds are available in adequate quantity at appropriate time and at an affordable cost 4. Management of cash in the organisation through cash flow statement 5. Management of investment outside the business enterprise in other organisations 6. Management of risk in dealing with foreign exchange for imports and export Short-term and long-term objectives of Financial Management Short-term objective The short-term objective of Financial Management is to procure financial resources at an affordable cost thereby increasing the return to the shareholders in the form of Earnings Per Share (EPS). EPS comprises two elements namely Dividend per share (DPS) and Retained Earnings per share (REPS or Reserves per share). This objective is often times referred to as profit maximisation. This is known as the
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short-term objective as it is done on a continuous, year-to-year basis. One or more of the following measures can achieve this: 1. Monitoring of costs on a continuous basis through budgets 2. Suitable cost reduction techniques wherever the costs are high 3. Minimisation of cost of borrowed capital from outside through financial discipline 4. Proper mix of equity and debt (known as financial leverage Long-term objective The long-term objective of financial management is to increase the wealth of the shareholders. The term wealth refers to various business assets of the enterprise that are free of debt. This means that this wealth belongs to the equity shareholders. It is often reflected in the book value of the share as reflected in the balance sheet. Equity share capital + Reserves and Surplus

INDIAN BANKING SYSTEM:

Organized banking was active in India since the establishment of the general bank of India in 1786. After the independence, the reserve bank of India RBI was established as the central bank and in 1955, the imperial bank of India the biggest bank at the time ,was taken over by the government to from state owned state bank of India . RBI had undertaken an exercise to merge weak banks to strong banks and the total number of banks, thus reduced from 566in 1951 to 85 in 1969. With the objective of reaching out to masses and meeting the credit needs of all sections of people, the government nationalized 14 large banks in 1969 followed by another 6 banks in 1980. This period saw enormous growth in the number of the branches and the banks branches network become wide enough to reach the weakest sections of the society in a vast country like India. SBIs network of 9033 domestic branches and 48 overseas offices is considered to be one of the largest for any banks in the world The economic reforms unleashed by the government in early nineties included banking sector too, to a significant extant. Entry of new private sector banks was permitted under specific guidelines issued by RBI. A number of liberalization and
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deregulation measures aimed at consolidation, efficiency productivity, asset quality capital adequacy and profitability have been introduced by the RBI to bring Indian banks in line with international beat practices.

Banks are prone to crisis:

The traditional bank has an inherent tendency to crisis. This is because the bank borrows short terms and lends leveraged long term. The sum of deposits and the banks capital will never equal more than a modest percentage of the loans the bank has outstanding. Even if liquidity is not a concern, if there is no run on the bank, banks can simply choose a ban portfolio of loans, and lose more money than they have. The US Savings and Loan Crisis in the late 1980s and early 1990s is such an incident.

STRUCTURE OF THE INDIAN BANKING INDUSTRY

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories Non-Scheduled Banks and Scheduled Banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the Stat Bank of India and its group banks, regional rural banks and private sector banks these banks have over 67,000 branches spread across the country. The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth in the geographical coverage of banks. Every bank had to earmark a minimum percentage of their loan portfolio to sectors identified as priority sectors. The manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980. Since then the number of scheduled commercial banks increased four-fold and the number of bank branches increased eight-fold. After the second phase of financial sector reforms and liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and the foreign banks. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. Eight new private sector banks are presently in operation. These banks due to their late start have access to state-of-the-art technology, which in turn helps them to save on manpower costs and provide better services.

STRUCTURE OF THE INDIAN BANKING

RESERVE BANK OF INDIA Central Bank and Supreme Monetary Authority

Scheduled of Banking Sector

COMMERICAL BANKS

CO-OPERATIVE BANK

Foreign Banks

Regional Rural Banks Private Banks

Urban cooperative Banks

State cooperative Banks

Public Banks

OLD BANKS

New Banks

State Banks of India & Other Banks

Other Nationalized Banks

MAJOR FOREIGN BANKS IN INDIA ARE:

ABN-AMRO Bank Abu Dhabi Commercial Bank Ltd. American Express Bank Ltd BNP Paribas Citibank HSBC Ltd

PUBLIC BANKS IN INDIA:

The Banking System in India is dominated by nationalized banks. The Nationalization of Banks in India took place in 1969 by Mrs. Indira Gandhi the then Prime Minister. The major objective Behind Nationalization Banks was to spread banking Infrastructure in Rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. These Banks were Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores. Some of the following public sector banks in India are listed below.

LIST OF PUBLIC SECTOR BANKS IN INDIA IS AS FOLLOWS:

Allahabad Bank Andhra Bank Bank of Baroda Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank 6

 Oriental Bank of Commerce Bank Of Baroda State Bank of Bikaner & Jaipur State Bank of India (SBI)

MAJOR PRIVATE BANKS IN INDIA ARE:

Bank of Rajasthan Centurion Bank of Punjab

UTI Bank

YES Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank ING Vysya Bank

Types of loans:
A. Secured

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan ..A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.A type of loan especially used in limited partnership agreements is the recourse note. A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk. A pre-settlement loan is a non-recourse debt this is when a monetary loan is given based on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for a pre-settlement loan. This is considered a secured non-recourse debt due to the fact if the case reaches a verdict in favor of the defendant the loan is forgiven.

Home loan charges.

These interest rates matter a lot and influence your monthly installment burden. Hence, it is very important to choose that home loan which offers the best deal of interest rate to you. The process of approval of home loans in India is simple. The applicant can credit his/her property against the loan or if applicant is a salaried individual then he/she should enclose documents proving his/her earnings. The other related identification proofs vary from lender to lender. As a last piece of advice, one must always remember to go through with all terms and conditions mentioned in the home loans document. The home loans market is one which one can enter very easily. However, a little amount of intelligence and awareness can help an individual get the best deal available in the market. So, pick up a pen and a paper and choose the loan that will get you the home of your choice.

A boom in the retail sector has seen an immense increase in the home loan interest rates over the past 4 years. Home loan rates have doubled over the past 4 years. The present problem of inflation has also had a negative effect on the consumers as the fixed and the floating rate of interests have soared to an alarming degree. This in turn has certainly affected the loan eligibility for home loans in India. This has also lead to loan borrowers re-evaluating their options to avail new eligibility criteria.At this time, it is important to understand how to enhance ones home loan eligibility. Given below are some ways which can help in this Endeavour :

Increasing the home loan tenure:

The easiest method available to increase ones home loan eligibility is by taking home loans for the Maximum Tenure. As an example, let us consider an individual who earns a monthly salary of Rs 60,000. He decides to purchase a house, and for that he buys a home loan. After deducting a monthly expenditure of Rs 35,000, the individual is able to save Rs 25,000. Undoubtedly, he will use his savings for repaying the loan in the form of equated monthly installments (EMI). Now, lets consider that the installments for a home loan of Rs 1 lakh come at an interest rate of 12.5%. If the loan is taken for tenure of 15 years, the EMI calculated stands at Rs 1,232.50. For this data, his home loan eligibility will be 20.3 lakh. However, it is possible for the same individual to increase his home loan eligibility by around Rs 2 lakh if he can extend his tenure to 20 years. Assuming the same rate of interest i.e. 12.5% and now 20 year tenure on Rs 1 lakh loan, the EMI turns out to be Rs 1,136. Consequently, the home loan eligibility comes to Rs 22 lakh.

Dont rush towards a home loan:

Less information is as harmful as wrong information. The importance of this statement lies in the fact that today there are many banks offering different varieties of home loans to individuals. Nowadays, almost every bank is offering a home loan with the repayment period of maximum 20 years. The next important thing to consider after the tenure is the rate of interest. For that reason, it is always advised, never to rush to purchase a home loan.
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It is better to carry out a research regarding the available home loan schemes and to study the market meticulously to make the best use of what many banks and housing finance companies are willing to lend before making a choiceThe next decision that an individual needs to make is to choose between floating and fixed interest rate on home loan, which is largely based on ones personal preference and knowledge about the both. However, the floating rate home loans are available for anywhere between 11.5-13%.Also, it might not be necessary that the first scheme being presented by a bank employee would be the best for an individual. Hence, always ask questions and enquire about the various schemes available with the bank, and then make the final call. When in need go for a joint loan:

If one spouses income comes short of the required amount set by the bank to issue a loan, then several banks and HFCs have come up with a joint loan option. This option guarantees a loan for both the husband and wife earning a combined income of Rs 1 lakh per month. The choice for a greater loan is available with either husband or wife earning Rs 60,000 per month. B. Unsecured: Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages:

credit card debt personal loans bank overdrafts credit facilities or lines of credit corporate bonds

The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United

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Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.

BANKING SERVICES IN INDIA

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KEY PRODUCT ANALYZED

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NOTE. This diagram is showing the Banking Key Products such as Deposits, Retail credit, Credit card, Debit card, Internet banking.

BRANCHES OF VARIOUS BANKING:

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STATE BANK OF INDIA BRANCHES:

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in India.

ICICI BANK BRANCHES:

ICICI Bank is India's second-largest bank. The Bank has a network of about 573 branches and extension counters and over 2,000 ATMs. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its whollyowned subsidiary

HDFC BANK BRANCHES:

HDFC Was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. The Bank commenced operations as a Scheduled Commercial Bank in January 1995. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread over 228 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are serviced through Telephone Banking. The Bank also has a network of about over 1054 networked ATMs across these cities. HDFC Bank's ATM network can be accessed by all domestic and international Visas / MasterCard Bank Of Baroda was established in 1895 at Lahore. BOB has the distinction of being the first Indian bank to have been started solely with Indian capital. In 1969, Bank Of Baroda was nation

IMPACT OF GLOBALIZATION ON BANKING SERVICE IN INDIA

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BUSINESS ENVIRONMENT OF GLOBAL BANK:

Global Bank has undergone a series of substantial changes in the last 10 years, starting with the deregulation of the U.S. financial services industry in the late 1990s. Seeking to rapidly expand its portfolio, the bank undertook a series of mergers and acquisitions. Global Bank now has over 200 branches across the western United States, and offers a complete line of integrated financial services, including: Lending. This includes credit cards, consumer loans (such as, auto and line of credit), mortgage, and home equity. Investing. This includes certificates of deposit, trust services, brokerage services (including securities), annuities, individual retirement accounts, and mutual funds. Financial planning. This includes comprehensive financial planning services, including retirement, education, tax, and estate planning, including both future planning and plan execution services.

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HOME LOAN INDUSTRY

OUR FOUNDER and CEO

Home Loan is committed to helping our customers navigate through all of life's financial challenges. John Murphy

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IMPORTANT DATES IN HOME LOAN'S HISTORY John Murphy acquires Bank charter and begins building Home Loan Investment Bank Home Loan Investment Bank opens first headquarters in Providence, Rhode Island Residential lending expands to mid-Atlantic Assets exceed $60 million. Home Loan Investment Bank becomes the first mortgage originator to sell a pool of home equity loans to Freddie Mac and the second to Fannie Mae Assets exceed $100 million FDIC deposit insurance granted Assets exceed $200 million Home Loan Investment Bank completes first loan securitization, and also reactivates SBA Lending Program Assets exceed $250 million. Home Loan Investment Bank opens corporate headquarters at 2 Altieri Way in Warwick, Rhode Island Home Loan Investment Bank receives Federal Savings Bank status Home Loan Investment Bank opens state-of-the-art call center Residential lending expands to the west coast Home Loan Investment Bank receives SBA "Preferred Lender" status in Rhode Island, Massachusetts, New Hampshire and New York Home Loan Investment Bank receives "outstanding" rating for Community Reinvestment for the 10th consecutive year Commercial lending expands into mid-Atlantic states. Bank begins offering USDA loans Home Loan Investment Bank surpasses $10 billion in mortgage originations Home Loan Investment Bank is recognized as one of Freddie Mac's top 150 lenders in the country Home Loan Investment Bank website revamped to better serve customer needs

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Home Loans in India

Housing loan is the finance taken for buying/modifying a real estate property. Home Loans, Home extension loans, home improvement loans, NRI loans and home equity loans fall under the category of housing loans.

Any Resident or Non-resident individual who is planning to buy a house in India can apply for a Home loan. If you have decided to buy a property in the near future you can even apply for a loan before you select your property. Once you decide the maximum amount that you can put into the property, all Housing Finance Institutions let you know how much you are eligible for and this helps you plan out your budget. The Home loan sector in India is the pivotal role player in the growth of the real estate scenario in India. With tax incentives given to the housing finance sector in the annual budget of 2001, transactions related to buying and selling of residential properties increased considerably and was much higher as compared to previous years.Since the new class of buyers are relatively younger set of customers who are more aware about legal documentation and approvals, buyers are now more 'endusers' rather than investors; the property market in India undergoes transformation to align itself with global standards with an increased emphasis on quality & cost control and documentation methods. In the current economy of India, the real estate sector has the maximum propensity to generate income and demand for materials, equipment and services. It can be said that housing finance companies were formed for co-existing with buyer's requirements of housing loans for investing in properties. Home loans are made available by financial institutions to both Indian and NRI customers at floating and fixed rate of interest and also at attractive EMI options.

For construction or buying a new home For home repairs and renovations

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For purchase of plots Against mortgage of property

No tax benefits are available for NRI customers unless you file returns and thereby become eligible to avail of the tax benefits. Besides home loans, Commercial property loans are also available and different financial institutions in India provide commercial loans at different rates and different upper limits. Real estate loans are available to builders, promoters and real estate developers. The experience and financial standing of the builders is taken into account before the loan is granted which is to be returned with the minimum installments. Today, the amount of money that a city dweller spends on rent is roughly the same, or only slightly less than the amount he pays as an EMI on a housing loan. Earlier the home loan sector in India was solely dependent on nationalized and public sector banks, but the entry of public sector banks into the housing finance business marked the beginning of the first round of interest rate cuts. And this reduction in interest rates has enhanced the borrowing power of customers. Moreover, HFCs are offering incentives to attract investors like

Some companies sanction the housing loan without requiring you to identify property as a pre-requisite for eligibility. Free accident insurance & property insurance Waiving of pre-payment penalty Waiving of processing fee

There are a few documents which the finance companies require for setting up criteria for eligibility of Home loans.
Salaried Employee Self-employed

The latest salary slip showing statutory deductions Form 16 (showing tax deducted at source by employer)

Computation of income for the previous two years, certified by a Chartered Accountant Profit & Loss Account and Balance Sheet for the previous two years, certified by a Chartered Accountant
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Proof of age (birth certificate/voter Proof of age (birth certificate/voter identity card/passport/school-leaving identity card/passport/school-leaving certificate/valid driving license certificate/valid driving license) Proof of residence (phone bill/electricity bill/ration card). Proof of residence (phone bill/electricity bill/ration card).

The realty boom in India has given a new dimension to the finance sector in India both in Home Loans and Home Insurance segments. This has not only given a competitive edge to the finance companies to provide attractive options to customers but has also contributed to the increased investments in the real estate sector. This has resulted in 13 new institutions foraying into the housing finance business in the last three years.
Major Home Loan Providers

Banks & Public Sector Housing Finance Companies

State Bank of India, Corporation Bank, Bank Of Baroda, Central Bank, Dena Bank, Allahabad Bank, Bank of Maharashtra, Bank of Baroda Housing Finance, Can Fin Homes, GIC Housing Finance, LIC Housing Finance, BOB Housing Finance, SBI Home Finance, Cent bank Home Finance, HUDCO, LIC, etc. HDFC, ICICI Ltd, M&MFL, HSBC, Standard CharteredGrindlays, IDBI Bank, etc

Financial Institutions

Home Loan Interest Rates Interest Rates for Home Loans are undoubtedly the most important parameter to factor into your calculations. And in most cases is the decisive factor for an investor to narrow down on a certain Housing Finance Company's home loan offer. The interest on housing loans in India is usually calculated either on monthly reducing or yearly reducing balance basis.

Comparative Chart on Home Loan Interest Rates

Financial Institutions State Bank of India Tenure (in years) Up to 5 years 5-20 years Rate of Interest Fixed 12.25% 12.25 % Rate of Interest Floating 10.75% 11.25 % Processing Charges 0.50% of loan amount -

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ICICI LIC Housing Finance Ltd. M&MFL

0-20 years 0-20 years

10.5% 10.5%- 11%

9.5% 9.5%

1% of loan amount 0.5 per cent of the amount (max. Rs. 5000) 1% of the loan amount +applicable service taxes and cess) 1% of loan amount 1% of loan amount -

0-20 years

13.25%

11.25%

HDFC Citibank Canara Bank

0-20 years 0-20 years Up to 5 years Above 5 yrs up to 10 yrs

10.75% 9.75% 10.75%

9.00% -

11.00% 10.5% 9.25%-12% 10.5 % (for <20 Lakhs) 13% (for >20 9.25% 9.25 % (for <20 Lakhs) 12% (for >20 Lakhs) 10 9% (< 10 lacs) 9.5% (>10 lacs) 0.5 % of loan amount (Max. Rs.250) 1.25 % of loan amount 1.25% of loan amount

Standard Chartered Bank Canfin Homes Ltd IndusInd Bank

0-20 years 0-20 years 0-20 years

Saraswat Bank HUDCO

0-20 years 11 0-20 years 10 % (< 10 lacs) 10.5% (>10 lacs)

Most HFCs follow the yearly reducing-balance method, which accounts for your principal repayments only at the end of their financial year. Thus, you pay interest on the principal that you have already returned to the HFC. The effective interest rate is thus higher than the quoted interest rate by around 0.7%. Banks and some HFCs, on the other hand follow the daily or monthly reducing-balance method, by which the principal on which you pay interest reduces every month as you pay your EMI resulting in a lower interest burden. Thereby, the EMI for the monthly reducing system is effectively lesser than the yearly reducing system of calculating interest. Moreover, there are two kinds of interest rates for housing finance in India - Fixed rate and Floating rate interests. Some HFC's have fixed rate of interest which means that the interest rates remain unchanged for the entire duration the loan. This basically means that you do not benefit, even if the rates of interest drop in the market while the floating rate interest fluctuates according to the market lending rate.
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The interest rates may vary from institutions to institutions and generally range from about 12.5% to around 16%. Repayment is in the form of EMI's (equated monthly installments) so, longer the tenure, the more you pay in interest, but your monthly payment will be less. Generally, the maximum tenure of home loans is 15 years, with a few lenders offering tenure of 20 years or more (ICICI has recently launched a 30 year loan).

Types of Home Loans

A person seeking investments for house or a property opts for Home Loans for a variety of purposes ranging from construction to renovation. The Housing Finance Companies (HFCs) now offer individuals with various alternatives to choose from while buying a home loan. And the availability of Home Loans offered is as varied as their requirements.

Home Purchase Loans Home Construction Loans Home Improvement Loans Home Extension Loans Home Conversion Loans Land Purchase Loans Stamp Duty Loans Bridge Loans Balance Transfer Loans Refinance Loans Loans to NRIs

Home Purchase Loans:

This is the basic home loan for the purchase of a new home.
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Home Conversion Loans:

This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through a home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need for pre-payment of the previous loan.

Land Purchase Loans:

This loan is available for purchase of land for both home construction or investment purposes

Stamp Duty Loans:

This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.

Bridge Loans:
Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.

Balance-Transfer Loans:
Balance Transfer is the transfer of the balance of an existing home loan that you availed at a higher rate of interest (ROI) to either the same HFC or another HFC at the current ROI a lower rate of interest.

Re-finance Loans:
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Refinance loans are taken in case when a loan for your house from a HFI at a particular ROI you have taken drops over the years and you stand to lose. In such cases you may opt to swap your loan. This could be done from either the same HFI or another HFI at the current rates of interest, which is lower.

NRI Home Loans:

This is tailored for the requirements of Non-Resident Indians who wish to build or buy a home or property in India. The HFCs offer attractive housing finance plans for NRI investors with suitable repayment options.

Tax Benefits on Home Loans

As the Indian real estate market makes an upward swing, and investors opt for housing finance or home loans, tax benefits obtained from them is a lucrative option. Customers availing of Home Loans can claim a certain portion of the interest and principal that they pay towards the loan installments for reducing tax liability. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Moreover, an added tax benefits under Sec 80 C on repayment of principal amount up to Rs. 1,00,000 p.a. can be availed that can further reduce your tax liability by about Rs. 30,000 p.a. Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. These deductions are available to assesses, who have taken a loan to either buy or build a house, under Section 24(b). Interest on borrowed capital is deductible up to Rs 150,000 if the following conditions are satisfied:

Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property. The acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed.

The person, extending the loan, certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house.

A loan for refinance of the principle amount outstanding under an earlier loan
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taken for such acquisition or construction. If the conditions stated above are not fulfilled, then the interest on borrowed capital is deductible up to Rs 30,000 though the following conditions have to be satisfied:

Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property. Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property.

If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed.

In addition to the above, principal repayment of the loan/capital borrowed is eligible for a deduction of up to Rs 100,000 under Section 80C from assessment year 2006-07.

Home Loan Providers in India

Real estate in India is currently one of the hottest investments options in Asia. A recent survey of the real estate scenario acknowledge the Indian metropolis of Mumbai, Bangalore and New Delhi as the top three investors' choices for real estate investment in Asia. But there were concerns mainly related to the availability of necessary funds for investment and in the more recent times, the boom in the real estate market opened the doors for a host of realty funds from financial institutions. Prior to five years, the real estate segment in India was neither organized nor were there too many large institutions in the construction industry. But now with an organized finance sector and with the increase in transparency levels, it has become easier to create financing vehicles. The decrease in housing loan interest rates and an increase of disposable income has contributed largely to an increased demand in the residential segment. In spite of a rise in home loans interest rates and qualitative sanctions being levied by the RBI on banks, buying interest has not waned because home loans are still cheaper than ten years ago. The retail markets are also undergoing a defining change with the introduction of larger retailing formats. The financial institutions also wasted no opportunity in tapping the fund requirement catering to the inflow of potential buyers in the retail sector. While most
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funds were initially floated by financial Institutions or banks such as HDFC, ICICI Bank and IDBI Bank to name a few, real estate developers like DLF Universal and even retailers such as Pantaloons Retails (India) have now entered the real estate sector for creating more retail facilities and have been hugely successful. As the realty prices in India skyrockets, housing complexes mushrooming and city landscapes becoming unrecognizable, the growth across all real estate segments and experts estimate that demand will remain steady at the currently high levels because of the improving economic environment and the real estate sector is expected to grow 30% every year. This rising property prices encourage banks and financial institutions to lend more with the increase in collateral values. Although the home loan providers have hiked their rates twice in less than three months, home loans continue to be nearly 45 per cent cheaper than what they were in early 2001. Because if statistics are referred to, the interest rates which now range between 9-10 per cent, are still much lower than what they were ten years ago, at 16-17 per cent.

Cars by Price Range

Maruti 800, Maruti Alto, Omni Reva Tata Nano Ambassador Chevrolet Aveo U-VA, Chevrolet Spark, Chevrolet Opel Corsa Fiat Palio, Fiesta, Ford Icon Hyundai Santro, Hyundai i10, Hyundai Getz Maruti Zen, Maruti Wagon R, Maruti Versa, Maruti
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Under Rs. 3Lakhs

Rs. 3-5Lakhs

Esteem, Maruti Gypsy, Maruti Suzuki A-Star, Maruti Suzuki Zen Estilo, Maruti Suzuki Swift, Maruti Suzuki Ritz New, Mahindra Logan

Indigo XL, Indigo Marina Tata Indica, Toyota Qualis, Tata Indigo CS Chevrolet Swing, Chevrolet Aveo, Chevrolet Tavera, Chevrolet Optra Magnum Fiat Linea, Fiat Adventure, Fiat Grande Punto, Ford Fusion Hyundai Accent, Hyundai Elantra, Hyundai i20, Hyundai Verna, Hyundai Sonata Embera, Honda City ZX, Honda Jazz New Maruti Baleno, Maruti Suzuki Sx4, Maruti Suzuki Swift Dzire, Mahindra Scorpio, Mitsubishi Lancer, Mitsubishi Cedia, Mahindra Bolero Toyota Innova, Tata Sumo Victa, Tata Sumo Grande, Tata Safari Skoda Fabia Chevrolet Forester Ford Mondeo & Ford Endeavour, Ford Focus Honda Civic Skoda Octavia & Combi Toyota Corolla, Toyota Corolla Altis Volkswagen Jetta Audi A4 Chevrolet Captiva Honda CR-V, Honda CRV 2008, Honda Civic Hybrid, Honda Accord Maruti Suzuki Grand Vitara, Mitsubishi Pajero, Mercedes C Class New Skoda Superb New Opel Vectra Skoda Laura
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Rs. 5-10Lakhs

Rs. 10-15Lakhs

Rs. 15-30Lakh

Toyota Camry, Ford Endeavour Thunder Plus, Terracan & Tucson, Toyota Fortuner New Volkswagen Passat , Volkswagen Jetta Audi A6, A8 & Audi TT, AUDI Q7 BMW X5, 5 Series & 7 Series Mitsubishi Montero, Mercedes Benz S-Class, Mercedes E Class, S Class, SLK, SL & CLS-Class Porsche Boxster, Cayenne, 911 Carrera & Cayman S Toyota Prado Volvo Xc90, Volvo S80 AUDI R8 Bentley Arnage, Bentley Continental GT & Flying Spur, Bentley Azure Maybach Rolls Royce Phantom

Rs. 30-90Lakhs

Above Rs. 1 Crore

Auto Finance

Auto Finance Companies are aggressively marketing their product by offering innovative and alluring offers to the customers.
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Buoyant & robust economy and huge disposable incomes of youths have made way to easy auto finance by banks and non-banking finance companies. The growing auto market of India has opened doors for number of Auto Finance Companies to provide hassle free auto finance. In India leading banks and nonbanking finance companies (NBFCs) offers auto finance. Multi-national companies (MNCs) have also entered the finance market, parallel to other auto loan companies, to grab their share. The market is very competitive and these finance institutions has come out with innovative offers for customers. The following are the names of leading banks and other institutions that provide auto finance.

ICICI Bank Bank of Baroda HDFC Bank State Bank of India Bank of India Mahindra Finance Union Bank of India Standard Chartered

Auto finance is now available from both, banks and non-banking finance companies (NBFCs). A large number of financing agencies are entering the Indian auto finance market. Most NBFCs have also arranged tie-ups with dealers and manufacturers. All these financial agencies together has created purchasing power of customers. Getting auto loans has become quite easy. The finance agencies has come of age and companies are aggressively marketing different auto loan schemes by offering innovative and alluring offers to the customers.

Features of Auto Finance

Upton 90% is financed.

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The finance period is between 1 to 5 years. The interest is calculated on the basis of compound interest. Equated Monthly Installment (EMI) is worked out for repayment. Early settlement of the full amount charges a penalty.

Documents Required

Bank statement for the last 6 months Two passport size photographs For salaried, latest salary slip and Form 16. For self employed individuals and professionals, IT returns for the last two financial years.

CAR FINANCE
Research say that 75% of the total vehicles purchased in the last decade were financed/ purchased through auto loans.

Financing a dream car has become very simple and easy method. Thanks to multinational companies (MNCs) and other private sector banks. All banks and financial institutions are aggressively marketing their products with innovative service offerings and incentives. A wide range of flexible and customized financing options for the purchase of both new and second hand cars are available throughout the country.

Features of Car Finance

Banks pay up to 90% of the cost of the new vehicle. In case of used vehicles, banks finance up to a maximum of 85% of the value of the car.

Generally public sector banks offer lower rate of interest than the non-banking finance companies.
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Usually the interest is calculated on a monthly reducing balance. The banks offer repayment tenure of 12 to 60 months. Few institutions even offer 7 years repayment period. A salaried person can borrow up to 3 times of the annual salary. Self employed individuals can borrow up to 6 times of the annual income.

Documents Required

Application Form Photographs Proof of income of last two years Proof of Residence Proof of identity

Take Note

The income of spouse can be clubbed to increase the loan amount. Terms and conditions for prepayment of the amount need to be clarified before agreement

Try to consider taking loan where there is no penalty of prepayment.

List of Companies offering Car Finance

Mahindra Finance Bajaj Auto Finance Kotak Mahindra Primus Sundaram Finance KTDFC

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WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique Consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. HDFC Bank began operations in 1995 with a simple mission: to be a World Class Indian Bank. We realized that only a single minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

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MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

BRANCHES
As of March 31, 2008, the Banks distribution network was at 761Branches and 1977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of March 31, 2007.

March 2006 Citied Branches ATMs 228 535 1323

March 2007 316 684 1605

March 2008 327 761 1977

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PERSONAL BANKING
Loan Product Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan Cards Deposit Product Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers

Investment & Insurance Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar

Payment Services

Access To Bank Net Banking One View InstaAlert Mobile Banking ATM Phone Banking Email Statements Branch Network

Credit Card Debit Card Prepaid Card

-------------------------------Forex Services ------------------------------- Product & Services Trade Services Forex service Branch Locater RBI Guidelines

Net Safe Merchant Prepaid Refill Bill pay Visa Bill pay InstaPay Direct Pay Visa Money Transfer eMonies Electronic Funds Transfer Online Payment of Direct Tax

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WHOLESALE BANKING
Corporate Funded Services Non Funded Services Value Added Services Internet Banking Small and Medium Enterprises Funded Services Non Funded Services Specialized Services Value added services Internet Banking Financial Institutions and Trusts BANKS Clearing Sub-Membership RTGS sub membership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts

Investment & Insurances Mutual Funds Insurance Private Banking Portfolio Investment Scheme

Loans Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card

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Loans are extended for the purchase of: Commercial Vehicles - Loans for commercial vehicles (this includes buses, trucks, Tempos, tippers), LCVs (light commercial vehicles, HCVs (heavy commercial vehicles), MCVs (medium commercial vehicles) and three wheelers. Company provides funding for all models of Telco, Ashok Leyland, Swaraj Mazda, Eicher, Bajaj Tempo, Volvo etc. The choice is entirely yours.

TYPES OF LOAN
New Vehicles Used Vehicle / Refinance Balance Transfer

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ADVANTAGES o Up to 100% financing. o Up to 48 months tenor. o Simpler documentation. o Quick processing. o Customized EMI structure.

Single owner Good average and within your budget

HDFC Bank's Used

Car Loan will put you in the driver's seat. What's more, HDFC Bank also helps you

select good quality used cars and even value them.

Features & Benefits

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Choose any car manufactured in India within a certain age*. Borrow up to 80% of the value of the car. Flexible repayment options, ranging from 12 to 60 months. Borrow up to 3 times your annual salary (for salaried professionals) and 6 times your annual income (for self employed professionals). Available for almost all car models at attractive interest rates. Repay with easy EMIs. Attractive car loan plans - To Fastrack your loan, just choose the plan that is right for you. Additional loan on existing loan - If you are a existing HDFC Bank Auto loan customer with a clear track record of 12 months or more, then you can get an additional loan to the extent of your existing loan amount at attractive rate of interest. Customer Privileges Special benefits for HDFC Bank account holders. If you have had a Preferred Account or a Corporate Salary Account with HDFC Bank for more than six months, you can get fast approvals on your loans with minimal documentation. * Age of Car at loan maturity should not cross 10 years subject to maximum loan tenure of 60 months.
**This would also vary with higher loan value

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Small car Family car or sheer luxury on wheels

Features & Benefits Covers the widest range of cars and multi-utility vehicles in India. Avail 100% finance on your favorite car. Flexible repayment options, ranging from 12 to 84 months. Borrow up to 3 times your annual salary (for salaried professionals) and 6 times your annual income (for self employed professionals). Speedy processing - within 48 hours. Repay with easy EMIs. Attractive car loan plans - To Fastrack your loan, just choose the plan that is right for you. Attractive Interest rates Hassle-free documentation.

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Customer Privileges

If you are an HDFC Bank account holder, we have special rates for you.

If you have had a Preferred Account or a Corporate Salary Account with HDFC Bank for more than six months, you can get fast approvals on your loans with minimal documentation.

Fee & Charges for New Car loans

Description of charges Cheque bouncing charges

New Car Loans Rs. 450 6 % of POS for preclosures within 1 year from 1st EMI 5% of POS for preclosures within 13-24 months from 1st EMI 3% of POS for preclosures post 24 months from 1st EMI No foreclosure allowed within 6 months from date of availing the car loan At actual 2% per month

FC Charges

Stamp Duty Late Payment Penalty

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Processing fees Agri /PSL Charges Cheque swapping charges Loan cancellation / rebooking charges Bounce Cheque Charges Statement Charges (per statement) Duplicate Repayment Schedule charges Legal, Repossession & Incidental charges Duplicate no due certificate / NOC Transaction fees

Up to 2.5Lakhs : Rs.2000/2.51 to 4Lakhs : Rs.3000/> 4Lakhs :Rs. 3500/Rs 2000 Rs 500/Rs 1000/Rs 450/Rs 500/Rs 500/At actual Rs 500/Rs 500/- per case

Overview
ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion (US$ 77 billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the nine months ended December 31, 2008. The Bank has a network of 1,438 branches and about 4,644 ATMs in India and presence in 18 countries. ICICI Bank offers a

41

wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). 2002.ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI

ICICI Bank, with market capitalization of about Rs. 480.00 billion (US$ 10.8 billion), ranked third amongst all the companies listed on the Indian stock exchanges in June 2006. ICICI Bank's stock was listed on both BSE and NSE. The bank is offering various services in: Personal banking NRI banking Corporate banking

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ICICI Bank

Rank - 4 2004-05 2005-06 563 25479 905 10 71547

No. of Offices No. of Employees Business per Employee(in Rs. Lakhs) Profit per Employee( in Rs. Lakhs) Investments( in Rs. Crore)

515 18029 880 11 50487

Financial Highlights
Fiscal Year End: Revenue (2008): Revenue Growth (1 yr): Employees (2008): Employee Growth (1 yr): March 15073.30 M 54.10% 84,134 36.40%

COMPANY INFORMATION BOARD OF DIRECTORS

Ms. Chanda Kochhar, Deputy Managing Director Mr. Sridar Iyengar Mr. Lakshmi N. Mittal Mr. Narendra Murkumbi Mr. Anupam Puri
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 Mr. Vinod Rai Mr. M.K. Sharma Mr. P.M. Sinha Prof. Marti G. Subramanian Mr. T.S. Vijayan Mr. V. Prem Watsa

CHAIRMAN
Narayanan vaghul

CFO AND TREASURER

N.S. Kannan

MAJOR COMPITITORS

HSBC Holding Standard Charted State Bank Of India HDFC Bank

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ICICI GROUP

ICICI Bank ICICI Home Finance

ICICI Infotech

ICICI Pru Life Insurance

Pru - ICICI AMC

ICICI Securities ICICI Lombard

ICICI Venture Capital

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HOME LOAN
Home Loans are provided to individuals to own a residential property.
ICICI Bank offers easy home

loans for

First Purchase in ready construction Under construction property Purchase in re-sale Self construction - extension of existing living space

The following are the features of ICICI Bank Home Loans

Home loan amount can be chosen to suit specific needs. One can avail of a loan up to 80% of Cost of Property. Conveniently pay off the loan over a period of up to 25 years. It can be availed at the Floating rate of Interest or at the fixed rate of Interest or at the combination of both Fixed & Floating rates.

Faster repayment as principal repayment in on monthly rest.

Eligibility Norms for Home Loans

Home Loans can be availed by Resident Indian whether Salaried or Self-Employed and also by Non- Resident Indian who are Salaried. For resident Indians the following are the eligibility norms:

You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier.

You must be employed or self-employed with a regular source of income.

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AUTO LOANS ICICI AUTO LOANS Eligibility Terms for Your Car Loan With ICICI Bank Car Loans, you can avail of car loans as per your needs. Car Loans Salaried Individual The applicant should be at least 21 years old at time of application, and below 59 years of age at time of maturity of the loan Private / SelfPartnership Public Ltd Employed Co Firm Individual Any Proprietor, partner, professional or director above 21 years of age but below 64 at the time of the loan's maturity Gross annual income of at least Rs. 1.25 Lakhs per annum Limited companies should have been in existence for at least 2 years

Particulars

Age Criteria

Income Criteria Gross annual salary of at least Rs. 1.5 Lakhs per annum

Firm should have a minimum PAT (profit after tax) of Rs. 1.25 Lakhs

Minimum PAT (profit after tax) of Rs. 1.25 Lakhs

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Documents required for

Income proof: Salaried individuals Latest Salary slip or salary certificate. Form 16 of the previous Financial Year or latest Income Tax Returns.

Self-Employed individuals:

Income Tax Returns of 2 previous financial years.

Partnership Firms, Societies & Companies :

Income Tax Returns of 2 previous financial years along with Profit & Loss Account Statements and Balance Sheets of both years.

Documents supporting customer information :

Identity Proof, Signature Proof and Address Proofs as per ICICI Bank norms (Our representative will help you choose suitable documents).

Other documents: Partnership Firms: Partnership deed and Letter signed by all partners authorizing one partner to execute the required Car Loan. Societies and Companies: Resolution by Board of Directors (or such managing body) & Memorandum & Articles of Association (or Society/Trust deed). Our representative will help you with the formats of documents and the information required.

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Car Loans
Repayment tenure ranges from 1 year to 6 years for new car loans. You may change the tenure of the loan before the loan is disbursed. The interest rate & EMI would change accordingly. The repayment due dates for the loan are 1 st and 15thof every month and would depend on the date of disbursement. Payment due dates cannot be changed. You can make the Payments through post-dated cheques (PDCs) Repayment option through Direct Debit Mandates is also available or all ICICI Bank account holders. Option of repaying through ECS is also available in select cities. Payments through cash or credit cards are not accepted. You may change the PDC's in case your Bank Account is changed. However, we would require verification of signatures by new banker. A nominal fee of Rs.500/- (Swap Charges) would be charged for exchange of cheques. A full pre-payment of the loan is accepted. Part pre-payment is not allowed. We charge Rs.200/-per bounced cheque.

Note: All charges are subject to Service Tax as applicable Rs.1,350/- + Service Tax & Education Cess

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OVERVIEW
The State Bank of India was established in 1806. It has a branch network of over 9000 branches and holds 30 percent of the market share in banking with an aggregate deposit base of about Rs 19,6821 crore. Today, it has a branch network of over 9000 branches, an aggregate deposit base of nearly Rs196821 crore (US$45,121mm) and a total balance sheet size of Rs.261504 crore (US59,950 mm). Together with its 7 Associate Banks, SBI commands about 30% of the market share in banking. State Bank of India (SBI) is the largest commercial bank in India in terms of profits, assets, deposits, branches and employees. State Bank of India was constituted through an act of Parliament in 1955. In October 1996, the bank successfully floated the first GDR issue of any commercial bank in the country and raised USD 369 million, including the green shoe option. SBI is the only bank in India to be ranked among the top 100 banks in the world and among the top 20 banks in Asia in the annual survey by The Banker. SBI has eight business units, namely corporate banking; international banking and domestic banking for concentrating on core areas; associate banks division for looking after the working of these banks; credit division to monitor the overall credit; and three other business units, namely finance, corporate development, and inspection for inhouse work. The bank has a network of 66 offices/branches in 29 countries spanning all time zones. The SBI`s international presence is supplemented by a group of overseas
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and NRI branches in India and correspondent links with over 522 leading banks of the world. SBI`s offshore joint ventures and subsidiaries enhance its global stature. Keeping in view the exponential growth achieved in self help group (SHG) financing in the recent past and good repayments (over 90%) under the scheme, the bank has decided to credit link 1,000,000 SHGs by the end of March 2008.

Financials

The bank reported a substantial rise in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company rose 37.03% to Rs 24,784.20 million from Rs 18,086.40 million in the same quarter last year. Interest earned for the quarter jumped 42.34% to Rs 180,303.40 million, while total income for the quarter rose 38.35% to Rs 212,559.00 million, when compared with the prior year period. It reported earnings of Rs 39.04 a share during the quarter, registering 13.59% growth over previous year period.

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 now offers Interest Rates concessions on GREEN HOMES in accordance with SBI's commitment to Environment protection. 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.

Best practices followed in SBI People dealing with End to End service by Permanent employees of SBI who are you accountable to you. Place SBI branch of your choice will service your loan account. You
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can always meet our employees face to face. Price Prepayment charges Complete transparency. Interest charged on the daily reducing balance. No penalty for prepayments made, out of bonafide savings or windfall gains for which evidence is produced.

Costs hidden in fine No hidden costs print Transparency Complete transparency. All the features of our product, including interest rates, are in the public domain.

Unique features:
1. Provision for on the spot "In principle" approval. 2. Loan sanctioned within 6 days of submission of required documents. 3. Option to avail Home Loan as a Term Loan or as an Overdraft facility to save on interest and maximize gains (see SBI MaxGain in the following sections)

4.Option to club income of your spouse and children to compute eligible loan amount 5.Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount. 6. Provision to finance cost of furnishing and consumer durables as part of project cost. 7. Repayment permitted up to 70 years of age 8.Free personal accident insurance cover up to Rs.40 Lac. 9. Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost) 10.Interest calculated on daily reducing balance basis, and starts from the date of disbursement. Plus schemes which offer attractive packages with concessional Interest rates to Govt. 11. Employees, Teachers, Employees in Public Sector Oil Companies. 12. Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat

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13.Option to avail loan at the place of employment or at the place of construction

Purpose
Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies.

Eligibility Minimum age 18 years as on the date of sanction Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing the loan repayment.

Loan Amount
40 to 60 times of NMI, depending on repayment capacity as % of NMI as under

Net Annual Income Up to Rs.2 lacks Above Rs. 5 lacks

EMI/NMI Ratio 40% 55%

Above Rs.2 lacks to Rs. 5 lacks 50%

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.

53

2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out. 3. Depreciation, subject to some conditions. 4. Regular income from all sources.

Margin
Purchase/ Construction of a new House/ Flat/ Plot of land: 20% for loans up to Rs.30 Lacks, 20% for loans above Rs.30 lacks and up to Rs.75 lacks. 25% for loans above Rs.75 lacks. (w.e.f. 01.01.2009)

INTEREST
Interest Rates w.e.f. 01.01.2009 a) Floating Rates linked to SBAR SBAR w.e.f. 01.01.2009 = 12.25 % p.a. Loans (i.e. Sanctioned limits) up to Rs.30 Lacks Loan amount Loan Tenure -> Up to 5 Yrs Loans up to Linkage with SBAR in the Rs.30 lacks for loan document new loans sanctioned on or Special product level after 01.01.2009 discount which may be withdrawn/revised solely at the discretion of the Bank. Effective Rate 2.25% below SBAR, 0.25% Above 5 Yrs & up to 15 Yrs 2.00 below SBAR 0.25% Above 15 Yrs & up to 25 Yrs 1.75% below SBAR 0.25%

9.75% p.a.

10.00% p.a.

10.25% p.a.

Loans (i.e. Sanctioned limits) above Rs.30 Lacks and up to Rs.75 Lacks Loan Up to 5 Yrs Above 5 Yrs Above 15 Yrs Tenure -> & up to 15 & up to 25 Yrs Yrs Above Rs.30 lacks Linkage with 2.00% below 1.75% below 1.50% below
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and up to Rs.75 Lacks w.e.f. 01.01.2009

SBAR Effective rate

SBAR 10.25%p.a.

SBAR 10.50% p.a.

SBAR 10.75% p.a.

Loans (i.e. Sanctioned limits) above Rs.75 Lakhs Above Rs.75 Lakhs Linkage with 2.00% below 1.75% below 1.25% below w.e.f. 01.01.2009 SBAR SBAR SBAR SBAR Effective rate 10.25% p.a. 10.50% p.a. 11.00% p.a.

b) Fixed rates - Re-payment Up to 10 Years (w.e.f. 01.01.2009): Fixed rates (subject to force majeure clause and interest rate reset at the end of every two years on the basis of fixed interest rates prevailing at that time) Up to Rs. 30 Lakhs 11.25% p.a. Above Rs. 30 Lakhs 12.25% p.a. c) Loans for deposit of earnest money for allotment of a plot / house / flat (Floating rates only)- W.E.F. 01.01.2009 - 1% above SBAR, Min. 13.25% p.a. Loan amount Up to Rs.30 Lakhs Above Rs.30 Lakhs and up to Rs.75 Lac Above Rs.75 Lac Margin 20% 20% 25%

Processing Fee
0.50% of Loan amount with a cap of Rs.10,000/-(including Service Tax)

Pre-closure Penalty
No penalty if the loan is preclosed from own savings/windfall gains for which documentary evidence is produced by the customer. In case, such proof is not produced by the borrower, penalty @2% on the amount prepaid in excess of normal EMI dues shall be levied if the loan is preclosed within 3 years from the date of commencement of repayment.

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Security
Equitable mortgage of the property Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the property cannot be mortgaged

Maximum Repayment Period

For applicants up to 45 years of age: 25 years For applicants over 45 years of age: 15 years

Moratorium
Up to 18 months from the date of disbursement of first installment or 2 months after final disbursement in respect of loans for construction of new house/ flat (moratorium period will be included in the maximum repayment period).

Disbursement
In lump sum direct in favour of the builder/ seller in respect of outright purchase In stages depending upon the actual progress of work in respect of construction of house/ flat etc.

Documents

Completed application form Passport size photograph Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License
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Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/Voters ID Proof of business address in respect of businessmen/ industrialists Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer)

Copy of approved plan and approval from the Local Body Statement of Bank Account/ Pass Book for last 6 months

SBI-Freedom Home Loans A revolutionary product designed for customers who are on the lock out for a source of finance for a property they want to invest in without mortgaging the same. All you have to do is pledge any financial security that you have and you will get a Home Loan for your dream home. A must-take for those who do not want to pay stamp duty for mortgage of their property or go through the hassles of creation of mortgage. You also have an option to take the loan by way of mortgage of the property and pledge financial securities in lieu of margin money.Repayment is highly customized, giving you the option to repay through regular EMIs or through maturity proceeds of the securities pledged.

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MAHINDRA FINANCE LTD

Overview
It is Indias leading non-banking finance companies focused on the rural and semiurban sector providing finance for utility vehicles, tractors,home and cars with largest network of branches covering these areas (Source: Association of Leasing and Financial Services Companies, November 2005). It is a subsidiary of M&M, a leading tractor and UV manufacturer with over 60 years experience in the Indian market. The Goal of Mahindra Finance is to be the preferred provider of retail financing services in the
rural and semi-urban areas of India. The strategy is to provide a range of financial products and services to customers through nationwide distribution network. It seeks to position itself between the organized banking sector and local money lenders, offering our customers competitive, flexible and speedy lending services. In the three years ended March 31, 2005, branch network has been expanded from 195 to 255 branches providing services to customers in 25 states and two Union Territories across India. During the same period, the cumulative number of customer contracts entered into grew from 161,079 to 336,819. As of December 31, 2005, there are 295 branches in 25 states and two Union Territories in India and has entered into 430,300 customer contracts. The geographical reach and market penetration have expanded, so too have Loan Assets, which grew from Rs. 11,702.1 million as of March 31, 2003 to Rs. 17,106.3 million as of March 31, 2004, to Rs. 26,310.6 million as of March 31, 2005 and to Rs. 36,628.7 million as of December 31, 2005. As of December 31, 2005, our net NPA constituted 3.7% of Total Assets.

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The total income increased from Rs. 2,459.6 million for Fiscal 2003 to Rs. 4,047.6 million for Fiscal 2005 at a compound annual growth rate of 28.3%. During the same period the profit after tax increased from Rs. 441.8 million to Rs. 822.7 million at a compound annual growth rate of 36.5%. As of December 31, 2005 the total income was Rs. 3,983.0 million, the profit after tax was Rs. 610.7 and had Rs. 4,026.1 million of share capital and reserves.

In May 2004, as a supplement to the lending business it started an insurance broking business through our wholly owned subsidiary, Mahindra Insurance Brokers Limited. During Fiscal 2005, in its first year of operations, MIBL earned an income of Rs 34.4 million and achieved a profit after tax of Rs. 17.3 million.

Mahindra & Mahindra Financial Services Ltd - Company Profile Snapshot Company Mahindra & Mahindra Financial Services Ltd Profile: Ticker: M&MFIN Exchanges: BOM 2010 Sales: 15,963,000,000 Major Industry: Financial Sub Industry: Commercial Finance Companies Country: INDIA Employees: 6972

Business Description MAHINDRA FINANCIAL SERVICES LIMITED (Originally incorporated as Maxi Motors Financial Services Limited on January 1, 1991 under the Companies Act, 1956 as a publiclimited company and the name was changed to Mahindra & Mahindra Financial Services Limited on November 3, 1992).

Public Issue of 20,000,000 Equity Shares of Rs. 10 each for cash at a price of Rs. [] per Equity Share aggregating Rs. []million, comprising a Fresh Issue of 10,000,000 Equity Shares of Rs. 10 each by Mahindra & Mahindra Financial ServicesLimited (Mahindra Finance, the Company or the Issuer) and an Offer for Sale of 10,000,000 Equity Shares of Rs. 10 eachby Mahindra & Mahindra
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Limited (M&M) and certain other shareholders of the Company (together with M&M the SellingShareholders). The Fresh Issue and the Offer for Sale are jointly referred to herein as the Issue (the Issue). The Issue willconstitute 23.26% of the fully diluted post issue paid-up capital of the Company. PRICE BAND: RS. [] TO RS. [] PER EQUITY SHARE OF FACE VALUE Rs. 10

Mahindra & Mahindra Financial Services Limited (MMFSL) is an India-based, nonbanking finance company. The Company is a subsidiary of Mahindra & Mahindra Limited (M&M). The Company provides loans for utility vehicles, tractors, cars, twowheelers, three wheelers, commercial vehicles as well as construction equipments. The Company also provides loans for the purchase of used cars, utility vehicles, commercial vehicles and tractors. Also, if a customer has a four wheeler that is not more than 10 years old nor mortgaged/hypothecated to any bank or financier, Mahindra Finance provides loans against such four wheelers. The Company also offers fixed deposit schemes to clients. Its subsidiaries include Mahindra Insurance Brokers Ltd., Mahindra Rural Housing Finance Ltd. and Mahindra Business & Consulting Services Pvt. Ltd.

Mahindra Finance About MMFSL

Mahindra and Mahindra Financial Services Limited is one of Indias leading nonbanking finance companies. Through a vast network of branches, we provide personalized finance for the widest range of utility vehicles, tractors and cars, focusing on the rural and semi-urban sector.

MMFSLs rural financing is considered as the cornerstone of poverty reduction, rural development and inclusive growth in many parts of the country. With a majority of our countys population living in rural India, our loans to over 900,000 customers
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belonging to the low income groups have proved to be a catalyst in helping rural India surge ahead in a big way. Our unique business model is socially inclusive as we help customers who are at the bottom of the income or social pyramids to grow by providing them loans based on their future earning capacities. It is also our continuous endeavor to develop skill sets at the local level. We currently provide employment to over 6200 people who belong to the areas in which we serve, ensuring that our employees truly understand their customers. Since 1945, we, at the Mahindra Group, have remained and will continue to remain partners in the progress of rural India, through both growth and turbulence. We salute the spirit of every Indian living off the land and move ahead, trying to understand the financial needs of rural India and tapping into this vast market of unbounded opportunities. Our goal is to be the preferred provider of retail financing services in the rural and semi-urban areas of India, while our strategy is o provide a range of financial products and services to our customers through our nationwide distribution network.

Vision

* Legal Entity Mahindra & Mahindra Financial Services Limited With an extensive range of products and services, we at Mahindra Finance, make sure that theres something that suits everyones needs. Our products and services are considered instrumental in the rapid development of rural as well as semi-urban India.

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Finance is a major impetus for the growth of automotive products and this led to the Groups foray into financial services through Mahindra Finance and its subsidiary. Together, a cluster of these companies forms the Trade and Financial Services Sector of the Mahindra Group.

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of 's leading non-banking finance companies focused on providing finance for utility vehicles, tractors and cars in the rural and semi-urban sector. Mahindra Finance currently has the largest network of over 436 branches . It has entered into more than 600,000 customer contracts and has disbursements of around Rs. 21000crore since inception. Mahindra Insurance Brokers, a wholly owned subsidiary of Mahindra Finance, is one of the few insurance broking companies in to receive the ISO 9001:2000 Certification for Quality Management Systems. It provides direct insurance broking for retail and corporate customers with a wide and comprehensive range of plans for Life and Non-life Insurance segments. Under the Non-life Insurance category, Personal, Industrial, Commercial, Social and Liability products are available. Mahindra Rural Housing Finance, a subsidiary of MMFSL, provides cost-effective and flexible home loans to a wide base of customers in rural and semi-urban India. Providing loans for home construction, purchase, extension and improvement, we make sure that our customers basic need of shelter is met for expediently.

Home Loans available for: Home Construction:

Upon a land you have purchased or are planning to purchase, we will finance the construction cost of the house or the construction cost plus the purchase value of the land.
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Home Purchase:
Our finances are also available for the purchase of your permanent house, with valid building approvals. This could be a bungalow, row house etc. or even a flat. The property being financed could be ready for occupation, under construction or could even be a second sale. What will NOT be financed:

Temporary structures or any structure not having the requisite approvals Loans for commercial properties Loans against property i.e. wherein a person owns a house and is mortgaging it to raise finance for some other use

Home Extension:
If youre planning to increase the floor or ceiling space or are planning to add rooms to your house, our home loans will be made available.

Home Improvement:
For all expenditures related to the refurbishment of your house, such as changing the flooring, etc., our home loans will be made available. Mahindra Rural Housing Finance Ltd (MRHFL) is a wholly owned subsidiary of Mahindra & Mahindra Financial Services (MMFSL). It has been recently set up with an objective of meeting the housing finance needs of the rural/semi urban customers across the country. Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $7.1 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image.

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Our Vision:

The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.

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Home Loans:
Mahindra Rural Housing Finance, a subsidiary of MMFSL, provides cost effective and flexible home loans to a wide base of customers and semi-urban India. Loans are provided for home construction, purchase, extension and improvement.

Board of Directors Mr. Bharat N. Doshi Mr. U. Y. Phadke Mr. Ramesh Iyer Mr. Dhananjay Mungale Dr. Pawan Kumar Goenka Mr. M. G. Bhide Mr. Piyush Mankad Mrs. Rama Bijapurkar Mr. M. B. N. Rao

Designation Chairman Vice Chairman Managing Director Director Director Director Director Director Director

Products

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All documents satisfying the KYC Norms to be taken on record mentioned here under Signature Verification. Loan Documentation Loan Application Form duly filled by the applicant. Agreement for Loan and other relevant legal documents. The following is the list of acceptable proofs of documents : Document Passport Copy Photo Driving License with DOB Voters ID Card PAN Card Photo Ration Card With DOB Electricity Bill Telephone Bill Credit Card St. With CC Copy Bankers Verification Employer Certificate/ID School/College Leaving Certificate Copy of IP paid to Bank which cleared Age Address Property Identity Signaturetity Ownership

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