A

SYNOPSIS
ON
A STUDY OF HOUSING LOAN WITH REFERENCE STATE BANK OF
INDIA
Synopsis submitted in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Of
CMR INSTITUTE OF MANAGEMENT STUDIES (AUTONOMOUS)
Affiliated to Bangalore University

By
MR.VENKATESHA.B.G
Register No: 12201082
Under the guidance of
Prof. OM PRAKASH. C

Department of Management Program



CMR INSTITUTE OF MANAGEMENT STUDIES (AUTONOMOUS)
C.A. #2, 3
rd
C cross, 6
th
A Main, HRBR layout
2
nd
Block, Kalyana Nagar
Bengaluru-560 043
2012-2014
A STUDY OF HOUSING LOAN WITH REFERENCE STATE BANK OF INDIA

INTRODUCTION
Banking has become a part and parcel of our day-to-day life. Today, banks offer an easy access to
a common man. They carry out variety of functions apart from their main function of accepting
deposits and lending. Banking is a service business and industries, merchant banking, money
transfer, credit cards; ATMs are some of the important financial services provided by the modern
banks.
A home represents the largest asset that typically people have and this is why home loans have
such a huge impact in the loan market today. When a person
Purchases a home, he or she will be investing a huge amount of cash. Many people cant come
up with the whole money to pay out the house, while some others cant even afford to invest
money for the house they will like to purchase. In part, this is how home loans have turned out
to be a benefit for people, who want to buy the home of their choice, but cannot afford it at the
time.

Nowadays home buyers dont have to worry much about the source of money for their
homes. Home loans have made the life of many house buyers much easier. But house buyers
should be very careful when choosing a home loan. Before doing anything else, borrowers
should make a thorough research of the current interest rates in the market, and then opt or go for
any home loan. Buyers could even go for home loans, by undertaking mortgages. This way, the
borrowers can get a loan after pledging or securing any asset or securities of their own, against
amount of money borrowed by them.

When getting a home loan, the individuals should consider taking care of different aspects
related to the home loan. An individual should be very careful when deciding the principal
amount of the home loan being borrowed. Or else, the person may end up with a very high
principle amount and then he or she will have to pay more interest for the money being borrowed
unreasonably.

Something else a buyer should consider is the interest factor associated with every home
loan. Interest is surely an unnecessary burden that comes attached with the home loan. Interest
is that additional amount that the borrowers have to pay, for borrowing the loan from the
lender. The main idea is for a borrower to accept the loan with the lowest interest rates
possible. In order for this to happen, the person should do a complete research of the current
interest rates in the market so that he wont end up getting cheated by the home loan
lenders. Also, borrowers should take the aspect of the term in consideration, or they might end
up paying or repaying the loan for 30 to 35 years, for the reason that the loan conditions had
stated that the principal amount will have to be repaid on fixed amount over a 30 year installment
basis.

Home loans could be a great advantage for people, but only if the right choice is carefully made.












STATEMENT OF PROBLEM:
Getting a home loan is a lengthy procedure. However simple it might look in the bank's
advertisement, the fact remains that there are a lot of hiccups in the entire process. Here are the 4
most common problems faced by home loan borrowers in India.
1. Rejection at the first stage: many of the home loan applications do not pass even the first
test. They are out rightly rejected due to incompatibility between the borrower's qualifications
and lenders requirements.
2. Processing fee not refunded: This processing fees is generally not refundable. In simple
words this means that for whatever reasons, if the bank finds that you don't deserve the home
loan, these fees won't be returned. This is the cost of applying for home loans.
3. Desired loan not sanctioned: The loan amount sanctioned is based mostly on repayment
capacity of the borrower. Many things come into picture, when the bank decides how much
home loan a person can get. The monthly income, financial history, other unpaid loans with the
borrower.
4. The interest rate confusion: Whether to go for a fixed rate or floating rate interest for home
loans is a dilemma which almost every home loan borrower faces. Even after deciding on a
particular loan regime, the home loan terms and condition fine prints can create havoc with your
interest rates.






RESEARCH STUDY:
SOURCES OF DATA:
PRIMARY DATA: Primary data is collected from questionnaire and personal interview.
The primary data is obtained through interaction with the officers and home loan customer of
State Bank of India.

SAMPLE SIZE: 100 respondents.

SECONDARY DATA: The sources of secondary data will be collected from document
provided by the bank. Through the direct information with the bank draft and through
magazines, website.


TOOLS FOR DATA COLLECTION:
Annual report.
Questionnaires.
Personal interviews.
Journals.



PLAN OF ANALYSIS:
Statistical tool suitable inferences are made from the data collected like Tabulation,
Graphical Representation (Bar chart, pie chart, and tables) are used.






LIMITATION OF STUDY:
The outcome of the study is based on the information supplied by the respondent and the
level of accuracy on the quantum of data supplied by them.
The accuracy of the study entirely depends upon the reliability of the information
provided by the bank.

OBJECTVE OF THE STUDY
Aims and objectives set forth the conduct these surveys which help to evaluate the findings of
the survey are following:
To study the cost of home loans provided by the bank.
To know that which bank provide batter loan schemes.
To analyze the home loan scheme by SBI.
To know the consumer perception about the home loan of SBI.










OVERVIEW OF CHAPTERS SCHEME:
CHAPTER 1 INTRODUCTION
CHAPTER 2 RESEARCH DESIGN:
CHAPTER 3 PROFILE OF (COMPANY NAME / SECTOR NAME):
CHAPTER 4 DATA ANALYSIS & INTERPRETATION
CHAPTER 5 SUMMARY OF FINDINGS, CONCLUSION & SUGGESTIONS
BIBLIOGRAPHY
ANNEXURE



Guide Signature: Student signature:
Place:
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