PREFACE

I am extremely happy to place before the esteemed teacher

PERSONAL LOAN POLICY IN INDIA -SBI . It is an attempt make by me to
find out the leading brands in Sagar City.
The Project Report has on objective to get the B.B.A. Studetns
familiar with real life buisness situations and gives an opportunity to the
students to understand the theoretical concepts of marketing and finance in
practical way.
The research starts with a short introduction of the company
followed by the line of the objective and research methodology.
Next Chapter Deals with the data analysis and interpretation that is
based on questionnaire. Then comes the limitation, suggestions conclusion of
the research report.
Students name : SOURABH AWASTHI
Class :BBA VTH SEM.

ACKNOWLEDGEMENT
I Wish to express my deep sense of gratitude to all who generously helped in
successful completion of the project work by sharing their valuable time and
knowledge.
I thankfully acknowlege Mr. Manish Jain (HOD BBA Dept) GIMS Sagar for
giving me the opportunity to conduct and survey.
I Would like to express my sincere thanks to MR. MANISH JAIN
LecturerBBA Dept) and all other faculty members, GIMS sagar who directly and
indirectly rendered me all possible help and guidance for preparing the report.
Finally I would like to thanks my parents, my friends without whom completion
of my project report would not have been possible.

Students name : SOURABH AWASTHI

Class :BBA VTH SEM.

CERTIFICATE
A PROJECT REPORT ON PERSONAL LOAN POLICY IN INDIA -SBI is
prepared by SOURABH AWASTHI under The guidance of MR. MANISH JAIN
is a satisfactory in respect to comments

Contents and presentation of the Subject Matter.

Language
Submission with in due date.

Signature of Supervisor

Signature of Examiner

Signature of HOD

DECLARATION BY THE CANDIDATE

Date:
I declare that the project report titled PERSONAL LOAN POLICY IN INDIA
-SBI is my own work conducted under the supervision of MR. MANISH JAIN ,
Gyanveer Institute of Management and Science Sagar. To the best of my
knowledge the report does not contain any work, which has been submitted for
the award of any degree, anywhere.

Students name : SOURABH AWASTHI

Class :BBA VTH SEM.

TABLE OF CONTENTS
Preface
Acknowledgement
Certificate
Declaration by the Candidate
TOPIC NAME

PAGE
NO.

CHAPTER 1 INTRODUCTION
(A) COMPANY PROFILE
(B) HISTORY
(C) KEY PERSON
CHAPTER 2 OBJECTIVE
CHAPTER 3 RESEARCH METHODOLOGY
(A) TYPE OF RESEARCH
(B) SOURCE OF RESEARCH
CHAPTER 4 PERSONAL LOANS POLICIES IN INDIA
CHAPTER 5 DATA ANALYSIS AND INTERPRETATION
CHAPTER 6 SWOT ANALYSIS
CHAPTER 7 LIMITATION
CHAPTER 8 SUGGESTION AND CONCLUSION
CHAPTER 9 BIBLIOGRAPHY
CHAPTER 10 QUESTIONNAIRE

INTRODUCTION
STATE BANK OF INDIA
Not only many financial institution in the world today can claim the antiquity and majesty of
the State Bank Of India founded nearly two centuries ago with primarily intent of imparting
stability to the money market, the bank from its inception mobilized funds for supporting
both the public credit of the companies governments in the three presidencies of British India
and the private credit of the European and India merchants from about 1860s when the Indian
economy book a significant leap forward under the impulse of quickened world
communications and ingenious method of industrial and agricultural production the Bank
6

became intimately in valued in the financing of practically and mining activity of the SubContinent Although large European and Indian merchants and manufacturers were
undoubtedly thee principal beneficiaries, the small man never ignored loans as low as Rs.100
were disbursed in agricultural districts against glad ornaments. Added to these the bank till
the creation of the Reserve Bank in 1935 carried out numerous Central Banking functions.
Adaptation world and the needs of the hour has been one of the strengths of the Bank, In the
post depression exe. For instance when business opportunities become extremely restricted,
rules laid down in the book of instructions were relined to ensure that good business did not
go post. Yet seldom did the bank contravenes its value as depart from sound banking
principles to retain as expand its business. An innovative array of office, unknown to the
world then, was devised in the form of branches, sub branches, treasury pay office, pay
office, sub pay office and out students to exploit the opportunities of an expanding economy.
New business strategy was also evaded way back in 1937 to render the best banking service
through prompt and courteous attention to customers.
A highly efficient and experienced management functioning in a well defined organizational
structure did not take long to place the bank an executed pedestal in the areas of business,
profitability, internal discipline and above all credibility A impeccable
financial status consistent maintenance of the lofty traditions if banking an observation of a
high standard of integrity in its operations helped the bank gain a pre- eminent status. No
wonders the administration for the bank was universal as key functionaries of India
successive finance minister of independent India Resource Bank of governors and
representatives of chamber of commercial showered economics on it.
Modern day management techniques were also very much evident in the good old days years
before corporate governance had become a puzzled the banks bound functioned with a high
degree of responsibility and concerns for the shareholders. An unbroken records of profits
and a fairly high rate of profit and fairly high rate of dividend all through ensured
satisfaction, prudential management and asset liability management not only protected the
interests of the Bank but also ensured that the obligations to customers were not met. The
traditions of the past continued to be upheld even to this day as the State Bank years itself to
meet the emerging challenges of the millennium.
7

ABOUT LOGO

THE
PLACE

TO

SHARE THE
NEWS ...
SHARE THE VIEWS
8

Togetherness is the theme of this corporate loge of SBI where the world of banking services
meet the ever changing customers needs and establishes a link that is like a circle, it indicates
complete services towards customers. The logo also denotes a bank that it has prepared to do
anything to go to any lengths, for customers.
The blue pointer represent the philosophy of the bank that is always looking for the growth
and newer, more challenging, more promising direction. The key hole indicates safety and
security.
MISSION, VISION AND VALUES
MISSION STATEMENT:
To retain the Banks position as premiere Indian Financial Service Group, with world class
standards and significant global committed to excellence in customer, shareholder and
employee satisfaction and to play a leading role in expanding and diversifying financial
service sectors while containing emphasis on its development banking rule.
VISION STATEMENT:
Premier Indian Financial Service Group with prospective world-class
Standards of efficiency and professionalism and institutional values.
Retain its position in the country as pioneers in Development banking.
Maximize the shareholders value through high-sustained earnings per
Share.
An institution with cultural mutual care and commitment, satisfying and
Good work environment and continues learning opportunities.
VALUES:
Excellence in customer service
Profit orientation
Belonging commitment to Bank
Fairness in all dealings and relations
Risk taking and innovative
Team playing
9

 Learning and renewal

Integrity
Transparency and Discipline in policies and systems.

ORGANISATION STRUCTURE
MANAGING DIRECTOR

CHIEF GENERAL MANAGER

G. M

G.M

G. M

G.M

G.M
10

(Operations)

(C&B)

(F&S)

(I) & CVO

(P&D)

zonal officers

Functional Heads

Regional officers

PRODUCTS:
State Bank Of India renders varieties of services to customers through the following
products:
Personal Loan Product:
SBI Term Deposits
SBI Recurring Deposits
SBI Housing Loan
SBI Car Loan
SBI Educational Loan
SBI Personal Loan
SBI Loan For Pensioners
Loan Against Mortgage Of Property
11

 Loan Against Shares & Debentures

Rent Plus Scheme
Medi-Plus Scheme
Rates Of Interest
SBI Housing loan
SBI Housing loan or Mortgage Loan schemes are designed to make it simple for you to make
a choice at least as far as financing goes!
'SBI-Home Loans'
features:
No cap on maximum loan amount for purchase/ construction of house/ flat
Option to club income of your spouse and children to compute eligible loan amount
Provision to club expected rent accruals from property proposed to compute eligible
loan amount
Provision to finance cost of furnishing and consumer durables as part of project cost
Repayment permitted upto 70 years of age
Free personal accident insurance cover
Optional Group Insurance from SBI Life at concessional premium (Upfront premium
financed as part of project cost)
Interest applied on daily diminishing balance basis
'Plus' schemes which offer attractive packages with concessional interest rates to Govt.
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
No Administrative Charges or application fee
Prepayment penalty is recovered only if the loan is pre-closed before half of the
original tenure (not recovered for bulk payments provided the loan is not closed)
Provision for downward refixation of EMI in respect of floating rate borrowers who
avail Housing Loans of Rs.5 lacs and above, to avail the benefit of downward revision
of interest rate by 1% or more
In-principle approval issued to give you flexibility while negotiating purchase of a
property
Option to avail loan at the place of employment or at the place of construction
Attractive packages in respect of loans granted under tie-up with Central/ State
Governments/ PSUs/ reputed corporates and tie-up with reputed builders (Please
contact your nearest branch for details)
SERVICES:

DOMESTIC TREASURY

SBI VISHWA YATRA FOREIGN TRAVEL CARD

BROKING SERVICES

REVISED SERVICE CHARGES

ATM SERVICES

INTERNET BANKING

E-PAY

E-RAIL

RBIEFT

SAFE DEPOSIT LOCKER

GIFT CHEQUES

MICR CODES
FOREIGN INWARD REMITTANCES
13

DIFFERENT PRODUCTS OF SBI:

DEPOSIT

LOANS

CARDS

DIFFERENT CREDIT
CARDS

Savings
Account

Home
Loans

Consumer
Cards

SBI International
cards

Life Plus
Senior
Citizens
Savings
Account

Loan
Against
Property

Credit Card

SBI Gold cards

Personal
Loans

Car Loan

Debit Cards

Loans
against
Securities

Commercial
Cards

Tax-Saver
Fixed
Deposit

Two
Wheeler

Corporate
Cards

Salary
Account

Preapproved
Loans

Prepaid Card

Advantage
Woman
Savings
Account

Retail
Asset

Purchase
Card

Rural
Savings
Account

People's
Savings
Account

Business
Installmen
t
Loans

Business
Card

Flexi Cash

Merchant

Fixed
Deposits

Security

Travel Card

SBI Gold Master

cards

Your City Your

Cards

Deposits
Recurring
Deposits

Freedom
Savings

Farmer
Finance

Partnership Cards

SBI Employee
Cards

Distribution
Cards
SBI Advantage
Cards

14

Account

Services

15

16

PERSONAL LOAN POLICIES IN STATE BANK OF INDIA

Introduction to Advance Product:
Now a day not all the people have the capacity to fulfill their requirement by their own
earning, thats why they need help from others. For this so many government & private
sector bank provide them money to fulfill their requirement, thats 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
Etc.

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.
SBI Advance Product
SBI Home Loans:
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.
17

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
Upto Rs.2 lacs
Above Rs.2 lac to Rs. 5 lacs
Above Rs. 5 lacs

EMI/NMI Ratio
40%
50%
55%

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 being purchased is
proposed to be rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources
Margin (Special Festival Season Offer)
Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1
cr., 20% for loans above Rs. 1 cr.
Repairs/ Renovation of an existing House/ Flat: 15%
Interest Rates w.e.f 27.2.2008
Floating interest rates
(linked to State Bank Advance Rate - SBAR)
(SBAR: 12.25% p.a.)
Loan Tenor
->
Upto Rs.30
Lacs
Above
Rs.30 Lacs

Upto 5 years
2.25% below
SBAR, 10.00% p.a.
2.00% below
SBAR, 10.25% p.a.

Above 5 years
and upto 15 years
2.00% below
SBAR, 10.25% p.a.
1.75% below
SBAR, 10.50% p.a.

Above 15 years and

upto 25 years
1.75% below
SBAR, 10.50% p.a.
1.50% below
SBAR, 10.75% p.a.

Fixed interest rates

Tenure
(p.a.)*Upto 10 years

Rate of Interest
12.75%

* Fixed rate loans will be subject to: 'force maejure' clause and interest reset at the end of
18

every two years on the basis of fixed interest rates prevailing then.

CAR LOAN:
Purpose
You can take finance for:
A new car, jeep or Multi Utility Vehicles (MUVs)
A used car / jeep (not more than 5 years old). (Any make or model).
Take over of existing loan from other Bank/Financial institution (Conditions apply)
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117
Eligibility
To avail an SBI Car Loan, you should be :
Individual between the age 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.
Salient Features
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117
Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times
the net annual income can be sanctioned. If married, your spouse's income could also be
considered provided the spouse becomes a co-borrower in the loan. The loan amount
includes finance for one-time road tax, registration and insurance!
No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit of Rs. 15
lacs.http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117
Type of Loanhttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,117
1. Term Loan
2. Overdraft - a) For New vehicles only
b) Minimum loan amount: Rs. 3 lacs.
19

Documents required
you would need to submit the following documents along with the completed application
form if you are an existing SBI account holder:
1.
2.
3.
4.
5.
6.
7.

Statement of Bank account of the borrower for last 12 months.

2 passport size photographs of borrower(s).
Signature identification from bankers 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 3 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.
If you are not an account holder with SBI you would also need to furnish documents that
establish your identity and give proof of residence.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117
Margin
New / Used vehicles: 15% of the on the road price.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117Repayment
You enjoy the longest repayment period in the industry with us.
Repayment period:
For Salaried:
Maximum of 84 months
For Self-employed & Professionals: Maximum 60 months
Repayment period for used vehicles :Up to 84 months from the date of original purchase of
the vehicle (subject to maximum tenure as above).
Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain
conditions
FLOATING RATES:
A. for Term Loans
1. New Vehicles (Term Loan) Floating only W.E.F. February 27, 2008
Repayment Period

All Centers (SBAR - 12.25%)

Upto 3 years (for loans Rs. 7.5 lac &

above)

0.75% below SBAR i.e. 11.50% p.a.

Upto 3 years (for loans below Rs. 7.5 lac)

0.50% below SBAR i.e. 11.75%p.a.

Above 3 yrs up to 5 yrs (for all loans)

0.50% below SBAR i.e. 11.75% p.a.

Above 5 yrs up to 7 yrs (for all loans)

0.25% below SBAR i.e. 12.00% p.a.

20

2. Used Vehicles: Floating only W.E.F. February 27, 2008

Repayment Period

All Centers (SBAR-12.25%)

Upto 3 years

3.00% above SBAR i.e. 15.25% p.a.

Above 3 yrs up to 7 yrs

3.25% above SBAR i.e. 15.50% p.a.

B. For Overdrafts: For New Vehicles only W.E.F. February 27, 2008
Repayment Period
Upto 3 years (for loans Rs. 7.5 lac &
above)

All Centres (SBAR 12.25%)

0.25% below SBAR i.e. 12.00% p.a.

Upto 3 years (for loans below Rs. 7.5 lac)

At SBAR i.e. 12.25% p.a.

Above 3 yrs up to 5 yrs (for all loans)

At SBAR i.e. 12.25% p.a.

Above 5 yrs up to 7 yrs (for all loans)

0.25% above SBAR i.e. 12.50% p.a.

EDUCATION LOAN:
A term loan granted to Indian Nationals for pursuing higher education in India or abroad
where admission has been secured.
Eligible Courses
All courses having employment prospects are eligible.
Graduation courses/ Post graduation courses/ Professional courses
Other courses approved by UGC/Government/AICTE etc.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,118
Expenses considered for loan
Fees payable to college/school/hostel
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for
the entire course)
Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for completion of course
21

 Cost of a Two-wheeler upto Rs. 50,000/Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan
For studies in India, maximum Rs. 10 lacs
Studies abroad, maximum Rs. 20 lacs
Interest Rates
(with effect from 1st June 2008)
For loans up to Rs.4 lacs - 11.75 % p.a. Floating
For loans above Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % Floating
For loans above Rs.7.50 lacs - 12.25% p.a. Floatinghttp://www.sbi.co.in/viewsection.jsp?
id=0,1,20,118
Processing Fees
No processing fee/ upfront charges
Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in
the margin money
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing a
job, whichever is earlier.
Place of Study
Studies in India
Studies Abroad

Loan Amount
Rs. 10.0 lacs

Repayment in Period
Years
5-7

Rs. 20.0 lacs

5-7

Security

o Rs. 7.50 lacs

Amount
Upto Rs. 4 lacs

For loans upto Rs. 10.00 lacs for Studies in

India and upto Rs. 20.00 lacs for studies abroad
No Security
Collateral security in the form of suitable third party
Guarantee. The bank may, at its discretion, in
exceptional cases, weive third party guarantee if
satisfied with the net-worth/means of parent/s who
would be executing the documents as "joint
borrower"
22

Tangible collateral security of suitable value, along

with the assignment of future income of the student
For payment of installments.

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

married person, co-obligator can be either spouse or the parent(s)/ parents-in-law
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,118
Margin
For loans up to Rs.4.0 lacs : No Margin
For loans above Rs.4.0 lacs:
o Studies in India: 5%
o Studies Abroad: 15%
Documentation Required
Completed Education Loan Application Form.
Mark sheets of last qualifying examination
Proof of admission scholarship, studentship etc
Schedule of expenses for the specified course
2 passport size photographs
Borrower's Bank account statement for the last six months
Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the Co-borrower
Proof of Income (i.e. Salary slips/ Form 16 etc)
SBI SARAL PERSONAL LOAN:
Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic
or foreign travel, medical treatment of self or a family member, meeting any financial
liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting
margins for purchase of assets etc.)
Eligibility
23

You are eligible if you are a Salaried individual of good quality corporate, self employed
engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.
Salient Features
Loan Amount
Your personal loan limit would be determined by your income and repayment capacity.
Minimum: Rs.24,000/- in metro and urban centres
Rs.10, 000/- in rural/semi-urban centres
Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a
ceiling of Rs.10 lacs in all centres
Documents Required
Important documents to be furnished while opening a Personal Loan Account:
For existing bank customers
Passport size photograph
From salaried individuals
Latest salary slip and Form 16
Margin
We do not insist on any margin amount.
Interest Rates
3.25% above SBAR floating i.e. 15.50% p.a.
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to,
without attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the
industry. Processing fees have to be paid upfront. There are no hidden costs or other
administrative charges.

PROPERTY LOAN:
Purpose
This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If
amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified
along with an undertaking that loan will not be used for any speculative purpose whatever
including speculation on real estate and equity shares.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120
Eligibility
24

You are eligible if you are:

A. An individual who is;
a. An Employee or
b. A Professional, self-employed or an income tax assesse or
c. Engaged in agricultural and allied activities.
B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income
(others) is in excess of Rs.1,50,000/-.
The income of the spouse may be added if he/she is a co-borrower or a guarantor.
C. Maximum age limit: 60 years.
Salient Features
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120Loan Amount
Minimum: Rs.25, 000/Maximum: Rs.1 crore. The amount is decided by the following calculation:
24 times the net monthly income of salaried persons (Net of all deductions including
TDS) OR
2 times the net annual income of others (income as per latest IT return less taxes
payable)
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120Margin
We will finance upto 75% of the market value of your property.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120
Interest
Term Loan 0.75% above SBAR. i.e.13.00% p.a. Floating
Repaymenthttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,120
Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with
check-off facility. You could opt to divert any surplus funds towards prepayment of the loan
without attracting any penalty.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120Security
As per banks extant instructions.

LOAN AGAINST SHARES \ DEBENTURES:

Eligibility
This facility is available to our existing individual customers enjoying a strong relationship
25

with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either
or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan.
The facility is available at 50 select centers.

Salient Features:
Purpose
For meeting contingencies and needs of personal nature. Loan will be permitted for
subscribing to rights or new issue of shares / debentures against the security of existing
shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) intercorporate investments or (iii) acquiring controlling interest in company / companies.
Loan Amount
You can avail of loans up to Rs 20.00 lacs against your shares/debentures.
Documents Required
You will be required to submit a declaration indicating:
Details of loans availed from other banks/ branches for acquiring shares/ debentures.
Details of loans availed from other banks/ branches against security of shares/
debentures
Margin
You will need to provide a margin amount of 50% of the prevailing market prices of the
shares/ non-convertible debentures being offered as security. (The market prices refer to the
prices in the Stock Exchanges as reported in the Economic Times.)
Interest
At SBAR Floating i.e. 12.25% p.a.
Repayment Schedule
To be liquidated in maximum period of 30 months through a suitable reducing DP
programme.
In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be
transferred in the name of the Bank.
Security:
Pledge of the demat shares/debentures against which overdraft is granted.

26

RESEARCH METHODOLOGY
According to Green and Tall A research design is the specification of the methods and
procedures for acquiring the information needed. It is the overall operational pattern or
framework of the project that stipulates which information is to be collected, from where it is
to be collected and by what procedures
This research process based on primary data analysis and secondary data analysis will be
27

clearly defined to meet the objectives of the study.

I chose the primary sources to get the data. A questionnaire was designed in
accordance with our mentor in HDFC . I chose a sample of about 45 corporate
customers around the Sagar City from which I can get the instant information of
whose analysis will give me the desired outcome of my research project.
I collected some data from the secondary sources like published Company documents,
internet etc.
Research Design
A research design is the arrangement of conditions for collections and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedures.
It is a descriptive cross sectional design .It is the conceptual structure with in which research
is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.
It is needed because it facilitates the smooth sailing of the various research operations,
thereby making research as efficient as possible yielding maximal information with minimal
expenditure of effort, time and money.
In the preliminary stage, my research stage constituted of exploratory study by which it is
clear that the existence of the problem is obvious .So, I can directly head for the conclusive
research.
Sampling Plan
Sampling plan is a distinct phase of research process. In this stage I have to determine who
is to be sampled, how large should be the needed sample and how sampling unit is to be
selected.
Population
In my research, I have defined my population as a complete set of customers of Sagar City
Sample Survey
As compared to census study, a sample study has been conducted by us because of:
Wide range of population, it was impossible to cover the whole population
Time and money constraints.
Sample Unit
In this survey I took the list of customers from the dealers of HDFC in Sagar City.
Sampling Technique
Sampling technique implies the method of choosing the sample items, the two methods of
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selecting sample are:

Probability method.
Non-probability method.
Probability method is those in which every item of the universe has an equal chance of the
inclusion in the sample. Non-probability methods are those that do not provide every item
in the universe with known cause of being included in the sample. The selection process is
partially subjective.
For my study, I employed the Non-probability sampling technique, in which I got the data of
the customers from the dealer of HDFC in Sagar City Instrument of collection of data
I have used one set of questionnaire to collect data from the customers. This questionnaire is
structured and highly ordered. This includes both close ended and open ended questions. The
close ended questions included both dichotomous and multiple choice questions.
Data analysis and interpretations
Large volumes of raw data were collected through questionnaires in my research study. This
raw data has been further converted into significant statistical information before further
interpretation so that I can answer my research objective well.
The collected raw data was then edited and coded by the researchers to eliminate
errors and to assign data to pertinent categories. The data was then tabulated and presented
with the help of bar diagrams and pie charts.

DATA ANALYSIS AND INTERPRETATION

Q1. On which bank you depend for your regular transaction?

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( )

No. of People
SBI

60 % (1200)

ICICI

33 % (660)

HDFC
OTHER

5% (100)
2% (40)

TOTAL NO. OF PEOPLE

2000

It has been observed that approximately 60% correspondents are using the service of SBI for
their daily transaction, around 33% of people are using ICICI Bank for their transaction and
only 5% & 2% of people are using HDFC & other Bank service respectively in
Bhubaneswar. It also shows that SBI have the highest market position in Bhubaneswar as per
my sample.

Q2. Are you aware of products & services provided by SBI?

YES

85% (1700)

NO
Total No. of People

15% (300)
2000
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From the above data it is clear that most of the customers (around 85%) of Bhubaneswar
have the idea about the product & services of SBI, the rest 15% have the idea about the
product they are using. In this 15% most of the people are from typical rural area (Farmers).

Q3. If yes are you aware of the advance products (Loan segments) of SBI?

YES

95%(1900)

NO

5% (100)
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TOTAL NO. OF PEOPLE

2000

It is clear that most of the people have the idea about the advance product of SBI. Almost all
the 95% people who have the idea about the advance product are the user of SBI product &
service.

Q4. Which bank you prefer for taking loans?

85% (1800)
SBI
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ICICI

7% (140)

HDFC

2% (40)

OTHER

1% (20)

TOTAL NO. OF PEOPLE

2000

According to my sample size 85% of people prefer SBI for loan product, but some people
prefer ICICI, HDFC or OTHER Bank for loan because they are working with that bank & it
is easier for them to get loan from their bank & it easier for them to pay the interest because
it is less as compare to other bank because they are the employee of that bank.

Q.6 Which loan product of SBI you have used?

HOME LOAN
EDUCATIONAL LOAN
CAR LOAN
PERSONAL LOAN

47% (846)
20% (360)
15% (270)
10% (180)
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OTHER
TOTAL NO. OF PEOPLE

8% (144)
1800

From the sample size 85% of people are using the SBI loan product. From the 1800 people
47% of people took home loan from SBI. 20% of people took education loan for their
children, 15% of people took car loan from SBI. Some of the customer took 2 type of loan
from SBI like both car & educational loan and home & car loan. 10% of people took
personal loan.

Q7. What do you feel about the services providing by SBI in advance product?

Bad

0% (0)

Satisfactory

2% (40)
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Good

55% (1100)

Excellent

43% (860)

TOTAL NO. OF PEOPLE

2000

From this it is clear that the service provide by SBI in its advance product is good in between
the customer. All of them satisfy with the product provide by SBI. 55% of people said that
the service provide by SBI is good & 43% said it is excellent & just 2% of people said that it
is satisfactory.

Q8. Which features you like most in Loan segments of SBI?

LESS PAPER WORK

3% (60)

ATTRACTIVE INTEREST RATE

35% (700)
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TRANSPARENCY

20% (400)

SIMPLE AND FAST PROCESSING

2% (40)

LONGER REPAYMENT PERIOD

40% (800)

TOTAL NO. OF PEOPLE

2000

Most of the people like the attractive interest rate & longer repayment period. Its easier for
people to repay the whole loan amount with its interest with low interest rate and with longer
repayment period.

PROJECT Findings:
From this project it is found that SBI advance product having the 1 st place in the
market at Bhubaneswar, there is a great opportunity to compete with ICICI Bank & to
retain its customer by fulfilling the requirement of customer in SBI advance product.
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 It has been observed that approximately 85% correspondents are using advance
product of SBI and 15% are not using any type of advance product of SBI in
Bhubaneswar.
All of SBI customers are satisfied with the services provided by the bank.
Many of these customers satisfied with the low interest rate and longer repayment
period of the advance product.
Most of the customers at Bhubaneswar prefer to take loan from SBI.
Approximately 43% of advance product users said that the service of SBI in advance
product is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to know
about the service & features of SBI advance product.
Most customers are shifted from other banks advance product to SBI because of
hidden charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance
product.

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:

LESS PAPER WORK
ATTRACTIVE INTEREST RATES
TRANSPARENCY
SIMPLE & FAST PROCESSING
LONGER REPAYMENT PERIOD
QUICK PROCESSING

Suggestion & Recommendation

Recommendation:

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 Customer awareness programme is required so that more people should attract

towards advance product.
If there are any kind of hidden charges than that must disclose to customer before
giving loan to them.
SBI must take some steps so that customers can get their loan in time. Like phone
verification 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
regarding advance product.
For the better service new offers would be require.
SBI customer care should more concern about the fastest settlement of customer
problems.
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.

Conclusion
38

From the analysis part it can be conclude that customers have a good respond towards SBI
advance products in Bhubaneswar. SBI is in 1st 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 issuer, SBI should focus on Launch Innovative product
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.

Questionnaire
39

Name - _____________________________________
Occupation-__________________________________
Contact Detail -_______________________________
Q. On which bank you depend for your regular transaction?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)
Q. Are you aware of products & services provided by SBI?
a) YES
b) NO
Q. If yes are you aware of the advance products (Loan segments) of SBI?
a) YES
b) NO
Q. Which bank you prefer for taking loans?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)
Q. If you prefer SBI for taking loan than what influence you to take Loan from SBI?
________________________________________________________________________________________
__________________________________________________________________________________

Q. Which loan product of SBI you have used?

a) Home Loan
b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans, Specify ( ______________ )
Q. What do you feel about the services providing by SBI in advance product?
a) Bad
b) Satisfactory
c) Good
d) Excellent
Q. Which features you like most in Loan segments of SBI?
a)
b)
c)
d)
e)
f)

Less paper work

Attractive interest rate
Transparency
Simple & fast processing
Flexibility to choose an EMI base loan or an overdraft
Longer tenure lone for ease of repayment
40

g) Specially design product for self employed

h) Any other feature, specify ( _____________ )
Q. Any suggestion you want to give for the betterment of SBI advance product.
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

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Bibliography:
Text Books:
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.
New Jersey: Prentice Hall
Wilson A. (2003), Marketing Research: An Integrated Approach
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition
Internet:
www.google.co.in
www.sbi.com
www.sbi.co.in
www.bnet.com

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