CONTENS

CHAPTER

TOPIC

PAGE NO

INTRODUCTION

6-14

PROFILE OF SBI

15-24

a) OVERVIEW
b) HISTORY
c) MANAGEMENT

RESEARCH METHODOLOGY

25-34

a) OBJECTIVE
b) HYPOTHESIS
c) MARKETING STRATEGY

DATA ANALYSIS

35-63

a) COMPETITOR
b) DOCUMENTATION
c) SERVICE CHARGES
d) FAQS

FINDING & OBSERVATION

64-66

CONCLUSION & SUGGESTION

67-68

BIBLIOGRAPHY
E
QUESTIONNAIR

CHAPTER-1

Introduction of consumer behaviour

INTRODUCTION

Consumer Behavior
Note: The issues discussed below are covered in more detail at consumer behavior
section of this site.
Consumer behavior involves the psychological processes that consumers go through in
recognizing needs, finding ways to solve these needs, making purchase decisions (e.g.,
whether or not to purchase a product and, if so, which brand and where), interpret
information, make plans, and implement these plans (e.g., by engaging in comparison
shopping or actually purchasing a product).
Sources of influence on the consumer. The consumer faces numerous sources of
influence.

Often, we take cultural influences for granted, but they are significant. An American will
usually not bargain with a store owner. This, however, is a common practice in much of
the World. Physical factors also influence our behavior. We are more likely to buy a soft
drink when we are thirsty, for example, and food manufacturers have found that it is more
effective to advertise their products on the radio in the late afternoon when people are
getting hungry. A persons self-image will also tend to influence what he or she will buy
an upwardly mobile manager may buy a flashy car to project an image of success.
Social factors also influence what the consumers buyoften, consumers seek to imitate
others whom they admire, and may buy the same brands. The social environment can
include both the mainstream culture (e.g., Americans are more likely to have corn flakes
or ham and eggs for breakfast than to have rice, which is preferred in many Asian
countries) and a subculture (e.g., rap music often appeals to a segment within the
population that seeks to distinguish itself from the mainstream population). Thus,
sneaker manufacturers are eager to have their products worn by admired athletes.
Finally, consumer behavior is influenced by learningyou try a hamburger and learn that

it satisfies your hunger and tastes good, and the next time you are hungry, you may
consider another hamburger.
Consumer Choice and Decision Making: Problem Recognition. One model of
consumer decision making involves several steps. The first one is problem recognition
you realize that something is not as it should be. Perhaps, for example, your car is getting
more difficult to start and is not accelerating well. The second step is information
searchwhat are some alternative ways of solving the problem? You might buy a new
car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a
skateboard to work. The third step involves evaluation of alternatives. A skateboard is
inexpensive, but may be ill-suited for long distances and for rainy days. Finally, we have
the purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the
store because you did not find it satisfactory). In reality, people may go back and forth
between the stages. For example, a person may resume alternative identification during
while evaluating already known alternatives.
Consumer involvement will tend to vary dramatically depending on the type of product.
In general, consumer involvement will be higher for products that are very expensive
(e.g., a home, a car) or are highly significant in the consumers life in some other way
(e.g., a word processing program or acne medication).
It is important to consider the consumers motivation for buying products. To achieve
this goal, we can use the Means-End chain, wherein we consider a logical progression of
consequences of product use that eventually lead to desired end benefit. Thus, for
example, a consumer may see that a car has a large engine, leading to fast acceleration,
leading to a feeling of performance, leading to a feeling of power, which ultimately
improves the consumers self-esteem. A handgun may aim bullets with precision, which
enables the user to kill an intruder, which means that the intruder will not be able to harm
the consumers family, which achieves the desired end-state of security. In advertising, it
is important to portray the desired end-states. Focusing on the large motor will do less
good than portraying a successful person driving the car.

Information search and decision making. Consumers engage in both internal and
external information search. Internal search involves the consumer identifying
alternatives from his or her memory. For certain low involvement products, it is very
important that marketing programs achieve top of mind awareness. For example, few

people will search the Yellow Pages for fast food restaurants; thus, the consumer must be
able to retrieve ones restaurant from memory before it will be considered. For high
involvement products, consumers are more likely to use an external search. Before
buying a car, for example, the consumer may ask friends opinions, read reviews in
Consumer Reports, consult several web sites, and visit several dealerships. Thus, firms
that make products that are selected predominantly through external search must invest in
having information available to the consumer in neede.g., through brochures, web
sites, or news coverage.

A compensatory decision involves the consumer trading off good and bad attributes of
a product. For example, a car may have a low price and good gas mileage but slow
acceleration. If the price is sufficiently inexpensive and gas efficient, the consumer may
then select it over a car with better acceleration that costs more and uses more gas.
Occasionally, a decision will involve a non-compensatory strategy. For example, a parent
may reject all soft drinks that contain artificial sweeteners. Here, other good features
such as taste and low calories cannot overcome this one non-negotiable attribute.
The amount of effort a consumer puts into searching depends on a number of factors such
as the market (how many competitors are there, and how great are differences between
brands expected to be?), product characteristics (how important is this product? How
complex is the product? How obvious are indications of quality?), consumer
characteristics (how interested is a consumer, generally, in analyzing product
characteristics and making the best possible deal?), and situational characteristics (as
previously discussed).
Two interesting issues in decisions are:
Variety seeking (where consumers seek to try new brands not because these
brands are expected to be better in any way, but rather because the consumer
wants a change of pace, and
Impulse purchasesunplanned buys. This represents a somewhat fuzzy
group. For example, a shopper may plan to buy vegetables but only decide in the
store to actually buy broccoli and corn. Alternatively, a person may buy an item

which is currently on sale, or one that he or she remembers that is needed only
once inside the store.
A number of factors involve consumer choices. In some cases, consumers will be more
motivated. For example, one may be more careful choosing a gift for an in-law than
when buying the same thing for one self. Some consumers are also more motivated to
comparison shop for the best prices, while others are more convenience oriented.
Personality impacts decisions. Some like variety more than others, and some are more
receptive to stimulation and excitement in trying new stores. Perception influences
decisions. Some people, for example, can taste the difference between generic and name
brand foods while many cannot. Selective perception occurs when a person is paying
attention only to information of interest. For example, when looking for a new car, the
consumer may pay more attention to car ads than when this is not in the horizon. Some
consumers are put off by perceived risk. Thus, many marketers offer a money back
guarantee. Consumers will tend to change their behavior through learninge.g., they
will avoid restaurants they have found to be crowded and will settle on brands that best
meet their tastes. Consumers differ in the values they hold (e.g., some people are more
committed to recycling than others who will not want to go through the hassle). We will
consider the issue of lifestyle under segmentation.

State Bank, the largest bank in India, offers attractive auto loans. State Bank
Auto Loan has low interest rates, easy repayment options, and total
transparency. Finance package includes vehicle registration charges,
insurance, one-time road tax and accessories. And as State Bank branches
are located even in remote areas, it is easy to apply. Loan can be availed for
new
or
old
car,
jeep
or
Multi
Utility
Vehicles.

Features

Low interest rates

Repayment period of up to 84 months

No administrative charges

Expenses for one-time road tax, registration fee, insurance premium

and accessories included in finance

One need not pay any advance EMI

Interest is levied on daily reducing balance method. When a customer

pays one installment, the interest is automatically calculated on the
reduced balance thereafter.

Eligibility
Anyone with net annual income of Rs One Lakh is eligible for auto loan of SBI.
The individual must be between the age of 21-65 years of age. He must be a
permanent employee of State / Central Government, Public Sector
Undertaking, Private Company or a reputed establishment or a professional
or self-employed individual who is an income tax assessed. People engaged
in
agriculture
and
allied
activities
can
also
avail
SBI
loan.

Loan amount
The upper limit for car loan amount is not fixed. The bank could sanction a
maximum loan amount of 2.5 times the net annual income. Spouse's income
could also be considered if the spouse becomes a co-borrower. The sanction
amount includes finance for one-time road tax, registration and insurance.
Loan amount for used car has the maximum limit of Rs 15 lakhs.

Documents needed

Applicants need to furnish residence proof, identity proof and income proof
besides the copy of PAN card. SBI account holders need not produces proof
regarding residence and identity.

Procedure of car loan

Once you have zeroed in on the car that you want to purchase, the next step
is apply for car loan. There is a lot less paper work involved than a home loan
sine the bank does not have to varify any asset as in the case of home loans.
It takes about 3-6 days for you to get a car loan a lot less time than a home
loan.
Here is a step by step break up of the car loan application process:

Step-1: enquiry with a lender

The 1st step is to get in touch with a lender. You need to get in touch with as
many lender as possible and get them to make loan offers for you. Then
negotiate with them to get the best interest rate. Check if there are any
especial offers. After you have got all the banks to make their offers to you,
select your lenders based on the information you have in front of you.

Step-2: documents collection

After you finalize your lender, the lenders direct selling agent will wisit you
and collect document supporting proof of income, residence proof, and

identity. You may be required to produce copies of IT return, salary

sleep,banks statement,passport, driving licence and other relevent
document. These requirement vary from lender to lender.

Step-3: field investigation agency representive visit

After submiting the documents, a field investigator will visit you your home to
double check the facts provided in the documents, such as your place of
residence, tenure at work place, and so on. It is essential that you are present
during this visit to clarify any query that the investigator might have.
Otherwise, the investigator might not get all the facts clearly and could report
that the facts you provided do not actually add up- thus forcing the lender to
reject your loan application.

Step-4: loan approved

Once the lender is satisfied with the veracity of your document, the loan is
approved. The lender then disburses the amount through cheques or demand
drafts

10

Car loan to NRIs

1.

Purpose

For construction, purchase/repair/renovation/alteration of a house or for purchase of a

plot for the construction of a house for self occupation on return to India.

2.

Persons Eligible

A. All Non Resident Indians holding Indian Passports with a regular monthly
income of not less than Rs. 10000/b. Spouses and close relatives of Non-Residents, who are residents jointly
with the non-resident Indian.

3.

Amount of Loan

60 times the Net Monthly Income (NMI) / Average Monthly Income (AMI) for persons
up to 45 years and 48 times for persons above 45 years of age. However, the
repayment obligation is restricted to Maximum 60% of the NMI/AMI.

4.

5.

Margin
Upton Rs.30 lac - 20%
Above Rs.30 lac and up to Rs.3 crore - 25%

Interest

Linked to our Prime Term Lending Rate and subject to change click on the link
for present interest rates

11

6.
a

Disbursement
Construction of new building.
b

In three stages, 30%. 40% and 30% of the loan amount. The last installment will
be disbursed three or four weeks prior to the completion of the building.

Outright purchase 100% to the seller, after payment of the margin by the
applicant.

Purchase of plot and construction of the building.

The loan component for purchase of the plot will be only 30 % of the total project
coat.

7.

Repayment

180 months including the repayment holiday of a maximum of 18 months.

Repayment will begin on completion of the house or 18 months from the
disbursement of the first installment of the loan, whichever is earlier. Repayment
can be made either through remittance from abroad or transfer from
NRE/FCNR/NRO A/c or by resident relatives. Rental income if any received should
go towards repayment of loan. Repayment can be from local sources after
returning to India permanently.
Premature closure of loan permitted subject to conditions/penalty

8.

Security

Mortgage of property by deposit of title deeds.

12

9.

Processing Charge

Limit upto Rs.25,000/-

Nil

Limits above Rs.25,000

to Rs. 2 lacs

0.55% of the loan

amount (Max. Rs.500/-)

Limits above Rs.2 lacs

0.55% of the loan

amount (Max.Rs.10,000/-)

10.

Insurance

Insurance is to be arranged for the total cost of the building.

11.

Papers to be submitted to Bank

In addition to the application form (in duplicate) two copies of the passport
and two passport size photographs, a declaration-cum-Affidavit in the Bank's
approved format, the following papers are to be submitted to the Bank.

11.1

Proof of Income

(a) In the case of salaried persons:

i

Salary certificate issued by the employer and duly attested by

an embassy official

ii

Average monthly remittance into NRE A/c. in case of others.

iii

Authorizations to deduct monthly installments from NRE/NRO

A/c.

11.2 Documents to be submitted for

construction/improvement of houses

13

A copy of the plan inclusive of site plan approved by the

Corporation/Municipality /Development Authority /Panchayat as
required.

ii

A copy of the building permit issued by the Corporation/

Municipality/ Panchayat as required. In areas where building
permit is not required a no Objection Certificate from the
authority concerned.

iii

Estimate approved by an official not below the rank of

Asst.Engineer (Civil)/ Registered Architect / Chartered Egg.

iv

Original and prior title deeds

Latest tax receipts

vi

Possession certificate

vii

Encumbrance certificate from the Sub Registrar for the last 15

years.

1)

Purpose :

To finance purchase of new Cars or Jeeps

2)

Persons
Eligible :

NRIs or spouse of NRIs who have regular Net Monthly

Income (NMI) of not less than Rs 10000.

14

3)

Loan
amount :

Up to 30 times the NMI for Cars and Jeeps (The Net

Monthly Income of spouse (resident or nonresident)
can also be included provided the spouse would also
guarantee the loan. In the case of resident employed
person, he/she should have permanent employment or
be a self employed professional of good standing.)
Max 12 lacs

4)

Security:

a) The vehicle should be hypothecated to the bank

and the lien noted in the registration certificate book.
b) Guarantee of spouse where her / his income is also
taken into account for NMI and Loan amount.
c) Equitable mortgage of property or third party
guarantee of two persons each worth the loan
amount.

5)

Margin :

a) 15 % of the cost of the vehicle

b) Second hand car upto 2years old 25% of the cost
c) Second hand car above 2 years upto 5 years old
40%of the cost

6)

Interest :

current interest rate

7)

Repaymen
t:

In 84 Equated Monthly Installments [EMI]

8)

Insurance:

Comprehensive insurance is compulsory for all vehicle

loans at your cost with suitable bank clause.

9)

Processing
Charges :

0.50% of the loan amount subject to a minimum of

Rs.500/- and maximum of Rs.10000/-

10 Papers to

a) Invoice in duplicate from dealer

15

be
submitted
:

b) Application in duplicate
c) Two passport size photographs
d) Salary certificate of employed persons OR evidence
of average remittance into bank (NRE) account for
past 12 months
e) Details of guarantors and property to be
mortgaged, if any

16

CHAPTER-2
PROFILE OF STATE BANK

Overview
History
Competitors
Strength & opportunities
Different product

17

Overview

State bank of India is the largest and on e of the oldest commercial bank
in India. In existence more than 200 years. The bank provides a full range
of corporate, commercial and retail banking services in India. Indian
central bank namely reserve bank of India is the major share holder of the
bank with 59.7% stake. The bank is capitalized to the extent of
Rs.647bill.with a public holding 40.3%. SBI has a largest branch and ATM
network spread of cross every corner of India. The bank has a branch
network of over 14000 branches apart from Indian network it also has a
network of 73 overseas offices in 30 country in all time zone ,
correspondent relationship with 520 international banks in 123 country. In
recent past SBI has acquired banks in Mauritius, Kenya, and Indonesia.
The bank is listed on the Bombay stock exchange, national stock
exchange, Chennai, Kolkata and Ahmadabad stock exchange.

SBI groups accounts for around 25% of the total business of the banking
industry while it accents for 35% of the total foreign exchange in India.
With this types of strong base SBI has displayed a continued performance
in the last few years in scaling up it efficiency level.

MANAGEMENT

The bank has 14 directors on the board and is responsible for the
management of the banks business. The board in addition to monitoring
corporate also carries out function such as approving the business plan,
reviewing &approving the annual budgets &borrowing limits.Mr.O.P.Bhatt
is the chairman of the bank. The five year term of MR. Bhatt will expire in
March 2011.prior to this appointment, Mr. Bhatt was Managing Director at
state bank of Travancore. Mr. Bhatt has more than 30 year of experience

18

in the in din banking industry & is seen as futurist leader in his approach
towards technology & customer services.

Mr. Bhatt would be a key to SBIs future growth momentum. Mr. T.S
Bhattacharya is the managing director of the bank & known as for his vast
experience in the banking industry. Recently, the senior management of
the bank has been broadened considerably. The position of CFO & the
head of treasury have been segregated, & new heads for rural banking &
for corporate development & new business banking have been appointed.
The managements thrust on growth of the bank in term of network & size
would also ensure encouraging prospects in time to come.

Shareholding & Liquidity (Till 30th Sep.2009)

Reserve Bank of India is the largest shareholder in the bank with 59.7%
stake followed by

Overseas investors including GDRs with 19.78% stake as on September

06. Indian financial

Institutions held 12.3% while Indian public held just 8.2% of the stock. RBI
is the monetary

19

Authority and having majority shareholding reflects conflict of interest.

Now the government is

Rectifying the above error by transferring RBIs holding to itself. Post this,
SBI will have a further

Headroom to dilute the GOIs stake from 59.7% to 51.0%, which will
further improve its CAR

And Tier I ratio.

20

Key Areas of Operations

The business operations of SBI can be broadly classified into the key
income generating areas
such as National Banking, International Banking, Corporate Banking, &
Treasury operations.

21

HISTORY

The origin of the state bank of India goes back to the first decade of the
nineteenth
century with the establishment of the Bank of Calcutta on
2june 1806.Three years later the bank received its charter and was redesigned as
the Bank of Bengal (2January1809).A unique Institution, it was the first joint
stock bank of British India sponsored by the Government of Bengal. The Bank
of Bombay (15April1840) and the Bank of Madras (1July1843) followed the
Bank of Bengal. These three banks remained at the apex of modern banking
in India till their amalgamation as the Imperial bank of India on 27 January
1921.

22

Primarily Anglo-Indian creations, the three presidency banks came into

existence either as a result of the compulsions of imperial finance or by
the felt needs of local European commerce and were not imposed from
outside in
an arbitrary manner to modernize India economy .their
evolution was ,however ,shaped by ideas culled from similar development
in Europe and England and was influenced by changes occurring in the
structure of both the local trading environment and those in the relations
of the Indian economy to the economy of Europe and the global economic
frame work.

Group Photograph of Central Board (1921)

Business

23

The three banks were governed by royal charters, which were revised
from time to time. Each charter provided for a share capital, four-fifth of
which were privately subscribed and the rest owned by the provincial
govt. the members of board of directors, which managed the affairs to
each bank, were mostly proprietary directors representing the large
European managing agency houses in India. The rest were govt.
nominees, invariably civil servants, one of whom was elected as the
president of the board.

The business of the banks was initially confined to discounting of bills of

exchange or other negotiable private securities, keeping cash accounts
and receiving deposits and issuing and circulating cash notes. Loans were
restricted to rs. 1lakh and the period of Indian banking system in to the
exciting field of national development.

24

Competitors and other player in the field

Top performing public sector banks

Andhra bank
Allahabad bank
25

Punjab national bank

Dena bank
Vijaya bank

Top performing private sector bank

HDFC bank
ICICI bank
AXIS bank
Kotak Mahindra bank
Centurion bank of Punjab

Top performing foreign bank

Standard chartered
HSBC bank
ABN AMRO bank
American express

26

Strength & opportunities

The growth of SBI in the coming years is likely to be fueled by the following
factor:

Continued effort to increase low cash deposit would ensure improvement in

NIMs & hence earning.

Growing retail & SMEs thrust would lead to higher growth.

Strong economic growth would generate higher demand for funds pursuant to
higher corporate demand for credit on account of capacity expansion..

Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under:

27

 SBI is currently operating at a lowest CAR. Insufficient capital may restrict

the growth
prospects of the bank going forward.

Stiff competition, especially in the retail segment, could impact retail

growth of SBI and
hence slowdown in earnings growth.

Contribution of retail credit to total bank credit stood at 26%. Significant

thrust on growing
retail book poses higher credit risk to the bank.

Delay in technology up gradation could result in loss of market shares.

Management indicated a likely pension shortfall on account of AS-15 to be

close to
Rs50bn.

Slow down in domestic economy would pose a concern over credit off-take
thereby

28

SBI DIFFERENT PRODUCT

Deposit Loans

Cards

Different
credit
cards

Saving

Home loans

account

Consumer

SBI

cards

international
cards

Life plus

Loan

Credit

SBI gold

senior

against

cards

cards

citizens

property

saving
account
Fixed

Personal

Travel

SBI gold

deposit

loans

cards

master cards

Security

Car loans

Debit cards

Your city

deposit

your cards

Recurring

Loan

Commercial Your city

deposit

against

card

your cards

Corporate

Partnership

security
Tax-saver

Two

29

fixed

Wheeler

cards

Salary

Preapprove

Prepaid

account

card

card

deposit

Loan
Advantage

Retail

Purchase

SBI

assets

card

employee
cards

Woman
saving
account
Rural

Farmer

Distributio

saving

finance

n card

Peoples

Business

Business

SBI

savings

installment

cards

advantages

accounts

loans

freedom

Flexi cash

account

cards
merchant

30

CHAPTER-3
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

31

Research is a systematic gathering; recording and analysis of data collected

by various parameters related to give project and accordingly prepared report
base on which company can take correct decision.

Data Sources:
The source including primary data and secondary data.

Primary data:

Primary data consist of original information gather for the purpose. Primary
data collected through questionnaire.

Secondary data:
Web site & company broacher.

Research Approach:
The primary data was collected through survey. For the survey personal
interview technique was adopted. Survey was undertaken to find out the
information needed for the study.

Sampling:

32

Sampling was done in order to cover the major car showrooms of Nagpur city
such as Maruti (Kamptee road), Toyota (Kamptee road), Chevrolet (Kamptee
road), Mahindra Kamptee road), Skoda (Amravati road), Hundai (Amravati
road), Tata (V.C.A. stadium old), Honda (Khamla road), any many more to
Explore the potential market.

RESEARCH INSTRUMENT:
The research instrument use for collecting a primary data was questionnaires
Prepared.

OBJECTIVES:

First and foremost objective is to find out the reasons for using of
advance product form STATE bank of India.

To find out the services that other bank given to their customer.

To generates the leads through the survey.

To sort out the prospective leads from the data I have collected
through the survey.

To build the relationship with the customers and to follow of them,

make sure that they are satisfied with the product.

To maintain good relationship with the corporate employees.

To get more references from the customer and generate new leads by
following a chain process.

33

To place SBI Advance Product ahead of the competitors.

To find out the customer awareness on booming Advance Product

market and to find out the using patterns of the people.

To make the customer aware of the benefit of the Product convince in

to go for SBI Advance Product.

HYPOTHESIS:

State bank of India is the only bank which is providing the widest rang
of products i.e. various type of loan schemes such as margin money
scheme, advance EMIS schemes and deposit payment schemes etc. as
compared to other financial institute.

State bank of India is offering the lowest interest rates in comparison

to the banks providing CAR Loans.

34

With the appointment sales manager it has managed to approach the

customer directly at their showroom and hence providing a better
services to their customer which, only a few other institutions have
managed to do.

Car loan are the best option you can go for to finance a new finance a
new Car. State bank of India offers you the most convenient and
practical Car loan plans to suit your needs. With so many attractive
features in every type of Car loans we offer.

State bank of India Car loan insure that you get the best deal, in terms
of interest rate and other facilities also, in the most convenient way.
With our varied offering Car loan and Home finance, State bank of India
give an opportunity to select the perfect Car loan as per our need.

ADVANTAGES OF SBI

Excellent service and lower costs. A quick survey of similar schemes

available elsewhere and you will find that SBI Car Loans for new and old
vehicles offer you:

Lowest interest rates

Longer repayment period of upto 84 months.

No hidden costs or administrative charges.

35

Finance for one-time road tax, registration fee, insurance premium and
accessories

No advance EMIs. (Some Banks/companies ask you to pay one or more

EMIs at the time of disbursement of loan, thereby effectively reducing
your loan amount.)

Complete transparency: We levy interest on daily reducing balance

method. When you pay one installment, the interest is automatically
calculated on the reduced balance thereafter. When you pay interest on
an annual reducing balance, as charged by many other companies/banks,
the interest amount for the coming year is determined on the amount
outstanding at the beginning of the year. You continue to pay interest
even on the amounts you repay during the year.

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 income could also be considered provided the spouse becomes a coborrower in the loan. The loan amount includes finance for one-time road tax,
registration and insurance!
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.

36

MARKETING STRATEGY

1. PREAMBLE
Scope: l(a)

FAIR LENDING PRACTICES CODE (FLPC for short) is a voluntary code adopted by our
Bank, which aims to achieve synchronization of best practices while dealing with
Customers in India. It aims to provide valuable inputs to Customers and facilitates
effective interaction of customers with the Bank.
Extent:
l(b FLPC would be applicable in the Bank from the date it is placed in the Bank's web
) site or is otherwise publicised through the media.
FLPC contains 8 important declarations from us, the spirit of which pervades the
entire FLPC provisions.

2.
Important declarations:
The Bank declares and undertakes

To provide in a professional manner, efficient, courteous, diligent and speedy

services in the matter of retail lending.

Not to discriminate on the basis of religion, caste, sex, descent or any of them.
To be fair and honest in advertisement and marketing of Loan Products.
To provide customers with accurate and timely disclosure of terms, costs, rights
and liabilities as regards loan transactions.

If sought, to provide such assistance or advice to customers in contracting loans.

To attempt in good faith to resolve any disputes or differences with customers by
setting up complaint redressal cells within the organization.

To comply with all the regulatory requirements in good faith.

To spread general awareness about potential risks in contracting loans and

37

encourage customers to take independent financial advice and not act only on
representations from banks.

3.
FAIR PRACTICES:
3.1. Product Information:
(a) A prospective customer would be given all the necessary information
adequately explaining the range of loan products available with the Bank to
suit his / her needs.
(b) On exercise of choice, the customer would be given the relevant information
about the loan product of choice.
(c) The Customer would be explained the processes involved till sanction and
disbursement of loan and would be informed of timeframe within which all the
processes will be completed ordinarily at our bank.
(d) The Customer would be informed of the names and phone numbers of
branches and the persons whom he can contact for the purpose of loan to suit
his needs.
(e) The Customer would be informed the procedure involved in servicing and
closure of the loan taken.

3.2.
Interest Rates
3.2.1 Interest Rates for different loan products would be made available through and
.
in anyone or all of the following media, namely:
(a) In the Bank's Web site
(b) Over phone, if Tele Banking services are provided
(c) Through prominent display in the branches and at other delivery points
(d) Through other media from time to time

3.2.2 Customers would be entitled to receive periodic updates on the interest rates
applicable to their accounts.

38

3.2.3 On demand, Customers can have full details of method of application of

interest

3.3
Revision in Interest Rates:
(a) The Bank would notify immediately or as soon as possible any revision in the
existing interest rates and ranked them available to the customers in the media
listed in Para 3.2.1.
(b Interest Rate revisions to the existing customers would be intimated within 7
) working days from the date of change through notifications in the Banks Website
/ media/ notice board at branches.

3.4.
Default Interest/Penal Interest:
(a) The Bank would notify clearly about the default interest/penal interest rates to
the prospective customers.

3.5.
Charges:
(a) The Bank would notify details of all charges payable by the customers in relation
to their loan account.
(b The Bank would make available for the benefit of prospective customers all the
) details relating to charges generally in respect of their retail products in the
media specified in Para 3.2.1.
(c) Any revision in charges would be notified in advance and would also be made
available in the media as listed in Para 3.2.1.

3.6.

39

Terms and Conditions for Lending:

(a) The Bank would ordinarily give an acknowledgement of receipt of loan request
and if demanded by the customer, a copy of the application form duly
acknowledged would also be given, as soon as the customer chooses to buy a
product of or service of his choice.
(b Immediately after the decision to sanction the loan, the Bank would show draft of
) the documents that the customer is required to execute and would explain, if
demanded by the customer, the relevant terms and conditions for sanction and
disbursement of loan.
(c) Loan Application forms, Draft documents or such other papers to be signed by a
customer shall comprehensively contain all the terms and conditions relating to
the product or service of his choice.
(d Reasons for rejection of loan applications would be conveyed to all barrowers
) irrespective of the size of the loan.
(e) Before disbursement of loan and on immediate execution of the loan documents,
the Bank shall deliver a copy of the documents to the customers.

3.7.
Accounting Practices:
(a) The Bank would provide regular statement of accounts, unless not found
necessary by the customers.
(b The Bank would notify relevant due dates for application of agreed interest, penal
) interest, default interest, and charges if they are not mentioned in the Loan
applications, documents or correspondence.
(c) The Bank would notify in advance any change in accounting practices which
would affect the customer before implementation.

3.8.
Information Secrecy
(a) All personal information of the customer would be confidential and would not be
disclosed to any third party unless agreed to by customer. The term 'Third party'
excludes all Law enforcement agencies, Credit Information Bureaux, Reserve
Bank of India, other banks/ financial and lending institutions.
(b Subject to above Para, customer information would be revealed only under the

40

) following circumstances;

If our Bank is compelled by law.

If it is in the Public Interest to reveal the information.
If the interest of the Bank require disclosure.

3.9.
Financial Distress:
a) The Bank would sympathetically reckon cases of customer's financial distress.
b) Customers would be encouraged to inform about their financial distress as soon
as possible.
c) The Bank would adequately train the operational staff to give patient hearing to
the Customers in financial distress and would try to render such help as may be
possible in their view.

3.10.
Grievance Redressal
a) The Bank would have in place a Grievance Redressal Cell/ Department/ Centre.
b) The Bank would make available all details, namely;

Where a complaint can be made

How a complaint should be made

41

 When to expect a reply

Whom to approach for redressal of grievance etc.,
to the customers individually on demand and through the media listed in Para
3.2.1.

c) Response to a complaint whether positive or negative or requiring more time for

redressal would generally be given within a maximum period of four weeks from
the date of receipt of complaint, unless the nature of complaint is such that
requires verification of voluminous facts and figures.

42

CHAPTER-4
DATA ANALYSIS & COLLECTION

43

Capital adequacy ratio

16
14
12
10

4.87

4.4

4.44

4.33

tire-2

tire-1
6
4

8.01

9.14

8.53

2007-2008

2008-2009

9.38

2
0
2006-2007

2008-2009

Highlights
FOR THE
YEAR

2007-2008

2008-2009

% change

Total Income
(Rs. crores)

57645

76497

32.67

Total
Expenditure
(Rs. crores)

44538

58564

31.49

6729

9.121

35.56

126.62

143.77

13.54

Net Profit (Rs.

crores)
Earnings per

44

Share (Rs.)
(Basic)
Return on
Average Assets
(%)
Return on
Equity (%)
Profit per
Employee (Rs.
thousands)

1.01

1.04

2.97

17.82

15.73

(-) 11.73

372.57

473.77

27.16

45

March

March

AT THE END
OF

2008

2009

Paid-up
capital and
reserve &
surplus (Rs.
Crores)

49,033

57,948

18.18

Deposit (Rs.
Crores)

5,73,404

7,42,073

38.08

Advance
(Rs. Crores)

4,16,768

5,42,503

30.17

Number of
domestic
branches

10,186

11,448

12.39

Number of
foreign
branches/o
ffices

84

92

9.52

12.64

14.25

12.74

1.78

1.76

(-) 1.12

Capital
adequacy
ratio (%)
Net npa (%)

% change

46

Business per employee

60000

55600

50000
40000

45800
35700
2006-2007

30000

2007-2008
2008-2009

20000
10000
0
Series 1

47

Profit Per employee

48

Series 1
500
450
400
350

Series 1

300
250
200
150
100
50
0
2006-2007

2007-2008

2008-2009

49

Return on assets

Series 1
1.2
1
0.8

Series 1

0.6
0.4
0.2
0
2006-2007

2007-2008

2008-2009

50

Net nap ratio

51

Series 1
1.8

1.78

1.75

1.76

1.7
Series 1

1.65
1.6
1.55

1.57

1.5
1.45
2006-2007

2007-2008

2008-2009

52

Deposit & advance

800000

742073

700000
600000
500000
400000

537404
435521

542503

416758
deposits

337336

advances

300000
200000
100000
0
2006-2007

2007-2008

2008-2009

During the year, India continued to remain the second fastest growing
economy in the world, because of large domestic demand, especially from
rural India, Govt. investments, a stable financial services sector, Fall in
inflation and prompt coordinated policy action on multiple fronts. This is
despite the fact that the scenario of global economy

53

during the year gone by was one of the most challenging. Its effects are not
going to be completely wiped out even in the current year.

Its impact on India, however notwithstanding todays globalised world, has

not been very severe, though it did somewhat affect industrial production,
GDP growth and exports.
On the macro-economic front, we believe that the worst is over. The Indian
economy is showing signs of revival with growth reviving across sectors like
cement, steel, auto, telecom, banking and FMCG. Further, demand from the
rural sector which was the mainstay of the economy last year is expected to
continue to propel growth in
the current year. With a new, stable Government in place, our expectation for
the GDP growth in 2009-10 is in excess of 7%. Even in this slowdown, both
global and domestic, your Bank has turned in a brilliant performance with a
splendid growth of Rs. 3,30,404 crores in total business, impressive rise in
profits and containment of NPAs.
At the same time, your Bank continued to be on the growth trajectory during
FY-09 in respect of branch expansion with as many as 807 new branches
being opened, a majority of which (481) were in rural And semi-urban areas.
The Bank also increased its ATM network by An impressive 44% to 8581 by
the end of FY-09. Another important
milestone achieved by your Bank during the year was the extension Of
coverage under the Core Banking Platform to cover all its 11448
Branches. This is one of the largest core banking networks in the world and
growing, and is no small achievement. Another significant event during the
year was acquisition of State Bank of Saurashtra, a wholly owned Associate of
your Bank, by your Bank.
You will be happy to note that your Bank showed an impressive growth of
35.55% in Net Profit from Rs.6, 729 crores in FY-08 to Rs. 9,121 crores in FY09. Operating Profits too posted a smart growth of 36.68% to Rs. 17,915
crores in FY-09 on the back of a healthy
increase of 22.63% in Net Interest income to Rs.20, 873 crores in FY-09,
driven by growth in advances and increase in yields as also an increase of
45.96% to Rs.12,691 crores in other income.

54

Notwithstanding the economic slowdown evidenced in the FY-09, your Bank

registered an impressive increase in interest income which rose by 30.31% as
also a significant increase in core fee income which showed a growth of
28.7%. Even though operating expenses rose by 24.11%, attributable
primarily to increase in staff costs on account of additional provisions for
pension and wage revision and recruitment of additional staff during the year;
cost to income ratio was brought down significantly (2.41%) from 49.03% in
FY-08 to 46.62% in FY-09. Despite pressure on interest spreads and intense
competition, your Bank could still record a Net Interest margin (NIM) of 2.93%
in FY-09. During the year 2008-09, your Bank saw excellent growth in all
businesses/market segments in which it operates. A significant feature during
the year was your Banks high growth in both Advances and Deposits which
exceeded the industry average, leading to a significant increase in its market
share.

Deposits of your Bank grew by 38.08% in 2008-09 against Other Scheduled

Commercial Banks (OSCB) growth of 16.55%, leading to a spurt in its market
share in deposits by 2.31% to 17.72% by March 2009. With continued focus
on low cost CASA deposits which registered a growth of 23% during the year,
your Banks market share
in demand deposits also rose sharply by 3.67% to 17.53%. As a part of
strategy, your Bank reduced its reliance on bulk deposits as a percentage of
total deposits to 10.81% from 14.13% in FY-08. Similarly, the Banks
advances portfolio witnessed a robust growth (30.17%) of Rs.1,25,735 crores.
This growth of 30.17% in advances as against OSCB growth of 16.13%
pushed up your Banks market share in advances by 0.83 % to 16.03% by the
year end. The growth in advances was well rounded with every Segment
(Large advances 47%, Mid Corporate advances 23%, SME advances
20%, Retail
advances 18%, Agri. advances 19%, International advances 54%),
contributing to the overall growth in advances. Retail lending continued to
occupy centre stage with a growth in Education Loans (50%), Auto Loans
(36%) and Housing Loans (21%) during the year. This also helped improve
market share from 17.48% to 19.74% in respect of
Home Loans and from 10% to 12% in respect of Auto Loans for new vehicles.
To offer timely help to SMEs, which were reeling under the impact of slow
down in the economy particularly exports, your Bank launched two new
schemes SME CARE and SME HELP offering the affected SMEs, finance on
liberalized terms at a concessional
rate of interest of 8%.

55

In advances to the Agriculture segment, your Bank continued to be above the

18% benchmark stipulated by RBI for the second time consecutively. It also
surpassed the targets set by the Govt. of India in respect of credit flow by
way of fresh disbursements as also the number of new farmers financed. In
pursuit of its desire to be the Banker to every Indian, your Bank has
gone in for aggressive expansion in the number of Customer Service
Points/BCs/BFs to 17,979which now cater to 52,782 previously un-banked
villages, with plans to cover additional 50,000 un-banked villages in the
current year. Your Bank is firm in its resolve to achieve total financial inclusion
through the use of the latest and best technology. As at the end of 2008-09,
as many as 23.61 lakh Smart Cards, which work on biometric validation of the
customers, had been issued. In the international arena too, your Bank,
despite the global meltdown, achieved a significant growth of 17.7% (in USD
terms) in credit to USD 17.07 billion and continued to focus on its core
strategy of Capturing India related business in high potential countries. While
two of the Banks subsidiaries in Mauritius were merged during the
Year to create a new entity called SBI (Mauritius) Ltd., your Bank along with
its subsidiaries and Joint Ventures abroad opened 9 new Offices, including
full-fledged retail operations in Singapore, taking the total network of
overseas offices to 92 spread over 32 countries. Amidst turmoil in global
markets, your Banks foreign offices maintained
a comfortable liquidity position and could raise US $ 686 million under Banks
Medium Term Notes (MTNs) programme and bilateral loans.

Another noteworthy feature of your Banks performance during the year

2008-09 has been in the area of controlling NPAs. While Gross NPAs declined
marginally to 2.84% in FY-09 from 3.04% in FY-08, Net NPA level too was
practically stable at 1.76% as against 1.78% in FY-08. Similarly, your Banks
Capital Adequacy Ratio (CAR) in terms
of prescriptions of BASEL-II increased to 14.25% in FY-09. This healthy ratio
not only meets the requirements of the regulators worldwide but is also
comparable to the best banks globally. You will be happy to know that the
performance of the Associates
of your Bank during FY-09 has also been noteworthy with an increase of
24.7% in net profit to Rs.2774 crores and 18.95% in total assets. The nonbanking subsidiaries, too, put up a good show with consolidation of their
position/ranking in their space in the financial services arena. Your Bank

56

embarked on several new business initiatives during the last two years which
have started bearing fruit? During the year

Competitor of SBI bank

If you are looking for flexible scheme, quick processing of your loans,
attractive interest rates at the click of a mouse, then your search ends here.
SBI bank car loans is the most preferred financier for car loan in the country
and offers you all the with unbelievable ease.

Our car loan interest charges differ according to the car model, the tenure of
the loan, the customer and his location

57

Bank/product
name

Interes
t rate
type

Loan Tenure (in years)

1

Action
6

Sponsored Results
South Indian
Bank

Fixed

14.25

14.25

14.25

14.25

14.25

NA

NA

Saraswat Bank

Fixed

10.0

10.0

10.0

10.5

10.5

11.0

11.0

The Ratnakar
Bank

Fixed

12.5

12.5

12.5

12.5

12.5

NA

NA

J&K Bank

Floating

11.0

11.0

11.0

11.0

11.0

11.5

11.5

SBT- EZEE Car

Loan Scheme

Fixed

8.0

8.0

8.0

8.0

8.0

8.0

8.0

Karur Vysya
Bank

Fixed

11.5

11.5

11.5

11.5

11.5

NA

NA

ABN Amro

Fixed

15.0

15.0

15.0

15.0

15.0

NA

NA

Indian
Overseas Bank

Fixed

11.5

11.5

11.5

11.5

11.5

NA

NA

HDFC Bank

Fixed

14.0

14.0

14.0

14.0

14.0

14.0

14.0

11.0

11.0

11.0

11.25

11.25

11.5

11.5

10.75

10.75

11.0

11.0

11.0

NA

State Bank of
Floating
Patiala
Dena Bank

Floating 10.75

Corporation
Bank

Fixed

10.5

10.5

10.5

11.0

11.0

11.25

11.25

State Bank of
Travancore

Fixed

11.0

11.0

11.0

11.0

11.0

11.25

11.25

Syndicate
Bank

Floating

12.0

12.0

12.0

12.0

12.0

12.0

NA

10.25

10.25

10.75

10.75

10.75

10.75

10.0

10.0

10.0

10.0

10.0

NA

Oriental Bank
Floating 10.25
of Commerce
United Bank of

Fixed

10.0

58

59

DOCUMENTS REQUIRED

INDIVIDUAL
*2 YEARS INCOME STATEMENT
* ADDRESS PROOF
* BANK STATEMENT
* PHOTOGRAPH
* SALARY CERTIFICATE (FROM 16 IF EMPLOYED)

PARTERSHIP
*2

years computation of income along with

IT returns.
* audited balance sheet and profit & loss
account.
* Partnership deed
* Partnerships authority later
* address proof

60

*bank statement for 6 month

*PRIVATE LTD & LITIMED COMPANY

*2 years IT return (audited balance sheet &

p& L account)
* Board resolution
* Memorandum & articles of association

Highlights
Loan Type

New Car

Used Car

ExShowroom/On
Road

Term Loan

Term Loan

On Road

Ex-Showroom

Min. - Rs 50000
Max. - Rs 85

Min. - Rs 25000
Max. - Rs 60

Min. - 12 Yrs.

Min. - 12 Yrs.

11.75 %

15.25 %

4 days

7 days

Chevrolet, FIAT,
Ford, GENERAL
MOTORS INDIA,
HINDUSTAN
MOTORS, Honda,
Hyundai, Mahindra,

Chevrolet, FIAT,
Ford, GENERAL
MOTORS INDIA,
HINDUSTAN
MOTORS, Honda,
Hyundai, Mahindra,

Loan Amount
Tenure
Interest Rate
Time to Process
Loan
Preferred
Manufacturers

61

Marti, MercedesBenz, Mitsubishi,

Nissan, Riva, SAN
Engineering, Skoda,
Tata Motors, Toyota

Marti, MercedesBenz, Mitsubishi,

Nissan, Riva, SAN
Engineering, Skoda,
Tata Motors, Toyota

Fees & charges

Stamp Duty

New Car

Used Car

Pre-Payment
Charges

As Per Actual

As Per Actual

2%

2%

Legal,
Repossession
and Incidental
Charges

As Per Actual

As Per Actual

62

Income

Rs 12000

Age

Min.: 21 Yrs. Max.: 58 Yrs.

Current Employment Years

1 Yrs.

Total Employment Years

2 Yrs.

Documents Required:
ID Proof

Yes

Residence Proof

Yes

Income Proof

Yes

Telephone

Yes

Photograph

Yes

Bank Statement

Yes

Signature Proof

Yes

Eligibility Criteria

63

64

Income

Rs 10000

Age

Min.: 21 Yrs. Max.: 65 Yrs.

Total Employment Years

3 Yrs.

Documents Required:
ID Proof

Yes

Residence Proof

Yes

Income Proof

Yes

Telephone

Yes

Photograph

Yes

Bank Statement

Yes

Signature Proof

Yes

Self Employed

DOCUMENTATION OF CAR LOAN

65

 The first financier for car loans in the country

Network of more than 1800 channel partner in over 1000
locations.
Tie-up with all leading automobile manufacturers to
ensured the best deals.
Flexible schemes and quick processing.
Hassle-free application process.

CAR LOAN

SALARIE
D
PARTICUL
INDIVIDU
ARS
AL

AGE
CRITERIA

The applicant
should be at
least 21
years old at
time of
application,
and bellow
60 years of
age of time
maturity of
the loan

SELF
EMPLOYE
D
INDIVIDU
AL
Any
proprietor,
partner,
professional
or director
above 21
years of age
but bellow 65
at the time of
loans
maturity.

PARTENE
RSHIP
FIRM

PRIVATE
& PUBLIC
LTD CO.

Limited
companies
should have
been in
existence
for at least
2 years

66

INCOME
CRITERIA

Gross annual
salary above
Rs.100,000 /
annual

Gross annual
income
above
Rs.60,000

Firm should
have a
minimum PAT
(profit after
tax) income of
Rs.60,000

Minimum
PAT ( profit
after tax) of
Rs.60,000

CAR LOAN FAQS

How do I get an Auto Loan?

First, shop around for all the various finance schemes on Auto Loans
available in the market by applying on deal4loans.com. You can then
decide from margin money schemes, advance EMI's schemes and deposit
payment schemes. Usually margin money schemes offer the best terms,
but at the end of the day, effective interest rate of the loan is what
essentially matters. This method provides a common podium for
assessment of different schemes by discounting on the basis of cash
flows.

How much loan can I get?

The amount of the loan depends upon:
1. The cost of the vehicle.
2. The type (standard/premium).
3. The percentage financing offered.
If you are buying a new car, you can get up to 90% financing but some

67

banks have a limit beyond which they do not offer loans. Also different
banks have different terms for different models (standard/premium,
new/old) The percentage of finance the banks give on cars is also
determined on the basis of second-hand market value of that particular
car. This is for cases, if default by any chance, the banks can get a higher
resale value for the car. This makes the banks comfy enough to give
higher percentage finance.

What documents do I need to establish proof of

income?
For income proof, most banks look at your IT returns for the last two years
and also at the nature of income. However some banks do not consider
speculative income - from the stock market, rental or agricultural income.
Some banks discount such income by up to 50% in their workings.

What documents do I need to establish proof of

income?
For income proof, most banks look at your IT returns for the last two years
and also at the nature of income. However some banks do not consider
speculative income - from the stock market, rental or agricultural income.
Some banks discount such income by up to 50% in their workings

Is it necessary to have an account with the bank

from which you take a loan?
There is no such compulsion for you to have an account with the bank.
Normally banks have no problem in giving auto loans to people who do
not have an account with them. However there may be certain privileges
you may enjoy with having an account of the same bank you take a loan
from

68

Is it better to go to my current bank for loans?

Well if you have a good repayment record for an earlier transaction, YES!
You are also most likely to get a lower lending rate and your process is
sure to move faster. However, do check out some other offers from other
banks as well, before taking a final decision. And this is where
deal4loans.com can assist in getting you multiple quotes from various
banks really fast.

Is credit profile important?

To banks, your credit profile is the most important factor they will consider
before funding you. Your credit profile tells banks if one is able to and
intend to pay back the loan.

What are the detailed components of my credit

profile?
The components of credit profile are age, profession/occupation,
income/financials, previous credit history etc

What can I do if my credit profile does not match

the banks requirements?
If your credit profile does not match the banks requirement you can
reinforce it by bringing in a co-applicant/guarantor who would be able to
match the requirement

Can I get auto loan without the submission of income

documents?
Yes you can, under the No Income Proof scheme offered by some banks.

Can I increase the amount of loan that I can take and

how?

69

Yes, you can. You can increase the amount of loan sanctioned by clubbing
your spouse's income. The spouse then becomes the co-applicant

Do I need a guarantor and who all qualifies as one?

Yes, you need a guarantor. The guarantor could be your father, mother, son,
daughter, husband, brother, sister, son's wife etc et cetera. However for
consideration of these relatives as guarantors for the loan, they should
comply with the age and other such norms of the company

What is the extent of liability of a co-applicant and

the guarantor?
A co-applicant has as much responsibility as the primary applicant and is
equally liable to the banks from which the loan is taken. The guarantor
however, promises to pay the bank in case the applicant(s) default on the
payment. Both the co-applicant and the guarantor are liable for re-payment
and the banks have the right to collect from either or them.

Is EMI a proper measure for comparing the deals of

various players?
Not really. There are other charges like processing fees, advance EMI's, other
up-front payments (stamp charges), registration charges, insurance which
need to be factored in before comparing the various deals.

How is annual reducing balance different from

monthly reducing balance?
In an annual reducing basis, the outstanding principal gets adjusted once a
year while in the monthly reducing balance; the principal gets adjusted on a
monthly basis. Therefore, more of your principal gets repaid in monthly
reducing basis than in annual basis. However, some banks, calculate EMI's on
a daily or a quarterly basis too.

Floating rate of interest or a fixed rate of interest?

A loan taken on floating rate of interest is a better option when the interest
rates are falling, but when the interest rates are rising, opt for a fixed rate
loan. Also if you go for a fixed rate loan, you will know in advance what your
EMI's will be like and this will help you in your financial budgeting. If you
choose a floating rate, you may not be able to budget properly. So do the
math and choose wisely.

70

What is Flat interest rate and Reducing Balance

interest
rate?
Suppose you have taken a loan of Rs.10 lac at 5% interest. You repay
Rs.50,000 in the first installment. If the 5% interest continues to be applicable
on Rs.10 lac after your first repayment, you are paying a Flat Interest Rate.
But, if 5% interest is applicable now on Rs.9.50 lac, you are paying a Reduced
Balance Interest Rate

Can I pay off my car loan before the tenure is up?

Yes you can pay-off your car loan before the tenure is up by pre-paying your
loan amount. But there may be certain rules regarding the pre-payment that
your bank may have. Also you may have to pay a small penalty, normally, a
percentage of the loan amount that remains outstanding. Some banks
however do not penalize you if you decide to pre-pay. Take this aspect into
consideration when you choose a bank to take loans from because if later on,
you can get a loan at a lower rate of interest, this penalty could compensate
whatever you could save through the interest rate differential. Apply for a
Car loan now

Can I change the tenure and amount of loan taken

after the loan amount has been disbursed?
Yes you can change the tenure and amount of the loan. But this would imply
that the interest rate and the amount of installment will change accordingly.

Can I get a
installments?

temporary

relief

from

paying

my

Yes, in some cases you can. You need to inform your bank in advance. This
should only be for a few days and you will have to pay delayed payment
charges
Upgraded to a new one. The dealer will purchase your car at a price
depending on the model, year and the condition of the car. The value of your
old car is then adjusted against the purchase price of the new car. You could
also get the balance amount financed.

71

What

is

Zero

Interest

Scheme?

Zero Interest Scheme is just that, Zero Interest Scheme. In this scheme you
are not charged any interest and you only pay back the principal amount. But
under such scheme, the amount financed is low and the tenure is short.
However there are hidden costs involved under this scheme as well.

What

happens

after

have

paid

the

last

EMI?

After the last payment is made, get the lien of the bank on your car
cancelled. The bank will issue Form 35 with a covering letter (NOC) to the
RTO for canceling their name from the R/C book. A similar NOC will also be
issued to the insurance company requesting for the deletion of their name
from the policy.

Can I get finance for insurance and registration?

Most financiers do not cover Insurance and registration. The ex-showroom
price is considered which does not cover insurance and registration charges.

What happens if the car meets with an accident?

In the event of an accident, the first step is to inform the insurance company.
The company then sends a surveyor to assess the extent of damages to the
car. Your claim is then processed and paid directly to the banks, unless you
have taken an NOC from the banks, in which case the payment will be made
by the insurance company in your favor. The bank normally gives you an NOC
if you are regular in your payments. In case of a complete loss, the bank
would receive the payment directly from the insurance company.

What

is

De-Dupe?

72

Most banks have compiled a list of defaulters. It has compiled defaulters from
its own bank and also from other available sources from other banks. Details
of all clients are run through this list to check if the same client had applied
for a loan. If the client is the same, the file is rejected. Read more about car
loan!

CAR LOANS INTEREST RATE

73

w.e.f. 29.06.2009 (SBAR 11.75%)

SBI EZEE CAR LOAN SCHEME

SL. No

PARAMETER SCHEME

DETAILS

Applicable to

All New Car Loans to Public

Scheme Period

From July 1, 2009 to September 30, 2009

Interest Rate will be reset on the anniversary
date of the loan to the applicable card rate

Reset Period

contracted as on the date of sanction under the

respective new car loan schemes i.e. Spreads
below/above SBAR as applicable on the date of
Sanction as per the agreement.

Processing fee

Fully waived up to 30th September 2009

New Car including NRI Car Loan

Tenure

Rate of Interest

Up to 3 years (for loans Rs. 7.5 lac & above)

0.75% below SBAR i.e. 11.00% p.a.

Up to 3 years (for loans below Rs. 7.5 lac)

0.50% below SBAR i.e. 11.25% p.a.

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

0.50% below SBAR i.e. 11.25% p.a.

74

Car Loan Overdraft: New Car only

Tenure

Rate of Interest

Up to 3 years (for loans Rs. 7.5 lac & above)

0.25% below SBAR i.e. 11.50% p.a.

Up to 3 years (for loans below Rs. 7.5 lac)

At SBAR i.e. 11.75% p.a.

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

At SBAR i.e. 11.75% p.a.

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

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

Used Vehicles

NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE.

Tenure

Rate of Interest

Up to 3 years

3.00% above SBAR i.e. 14.75% p.a.

Above 3 yrs up to 7 yrs

3.25% above SBAR i.e. 15.00% p.a.

75

76

CHAPTER-5
FINDINGS & OBSERVATION

77

OBSERVATION & FINDINGS

From this project it is found that SBI advance product

having the 1st 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.

78

 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.

79

Government employees are more concern than private

employees for advance product.

REASON S FOR HIGHLY USE OF SBI ADVANCE

PRODUCT:

LESS PAPER WORK

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

80

81

CHAPTER-6
CONCLUSION & SUGGESION

82

CONCLUSION

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

83

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.

SUGGESTION

84

Customer awareness programmed is required so that

more people should attract towards Advance product.

if there is 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 requiring.

SBI customer care should more concern about the

fastest settlement of customers 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.

85

 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.

Suggestions given by the consumers at the

time of survey:

There is more time period for repayment of education

loan.
(Namrata Das)

86

 Education loan should be providing to private college

also which is not under AICTE or Any kind of University.
(Pinky BAL)

SBI should take steps to solve customer problems

immediately.
(Gopinath Mahapatra)

Agents should be trained well educated & proper

trained to convince the people about Different advance
product.
(P.Anish Nath)

Loan sanction date should be according to customer

convenient.
(Joytirmaya Behera)

A customer awareness programme should be taking

place in rural area.

BIBLIOGRAPHY

Text Books:
87

Solomon, Michael R. (2002), Consumer Behavior: Buying,

Having, and 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

88

Questionnaire

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 (_____________)

89

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?
______________________________________________________________________________
__
______________________________________________________________________________
__

90

______________________________________________________________________________
__
_____________________________________________________.

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) Less paper work

b) Attractive interest rate
c) Transparency

91

d) Simple & fast processing

e) Flexibility to choose an EMI base loan or an overdraft
f) Longer tenure lone for ease of repayment
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.
______________________________________________________________________________
__
______________________________________________________________________________
__
______________________________________________________________________________
__
___________________________________________________________.

92

93

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