Content

CONTENTS PARTICULARS Pg.

No.
 Certificate of the

organization
 Certificate of project guide
 Acknowledgement
 Executive summary 1-3
CHAPTER -1 INTRODUCTION 4-7
CHAPTER -2 ORGANISATIONAL 8-31

PROFILE
CHAPTER-3 RESEARCH STUDY OF 32-59

MAIN TOPIC
CHAPTER -4 ANALYSIS AND FINDINGS 60-70
CHAPTER -5 CONCLUSION AND 71-75

SUGGESTIONS
CHAPTER -6 BIBLOGRAPHY 76-77
CHAPTER -7 ANNEXTURE 78-81

0
Executive Summary

 Bank of India is offering all the modern and essential facilities to

the customers of the car loan.
 The other banks , which offers car loan , as a separate product is
SBI, Bank of Baroda ,Oriental Bank of Commerce, UCO Bank,
Dena Bank, Indian Bank, ABN AMRO Bank, HDFC.

Rate of interest offered by respective banks are:

 Bank of India - 8.75 %– 10%

 Bank of Baroda - 10.50%
 HDFC - 11.30%
 UCO Bank - 11.50%
 OBC - 10.25% -10.75%
 SBI - 8% - 11.25%
 ABN AMRO Bank - 15%
 Dena Bank - 10.75% -11.00%

(These Rates may vary from time to time)

 Bank of India, SBI, HDFC, Dena Bank, UCO Bank and Indian
Bank provides car loan in easy way.
 Maximum amount of loan provide by different banks for car
loan.
 Bank of India - For Individuals: 24 times of monthly gross salary
or Rs25 lakhs whichever is lower.

Higher amount of loan may also be considered in deserving cases.

1
For Business concern: Rs100lakh or Rs1crore

 SBI - Rs15lakh.
 UCO Bank - Rs7.50lakh or 85%
 Dena Bank - Rs 8lakh
 ABN AMRO Bank - Rs 20lakh
 Bank of India is providing maximum amount of loan among public
sector banks.

 Processing fees of different banks for car loans

 Bank of India - 1.10% or Rs1000

 UCO Bank - 1% or Rs1000
 HDFC Bank - Rs2150 – Rs5000
 Dena bank - Rs 1000
 SBI - 0.50%
 ABN AMRO Bank - Rs1000
 Bank of Baroda - Rs1000 or 0.25%
 ICICI Bank - Rs2500 – Rs5000

 Bank of India first among the nationalized bank to establish

a fully computerized branches & A.T.M facility.
 Bank of India is also providing Internet banking facility to
their customers.
 All branches of Bank of India are C.B.S & R.T.G.S/NEFT
enabled.

2
Vehicle
Loan

3
Chapter – 1

Introduction

4
Objective Of The Study

 TO STUDY THE CAR LOAN PROVIDED BY BANK OF INDIA TO

THEIR CUSTOMERS.

 TO STUDY THE DETAILED PROCEDURE INVOLVED IN THE

SANCTIONING OF CAR LOAN.

 TO STUDY THE AWARENESS OF THE CAR LOAN AMONG THE

CUSTOMER

 MAKE A COMPARATIVE STUDY OF BANK OF INDIA CAR

LOAN WITH OTHER COMPETITIVE BANKS

 TO STUDY THE RULES AND DOCUMENTS REQUIRED BY

BANK OF INDIA FOR CAR LOAN

5
1.2 METHODOLOGY

1.2.1 RESEARCH METHODOLOGY

Research methodology is a methodology for collecting all sorts of

information & data pertaining to the subject in question. The objective is
to examine all the issues involved & conduct situational analysis. The
methodology includes the overall research design, sampling procedure &
fieldwork done & finally the analysis procedure. The methodology used
in the study consistent of sample survey using both primary & secondary
data. The primary data has been collected with the help of questionnaire
as well as personal observation, books, magazine, journals have been
referred for secondary data. The questionnaire has been drafted &
presented by the researcher himself.

 Sample Size:

Sample of 100 people was taken into study, and was collected.

 Sampling Techniques:

To study the project, a Simple Random Sampling technique is used.

 Data Collection:

Collection of data is done by Secondary Data & through

 Questionnaire

i.e., Primary data was collected through Questionnaire.

6
1.2.2 DATA COLLECTION APPROACH

Research methodology is a methodology for collecting all sorts of

information & data pertaining to the subject in question. The objective is
to examine all the issues involved & conduct situational analysis. The
methodology includes the overall research design, sampling procedure
&fieldwork done & finally the analysis procedure. The methodology used
in the study consistent of sample survey using both primary & secondary
data. The primary data has been collected with the help of questionnaire
as well as personal observation, books, magazine, journals have been
referred for secondary data. The questionnaire has been drafted &
presented by the researcher himself.

7
 CHAPTER - 2

ORGANISATION
AL STRUCTURE

8
 INTRODUCTION

HISTORY OF BANK OF INDIA

Bank of India was founded on 7 th September, 1906 by a group of eminent

businessman from Mumbai. The bank was under private ownership &
control till July 1969 when it was nationalized along with 13 other banks.

Beginning with one office in Mumbai, with a paid up capital of

Rs50lakhs & 50 employees, the bank has made a rapid growth over the
years & blossomed into a mightly institution with a strong national
presence & sizable international operations. In business volume, the
bank occupies a premier position among the nationalized banks.

The bank has 3101 branches in India spread over all states/union
territories including 141 specialized branches. These branches are
controlled through 48 zonal offices. There are 29 branches/offices
(including 3 representative offices) abroad. The bank came out with the
maiden public issue in 1997 & follow on qualified institution placement
in February 2008. Total number of shareholders as on 30/09/2009 is
215790.

While firmly adhering to a policy of prudence & caution, the bank has
been in the forefront of introducing various innovative services &
systems. Business has been conducted with the successful blend of
traditional values & ethics & the most modern infrastructure. The bank
has been the 1st among the nationalized banks to establish a fully
computerized branches & A.T.M facility at Mumbai was back in 1989.
The bank is also a founder member of SWIFT in India. It pioneered the
code system in 1982, for evaluating/rating its credit portfolio.

9
The bank association with the capital market goes back to 1921. When it
entered into an agreement with the Bombay stock exchange (B.S.E) to
manage the B.S.E clearing house. It is an association that has blossomed
into a joint venture with B.S.E, called the B.O.I shareholding L.T.D to the
stock broking community, Bank of India was the 1 st Indian bank to open
a branch outside the country at London, in 1946, & also the 1 st to open a
branch in Europe, Paris in 1974. The bank has sizable presence abroad,
with a network of 29 branches (including 5 representative offices) at key
banking & financial centre VIZ London, New York, Paris, Tokyo, Hong
Kong, & Singapore. The international business accounts 17.82% of
bank’s total business.

10
Miles Stones:

1906: Group of Eminent Businessmen Establishes the Bank.

1946: Opening of London Branch:- 1 st Indian Bank to open a Branch

Overseas.

1950: Opening of Tokyo Branch:- 1 st Indian Bank to open a Branch in

Japan.

1969: Nationalization along with 13 others Banks – Branch Network:

Indian: 207 & Foreign: 12.

1989: Established BOI Shareholding Ltd – A JV with Bombay Stock

Exchange (BSE) TO manage Clearing House of BSE.

1997: Launched maiden IPO – Govt. Shareholding diluted to 76.53%.

2003: Ranked as India’s Most Trusted Services Brand Consecutively for

3 years by AC Nielsen ORG – MARG.

2004: Ranked 25th Among India’s Top 200 Companies by D&B.

2007: Surpassed Landmark of INR 10bn in Net Profits.

2008: Surpassed Landmark of INR 20bn in Net Profits.

2009: Surpassed Landmark of INR 30bn in Net Profits.

11
Quality Policy Of Bank Of India
We at Bank of India, are committed to become the bank of choice by
providing

 SUPERIOR

 PROACTIVE

 INNOVATIVE

 STATE OF THE ART

Banking services with an attitude of care & concern for the customers &
patrons.

Vision of Bank of India

“To become the bank of choice for corporate medium business & Up
market retail, customers & to provide cost effective developmental
banking for small business, mass market & rural market”.

MISSION OF BANK OF INDIA

“To provide superior, proactive banking service to niche market, globally

while providing cost effective, responsive services, to others in our role
as a development bank, & in so doing, meet the requirements of our
stakeholders”.

12
AWARDS ACHIEVED BY BOI

 Bank of India wins dun & Bradstreet award for the best public
sector bank category 2017. The award for the most efficient public
sector banks conferred by Dalal Street.

 Best performance in western zone under the rural employment

generation program.

 Bank has been rated by the Economic times/The Nielsen company

survey as “the most trusted brand”(MTB) 2009 as follows-

 Under the PSU Banking Category – 2nd next to S.B.I.

 Under top service brands – 8th.
 The Debuntant – 1st time in top 100.

 NDTV Profit Business Leadership Awards 2009 – Best PSU

Bank.

 CIO green information technology award.

 FE-EY most efficient Public Sector Bank Awards 2009, Best

Bank under Banking Category.

 2nd Rank for Excellent Performance in Lending to Medium

Enterprises also, ’Best Performing Bank’ for covering
maximum number of Micro & Small accounts under
collateral Free Lending Scheme of CGT MSE.

DETAIL BUSINESS OVERVIEW

Business: domestic business of the bank increased to Rs 3,31779crore as

on march31, 2017 registering an absolute accretion of Rs 56,938crore
and a growth of 21%. Including the business of foreign branches at
London, Paris, New York, Tokyo, Singapore, Hon Kong,

13
The bank’s global business amounted to Rs4,01,079cr

Total Business(Amt Rs.cr.)

14
SHARE HOLDING PATTERN

(%) As on June 31, 2017

15
 RESOURCE MOBILISATION

Total deposits of the bank amounted to Rs 2,29762cr as on march

30,2017 showing an absolute accretion of Rs 40,054cr.and a growth of
21% over previous year. The share of low cost deposits (current and
savings) in total domestic deposits stood at 31.75%.

Total Deposit (Amt Rs. Cr)

(As on 31st March 17)

16
 TOTAL ADVANCES IN INDIA

In recent years the advances segment grow very quickly. These loans are
provided by bank on very easy terms and condition with less paper work
which attract people to borrow money to fulfill their requirements. The
following figures show the amazing growth in advances sectors.

YEARS 2007 2008 2009 2017

TOTAL 86791 114793 144732 171317
ADVANCES

17
 SUBSIDIARIES INFORMATION ABOUT SUBSIDIARIES,
JOINT VENTURES & ASSOCIATES

BOI SHAREHOLDING LTD.

Bank’s association with Bombay stock exchange LTD. (B.S.E) spans over
a period of more than 8 decades with the clearing & settlement functions
of the Bombay stock exchange LTD.(B.S.E) handled by the bank. Later
on 1989, bank setup B.O.I shareholding LTD., as a joint venture with
B.S.E to manage the clearing house activities of the exchange. The
company is carrying out the demat rolling settlement on T+2 basis of the
exchange through the national securities depository services L.T.D
(NSDL) & Central depository services (India) L.T.D (CDSL) efficiently &
also the settlement of G - secs through an integrated computerized
system.

With a view to optimizing use of its trained manpower & sophisticated

I.T infrastructure, besides handling settlement related work of the
exchange, the company also extends depository services to member
brokers of the stock exchange & the retail investors. During 2004-05 the
company commenced new business activity i.e franking of stamp
documents, which has proved to be highly lucrative & has been
contributing significantly to the revenues of the company, with the
corporatization of the stock exchange, Mumbai & its transformation in to
a corporate entity Viz the Bombay stock exchange L.T.D. During the
year, the clearing & settlement function of B.O.I shareholding L.T.D are
likely to get transferred to a clearing corporation in future.

B.O.I.S.L earned a net profit of Rs309.25lakh during 2005-06 as against

Rs152.13lakh earned during F.Y 2005-06 & final dividend of 45% taking
total dividend for F.Y2005-06 to 60% as against 25% dividend paid
during the F.Y2004-05.
18
B.O.I Mutual Fund

Associates Companies

1. Star Union Dai-Ichi Life Insurance Co. L.T.D

2. Securities Trading Corporation of India L.T.D

Securities Trading Corporation of India L.T.D (STCI)

Securities trading corporation of India L.T.D (STCI) is one of the

primary dealers in the country enjoying the highest credit rating of P1+
by Crisil & A1+ by ICRA for short term debt instruments. The bank is the
single largest stake holders of STCI with 29.95% stake in its equity.

The year 2004 – 05 witnessed a sudden & swift hardency of interest

rates & narrowing down on margin in trading & glit securities as such all
major PDS including STCI incurred losses from operations. For the 1 st
time in its history, the company incurred a loss of Rs97cr during F.Y-
2004-05 with diversification plan & strategies, the company made a
quick turn around & earned a net profit of Rs24cr during the F.Y-2005-
06. During the year STCI also successfully bid for acquiring the U.T.I
securities L.T.D from the specified undertaking of the unit trust of India
with this acquisition STCI hopes to mark its presence in the field of
equity trading, portfolio mgt. services, commodity trading, depository
services etc.

19
STAR UNION DAI-ICHI LIFE INSURANCE CO L.T.D

Bank of India & Union bank of India two leading public sector bank in
India, & the Dai-Ichi mutual life insurance company a leading Japanese
company in the life insurance market, have floated a joint venture
company, star union Dai-Ichi life insurance co. L.T.D, for undertaking
life insurance business in India.

The company, has been incorporated/registered with the registrar of

companies, Maharashtra on 25th September, 2007 & will be a Mumbai
based company. The company application for license is under IRDA’S
consideration. The company is well advanced in preparation for setting
up office, putting up the team & other infrastructure.

The joint venture agreement, among others envisages, a capital stake of

51% by BOI, 26% by Dai-Ichi-life & 23% by union bank. The joint
venture company would have initial paid-up capital of Rs250.00cr.

The joint venture company with the strength of the domestic partners in
the Indian financial, sector coupled with the Dai-Ichi-life’s strong
domain expertise is expected, to be a strong player in the Indian life
insurance market in a short time, the company aims to develop various
products to serve all strata of the society.

Bank of India & Union bank of India have a strong nationwide network
of more than 5000 offices, which shall provide a sound distribution
channel with a wide reach which is the key to the success of an which is
the key to the success of an insurance venture. More then 48 million
strong banking customer base of the 2 banks provides ready scope of
cross selling of insurance products. The 2 banks have strong brand
equity and command high level of trust among their customers & people
at large. Additionally the regional rural banks sponsored by the 2 banks

20
have more than 1400 branches to tap life insurance business in the rural
areas.

Dai-Ichi- life is a leading player in the life insurance segments in Japan &
is one of the top 10 life insurers in the world & the second largest life
insurance company in Japan. Established in 1902, it has more than a
venture of experience in life Insurance business. It has sound product
knowledge, share asset mgt. skills & strong operational capabilities to
manage life insurance the best insurance JV partner on the domain side.

Star union Dai-Ichi-life insurance company L.T.D is also committed to

providing partners are in the presence of insurance to rural &
weaker/social sectors. Both the domestic partners are in the process of
implementing GOVT OF INDIA initiative of financial inclusion & their
pan India network, of branches gives the company a natural edge in
catering to these sectors effectively. With the strong brand &
commitment of the partners, star union Dai-Ichi- life insurance company
L.T.D, promises to be a new stair on the horizon of the India life
insurance scene, promising value to all stake holders.

21
Services provided by Bank of India

Personal Banking

Bank of India “Basic Savings bank” Account

These accounts are designed to help the individuals (personal

customers) to inculcate the habit of saving money and to meet their
future requirement of money. The amounts can be deposited/ withdrawn
from these accounts by way of Cheques/withdrawal slips/ATMS. It help
the customers to keep minimum cash at home besides earning interests.

Savings bank Accounts are very popular. These accounts can be opened
by eligible person/s and certain organization/agencies (as approved by
the Reserve Bank of India (RBI).

As required by law, while opening this account, we will satisfy ourselves

about the identity including verification of address of a person/s seeking
to open an account; to assist in protecting the prospective customers,
member of the public and ourselves, against fraud and other misuses of
the banking systems.

2. Star Diamond Saving Account.

3. Star Sunidhi Tax- Saving Deposit Scheme

4. BOI Saving Plus Scheme

22
BOI “CURRENT ACCOUNT”

1. Bank of India Current Deposit Plus.

2. Super Current Deposit plus Account.
3. Star diamond & Star Diamond plus Current Account.

Individuals, Partnership Firms, Private & Public LTD Companies,

HUFs/Specified Associates, Societies, Trusts, can open Current
Accounts etc.

BOI Term Deposits Schemes

 Double Benefit Deposit

 Fixed Deposit Receipt
 Short Deposit Receipt
 Quarterly Income Certificate
 Monthly Income Certificate
 Recurring Deposit

BOI Retail Credit Scheme

 Star Auto Fin Scheme

 Star Educational Loan
 Star Holiday Loan
 Star Home Loan Scheme
 Star I.P.O
 Star Mortgage Loan
 Star Mortgage Loan (For Farmers Arthias & Dealers of
Agricultural Inputs )
 Star Personal Loan
 Star Pensioner Loan
 Star Mitra Personal Loan (A Physically Challenged)
 Star Women Gold Loan Scheme
 Bank of India – Pensioners Credit Card
 Scheme for extending Loan facility against pledge of gold coins)
Ornaments.

Small & Medium Enterprise & O.P.S

 Laghu Udyog Suvidha Scheme(SLUSS).

 Credit Guarantee Fund Trust Scheme Micro & Small Enterprises.
23
  Bank of India – Swarojgar Credit Card (BOI–SCC)
 BOI Star Channel Credit
 Scheme for financial assistance to distributors & super stockist of
medicines.
 Financial assistance for setting up Akshay Urja Shops.
 Loan for Tax Return Prepares (T.R.P).
 Retail Credit.
 BOI – Artisans Credit Card (ACC).
 Star Dhanvantri Suvidha Scheme.
BOI Online Service
 Mobile Banking & Payment.
 Internet Banking.
 Pay Bills.
 Book Air Ticket.
 Book Rail Ticket.
 Online ASBA IPO.
 Direct Tax.
 Central Excises, Services Tax.
 Online Trading in Shares.
 Star e – Remit.
 2FA/ Start Token.
 Online Internet Bank Fund Transfer.
 Locker Facilities.
 Gold Business.
 Bank of India Rupee Travellers cheques.

BOI Credit Cards

 India Card.
 Taj Premium Card.
 Visa Electron Debit Card.
 Gold International Credit Card.

My Place

Women

Financial Independence for women is now within easy reach with

support of BOI.

24
Bank of India provides the independent women of today a spectrum of
financial facilities. The facilities provided by the bank, exclusively to
women for their Empowerment are as under:-

 Star Women Gold Scheme.

Besides the above schemes for women, the following additional

facilities provided to women entrepreneurs.

Priority Sector Scheme-

a) Credit assistance to women entrepreneurs in tiny & SSI sector.

b) Credit assistance to women beneficiaries in other priority sector
schemes.
c) Credit facilities to women entrepreneurs under various Govt.
sponsored schemes like
 Prime Minister’s Rozgar Yojana(PMRY)
 Swarnjayanti Gram Swarozgar Yojna(SGSY)
 Swarnjayanti Shahari Rozgar Yojna (SJSRY)
 Scheme for Liberation & Rehabilitation of Scavengers(SLRS)
 Interest Concession in respect of loan to women beneficiary.

25
Priority Sector Credit:

Particulars As on 31st As on 31st Growth in Growth in

March March Amount Percentage
2009 2017

Agriculture 16,284 18,256 1,972 12.11%

Small 17,941 25,810 7,869 43.86%
Enterprises
Housing 5,921 6,343 390 29.11%
Education 1,326 1,716 422 7.12%
Total Priority 41,472 52,125 10,653 25.68%
Sector

Farmers

Bank of India harnesses continued support to the agrarian society by

providing adequate financial facilities to farmers for meeting short-term
working capital requirements.

1. BOI Shatabdi Krishi Vikas Card.

2. Star Bhoomiheen Kisan Card (Star - BKC)
3. Bank of India –(Samanya Credit Card)
4. Kisan Credit Card.
5. Kisan Samadhan Card.

26
Agricultural Credit Schemes
 Farm Mechanization.
 Minor Irrigation.
 Dairy Development.
 Scheme for financing Commodities held in the form of warehouse
Receipts.
 National Crop Insurance Scheme (India).
 Land Development.
 KVIC’S Margin Money Scheme
 Scheme of Financial Assistance for Setting up Kisan Sewa Kendras.

Senior Citizens

 Senior Citizens Scheme

Bank of India has introduced special loan schemes for senior citizens
with low interest rates such as personal loan scheme for ”Pensioners”
to meet their immediate requirements such as Medical Expenses. The
scheme helps in realizing the vision of serving people for a better
quality of life.

“Depositor” means an individual-

 Who has attained the age of 60 years or above on the date of

opening of an account under the provisions of these rules, and by
whom, or on whose behalf, money is deposited in an account under
these rules.

A depositor may open the account in individual capacity or jointly

with spouse.

27
Professionals

Bank of India extends needful assistance for working capital

requirements to self-employed professionals. This is aimed to enhance
professional strengths in terms of business purposes.

NRI

NRI Accounts

 NRI Account
Non – Resident Indians can open accounts under this scheme.
The account should be opened by the Non-Resident account
holder himself and not by the holder of power of attorneys in
India.
Description
NRE accounts can be opened by remittances from abroad in any
convertible currency or from transfer of funds from existing
NRE/FCNR accounts held by any person with any Bank in
India. These accounts can be opened at all branches of Bank of
India.

Accounts can also be opened during temporary visits of NRIs

to India against tender of foreign currency traveler cheques/ notes
and coins.

The remittances received in foreign currency for opening of NRE

accounts will be converted into Indian rupees at the prevailing

exchange rates. These accounts can be maintained under

Savings/Current and Term depositing schemes.

 FCNR Account

28
 Non-Resident Indians can open accounts under this scheme. The
account should be opened by the non-resident account holder and
not by the holder of power of attorney in India.

These deposits can be maintained in 5 designated currencies i.e.

U.S. Dollar (USD), Pound Sterling (GBP) and Euro, Australian
Dollar (AUD) & Canadian Dollar (CAD).

These accounts can only be opened with funds remitted from

abroad in convertible foreign currency through normal banking
channels, which are of repatriable nature in terms of general or
special permission granted by Reserve Bank of India.

These accounts can be maintained with our branches, which are

authorized for handling foreign exchange business. (List of
branches authorized for handling foreign exchange business).

Funds for opening accounts under the BOI Global Foreign

Currency Deposit Scheme or for credit to such accounts should be
received from –

 Remittance from outside India or

 Traveler cheques/currency Notes tendered on visits to India.
International Postal Orders cannot be accepted for opening or
credit to FCNR accounts.
 Transfer of funds from existing NRE/FCNR accounts.
If remittance is received in any currency other than USD, GBP,
EURO, AUD & CAD, it will be converted into one of the designated
currencies of remitter’s choice at the risk & cost of the depositor.

Special FD Scheme

Regular Interest every month or quarter

29
Features:

 Depending upon your choice, the scheme offers regular income to

you by the way of payments of interest on monthly or quarterly
basis.
 Interest is credited regularly. However, the original amount of
fixed deposit remains intact and paid at the time of maturity.
 Minimum deposit of Rs 10000/- or any higher amount is accepted
under the scheme for any period from 12 months to 120 months.
 Facility of automatic renewal of deposit on maturity is available.

CHAPTER - 3

RESEARCH STUDY
OF MAIN TOPIC

30
31
CAR LOAN SCHEME

A person wants certain luxuries for enjoying his life and a car is one of
them, a car gives him convenience to travel one place to another. Now a
days it become a status symbol in society. So it becomes a need of every
human being but some people does not have the capacity to pay a huge
amount at a time but they can pay the price in installment so for these
people many banks offer car loans schemes. In which they can buy car
and pay its price in installment. Almost everyone make easier to
purchase a car.

 Now days car is become one of the basic need of man but buying a
own car become a dream for man because of its prices.
 So in fulfillment of this dream man, needs help. In this condition
Bank of India take a Initiative to provide easy car loan to those
people who are willing to buy a own car.
 People are appreciating car loan scheme of Bank of India and this
can be proof by figures which show that the total amount of car
loan scheme is increase in 2007-2017 amazingly.
Star Auto Fin Loan

2007 2008 2009 2017

AMOUNT 425 586 877 1218

GROWTH 20% 37.88% 22.6% 38.88%

 The car loan amount increases from 877cr. in 2009 to 1218 cr. in
2017 which accounts a growth of 38.88%.
 So Bank of India helps people to get car & increase in social status.
 It Provide loan for all types of Cars i.e. A, B, C segment.

TYPE OF CAR FINANCED

32
  Bank of India provide all type of car loans which comes under the
purview of Bank guidelines, term & conditions and the credit limit
which is 24 times of the monthly net salary or Rs 25lakh,
whichever is lower, in
case of individuals.

 For corporate Rs 100lakh after presenting required documents.

Corporate include self employed, Partnership firm, Private Ltd,
Public Ltd etc.

 For Non-Resident-Indian Rs 25lakh.

 For Imported Vehicle Rs75lakh.

Some Car Companies

 Maruti Suzuki- Alto, Wagon-R, Swift, Zen, Van,

Gypsy,Sx4, Eco
 Hyundai- Accent, I-20, I-10
 Honda- Civic, Honda City
 Mahindra- Logan, Scorpio
 Tata- Safari, Indigo, Sumo
 GM – Spark, Cruise, Beat, Magnum

33
THE TOTAL GROWTH IN AUTO LOAN SEGMENT FOR LAST
THREE YEARS:-

YEAR 2008 2009 2017

Car Loan 37.88% 22.6% 38.8%
Growth%

34
 COMPARITIVE ANALYSIS AMONG DIFFERENT BANKS FOR
CAR LOANS

Private Rate of Max Loan Loan Processing Prepayment

banks Interest Amount Tenure Fees CHARGES
ICICI 13% 90% 1-5yrs Rs2500- 1.5%
Bank 5000
HDFC 11.30% 90% 1-7yrs Rs2150- N.A
Bank Rs3650
ABN 15% Rs20lakh N.A Rs1000 5%
AMRO
Bank
PSBs
SBI 8%- Rs15lakh 1-7yrs 0.50% 2%
11.25%
Bank of 8.75%- Rs25lakh 1-6yrs 1.10% or NIL
India 10.00% Rs1000
DENA 10.75%- Rs 8lakh 1-5yrs Rs1000 NIL
Bank 11.00%
UCO 11.50% 85% Or 1-5yrs 1%or Rs1000 0.5%
Bank Rs7.50Lakh
Indian 11.00%- Rs 15Lakh 1-5yrs 0.30% NIL
Bank 11.25%
O.B.C 10.25- Rs10Lakh 1-7yrs 0.50 NIL
10.75%

Car Finance

EMI Calculator

35
Own a vehicle with the friendliest and most convenient car loan. Either
you can

purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles
that are not older than 3 years. Finance will also be provided for
purchase of vehicle of indigenous/ foreign makes.

Eligibility

Individual as well as Business Concerns (Corporate or non-corporate)

Amount of Loan

For Individual: 24 times of the monthly net salary or Rs25lakh,

whichever is lower income of spouse can be taken into account for
determining loan amount. In such cases, the spouse shall stand as a
guarantor.

For Business Concerns: Loan amount to Rs100Lakh. Processing is

nominal.

For N.R.I: Loan amount to Rs25lakh.

For Imported Vehicles: Loan amount to Rs75lakh.

Margin

Up to Rs 2.00lakh – 5%

Rs2lakh to Rs10lakh – 10%

Above Rs10lakh to Rs25lakh – 15%

Above Rs25lakh – 25%

Security

36
The vehicle purchased with the amount of loan is to be hypothecated to
the Bank. It will be registered in the name of the borrower jointly with
the Bank. Guarantee of spouse, if employed or third party guarantee is
acceptable to the bank.

Rate of Interest

Rate of Interest (For loans granted on & after 1.04.2009) BPLR at

12.00%

TENURE Rate of Interest @ percent p.a.

For Loans Repayable in/upto

Less than 3years BPLR minus 1.00% i.e.11.00%
Above 3 years BPLR minus 1.50% i.e.11.50%

Repayment

For new Car/Van/Jeep: The loan amount together with interest is to be

repaid in 72 Equated Monthly Installments (EMIs)

For old Car/Van/Jeep: The loan amount together with interest is to be

repaid maximum in 36 Equated Monthly Installments (EMIs)

For Imported Vehicles: The loan amount together with interest is to be

repaid maximum in 84 Equated Monthly Installments (EMIs)

Disbursement

The intending borrower will be required to settle the transaction for

purchase of vehicle needed by him/her with the seller and will be
required to deposit the difference of the cost of the vehicle to amount of
loan will be required to deposit the difference of the cost of the vehicle to
amount of loan, and thereafter, the advance will be allowed to him/her

37
from the bank by paying the entire price of the vehicle to the seller
directly on behalf of the borrower.

Profit

Interest earned on the loan is its profit.

Auto Loans

The bank offers auto loans at fixed interest rate as well as floating rates
also for financing automobile and used car purchases.

Commercial Vehicles and Construction Equipment Finance

The Banks provides secured financing for commercial vehicles and

providing working capital, bank guarantees and trade advances to
customers who are transportation operators. In addition to the funding
of domestic assets, it also finances imported assets for which the bank
opens foreign letters of credit and offers treasury services.

Personal Loans

Unsecured personal loans are offered at fixed rates to specific customer,

including salaried individuals and self-employed professionals.

Loans against Securities

Loans are offered against equity securities, mutual fund units and
against bonds issued by the RBI.

AUTO LOANS: PRODUCT OVERVIEW

38
Auto loans are the installments loan for the purchase of new and used
vehicle to be used for personal business or commercial purpose. The
auto loan programmer is a retail asset product and can be availed by the
individuals, sole proprietors, partnership firms, NRI, private and public
limited companies, who satisfies the credit worthiness of the applicant,
approve and disburse the loan and also mark a lien on the vehicle as a
security The lien on the vehicle has to be a first lien. Listed below are
some of the key product features:

Product------------- New and Used Car

Standard product ------------------ EMI in advance, EMI in arrears

Minimum loan -------------------- Rs10000

Tenure ----------------------------- 12-72 months

Eligible borrower --------------------- Salaried individuals, Self employed,

Sole Proprietorship, Partnership firms, NRI, Private and Public
Companies.

Equated monthly installment (EMI) ------------- The amount paid by the

customers each month towards repayment of loan extended to him. EMI
comprises of both principal and interest components.

Loan to value LTV/ Extent of funding------------ The ratio of the

maximum amount of loan to the value / cost of the car varies with the
vehicle make, model and tenure.

Loan type ------------------------- Term loan with hypothecation marked

in favor of BOI bank.

Security / Collateral ----------------- Asset financed will be hypothecated /

lien marked in favors of BOI bank.

39
System and Process ------------- Decentralize approval and disbursal with
all loan being booked fineness/ as per process set out time to time.

Banking ------------------ PDC’s stored and banked centrally, SI /ECS will

also happen centrally.

Credit approval process ------------------- Credit policy will lay down the
borrower eligibility criteria/approval process / deviation policy as
approved by the central risk unit. Approval authorities may be delegated
to bank employees/ bank associates including outsourcing agencies.
Operations and collection policy will be circulated separately.

Collection ------------------- In-house and agency based collection

through Tele calling and field collection for soft buckets. Appointment of
external agency for chronic and serious defaulters and repossessions

Interest rates ----------------- As per approved rates from time to time

Type of car ----------------------------- As per list of cars approved by the

bank, please refer to various product and LTV matrix/ chart.

Use of vehicle --------------------------- Vehicle firmament should be

personal, official, commercial use.

Approved location -------------------------- Generally Bank of India prefers

to give loan to those customers who are residing near to the bank. As it
feel easy to contact the customers and for communication also. However
in some exceptional cases the bank can loans to those customers who are
not residing near bank.

CAR LOANS

FEATURES

40
 Finance all passenger cars & most of the multi – utility cars.
 The tenure range is 12 – 72 months.
 Competitive rates.
 24 – 48 hours to process the loan after we receive complete set
documents.
 Loan up to 90% of the invoice value.
 Prepay the loan anytime without any prepayment charge.
 Easy documentation.
 Processing charges waived for senior citizens, staff members &
retired employees of the bank & pensioner drawing pension from
the bank.

41
 DOCUMENTS REQUIRED:-

Documentation Salaried Self employed Partnerships Private Ltd Public Ltd

Requirements Individual Individual Firms Company
Company

Application Yes Yes Yes Yes Yes

Form

Income Last 3 Last 3 Years ITR Last 3 Years Last 3 Years Last 3 Years
Documents Years ITR & Audited ITR & Audited Audited B/S Audited
(last 3 years) or Form accounts Accounts & P&L A/C
B/S & P&L
no.16
A/C

Bank Yes Yes Yes Yes Yes

Statement
(Last 12
months)

Proof of Yes Yes Yes Yes Yes

Identity

Proof of Yes Yes Yes Yes Yes

Residence

Proof of Office Yes Yes Yes Yes Yes

Address

Legal A Letter Signed MOA or MOA & AOA

Documents by all the AOA
Partners
accepting the
Loan

OTHERS DOCUMENTS:-

1. CHA -2.
42
 2. OD -194 (Guarantee Deed)
3. L-515 as per Br. Cir. No. 94/186.
4. L-515 as per Br. Cir. No. 97/114
(Where CBD -13 obtained)
5. Comprehensive Insurance Policy.
6. Letter addressed to Insurance Company.
7. Transfer form in blank in duplicate.
8. Registration of bank charge on the vehicle with regional transport
authority.
9. Valuation certificate for Second hand vehicle from approved
valuer.
10. Undertaking to inform change in constitution/address etc.
11. A letter of authority by the borrower to debit the loan/SB A/C with
Intt./
Service charges/Insurance Premium.
12. Where guarantor’s vehicle is taken as collateral security, obtain
another CHA – 2 with modification.

ELIGIBILITY CRITERIA:-

For Salaried Individual, Self-employed Individuals, Partnership Firms, Public and Private Limited
Companies

Borrower Age Residence/Office Income Telephone CPV

Type Requirement

43
Salaried 21 at Residence should be Minimum Applicant CPV should
Individual beginning owned by the applicant or should
rented for >1 years. Income of own Be done at
To 60 at Landline Residence
the end of Rs1.5lakh. and office of
Phone at
the residence applicant
tenure. and at and co-
office. applicant.

Self 21 at Residence/office/Factory Minimum Applicant CPV should

Employed beginning should be done at
Proprietor- to 65 at / workshop should be Income of own residence
ship the end of owned by the applicant or Landline and office of
rented for at least 2years Rs0.60lac.
the Phone at applicant
tenure residence and co-
and at applicant.
office.

Partner- NA Office/Factory/Workshop Minimum Landline CPV should

ship phone at be done at
Should be owned by the Income of office. office and
firm or main partner or main
rented for at least 2years Rs0.60lakh.
partner’s
residence.

Pvt. Ltd NA Office/Factory/Workshop Minimum Landline CPV should

Co./ Public Income of phone at be done at
Ltd Co. Should be owned by the Rs0.60lac. office. office and
Co. or director or rented main
director’s
For at least 2 years residence.

FEES and CHARGES:-

Description of Charges New Car Loans

Cheque bouncing charges Rs 100
Stamp Duty At actual
Late Payment Penalty More than 2% per month

44
Processing Fees 1.10% or Rs1000
Other Charges -

USED CAR LOANS

Used car loans are installment loans for the purchase of used vehicle to
be used for personal, business or commercial purposes. The used car
loan Programmes is a retail asset product & can be availed by the
Individuals, Sole Proprietor, Partnership Firms, Pensioner, Farmers,
Public & Private companies who satisfy the credit parameters set out in
this manual. The bank would assess the credit worthiness of the
applicant, approve and disburse the loan and also mark a lien on the
vehicle as a security. The lien on the vehicle has to be a first lien. Listed
below are some the key product features:

Features:-

 Choose any car manufactured in India within a certain range.

 Borrow up to 70% of the value of the car.
 Flexible repayment options, ranging from 12 to 36 months.
 Borrow up to 2times your annual salary(for salaried
professionals)
And 2times your annual income (for self employed
professionals)
 Available for almost all car models at attractive interest rates.
 Repay with easy EMI’s.
 If you have had a Preferred Account or a Corporate Salary
Account
With Bank of India for than six months, you can get fast
approvals on your loans with minimal documentation.

45
46
 DOCUMENTS REQUIRED:-

Documentation Salaried Self Partnerships Private Public Ltd

Requirements Individual employed Firms Ltd Company
Individual Company

Application Form Yes Yes Yes Yes Yes

Income Documents Last 3 Years Last 3 Years Last 3 Years ITR & Last 3 Last 3
(last 3 years) ITR or ITR & Audited Accounts Years Years
Form no.16 Audited Audited
Audited
accounts B/S &
P&L A/C B/S &
P&L A/C

Bank Statement (Last Yes Yes Yes Yes Yes

12 months)

Proof of Identity Yes Yes Yes Yes Yes

Proof of Residence Yes Yes Yes Yes Yes

Proof of Office Yes Yes Yes Yes Yes

Address

Legal Documents A Letter Signed by MOA & MOA &

all the Partners AOA AOA
accepting the Loan

ELIGIBILITY CRITERIA:-

47
For Salaried Individuals, Self-employed Individuals, Partnership Firms, Public and Private Limited
companies.

Criteria Salaried Self employed Partnership Company

firm

Age 21-60 years at 21-65 at the NA NA

the end of the end of the
tenure tenure

No. of years in Minimum 1 Minimum 1 NA NA

current year. year.
residence

Min. of years At least 3years At least 3years At least 3years At least 3 years
in/ of total in Business. in Existence. in Existence.
Employment/ employment

Business

Min. income Gross income Last year & Last year & Last year &
for cars of Rs1.5lakh. latest year latest year latest year
must be must be must be
profitable. profitable. profitable.

Telephone Must be at Must be at One phone at At least 1

residence & at residence & at least in phone must be
office. office. Business & one at business.
at residence of
loan Executing
partner.

PRICING:-

 Highly competitive.

48
  1.10% processing fee payable up front (Pl contact local sales
manager for revised applicable rates).
 Customers can pre-pay the entire loan amount before the agreed
tenure.

Fees and Charges:-

Description of Charges New Car Loans

Cheque bouncing charges Rs 100
Stamp Duty At actual
Late Payment Penalty More than 2% per month
Processing Fees 1.10%
Other Charges -
Valuation charges Used Cars Rs2000 per case

Staff Vehicle Loan

Bank of India also provide car loan to their employees this loan is only
meant for the staff members of bank at attractive rate of interest with
longer repayment payment period. This loan is different from star auto
fin loan.

49
Details of Staff Vehicle Loan:-

 Maximum amount = Rs360000

 Minimum Amount = Rs80000
 Margin = 10%
 Maximum repayment period = 15years
 Rate of Interest:-
 Up to Rs80000 at 8%pa.
 Above Rs80000 to Rs360000 at 12%pa.

50
CAR LOANS-THE PROCESS

The process can be broadly shown as follows-

Customer

DSA/DEALER/OTHER

CHANNEL

Sell Scheme, with applicable

LTV for relevant model

NO

Check STOP
Eligibility

Check
Authorit Cluster Head
51
y
 Case to be entered
in LTS (Loan
Tracking System)
Product ”Four
Deviation Wheeler”
Yes Approval

Within Approval Authority

Asset Staff to follow up

for

Update LTS

 Conduct Telephonic Verification

 Collect Preapproval documents
 Fill out Approval Card
 Soft Approval by BM/Cluster Head
 Communicate Soft Approval to
Customer(Optional)

52
Customer to submit Fax Application Form Shoot CPV at
agreement & S.I to CPA for Dedupe CPV Agency
letter check

CPA/Credit staff to
Conduct Dedupe + Co- Communicate
ordinate for CPV Report REJECT to Branch

 CPA/Credit Staff to communicate status to

Branch.
 BM to sign Approval Card & send complete
file to Assets office.
 CAR Sales Staff to arrange delivery/
disbursement & inform branch when
distributed.

53
Branch to enter in LTS under new
Product ”CAR Direct Approvals”

END

54
CALCULATION OF EMI
Case1 Normal case (when there is no advance EMI)
Loan amount 200000
Tenure (months) 24
Interest rate (Account 10%
IRR)
EMI 9,229
Advance EMI -
Month EMI Principal Interest Outstanding Cash flow
200000 -200000
1 9,229 7,562.33 1,666.66 192,437.66 9229
2 9,229 7,625.35 1,603.64 184,812.31 9229
3 9,229 7,688.89 1,540.10 177,123.41 9229
4 9,229 7,752.97 1,476.02 169,370.44 9229
5 9,229 7,817.58 1,411.42 161,552.86 9229
6 9,229 7,882.72 1,346.27 153,670.13 9229
7 9,229 7,948.41 1,280.58 145,721.72 9229
8 9,229 8,014.65 1,214.34 137,707.07 9229
9 9,229 8,081.44 1,147.55 129,625.63 9229
10 9,229 8,148.78 1,080.21 121,476.84 9229
11 9,229 8,216.69 1,012.30 113,260.15 9229
12 9,229 8,285.16 943.83 104,974.98 9229
13 9,229 8,354.20 874.79 96620.77 9229
14 9,229 8,423.82 805.17 88196.95 9229
15 9,229 8,494.02 734.97 79702.92 9229
16 9,229 8,564.80 664.19 71138.11 9229
17 9,229 8,636.18 592.81 62501.93 9229
18 9,229 8,708.15 520.84 53793.78 9229
19 9,229 8,780.71 448.28 45013.06 9229
20 9,229 8,853.89 375.10 36159.17 9229
21 9,229 8,927.67 301.32 27231.49 9229

55
22 9,229 9,002.07 226.92 18229.42 9229
23 9,229 9,077.08 151.91 9152.34 9229
24 9,229 9,152.73 76.26 -0.38 9229
Comparison of car loan scheme offered by other bank with Bank of India
Almost every bank offers car loans. I had compared the entire car loan
scheme offered by HDFC Bank, ABN AMRO Bank, State Bank of India,
Oriental Bank of Commerce and Bank of India and the details of the
findings are as follows.

HDFC Bank:

 HDFC Bank offered car loan scheme with following features:-

 HDFC Bank Provide car loan individuals as well as business
concerns also.
 The rate of interest charged by HDFC Banks is as follows:-
 In case New Car :- 11.30%
 HDFC Bank Provide finance up to 90% of the total loan amount.
 HDFC Bank Provide facility to repay the loan amount maximum in
7years.
 HDFC charge processing fees of Rs2150 – Rs3650.

56
ABN AMRO Bank:

 ABN AMRO Bank provide car loan to individual as well as Business

concern also.
 The rate of interest charged by ABN AMRO Bank is as follows: In
Case of New Car-15%.
 ABN AMRO Bank Provide finance up to Rs20Lakh.
 ABN AMRO Bank charge 5% prepayment charge if the loan is paid
before the tenure of the loan.

STATE BANK OF INDIA:

State Bank of India offers car loan scheme with following features.

 State Bank of India provide loan to individual as well as Business

concern also.
 State bank of India provide loan which is repayable maximum up
to 7years for new car & In case of old car it is 3years.
 State Bank of India charge a prepayment charge of 2% in case loan
is paid before the tenure of the loan.
 State Bank of India Provide a loan amount of Rs15lakh.
 The rate of interest charged by State Bank of India is as follows:
In case of new car
1st year - 8%
For 2nd & 3rd year – 10%
For 4th & 5th year - 11.25%
For 6th & 7th year – 11.50%
In case of old car
Up to 3years – 14.25%
Above 3 years – 15.00%

ORIENTAL BANK OF COMMERCE

 Oriental Bank of commerce Provide car loan to individuals as well

as business concerns also.
 Oriental Bank of commerce provide loan up to 84months.
 Oriental Bank of commerce charge interest rate as follows:-
In case of new car
57
 Up to 3years => 10.25%pa
Above 3years => 10.75%pa
In case of old car
Up to 3years => 13.25%
Above 3years => 13.75%
 Oriental Bank of Commerce finances up to Rs10lakh.

Comparison of different bank’s car loan schemes it gives result that

Bank of India provides best car loan scheme because it provide loan
up to Rs25lakhs for individual & for corporate it can finance up to
Rs100lakh at very low interest rate. Like up to 3years it charge only
8.75% & beyond 3years it charge interest of 9.25% per annum. Like
when a people wants to financed his car worth Rs7Lakh & want to
repay this amount in 3years then SBI (8%) & BOI (8.75%) charge
lowest interest rates. But when a person wants to repay his loan in
more than 3years then Bank of India is best because it charge only
9.25% interest rate on the other hand if a person wants to finance a
car worth of more than Rs7lakhs then again only Bank of India offers
him lowest rate of interest which is 9.50% pa Up to 3years & after
3years it charge only 10.00% interest rate per annum. Moreover it
provide maximum amount of loan 25lakhs among all public sector
banks. So only Bank of India offers the best car loan scheme which
suits almost every one & make easier to purchase a car.

CHAPTER – 4

ANALYSIS AND
FINDINGS

58
59
ANALYSIS

OPPORTUNITIES

As car loan is a profitable lending option due to continued good

performance of the services sector, the bank will continue to focus on
this segment. The bank will continue to study the market requirements,
evolve innovative and diversified products to reach the customers in
every nook and corner of the country.

For better decision support system,business intelligence, management

information system and decision making. The bank is in final stage of
rolling out data warehouse.

RISK AND CONCERNS

Libralisation opens up various opportunities and at the same time it also

increase exposure to risks. Risk management, therefore, is paramount.
Since risks have a direct and proportional relation with returns, the bank
has to clearly envisage its risks which can be managed effectively.
Further risks management system need to be brought to such a level of
sophistication that the systems on their own generate adequate capital
and liquidity cushions against economic and market distruptions.

60
 GRAPHICAL REPRESENTATION OF DATA

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

() No of People

Bank of India 30%

SBI 45%
ICICI Bank 8%
HDFC Bank 6%
Other Banks 11%
TOTAL No. OF PEOPLE 100

It has been observed that approximately 30% correspondents are using

the services of Bank of India for their daily transaction. Around 45% of
People are using SBI for their daily transaction. Around 8% of people are
using ICICI Bank for their transaction and only 6% & 11% of people are
using HDFC & other Bank service respectively in Mayur Vihar Phase-1.
Q2. Are you aware of Products & services provided by BOI.

61
a) Yes 70%
b) NO 30%

From the above data it is clear that most of the customers (Around 70%)
of Mayur Vihar have the idea about the product & services of Bank of
India.

62
Q3. If yes are you aware of the advance products (Loan segments) of
BOI.

a) YES 68%
b) NO 32%

It is clear that most of the people have the idea about the advance
product of Bank of India. Almost all the 68% people who have the idea
about the advance products are the user of Bank of India products &
services.

63
Q4. Which bank you prefer for taking loans

a) BOI 51%
b) SBI 35%
c) ICICI Bank 3%
d) HDFC Bank 2%
e) Other Banks 9%

According to my sample size 51% of people prefer Bank of India for loan
product, but some people prefer SBI, ICICI, HDFC & Other banks for
loan because they are working with the bank & it is easier for them to pay
the interest because it is less as compared to other bank because they are
the employees of that bank.

64
Q5. If you prefer Bank of India for taking loan than what influence you to
take loan from Bank of India

Most of the people said that they prefer Bank of India for taking loan
because of the transparency & the lowest interest rate for any kind of
loan product and it is easy to get loan from Bank of India as compared to
other banks because less paper work is required & simple & fast
processing is required.

65
Q6. Which loan product of BOI you have used.
a) Home Loan 43% (32)
b) Education Loan 19% (14)
c) Car Loan 21% (16)
d) Personal Loan 9% (7)
e) Other Loans 8% (6)
TOTAL NO. OF PEOPLE 75

From the sample size 75% of people are using the BOI loan
product. From the 75 people 43% of people took home loan from
BOI. 19% of people took education loan for their children, 21% of
people took car loan from BOI. 9% of people took personal loan.

66
Q7. What do you feel about the services providing by Bank of India in
advance product.

a) Bad 0%
b) Satisfactory 25%
c) Good 55%
d) Excellent 20%
TOTAL NO. OF PEOPLE 100

From this it is clear that the service provide by BOI in its advance
product is good in between the customer. All of them satisfy with the
product provide by Bank of India. 55% of people said that the service
provide by BOI is good & 20% said it is excellent & 25% of people said
that it is satisfactory.

67
Q8.Which features you like most in loan segment of BOI.
a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Longer repayment period

Most of the people like the attractive interest rate & transparency. It’s
easier of people to repay the whole loan amount with low interest rates &
longer repayment period.

68
FINDINGS
 Bank of India is applying aggressive marketing strategy for car
loan.
 SBI is a major competitor of Bank of India.
 Bank of India is having Tie –up with various Automobile
companies eg. (Tata Motors, Maruti, Hyundai Motors)
 Bank of India is trying to Tie-up with some other Automobile
Companies.
 Bank of India is offering various facilities to customers for taking
loan.
 Bank of India is trying to find better relationship with local dealers
to increase to the customer database.
 Bank of India is using proper market channel to aware customer
about car loan.
 Bank of India is advertising their car loan by using print media
also.
 Bank of India also tries to make new Tie- ups with other
Automobile Companies (These Tie- ups arrangement changes from
time to time).

69
 CHAPTER -5

CONCLUSION AND
SUGGESTIONS

70
CONCLUSION

There are various type of car loans are being provided by Bank of India
ranging from short – term to long- term to packing and like. But as
studies throughout the project, lending process is not so simple. It
involve a long series of steps and planning as suited to and decided by
the bank itself, of course, abiding by the rules and regulations of Bank of
India and RBI.

 It Provide easy car loan access if all required documents are

prepared.
 It charge minimum processing fees moreover processing charges
are waived for senior citizens, staff members & retired employees
of the bank & pensioners drawing pension from the bank.
 It fulfills the dreams of the people having a car.
 Somewhere it Contribute in Indian economy by releasing the
liquidity in terms of loans.
 Better and timely quality of services and product diversification.
 Highest loan amount in comparison of other banks.
 It provide car loan at lowest rate of interest in comparison to other
banks.
Negative Points
 The bank take long processing time, during the time customer
may dilute his plan of taking loan.
 Communication gap to approach right kind of people
 No long term customer relationship.
 List of defaulters
 Bank of India is not providing services like refinance &overdraft

RECOMMENDATIONS
 Bank of India should go for advertise car loan availability.
 Try to maintain very good relationship with car dealers.
 Bank of India is having a large number of existing customers so
they should convert their strength in opportunity.
 Try to aware customer about car loan availability & procedure that
how to apply for loan.
71
 More promotional schemes should be followed, for example if a
customer is paying his EMI regularly, he can be given some gift or
some concession in interest rate that would be an incentive for
others also to pay regularly.
 By making randomly surveys it should identify prospective buyers.
 By declaring special loan scheme on festive seasons i.e. loan mela.
 Facility to access loan from anywhere i.e. nearest to your resident,
office, working place.
 Properly and timely solution of customer complaints.
 Bank of India should also provide extra facilities like Refinance &
Overdraft facilities which help in making new & retain existing
customers & win the trust of the people.
 Bank of India should go for advertise car loan availability by using
different media like T.V, Newspaper, Radio, Print media etc. in
order to make more people aware of the car loan scheme.

72
APPENDICSES:-

Q. Who can avail car loan?

A. Individuals and Business Concerns.

Q. Whether finance is also available for used cars?

A. Finance is also available for purchase of Used Cars not older than 3
years.

Q. How much loan can be availed under the scheme?

A. For individuals, loan amount shall be 24 times the net monthly

Salary/Income, subject to maximum of 70% of the cost of the vehicle
whichever is less. In case of business concerns, loan amount can be up to
Rs100lakh or Rs1crore.

Q. Whether the income of the spouse is also taken into account for
determining the amount of loan?

A. Yes, income of the spouse can also be taken into account for
determining the amount of loan. In such cases, the spouse shall stand as
a guarantor.

Q. What will be the repayment period?

A. Amount of loan together with interest shall be repayable in 72 equal

monthly installments. However, for old car, loan together with interest is
to Repaid maximum in 36 equal monthly Installment.

Q. How much loan can be availed for Indian Make & Foreign Make
Vehicle?

A. Bank of India Provide car loan for Indian Vehicle as well as for
Foreign Make Vehicle. Bank Provide maximum amount of Rs25lakh for
Indian make vehicle & Rs75lakh for Foreign Make Vehicle.
73
Q. Whether interest applicable is flat rate or at reducing balance?

A. Interest is charged on reducing balance.

Q. What formalities are to be completed for availing the facility?

A. The following documents are required to be submitted:

1. Performa Invoice of Car to be purchased

2. Proof of residence
3. Proof of Income
4. Detail of Guarantor

LIMITATIONS

 Due to Shortage of Bank Staff it is difficult to collect data

from Bank employees. As they have lot of workload due to
which Bank employees does not want to give information
as they feel it is wastage of time.

CHAPTER – 6

BIBLOGRAPHY

74
75
BIBLIOGRAPHY

 E-CIRCULER OF BANK OF INDIA.

 WWW.BANK OF INDIA.COM.
 WWW.GOOGLE.COM.
 WWW.MONEYMARKET.COM
 NEWSPAPERS & MAGZINES.
 BOI ANNUAL REPORT.

76
CHAPTER – 7

ANNEXTURE

77
Questionnaire

Name- ____________________________________

Occupation- ______________________________

Contact Detail- ___________________________

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

a) BOI
b) SBI
c) HDFC
d) ICICI
e) Other Bank, Specify (_____________)

Q2. Are you aware of products & services provided by BOI.

a) YES
b) NO

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

a) YES
b) NO

Q4. Which bank you prefer for taking loans

a) BOI
b) SBI
c) HDFC
d) ICICI bank
e) Other Bank, Specify (___________)

Q5. If you prefer BOI for taking loan than what influence you to take loan
from SBI

78
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
_____.

Q6. Which loan product of BOI you have used.

a) Home Loan
b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans, Specify (____________)

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

a) Bad
b) Satisfactory
c) Good
d) Excellent

Q8. Which feature you like most in loan segments of BOI.

a) Less paper work

b) Attractive interest rate
c) Transparency
d) Simple & fast processing

Q9. Any suggestion you want to give for the betterment of BOI advance
product.

__________________________________________________
__________________________________________________
__________________________________________________
79
__________________________________________________
_________________________________.

80