Professional Documents
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This report explains the concept of Economic Value Added that is gaining
popularity in India, found by the Stern & Stewart co. which can be used by
bankers to measure the financial performance of their bank.
Indian Banking has seen many changes in the last decade like imposition
of prudential standards, greater competition among banks, entry of new private
banks, etc. This paradigm shift in the Indian banking sector can be seen in terms
of two dimensions: One relates to operational aspect especially performance and
risk-management system and the second dimension relates to structural and
external environment or exogenous aspects. Is evaluating Indian bank’s
performance a rather straight forward issue? The answer is no. One might say
that like a corporate, even banks can be judged from the behavior of their stock
prices. However, as bank stocks have not been very active on exchanges, barring
few on few occasions, should we conclude that Indian banks have by and large
failed to add values to their shareholders’ wealth. The answer is once again no as
one needs to evaluate private and public sector banks in a more dynamic manner
than just looking at their stock prices, non- performing assets (NPAs), C/D ratios
and others. Some may also argue that the general slowdown in lending by banks
and their eternal problem of recovery of non –performing assets (NPAs) has led
to the sufferings of Indian banks.
Many Indian banks are discovering that the key to their long-term growth
does not lie in products and services alone but in assets that can never be
replicated, that is, their unique relationship with customers, employees,
suppliers and distributors, investors and the communities they serve. One of
the most fateful errors bankers usually commit relates to their belief that
merely reducing NPAs and thereby maximizing profit would solve “the problem
of banking industry” Not only is this belief still held by most of the bankers
in India - and therefore professionally unacquainted by the changing profile
of their shareholders and the capital market- it is held by virtually large number
of myopic captains of the industry. That things are not going as well as they
ought to be going for such banks could be due to economic recession,
poor demand for credit, rising manpower costs, political uncertainty,
inefficient ways of doing business. Or is it something else?
This report aims to compare the public and private sector banks with
respect to retail loans.
To study the varoius norms followed by bank with respect to retail loans.
To study that which bank is more better for home loan from consumer
view point.
To study that which bank is more better for car loan from consumer view
point.
To study that which bank is more better for personal loan from consumer
view point.
Sciences define research as “ the manipulation of things, concepts or symbols for the purpose
of generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in practice of an art.”
Research is thus, an original contribution to the existing stock of knowledge marketing for its
advancement, the purpose of research is to discover answers to the questions through the
application of scientific procedure.
My research project has a specified framework for collecting the data in an effective
manner. Such framework is called “Research Design”. The research process which was
followed by me consisted following steps.
It is said, “A problem well defined is half solved”. The step is to define the project under
study and deciding the research objective.
The second stage of research calls for developing the efficient plan for gathering the needed
information. Designing a research plan calls for decision on the data sources, research
approach, research instruments, sampling plan and contacts methods.
The research is descriptive in nature and is aimed at comparative study of retail loans.
The design of the research would be Quantitative and Descriptive in nature. Quantitative
research is done in order to get the data into figurative terms for analysis and calculation and
descriptive research is done with the vague thought that the data collected will be interesting .
sampling design used in descriptive research is probability sampling design(convenient
sampling).
Data Sources:
a) Primary data.
b) Secondary data.
My major emphasis was on gathering the primary data. Direct collection of data from the
source of information, including personal interviewing, survey, Internet,etc.
Research Approach:
Research approach means how to reach to respondent to get the information.it is used to get
primary data. There are four types of research approaches:
1) Observational approach
2) Survey approach
3) Experimentation
4) Focused group approach.
Survey approach are best suited for descriptive Research. Surveys are undertaken to learn
about people’s knowledge, perceptions, beliefs, preferences, satisfactions and so on and to
measure these magnitudes in the general public. Therefore I have done primary research
using survey for it.
Research instrument:
A close & open ended questionnaire was constructed for my survey. A Questionnaire
consisting of a set of questions was presented to respondents for their answers.
Sampling Plan:
The sampling plan calls for three decisions.
Generally large sample gives more reliable results than small samples. The research
consisted sample size of 100 respondents.
There are two sampling procedure i.e Probability Sampling and Non probability
sampling method. The sampling procedure used in this research is Non probability
convenience sampling method.
• Contact Methods:
Once the sampling plan has been determined, the question is how the subject should be
contracted i.e. by telephone, mail or personal interview. Here in this survey, I have used
personal interview as a contact method.
Secondary Data is the data which are already existing or are collected before.
Secondary data was collected from the internet. Official bank websites.
Primary data is collected from 100 customers, Personal interview was the method used
for collecting the primary data .
Framing of Questionnaire:
Questions were prepared keeping focused of objectives of the study. We have taken
care while preparing questionnaire so as to avoid biased response and wrong
interpretation.
I have used Dichotomous questions, Multiple choice questions and Rating questions
in the questionnaire.
Presentation of findings:
This is the last and important step in the research process. The findings are presented in
the form of graphs, pie charts, conclusions, suggestions and recommendations after data
analysis.
Limitation of study:
The possibility of respondent’s responses being biased cannot be ruled out.
Most of the times people don’t give appropriate information.
The survey was to be conducted in a limited span of time 10 days which also posed a
limiting factor.
The sample size taken for survey is too small i.e 100.
BANKING INDUSTRY
Phase I
The General Bank of India was set up in the year 1786. Next came
Bank of Hindustan and Bengal Bank. The East India Company
established Bank of Bengal (1809), Bank of Bombay (1840) and Bank
of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of
India was established which started as private shareholders banks,
mostly Europeans shareholders.
During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were
approximately 1100 banks, mostly small. To streamline the
functioning and activities of commercial banks, the Government of
India came up with The Banking Companies Act, 1949 which was
later changed to Banking Regulation Act 1949 as per amending Act of
1965 (Act No. 23 of 1965). Reserve Bank of India was vested with
extensive powers for the supervision of banking in india as the
Central Banking Authority.
Phase II
Phase III
This phase has introduced many more products and facilities in the
banking sector in its reforms measure. In 1991, under the
chairmanship of M Narasimham, a committee was set up by his name
which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations.
Efforts are being put to give a satisfactory service to customers.
Phone banking and net banking is introduced. The entire system
became more convenient and swift. Time is given more importance
than money.
CLASSIFICATION OF BANKS
Public sector banks are those banks that are owned by the government. The
government owns these banks. In India 20 banks were nationalized in 1969 and
1980 respectively. Social welfare is there main objective.
These banks are those banks that are owned and run by private sector. An
individual has control over these banks in proportion to the shares of the banks
held by him.
3. CO-OPERATIVE BANKS
These are those banks that are jointly run by a group of individuals. Each
individual has an equal share in these banks. Its shareholders manage the affairs
of the bank.
According to the Law
1. SCHEDULED BANK
Schedule banks are the banks, which are included in the second schedule of
the banking regulation act 1965. According to this schedule bank:
NON-SCHEDULED BANKS
Non -schedule banks are the banks, which are not included in the second
schedule of the banking regulation act 1965. It means they do not satisfy the
conditions lay down by that schedule. These are the banks having paid up
capital, less than Rs.5Lakhs. They are further classified as follows:-
According to Function
COMMERCIAL BANKS
These are the banks that do banking business to earn profit. These banks make
loans for short to business and in the process create money. Credit creation is
the main function of these banks.
FOREIGN BANKS
These are those banks that are incorporated by foreign company. They have
set up their branches in India. These banks have their head offices in foreign
INDUSTRIAL BANKS
Industrial banks are those banks that offer long term and medium term loan to
the industries and also work for their development. These banks help industries
in sale of their shares, debentures and bonds. They give loan to the industries for
the purchase of land and machinery.
AGRICULTURAL BANKS
Agricultural banks are those banks that give credit to agricultural sector of
the economy.
SAVING BANKS
The principle function of these banks is to collect small savings across the
country and put them to the productive use. In India department of post office
functions a savings banks.
CENTRAL BANK
Central Bank is the apex bank of the banking system of the country. It issues
currency notes and acts a banker's bank. Economic stability is the principle
function of this bank. In short, it regulates and controls the banking system of
the country. RBI is the Central Bank of India.
INDUSTRY ANALYSIS
(2)
Potential Entrants is
high as development
financial institutions as
well as private and
foreign banks have
(5) (1)
entered in a big way. (4)
Home loan
Public Sector Banks
FEATURES
Eligibility:
Minimum age: 18 years as on the date of sanction
Maximum age: 70 years. i.e. the age by which the
loan should be fully repaid, subject to availability of
sufficient, regular and continuous source of income for
servicing the loan repayment.
Security: Equitable mortgage of the property.
Margin/ LTV Ratio:
REPAYMENT:
Products:
Processing Fee:
Loan Amount Processing
Fee
DOCUMENTS
Margin:
Monthly Purpose Marg
income in
Upto Purchase of plot 20%
Rs.20000/-
House/flat already 25%
constructed from own
resources
All other cases 20%
Above Purchase of plot 20%
Rs.20,000/-
House/flat already 20%
constructed from own
resources
All other cases 15%
Interest Rates:
Fixed Rate
Not Available
option
Above Rs.
Repayment Up to Rs. 30 30 Lacs and 75 Lacs and
Period Lacs below Rs. above
75 Lacs
Processing fees:
Bank of India
Eligibility:
Salaried employees, Professionals , Self-employed
persons. Requests are also considered in special cases
from Group of individuals, NRIs, PIOs, HUF, Prop. Firm,
Partnership firms and corporate.
To purchase/construct house/flat
To renovate/extend/repair existing house/flat.
To purchase a plot of land for construction of house.
To acquire household articles along with the house/flat-
for furnishing the house/flat.
Purpose:
Quantum of Loan:
For construction/purchase of a house/flat-Rs.300lacs
.Repairs/renovation/extension/addition to house/flat -
Rs.20 lacs.
Purchase of a plot - Rs.30 lacs .
Purchase/acquire household articles for furnishing the
house/flat - Rs.1.00 lac. (15% of Home Loan amount)
Rate of Interest:
Security:
Equitable Mortgage (1st charge) on land/flat/house.
Third Party guarantee(if mortgage could not be created
at the time of disbursement ).
Bank of India
Eligibility:
Purpose:
• To purchase/construct house/flat
• To renovate/extend/repair existing house/flat.
• To purchase a plot of land for construction of house.
• To acquire household articles along with the house/flat-
for furnishing the house/flat.
Quantum of Loan:
• For loans upto Rs.30 lacs One time @ 0.55% of loan amount
min. Rs. 3000/- and max. Rs.10000/-
• For Loan over Rs.30 Lacs upto Rs.50 lacs – One time flat
Rs.15,000/-
• For Loan over Rs.50 Lacs upto Rs.1.00 crore – One time flat
Rs.20,000/-
• Loans over Rs.1.00 crore – One time flat Rs.25,000/-
• Loans over Rs.3.00 crores – One time flat Rs.50,000/-
Margin :
Prepayment charges :
ii) 0.65% p.a. on the outstanding loan amount for remaining maturity
of the loan, subject to max.2.25% of outstanding loan amount in case
of take over by other bank/FI.
Security:
Eligibility
Home Loans can be availed by Resident Indian whether
Salaried or Self-Employed and also by Non- Resident
Indian who are Salaried. For resident Indians the
following are the eligibility norms:
Loan Amount
The home loan amount depends on repayment
capability and is restricted to a maximum of 80% of the
cost of the property or the cost of construction as
applicable. A number of factors are taken into account
when assessing your repayment capacity. Repayment
capacity takes into consideration factors such as
income, age, qualifications, number of dependants,
spouse's income, assets, liabilities, stability, continuity
of occupation and savings history.
Charges for
changing from
1.75% on principal outstanding
fixed to floating
rates of interest
Charges for
changing from
1.75% on principal outstanding
floating to fixed
rates of interest
Cheque Swap
Rs. 500/-
Charges
Document
Rs. 500/-
Retrieval Charges
Cheque bounce
Rs. 200/-
charges
Duplicate No
Objection
Rs.100 (Inclusive of S.T.)
Certificate / No
Due Certificate
Revalidation of No
Objection Rs.100 per NOC (Inclusive of S.T.)*
Certificate
Provisional Income
Nil
Tax Certificate
Interest Certificate NA
No Objection
Certificate / No Nil
Due Certificate
Note : Service Tax and other taxes, levies, etc.
applicable as per prevailing rate will be charged over
and above these charges
Fees
0.5% of the loan amount applied plus
applicable service taxes and cess.
No Charges for
Replacement of cheques
Income Tax Certificates
Accelerated Repayment Option
Documents
Application
Security Application form Application form
form with
Security with
for the photograph
loan with photograph
is a first mortgage of the
photograph
property to be financed, normally by way of
Identity of
deposit andtitle deeds and/or such other
Identity and Identity and
Residencesecurity as may be necessary.
collateral
Residence Proof Residence Proof
Proof security may be required, if the
Interim
property is under construction.
Education
Education
Qualifications
Qualifications
Latest Certificate and
Certificate and
Salary-slip Proof of
Proof of business
business
existence
existence
Last 3 years
Income Tax
Form 16 Business profile
returns (self and
business)
Last 3 years
Income Tax
Last 6 returns (self and
Last 3 years
months business)
Profit /Loss and
bank
Balance Sheet Last 3 years
statements
Profit /Loss and
Balance Sheet
Last 6 months
Last 6 months bank statements
Processing bank statements (self and
fee cheque business)
Eligibility
A) Salaried Individuals
Any individual who is in permanent service in Government or rep
The applicant in all the cases should be above 24 years of age at
commencement and up to the age of
60 Years or superannuation, whichever is earlier at the time of lo
B) Professionals
Professionals (ie, doctors, engineers, dentists, architects, charter
accountants, company secretary,
management consultants only) can apply
The applicant should be above 24 years of age at the time of loa
65 years or less
at the time of loan maturity
C) Self Employed Individuals
Any individual filing Income Tax returns can apply
The applicant in all the cases should be above 24 years of age at
commencement and up to 65 years or less
at the time of loan maturity
Documentation
Documents Required
The following documents are required along with your loan applic
Loan Amount
Limits on home loan
Minimum - Rs 1 lac
Maximum - Rs 50 lacs
Margin
20% in case of Home loans
25% in case of improvement or renovation loans
Interest Rates:
Other Charges:
Sr. Type
No
Repayment
Repayment period for home loans shall not exceed 25 years.
Repayment period of pre-allotment bookings of housing loans sha
Repayment period of improvement or renovation or extension of
exceed 10 years.
Security
Equitable mortgage of the property to be financed by way of depo
Disbursement
The loan will be disbursed in full or in suitable installments, taking
requirement of funds and progress of construction, as assessed b
or builder or local development authority or supplier of materials
Processing charges or admission fee
Processing fee equivalent to 1% of the loan amount (applied for)
the application form (taxes as applicable).
Penalty for early closure
Nil.
Other Conditions
Bank reserves the right to reject any application without assignin
The applicant will undertake to inform the Bank as and when ther
employment
The terms and conditions mentioned above and elsewhere under
modification from time to time solely at Bank's discretion.
Car loan
SL. PARAMETER
DETAILS
No SCHEME
All New Car Loans to Public of loan
1 Applicable to
amount less than 5 lacs
2 Interest Rate At present the following limited period
offer will apply till 31st March 2011:
For Term Loan:
For Overdraft:
Eligibility
To avail an SBI Car Loan, you should be :
Loan Amount
Maximum Loan amount will be 2.5 times of net annual income. Spouse’s
income could also be considered provided the spouse becomes a co-
borrower in the loan.
Loan amount below Rs. 5 lacs will cover under the scheme
Documents Required
You would need to submit the following documents along with the
completed application form:
Margin
15% of the on the road price (which includes vehicle registration charges,
insurance, one-time road tax and accessories).
Repayment
You can enjoy the longest repayment period in the industry with us as
long as 84 months.
Processing Fee
Security
The Scheme :
SBI provide the best car loan scheme for you for high end car with loan
amount Rs 5 lacs and above.
For Overdraft:
Eligibility
Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan
amount of 4 times the net annual income can be sanctioned. Spouse’s
income could also be considered provided the spouse becomes a co-
borrower in the loan.
Documents Required
You would need to submit the following documents along with the
completed application form:
Margin
15% of the on the road price (which includes vehicle registration charges,
insurance, one-time road tax and accessories).
Repayment
You can enjoy the longest repayment period in the industry with us as
long as 84 months.
Processing Fee
Security
Lowest EMI;
Features:
• More Benefits:
Low processing fee.
• Interest Rates:
Processing fees:
Car Loan
The Scheme provides loan for purchasing 2/4 wheeler vehicles (like car,
scooter, motorcycle etc.). Maximum amount of loan is Rs. 25 lacs,
depending upon cost of vehicle & income of proponent, at attractive rate
of interest and easy repayment plan.
• Loan on the Strength of Your Income: Submit income proofs as required and
avail finance up to 90% of the ex-showroom price of the car.*
• Car Loans with Fixed Interest Rates: ICICI Bank offers new car loans with
fixed rate option only.
With ICICI Bank Car Loans, you can avail of car loans as per your needs.
Particulars
Salaried Self-Employed Private / Public
Partnership Firm
Individual Individual Ltd Co
Age The applicant Any proprietor, - Limited
Criteria* should be above 25 partner, companies
years old at the time professional or should have
of application, and director above 28 been in
upto 58 years of ageyears but below 65 existence for at
at the time of years at the time of least 3 years.
maturity of the loan. the loan maturity.
Income Gross annual Gross annual Firm should Minimum PAT
Criteria* income of at least income of at least have a (profit after tax)
Rs. 2.50 lakhs. Rs. 2.00 lakhs. minimum PAT of Rs. 2.00
(profit after tax) lakhs.
of Rs. 2.00
lakhs.
Stability The total Business stability Business Business
employment stability should be more stability should stability should
should be more thanthan 3 years. be more than 3 be more than 3
2 years and current years. years.
employment stability
of minimum 1 year.
* Conditions apply
The minimum loan amount for taking a new car loan is Rs. 1,00,000. The maximum
loan amount will depend upon the price of the car, model variant, profile of the
customer, etc.
New car
• We finance up to 90% of the ex-showroom price of the car.
• The Loan amount also depends on the car model. Higher loan amounts are
available under specific enhanced income eligibility criteria.
Service Charges
If you are looking for flexible schemes, quick processing of your loans, attractive
interest rates at the click of a mouse, then your search ends here. ICICI Bank Car
Loans is the Most Preferred Financier for car loans in the country and offers you all
the above with unbelievable ease.
Our car loan interest charges differ according to the car model, the tenure of the
loan, the customer and his location.
Note :
• Service Tax and other govt. taxes, levies, etc. applicable as per prevailing rate
may be charged over and above these charges at the discretion of ICICI Bank.
• The charges or fees given in above table are subject to change and the one
recorded in agreement will be binding over this site.
• Effective for loans availed from August 10th, 2009. For loans availed prior to
the said date, the cheque return charge is Rs 200.
Documentation
At ICICI Bank Car Loans, we offer the most convenient, flexible &
quick car loan at the click of a mouse. Keeping your convenience in mind, we ask
you for minimal mandatory documents for the sanctioning of your car loan.
Income proof:
Salaried individuals :
Latest Salary Slip and 2 years Form 16/ Income tax returns.
Self-Employed individuals:
Income Tax Returns of 2 previous financial years.
Other documents:
Partnership Firms: Partnership deed and Letter signed by all partners authorising
one partner to execute the required Car Loans documentation.
Our representative will help you with the formats of documents and the information
required.
ICICI Bank offers new car loans with fixed interest rate. In Fixed interest rate, the
interest rate on the car loan will remain fixed during the tenure of the loan.
Car Loans
• Repayment tenure ranges from 1 year to 5 years for new car loans.
• You may change the tenure of the loan before the loan is disbursed. The
interest rate & EMI would change accordingly.
• The repayment due dates for the loan are 1st and 15thof every month and
would depend on the date of disbursement. Payment due dates cannot be changed.
• You can make the Payments through post-dated cheques (PDCs)
• Repayment option through Direct Debit Mandates is also available for all ICICI
Bank account holders.
• Option of repaying through ECS is also available in select cities.
• Payments through cash or credit cards are not accepted.
• You may change the PDC's in case your Bank Account is changed . However,
we would require verification of signatures by new banker. A nominal fee of Rs.500/-
(Swap Charges) would be charged for exchange of cheques.
• A full pre-payment of the loan is accepted. Part pre-payment is not allowed.
If you are an HDFC Bankaccount holder, we have special rates for you.
If you are an existing HDFC Bank Car Loan customer with a clear
repayment of 12 months or more we can Top-Up your car loan to the
extent of the original loan value
Salaried Individuals
Eligibility Criteria:
Documents required:
Self Employed
Eligibility Criteria:
Documents required:
Partnership Firms
Eligibility Criteria:
Minimum Income: Net profit Rs. 60000 p.a for
standard cars and Rs.100000 p.a. for mid-sized
and premium cars
Minimum turnover: Turnover Rs. 4.5 lacs
Telephone: One phone at least at business and at
residence of the loan executing partner
Documents required:
Proof of Identity:- NA
Income Proof:- Audited balance sheet, Profit &
Loss Account for latest two years and the latest 2
years IT returns of the company
Address Proof:- Telephone Bill/Electricity Bill/Shop
& Establishment Act certificate/SSI registered
certificate/Sales Tax certificate
Bank Statement:- Waived for small cars, for mid -
sized and premium cars if income Is greater than
Rs 1.5 lacs then bank statement requirement can
be waived
Eligibility Criteria:
Documents required:
Proof of Identity:- NA
Income Proof:- Audited balance sheet, Profit &
Loss Account for latest two years and the latest 2
years IT returns of the company
Address Proof:- Telephone Bill/Electricity Bill/Shop
& Establishment Act certificate/SSI registered
certificate/Sales Tax certificate
Bank Statement:- NA
Documents required:
Proof of Identity:- NA
Income Proof:- Audited balance sheet, Profit &
Loss Account for latest two years
Address Proof:- Telephone Bill/Electricity Bill/Shop
& Establishment Act certificate/SSI registered
certificate/Sales Tax certificate
Bank Statement:- NA
Eligibility
Quick and easy car loans
Salaried Individuals
Documentation
Quick and easy car loans
The vehicle is hypothecated to Axis Bank and lien is marked in favor of Axis Bank on th
Invoice and Insurance Policy.
The lending rates vary on the basis of discounts which are offered by
manufacturers and dealers. Our Bank has a tie-up with all leading manufacturers
and authorized dealers. Our sales team would help you negotiate the best rate
on your loan.
You can repay the loan by depositing Post dated Cheques. If you are an Axis Bank acco
(standing instruction) of your savings account. ECS, Electronic Clearing Service debit m
which your bank account gets debited for the loan repayment on a specific date in a m
PERSONAL LOANS
The Scheme
Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for
domestic or foreign travel, medical treatment of self or a family member, meeting any
financial liability, such as marriage of son/daughter, defraying educational expenses of
wards, meeting margins for purchase of assets etc.)
Eligibility
You are eligible if you are a Salaried individual of good quality corporate, self employed
engineer, doctor, architect, chartered accountant, MBA with minimum 2 years
standing.
Salient Features
Loan Amount
Your personal loan limit would be determined by your income and repayment capacity.
Minimum : Rs.24,000/- in metro and urban centres
Rs.10,000/- in rural/semi-urban centres
Maximum : 12 times Net Monthly Income for salaried individuals and pensioners subject
to a ceiling of Rs.10 lacs in all centres
Documents Required
Important documents to be furnished while opening a Personal Loan Account:
Margin
We do not insist on any margin amount.
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish
to, without attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 2-3% of the loan amount. This is amongst the lowest fees in the
industry. Processing fees have to be paid upfront. There are no hidden costs or other
administrative charges.
Other Loans
Type of Facility Rate of Interest
Clean Overdraft 8.25% above Base Rate,
currently 16.50% p.a.
Personal Loans Scheme (SBI 8. 50% above Base Rate
Saral) floating, currently
16.75% p.a.
SBI Loan to Pensioners 4.75% above Base Rate,
currently 13.00% p.a.
SBI Loan to Affluent 4.75% above Base Rate,
Pensioners currently 13.00% p.a.
Festival Loan Scheme 6.75% above Base Rate,
currently 15.00% p.a.
Loan against Bank Time 1.00% over the rate paid
Deposits on Relative time deposit.
Xpress Credit
Type Facility Rate of
Interest
Demand Loan Check-off from Employer 5.00%
above Base
Rate
Floating,
currently
13.25% p.a
a. The agent is doing insurance business for the last -5- years
b. The agent has regular and stable income and maintaining SB a/c with
the bank for crediting commission cheques received from their
principals.
• Loan Amount :
Minimum : Rs. 20000 and
Maximum of Rs. 2,00,000 (Subject to condition)
• Repayment :
Up to 36 months (maximum) in Equated Monthly Installments.
No pre-payment charges. However, penalty of 2% on overdue amount
Loan for Earnest Money Deposit: 3.25% above Base Rate i.e. 12.75%
Personal Loan
Pensioners Loan
Rs.500/- Fixed
Rs.500/- Fixed
• Any other
personal
expenses of
bonafide nature
as approved by
the Bank
Max. Loan Min. Size Rs.2.00 lacs Rs.10.00 lacs
of loan Minimum size of loan
:-At Metro and Urban Minimum size of
Centres : Rs.10,000/- loan :-At Metro and
Urban Centres :
At Rural and Semi Rs.10,000/- At Rural
Urban centres: No and Semi Urban
minimum size of loan. centres: No minimum
size of loan.
Eligible Amount 10 times of net monthly 20 times of Gross
emoluments in case of monthly emoluments
salaried employees in case of salaried
OR employees
50% of gross annual OR
income as per last 100% of gross average
Income Tax Return for annual income as
Professionals/Individuals per last three Income
of high networth Tax Returns for
Professionals/
Individuals of high
networth
Rate of Interest 5.00% above Base Rate At 4.00% above Base
(On daily reducing 14.50% p.a at monthly Rate Min. 13.50% p.a.
balances) rests. Interest concession at monthly rests.
to women - 0.50% [All Interest concession to
w.e.f.03.02.2011 borrowers to be women] women - 0.50% [All
For Senior Citizens – borrowers to be
12.50% Financing women]
secured under tie-up
arrangement 13.50%
Repayment 36 Equated monthly Maximum 60 Equated
instalments w.e.f. one monthly instalments
month after first w.e.f. one month after
disbursement. first disbursement
Exceptional cases upto from loan account.
60 months
Security quitable/Legal Mortgage of commercial or
residential properties.
Hypothecation charge on assets acquired.
Eligibility
You can avail of an ICICI Bank Personal Loan if you have an ICICI Bank salary account and
if you meet the following criteria:
Criteria* Salaried
Years in current
1 Year
residence
• Prepayment of the loan is possible after 180 days of availing the loan.
• Prepayment charges as applicable would be levied on the outstanding loan.
• Part prepayment facility on the loan is not available.
Loan Processing Charges / Origination Upto 2% of loan amount plus Service Tax
Charges
The lower of the two amounts given below:
1) 5% of principal outstanding or
Prepayment Charges
2) Interest outstanding for the unexpired
period of the loan.
Duplicate No Objection Certificate/ No Due Rs. 500/- per NOC (inclusive of service tax)
Certificate Rs 200/- per NOC (inclusive of service tax)
Notes :
• Service Tax and other govt. taxes, levies, etc. applicable as per prevailing rate will be charged
over and above these charges at the discretion of ICICI Bank ltd.
• The charges or fees given in above table are subject to change and the one recorded in
agreement will be binding over this site.
• ^Effective for loans availed from August 1st, 2009. For loans availed prior to the said date, the
cheque return charge is Rs 200 + applicable service tax.
• Current Service Tax applicable is 10.3% ( 10 % Service Tax + 3% Education Cess on the
service tax ).
Documentation
ICICI Bank provides you with personal loan to fulfill any of your desires with minimum
documentation:
Salaried
1) Proof of Identity (any one) Passport / Driving License / Voters ID / PAN Card
2) Proof of Residence (any one) Ration Card / Utility Bill / Passport / LIC Policy Receipt
3) Latest 3 months Bank Statement (where salary/income is credited)
4) Salary slips for last 2 months
*Conditions apply
Introduction
There is some emergency and you need ready funds immediately ICICI bank provides
you personal loan for all your financial needs. Bank offers loan at attractive interest rate
with 12-60 months repayment options, faster processing. There is special offer for
existing bank customers.
Highlights
Processing Fee 3% 3%
Pre-Payment Charges 5% 5%
Salaried:
Documents Required:
ID Proof Yes
Telephone Yes
Photograph Yes
Self Employed:
Documents Required:
ID Proof Yes
Telephone Yes
Photograph Yes
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If you are an HDFC Bank salary account holder, we have a special offer
for you
Salaried Individuals include Salaried Doctors, CAs, employees of select Public and
Private limited companies, Government Sector employees including public sector
undertakings and central, state and local bodies:
Eligibility Criteria
Documents required:
Are you Eligible for a Personal Loan? See our Eligibilty calculator.
Eligibility Criteria
Documents required:
Are you Eligible for a Personal Loan? See our Eligibilty calculator.
Eligibility Criteria
Documents required:
Are you Eligible for a Personal Loan? See our Eligibilty calculator.
Self Employed (Pvt Cos and Partnership Firms) include Private Companies and
Partnership firms in the Business of Manufacturing, Trading or Services
Eligibility Criteria
Documents required:
Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade
licence /Est./Sales Tax certificate)
Bank Statements(latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA
Proof of continuation (Trade licence /Establishment /Sales Tax certificate)
HDFC Bank
HDFC bank provides personal loan for every occasion to help you in every situation. Hassle free loan- no
guarantor/ security/ collateral required, just simple documentation and quick approval with low interest rate. Bank
offers special customer privileges if you are an existing auto loan customer and have repaid loan amount of 12
months or more you will get personal loan without income documentation. Moreover if you are an existing banks
personal loan customer and have cleared repayment of 12 months then bank might Top-Up your personal loan.
Bank also have a provision of credit shield in case of death of loanee and even gives personal accident cover of
Rs.2,00,000 at a nominal premium.
Tenure 12 - 60 months
Charges:
Eligibility
Salaried EmployeesSalaried doctors, CAs, employees of select MNCs, public and private
employees including public sector undertakings and central and local bodies:
Documents Required:
• Qualification or registration proof required for doctors, architects, CA, CS, ICWA, MBA consultant, e
• Documentary proofs required may vary from customer to customer
Interest Rates & Charges
*Conditions Apply
ANALYSIS
Housing
Loan Ratings
Rating
Parameters scale
1 2 3
9 to 11 above
Interest rate up to 9% % 11%
Processing 0.5 to above
fees below 0.5% 1% 1%
15 to above
Margin below 15% 20% 20%
Prepayment above
penalty 0% 0to 2% 2%
Collertrial
security No Yes -
No. of
documents below 10 10 to 15 above 15
EMI No Advance 1 2
(advance) Advance Advance
20 to 10 Below 10
Tenure period Above 20 yrs. yrs. yrs.
Processing above 20
time Below 10 days 10 to 20 days
15 to
Interest rate up to 15% 20% above 20%
Processing 0.5 to
fees below 0.5% 1% above 1%
Prepayment 0% to
penalty 0% 2% above 2%
Collertrial
security No Yes -
No. of 10 to
documents below 10 15 above 15
Tenure Upto Below 3
period Upto 5 yrs. 3yrs. yrs.
Particulars Amts.
Principle 1800000
+Interest 2297592
+Processing fee 5000
Total Cost Rs. 4102592
B)Bank of Baroda
Given:
Loan amount Rs. 20,00,000
Margin 15%
Processing Fee 0.5%
Interest Rate 10.5%
As, the margin if 15% , he has to make a downpayment of Rs. 300000
and thus actual loan amt. given by bank would be Rs. 1700000.
Particulars Amts.
EMI 16972.46
Particulars Amts.
Principle 1700000
+Interest 2373390.4
+Processing fee 8500
Total Cost 4081890.4
17970.84(240)=4313001.6+9000=4322001.6
C) Bank of India
Given:
Loan amount Rs. 20,00,000
Margin 20%
Processing Fee 0.55%
Interest Rate 11.25%
Particulars Amts.
Principle 1600000
+Interest 2429144
+Processing fee 8800
Total Cost Rs. 4037944
18886.6125(240)=4532787+9900=4542687
Particulars Amts.(Rs.)
Principle 1600000
+Interest 1979384
+Processing fee 8000
Total Cost Rs. 3587384
16778.36(240)=4026806.4+9000= 4035807
Particulars Amts.(Rs.)
Principle 1600000
+Interest 3315190.4
+Processing fee 8000
Total Cost Rs. 4923190.4
23039.955(240)=5529589.2+9000=5538589.2
Particulars Amts.
EMI 18129.30
Particulars Amts.
Principle 1700000
+Interest 2651032
+Processing fee 8500
Total Cost Rs. 4359532
19195.7(240)=4606975+9000=4615975
Particulars Amts.
EMI 16124.79
Particulars Amts.
Principle 1700000
+Interest 2169949.6
+Processing fee 8500
Total Cost Rs. 3878449.6
17073.3(240)=4097593+9000=4106593
C) Axis Bank(Fixed Rate)
Loan amount Rs. 20,00,000
Margin 20%
Processing Fee 1%
Interest Rate 14%
Particulars Amts.
EMI 19896.33
Particulars Amts.
Principle 1600000
+Interest 3175119.2
+Processing fee 16000
Total Cost Rs. 4791119.2
22383.3(240)=5372009.1+18000=5390009.1
Particulars Amts.
EMI 14914.1
Particulars Amts.
Principle 1600000
+Interest 1979384
+Processing fee 16000
Total Cost Rs. 3595384
16778.3(240)=4026807+18000=4044807
Overall Analysis
Loan Amount(Rs.1800000) Total Cost(Rs.)
State Bank of India Floating Rate -4102592
Car Loan
Suppose a person wishes to take a loan of 5 lacs.for the purpose of
purchasing a new house for the tenure of 5 years. Then the question
arises that from which bank he should take the loan so that it becomes
cost effective to him.
However, he should first do the analysis of the various features
offered by different banks and then take the decision regarding which
bank to opt for.
The calculation of EMI and total cost for different banks are as
follows:
Particulars Amts.
Principle 425000
+Interest 129431.8
+Processing fee 2125
Total Cost Rs. 556556.8
B) Bank of Baroda
Given:
Loan amount Rs. 500000
Margin 15%
Processing Fee 0.75%
Interest Rate 12%
Particulars Amts.
Principle 425000
+Interest 142233.4
+Processing fee 3187.5
Total Cost Rs. 570420.9
C) Bank of India
Given:
Loan amount Rs. 500000
Margin 10%
Processing Fee 1.10%
Interest Rate 13%
Particulars Amts.
Principle 450000
+Interest 164332.8
+Processing fee 4950
Total Cost Rs. 619282.8
9670(60)=580203.2+4675=584878.2
A)ICICI Bank(Fixed rate)
Particulars Amts.
EMI 9840.29
Particulars Amts.
Principle 450000
+Interest 140417.4
+Processing fee 3100
Total Cost Rs. 593517.4
Particulars Amts.
Principle 450000
+Interest 123670.2
+Processing fee 9000
Total Cost Rs. 582670.2
Particulars Amts.
EMI 8874
Particulars Amts.
Principle 425000
+Interest 107437
+Processing fee 3860
Total Cost Rs. 536279
Overall Analysis
Loan Amount(Rs.425000) Total Cost(Rs.)
State Bank of India Floating Rate -556556.8
Particulars Amts.
EMI 7105.69
Particulars Amts.
Principle 200000
+Interest 55804.84
+Processing fee 6000
Total Cost Rs.261804.84
B) Bank of Baroda
Given:
Loan amount Rs. 200000
Margin -
Processing Fee 2%
Interest Rate 16%
.
Particulars Amts.
EMI 7031.41
Particulars Amts.
Principle 200000
+Interest 53130.76
+Processing fee 4000
Total Cost Rs. 257130.76
C) Bank of India
Given:
Loan amount 200000
Margin -
Processing Fee 1.10%
Interest Rate 14.5%
Particulars Amts.
EMI 6884.2
Particulars Amts.
Principle 200000
+Interest 47831.2
+Processing fee 2200
Total Cost Rs. 250031.2
Particulars Amts.(Rs.)
EMI 6884.20
Particulars Amts.(Rs.)
Principle 200000
+Interest 47831.2
+Processing fee 4000
Total Cost Rs. 251831.2
Particulars Amts.(Rs.)
EMI 6835.53
Particulars Amts.(Rs.)
Principle 200000
+Interest 46079.08
+Processing fee 6000
Total Cost Rs. 252079.08
C) Axis Bank
Particulars Amts.(Rs.)
EMI 6835.53
Particulars Amts.(Rs.)
Principle 200000
+Interest 46079.08
+Processing fee 4000
Total Cost Rs. 250079.08
Overall Analysis
Loan Amount(Rs.200000) Total Cost(Rs.)
State Bank of India Floating Rate - 261804.84
Questionnaire
Dear Respondent,
We are the students of Shree Jairambhai Patel Institute of Business
Management & Computer Application, (NICM-Gandhinagar) Gujarat
Technological University, conducting a market research on “Customer
Perception with respect to Retail Banking Loans”. The information
hereby provided by you, is strictly confidential and for the academic purpose
only.
4. How did you come to know about the financial institution offering
the loan?
□ Internet □ Brochures
□ Television □ Press
5. What is your opinion regarding the loan procedure?
Rank Them
□ Floating
□ Adjustable
Totally
Disagre Totally
Opinion Disagre Neutral Agree
e Agree
e
Prepayment penalty is to be
considered while analyzing a
loan scheme.
Processing fee is to be
considered while analyzing a
loan scheme.
□ Above 20
11. Would you recommend your bank to others for loans? Explain
with reason..
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_________________________________________________________________________
Personal Details:
Name : - ___________________
Age Group:
□ < 25 □ 25-44 □ 45-64 □ 65 and
above
Occupation:-
□ 1,60,000-3,00,000
□ 5,00,000-8,00,000
□ >8,00,000
Thank You
ANALYSIS OF QUESTIONNAIRES
Q - 1 Have you ever taken
any loan?
10
Yes 0
No 0
Phone 2
Internet 12
Television 6
Friends/Relati
ves 44
Brochures 34
Press 0
Complex 26
Difficult 6
Simple 64
Can't Say 4