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A

Grand Project Report


On
Comparative study of public and private
sector banks with respect to retail loans

Submitted to: Prof. Bansi patel

Submitted by:

Priti jain (b-17)

Priyanshi shah (a-50)


Introduction to the topic

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.

The report studies Indian bank’s profile to demonstrate a direct correlation


between the investment in stakeholder relationships and corporate performance.
Many Indian banking seems to have destroyed shareholder’s wealth over a
period of time and only a few have positively contributed to their wealth.
Statement of Problem

To study that which bank (private as well as public) is better as compare to


others with terms of retail loans.
Short literature Review
Background & importance of topic

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?

In order to help management understand their own economics and


arrive at value creating investment decision that adequately satisfies the two
sensitive factors mentioned earlier, bankers must understand the concept and
relevance of “Economic Value added (EV )” a period based measure of value
creation. EVA provides a unique insight into value creation and links theory of
finance with the competitive strategy framework as enumerated by Michael
Porter. EVA is also a quantifiable driver of value creation for the stock markets.
Large number of International banks (such as Citibank, Deutsche Bank,
Barclays, ABN AMRO) use value based frameworks such as EVA to run their
banking operations. Although EVA an a yardstick in India may be at an evolving
stage, banks like HDFC Bank, ICICI Bank etc. have gradually started
adapting such measure to cater to the increasingly discerning investor base.

A bank’s management creates value when it takes decisions that provide


benefits, in excess of costs. These benefits may come to banks in the near or
distant future depending on the strategies involved in decision making
process The bankers of today’s world therefore must be sensitive to two
fundamental drivers that drive shareholders’ wealth First, there must be an
unrelenting focus to ensure that funds mobilized by the banks (whether
through depositors, equity or debt issues) generate returns in excess of the
cost of capital (or can reasonably be expected to do so) with an eye toward
returning non productive capital back to providers of the capital or shareholders.
Second, bankers should constantly seek to invest in technology that increases
their reach and also be open to strategic alliances, mergers & acquisitions
and restructuring.

In the same context it is worth considering that the capital mobilized


by banks earns a satisfactory return. While it is true that substantial amount
of value creation for a bank or corporate takes place from less than half of the
capital employed, it proves that the entity can unlock huge amount of capital
employed for adding to the value for the shareholders. The second point
mentioned earlier, a necessary corollary to the first point, emphasizes on the
importance of investing in value creating projects and strategies. It implies
criticality of the fact that bankers must remain sensitive to all such balance
sheet items that add value either through mergers or acquisitions or simply
through restructuring, re-capitalization or any other method such as sell-off of
unproductive assets Further bank’s management must be able to differentiate
between projects and strategies. While projects are generally viewed
financially from NPV or IRR point of view, they may not really convey the
fact that whether value is being added to the shareholders. For example,
what distinguishes HDFC Bank, the new futuristic bank from other savvy
banks is its position in the new e- economy The “anywhere-anytime” bank
is not averse of accepting the fact that “customer is the king and the bank has to
tailor its products as per his requirements” – even if the new product has a
negative NPV as its alternative strategy of doing nothing may only destroy value
for HDFC Bank. Having established a massive base of customers and
holding extensive information about them, banks such as ICICI Bank and HDFC
Bank have already made major head start. They now all set to leverage these
assets. As we all know the Internet has already started radically affecting
fundamental structures of even Indian banks, not only in retail operations, but in
many other areas including private banking. The bankers in the millennium must
attempt to make investment in “strategies” and not merely “remain confined to
borrowing and lending” They should now play a role of “financial service
providers” for increasing their shareholder’s value.
Objective of the study

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.

 To analyse the consumer perception with respect to retail loans.


Methodology of the study

2.4) Research Methodology


Research methodology is a way to systematically solve the research problem. The research
methodology included various methods and techniques for conducting a research.

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.

2.4.1) Defining the problem :

It is said, “A problem well defined is half solved”. The step is to define the project under
study and deciding the research objective.

2.4.2)Developing the Research Plan:

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 development of Research plan has the following Steps:


Research Design:

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:

Two type of data was taken into consideration:

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.

i) Sampling unit: Who is to be surveyed?

The target population must be defined that has to be sampled. It is necessary


so as to develop a sampling frame so that everyone in the target population has an
equal chance of being sampled. In my survey simple convenient sampling was used
because the no. of respondents were limited.

ii) Sample Size: How many people have to be surveyed?

Generally large sample gives more reliable results than small samples. The research
consisted sample size of 100 respondents.

iii) Sampling Procedure : how should respondent be choosen?

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.

Collecting the information:


In this research some of the information was collected by interacting with the staff of
the banks. Apart from this various secondary and primary information was collected as
mention below:
Collection of Secondary Data:

Secondary Data is the data which are already existing or are collected before.
Secondary data was collected from the internet. Official bank websites.

Collection of Primary Data:

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.

The questions were asked close-ended and open ended.

I have used Dichotomous questions, Multiple choice questions and Rating questions
in the questionnaire.

Analyze the Information:


The next step is to extract the pertinent findings from the collected data. I have
tabulated the collected data and developed frequency distributions. Thus the whole data
was grouped aspect wise and was presented in tabular form. Thus, frequencies and
percentages were prepared to render impact of the study.

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

The name bank derives from the Italian word banco


"desk/bench", used During the Renaissance by
Florentines bankers, who used to make their
Transactions a bove a desk covered by a green
tablecloth. Historically, the primary purpose of a bank
was to provide loans to trading Companies. Banks
provided funds to allow businesses to purchase
inventory, and collected those funds back with interest
when the goods were sold. The first modern bank was
founded in Italy in Genoa in 1406; its name was Banco
di San Giorgio (Bank of St. George).

Banking in India originated in the last decades of the


18th century. The first banks were The General Bank of
India, which started in 1786, and Bank of Hindustan,
which started in 1790; both are now defunct. The oldest
bank in existence in India is the State Bank of India,
which originated in the Bank of Calcutta in June 1806,
which almost immediately became the Bank of Bengal.
This was one of the three presidency banks, the other
two being the Bank of Bombay and the Bank of Madras,
all three of which were established under charters from
the British East India Company. For many years the
Presidency banks acted as quasi-central banks, as did
their successors. The three banks merged in 1921 to
form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India.

The first bank in India, though conservative, was established in 1786.


From 1786 till today, the journey of Indian Banking System can be
segregated into three distinct phases. They are as mentioned below:
• Early phase from 1786 to 1969 of Indian Banks
• Nationalisation of Indian Banks and up to 1991 prior to Indian
banking sector Reforms.
• New phase of Indian Banking System with the advent of Indian
Financial & Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as
Phase I, Phase II and Phase III.

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.

In 1865 Allahabad Bank was established and first time exclusively by


Indians, Punjab National Bank Ltd. was set up in 1894 with
headquarters at Lahore. Between 1906 and 1913, Bank of India,
Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in
1935.

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.

During those day’s public has lesser confidence in the banks. As


an aftermath deposit mobilisation was slow. Abreast of it the savings
bank facility provided by the Postal department was comparatively
safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform


after independence. In 1955, it nationalized Imperial Bank of India
with extensive banking facilities on a large scale especially in rural
and semi-urban areas. It formed State Bank of India to act as the
principal agent of RBI and to handle banking transactions of the
Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was


nationalized in 1960 on 19th July, 1969, major process of
nationalisation was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in
the country was nationalised.

Second phase of nationalisation Indian Banking Sector Reform was


carried out in 1980 with seven more banks. This step brought 80% of
the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to


Regulate Banking Institutions in the Country:
1949 : Enactment of Banking Regulation Act.

1955 : Nationalisation of State Bank of India.


1959 : Nationalisation of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
1969 : Nationalisation of 14 major banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.

1980 : Nationalisation of seven banks with deposits over 200 core.


After the nationalisation of banks, the branches of the public sector
bank India rose to approximately 800% in deposits and advances took
a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public


implicit faith and immense confidence about the sustainability of
these institutions.

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.

The financial system of India has shown a great deal of resilience. It


is sheltered from any crisis triggered by any external macroeconomics
shock as other East Asian Countries suffered. This is all due to a
flexible exchange rate regime, the foreign reserves are high, the
capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.

Nationalization Of Banks In India

The nationalization of banks in India took place in 1969 by Mrs.


Indira Gandhi the then prime minister. It nationalized 14 banks then.
These banks were mostly owned by businessmen and even managed
by them.
Central Bank of India
Bank of Maharashtra
Dena Bank
Punjab National Bank
Syndicate Bank
Canara Bank
Indian Bank
Indian Overseas Bank
Bank of Baroda
Union Bank
Allahabad Bank
United Bank of India
UCO Bank
Bank of India
Before the steps of nationalization of Indian banks, only State Bank of
India (SBI) was nationalized. It took place in July 1955 under the SBI
Act of 1955. Nationalization of Seven State Banks of India (formed
subsidiary) took place on 19th July, 1960.

The State Bank of India is India’s largest commercial bank and is


ranked one of the top five banks worldwide. It serves 90 million
customers through a network of 9,000 branches and it offers — either
directly or through subsidiaries — a wide range of banking services.

The second phase of nationalization of Indian banks took place in the


year 1980. Seven more banks were nationalized with deposits over
200 Crores. Till this year, approximately 80% of the banking segment
in India was under Government ownership.

After the nationalization of banks in India, the branches of the public


sector banks rose to approximately 800% in deposits and advances
took a huge jump by 11,000%.
1955 : Nationalisation of State Bank of India.
1959 : Nationalisation of SBI subsidiaries.
1969 : Nationalisation of 14 major banks.
1980 : Nationalisation of seven banks with deposits over 200 crores.

Scheduled Commercial Banks In India-


The following are the Scheduled Banks in India (Public Sector):
State Bank of India
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Overseas Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab and Sind Bank
Syndicate Bank
Union Bank of India
United Bank of India
UCO Bank

The following are the Scheduled Banks in India (Private Sector):


Vysya Bank Ltd
Axis Bank Ltd
Indusind Bank Ltd
ICICI Banking Corporation Bank Ltd
Global Trust Bank Ltd
HDFC Bank Ltd
Centurion Bank Ltd
Bank of Punjab Ltd
IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:


American Express Bank Ltd.
ANZ Gridlays Bank Plc.
Bank of America NT & SA
Bank of Tokyo Ltd.
Banquc Nationale de Paris
Barclays Bank Plc
Citi Bank N.C.
Deutsche Bank A.G.
Hongkong and Shanghai Banking Corporation
Standard Chartered Bank.
Classification of banks:
The Indian banking industry, which is governed by the
Banking Regulation Act of India, 1949 can be broadly
classified into two major categories, non-scheduled
banks and scheduled banks. Scheduled banks comprise
commercial banks and the co-operative banks. In terms
of ownership, commercial banks can be further
grouped into nationalized banks, the State Bank of
India and its group banks, regional rural banks and
private sector banks (the old / new domestic and
foreign). These banks have over 67,000 branches
spread across the country. The Indian banking industry
is a mix of the public sector, private sector and foreign
banks. The private sector banks are again spilt into old
banks and new banks.

Banking System in India


Reserve bank of India (Controlling Authority)

Development Financial institutions


Banks

IFCI IDBI ICICI NABARD NHB IRBI EXIM Bank


SIDBI

Commercial Regional Rural Land Development


Co-operative
Banks Banks Banks
Banks

Public Sector Banks


Private Sector Banks

SBI Groups Nationalized Banks Indian Banks


Foreign Bank

CLASSIFICATION OF BANKS

On the basis of Ownership

1. PUBLIC SECTOR 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.

2. PRIVATE SECTOR BANKS

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:

Schedule banks are sub-divided as:-

a) State co-operative banks


b) Commercial banks

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:-

A. Central Co-operative banks and Primary Credit Societies.


B. Commercial banks .

 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

countries. Their principle function is to make credit arrangement or the export


and the import of the country and these banks deals in foreign exchange.

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

Competitive forces model in the banking industry


(PORTER’S FIVE-FORCE MODEL)
Prof. Michael Porter’s competitive forces Model applies
to each and every company as well as industry. This
model with regards to the Banking Industry is
presented below.

(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)

Organizing power Rivalry among Bargaining power of


of the supplier is existing firms has buyers is high as
high. With the new increased with corporate can raise
financial instruments liberalization. New funds easily due to
they are asking higher (3)
products and improved high competition.
return on the customer services is
Threat the
from
investments. focus.
substitute is high due
to competition from
NBFCs and insurance
companies as they offer
a high rate of interest

Rivalry among existing firms


With the process of liberalization, competition among
the existing banks has increased. Each bank is coming
up with new products to attract the customers and
tailor made loans are provided. The quality of services
provided by banks has improved drastically.
Potential Entrants
Previously the Development Financial Institutions
mainly provided project finance and development
activities. But they now entered into retail banking
which has resulted into stiff competition among the
exiting players.
Threats from Substitutes
Banks face threats from Non-Banking Financial
Companies. NBFCs offer a higher rate of interest.
Bargaining Power of Buyers
Corporate can raise their funds through primary market
or by issue of GDRs, FCCBs. As a result they have a
higher bargaining power. Even in the case of personal
finance, the buyers have a high bargaining power. This
is mainly because of competition.
Bargaining Power of Suppliers
With the advent of new financial instruments providing
a higher rate of returns to the investors, the
investments in deposits is not growing in a phased
manner. The suppliers demand a higher return for the
investments.
Overall Analysis
The key issue is how can banks leverage their strengths
to have a better future. Since the availability of funds is
more and deployment of funds is less, banks should
evolve new products and services to the customers.
There should be a rational thinking in sanctioning loans,
which will bring down the NPAs. As there is a expected
revival in the Indian economy Banks have a major role
to play. Funding corporate at a low cost of capital is a
special requisite.
Present scenario of banking industry

The growth in the Indian Banking Industry has


been more qualitative than quantitative and it is
expected to remain the same in the coming years.
Based on the projections made in the "India Vision
2020" prepared by the Planning Commission and the
Draft 10th Plan, the report forecasts that the pace of
expansion in the balance-sheets of banks is likely to
decelerate. The total assets of all scheduled
commercial banks by end-March 2010 are estimated at
Rs 40, 90,000 corers. That will comprise about 65 per
cent of GDP at current market prices as compared to 67
per cent in 2002-03. Bank assets are expected to grow
at an annual composite rate of 13.4 per cent during the
rest of the decade as against the growth rate of 16.7
per cent that existed between 1994-95 and 2002-03. It
is expected that there will be large additions to the
capital base and reserves on the liability side. The
Indian Banking Industry can be categorized into non-
scheduled banks and scheduled banks. Scheduled
banks constitute of commercial banks and cooperative
Banks. There are about 67,000 branches of Scheduled
banks spread across India. As far as the present
scenario is concerned The Banking Industry in India is
going through a transitional phase.
The Public Sector Banks (PSBs), which are the base
of the Banking sector in India account for more than 78
per cent of the total banking industry assets.
Unfortunately they are burdened with excessive Non
Performing assets (NPAs), massive manpower and lack
of modern technology. On the other hand the Private
Sector Banks are making tremendous progress. They
are leaders in Internet banking, mobile banking, phone
banking, ATMs. As far as foreign banks are concerned
they are likely to succeed in the Indian Banking
Industry.

Home loan
Public Sector Banks

State bank of India:

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:

Loan Margin Maximum LTV


Amount (Min.) Ratio (Max.)
Upto Rs. 20 10% 90%
Lacs
Above Rs. 20 20% 80%
Lacs.
*LTV ratio - Loan to value ratio.

REPAYMENT:

Repayment period: Maximum 25 years (or) Up to the


age of 70 years (the age by which the loan should be
fully repaid) of the borrower, whichever is early.

Moratorium period (Repayment holiday): The


moratorium period is included within the maximum
repayment period.

Products:

a) SBI Easy Home Loan


(Base Rate: 8.25% p.a.)

Name SBI Easy Home Loan


Loan Upto (and including) Rs.30 Lacs
amount
Interest Card Rate applicable for the tenor of
Rate the loan – 1.50% above Base Rate,
Present effective rate being 9.75%
p.a.
Ist Year 1% discount over Card Rate, present
effective rate being 8.75% p.a.
2nd and 0.25% discount over Card Rate, present
3rd year effective rate being 9.50% p.a.
4th year Card Rate
onwards
No Fixed Interest Rate option.

b) SBI Advantage Home Loan


(Base Rate: 8.25% p.a.)

Name SBI Advantage Home Loan


(Above Rs.30 Lacs and upto Rs.75 Lacs)
Loan For Home Loans above Rs 30 lacs and upto
amount Rs. 75.00 Lacs
Interest Card Rate applicable for the tenor of the
Rate loan – 1.75% above Base Rate, Present
effective rate being 10.00% p.a.
Ist Year 1.25% discount over Card Rate, present
effective rate being 8.75% p.a.
2nd and 0.50% discount over Card Rate, present
3rd year effective rate being at 9.50% p.a.
4th year Card Rate
onwards
No Fixed Interest Rate option.

c) SBI Premium Home Loan


(Base Rate: 8.25% p.a.)

Name SBI Premium Home Loan – Above Rs.75


Lacs
Loan For Home Loans above Rs 75.00 lacs
amount
Interest Card Rate applicable over the tenor of the
rate loan is 1.75% over the Base Rate, present
effective rate being 10.00% p.a.
Concessions including discretionary
concessions will be available over the tenor of
the loan
No Fixed Interest Rate option.

Processing Fee:
Loan Amount Processing
Fee

Upto Rs.5 Lac Rs.1000/-

Above Rs.5 Lac and upto Rs.2000/-


Rs.10 Lac

Above Rs.10 Lac and upto Rs.5000/-


Rs.20 Lac

Above Rs.20 Lac and upto Rs.7,000/-


Rs.50 Lac

Above Rs.50 Lac and upto Rs.8,000/-


Rs.1 Cr

Above Rs.1 Cr and upto Rs.5 Rs.10,000/-


Cr

Above Rs.5 Cr Rs.20,000/-

DOCUMENTS

List of papers/ documents applicable to all


applicants:
Completed loan application
3 Passport size photographs
Proof of identify (photo copies of Voters ID card/
Passport/ Driving
licence/ IT PAN card)
Proof of residence (photo copies of recent Telephone
Bills/ Electricity Bill/
Property tax receipt/ Passport/ Voters ID card)
Proof of business address for non-salaried individuals
Statement of Bank Account/ Pass Book for last six
months
Signature identification from present bankers
Personal Assets and Liabilities statement
For guarantor (wherever applicable):
Personal Assets and Liabilities Statement
2 passport size photographs
Proof of identification as above
Proof of residence as above
Proof of business address as above
Signature identification from his/her present bankers

Additional documents required for salaried


persons :
Original Salary Certificate from employer
TDS certificate on Form 16 or copy of IT Returns for
last two financial years, duly acknowledged by IT
Deptt.
Additional documents required for
Professionals/self- employed/ other IT assesses:
Acknowledged copies of three years I.T. returns/
Assessment Orders.
Photocopies of challans evidencing payment of
Advance Income Tax.

B) Bank of Baroda Home Loan:


Purpose:
Purchase of new / old dwelling unit.
Construction of house.
Purchase of plot of land for construction of a house.
Repaying a loan already taken from other Housing
Finance Company / Bank.
Terms & Conditions
Income Criteria:

Monthly Income Modified Criteria


Up to Rs. 20,000/- 36 times of
monthly income
More than Rs.20,000/- & 48 times of
up to Rs. 1 lac monthly income
More than Rs. 1 lac 54 times of
monthly income

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%

Security: Equitable mortgage of the property.


Prepayment penalty:
In case of full prepayment or foreclosure (other than
from own sources) fees will be charged at 0.5% for
each year of the residual period subject to maximum of
2%.
REPAYMENT:
Repayment period: Maximum 25 years (or) Up to the
age of 65 years (the age by which the loan should be
fully repaid) of the borrower, whichever is early.

Interest Rates:

Baroda Home Loan to Individuals / NRIs / PIOs


(W.E.F 04.02.2011)

Fixed Rate
Not Available
option

Floating Rate option

Base Rate (per annum) 9.50%


w.e.f. 04.02.2011

Above Rs.
Repayment Up to Rs. 30 30 Lacs and 75 Lacs and
Period Lacs below Rs. above
75 Lacs

0.50% above 1.25% above Base Rate +


Upto 5 years Base Rate i.e. Base Rate i.e. 1.50% i.e.
10.00% 10.75% 11.00%

Over 5 years 0.75% above 1.50% above Base Rate


& up to 15 Base Rate i.e. Base Rate i.e. +1.75% i.e.
years 10.25% 11.00% 11.25%

Over 15 1.00% above 1.75% above Base Rate


years & up to Base Rate i.e Base Rate +2.00% i.e.
25 yrs 10.50% i.e.11.25% 11.50%

Processing fees:

Loan upto Rs.30 Lacs : 0.50% (Minimum Rs..5,000/-)


Above 30 Lacs : 0.40% (Min. Rs.15,000/- & Max

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)

Minimum size of Housing Loan:-


At Metro and Urban Centres :-Rs. One Lakh
At Rural and Semi Urban Centres :-No minimum size of
loan.
Processing charges:
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 :
For Loan upto Rs.10 Lacs – 15%
For Loan over Rs.10 Lacs – 20%
Prepayment charges :
i) No charges, if pre-payment is made from own
sources of the borrower
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.
Repayment(can be customized): - maximum 20 yrs.

Rate of Interest:

Upto >5- >10- >15-20 yrs


5 yrs 10 15
yrs yrs
Floating Rate
UPTO RS.30 10.2 10.5 10.7
LACS: 5 0 5 11.25
RS.30 LACS
11.0 11.2 11.5
TO RS.50 12.00
0 5 0
LACS :
RS.50 LACS
TO RS.75
11.7 12.0 12.2 12.75
LACS
5 0 5
RS.75 LACS & 12.5 12.7 13.0 13.50
ABOVE 0 5 0
Interest on daily reducing balances. Interest
applicable to residents as well as non-
residents.

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:

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.

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 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)

Minimum size of Housing Loan:-


At Metro and Urban Centres :-Rs. One Lakh
At Rural and Semi Urban Centres :-No minimum size of loan.
Processing charges:

• 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 :

• For Loan upto Rs.10 Lacs – 15%


• For Loan over Rs.10 Lacs – 20%

Prepayment charges :

i) No charges, if pre-payment is made from own sources of the


borrower

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.

Repayment(can be customized): - maximum 20 yrs.


Rate of Interest:

Upto >5- >10- >15-20 yrs


5 yrs 10 15 yrs
yrs
Floating Rate
-Linked to Base
Rate (8.50% p.a.
at monthly rest)
FOR LIMITS
UPTO RS.30
LACS: 10.25 10.5010.75 11.25
FOR LIMITS
OER RS.30
11.00 11.2511.50 12.00
LACS UPTO
RS.50 LACS :
FOR LIMITS
OVER RS.50
LACS & 11.75 12.0012.25 12.75
BELOW RS.75
LACS
FOR LIMITS OF12.50 12.7513.00 13.50
RS.75 LACS &
ABOVE
Interest on daily reducing balances. Interest applicable to
residents as well as non-residents.

Security:

• Equitable Mortgage (1st charge) on land/flat/house.


• Third Party guarantee(if mortgage could not be created at the
time of disbursement ).

PRIVATE SECTOR BANKS


ICICI HOME LOAN
key benefits:
Guidance through out the process
Home loan amounts suited to your needs
Home Loan tenure upto 20 years
Simplified documentation
Doorstep delivery of home loan papers
Sanction approval without having selected a property.
Free Personal Accident Insurance (Terms & Conditions)
Insurance options for your home loan at attractive
prem

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:

You must be at least 21 years of age when the loan is


sanctioned.
The loan must terminate before or when you turn 65
years of age or before retirement, whichever is earlier.
You must be employed or self-employed with a regular
source of income.

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.

Documents required for the Sanctioning of Home


Loan
Duly Completed Application Form
Photograph
Fee cheque
Photo Identity Proof
Signature Verification Proof
Residence Address Proof
Property documents as required

Document specific for Salaried


Last 3 months' salary slips
Form 16
Bank Statement for last 6 months from salary account
Repayment details on any existing loans or loan closure
letter

Document specific for Self Employed


Income Tax Return / Computation of Total Income /
Auditors Report / Balance Sheet / Profit & Loss Account
certified by Chartered Accountant for last 2 years (3
years for Home Equity) (both for business and personal
of partners/directors)
Bank Statement for last 6 months from operating
account
Repayment details on existing loans or loan closure
letter
Board Resolution in case of a company
Proof of existence of the business entity
Proof of Office Address
Photo Identity Proof, Residence Address Proof,
Signature Verification must be provided for all the main
partners / directors

Repayment tenure is the tenure for the number of year


for which the loan gets sanctioned.
Repayment period: Maximum 20 years (or) Up to the
age of 65 years (the age by which the loan should be
fully repaid) of the borrower, whichever is early.

EMI payments start from the month following the


month in which the full disbursement has been made.

The EMI is to be paid every month through post-dated


cheques (PDCs) or Electronic Clearing System (ECS)*. If
you are opting for PDCs, then you will have to provide
36 PDCs upfront. The PDCs are to be dated on the 1st
of every month. However, if you receive your salary a
few days later, we provide the flexibility of dating the
cheques for the 10th of the month. In case you have an
ICICI Savings account you can also go in for the facility
of Auto Debit.

What is pre-EMI interest?


In the case of part disbursement of the loan, monthly
interest is payable only on the disbursed amount. This
interest is called pre-EMI interest (PEMI) and is payable
monthly till the final disbursement is made, after which
the EMIs would commence.
When do I pay PEMIs?
The first PEMI is payable by cheque by the end of the
month in which the disbursement is made and each
subsequent PEMI at the end of every month till the
commencement of EMI. In case you have an ICICI
Savings account you can also go in for the facility of
Auto Debit.

Disbursement of ICICI Bank Home Loan

The 230 A Clearance of the seller and / or 37I clearance


from the appropriate income tax authorities (if
applicable) is also needed.

On satisfactory completion of the above, on registration


of the conveyance deed and on the investment of your
own contribution, the loan amount (as warranted by the
stage of construction) will be disbursed by ICICI Bank.
Property documents (as per P&D for respective states
and as asked by empanelled lawyers for individual
cases).
Facility Agreement.
Disbursal Request Form.
Cheque Submission Form - for Pre EMI and EMI
cheques.
ECS or Auto Debit for ICICI Bank account holders or Post
Dated Cheques for EMI / Pre EMI.
Personal Guarantor's Documents (PG Form,
Photograph, Identity Proof, Address Proof, Signature
Verification and Income documents, if applicable).

In case of property is owned by a company


Memorandum of Entry.
Form 8.
NOC.
Some documents are specific to each state. For further
information, please contact the nearest office.

Service Charges & Fees


You can choose from Adjustable, Fixed or Floating Rate
Home Loan.

Charges Mortgages Loans

Loan Processing 0.50% - 1.00% of the loan amount or


Charges / Renewal Rs. 1500/- (Rs. 2000/- for Mumbai,
Charges Delhi & Bangalore), whichever is
higher + applicable Service Tax &
Surcharge

Prepayment 2% - 4% + applicable Service Tax


Charges & Surcharge on full prepayment

Home Loans : 2% per month


Charges for late Home OD : 1.5% of the outstanding
payment amount subject to minimum of Rs.
500/- & Maximum of Rs.5000/-

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

Amortisation Rs.100 per schedule (Inclusive of


Schedule S.T.)*
Statement of Rs.100 per statement (Inclusive of
Account S.T.)*

Final prepayment Rs.100 per statement (Inclusive of


statement S.T.)*

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

Final Income Tax


Nil
Certficate

Interest Certificate NA

Change of Address Nil

Agreement Copy Nil

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

HDFC Home Loan

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

Salaried Self Employed Self Employed


Customers Professionals Businessman

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)

Processing fee Processing fee


cheque cheque
AXIS BANK HOME LOAN
Home Loan
: Loan Purposes

Purchase of a plot of land & construction of house thereon


Construction of a house on plot of land already owned
Purchase of a new house/flat
Purchase of old house/flat. The residual age of the property as conf
valuators at the maturity of the loan should not be less than 10 yea
Extend/Renovate/Repair of a house or flat already owned by self
Take over of existing housing loan

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

Purpose Salaried Othe

Proof of identity Voter's ID card or driving license or PAN Vote


card or photo credit card or employees ID licen
card or defense or police or government phot
department ID card

Proof of income Latest salary slip showing all deductions IT re


or Form 16 along with recent salary year
certificate incom
certi

Proof of Bank account statement or latest Bank


residence electricity bill or latest mobile or or la
telephone bill or latest credit card lates
statement or latest LIC policy or bill o
insurance premium receipt or employers state
letter certifying the current mailing polic
address or latest NSC or other similar prem
instruments indicating the address or NSC
existing house lease agreement instr
addr

Bank statement Last 6 months Last


or Pass Book
where salary or
income is
credited

Guarantor form Optional Optio

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:

Sr. Type Loan amount (Rs.) Base Rate


No Mark Up

1 Floating Less than Rs. 20 Lac Base rate +


Rate %

Loans greater than Rs. 20 lac - Base Rate +


Rs. 30 lac %

Loans greater than Rs. 30 lac - Base Rate +


Rs. 75 lac %

Loans greater than 75 lac Base rate +


%

Top Up - All loans Base rate +

Renovation Base rate +

2 Fixed All Loan Category -


Rate

Base Rate - 8.75%

Sche Loan Prepaym No Due Solvenc Charges for


me Processi ent Certific y Late Paymen
ng Charges ate Certific of EMI
Charges ate

Power 1% + Nil NA NA Rs 500 + taxes


Home Service per cheque
tax as bounce and a
applicabl penal interest
e @24% per
annum i.e. @
2% per month
on the overdue
installment/s

Other Charges:

Sr. Type
No

1 Repayment Instruction/Instrument Return charges

2 Cheque/Instrument Swap charges

3 Duplicate Statement issuance charges

4 Duplicate Amortization schedule issuance charges

5 Duplicate Interest Certifcate (Provisional/Actual) issuance


charges

6 Issuance charges for Photocopy of title documents


7 Charges on customer initiated requests for copies of
documents

Switching Cost:Switching from the Floating rate scheme to the


versa is permissible. If a fixed rate customer wants to reschedule
rate, the same is also permissible.

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.

Bank of India (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.

Eligibility Salaried employees,


Professionals, Self-employed,
individuals with high net worth,
People engaged in
trade/commerce/ business,
Directors of Companies, Senior
Citizens, Pensioners, Farmers,
Staff Members, Retired
employees (other than
dismissed/ compulsorily retired)
of our Bank.
Non-Resident Indians in India –
advance to be granted jointly
with Resident Indians (close
relative)
(Age of the individual borrower
not to exceed 65 years at the
time of availing the advance)
Companies, Partnership Firms,
Proprietary concern and other
types of Corporate entities.
HUFs not permitted.

Quantum of Maximum limits for finance :


Loan 1) Individuals (Resident in India)
:
= For Indian make vehicles –
Rs.25 lacs
=For imported vehicles – Rs.75
lacs.
2) For Companies and corporate
entities – Rs.100 lacs (Can be a
fleet of vehicles)
3)Non-resident Indians – Rs.25
lacs.
4)For vehicles run on non-
conventional energy and not
required to be registered with
RTO.
Two wheelers – Rs.50,000/-
(Max.)
Four wheelers – Rs.4.00 lacs
(Max.)
The limits are subject to : (a)
24 times of gross monthly
emoluments in case of salaried
employees/pension/ or two
times of gross average annual
income as per last 3 yeas I.T.
Returns
(b) two times average annual
cash accrual (i.e. PAT + Dep.)
as per firms/ companies last 3
years audited balance sheet,
P&L A/c.
© In respect of farmers
depending on his repayment
capacity as is applicable in
Agriculture loans.
(d) Net take home pay should
be atleast 40% of income (net
of proposed EMI).
Rate of i. Fully Secured w.e.f.
Interest (on Loans 03.02.2011
daily reducing
For Loans
balance)
w.e.f. upto Rs.10
03.02.2011 lacs
a. New
Vehicles –
@3.00% over
Repayment
BR 12.50%
upto 3 years
b. New
Vehicles –
@3.50% over
Repayment
BR 13.00%
over 3 years
c. Second @4.00% over
Hand Vehicles BR 13.50%
ii. For loans
over Rs.10
lacs
a. New
Vehicles –
@3.50% over
Repayment
BR 13.00%
upto 3 years
b. New
Vehicles –
@4.00% over
Repayment
BR 13.50%
over 3 years
c. Second @4.50% over BR
14.00%
Hand Vehicles

Repayment A)For Individuals – for new


(New vehicles
Vehicles) 4 wheelers – imported vehicles-
Max. 7 years.
4 wheelers - Indian vehicles – 6
years.
2 wheelers – max. 5 years.
B)For Corporates/Firms,etc. –
Max. 5 years.
C)For second hand vehicles –
Max. 3 years.
Security i.Hypothecation of vehicle to be
purchased out of Bank finance.
ii. Charge to be registered with
RTO.
iii. Third party guarantee
required in the following cases :
(a) Loans to NRIs – Guarantee of
Resident Indian is required.
b) Vehicles not registered with
RTO and for loans to
individuals for limits exceeding
Rs.25.00 lacs.
Margin Individuals (including NRIs) :
(For new vehicles)
Upto Rs.2.00 lacs - 5%
Rs.2.00 lacs to Rs.10.00 lacs -
10%
Above Rs.10 lacs to Rs.25 lacs -
15%
Above Rs.25.00 lacs - Min.
25%
For Corporate entities/firms,
etc. : Min. 25%
For second hand vehicles –
Min. 30%
Processing/ a)Loans upto Rs.25,000/- - one
Handling time Rs.1,000/-
Charges b)Loans above Rs.25,000/- upto
Rs.25 lacs – one time 1.10% of
loan amount – Min.Rs.1,500/- &
Max. Rs.5,000/-
c)Loans above Rs.25 lacs – one
time 0.25% of the loan amount
Max.15,000/-
Service Tax as applicable.

Processing charges waived for


Senior Citizens, staff members
& retired employees of the Bank
& Pensioners drawing pension
from the Bank.
For Partnership
firms/Corporates –
Processing charges will be
double that of applicable to
individuals
For Rural areas –Processing
charges will be 50% that of
applicable to individuals in
respect of loans availed by
borrowers from rural areas from
the Rural Branches.
Additional charges for
deviations from the scheme
norms –One time 25% of the
applicable processing charges
min. Rs.500/- max. Rs.3000/-
Agreement Applicable as per Fair Practice
charges: Code.

Car loan

SBI CAR LOANS:

SBI EZEE CAR LOAN SCHEME (Base Rate 8.25 % p.a.)

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:

Card Rate: 3.00% above Base Rate


i.e. min 11.25% p.a.

For 1st year: discount of 2.00% on


Card Rate, i.e. 9.25% p.a.

For 2nd & 3rd year: discount of 1.00%


on Card Rate, i.e. 10.25% p.a.

For 4th to 7th year: At Card Rate i.e.


11.25% p.a.

For Overdraft:

OD will attract 0.50% more than the


existing rate for Term loans.

Eligibility
To avail an SBI Car Loan, you should be :

• Individual between the age of 21-65 years of age.


• A Permanent employee of State / Central Government, Public Sector
Undertaking, Private company or a reputed establishment or
• A Professionals or self-employed individual who is an income tax
assessee or
• A Person engaged in agriculture and allied activities.
• Net Annual Income Rs. 100,000/- and above.

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:

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


2. 2 passport size photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
4. A copy of passport /voters ID card/PAN card.
5. Proof of residence.
6. Latest salary-slip showing all deductions
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years
for professional/self-employed/businessmen duly accepted by the
ITO wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.

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

Only 0.50% of Loan amount to be paid up front as processing fee, with


minimum: Rs. 500/- and maximum Rs. 10,000
25% of Processing fee will be retained if application is rejected after pre-
sanction survey.

Security

As per Bank's extant instructions.

ADVANTAGE CAR LOAN

The Scheme :

SBI provide the best car loan scheme for you for high end car with loan
amount Rs 5 lacs and above.

SBI ADVANTAGE CAR LOAN SCHEME


SL. PARAMETER
DETAILS
No SCHEME
All New Car Loans to Public of loan amount Rs 5
1 Applicable to
lacs and above
2 Interest Rate At present the following limited period offer will
apply till 31st March 2011:

For Term Loan:

Card Rate: 2.75% above Base Rate i.e. min


11.00% p.a.

For 1st year: discount of 1.75% on Card Rate,


i.e. 9.25% p.a.

For 2nd & 3rd year: discount of 0.75% on Card


Rate, i.e. 10.25% p.a.
For 4th to 7th year: At Card Rate i.e. 11.00%
p.a.

For Overdraft:

OD will attract 0.50% more than the existing


rate for Term loans.

Eligibility

To avail an SBI Car Loan, you should be :

Individual between the age of 21-65 years of age.

A Permanent employee of State / Central Government, Public


Sector Undertaking, Private company or a repu ted
establishment or

A Professionals or self-employed individual


proprietary/partnership firms who is an income tax assessee

Net Annual Income Rs. 2,50,000/- and above.

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:

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


2. 2 passport size photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
4. A copy of passport /voters ID card/PAN card.
5. Proof of residence.
6. Latest salary-slip showing all deductions
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years
for professional/self-employed/businessmen duly accepted by the
ITO wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals

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

Only 0.50% of Loan amount to be paid up front as processing fee, with


minimum: Rs. 500/- and maximum Rs. 10,000
25% of Processing fee will be retained if application is rejected after pre-
sanction survey.

Security

As per Bank's extant instructions.

Enjoy the SBI Advantage:


No Advance EMI;

Longest repayment tenure (7 years);

Lowest interest rates ( there are further concessions for


Corporate Salary Package accounts) ;

Lowest EMI;

LTV 85% of 'On Road Price' of car (includes registration,


insurance and cost of accessories worth Rs 25000), 90% in case
of Corporate Salary Package accounts;

Interest Calculated on Daily Reducing Balance;

Flexibility of payment of EMI anytime during the month ;

Low pre-payment penalty, only 2% ;

Low processing fee (only 0.50% of loan amount); for


Corporate Salary Package accounts, only Rs.500 per application.

Free Accidental insurance ; Optional SBI Life cover;

Overdraft facility available.


Bank of Baroda Car Loans

Features:

• Eligibility: To qualify as an applicant for this loan, you need to


be an employee or a director of a public limited company,
businessman, professional, proprietor / partner in a firm or a
Govt employee.
• Age :
Minimum - 21 years
Maximum – present age + repayment period should not exceed
retirement age in case of salaried person and 65 years in case of
others.

• Loan Amount: The maximum loan amount is Rs. 15 Lakhs, or


twice of your gross annual income if you are salaried, and thrice
of it (average of last 2 years gross annual income) if you are a
businessman, whichever is lower.
• Maximum loans upto Rs 0.25 lac available for installation of
CNG/LPG Gas-Kit in new/old (not more than 5 years) four-
wheeler, if taken separately.
• Repayment :

New Vehicles : 84 months.


Second hand vehicles : 36 months.
CNG/LPG Gas-Kit : 24 months. (If loan sanctioned is only for
Gas-Kit)
• Margin :

New Vehicles : 15%


Second hand vehicle : 40%
Gas kit (new / old vehicle) : 15%

• More Benefits:
 Low processing fee.

 Zero prepayment charges


 Concession of 0.5 % in rate of interest to those who
offer minimum 50% liquid security as collateral.

• Interest Rates:

 Loan upto 5 years- 2.50% above Base Rate i.e.


12.00%
 Loan over 5 years- 3.00% above Base Rate i.e.
12.50%

Processing fees:

 Loan upto Rs.15 lacs - 0.75% (Max. Rs.10,000/-)


 Loan over Rs.15 lacs - 0.50% (Min. Rs.10,000/-, No
maximum limit)
Bank of India

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.

Product BOI Star Autofin Scheme


Eligibility Salaried employees, Professionals, Self-employed,
individuals with high net worth, People engaged in
trade/commerce/ business, Directors of Companies,
Senior Citizens, Pensioners, Farmers, Staff Members,
Retired employees (other than dismissed/
compulsorily retired) of our Bank.
Non-Resident Indians in India – advance to be granted
jointly with Resident Indians (close relative)
(Age of the individual borrower not to exceed 65
years at the time of availing the advance)
Companies, Partnership Firms, Proprietary concern
and other types of Corporate entities.

HUFs not permitted.


Purpose Purchase of two/four wheeler vehicles. For purchase
of used/second hand 2 and 4 wheeler. (age of the
vehicle not to exceed 3 years)
For purchase of light personal vehicles not requiring
heavy duty driving license viz. Jeeps, Vans. Etc.
For purchase of personal vehicles powered by non-
conventional energy, such as electronic/battery
operated small vehicles for urban transport provided
they are registered with RTO. (Such vehicles not
registered with RTO can be financed subject to
specified curtailed limits of advance preferably with
collateral security).
Type of Advance Demand Loan /Term Loan (for 2nd hand vehicles
only Demand Loan)
Quantum of Loan Maximum limits for finance :
1) Individuals (Resident in India) :
= For Indian make vehicles – Rs.25 lacs
=For imported vehicles – Rs.75 lacs.
2) For Companies and corporate entities – Rs.100 lacs
(Can be a fleet of vehicles)
3)Non-resident Indians – Rs.25 lacs.
4)For vehicles run on non-conventional energy and
not required to be registered with RTO.
Two wheelers – Rs.50,000/- (Max.)
Four wheelers – Rs.4.00 lacs (Max.)
The limits are subject to : (a) 24 times of gross
monthly emoluments in case of salaried
employees/pension/ or two times of gross average
annual income as per last 3 yeas I.T. Returns
(b) two times average annual cash accrual (i.e. PAT +
Dep.) as per firms/ companies last 3 years audited
balance sheet, P&L A/c.
© In respect of farmers depending on his repayment
capacity as is applicable in Agriculture loans.
(d) Net take home pay should be atleast 40% of
income (net of proposed EMI).
Rate of Interest (on i. Fully Secured Loans w.e.f. 03.02.2011
daily reducing For Loans upto Rs.10
balance) lacs
a. New Vehicles –
w.e.f. 03.02.2011
Repayment upto 3 years
@3.00% over BR
12.50%
b. New Vehicles –
Repayment over 3 years
@3.50% over BR
13.00%
c. Second Hand Vehicles @4.00% over BR
13.50%
ii. For loans over Rs.10
lacs
a. New Vehicles –
Repayment upto 3 years
@3.50% over BR
13.00%
b. New Vehicles –
Repayment over 3 years
@4.00% over BR
13.50%
c. Second Hand Vehicles @4.50% over BR
14.00%
Repayment A)For Individuals – for new vehicles
(New Vehicles) 4 wheelers – imported vehicles-Max. 7 years.
4 wheelers - Indian vehicles – 6 years.
2 wheelers – max. 5 years.
B)For Corporates/Firms,etc. – Max. 5 years.
C)For second hand vehicles – Max. 3 years.
Security i.Hypothecation of vehicle to be purchased out of
Bank finance.
ii. Charge to be registered with RTO.
iii. Third party guarantee required in the following
cases :
(a) Loans to NRIs – Guarantee of Resident Indian is
required.
b) Vehicles not registered with RTO and for loans to
individuals for limits exceeding Rs.25.00 lacs.
Margin Individuals (including NRIs) : (For new vehicles)
Upto Rs.2.00 lacs - 5%
Rs.2.00 lacs to Rs.10.00 lacs - 10%
Above Rs.10 lacs to Rs.25 lacs - 15%
Above Rs.25.00 lacs - Min. 25%

For Corporate entities/firms, etc. : Min. 25%

For second hand vehicles – Min. 30%


Processing/ a)Loans upto Rs.25,000/- - one time Rs.1,000/-
Handling Charges b)Loans above Rs.25,000/- upto Rs.25 lacs – one time
1.10% of loan amount – Min.Rs.1,500/- & Max.
Rs.5,000/-
c)Loans above Rs.25 lacs – one time 0.25% of the
loan amount Max.15,000/-
Service Tax as applicable.

Processing charges waived for Senior Citizens, staff


members & retired employees of the Bank &
Pensioners drawing pension from the Bank.

For Partnership firms/Corporates –


Processing charges will be double that of applicable to
individuals

For Rural areas –Processing charges will be 50% that


of applicable to individuals in respect of loans availed
by borrowers from rural areas from the Rural
Branches.

Additional charges for deviations from the scheme


norms –One time 25% of the applicable processing
charges min. Rs.500/- max. Rs.3000/-
Agreement charges: Applicable as per Fair Practice Code.

Terms & Conditions apply. Loan at the sole discretion of Bank of


India.
For further information, you may contact nearest branch of the
Bank.

ICICI CAR LOAN

• 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.

Eligibility Criteria for Car Loan

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

Factors affecting your Car Loan Amount


Car Loans from ICICI Bank are extremely convenient, flexible and quick. With more
than 604 channel partners in over 1000 locations, we reach out to millions of
customers and help them realise their dream of possessing a car.

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.

Description of Charges Car Loans


Loan Processing Fees New Car
Gross Loan Processing Documentation
Amt Fee Amt Charges
<2.5 L Rs.2500/- Rs.350/-
2.5 L to 5 L Rs.3100/- Rs.350/-
5 L to 10 L Rs.4000/- Rs.350/-
>10 L Rs.5000/- Rs.350/-

Stamp Duty Actuals


Lower of the two amount given below.
1. 5% of principal outstanding or
Prepayment Charges
2. Interest outstanding for unexpired period of
the loan.
Charges for late payment (loans) 2% per month on the outstanding installment
Cheque Swap Charges Rs. 500/- per transaction
Cheque return charges^ Rs. 400/- per return
Amortisation Schedule Charges Rs. 200/- per schedule
Statement of Account Charges Rs. 200/- per statement
Prepayment Statement Charges Rs. 100/- per statement
Duplicate NOC Charges Rs. 500/- per NOC
NOC for conversion from Petrol to
Rs. 500/- per NOC
LPG/CNG
Revalidation of NOC Charges Rs. 500/- per NOC
NOC to convert from Private to
Rs. 2000/- per NOC
Commercial Registration
NOC to convert from Commercial to
Rs. 2000/- per NOC
Private Registration

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.

Partnership Firms, Societies & Companies :


Income Tax returns of 2 previous financial years along with complete financial/audit
report.

Documents supporting customer information :


Identity Proof, Signature Proof and Address Proofs as per ICICI Bank norms (Our
representative will help you choose suitable documents).

Other documents:
Partnership Firms: Partnership deed and Letter signed by all partners authorising
one partner to execute the required Car Loans documentation.

Societies and Companies: Resolution by Board of Directors (or such managing


body) & Memorandum & Articles of Association (or Society/Trust deed).

Our representative will help you with the formats of documents and the information
required.

Repayment Terms of Car Loan

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.

HDFC CAR LOAN


.

100% finance on car.**


Flexible repayment options, ranging from 12 to 84 months.
Borrow up to 3 times your annual salary (for salaried professionals) and 6
times your annual income (for self employed professionals)*.
Speedy processing - within 48 hours.
Repay with easy EMIs.
Attractive car loan plans - To Fastrack your loan, just choose the
plan that is right for you.
Attractive Interest rates
Hassle-free documentation.
Customer Privileges

 If you are an HDFC Bankaccount holder, we have special rates for you.

 If you have had a Preferred Account or a Corporate Salary


Account with HDFC Bank for more than six months, you can get fast
approvals on your loans with minimal documentation.

 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:

 Minimum age of Applicant: 21 years


 Maximum age of Applicant at loan maturity: 58
years
 Minimum employment: 1 year in current
employment and minimum 2 years of employment
 Minimum Annual Income: Rs 100000 net annual
income
 Telephone: Must at residence

Documents required:

 Proof of Identity:- Passport copy, PAN Card, Voters


Id car, driving licence( Laminated, Recent, Legible)
 Income Proof:- Latest salary slip with form 16.
 Address Proof:- Ration card/Driving licence/Voters
card/passport copy/telephone bill/ electricity bill/Life
insurance policy PAN Card.
 Bank Statement:- Not mandatory

Self Employed

Eligibility Criteria:

 Minimum age of Applicant: 21 years


 Maximum age of Applicant at loan maturity: 65
years
 Minimum employment: Atleast 3 years in business
 Minimum Annual Income: Net profit Rs. 60000 p.a
for standard cars and Rs.100000 p.a. for mid-sized
and premium cars
 Telephone: Must at residence

Documents required:

 Proof of Identity:- Passport copy, PAN Card, Voters


Id car, driving licence( Laminated, Recent, Legible)
 Income Proof:- Latest ITR
 Address Proof:- Ration card/Driving licence/Voters
card/passport copy/telephone bill/ electricity bill/Life
insurance policy PAN Card
 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.

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

Private Limited Company

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
premises

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

Public Limited Company


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
premises

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

Fees & Charges for New Car Loans

Description of charges New Car Loans

6 % of POS for preclosures within 1 year from 1st EMI


5% of POS for preclosures within 13-24 months from 1st EMI
FC Charges 3% of POS for preclosures post 24 months from 1st EMI
No foreclosure allowed within 6 months from date of availing the
car loan
Stamp Duty At actual
Late Payment Penalty 2% per month
Upto 2.5 Lacs : Rs.2325/-
2.51 to 4 Lacs : Rs.3350/-
Processing fees 4.01 to 5 Lacs : Rs. 3800/-
5.01 to 10 Lacs : Rs. 3950/-
Over 10 Lacs : Rs. 4275/-
Cheque swapping charges Rs 500/-
Charges Rs.1000/-
Loan cancellation / re-booking charges
In the event of cancellation, both, cancellation and interest
charges will be borne by the customer.
Duplicate Repayment Schedule charges Rs 500/-
Legal, Repossession & Incidental charges At actual
Duplicate no due certificate / NOC Rs 500/-
Transaction fees for Suraksha Kavach Rs 500/- per case
Loan Reschedulement charges As applicable at the time of reschedulement
Special NOC Rs. 500/- per request
AXIS BANK CAR LOAN
• Loan value calculated as per the on-road-price of the vehicle
• Attractive interest rates
• LTV of upto 85% of the on-road-price on selected models
• Loans available for salaried and self employed individuals, proprietorships and partnership firms
• Special schemes for Axis Bank Salary accountholders
• No income proof schemes available
• Loans offered from Rs. 1 lac onwards
• Loans tenure from 1 year to 7 years.
*Special Benefits available for Priority Banking customers.

All of the above is subject to terms and conditions.

Eligibility
Quick and easy car loans

Salaried Individuals

• Minimum age of applicant: 21 years


• Maximum age of applicant at loan maturity: 58 years
• Income: Minimum income of Rs. 1 Lac p.a. for selected models and Rs. 2 Lac p.a. for oth
• Income eligibility: As per latest salary slip or Form 16
• Employment: Minimum 2 yrs cumulative experience.
Self-employed Individuals

• Minimum age of applicant: 21 years


• Maximum age of applicant at loan maturity: 65 years
• Income: Minimum income of Rs. 1 Lac p.a. to Rs 2 Lac p.a. as per the category of the ca
• Income eligibility - As per latest ITR and computation of income
• Employment: Minimum 3 yrs cumulative experience in business.

Documentation
Quick and easy car loans

Pre-approval Documents1. Age proof


2. ID proof
3. Application form
4. Photograph
5. Residence proof
6. Income proof
7. Bank statement
8. Signature verification proof
9. Proforma invoice

Post Sanction / Pre Disbursement Documentation1. Loan Agreement duly signed


2. Post Dated Cheques (PDCs) / ECS form / Standing Instruction (SI) request
3. Margin money receipt

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

SBI SARAL PERSONAL LOAN


[Print Page

Low interest rates. Further, we charge interest on a daily reducing balance!!


Low processing charges; only 2%-3% of loan amount
No hidden costs or administrative charges.
No security required ……which means minimal documentation…something that you had
always wanted.
No prepayment penalties. Reduce your interest burden and optimally utilize your
surplus funds by prepaying the loan (1% of the loan amount will be charged if you
repay the loan before 6 months)
Long repayment period of up to 48 months.

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:

For existing bank customers


Passport size photograph

From salaried individuals


Latest salary slip and Form 16

Margin
We do not insist on any margin amount.

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.

Base Rate 8.25 % w.e.f. 14.02.2011

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.

Rent Plus Scheme


Centre Loan Amount Rate of Interest
Metro Loan upto Rs. 7.50 Crores 5.25% above
Base Rate,
currently
13.50% p.a.
Above Rs. 7.50 Crores 5.50% above
Base Rate,
currently
13.75% p.a.

Non Metro Loan upto Rs. 5.00 Crores 5.25% above


Base Rate,
currently
13.50% p.a.
Above Rs. 5.00 Crores 5.50% above
Base Rate,
currently
13.75% p.a.

Xpress Credit
Type Facility Rate of
Interest
Demand Loan Check-off from Employer 5.00%
above Base
Rate
Floating,
currently
13.25% p.a

Bank of Baroda Personal Loan


Terms & Conditions

• The beneficiaries of this loan can be:

1. Permanent confirmed employees (minimum 1 year service) of

o Central/State Govt/ /Autonomous Bodies/Public/ Joint sector


undertakings.
o Reputed Limited companies / MNCs & Educational Institutions.

2. Self Employed Professional

Doctors, Architects, Interior Designers, Engineers, Chartered Accountants,


Technical & Management Consultants & practicing Company Secretaries
only, with a stable business (minimum 1-year).

3. Insurance agents subject to

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

Int: Baroda Personal Loan


 6.50% above Base Rate i.e. 16.00%Except for following Purpose
 Loan to Pensioners: 5.25% above Base Rate i.e. 14.75%
 Loan to Defence Pensioners: 5.25% above Base Rate i.e. 14.75%

 Loan for Earnest Money Deposit: 3.25% above Base Rate i.e. 12.75%

Personal Loan

2% (Minimum Rs.500/, No Maximum limit)

Pensioners Loan

Rs.500/- Fixed

Defence Pensioners Loan

Rs.500/- Fixed

Baroda Loan for Laptop


& Personal computer

2%, Minimum Rs.500/-

Star Personal Loans Download document


Product BOI Star Personal Loan Scheme
Eligibility Salaried employees, Professionals and
individuals with high networth, regular
pensioners or family pensioners drawing regular
monthly pension through Branch, Staff
members, retired employees (other than
dismissed/compulsorily retired) of our Bank.
Types of advance Demand/Term Loan/Overdraft (reducible as per
repayment schedule)
Overdraft limit (not reducible as per repayment
schedule) maximum upto
Rs.1 lac to confirmed permanent employees of
Central/State Govt./Reputed Corporates and
PSU's.
Purpose Clean/Unsecured Secured loans
loans
• Repayment of
• Marriage existing
expenses of self, housing loans
son, from other
daughter or a banks/Financia
dependent near l Institutions,
relative. etc.
• Medical • Education of
Expenses self, spouse,
incurred/to be children, near
incurred for self, dependent
spouse, children, relatives.
dependent near
relative. • Purchase of
• For education of consumer
self/spouse/ durables,
children/ near computers,
dependent professional
relatives equipments etc
• For repairs/
renovation/
extension of
existing
house/flat..

• 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.

Collateral security in the form of pledge of


gold/gold ornaments, NSC/Indira Vikas Patra,
Bonds, Assignment of LIC policies, Relief
Bonds etc.
Processing/Handling One time @ 1.10% of loan amount Min.
charges Rs.1000/- and Max. Rs.5000/-
Pensioners: One time @ 1.10.% of loan amount,
min. Rs. 500/- and max. Rs. 1,100/-.

No processing charges for Senior Citizens (60


years & above)
Other Charges Stamp charges for documents : At actuals.
Loan Agreement copy charges: As applicable
For further information you may contact nearest Branch of the Bank
ICICI PERSONAL LOAN
Key Benefits of ICICI BankPersonal Loan
• Loan up to Rs. 10 lakhs
• No security/guarantor required
• Faster processing.
• Minimum documentation
• Attractive rates of interest
• Flexible repayment option of 12-48 months

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

Age 23 yrs. - 58 yrs.

Net Salary Net monthly income - Rs. 20,000 p.m.

Eligibilty ICICI bank Salary Account Holder, Existing ICICI Bank


Personal Loan customer

Years in total job /


2 Year
profession

Years in current
1 Year
residence

Service Charges & Fees


Enclosed find the service charges for an ICICI Bank Personal Loan

• 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.

Description of Charges Personal Loans

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.

Charges for late payment 2% per month

Cheque Swap Charges Rs. 500/- per transaction

Cheque return charges^ Rs. 400/- per return

Rs. 200/- per schedule (inclusive of service


Amortisation schedule charges
tax)

Rs. 200/- per statement (inclusive of service


Statement of Account Charges
tax)

Prepayment/Foreclosure Statement Rs. 100/- per statement (inclusive of service


Charges tax)

Duplicate No Objection Certificate/ No Due Rs. 500/- per NOC (inclusive of service tax)
Certificate Rs 200/- per NOC (inclusive of service tax)

Duplicate Repayment/Foreclosure Rs. 200/- per schedule (inclusive of service


statement 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:

Documents ( Pre Sanction)

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

ICICI Bank Personal Loan

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

Salaried Self Employed


Loan Scheme Personal Loan Personal Loan
Loan Type Term Loan Term Loan
Loan Amount Min. - Rs 50000 Min. - Rs 50000
Max. - Rs 1000000 Max. - Rs 1000000
Tenure Min. - 12 months. Min. - 12 months.
Max. - 48 months. Max. - 48 months.
Interest Rate Min. - 14 % Min. - 14 %
Max. - 17 % Max. - 17 %
Time to Process Loan 3 days 2 days
Fees & charges

Salaried Self Employed

Processing Fee 3% 3%

Cheque Bouncing Charges 200 Rs 200 Rs

Late Payment Penalty 2% 2%

Pre-Payment Charges 5% 5%

Cheque Swapping Charges 500 Rs 500 Rs

Statement Charges 200 Rs/Statement 200 Rs/Statement


Eligibility Criteria

Salaried:

Monthly Income Rs 8000

Age Min.: 25 Yrs. Max.: 58 Yrs.

Documents Required:

ID Proof Yes

Residence Proof Yes

Income Proof Yes

Telephone Yes

Photograph Yes

Bank Statement Yes

Signature Proof Yes

Self Employed:

Monthly Income Net Profit after tax - Rs. 60,000 p.a

Age Min.: 25 Yrs. Max.: 60 Yrs.

Documents Required:

ID Proof Yes

Residence Proof Yes

Income Proof Yes

Telephone Yes

Photograph Yes

Bank Statement Yes

Signature Proof Yes

HDFC PERSONAL LOAN

P
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r
s
o
n
a
l
L
o
a
n

F
e
a
t
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r
e
s

&

B
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f
i
t
s

Borrow up to Rs 15,00,000 for any purpose depending on your requirements.


Flexible Repayment options, ranging from 12 to 60 months.
Repay with easy EMIs.
One of the lowest interest rates.
Hassle free loans - No guarantor/security/collateral required.
Speedy loan approval.
Convenience of service at your doorstep.
Customer privileges

 If you are an HDFC Bank salary account holder, we have a special offer
for you

 If you are an existing Auto Loan or Home Loan customerwith a clear


repayment of 6 months or more from any of our approved financiers or us,
you can get a hassle free personal loan (without income
documentation).

 If you are an existing HDFC Bank Personal Loan customerwith a clear


repayment of 9 months or more, we can Top-Up your personal loan.
Eligibility & Documentation
Salaried Individuals
Self employed (Professionals)
Self Employed (Individuals)
Self Employed (Pvt Cos and Partnership Firms)

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

 Minimum age of Applicant: 21 years


 Maximum age of Applicant at loan maturity: 60 years
 Minimum employment: Minimum 2 years in employment and minimum 1 year
in the current organization
 Minimum Net Monthly Income: Rs. 10,000 per month (Rs. 15,000 in Mumbai,
Delhi, Bangalore, Chennai and Hyderabad & Rs. 12,000 in Calcutta,
Ahmedabad and Cochin)

Documents required:

 Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)


 Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade
licence /Est./Sales Tax certificate)
 Bank Statements (latest 3 months bank statement / 6 months bank passbook)
 Latest salary slip or current dated salary certificate with latest Form 16

Are you Eligible for a Personal Loan? See our Eligibilty calculator.

Self employed (Professionals) include self - employed Doctors, Chartered


Accountants, Architects, Company Secretaries.

Eligibility Criteria

 Minimum age of Applicant: 25 years


 Maximum age of Applicant at loan maturity: 65 years
 Years in business: 4 to 7 years depending on profession
 Minimum Annual Income: Rs. 100000 p.a.

Documents required:

 Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence).


 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
 Qualification proof of the highest professional degree

Are you Eligible for a Personal Loan? See our Eligibilty calculator.

Self Employed (Individuals) include self-employed - Sole proprietors, Partners &


Directors in the Business of Manufacturing, Trading or Services.

Eligibility Criteria

 Minimum age of Applicant: 21 years


 Maximum age of Applicant at loan maturity: 65 years
 Years in business: Minimum of 3 years in current business and 5 years total
business experience
 Minimum Annual Income: Rs. 1,00,000 p.a.

Documents required:

 Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)


 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)
 Other Mandatory Documents(Sole Prop. Decl. Or Cert. Copy of Partnership
Deed,Cert. Copy of MOA, AOA & Board resolution.)

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

 Years in business: Minimum of 3 years in current business and 5 years total


business experience
 Business must be profit making for the last 2 years
 Minimum Annual Income: Rs 100000 p.a.

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)

 Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership


Deed, Certified true copy of Memorandum & Articles of Association (certified
by Director) & Board resolution (Original).)

ees & Charges for Personal Loan

Description of Charges Personal Loan

Salaried - 15.50% to 22.00%


Rack Interest Rate Range Self Employed Businessmen - 17.50% to 22.00%
Self Employed Profession - 14.50% to 15.00%
Upto 2.50% of the loan amount subject to a minimum
Loan Processing Charges
of Rs. 1,000/-
Salaried - No pre-payment permitted until repayment
of 12 EMIs
Prepayment
Self-employed - No pre-payment permitted until
repayment of 6 EMIs
Salaried - 4% of the Principal Outstanding after
repayment of 12 EMIs. For top-up/enhancements - 2%
Pre-payment charges of the Principal Outstanding
Self-employed - 4% of the Principal Outstanding after
repayment of 6 EMIs
No Due Certificate / No Objection Certificate (NOC) NIL
Duplicate no due certificate / NOC Rs 250/-
Solvency Certificate Not applicable
@ 24 % p.a on amount outstanding from date of
Charges for late payment of EMI
default
Charges for changing from fixed to floating rate of
Not applicable
interest
Charges for changing from floating to fixed rate of
Not applicable
interest
Stamp Duty & other statutory charges As per applicable laws of the state
Credit assessment charges Not applicable
Non standard repayment charges Not applicable
Cheque swapping charges Rs 500/- per event
Loan Re-booking charges / Re-scheduling charges Rs 1000/-
Loan cancellation charges Rs. 1000/-
Cheque Bounce Charges Rs 450/- per cheque bounce
Legal / incidental charges At actual

ow much loan can I avail of?


You can avail of a loan from Rs 50,000/- to Rs 15,00,000/- depending on your income and
repayment capacity. You can club the income of your spouse if you wish to increase your
loan amount

How do I repay my Personal loan?


You pay the loan in equated monthly installments. The loan will be paid through post-dated
cheques or through Standing Instructions to debit your HDFC Bank account with the EMI
amount. Calculate how much you will repay each month

What security do I need to provide to obtain this loan?


To obtain the loan, there is absolutely no need to provide any security or collateral.

What are the loan tenure options?


You can repay your loan over a period of 12 to 60 months

How long will it take for me to get my loan?


Once you submit your application form and supporting documents, we shall give approval
within 5 working days provided everything is in order. All loan approvals are at the sole
discretion of the bank.

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.

Loan Type Term Loan

Min Loan 25000.00 Rs

Max Loan 1000000.00 Rs

Tenure 12 - 60 months

Interest Rate 15.50% - 19.00%

Charges:

Cheque Bouncing Charges Rs 450.00


Late Payment Penalty 2.00%
Pre-Payment Charges 4.00%
Cheque Swapping Charges Rs 500.00
Document Retrieval Charges Rs 500.00
Loan Cancellation Charges Rs 1000.00

Processing Fee 2.00%

Time to Process Loan 3 Days

AXIS BANK PERSONAL LOAN


•Loans for salaried individuals of select companies
•Special loans for doctors, chartered accountants, engineers, architects, CS and ICWA
•Loans are available from Rs 1 lac to Rs 20 lacs
•Repayment tenures from 12 to 60 months
•Attractive interest rates
•A balance transfer facility available for those who want to retire any higher cost debt
•Loans available against repayment track record of any existing auto, personal or home loan
•Zero balance SB account facility for personal loan customers
•Simple procedure, minimal documentation and quick approval
*Special Benefits available for Priority Banking customers. To know more, contact you
today!

Personal Power Loans are available at select locations.

Eligibility
Salaried EmployeesSalaried doctors, CAs, employees of select MNCs, public and private
employees including public sector undertakings and central and local bodies:

• Minimum age of applicant: 21 years


• Maximum age of applicant at loan maturity: 60 years
• Minimum Employment: Minimum 1 year of cumulative experience for both salaried i
require 3 years of cumulative experience
• Minimum Net Monthly Income: Rs 15,000 per month
• Maximum loan available: Rs 10 lacs
• Special Offer for employees of select companies
Self-employed DoctorsSelf-employed doctors include self-employed MBBS or BDS and

• Minimum age of applicant: 24 years to 65 years at the time of loan maturity


• Experience (doctors): 2 years continuous employment
• Minimum annual income: Rs 2.40 lacs per annum gross receipts (Rs 1.80 lacs per an
• Maximum loan available: Rs 20 lacs for self employed doctors
• Special scheme for Self Employed doctors

Documents Required:

Documents Salaried Individuals


Identity proof Passport or voter's card or driving licence or PAN card and photograph
Income proof Latest salary slip showing all deductions or Form 16 along with current dated salary certific
Residence Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card B
proof address/Passport(Valid)- provided the passport address is present address mentioned in appl
Proof of Latest bill of landline or mobile or WLL stating name of borrower or address of borrower
telephone
Guarantor Optional

• 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

Interest Rates & Charges

Rate of Interest 14.00% to 21.00%

Loan Processing Charges 2.00% + Service Tax as appl

Cheque Bounce Charges Rs. 500 per cheque bounce +

Cheque/Instrument Swap charges Rs.500 per instance + Servic

Foreclosure Charges Nil

Default Interest Rate @24.00% per annum i.e 2%


installment

Duplicate Statement Issuance Charges Rs 250 per instance + Servic

Duplicate Amortization Schedule Issuance Charges Rs 250 per instance + Servic

Issuance Charges for Photocopy of Loan Rs 250 per instance + Servic


Agreement/Documents

*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

Car Loan Ratings


Rating
Parameters scale
1 2 3

Interest rate up to 11 11 to 13 % above 13%


Processing
fees below 0.5% 0.5 to 1% above 1%
Margin below 15% 15 to 20% above 20%
Prepayment
penalty 0% 0 to 2% above 2%
Guarantor No Yes -
Desk at dealer's
Ease of loan place Tie-up none of the two.
Return of
Income Not Required Upto 2 yrs. Above 2 yrs.
Processing
time Below 5 days 5 to 10 days Above 10 days
Tenure
period Upto 7 yrs. Upto 5 yrs. Upto 3 yrs.
old Car Int rate of New
Loan (ROI) Same as new car car + 2% Higher than all
Personal Loan
Ratings
Rating
Parameters scale
1 2 3

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.

(It is a link for all the calculations nd ratings.)


Calculation of home loan.

Suppose a person wishes to take a loan of 20 lacs.for the purpose of


purchasing a new house for the tenure of 20 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:
 Public Sector Bank

A)State Bank of India


Given:
Loan amount Rs. 20,00,000
Margin 10%
Processing Fee Rs.5000
Interest Rate 9.75%

As, the margin if 10% , he has to make a downpayment of Rs. 200000


and thus actual loan amt. given by bank would be Rs. 1800000.
Particulars Amts.
EMI 17073.3

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%

As, the margin if 20% , he has to make a downpayment of Rs. 400000


and thus actual loan amt. given by bank would be Rs. 1600000.
Particulars Amts.
EMI 16788.10

Particulars Amts.
Principle 1600000
+Interest 2429144
+Processing fee 8800
Total Cost Rs. 4037944

18886.6125(240)=4532787+9900=4542687

 Private Sector Bank

A)ICICI Bank(Floating rate)

Loan amount Rs. 20,00,000


Margin 20%
Processing Fee 0.5%
Interest Rate 9.5%

As, the margin is 20% , he has to make a down payment of Rs.


400000 and thus actual loan amt. given by bank would be Rs.
1600000.
Particulars Amts.(Rs.)
EMI 14914.1

Particulars Amts.(Rs.)
Principle 1600000
+Interest 1979384
+Processing fee 8000
Total Cost Rs. 3587384

16778.36(240)=4026806.4+9000= 4035807

A)ICICI Bank(Fixed rate)

Loan amount Rs. 20,00,000


Margin 20%
Processing Fee 0.5%
Interest Rate 14.5%

As, the margin is 20% , he has to make a down payment of Rs.


400000 and thus actual loan amt. given by bank would be Rs.
1600000.
Particulars Amts.(Rs.)
EMI 20479.96

Particulars Amts.(Rs.)
Principle 1600000
+Interest 3315190.4
+Processing fee 8000
Total Cost Rs. 4923190.4

23039.955(240)=5529589.2+9000=5538589.2

B) HDFC Bank (fixed rate)

Loan amount Rs. 20,00,000


Margin 15%
Processing Fee 0.5%
Interest Rate 11.5%

Particulars Amts.
EMI 18129.30
Particulars Amts.
Principle 1700000
+Interest 2651032
+Processing fee 8500
Total Cost Rs. 4359532

19195.7(240)=4606975+9000=4615975

HDFC Bank (floating rate)


Loan amount Rs. 20,00,000
Margin 15%
Processing Fee 0.5%
Interest Rate 9.75%

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

Axis Bank (floating rate)


Loan amount Rs. 20,00,000
Margin 20%
Processing Fee 1%
Interest Rate 9.5%

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

Bank of Baroda Floating Rate- 4322001.6

Bank of India Floating Rate -4542687

ICICI Bank Floating Rate- 4035807


Fixed Rate- 5538589.2

HDFC Bank Floating Rate- 4106593


Fixed Rate- 4615975

Axis Bank Floating Rate- 4044807


Fixed Rate- 5390009.1
Explaination: In order to make comparsion, we have taken a loan
amount Rs.1800000 as base .However, from the above table if we
compare among the public sector banks then SBI is more cost
effective and in case of private sector banks ,if we see floating rate
then ICICI is more cost effective and in fixed rate , HDFC Bank is
more cost effective and as compare to all other banks SBI is more cost
effective in case of Home Loan.

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:

A) State Bank of India


Given:
Loan amount Rs. 500000
Margin 15%
Processing Fee 0.5%
Interest Rate 11%

As, the margin if 15% , he has to make a downpayment of Rs. 75000


and thus actual loan amt. given by bank would be Rs. 425000.
Particulars Amts.
EMI 9240.53

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%

As, the margin if 15% , he has to make a downpayment of Rs. 75000


and thus actual loan amt. given by bank would be Rs. 425000.
Particulars Amts.
EMI 9453.89

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%

As, the margin if 10% , he has to make a downpayment of Rs. 50000


and thus actual loan amt. given by bank would be Rs. 450000.
Particulars Amts.
EMI 10238.88

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)

Loan amount Rs. 5,00,000


Margin 10%
Processing Fee 3100rs.
Interest Rate 11.25%

Particulars Amts.
EMI 9840.29

Particulars Amts.
Principle 450000
+Interest 140417.4
+Processing fee 3100
Total Cost Rs. 593517.4

HDFC CAR LOAN


Loan amount Rs. 500000
Margin 10%
Processing Fee 2%
Interest Rate 10%
Particulars Amts.
EMI 9561.17

Particulars Amts.
Principle 450000
+Interest 123670.2
+Processing fee 9000
Total Cost Rs. 582670.2

AXIS BANK(in process)


Loan amount Rs. 500000
Margin 15%
Processing Fee 3860
Interest Rate 9.25%

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

Bank of Baroda Floating Rate- 570420.9

Bank of India Floating Rate -584878.2

ICICI Bank Floating Rate-


Fixed Rate- 560544.211

HDFC Bank Floating Rate-


Fixed Rate- 550299.6333

Axis Bank Floating Rate-


Fixed Rate-

Explaination: In order to make comparsion, we have taken a loan


amount Rs.425000 as base .However, from the above table if we
compare among the public sector banks then SBI is more cost
effective and in case of private sector banks ,if we see floating rate
then ICICI is more cost effective and in fixed rate , HDFC Bank is
more cost effective and as compare to all other banks SBI is more cost
effective in case of Home Loan.
Personal Loan

Suppose a person wishes to take a loan of 2 lacs.for the purpose of


purchasing a new house for the tenure of 3 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:

A) State Bank of India


Given:
Loan amount Rs. 200000
Margin -
Processing Fee 3%
Interest Rate 16.75%

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

A)ICICI Bank(Fixed rate)

Loan amount Rs. 200000


Margin 0%
Processing Fee 2%
Interest Rate 14.5%

Particulars Amts.(Rs.)
EMI 6884.20

Particulars Amts.(Rs.)
Principle 200000
+Interest 47831.2
+Processing fee 4000
Total Cost Rs. 251831.2

B) HDFC Bank (fixed rate)


Loan amount Rs. 200000
Margin 0%
Processing Fee 3%
Interest Rate 14%

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

Loan amount Rs. 200000


Margin 0%
Processing Fee 2%
Interest Rate 14%

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

Bank of Baroda Floating Rate- 257130.76

Bank of India Floating Rate - . 250031.2


ICICI Bank Floating Rate-
Fixed Rate- 251831.2

HDFC Bank Floating Rate-


Fixed Rate- 252079.08

Axis Bank Floating Rate-


Fixed Rate- 250079.08

Explaination: In order to make comparsion, we have taken a loan


amount Rs.200000.However, from the above table if we compare
among the public sector banks then Bank of India is more cost
effective and in case of private sector banks ,Axis Bank is more cost
effective and if we compare to all banks,Bank of India is more cost
effective in case of Personal Loan.

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.

1. Have you ever taken any loan?


Yes No

2. Which recent loan have you taken? (Tick any one.)

Home Loan Car Loan Personal Loan Others

3. From which bank have you taken loan?

Public Sector Bank (Name it)

Private Sector Bank (Name it)

4. How did you come to know about the financial institution offering
the loan?

□ Phone □ Friends / Relative

□ Internet □ Brochures

□ Television □ Press
5. What is your opinion regarding the loan procedure?

Opinion Complex Difficult Simple Can’t Say

6. What is your criteria for selecting loans? (rank the following)

Easy Flexible Lower


Lower Rate Quality Of
Criteria Availabilit Repaymen Processing
Of Interest Service
y t Period Fees

Rank Them

7. Which type of interest rate have you preferred?


□ Fixed

□ Floating

□ Adjustable

8. Mark your Agreement/ Dis-agreement on the following


statements.

Totally
Disagre Totally
Opinion Disagre Neutral Agree
e Agree
e

Easy availability is an important


factor for the loans
Reputation of banking
institution is to be taken into
consideration while selecting
loan.

Prepayment penalty is to be
considered while analyzing a
loan scheme.

Processing fee is to be
considered while analyzing a
loan scheme.

9. Which tenure is preferred by you?

□ 1-5 years □ 5-10 years □ 10-15 years


□ 15-20 years

□ Above 20

10. What margin is preferable to you, charged by the bank?

□ Below 15 % □ 15 to 20% □ Above 20%

11. Would you recommend your bank to others for loans? Explain
with reason..

_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_________________________________________________________________________

Personal Details:
 Name : - ___________________

 Gender: - □ Male □ Female

 Age Group:
□ < 25 □ 25-44 □ 45-64 □ 65 and
above

 Occupation:-

□ Student □ Businessman □ Homemaker


□ Salary Employed □ Professionals □ Others

 What is your salary/income structure slab (Per year)?


□ <1,60,000

□ 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

Q - 2 Which recent loan have you


taken?
Home Loan 44
Car Loan 38
Personal
Loan 16
Others 2

Q - 3 From which bank have you taken loan?


Public Sector 54
Private sector 46
Q -4 How did you come to know about the financial institution offering the
loan?

Phone 2
Internet 12
Television 6
Friends/Relati
ves 44
Brochures 34
Press 0

Q - 5 What is your opinion regarding the loan procedure?

Complex 26
Difficult 6
Simple 64
Can't Say 4

Q - 7 Which type of interest rate have you preferred?


Fixed 36
Floating 56
Adjustable 8
Q - 9 Which tenure is preferred by you?
1 - 5 years 32
5 - 10 years 24
10 - 15 years 20
Above 20
years 22

Q - 10 What margin is preferable to you charged by the


bank?
Below 15% 32
15 to 20% 68
Above 20% 0

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