Analysis of Home Loan Processing At UTI Bank

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AHEAD
Objectives Overview of Indian Banking Sector Leading Banks in India Line of Products About UTI : Promoters, Mission & Values Procedure for distribution of Home Loans Funding Terms & Conditions Loopholes in the System Suggestions for improvement Reference & Source

OBJECTIVES OF THE PROJECT

To know the overall scenario of banking sector. To know the working of the UTI - RAC. To do a detailed analysis of procedures adopted for processing of home loan. To find out loopholes, if any, in the working of the organisation. To find out the ways of improving the existing procedure of processing of home loan. To develop ways of generating more business for the organisation.

LEADING BANKS IN INDIA

State Bank of India ICICI Bank Centurion Bank of Punjab HDFC Bank Axis Bank, HSBC, IDBI

ABOUT UTI BANK :

Promoters UTI, LIC & GIC Customer Service and Product Innovation tuned to Mission diverse needs of individual and corporate clientele. Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices. Values
Customer Satisfaction Maximisation of Stakeholders value Success through Teamwork, Integrity and People

PROCEDURE FOR HOME LOAN DISTRIBUTION

Determination of Eligibility Credit Appraisal Technical Appraisal Legal Appraisal

DETERMINATION OF ELIGIBILITY
Salaried Individuals
Government employees Employees of reputed private organisations

Professionals
Doctors, Engineers, Architects C.A., C.S., Cost Accountants Management Consultants

Self-employed Individuals

CREDIT APPRAISAL
Income Age Assets & Liabilities Servicing record in respect of other institutional borrowing Savings history / capacity Number of dependants Income & expenditure pattern

TECHNICAL APPRAISAL
Layout & Approval Plan Commencement Certificate, if applicable Estimate of cost of construction NOC for mortgage of property in case the purchase is from the development authority or any govt. allotted scheme.

LEGAL APPRAISAL
Availability of all property documents
Allotment Letter / Sale Deed / Transfer Deed Revenue Receipts Complete chain of title

Non-encumbrance Certificate Verification of documents by an experienced lawyer

Funding

Construction (85% funding)

Land Purchase (75% funding)

Constructed property (85% funding)

Purchase +construction (85% funding)

Take over /
balance transfer

(75% funding)

TERMS & CONDITIONS

REPAYMENT SECURITY INSURANCE PROCESSING FEES PENALTY FOR EARLY CLOSURE Repayment period not to exceed 20 years Equitable Mortgage Free fire & personal accident insurance cover 1% of the loan amount 2% in case of takeover Otherwise : Nil

LOOPHOLES IN THE SYSTEM

Formalities and requirement for the approval of loan are many which causes delay in loan sanctioning The policies & procedures for getting loan are complicated. Using Excel Worksheet causes delay in the procedure.

SUGGESTIONS FOR IMPROVEMENT

Use of specialized banking software instead of excel worksheet. Cutting down channel for approval of loan. Regular checking of files to sort out pendency . Tie-up with Builders as well as with Government organizations. Workshop for various categories like salaried, employed, self employed.

LAST BUT NOT THE LEAST