DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Md. Qudeer Rehman
Designation : Head, CCP
Branch : DCCP
Institute : KDR, GPT Wanaparthy
Year/ semester : VI semester
Subject : Banking
Subject code : CCP-604(B)
Topic : Marketing of banking products
Duration : 50 mts
Subtopic : Preference for banking products
Teaching aids : Diagrams

CCP604(B).89 1
Objectives
On the completion of the period you would
able to
 Explain the banking products and the rules and
regulations for loaning the products
 Differentiate between various products
 Explain the RBI guidelines for the marketing of
products
 Explain the comparison on the rate return of interest
and the disposable income of customer
CCP604(B).89 2
Recap
 Marketing strategies of modern banking products
 The banking products to be marketed housing,
Personal, Educational and Insurance activities
 The techniques and rate of interest to be
charged under RBI guidelines
 The various banks adopt a unified policy for
sanctioning loans
 The social service customization of banking
services

CCP604(B).89 3
Modern banking products to be offered
in loan

Housing Loans
 Housing loans as per income of customer the disposal
income after commitment of domestic expenses
 Rate of interest in medium range
 Ear-marked funds are limited restrictions apply

CCP604(B).89 4
Modern banking products to be offered in
loan

Personal loans
 Purchase of domestic appliances
 Easy rules and more number of loans
 To improve living conditions
 More funds are available with less interest

CCP604(B).89 5
Educational Loans
 Only professional studies like B. Tech. get less
interest.
 Insurance loans
 Collection of bills cheques and DDs
 Payment of bills cheques DDs for insurance
 Banking activities less serviceable charges

CCP604(B).89 6
 Insurance activities: more
secured liability continuous
transaction
After routine business plus service
thorough charge
comparis
on Personal loans: more
the secure fair interest more
banks funds more no of loans
give
preferen
ce Housing loans: medium
in the interest more security
following less funds
order
Educations loans: less
customers apply less
interest less funds
CCP604(B).89 7
RBI guides to banks for marketing
products
 Preference for security for principal loan amount and
return of interest amount
 Development of consumer and his house
 Under social responsibility of banker to extend
helping hand for customers development
 Preference will be given for insurance activities first
and then domestic appliances products
 Housing loans for acquiring the easy residence

CCP604(B).89 8
Summary:
 The various products to be offered by the banker
on principles of services marketing
 The comparison of various products safely
margin for loans amount, return of interest and
minimums risk
 Observance of RBI guidance in sanctioning of
banking products
 The allocations of funds for various products to
be met within time bound programs

CCP604(B).89 9
Assignment
2. Explain any six guidelines issued by the RBI to
the national bankers in offering banking
products
3. Explain any six points of safely principal loan
amount and interest charged by banker
4. Explain the followings in four lines:
a) social responsibility of banker
b) Loans of domestic appliances
c) Insurance activities
CCP604(B).89 10
Frequently asked questions
2. Explain any eight points on which the RBI
issues uniform guide line to national bankers
for loans under banking products
3. Answer in four sentences:
a) Loans for domestic appliance
b) Education/professional loans
c) Housing loans
d) Explain any six advantages to get housing
loans from a nationalized bank
CCP604(B).89 11