Group-8 Mujtaba Mir & Abhik Chakraborty -Documentation & PPT Akshay, Kevin and Avinash Presentation Ankush,

Nishant and Pulkit - Research

Barclays -Introduction
Extensive international presence in Europe, the USA, Africa and Asia. Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, lends, invests and protects money for over 49 million customers and clients worldwide.

Idea Feasibility- Based on Education Loan Domain

Education Loan Sector:
Booming sector

Growth Rate of 12% As of October 2011 , the education loans taken amounted to 48,965 crs. Attracting student should be marketed as a unique functional account . Reinforce the bank's status as the leader in innovation.

Gaps found
Exit from retail banking No products for education sector. No micro finance options. Loan approval process( inconvenience in

documentation )
No Education / Career counseling especially in abroad career opportunities.

Lack of convenient repayment options.

Barclays India Can Barclays do it?

Barclays commercial customers operation started in November 2006. Barclays Corporate, India is focused on servicing the needs of:
o large Indian corporates o the corporates in the SME sector o Indian companies looking to grow overseas.

Barclays Indias Product Mix

Personal Banking:
Loans Accounts and Deposits NRI Banking Credit Cards Self Banking Premier Banking

Corporate Banking

Loans & financing Deposits Payments and Cash Management Trade Finance Treasury Solutions

Current Players in Education Industry

Currently there are many banks which provide educations like:
SBI HDFC ING

Canara Bank
ICICI And many more.

Design Linked to Market Wants

a. Loan cap raised. b. Loan tenure increased. c. Hassle free service. d. Premium services unlike any other:
I. II. III. International Repayment options. International Student Debit Card Tie up with existing national offers

STP

Barclays Edu Loan- A Prototype of the Idea

Education Loan up to 75 lakhs for foreign education only.

Loan available up to a tenure of 10 yrs.

Loan repayment after 1 yr. of course completion or 6 months after obtaining employment which ever is earliest Tax rebate on entire interest amount paid towards education loan. Provide free accounts to students opting for UK and USA. Lower rates (-.25%) for premier institutes( e.g. AMBA Accreditation)

Barclays Edu Loan- Service Attributes

( Comparison with other Education Loans)

Rate of interest will be floating rate of interest linked to Benchmark Prime Lending Rate (BPLR + 1%) The interest will be calculated using Simple Interest Rate Tax Rebate: Income tax benefit for an education loan is available under section 80E of the income tax act Facilitate instant funds transfer. Provide cheque book and international debit card. Loan Repayment within 7 years extendable up to 10 yrs. Repayment in abroad locations/ foreign exchange .

Education Loan Service

Spread is determined on the risk profile Vary on account of a number of factors such as student's academic background Employability of the selected course from a selected college and country of study Financial strength of the co-borrower Loan repayment capability Credit history Collateral offered or not

New Product Idea: Education Loans Strategy( Promotion )

Brand Loyalty: usage during student life will make these students a loyal customer. Up gradation to premium services after completion of studies. Targeting this generation to build an image for the

next.

Eligibility
Borrower must be an Indian citizen. Co-borrower must be an Indian citizen. Borrower must be 18 years of age or older. Co-borrower must have a bank account in any bank in India with check writing facilities. Confirmed admission in the colleges before disbursement. Collateral land ,house , bank account

Test Marketing
Approach existing Barclays customers.

Test Responses and rethink on services included if necessary.

Talk to education consultancy firms about the viability of service.

Ways to develop Business:

Foreign Language Coaching Centers

TOEFL/IELTS Exam Centers

SAT/GRE/GMAT Coaching Centers Tie up with Airlines. Packaged Deals Tie up with Foreign Calling Cards.