Home Loan Comparison and Credit Rating at Kvb

8/12/2019 Home Loan Comparison and Credit Rating at Kvb

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A PROJECT REPORT

ON

HOME LOAN COMPARISON AND CREDIT RATING

AT

Karur Vysya Bank Ltd

SUBMITTED TO

UNIVERSITY OF PUNE

BY RUCHITA

SINGH MBA

(FINANCE) (2004-

2006)

VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE


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TABLE OF CONTENTS

SNO TOPIC PAGE NO

1. Executive Summary 1

2. Objective of the roject 2

!. "om#any rofi$e !%&

& 'ntroduction to the to#ic (ome Loan

and "ustomer )atin*

+%1,

+. (ome Loan Scheme of -he K)/) V0S0

BK Ltd.

1%13

,. (ome Loan Scheme of (45" Bank Ltd.6 '"'"' Bank Ltd.6

StateBank Of 'ndia6 Karur Vysya Bank Ltd6 Karnataka 27%!!

Bank Ltd. and South 'ndian. Bank Ltd.

. S8O- na$ysis of K)/) V0S0 BK Ltd. !&%!+

9. "ritica$ na$ysis !,%+7

3. "ustomer )atin* +1%+9

17. )ecommendation +3

11. "onc$usion ,7

12. Bib$io*ra#hy ,1

.


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Executive Summary


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E!ECUTIVE SUMMARY

-hese days housin* finance is in the $ime$i*ht o$d #rivate sector banks6 ne: #rivatesector banks and even #ub$ic sector banks have become extreme$y active in this fie$d6there is no doubt :hat so ever that there is tremendous shorta*e of housin* in ourcountry. 8ith the interest rates on housin* $oans at historica$ $o: a$on* :ith sim#$ified#rocedure of obtainin* it. ;any #eo#$e are :i$$in* to take home $oans today. 8ith thene: thrust inthe retai$ se*ment by the bankin* community on the :ho$e6 this sector hasbecome attractive both for the $enders and borro:ers.

"ustomers )atin* is carried by banks before sanctionin* $oan to customers. "ustomer)atin* ref$ects the borro:er s accountabi$ity6 ex#ected ca#abi$ity and inc$ination to#ay interest and #rinci#a$ in a time$y manner.

'n this #roject ' have studied in detai$ about (ome Loan scheme of banks andthen com#ared them :ith each other. ' have a$so studied in detai$ about customerratin* undertaken by -he /nited 8estern Bank Ltd.

t the end ' have *iven su**estion to -he /nited 8estern Bank Ltd re*ardin* chan*es:hich can be made in the (ome Loan scheme and activities :hich can be undertakento #romote this #roduct.


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Objective Of -he roject


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OBJECTIVE OF THE PROJECT

-o understand the term (ome Loan.

-o understand the im#ortant factors re$ated to (ome Loan Scheme.

-o study the (ome Loan Scheme of -he Karur Vysya Bank Ltda$on*:ith other $eadin* banks.

-o study the "ustomer )atin* of -he Karur Vysya Bank Ltd. :ith referenceto

(ome Loan.

-o com#are the (ome Loan Scheme of $eadin* banks in 'ndia.

.


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'ntroduction -o -he -o#ic


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HOUSING FINANCE

Of $ate6 housin* finance has not on$y become #o#u$ar6 but the #rocedure for obtainin* a$oan has become so sim#$ified that housin* $oans are easi$y avai$ab$e. -his may be

attributed to the chan*e in the housin* #o$icy of both the "entra$ and State *overnments.

redeemin* feature of 'ndian housin* finance is the recent entry of commercia$ bankin*

in a bi* :ay.

(ousin* and $and deve$o#ment occu#y a #ecu$iar #osition in 'ndia so far as the state and

centra$ *overnment are concerned. Both the *overnments have the #o:er to make

enactments on the subject of housin* and $and. s a resu$t6 the housin* #o$icy in 'ndia

has been :ide and varied.

HOUSING

(ousin* means the houses or conditions that #eo#$e $ive in .

HOUSING FINANCE

set of a$$ financia$ arran*ements hat are made avai$ab$e by (ousin* 5inance

"om#anies


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NEW DYNAMICS

n im#ortant deve$o#ment in the housin* finance business has been the entry of ne:

#$ayers. -he re$ative$y $o: risk in a housin* #ortfo$io has s#urred a ne: entrance inthe $ast fe: years. r*uab$y6 the most si*nificant entrant has been '"'"' (ome5inance.

-he entry of ne: #$ayers and the conse>uent increase in com#etition has been

fo$$o:ed by an interestin* trend. -he interest rate of most housin* finance com#anies


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Sources of finance $ike (5" s and banks

E;' ca$cu$ation methods

. THE LOAN AMOUNT

-he amount of $oan that any (5" decides to #rovide to a $oan seeker de#ends on the

fo$$o:in* variab$esA

"ustomers re#ayment ca#acity

)ate of interest char*ed

-erm of $oan

)e#ayment is done throu*h E;' 6 :hich inc$udes #rinci#$e and the interest . s a ru$e 6

an (5" fixes the E;' bet:een !7 &7 #ercent of the customer s *ross month$y income6

or +7 #ercent of the net month$y income.

LOAN COST

-he effective cost of the $oan de#ends on the ty#e of method used by banks or finance

com#anies. Based on the method6 the #rinci#a$ com#onent6 :hich is #aid month$y6 isdeducted from the outstandin* #rinci#a$ amount. -he t:o methods6 :hich banks and

finance com#anies *enera$$y fo$$o: areA

Monthly ret yte!

/nder this system6 the #rinci#a$ amount is deducted every month from the outstandin*amount6 and the interest for the fo$$o:in* month is ca$cu$ated on the outstandin*

#rinci#a$.

Loan mount


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Ann"#l ret yte!

/nder this system6 a$thou*h the #rinci#a$ amount is #aid every month6 it is accounted

on$y at the end of the year.

-his is i$$ustrated as fo$$o:sA

Loan mount


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-hese days (ousin* 5inance is in the $ime$i*ht. ot $on* a*o the (ousin* 5inance meant

(45". 't is no more so. Virtua$$y a$$ banks $ed by e: rivate Sector Banks and even

ub$ic sector Banks have become extreme$y active in this fie$d. -here is no doubt:hatsoever that there is tremendous shorta*e of housin* in our country. 8ith the interestrates on housin* $oans at historica$ $o:6 many #eo#$e are :i$$in* to take $oans today. -he

banks on the other hand are f$ushed :ith funds due to $ess off take of credit by the

cor#orate sector6 due to the recessionary conditions #revai$in* for the #ast fe: years.

Second$y the rate of defau$t in this sector is #retty $o:6 makin* these $oans very attractive

for the banks. 8ith the ne: thrust in the retai$ se*ment by the bankin* community on the

:ho$e6 this sector has become attractive both for the $enders and the borro:ers. 8hat has

a$so he$#ed is that the rea$ estate rates seem to have stabi$i@ed.

-:o acts name$y the /rban Land "ei$in* ct and the )ent "ontro$ ct has a *reat

im#act on this sector.

-he /L") :as enacted in 13, :ith the objective to make more $and avai$ab$e for the

construction of houses. -his :as sou*ht to be achieved by #reventin* concentration of

urban #ro#erty in the hands of fe:. But in fact this $e*is$ation ended u# in chokin* u# the$and su##$y. ccordin* to the ;inistry of /rban ffairs out of the tota$ sur#$us $and of

26276,& hector identified6 on$y 136777 hectors have been taken #ossession of by thevarious state *overnments. -his has $ed to a scarcity of affordab$e $and for residentia$construction. )ecent$y the "entra$ *overnment has re#ea$ed this act and has advised thestate *overnments to a$so do the same. (o:ever a$$ state *overnments have not acted onthis as yet.

-he )ent "ontro$ ct a$so had a simi$ar adverse im#act on the housin* industry. -his $a:

favors the tenant6 and this discoura*es investment in housin* sector for $ettin* the

#ro#erty on rent or $ease. /nder this act the o:ner runs the risk of the #ro#erty bein*

taken over by the tenant at some sta*e. Some states have recent$y amended their )ent

"ontro$ cts6 but a $ot sti$$ needs to be done. /n$ess the investor *ets market re$atedreturns on his investments in this sector and un$ess he has the ri*ht to re#ossess the

#ro#erty from the tenant6 the investor is not $ike$y to make investments in this sector.

(osin* finance is offered by many s#ecia$i@ed (ousin* 5inance "om#anies a##roved by

the re*u$ator ationa$ (ousin* Bank6 a subsidiary of the )eserve Bank of 'ndia. 't is a$so

offered by #ub$ic and #rivate sector banks a$on* :ith many co%o#erative banks.

-he (B s#ecifies various norms to be fo$$o:ed by the (5"s


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O"#$%&'$ *+ NHB,

1. -o #romote6 estab$ish6 su##ort or aid in the #romotion6 estab$ishment and su##ortof housin* finance institutions.

2. -o make $oans6 advances or render any other form of financia$ assistance

:hatsoever to housin* finance institutions6 schedu$ed banks6 and to any authority

estab$ished under any centra$Cstate en*a*ed in s$um c$earance.

!. -o subscribe to or #urchase stocks share bonds debentures and securities of every

other descri#tion.

&. -o *uarantee the financia$ ob$i*ations of these institutions and under:rite their

issues of securities.


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CUSTOMER RATING

-he main objective of this is to assess the a##$icants sustained re#ayment ca#acity overthe #eriod. -he main #oints that are considered areA

'ncome

*e

cademic back*round and Em#$oyment stabi$ity

5ami$y Back*round

ssets and Liabi$ities

Servicin* record in res#ect of other institutiona$ borro:in*s

Savin* history and ca#acity

umber of de#endents

'ncome and ex#enditure #attern

D*%.$/& R$'1$ +*1 S%1&'/3,

S51'$ C5A

Sa$ary certificate

"o#y of ration cardCe$ectricity bi$$

)ent recei#t if a##$icab$e.

F*1 S$5+ E.5*3$A

A "1'$+ '/&1*%&'*/ &* "'/$71*+$'*/

Ba$ance Sheet and rofit and Loss account6 du$y certified by a charteredaccountant.

'ncome tax C :ea$th tax return for the #ast three years.

"o#ies of cha$$ans of advance tax.

ssessment orders.

Sho# and Estab$ishment ct certificate of re*istration.

)ation card C E$ectricity bi$$ C )ent recei#t


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L$85 A1'5A fter "ustomer )atin* is done6 $e*a$ a##raisa$ is done :herein a$$

other documents $ike ori*ina$ tit$e deeds6 revenue recei#ts6 encumbrance uitab$e mort*a*e in favor of the (5" by sim#$e de#osit of tit$e deeds.

T$%9/'%5 A1'5A -he -echnica$ officer :i$$ verify the ori*ina$ documents and

counter check a$$ the furnished information. 5o$$o:in* documents are *enera$$y re>uiredA

Layout $an

##roved $an

o%encumbrance certificate

"$earance under /rban Land cei$in* ct

"ommencement certificate

detai$ estimate of cost of construction.


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E!PLANATION OF TERMS

EMI

E;' uated ;onth$y 'nsta$$ment= is the amount #ayab$e to the $endin* institution every

month6 ti$$ the $oan is #aid back in fu$$. 't consists of a #ortion of the interest as :e$$ asthe #rinci#a$.

EMI %5%5&'*/

E;' 5ormu$aA $ x r D


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'n this system6 the #rinci#a$6 for :hich you #ay interest6 reduces every month as you #ay

your E;'.

D#'ly Re%"&'n(

'n this system6 the #rinci#a$6 for :hich you #ay interest6 reduces from the day you #ay

your E;'. E;' in the dai$y reducin* system is $ess than the month$y reducin* system.

F';$ 1&$ *+ '/&$1$&

Some institutions have a fixed rate of interest6 :hich means the rate of interest remains

unchan*ed for the entire duration of the $oan. -his means you do not benefit6 even if rates

of interest dro# in the market.

F5*&'/8 1&$ *+ '/&$1$&

-his is the rate of interest that f$uctuates accordin* to the market $endin* rate. -his means

you stand the risk of #ayin* more than you bud*eted for in case the $endin* rate *oes u#.

T9$ *&9$1 %*& &9& 553 %%*./3 H*.$ L*/

(ome $oans are usua$$y accom#anied by the fo$$o:in* extra costsA

Processing ChargeA 't s a fee #ayab$e to the $ender on a##$yin* for a $oan. 't iseither a fixed amount not $inked to the $oan or may a$so be a #ercenta*e of the

$oan amount. -he $oan amount re>uired by you cannot be $ess than the #rocessin*fee.

Pre-payment PenaltiesA 8hen a $oan is #aid back before the end of the a*reedduration6 a #ena$ty is char*ed by some banksCcom#anies6 :hich is usua$$ybet:een 1H and 2H of the amount bein* #re%#aid.

Commitment FeesA Some institutions $evy a commitment fee in case the $oan isnot avai$ed of :ithin a sti#u$ated #eriod of time after it is #rocessed andsanctioned.

Miscellaneous CostsA 't is >uite #ossib$e that some $enders may $evy a

documentation or consu$tant char*es.

T9$ 1$3.$/& $1'*


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)e#ayment #eriod is the #eriod durin* :hich $oan is to be re#ayed.)e#ayment o#tionsran*e *enera$$y from + to 27 years.

L*/ .*/& 7uire no *uarantor at a$$.


19/73

TA! BENEFITS OF HOME LOAN

Both #rinci#a$ as :e$$ as interest of home $oans attract tax benefits. 8ith effect from 1st

#ri$ 277+


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"om#any rofi$e


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K11 V33 B/=is a #rivate%sector 'ndian bank6 head>uartered in Karurin -ami$ adu.'t :as set u# in 131, by ;. . Venkatarama "hettiarand thi Krishna "hettiar.

-he bank a$so offers 'nternet Bankin*and ;obi$e Bankin*faci$ities to its customers.

H'&*13

IThe )#r"r Vyy# B#n* L'!'te%+6 #o#u$ar$y kno:n as KVB:as set u# in 131, by ;r

;. Venkatarama "hettiar and ;r thi Krishna "hettiar6 to ca#ita$ise on the #revious$y

unex#$oited market of traders and a*ricu$turists in and around Karur6 a to:n in -ami$

adu. Ori*insA

-hou*h the bank started :ith a seed ca#ita$ of 1 $akh6 s :ith most banks6 the seed

ca#ita$ has *ro:n6 as have the services so$d. -he bank is mana*ed and *uided by the Boardof 4irectors dra:n from different fie$ds.

)ea$isin* that there is more money e$se:here6 the bank ex#anded out of Karur andestab$ished a##roximate$y +,! branches in other States and /nion -erritories in order to

*ain a #an%'ndia #resence.

Shri K.K. Ba$u :as a##ointed as an dditiona$ 4irector of the Bank on 2 January 2712.

B1/%9 / ATM N$&>*1=

't has I?6?@Branches and net:ork of ??ATM@ */ 0-J/13-204

KVBtota$ business ti$$ SEPTEMBER 20:as around 6000 %1*1$

T$%9/*5*8'%5 D$&'5

% KVBmarkets services throu*h mu$ti#$e channe$s6 inc$udin*A

% ny Branch Bankin*Dclarification neededF

% ;u$ticity ccount faci$ities

% 'nternet Bankin*

% /n$ockin* of 'nternet Bankin* user id throu*h S;S.

% On$ine -ax ayments throu*h 'nternet Bankin*

% On%$ine uti$ity bi$$ #ayments and sho##in* faci$ities

% On $ine ayment of E$ectricity Bi$$ in -ami$ adu


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% )ea$ -ime ?ross Sett$ement


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$

B/='/8 '/ I/'

R$$1$

"/= )eserve Bank of 'ndia

P"5'%

$%&*1"/=

$$ahabad Bank

ndhra Bank

Bank of Baroda

Bank of 'ndia

Bank of ;aharashtra

Bharatiya ;ahi$a Bank

"anara Bank

"entra$ Bank of 'ndia

"or#oration Bank

4ena Bank

'4B' Bank

'ndian Bank

'ndian Overseas Bank

Orienta$ Bank of "ommerce

unjab Sind Bank

unjab ationa$ Bank

State Bank of Bikaner Jai#ur

State Bank of (yderabad

State Bank of 'ndia

State Bank of ;ysore

State Bank of atia$a

State Bank of -ravancore

Syndicate Bank

/"O Bank

/nion Bank of 'ndia
http://en.wikipedia.org/w/index.php?title=Template:Banking_in_India&action=edithttp://en.wikipedia.org/wiki/Banking_in_Indiahttp://en.wikipedia.org/wiki/Reserve_bankhttp://en.wikipedia.org/wiki/Reserve_bankhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Public_sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Public_sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Public_sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Andhra_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Maharashtrahttp://en.wikipedia.org/wiki/Bharatiya_Mahila_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Dena_Bankhttp://en.wikipedia.org/wiki/IDBI_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Indian_Overseas_Bankhttp://en.wikipedia.org/wiki/Oriental_Bank_of_Commercehttp://en.wikipedia.org/wiki/Punjab_%26_Sind_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Syndicate_Bankhttp://en.wikipedia.org/wiki/UCO_Bankhttp://en.wikipedia.org/wiki/Union_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Template:Banking_in_India&action=edithttp://en.wikipedia.org/wiki/Banking_in_Indiahttp://en.wikipedia.org/wiki/Reserve_bankhttp://en.wikipedia.org/wiki/Reserve_bankhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Public_sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Public_sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Public_sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Andhra_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Maharashtrahttp://en.wikipedia.org/wiki/Bharatiya_Mahila_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Dena_Bankhttp://en.wikipedia.org/wiki/IDBI_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Indian_Overseas_Bankhttp://en.wikipedia.org/wiki/Oriental_Bank_of_Commercehttp://en.wikipedia.org/wiki/Punjab_%26_Sind_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Syndicate_Bankhttp://en.wikipedia.org/wiki/UCO_Bankhttp://en.wikipedia.org/wiki/Union_Bank_of_India


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/nited Bank of 'ndia

Vijaya Bank

P1'&$

$%&*1

"/=

xis Bank

"atho$ic Syrian Bank

"ity /nion Bank

4eve$o#ment "redit Bank

4han$axmi Bank

5edera$ Bank

(45" Bank

'"'"' Bank

'ndus'nd Bank

'? Vysya Bank

Jammu Kashmir Bank

Karnataka Bank

K11 V33 B/=

Kotak ;ahindra Bank

Lakshmi Vi$as Bank

ainita$ Bank

South 'ndian Bank

-ami$nad ;ercanti$e Bank Limited

0es Bank

C**$1&'$

"/=

"osmos Bank

Saras:at Bank

Shamrao Vitha$ "o%o#. Bank

une eo#$es "oo#erative Bank

nyonya "o%o#erative Bank

;ahi$a SE8 "oo#erative Bank

;ahesh "o%o#erative Bank
http://en.wikipedia.org/wiki/United_Bank_of_Indiahttp://en.wikipedia.org/wiki/Vijaya_Bankhttp://en.wikipedia.org/wiki/Private-sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Private-sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Private-sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/Catholic_Syrian_Bankhttp://en.wikipedia.org/wiki/City_Union_Bankhttp://en.wikipedia.org/wiki/Development_Credit_Bankhttp://en.wikipedia.org/wiki/Dhanlaxmi_Bankhttp://en.wikipedia.org/wiki/Federal_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/IndusInd_Bankhttp://en.wikipedia.org/wiki/ING_Vysya_Bankhttp://en.wikipedia.org/wiki/Jammu_%26_Kashmir_Bankhttp://en.wikipedia.org/wiki/Karnataka_Bankhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Bankhttp://en.wikipedia.org/wiki/Lakshmi_Vilas_Bankhttp://en.wikipedia.org/wiki/Nainital_Bankhttp://en.wikipedia.org/wiki/South_Indian_Bankhttp://en.wikipedia.org/wiki/Tamilnad_Mercantile_Bank_Limitedhttp://en.wikipedia.org/wiki/Yes_Bankhttp://en.wikipedia.org/wiki/Cooperative_bankinghttp://en.wikipedia.org/wiki/Cooperative_bankinghttp://en.wikipedia.org/wiki/Cooperative_bankinghttp://en.wikipedia.org/wiki/Cosmos_Bankhttp://en.wikipedia.org/wiki/Saraswat_Bankhttp://en.wikipedia.org/wiki/Shamrao_Vithal_Co-op._Bankhttp://en.wikipedia.org/w/index.php?title=Pune_Peoples_Cooperative_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Anyonya_Co-operative_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mahila_SEWA_Cooperative_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mahesh_Co-operative_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/United_Bank_of_Indiahttp://en.wikipedia.org/wiki/Vijaya_Bankhttp://en.wikipedia.org/wiki/Private-sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Private-sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Private-sector_banks_in_Indiahttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/Catholic_Syrian_Bankhttp://en.wikipedia.org/wiki/City_Union_Bankhttp://en.wikipedia.org/wiki/Development_Credit_Bankhttp://en.wikipedia.org/wiki/Dhanlaxmi_Bankhttp://en.wikipedia.org/wiki/Federal_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/IndusInd_Bankhttp://en.wikipedia.org/wiki/ING_Vysya_Bankhttp://en.wikipedia.org/wiki/Jammu_%26_Kashmir_Bankhttp://en.wikipedia.org/wiki/Karnataka_Bankhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Bankhttp://en.wikipedia.org/wiki/Lakshmi_Vilas_Bankhttp://en.wikipedia.org/wiki/Nainital_Bankhttp://en.wikipedia.org/wiki/South_Indian_Bankhttp://en.wikipedia.org/wiki/Tamilnad_Mercantile_Bank_Limitedhttp://en.wikipedia.org/wiki/Yes_Bankhttp://en.wikipedia.org/wiki/Cooperative_bankinghttp://en.wikipedia.org/wiki/Cooperative_bankinghttp://en.wikipedia.org/wiki/Cosmos_Bankhttp://en.wikipedia.org/wiki/Saraswat_Bankhttp://en.wikipedia.org/wiki/Shamrao_Vithal_Co-op._Bankhttp://en.wikipedia.org/w/index.php?title=Pune_Peoples_Cooperative_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Anyonya_Co-operative_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mahila_SEWA_Cooperative_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mahesh_Co-operative_Bank&action=edit&redlink=1


25/73

F*1$'8/

"/=

B ;)O

bu 4habi "ommercia$ Bank

nt:er# 4iamond Bank

ustra$ia and e: ea$and Bankin* ?rou#

Bank 'nternasiona$ 'ndonesia

Bank of merica

Bank of Bahrain and Ku:ait

Bank of "ey$on

-he Bank of -okyo%;itsubishi /5J

Barc$ays

"itibank 'ndia

"redit Suisse

4eutsche Bank

(SB"

-he )oya$ Bank of Scot$and

Scotiabank

Standard "hartered

R$8'*/5R15

B/=

ndhra ra*athi ?rameena Bank

Kera$a ?ramin Bank

Ban*iya ?ramin Vikash Bank

?ramin Bank of ryavart

orth ;a$abar ?ramin Bank

aschim Ban*a ?ramin Bank

Sarva / ?ramin Bank

South ;a$abar ?ramin Bank

/ttar Bihar ?ramin Bank

Vanancha$ ?ramin Bank

List of re*iona$ rura$ banks in /ttar radesh
http://en.wikipedia.org/wiki/Foreign_bankhttp://en.wikipedia.org/wiki/Foreign_bankhttp://en.wikipedia.org/wiki/ABN_AMROhttp://en.wikipedia.org/wiki/Abu_Dhabi_Commercial_Bankhttp://en.wikipedia.org/wiki/Antwerp_Diamond_Bankhttp://en.wikipedia.org/wiki/Australia_and_New_Zealand_Banking_Grouphttp://en.wikipedia.org/wiki/Bank_Internasional_Indonesiahttp://en.wikipedia.org/wiki/Bank_of_Americahttp://en.wikipedia.org/wiki/Bank_of_Bahrain_and_Kuwaithttp://en.wikipedia.org/wiki/Bank_of_Ceylonhttp://en.wikipedia.org/wiki/The_Bank_of_Tokyo-Mitsubishi_UFJhttp://en.wikipedia.org/wiki/Barclayshttp://en.wikipedia.org/wiki/Citibank_Indiahttp://en.wikipedia.org/wiki/Credit_Suissehttp://en.wikipedia.org/wiki/Deutsche_Bankhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/The_Royal_Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Scotiabankhttp://en.wikipedia.org/wiki/Standard_Charteredhttp://en.wikipedia.org/wiki/Regional_Rural_Bankhttp://en.wikipedia.org/wiki/Regional_Rural_Bankhttp://en.wikipedia.org/wiki/Regional_Rural_Bankhttp://en.wikipedia.org/wiki/Andhra_Pragathi_Grameena_Bankhttp://en.wikipedia.org/wiki/Kerala_Gramin_Bankhttp://en.wikipedia.org/wiki/Bangiya_Gramin_Vikash_Bankhttp://en.wikipedia.org/wiki/Gramin_Bank_of_Aryavarthttp://en.wikipedia.org/wiki/North_Malabar_Gramin_Bankhttp://en.wikipedia.org/wiki/Paschim_Banga_Gramin_Bankhttp://en.wikipedia.org/wiki/Sarva_UP_Gramin_Bankhttp://en.wikipedia.org/wiki/South_Malabar_Gramin_Bankhttp://en.wikipedia.org/wiki/Uttar_Bihar_Gramin_Bankhttp://en.wikipedia.org/wiki/Vananchal_Gramin_Bankhttp://en.wikipedia.org/wiki/List_of_regional_rural_banks_in_Uttar_Pradeshhttp://en.wikipedia.org/wiki/Foreign_bankhttp://en.wikipedia.org/wiki/Foreign_bankhttp://en.wikipedia.org/wiki/ABN_AMROhttp://en.wikipedia.org/wiki/Abu_Dhabi_Commercial_Bankhttp://en.wikipedia.org/wiki/Antwerp_Diamond_Bankhttp://en.wikipedia.org/wiki/Australia_and_New_Zealand_Banking_Grouphttp://en.wikipedia.org/wiki/Bank_Internasional_Indonesiahttp://en.wikipedia.org/wiki/Bank_of_Americahttp://en.wikipedia.org/wiki/Bank_of_Bahrain_and_Kuwaithttp://en.wikipedia.org/wiki/Bank_of_Ceylonhttp://en.wikipedia.org/wiki/The_Bank_of_Tokyo-Mitsubishi_UFJhttp://en.wikipedia.org/wiki/Barclayshttp://en.wikipedia.org/wiki/Citibank_Indiahttp://en.wikipedia.org/wiki/Credit_Suissehttp://en.wikipedia.org/wiki/Deutsche_Bankhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/The_Royal_Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Scotiabankhttp://en.wikipedia.org/wiki/Standard_Charteredhttp://en.wikipedia.org/wiki/Regional_Rural_Bankhttp://en.wikipedia.org/wiki/Regional_Rural_Bankhttp://en.wikipedia.org/wiki/Regional_Rural_Bankhttp://en.wikipedia.org/wiki/Andhra_Pragathi_Grameena_Bankhttp://en.wikipedia.org/wiki/Kerala_Gramin_Bankhttp://en.wikipedia.org/wiki/Bangiya_Gramin_Vikash_Bankhttp://en.wikipedia.org/wiki/Gramin_Bank_of_Aryavarthttp://en.wikipedia.org/wiki/North_Malabar_Gramin_Bankhttp://en.wikipedia.org/wiki/Paschim_Banga_Gramin_Bankhttp://en.wikipedia.org/wiki/Sarva_UP_Gramin_Bankhttp://en.wikipedia.org/wiki/South_Malabar_Gramin_Bankhttp://en.wikipedia.org/wiki/Uttar_Bihar_Gramin_Bankhttp://en.wikipedia.org/wiki/Vananchal_Gramin_Bankhttp://en.wikipedia.org/wiki/List_of_regional_rural_banks_in_Uttar_Pradesh


26/73

I/&$1"/=

/$&>*1=

B"S

"ashnet

"ash-ree

"irrus

';S

;'-)

5S

L/S

)uay

D$+/%&

"/=

$$iance Bank of Sim$a

rbuthnot "o

rnad Bank

Bha*:an 4as Bank

Bank of Bombay

Bank of "a$cutta

Bank of "hettinad

Bank of Kera$a

Bank of ;adras

Bank of ;adura

Bank of unjab

Bank of )ajasthan

Ben*a$ "entra$ Bank

Bharat Overseas Bank

"enturion Bank of unjab

"hartered Bank of 'ndia6 ustra$ia and "hina

"hettinad ;ercanti$e Bank


27/73

4ass Bank

?. )a*umathu$am Bank

?rind$ays Bank

(industan "ommercia$ Bank

'$$anji Bank


28/73

List of banks in 'ndia

ationa$ E$ectronic 5und -ransfer


29/73

(ome Loan Scheme Of

KARUR VYSYA BANK

Ltd.


30/73

THE KARUR VYSYA BANK LIMITED

HOUSING LOAN SCHEME

-he united :estern bank brin*s to #eo#$e vastu#urti #urti a uni>ue housin* $oan schemethat trans$ates their dream.

P1*$ *+ L*/

Loan for "onstruction and #urchase of houseCf$at inc$udin* #urchase of $and.

)enovationCExtensionCre#air of Existin* house Cf$at.

5or takin* over of housin* $oans from other banks C (ousin* finance com#anies.

5or furnishin*.

5or #urchasin* durab$e *oods a$on* :ith $oans for the #urchase and construction

of houseC f$at.

5or #urchase of house Cf$at on resa$e.

E5'8'"'5'&3

ny 'ndividua$ :ith re*u$ar source of income either sin*$y or joint$y :ith hisC her

s#ouse.

*e of #erson shou$d be at $east 21 years.


31/73

97H to 9+H of the cost of house f$at de#endin* on $oan amount.

Loan amount6 the insta$$ment of :hich does not exceed +7H of month$y income

;inimum of above :i$$ be the $oan amount

5or re#airs renovation6 modification of existin* house u# to )s 2$akhs.

R&$ *+ '/&$1$&

5ixed for the first five years M 9.+H and then f$oatin* as #er the #revai$in* rates after +

years :hich :ou$d be L)% !H #er annum.resent #rime $endin* rate is 11.+H #er

annum.

R$3.$/& $1'*

5or construction of ne: house Cf$at


32/73

years.

1H commitment char*es on outstandin* ba$ance if $oan is re#aid :ithin first +

M18'/

1+H for $oan u# to + $akhs and 27H above + $akhs.

EMI

)s 27+2 for first + years and after that accordin* to f$oatin* rates #revai$in* at that time.

R$3.$/& 9*5'3

)e#ayment ho$iday of 19 months.


33/73

4etai$s bout Other Leadin*Banks


34/73

BANKS IN INDIA

PUBLIC SECTOR , NATIONALISED BAN)S

$$ahabad Banks

Bank of 'ndia

Bank of ;aharashtra

"anara Bank

"entra$ Bank of 'ndia

"or#oration Bank4ena Bank

unjab ationa$ Bank

Syndicate Bank

/"O Bank

/nion Bank of 'ndia.

OTHER PUBLIC SECTOR BAN),

'4B' Bank

OLD PRIVATE SECTOR BAN)S

Bank of )ajasthan Ltd.

J K Bank Ltd.

Karur Vysya Bank Ltd.

South 'ndian Bank Ltd.

/nited 8estern bank Ltd.

NEW PRIVATE SECTOR BAN)S

(45" Bank Ltd.

'"'"' Bank Ltd.


35/73

/-' Bank Ltd.

STATE BAN) OF INDIA AND ITS ASSOCIATES

State Bank Of 'ndia

-he to# (ome Loan #roviders in 'ndia are (45" Bank Ltd6 '"'"' Bank Ltd and StateBank Of 'ndia. resent$y -he /nited 8estern bank Ltd cannot com#ete :ith these banksas they have vast resources and ex#ertise at their dis#osa$. -hey are bi**er in si@e than-he /nited 8estern bank Ltd.

On the other hand Karur Vysya Bank Ltd6 South 'ndian Bank Ltd nd Karnataka Bank

Ltd is a$most e>ua$ to -he /nited 8estern Bank Ltd in terms of resources and ex#ertise.

-he /nited 8estern Bank Ltd faces stiff com#etition from these banks. -herefore it isnecessary to study in detai$ the (ome Loan scheme of a$$ these Banks.

8hi$e a##$yin* for a (ome Loan fo$$o:in* factors are considered by a##$icants.

-he various #ur#oses for :hich (ome Loan is *iven.

E$i*ibi$ity for *ettin* a (ome Loan.

'nterest )ates

E;' of $oan

Nuantum of $oan;ar*in

)e#ayment #eriod

rocessin* fees

re#ayment char*es

Other incentives #rovided by banks etc.

Banks and 5inancia$ institutions shou$d consider these factors :hi$e decidin* a (ome

Loan scheme or :hi$e makin* chan*es in the existin* (ome Loan scheme.


36/73

HDFC B/= L&

P1*$ *+ L*/

"onstructionC#urchase of houseCf$at

Extention6 )enovation and )e#air of Existin* house Cf$at.

5or takin* a home $oan from any other bank and financia$ institution.


37/73

5$oatin* 271! 1277 3&2 921

P1*%$'/8 +$$

5ixed 7.+7H

f$oatin* 7.+7H

P1$-3.$/& %918$

i$


38/73

ICICI B/= L&

P1*$ *+ L*/

5or constructionC#urchase of houseCf$at

5or renovationCextentionCre#air of Existin* house Cf$at.

5or #urchase of #$ot for construction of houseCf$at.


39/73

Lenders name /#to + years ,%17 years 11%1+ years 1,%27years

5ixed 27+2 12&7 39+ 9,9

5$oatin* 2729 121& 3+, 9!

P1*%$'/8 +$$

5ixed :aived

f$oatin* :aived

P1$3.$/& %918$

i$


40/73

S&&$ B/= O+ I/'

P1*$ *+ L*/


)enovationCextentionCre#airCa$teration of existin* house Cf$at.

5or takin* a (ome Loan from any other bank6 financia$ institution.


41/73

E&$ .*/&953 '/&55.$/& $1 5=9 (R)

Lenders name /# to + years ,%17 years 11%1+ years 1,%27years

5ixed 27+2 12, 171& 31+

5$oatin* 2729 12&7 39+ 99&

P1*%$'/8 +$$

5ixed 7.2+Hf$oatin* 7.2+H

P1$-3.$/& %918$

2H


42/73

K1/&= B/= L&

P1*$ *+ L*/


)enovationCremode$in*Cre#air of Existin* house Cf$at.

E5'8'"'5'&3

'ndividua$s :ho are residents of 'ndia.

Sa$aried #ersons a*ed 21 years and above :ho are in confirmed service :ith a

minimum service of ! years and a minimum *ross month$y sa$ary of )s ,777C%.

BusinessmenCrofessiona$sC se$f em#$oyed #ersons a*ed 21 years and above6 :ith

a minimum ex#erience of ! years and a minimum *ross annua$ income of )s

,76777C%.


43/73

M18'/

2+H of the tota$ cost in case of houseCf$at u# to + years o$d.

!7H of the tota$ cost in case of houseCf$at more than + years o$d and u# to 27

years o$d.

)eduction in mar*in by and u# to 17Hconsidered on s#ecia$ conditions.

!7H of the cost for renovationCre#air.

I/&$1$& 1&$ ()


5ixed 9.2+ 9.+ 3.77f$oatin*

E&$ .*/&953 '/&55.$/& $1 5=9 (R)


5ixed 27&7 12+! 171&

5$oatin*

P1*%$'/8 +$$

5ixed 7.2+H

f$oatin*

P1$-3.$/& %918$

i$


44/73

The Karur Vysya Bank Ltd.

P1*$

-o #urchase a ready bui$t 5$at C (ouse


45/73

EMI $1 L=9 (R)

-y#e of Loan /# to +yrs ,%17yrs 11%1+yrs 1,%27yrs

5ixed 21&3 1!&3 1121

5$oatin* 212+ 1!22 1737

P1*%$'/8 +$$

5ixed 1.77H

5$oatin* 1.77H


46/73

S*&9 I/'/ B/= L&

P1*$

urchase of 5$at or (ouse

"onstruction of 5$atC(ouse

5or major re#air6 renovation6 extension or im#rovement of 5$atC(ouse

-akeover of (L from other BanksC re#uted housin* finance com#anies

urchasin* $and constructin* a house.


47/73

EMI $1 L=9 (R)

-y#e of Loan /# to +yrs ,%17yrs 11%1+yrs 1,%27yrs

5ixed 27, 123& 17&& 3!25$oatin* 2729 12&7 1723 9,9

P1*%$'/8 +$$

5ixed 7.2+H

5$oatin* 7.2+H

P1$3.$/& C918$

2H


48/73

"ritica$ na$ysis


49/73

INTEREST RATES ()

L$/$1 N.$ T3$ *+

L*/

U&* ? 31 6-0 31 -? 31 6-20 31

T9$ UW B/=L& 9.+H for the first five yrs and then f$oatin* rate as #er L)

S*&9 I/'/

B/= L&

5ixed

5$oatin*

3

9

3.+

9.+

3.+

9.+

3.+

9.+

S3/'%&$

B/=

5ixed

5$oatin*

9

.2+

9.+

.+

9.+

9

3

9.2+

U/'*/ B/= 5ixed

5$oatin*

9.2+

9

3

9.+

3.+

3.2+

3.+

3.2+

U/'&$ B/= *+I/'

5ixed

5$oatin*

9.+

3.+

3

3.+

3.2+

3.+

3.2+

3.+

UTI B/= L& 5ixed

5$oatin*

3.+

.+

17.2+

9

17.+

9

17.+

9

ICICI B/=

L&

5ixed

5$oatin*

9.+

9

9.+

9

9.+

9

9.+

9

IDBI B/= 5ixed

5$oatin*

9.+

9 9 9 9J..

K9.'1 B/=

L&

5ixed

5$oatin*

9

.+

9.+

9.2+

3.2+

3

3.+

3.+

K1/&=

B/=

5ixed

5$oatin*

9.2+ 9.+ 3

K11 V33

B/= L&

5ixed

5$oatin*

17.+

17

17.+

17

17.+

17.2+

P/#"

N&'*/5 B/=

5ixed

5$oatin*

3.2+

.+

17.2+

9

17.+

9.2+

17.+

9.2+

A559"

B/=

5ixed

5$oatin*

9.2+

.2+

9.+

.+

9.+

.+

3.2+

9.2+

A/91 B/= 5ixed

5$oatin*

.+

.2+

9.+

9

9.+

9.2+

9.+

9.2+


50/73

INTEREST RATES ()

L$/$1 N.$ T3$ *+

L*/

U&* ? 31 6-0 31 -? 31 6-20 31

B/= *+

B1*

5ixed

5$oatin*

3

9

3.+

9.+

17

9.+

17

9.+

B/= *+ I/' 5ixed

5$oatin*

9.+

.2+

3.2+

9

3.2+

9.+

3.2+

9.+

B/= *+

M919&1

5ixed

5$oatin* 9 9.+ 9.+ 9.+B/= *+

R#&9/

5ixed

5$oatin*

9.2+

.+

9.+

9

3

9.2+

C/1 B/= 5ixed

5$oatin*

9

.+

3

9.2+

3.2+

9.+7

3.2+

9.+7

C$/&15 B/=

*+ I/'

5ixed

5$oatin*

9.+

9

3

9.+

3.+

3

3.+

3

C*1*1&'*/

B/=

5ixed

5$oatin*

9.2+

.+

9.+

9

9.+

9.2+ 9.2+

D$/ B/= 5ixed

5$oatin*

9.+

.2+

3.2+

.+

3.+

9

3.+

9

HDFC B/= 5ixed

5$oatin*

9.+

.+

9.+

.+

9.+

.+

9.+

.+


51/73

E


52/73

E


53/73

PROCESSING FEES

L$/$1 N.$ T3$ *+ L*/ P$1%$/&8$

T9$ UW B/= L& 7.+7H

S*&9 I/'/ B/= L& 5ixed

5$oatin*

7.2+H

7.2+H

S&&$ B/= O+ I/' 5ixed

5$oatin*

7.2+H

7.2+H

S3/'%&$ B/= 5ixed

5$oatin*

7.+7H

7.+7H

U/'*/ B/= 5ixed

5$oatin*

8aived

8aived

U/'&$ B/= O+ I/' 5ixed

5$oatin*

8aived

8aived

UTI B/= L& 5ixed

5$oatin*

1.77H

1.77H

B/= O+ R#&9/ 5ixed

5$oatin*

7.+7H

7.+7HA/91 B/= 5ixed

5$oatin*

7.+7H


54/73

PROCESSING FEES

L$/$1 N.$ T3$ *+ L*/ P$1%$/&8$

B/= O+ M919&1 5ixed

5$oatin* 8aived

B/= O+ R#&9/ 5ixed

5$oatin*

7.+7H

7.+7H

C/1 B/= 5ixed

5$oatin*

7.+7H


55/73

INTEREST RATE () COMPARISON

12

10

8

United

Western Bank

6 Karur Vysya

Bank

South Indian

Bank

4Karnataka

Bank

2

0

interest

rate

L$/$1 N.$ I/&$1$& R&$ () U &* ?31

U/'&$ W$&$1/ B/= L& ?0

K11 V33 B/= L& 0?0

S*&9 I/'/ B/= L& 00

K1/&= B/= L& 2?


56/73

EMI PER LAKH (R)

2160

2140

2120

2100

2080

2060

2040

2020

United

Western Bank

Karur Vysya

Bank

South Indian

Bank

Karnataka

Bank

2000

1980

!I "#

L$K%s'

u( to ) yrs

L$/$1 N.$ EMI P$1 L=9(R) U &* ?31

U/'&$ W$&$1/ B/= L& 20?2

K11 V33 B/= L& 24

S*&9 I/'/ B/= L& 206

K1/&= B/= L& 2040


57/73

PROCESSING FEES ()

1

0.9

0.8

0.*

0.6

0.)

0.4

0.+

United

Western Bank

Karur Vysya

Bank

South IndianBank

Karnataka

Bank

0.2

0.1

0

"ro,essin-

ees

L$/$1 N.$ P1*%$'/8 F$$()

U/'&$ W$&$1/ B/= L& 0?0

K11 V33 B/= L& 00

S*&9 I/'/ B/= L& 02?

K1/&= B/= L& 02?


58/73


59/73


60/73

Maximum Repayment Period of Home Loan

L$/$1 N.$ Y$1

he !nited "estern #ank Ltd$ 19 yrs

Central #ank of ndia 27 yrs

0ena #ank 27 yrs

2outh ndian #ank Ltd$ 27 yrs

.arnataka #ank Ltd$ 1+ yrs. )e#ayment #eriod u#to 7 yrs of

a*e.

#ank of Maharashtra 27 yrs

50FC #ank Ltd$ 27 yrs

4llaha)ad #ank 27 yrs

#ank of #aroda 2+ yrs

4ndhra #ank 27 yrs

0# #ank 27 yrs

CC #ank Ltd$ 27 yrs

2tate #ank of ndia 27 yrs

Corporation #ank 2+ yrs

2yndicate #ank 2+yrs

2tate #ank of Mysore 27 yrs!nited #ank of ndia 27 yrs

!nion #ank 27 yrs

#ank of ndia 27 yrs

Canara #ank 27 yrs

Punja) 1ational #ank 2+ yrs

ammu .ashmir #ank Ltd$ 27 yrs

#ank of *ajasthan Ltd$ 27 yrs

!$C$+$ #ank 27 yrs

#ank of #aroda 2+ yrs


61/73

MARGIN

L$/$1 N.$ M18'/ *+ H*.$ L*/

!nited "estern #ank Ltd$ 1+H for $oan u# to + $acs 27H for $oan

above + $acs

4llaha)ad #ank For 2alaried Person3

'f $oan is tied u# :ith sa$ary%i$

'f tie u# is not avai$ab$e%17H

For +thers327H

4ndhra #ank 17H for #urchase and construction of

houseCf$at.

#ank of ndia 5or $imits unto )s.17 $acs%1+H

5or $imits more than 17 $acs%27H

#ank of Maharashtra )an*in* u# to 2+H

#ank of *ajasthan 1+H in case of #urchase6 construction6

re#air and renovation of houseCf$at.

Canara #ank e: houseCf$at 1+H

O$d houseCf$at $ess than 2+H

o$d houseCf$at beyond 27 yrs o$d&7H

Central #ank of ndia 17H for construction27H for re#airsCrenovation ofexistin* houseCf$at.

Corporation #ank 5or "onstruction of houseCf$at $ess

than 17 yrs o$d 27H

5or #urchase of houseCf$at beyond17 yrs mar*in ran*es from 27%2+H

5or re#airs or renovation%27H

2outh ndian #ank ltd !7H for #urchase and construction ofhouseCf$at.

2tate #ank +f ndia 1+H for ne: houseCf$at

27H for o$d houseCf$at27H for re#airs and renovation

2yndicate #ank 2+H of tota$ #roject cost for

constructionC#urchase of ne:

f$atCu# to + yrs

!7H for ac>uirin* house :hich isabove + yrs o$d


62/73

!7H of the estimated cost ofadditionCextensionCre#airsCrenovation.

Len%er N#!e M18'/

!nion #ank 1+H for #urchaseCconstruction

5or re#airs !7H of cost of re#air

1+H for #urchase of #$ot

!nited #ank of ndia 1+H for #urchase and construction ofhouseCf$at.

! #ank 1+H in case of norma$ #roduction

2+H in case ofim#rovementCrenovation

$oans

+7H in case of $oans of existin*#ro#erty.

CC #ank Ltd$ 1+H for #urchase and construction of

houseCf$at.

0# #ank 9H for #urchase and construction of

houseCf$at.

ammu and .ashmir #ank Ltd$ 5or urchaseC"onstruction 1+H

5or )e#airs )enovation 2+H

Karnataka Bank Ltd. 2+H for #urchase and construction ofhouseCf$at.

Karur Vysya Bank Ltd. 2+H for #urchase and construction of

houseCf$at.

unjab ationa$ Bank 27H for #urchase and construction of

houseCf$at.


63/73

C&*.$1 R&'/8


64/73

CUSTOMER RATING

"ustomer )atin* ref$ects the borro:er s accountabi$ity6 ex#ected ca#abi$ity andinc$ination to #ay interest and #rinci#a$ in time$y manner. "ustomer )atin* is a

sim#$e number :hich many $enders use to determine :hether or not they :i$$ *ive a $oan

or $ine of credit to an individua$.

-he main objective of this is to assess the a##$icants sustained re#ayment ca#acity over

the #eriod. -he main #oints that are considered areA

'ncome

*e

cademic back*round and Em#$oyment stabi$ity

5ami$y Back*round

ssets and Liabi$ities

Servicin* record in res#ect of other institutiona$ borro:in*s.

Savin* history and ca#acity.

umber of de#endents

'ncome and ex#enditure #attern

D*%.$/& R$'1$ +*1 S%1&'/3,

S51'$ C5A

Sa$ary certificate.

"o#y of ration cardCe$ectricity bi$$.

)ent recei#t if a##$icab$e.


65/73

F*1 S$5+ E.5*3$A

A "1'$+ '/&1*%&'*/ &* "'/$71*+$'*/

Ba$ance Sheet and rofit and Loss account6 du$y certified by a charteredaccountant.

'ncome tax C :ea$th tax return for the #ast three years.

"o#ies of cha$$ans of advance tax.

ssessment orders.

Sho# and Estab$ishment ct certificate of re*istration.

)ation card C E$ectricity bi$$ C )ent recei#t uired to be com#i$ed :ith before

disbursement of (ome Loan in -he /nited 8estern Bank Ltd takes #$ace. ' am therefore6

main$y focusin* on com#$iance of such #rocedura$ #art by the borro:er. -here are certain

forms6 :hich are re>uired to be submitted by the a##$icant of the $oan. "ustomer )atin*

form is one such form. 't is accom#anied by "ustomer rofi$e form. -his form contain a$$

necessary information about the borro:er that he$#s the bank in *rantin* $oan to thea##$icant. -his information is beneficia$ for the bank as it he$#s in #ro#er scrutiny of

a##$icant s ca#acity to re#ay the amount of $oan. Bank checks the information to itssatisfaction before *rantin* $oan to the a##$icant. -his form contains a$$ necessary

information about the a##$icant s financia$ #osition and a$so the detai$ information about

the #ro#erty.

Both the "ustomer rofi$e 5orm and "ustomer )atin* 5orm are desi*ned in an exce$$ent

:ay by -he /nited 8estern Bank Ltd.


66/73

C&*.$1 P1*+'5$ +*1. %*/&'/ &9$ +*55*>'/8 '/+*1.&'*/,

ame of the a##$icant.

ddress

hone number

4ate of birth

Nua$ification

Occu#ation

eriod of service

ame


67/73

I/+*1.&'*/ %*/&'/$ '/ C&*.$1 R&'/8 +*1. 1$ +*55*>,

ame of the a##$icant.

ddress

hone number.

4ate of birth

Nua$ification

Occu#ation

eriod of service

o of de#endents

0ear$y income


68/73

R$%*..$/&'*/


69/73

RECOMMENDATION

Bank shou$d decrease #a#er :ork re*ardin* sanction of (ome Loan .'t shou$da$so com#$ete thepaper work and legal re6uirement re$atin* to sanction of (ome$oan on beha$f of a##$icant s thus minimi@in* a##$icant s :ork.

Loan sanction period shou$d be decreased to suit a##$icant s re>uirements.

-heprocessing fees orpre-payment rates shou$d be decreased or either of themshou$d be :aived for fe: years.

Bank shou$d *o for corporate tie-up6 :here it :ou$d #rovide $oans to em#$oyees

of that com#any at a rate $o:er than banks #revai$in* rates.

0oor-2tep services shou$d be #rovided by banks. -his kind of service isa##reciated by #eo#$e and can he$# bank in increasin* its business.

Bank shou$dpromote product


70/73

C*/%5'*/


71/73

CONCLUSION

?ro:th in #o#u$ation and income $eve$ had $ead to increase in the

demand for (ome Loan to meet the *ro:in* housin* needs of #eo#$e. ffordab$e interest

rate and easy $oan sanction by Banks and 5inancia$ 'nstitutions have increased the

demand of (ome Loan in 'ndia.

5rom the detai$ study and com#arison of (ome Loan schemes of different banks6 'observed that fe: chan*es are re>uired in the (ome Loan Scheme of -he /nited 8estern

Bank Ltd.

decrease in existin* #a#er:ork re>uirements a$on* :ith decrease in the Loan sanction

#eriod is must.

Bank shou$d a$so decrease its #rocessin* fees or its #re%#ayment rates. 't shou$d a$so *o

for cor#orate tie u#s and shou$d a$so undertake some #romotion :ork for its Loan

#roduct i.e. (ome Loan Scheme.

"ustomer )atin* form desi*ned by -he /nited 8estern Bank Ltd. contains a$$ necessaryinformation about the a##$icant that he$#s the bank in *rantin* $oan to the a##$icant. fter

studyin* this form ' observed that the information contained in it is beneficia$ for the

bank as it he$#s in #ro#er scrutiny of a##$icant s ca#acity to re#ay the amount of $oan.Bank checks the information to its satisfaction before *rantin* $oan to the a##$icant. -his

form contains a$$ necessary information about the a##$icant s financia$ #osition and a$so

the detai$ information about the #ro#erty.


72/73

Bib$io*ra#hy


73/73

BIBLIOGRAPHY

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$1'%$

B/=/$&I/'%*.

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https://www.kvb.co.in/https://www.kvb.co.in/

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