INTRODUCTION
PREFACEI am extremely happy to place before the esteemed teacher
PERSONAL LOAN POLICY IN INDIA -SBI . It is an attempt make by me to
find out the leading brands in Sagar City.The Project Report has on
objective to get the B.B.A. Studetns familiar with real life
buisness situations and gives an opportunity to the students to
understand the theoretical concepts of marketing and finance in
practical way. The research starts with a short introduction of the
company followed by the line of the objective and research
methodology.Next Chapter Deals with the data analysis and
interpretation that is based on questionnaire. Then comes the
limitation, suggestions conclusion of the research report. Students
name : SOURABH AWASTHI Class :BBA VTH SEM.
ACKNOWLEDGEMENTI Wish to express my deep sense of gratitude to
all who generously helped in successful completion of the project
work by sharing their valuable time and knowledge. I thankfully
acknowlege Mr. Manish Jain (HOD BBA Dept) GIMS Sagar for giving me
the opportunity to conduct and survey. I Would like to express my
sincere thanks to MR. MANISH JAIN LecturerBBA Dept) and all other
faculty members, GIMS sagar who directly and indirectly rendered me
all possible help and guidance for preparing the report. Finally I
would like to thanks my parents, my friends without whom completion
of my project report would not have been possible. Students name :
SOURABH AWASTHI Class :BBA VTH SEM.
CERTIFICATE A PROJECT REPORT ON PERSONAL LOAN POLICY IN INDIA
-SBI is prepared by SOURABH AWASTHI under The guidance of MR.
MANISH JAIN is a satisfactory in respect to comments Contents and
presentation of the Subject Matter. Language Submission with in due
date.
Signature of Supervisor Signature of Examiner Signature of
HOD
DECLARATION BY THE CANDIDATE
Date:
I declare that the project report titled PERSONAL LOAN POLICY IN
INDIA -SBI is my own work conducted under the supervision of MR.
MANISH JAIN , Gyanveer Institute of Management and Science Sagar.
To the best of my knowledge the report does not contain any work,
which has been submitted for the award of any degree, anywhere.
Students name : SOURABH AWASTHI Class :BBA VTH SEM.
-
TABLE OF CONTENTS Preface Acknowledgement Certificate
Declaration by the CandidateTOPIC NAMEPAGE NO.
CHAPTER 1 INTRODUCTION
(A) COMPANY PROFILE
(B) HISTORY
(C) KEY PERSON
CHAPTER 2 OBJECTIVE
CHAPTER 3 RESEARCH METHODOLOGY
(A) TYPE OF RESEARCH
(B) SOURCE OF RESEARCH
CHAPTER 4 PERSONAL LOANS POLICIES IN INDIA
CHAPTER 5 DATA ANALYSIS AND INTERPRETATION
CHAPTER 6 SWOT ANALYSIS
CHAPTER 7 LIMITATION
CHAPTER 8 SUGGESTION AND CONCLUSION
CHAPTER 9 BIBLIOGRAPHY
CHAPTER 10 QUESTIONNAIRE
IntroductionSTATE BANK OF INDIA
Not only many financial institution in the world today can claim
the antiquity and majesty of the State Bank Of India founded nearly
two centuries ago with primarily intent of imparting stability to
the money market, the bank from its inception mobilized funds for
supporting both the public credit of the companies governments in
the three presidencies of British India and the private credit of
the European and India merchants from about 1860s when the Indian
economy book a significant leap forward under the impulse of
quickened world communications and ingenious method of industrial
and agricultural production the Bank became intimately in valued in
the financing of practically and mining activity of the Sub-
Continent Although large European and Indian merchants and
manufacturers were undoubtedly thee principal beneficiaries, the
small man never ignored loans as low as Rs.100 were disbursed in
agricultural districts against glad ornaments. Added to these the
bank till the creation of the Reserve Bank in 1935 carried out
numerous Central Banking functions.
Adaptation world and the needs of the hour has been one of the
strengths of the Bank, In the post depression exe. For instance
when business opportunities become extremely restricted, rules laid
down in the book of instructions were relined to ensure that good
business did not go post. Yet seldom did the bank contravenes its
value as depart from sound banking principles to retain as expand
its business. An innovative array of office, unknown to the world
then, was devised in the form of branches, sub branches, treasury
pay office, pay office, sub pay office and out students to exploit
the opportunities of an expanding economy. New business strategy
was also evaded way back in 1937 to render the best banking service
through prompt and courteous attention to customers.
A highly efficient and experienced management functioning in a
well defined organizational structure did not take long to place
the bank an executed pedestal in the areas of business,
profitability, internal discipline and above all credibility A
impeccable
financial status consistent maintenance of the lofty traditions
if banking an observation of a high standard of integrity in its
operations helped the bank gain a pre- eminent status. No wonders
the administration for the bank was universal as key functionaries
of India successive finance minister of independent India Resource
Bank of governors and representatives of chamber of commercial
showered economics on it.
Modern day management techniques were also very much evident in
the good old days years before corporate governance had become a
puzzled the banks bound functioned with a high degree of
responsibility and concerns for the shareholders. An unbroken
records of profits and a fairly high rate of profit and fairly high
rate of dividend all through ensured satisfaction, prudential
management and asset liability management not only protected the
interests of the Bank but also ensured that the obligations to
customers were not met. The traditions of the past continued to be
upheld even to this day as the State Bank years itself to meet the
emerging challenges of the millennium.
ABOUT LOGO
THE PLACE TO SHARE THE NEWS ... SHARE THE VIEWS
Togetherness is the theme of this corporate loge of SBI where
the world of banking services meet the ever changing customers
needs and establishes a link that is like a circle, it indicates
complete services towards customers. The logo also denotes a bank
that it has prepared to do anything to go to any lengths, for
customers. The blue pointer represent the philosophy of the bank
that is always looking for the growth and newer, more challenging,
more promising direction. The key hole indicates safety and
security.MISSION, VISION AND VALUESMission statement:To retain the
Banks position as premiere Indian Financial Service Group, with
world class standards and significant global committed to
excellence in customer, shareholder and employee satisfaction and
to play a leading role in expanding and diversifying financial
service sectors while containing emphasis on its development
banking rule.VISION STATEMENT:
Premier Indian Financial Service Group with prospective
world-class Standards of efficiency and professionalism and
institutional values. Retain its position in the country as
pioneers in Development banking. Maximize the shareholders value
through high-sustained earnings per Share. An institution with
cultural mutual care and commitment, satisfying and Good work
environment and continues learning opportunities.VALUES: Excellence
in customer service Profit orientation Belonging commitment to Bank
Fairness in all dealings and relations Risk taking and
innovative
Team playing Learning and renewal Integrity Transparency and
Discipline in policies and systems.
ORGANISATION STRUCTURE
MANAGING DIRECTOR
CHIEF GENERAL MANAGER
G. M G.M G. M G.M G.M(Operations) (C&B) (F&S) (I) &
CVO (P&D)
zonal officers
Functional Heads Regional officers
PRODUCTS:
State Bank Of India renders varieties of services to customers
through the following products:Personal Loan Product: SBI Term
Deposits SBI Recurring Deposits SBI Housing Loan SBI Car Loan SBI
Educational Loan SBI Personal Loan SBI Loan For Pensioners Loan
Against Mortgage Of Property Loan Against Shares & Debentures
Rent Plus Scheme Medi-Plus Scheme Rates Of InterestSBI Housing
loanSBI Housing loan or Mortgage Loan schemes are designed to make
it simple for you to make a choice at least as far as financing
goes!'SBI-Home Loans' features: No cap on maximum loan amount for
purchase/ construction of house/ flat Option to club income of your
spouse and children to compute eligible loan amount Provision to
club expected rent accruals from property proposed to compute
eligible loan amountProvision to finance cost of furnishing and
consumer durables as part of project cost Repayment permitted upto
70 years of age Free personal accident insurance cover Optional
Group Insurance from SBI Life at concessional premium (Upfront
premium financed as part of project cost) Interest applied on daily
diminishing balance basis 'Plus' schemes which offer attractive
packages with concessional interest rates to Govt. Employees,
Teachers, Employees in Public Sector Oil Companies. Special scheme
to grant loans to finance Earnest Money Deposits to be paid to
Urban Development Authority/ Housing Board, etc. in respect of
allotment of sites/ house/ flat No Administrative Charges or
application fee Prepayment penalty is recovered only if the loan is
pre-closed before half of the original tenure (not recovered for
bulk payments provided the loan is not closed) Provision for
downward refixation of EMI in respect of floating rate borrowers
who avail Housing Loans of Rs.5 lacs and above, to avail the
benefit of downward revision of interest rate by 1% or more
In-principle approval issued to give you flexibility while
negotiating purchase of a property Option to avail loan at the
place of employment or at the place of construction Attractive
packages in respect of loans granted under tie-up with Central/
State Governments/ PSUs/ reputed corporates and tie-up with reputed
builders (Please contact your nearest branch for details)SERVICES:
DOMESTIC TREASURY SBI VISHWA YATRA FOREIGN TRAVEL CARD BROKING
SERVICES REVISED SERVICE CHARGES ATM SERVICES INTERNET BANKING
E-PAY E-RAIL RBIEFT SAFE DEPOSIT LOCKER GIFT CHEQUES MICR
CODESFOREIGN INWARD REMITTANCESDIFFERENT PRODUCTS OF
SBI:DEPOSITLOANSCARDSDIFFERENT CREDIT CARDS
Savings Account Home Loans Consumer Cards SBI International
cards
Life Plus Senior Citizens Savings Account Loan Against Property
Credit Card SBI Gold cards
Fixed Deposits Personal Loans Travel Card SBI Gold Master
cards
Security Deposits Car Loan Debit Cards Your City Your Cards
Recurring Deposits Loans against Securities Commercial Cards
Tax-Saver Fixed Deposit Two Wheeler Corporate Cards Partnership
Cards
Salary Account Pre-approved Loans Prepaid Card
Advantage WomanSavings Account Retail Asset Purchase Card SBI
Employee Cards
Rural Savings Account Farmer Finance Distribution Cards
People's Savings Account Business Installment Loans Business
Card SBI Advantage Cards
Freedom Savings Account Flexi Cash Merchant Services
PERSONAL LOAN POLICIES IN STATE BANK OF INDIA Introduction to
Advance Product:
Now a day not all the people have the capacity to fulfill their
requirement by their own earning, thats why they need help from
others. For this so many government & private sector bank
provide them money to fulfill their requirement, thats call the
Advance Product (loan product) of the bank. All the banks have so
many different types of advance product as per the requirement of
the people or customers. In Bhubaneswar also there are so many
banks those provide loan to the people for different causes.
Types of Advance Product
Home Loan Educational Loan Car Loan Personal Loan Property Loan
Loan Against Shares\Debentures Etc.
Now a day a large no. of people are taking loan form different
banks. It helps people to fulfill their need and it really easy to
repayment the loan amount with a longer repayment period.
SBI Advance Product
SBI Home Loans:Purpose
Purchase/ Construction of House/ Flat
Purchase of a plot of land for construction of House
Extension/ repair/ renovation/ alteration of an existing House/
Flat
Purchase of Furnishings and Consumer Durables as a part of the
project cost.
Takeoverof an existing loan from other Banks/ Housing Finance
Companies.Eligibility
Minimum age18 years as on the date of sanction
Maximum age limit for a Home Loan borrower is fixed at 70 years,
i.e. the age by which the loan should be fully repaid.
Availability of sufficient, regular and continuous source of
income for servicing the loan repayment.Loan Amount40 to 60 times
of NMI, depending onrepayment capacity as % of NMI as under
Net Annual Income EMI/NMI Ratio
Upto Rs.2 lacs40%
Above Rs.2 lac to Rs. 5 lacs 50%
Above Rs. 5 lacs55%
To enhance loan eligibility you have option to add:
1. Income of your spouse/ your son/ daughter living with you,
provided they have a steady income and his/ her salary account is
maintained with SBI.2. Expected rent accruals (less taxes, cess,
etc.) if the house/ flat being purchased is proposed to be rented
out.3. Depreciation, subject to some conditions.4. Regular income
from all sources
Margin(Special Festival Season Offer)
Purchase/ Construction of a new House/ Flat/ Plot of land: 15%
for loans up to Rs. 1 cr., 20% for loans above Rs. 1 cr. Repairs/
Renovation of an existing House/ Flat: 15%
Interest Rates w.e.f 27.2.2008
Floating interest rates (linked to State Bank Advance Rate -
SBAR)
(SBAR: 12.25% p.a.)
Loan Tenor ->Upto 5 yearsAbove 5 years and upto 15 yearsAbove
15 years and upto 25 years
Upto Rs.30 Lacs2.25% below SBAR,10.00% p.a.2.00% below
SBAR,10.25% p.a.1.75% below SBAR,10.50% p.a.
Above Rs.30 Lacs2.00% below SBAR,10.25% p.a.1.75% below
SBAR,10.50% p.a.1.50% below SBAR,10.75% p.a.
Fixed interest rates
TenureRate of Interest
(p.a.)*Upto10 years12.75%
* Fixed rate loans will be subject to: 'force maejure' clause
andinterestresetat the end of every two years on the basis of fixed
interest rates prevailing then.
CAR LOAN:Purpose
You can take finance for:A new car, jeep or Multi Utility
Vehicles (MUVs)
A usedcar / jeep (not more than5 years old). (Any make or
model).
Take over of existing loan from other Bank/Financial institution
(Conditions
apply)http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117
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. Salient
Featureshttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,117Loan
Amount
There is no upper limit for the amount of a car loan.A maximum
loan amount of 2.5 times the net annual income can be sanctioned.
If married, your spouse's income could also be considered provided
the spouse becomes a co-borrower inthe loan. The loan amount
includes finance for one-time road tax, registration and
insurance!No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit ofRs. 15
lacs.http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117
Type of Loanhttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,1171.
Term Loan2. Overdraft- a) For New vehiclesonly b)Minimum loan
amount: Rs. 3lacs.Documents required
you would need to submitthe following documents along with the
completed application form if you are an existing SBI account
holder: 1. Statement of Bank account of the borrower for last12
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.If you are not an account holder with
SBI you would also need to furnish documents that establish your
identity and give proof of residence.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117Margin
New / Used vehicles: 15% of the on the road price.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,117RepaymentYou
enjoy the longest repayment period in the industry with us.
Repayment period:For Salaried:Maximum of 84 monthsFor Self-employed
& Professionals: Maximum 60 months
Repayment period for usedvehicles:Up to 84 months from the date
of original purchase of the vehicle (subject to maximum tenure as
above).Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be
levied subject to certain conditionsFLOATING RATES: A. for Term
Loans
1. New Vehicles (Term Loan) Floating only W.E.F. February 27,
2008Repayment PeriodAll Centers (SBAR - 12.25%)
Upto 3 years (for loans Rs. 7.5 lac & above)0.75% below SBAR
i.e. 11.50% p.a.
Upto 3 years (for loansbelow Rs. 7.5 lac)0.50% below SBAR i.e.
11.75%p.a.
Above 3 yrs up to 5 yrs (for all loans)0.50% below SBAR i.e.
11.75% p.a.
Above 5 yrs up to 7 yrs (for all loans)0.25% below SBAR i.e.
12.00% p.a.
2. Used Vehicles: Floating only W.E.F. February 27, 2008
Repayment PeriodAll Centers (SBAR-12.25%)
Upto 3 years3.00% above SBAR i.e. 15.25% p.a.
Above 3 yrs up to 7 yrs3.25% above SBAR i.e. 15.50% p.a.
B. For Overdrafts: For New Vehicles only W.E.F. February 27,
2008Repayment PeriodAll Centres (SBAR 12.25%)
Upto 3 years (for loans Rs. 7.5 lac & above)0.25% below SBAR
i.e. 12.00% p.a.
Upto 3 years (for loansbelow Rs. 7.5 lac)AtSBAR i.e. 12.25%
p.a.
Above 3 yrs up to 5 yrs (for all loans)AtSBAR i.e. 12.25%
p.a.
Above 5 yrs up to 7 yrs (for all loans)0.25% above SBAR i.e.
12.50% p.a.
EDUCATION LOAN:A term loan granted to Indian Nationals for
pursuinghigher education in India or abroad where admission has
been secured.
Eligible Courses
All courses having employment prospects are eligible. Graduation
courses/ Post graduation courses/ Professional courses Other
coursesapproved by UGC/Government/AICTE etc.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,118Expenses
considered for loan Fees payable to college/school/hostel
Examination/Library/Laboratory fees Purchase of
Books/Equipment/Instruments/Uniforms Caution Deposit/Building
Fund/Refundable Deposit (maximum 10% tution fees for the entire
course) Travel Expenses/Passage money for studies abroad Purchase
of computers considered necessary for completion of course Cost of
a Two-wheeler upto Rs. 50,000/- Any other expenses required to
complete the course like study tours, project work etc.
Amount of Loan For studies in India, maximum Rs. 10 lacs Studies
abroad, maximum Rs. 20 lacsInterest Rates (with effect from 1st
June 2008)
For loans up to Rs.4 lacs -11.75 % p.a. FloatingFor loans above
Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % FloatingFor loans above
Rs.7.50 lacs -12.25% p.a.
Floatinghttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,118Processing
Fees No processing fee/ upfront charges Deposit of Rs. 5000/- for
education loan for studies abroad which will be adjusted in the
margin moneyRepayment TenureRepayment will commence one year after
completion of course or6 months after securing a job, whichever is
earlier. Place of StudyLoan AmountRepayment in PeriodYears
Studies in IndiaRs.10.0 lacs5-7
Studies Abroad
Rs.20.0 lacs
5-7
Security
Amount
For loans upto Rs. 10.00 lacs for Studies in India and upto Rs.
20.00 lacs for studies abroad
Upto Rs. 4 lacs
No Security
Above Rs. 4 lacs to Rs. 7.50 lacs
Collateral security in the form of suitable third party
Guarantee. The bank may, at its discretion, in exceptional cases,
weive third party guarantee if satisfied with the net-worth/means
of parent/s who would be executing the documents as "joint
borrower"
Above Rs. 7.50 lacs.
Tangible collateral security of suitable value, along with the
assignment of future income of the student For payment of
installments.
All loans should be secured by parent(s)/guardian of the student
borrower. In case of married person, co-obligator can be either
spouse or the parent(s)/
parents-in-lawhttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,118Margin
For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0
lacs: Studies in India: 5% Studies Abroad: 15%Documentation
Required Completed Education Loan Application Form. Mark sheets of
last qualifying examination Proof of admission scholarship,
studentship etc Schedule of expenses for the specified course 2
passport size photographs Borrower's Bank account statement for the
last six months Income tax assessment order, of last 2 years Brief
statement of assets and liabilities, of the Co-borrower Proof of
Income (i.e. Salary slips/ Form 16 etc)
SBI SARAL PERSONAL LOAN:
PurposeThe 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.)
EligibilityYou 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 AmountYour personal loan limit would be
determined by your income and repayment capacity. Minimum:
Rs.24,000/- in metro and urban centresRs.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 RequiredImportant documents to be furnished while
opening a Personal Loan Account:
For existing bank customersPassport size photograph
From salaried individuals Latest salary slip and Form 16
MarginWe do not insist on any margin amount.
Interest Rates 3.25% above SBAR floating i.e. 15.50% p.a.
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.
SecurityNIL
Processing Fee Processing charges are 1-2% 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.
PROPERTY LOAN:Purpose This is an all purpose loan, i.e., the
loan can be obtained for any purpose whatsoever. If amount of loan
isRs.25.00 lacs and above then purpose of loan will have to be
specified along with an undertaking that loan will not be used for
any speculative purpose whatever including speculation on real
estate and equity
shares.http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120EligibilityYou
are eligible if you are: A. An individual who is; a. An Employee or
b. A Professional, self-employed or an income tax assesse or c.
Engaged in agricultural and allied activities.
B. Your Net Monthly Income (salaried) is in excess of
Rs.12,000/- or Net Annual Income (others) is in excess of
Rs.1,50,000/-.
The income of the spouse may be added if he/she is a co-borrower
or a guarantor.
C. Maximum age limit: 60 years. Salient Features
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120Loan
AmountMinimum: Rs.25, 000/- Maximum: Rs.1 crore. The amount is
decided by the following calculation: 24 times the net monthly
income of salaried persons (Net of all deductions including TDS) OR
2 times the net annual income of others (income as per latest IT
return less taxes
payable)http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120MarginWe
will finance upto 75% of the market value of your property.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120InterestTerm Loan
0.75% above SBAR. i.e.13.00% p.a. Floating
Repaymenthttp://www.sbi.co.in/viewsection.jsp?id=0,1,20,120Maximum
of 60 equated monthly installments, upto 120 months for salaried
individuals with check-off facility. You could opt to divert any
surplus funds towards prepayment of the loan without attracting any
penalty.
http://www.sbi.co.in/viewsection.jsp?id=0,1,20,120SecurityAs per
banks extant instructions.
LOAN AGAINST SHARES \ DEBENTURES:
Eligibility This facility is available to our existing
individual customers enjoying a strong relationship with SBI. This
loan could be availed either singly or as a joint account with
spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is
offered as an Overdraft or Demand Loan.
The facility is available at 50 select centers.
Salient Features:PurposeFor meeting contingencies and needs of
personal nature. Loan will be permitted for subscribing to rights
or new issue of shares / debentures against the security of
existing shares / debentures. Loan will not be sanctioned for (i)
speculative purposes (ii) inter-corporate investments or (iii)
acquiring controlling interest in company / companies.Loan Amount
You can avail of loans up to Rs 20.00 lacs against your
shares/debentures.
Documents Required You will be required to submit a declaration
indicating: Details of loans availed from other banks/ branches for
acquiring shares/ debentures. Details of loans availed from other
banks/ branches against security of shares/ debenturesMarginYou
will need to provide a margin amount of 50% of the prevailing
market prices of the shares/ non-convertible debentures being
offered as security. (The market prices refer to the prices in the
Stock Exchanges as reported in the Economic Times.)
InterestAt SBAR Floating i.e. 12.25% p.a.Repayment Schedule To
be liquidated in maximum period of 30 months through a suitable
reducing DP programme.
In case of a default or if the outstanding is over Rs.20.00
lacs, the shares/debentures will be transferred in the name of the
Bank.
Security: Pledge of the demat shares/debentures against which
overdraft is granted.
RESEARCH METHODOLOGYAccording to Green and Tall A research
design is the specification of the methods and procedures for
acquiring the information needed. It is the overall operational
pattern or framework of the project that stipulates which
information is to be collected, from where it is to be collected
and by what proceduresThis research process based on primary data
analysis and secondary data analysis will be clearly defined to
meet the objectives of the study. I chose the primary sources to
get the data. A questionnaire was designed in accordance with our
mentor in HDFC . I chose a sample of about 45 corporate customers
around the Sagar City from which I can get the instant information
of whose analysis will give me the desired outcome of my research
project. I collected some data from the secondary sources like
published Company documents, internet etc.
Research DesignA research design is the arrangement of
conditions for collections and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in
procedures. It is a descriptive cross sectional design .It is the
conceptual structure with in which research is conducted; it
constitutes the blueprint for the collection, measurement and
analysis of data.It is needed because it facilitates the smooth
sailing of the various research operations, thereby making research
as efficient as possible yielding maximal information with minimal
expenditure of effort, time and money. In the preliminary stage, my
research stage constituted of exploratory study by which it is
clear that the existence of the problem is obvious .So, I can
directly head for the conclusive research. Sampling PlanSampling
plan is a distinct phase of research process. In this stage I have
to determine who is to be sampled, how large should be the needed
sample and how sampling unit is to be selected.PopulationIn my
research, I have defined my population as a complete set of
customers of Sagar CitySample SurveyAs compared to census study, a
sample study has been conducted by us because of: Wide range of
population, it was impossible to cover the whole population Time
and money constraints.Sample UnitIn this survey I took the list of
customers from the dealers of HDFC in Sagar City.Sampling Technique
Sampling technique implies the method of choosing the sample items,
the two methods of selecting sample are: Probability method.
Non-probability method.Probability method is those in which every
item of the universe has an equal chance of the inclusion in the
sample. Non-probability methods are those that do not provide every
item in the universe with known cause of being included in the
sample. The selection process is partially subjective.For my study,
I employed the Non-probability sampling technique, in which I got
the data of the customers from the dealer of HDFC in Sagar City
Instrument of collection of dataI have used one set of
questionnaire to collect data from the customers. This
questionnaire is structured and highly ordered. This includes both
close ended and open ended questions. The close ended questions
included both dichotomous and multiple choice questions.Data
analysis and interpretations Large volumes of raw data were
collected through questionnaires in my research study. This raw
data has been further converted into significant statistical
information before further interpretation so that I can answer my
research objective well. The collected raw data was then edited and
coded by the researchers to eliminate errors and to assign data to
pertinent categories. The data was then tabulated and presented
with the help of bar diagrams and pie charts.
DATA ANALYSIS AND INTERPRETATION
Q1. On which bank you depend for your regular transaction?
( ) No. of People
SBI60 % (1200)
ICICI33 % (660)
HDFC5% (100)
OTHER2% (40)
TOTAL NO. OF PEOPLE2000
It has been observed that approximately 60% correspondents are
using the service of SBI for their daily transaction, around 33% of
people are using ICICI Bank for their transaction and only 5% &
2% of people are using HDFC & other Bank service respectively
in Bhubaneswar. It also shows that SBI have the highest market
position in Bhubaneswar as per my sample.
Q2. Are you aware of products & services provided by
SBI?
YES
85% (1700)
NO15% (300)
Total No. of People2000
From the above data it is clear that most of the customers
(around 85%) of Bhubaneswar have the idea about the product &
services of SBI, the rest 15% have the idea about the product they
are using. In this 15% most of the people are from typical rural
area (Farmers).
Q3. If yes are you aware of the advance products (Loan segments)
of SBI?
YES95%(1900)
NO5% (100)
TOTAL NO. OF PEOPLE2000
It is clear that most of the people have the idea about the
advance product of SBI. Almost all the 95% people who have the idea
about the advance product are the user of SBI product &
service.
Q4. Which bank you prefer for taking loans?
SBI85% (1800)
ICICI7% (140)
HDFC2% (40)
OTHER1% (20)
TOTAL NO. OF PEOPLE2000
According to my sample size 85% of people prefer SBI for loan
product, but some people prefer ICICI, HDFC or OTHER Bank for loan
because they are working with that bank & it is easier for them
to get loan from their bank & it easier for them to pay the
interest because it is less as compare to other bank because they
are the employee of that bank.
Q.6 Which loan product of SBI you have used?
HOME LOAN47% (846)
EDUCATIONAL LOAN20% (360)
CAR LOAN15% (270)
PERSONAL LOAN10% (180)
OTHER8% (144)
TOTAL NO. OF PEOPLE1800
From the sample size 85% of people are using the SBI loan
product. From the 1800 people 47% of people took home loan from
SBI. 20% of people took education loan for their children, 15% of
people took car loan from SBI. Some of the customer took 2 type of
loan from SBI like both car & educational loan and home &
car loan. 10% of people took personal loan.
Q7. What do you feel about the services providing by SBI in
advance product?
Bad0% (0)
Satisfactory
2% (40)
Good
55% (1100)
Excellent
43% (860)
TOTAL NO. OF PEOPLE
2000
From this it is clear that the service provide by SBI in its
advance product is good in between the customer. All of them
satisfy with the product provide by SBI. 55% of people said that
the service provide by SBI is good & 43% said it is excellent
& just 2% of people said that it is satisfactory.
Q8. Which features you like most in Loan segments of SBI?
LESS PAPER WORK3% (60)
ATTRACTIVE INTEREST RATE35% (700)
TRANSPARENCY20% (400)
SIMPLE AND FAST PROCESSING2% (40)
LONGER REPAYMENT PERIOD40% (800)
TOTAL NO. OF PEOPLE2000
Most of the people like the attractive interest rate &
longer repayment period. Its easier for people to repay the whole
loan amount with its interest with low interest rate and with
longer repayment period.
PROJECT Findings:
From this project it is found that SBI advance product having
the 1st place in the market at Bhubaneswar, there is a great
opportunity to compete with ICICI Bank & to retain its customer
by fulfilling the requirement of customer in SBI advance product.
It has been observed that approximately 85% correspondents are
using advance product of SBI and 15% are not using any type of
advance product of SBI in Bhubaneswar. All of SBI customers are
satisfied with the services provided by the bank. Many of these
customers satisfied with the low interest rate and longer repayment
period of the advance product. Most of the customers at Bhubaneswar
prefer to take loan from SBI. Approximately 43% of advance product
users said that the service of SBI in advance product is excellent.
A response from customer care is so clear & good. Many
customers have no time to call customer care so that they are not
able to know about the service & features of SBI advance
product. Most customers are shifted from other banks advance
product to SBI because of hidden charges, high interest rate, less
repayment period. Government employees are more concern than
private employees for advance product.
REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:
LESS PAPER WORK ATTRACTIVE INTEREST RATES TRANSPARENCY SIMPLE
& FAST PROCESSING LONGER REPAYMENT PERIOD QUICK PROCESSING
Suggestion & Recommendation
Recommendation:
Customer awareness programme is required so that more people
should attract towards advance product. If there are any kind of
hidden charges than that must disclose to customer before giving
loan to them. SBI must take some steps so that customers can get
their loan in time. Like phone verification by customer care that
one customer is got their loan on time or not .It must be before a
certain date so necessary steps can be taken. SBI should more
concern about physical verification rather than phone verification
so it will avoid fraud or cheating. Advance product selling agents
must not give any type of wrong information regarding advance
product. For the better service new offers would be require. SBI
customer care should more concern about the fastest settlement of
customer problems. Before deducting or charging any monetary charge
SBI must consult with customer. Agents should be trained, well
educated & proper trained to convince the people about
different advance product. It is the duty of the bank to disclose
all the material facts regarding advance product, like interest
charged, repayment period, other types of charges, etc. Special
scheme should be implemented to encourage both customer and agents.
The bank should increase the period for repayment of loan. SBI
should more focus on Retaining existing customers. SBI must focus
on Segmentation based on customer knowledge Product offering based
on customer demand. SBI must take feedbacks of customers regarding
features & services.
Conclusion
From the analysis part it can be conclude that customers have a
good respond towards SBI advance products in Bhubaneswar. SBI is in
1st position having large number of customers & providing good
services to them. The bank has a wide customer base, so the bank
should concentrate on this to retain these customers.
In present scenario SBI is the largest advance product issuer in
India. Within a very short period of time the achievement made by
SBI is excellent, what a normal bank cannot expect, but it is being
done by SBI. It happens due to employee dedication towards the
organization, fastest growing Indian economy, & brand
image.
To be the largest advance product issuer, SBI should focus
on-
Launch Innovative product Customized advance products Better
customer services Fastest customers problem solving techniques
Customer retention Apart from all the above, SBI believe in
providing good customer services to their customers which is a key
factor for success in future.
QuestionnaireName -
_____________________________________Occupation-__________________________________Contact
Detail -_______________________________
Q. On which bank you depend for your regular transaction?a)
SBIb) ICICI Bankc) HDFC Bankd) Other Bank, Specify
(_____________)Q. Are you aware of products & services provided
by SBI?a) YESb) NOQ. If yes are you aware of the advance products
(Loan segments) of SBI?a) YESb) NOQ. Which bank you prefer for
taking loans?a) SBIb) ICICI Bankc) HDFC Bankd) Other Bank, Specify
(_____________)Q. If you prefer SBI for taking loan than what
influence you to take Loan from
SBI?__________________________________________________________________________________________________________________________________________________________________________Q.
Which loan product of SBI you have used?a) Home Loanb) Education
Loanc) Car Loand) Personal Loane) Other Loans, Specify (
______________ )Q. What do you feel about the services providing by
SBI in advance product?a) Badb) Satisfactoryc) Goodd) ExcellentQ.
Which features you like most in Loan segments of SBI?a) Less paper
workb) Attractive interest ratec) Transparencyd) Simple & fast
processinge) Flexibility to choose an EMI base loan or an
overdraftf) Longer tenure lone for ease of repayment g) Specially
design product for self employedh) Any other feature, specify (
_____________ )Q. Any suggestion you want to give for the
betterment of SBI advance
product.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Bibliography:Text Books:
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having,
Being. 5th Ed.New Jersey: Prentice Hall
Wilson A. (2003), Marketing Research: An Integrated Approach
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation,
Fifth Edition
Internet: www.google.co.in www.sbi.com www.sbi.co.in
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