Вы находитесь на странице: 1из 99

SUMMER TRAINING PROJECT REPORT ON A DETAILED STUDY OF BOI CAR LOAN

SUBMITTED TO
BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES GOVERNMENT OF NCT OF DELHI, DELHI 92 [AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI]

IN PARTIAL FULFILMENT OF MASTER OF BUSINESS ADMINISTRATION (MBA) [2009-2010]

BY: [AMIT KUMAR NANGLU] ROLL NO. 03811403909

UNDER THE SUPERVISION OF: [Mr. GTVLN CHARYULU]

BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES GOVERNMENT OF NCT OF DELHI, DELHI-92 [AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI]

CERTIFICATE OF ORIGIN
This is to certify that Mr. AMIT KUMAR NANGLU the bonafide student of Master of Business Administration (MBA) Third Semester, in Bhai Parmanand Institute of Business Studies (BPIBS), Govt. of NCT, Shakarpur, Delhi, has worked under the able guidance and supervision of Mr. SK JAIN Sr. Manager of BANK OF INDIA ,MAYUR VIHAR PHASE -1 BRANCH. He was on training for the period of 6 weeks, starting from 22nd June, 10 to 2nd August, 10. This Summer Internship report on the topic A DETAIL STUDY OF BOI CAR LOAN submitted in partial fulfillment of the requirements of the program has the requisite standard for the partial fulfillment the post Graduate Degree in MBA. To the best of our knowledge, no part of this report has been reproduced from any other report and the contents are based on original research.
Mr.GTVLN CHARYULU

AMIT KUMAR NANGLU Roll No.03811433909 DEPARTMENT] M.B.A., Third Semester BPIBS,
BPIBS,

(PROJECTGUIDE)

[MBA

Shakarpur, Delhi
Shakarpur, Delhi

ACKNOWLEDGMENT

IT IS A PLEASURE TO RECORD MY THANKS AND GRATITUDE TO PERSONS AND ORGANIZATION WHOSE GENEROUS HELP AND SUPPORT ENABLED ME TO COMPLETE THIS PROJECT WITHIN THE STIPULATED TIME PERIOD. MY SPECIAL THANKS ARE DUE TO Mr. SK JAIN (SR MANAGER) BANK OF INDIA , NEW DELHI FOR HIS ACTIVE HELP AND SUPPORT IN MAKING ME UNDERSTAND THE BANKING PRODUCTS & SERVICES. I ALSO THANK TO Mr. PRADEEP KUMAR AND BANK EMPLOYEES AND STAFF MEMBERS OF THE BRANCH FOR PROVIDING ME THEIR HELP AND COOPERATION AT EACH STAGE.

I AM GREATLY INDEBITED TO ALL THOSE PERSONS WHO HAVE HELPED ME IN SOME WAY OR OTHER IN THE COMPLETION OF THE PROJECT.

HOWEVER, I TAKE THE RESPONSIBILITY OF ALL MY SHORTCOMINGS.

A MIT KUMAR NANGLU ROLLNO.03811433909 M.B.A., Third Semester BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES,
3

Shakarpur, Delhi

CONTENTS

PARTICULARS
Certificate of the organization Certificate of project guide Acknowledgement Executive summary

Page No.

CHAPTER -1

INTRODUCTION

1.1 Objective of study 1.2 Methodology 1.2.1 Research Design 1.2.2 Data Collection Approach
CHAPTER -2 ORGANISATIONAL PROFILE

2 .1 Introduction 2.2 profile 2.3 Quality policy of BOI 2.4 Vision 2.5 Mission 2.6 Awards 2.7 Detail Business Overview 2.8 Subsidiaries Of BOI 2.9 Services Provided by BOI

CHAPTER-3

RESEARCH STUDY OF MAIN TOPIC

3.1 3.2 3.3 3.4

Car Loan Scheme Car Finance Auto Loan Product Overview New Car Loan Documents and Procedure 3.5 Car Loan Process 3.6 Calculation of EMI 3.7 Comparison of Different Banks Car Loan Scheme

CHAPTER -4

ANALYSIS AND FINDINGS

4.1 Analysis 4.2 Findings


CHAPTER -5 CONCLUSION AND SUGGESTIONS

5.1 Conclusion 5.2 Suggestions 5.3 Limitations


CHAPTER -6 BIBLOGRAPHY

CHAPTER -7

ANNEXTURE

7.1 Questionnaire 7.2 Project summary 7.3 Evaluation Sheet 7.4 Performance Appraisal Sheet

EXECUTIVE SUMMARY

Bank of India is offering all the modern and essential facilities to the customers of the car loan.

The other banks , which offers car loan , as a separate product is SBI, Bank of Baroda ,Oriental Bank of Commerce, UCO Bank, Dena Bank, Indian Bank, ABN AMRO Bank, HDFC.

Rate of interest offered by respective banks are: Bank of India Bank of Baroda HDFC UCO Bank OBC SBI ABN AMRO Bank Dena Bank 8.75 % 10% 10.50% 11.30% 11.50% 10.25% -10.75% 8% - 11.25% 15% 10.75% -11.00%

(These Rates may vary from time to time)

Bank of India, SBI, HDFC, Dena Bank, UCO Bank and Indian Bank provides car loan in easy way. Maximum amount of loan provide by different banks for car loan.

Bank of India - For Individuals: 24 times of monthly gross salary or Rs25lakhs whichever is lower.

Higher amount of loan may also be considered in deserving cases. For Business concern: Rs100lakh or Rs1crore SBI UCO Bank Dena Bank

- Rs15lakh. - Rs7.50lakh or 85% - Rs 8lakh - Rs 20lakh

ABN AMRO Bank

Bank of India is providing maximum amount of loan among public sector banks.

Processing fees of different banks for car loans

Bank of India

1.10% or Rs1000

UCO Bank

1% or Rs1000

HDFC Bank Rs5000

Rs2150

Dena bank

Rs 1000

SBI

0.50%

ABN AMRO Bank

Rs1000

Bank of Baroda 0.25%

Rs1000 or

ICICI Bank Rs5000

Rs2500

Bank of India first among the nationalized bank to establish a fully computerized branches & A.T.M facility.

Bank of India is also providing Internet banking facility to their customers.

All branches of Bank of India are C.B.S & R.T.G.S/NEFT enabled.

CHAPTER 1 INTRODUCTION

OBJECTIVE OF THE STUDY

TO STUDY THE CAR LOAN PROVIDED BY BANK OF INDIA TO THEIR CUSTOMERS.

10

TO STUDY THE DETAILED PROCEDURE INVOLVED IN THE SANCTIONING OF CAR LOAN.

TO STUDY THE AWARENESS OF THE CAR LOAN AMONG THE CUSTOMER

MAKE A COMPARATIVE STUDY OF BANK OF INDIA CAR LOAN WITH OTHER COMPETITIVE BANKS

TO STUDY THE RULES AND DOCUMENTS REQUIRED BY BANK OF INDIA FOR CAR LOAN

11

1.2 METHODOLOGY

1.2.1 RESEARCH METHODOLOGY


Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The objective is to examine all the issues involved & conduct situational analysis. The methodology includes the overall research design, sampling procedure & fieldwork done & finally the analysis procedure. The methodology used in the study consistent of sample survey using both primary & secondary data. The primary data has been collected with the help of questionnaire as well as personal observation, books, magazine, journals have been referred for secondary data. The questionnaire has been drafted & presented by the researcher himself.

Sample Size:
Sample of 100 people was taken into study, and was collected.

Sampling Techniques:
To study the project, a Simple Random Sampling technique is used.

Data Collection:
Collection of data is done by Secondary Data & through

Questionnaire
i.e., Primary data was collected through Questionnaire.

12

1.2.2 DATA COLLECTION APPROACH

Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The objective is to examine all the issues involved & conduct situational analysis. The methodology includes the overall research design, sampling procedure &fieldwork done & finally the analysis procedure. The methodology used in the study consistent of sample survey using both primary & secondary data. The primary data has been collected with the help of questionnaire as well as personal observation, books, magazine, journals have been referred for secondary data. The questionnaire has been drafted & presented by the researcher himself.

13

CHAPTER - 2
ORGANISATIONAL STRUCTURE

14

INTRODUCTION

HISTORY OF BANK OF INDIA


Bank of India was founded on 7th September, 1906 by a group of eminent businessman from Mumbai. The bank was under private ownership & control till July 1969 when it was nationalized along with 13 other banks. Beginning with one office in Mumbai, with a paid up capital of Rs50lakhs & 50 employees, the bank has made a rapid growth over the years & blossomed into a mightly institution with a strong national presence & sizable international operations. In business volume, the bank occupies a premier position among the nationalized banks.

The bank has 3101 branches in India spread over all states/union territories including 141 specialized branches. These branches are controlled through 48 zonal offices. There are 29 branches/offices (including 3 representative offices) abroad. The bank came out with the maiden public issue in 1997 & follow on qualified institution placement in February 2008. Total number of shareholders as on 30/09/2009 is 215790.

While firmly adhering to a policy of prudence & caution, the bank has been in the forefront of introducing various innovative services & systems. Business has been conducted with the successful blend of traditional values & ethics & the most
15

modern infrastructure. The bank has been the 1st among the nationalized banks to establish a fully computerized branches & A.T.M facility at Mumbai was back in 1989. The bank is also a founder member of SWIFT in India. It pioneered the code system in 1982, for evaluating/rating its credit portfolio.

The bank association with the capital market goes back to 1921. When it entered into an agreement with the Bombay stock exchange (B.S.E) to manage the B.S.E clearing house. It is an association that has blossomed into a joint venture with B.S.E, called the B.O.I shareholding L.T.D to the stock broking community, Bank of India was the 1st Indian bank to open a branch outside the country at London, in 1946, & also the 1st to open a branch in Europe, Paris in 1974. The bank has sizable presence abroad, with a network of 29 branches (including 5 representative offices) at key banking & financial centre VIZ London, New York, Paris, Tokyo, Hong Kong, & Singapore. The international business accounts 17.82% of banks total business.

16

Miles Stones:
1906: Group of Eminent Businessmen Establishes the Bank. 1946: Opening of London Branch:- 1st Indian Bank to open a Branch Overseas. 1950: Opening of Tokyo Branch:- 1st Indian Bank to open a Branch in Japan. 1969: Nationalization along with 13 others Banks Branch Network: Indian: 207 & Foreign: 12. 1989: Established BOI Shareholding Ltd A JV with Bombay Stock Exchange (BSE) TO manage Clearing House of BSE. 1997: Launched maiden IPO Govt. Shareholding diluted to 76.53%. 2003: Ranked as Indias Most Trusted Services Brand Consecutively for 3 years by AC Nielsen ORG MARG. 2004: Ranked 25th Among Indias Top 200 Companies by D&B.
17

2007: Surpassed Landmark of INR 10bn in Net Profits. 2008: Surpassed Landmark of INR 20bn in Net Profits. 2009: Surpassed Landmark of INR 30bn in Net Profits.

18

QUALITY POLICY OF BANK OF INDIA


We at Bank of India, are committed to become the bank of choice by providing

SUPERIOR PROACTIVE INNOVATIVE STATE OF THE ART Banking services with an attitude of care & concern for the customers & patrons.

19

VISION OF BANK OF INDIA


To become the bank of choice for corporate medium business & Up market retail, customers & to provide cost effective developmental banking for small business, mass market & rural market.

20

MISSION OF BANK OF INDIA


To provide superior, proactive banking service to niche market, globally while providing cost effective, responsive services, to others in our role as a development bank, & in so doing, meet the requirements of our stakeholders.

21

AWARDS ACHIEVED BY BOI

Bank of India wins dun & Bradstreet award for the best public sector bank category 2010. The award for the most efficient public sector banks conferred by Dalal Street.

Best performance in western zone under the rural employment generation program.

Bank has been rated by the Economic times/The Nielsen company survey as the most trusted brand(MTB) 2009 as follows-

Under the PSU Banking Category 2nd next to S.B.I. Under top service brands 8th. The Debuntant 1st time in top 100.

NDTV Profit Business Leadership Awards 2009 Best PSU Bank.

CIO green information technology award.

FE-EY most efficient Public Sector Bank Awards 2009, Best Bank under Banking Category.

22

2nd Rank for Excellent Performance in Lending to Medium Enterprises also, Best Performing Bank for covering maximum number of Micro & Small accounts under collateral Free Lending Scheme of CGT MSE.

DETAIL BUSINESS OVERVIEW


Business: domestic business of the bank increased to Rs 3,31779crore as on march31, 2010 registering an absolute accretion of Rs 56,938crore and a growth of 21%. Including the business of foreign branches at London, Paris, New York, Tokyo, Singapore, Hon Kong, The banks global business amounted to Rs4,01,079cr

Total Business(Amt Rs.cr.)

23

SHARE HOLDING PATTERN


(%) As on June 31, 2010

24

RESOURCE MOBILISATION
Total deposits of the bank amounted to Rs 2,29762cr as on march 30,2010 showing an absolute accretion of Rs 40,054cr.and a growth of 21% over previous year. The share of low cost deposits (current and savings) in total domestic deposits stood at 31.75%.

Total Deposit (Amt Rs. Cr)

25

(As on 31st March 10)

TOTAL ADVANCES IN INDIA


In recent years the advances segment grow very quickly. These loans are provided by bank on very easy terms and condition with less paper work which attract people to borrow money to fulfill their requirements. The following figures show the amazing growth in advances sectors.

YEARS

2007

2008

2009

2010
26

TOTAL ADVANCE S

86791

114793

144732

171317

SUBSIDIARIES INFORMATION ABOUT SUBSIDIARIES, JOINT VENTURES & ASSOCIATES

BOI SHAREHOLDING LTD.

27

Banks association with Bombay stock exchange LTD. (B.S.E) spans over a period of more than 8 decades with the clearing & settlement functions of the Bombay stock exchange LTD.(B.S.E) handled by the bank. Later on 1989, bank setup B.O.I shareholding LTD., as a joint venture with B.S.E to manage the clearing house activities of the exchange. The company is carrying out the demat rolling settlement on T+2 basis of the exchange through the national securities depository services L.T.D (NSDL) & Central depository services (India) L.T.D (CDSL) efficiently & also the settlement of G - secs through an integrated computerized system. With a view to optimizing use of its trained manpower & sophisticated I.T infrastructure, besides handling settlement related work of the exchange, the company also extends depository services to member brokers of the stock exchange & the retail investors. During 200405 the company commenced new business activity i.e franking of stamp documents, which has proved to be highly lucrative & has been contributing significantly to the revenues of the company, with the corporatization of the stock exchange, Mumbai & its transformation in to a corporate entity Viz the Bombay stock exchange L.T.D. During the year, the clearing & settlement function of B.O.I shareholding L.T.D are likely to get transferred to a clearing corporation in future. B.O.I.S.L earned a net profit of Rs309.25lakh during 2005-06 as against Rs152.13lakh earned during F.Y 2005-06 & final dividend of 45% taking total dividend for F.Y2005-06 to 60% as against 25% dividend paid during the F.Y2004-05.
28

B.O.I Mutual Fund


Associates Companies
1. Star Union Dai-Ichi Life Insurance Co. L.T.D

2. Securities Trading Corporation of India L.T.D Securities Trading Corporation of India L.T.D (STCI)
Securities trading corporation of India L.T.D (STCI) is one of the primary dealers in the country enjoying the highest credit rating of P1+ by Crisil & A1+ by ICRA for short term debt instruments. The bank is the single largest stake holders of STCI with 29.95% stake in its equity. The year 2004 05 witnessed a sudden & swift hardency of interest rates & narrowing down on margin in trading & glit securities as such all major PDS including STCI incurred losses from operations. For the 1st time in its history, the company incurred a loss of Rs97cr during F.Y-2004-05 with diversification plan & strategies, the company made a quick turn around & earned a net profit of Rs24cr during the F.Y-2005-06. During the year STCI also successfully bid for acquiring the U.T.I securities L.T.D from the specified undertaking of the unit trust of India with this acquisition STCI hopes
29

to mark its presence in the field of equity trading, portfolio mgt. services, commodity trading, depository services etc.

STAR UNION DAI-ICHI LIFE INSURANCE CO L.T.D Bank of India & Union bank of India two leading public sector bank in India, & the Dai-Ichi mutual life insurance company a leading Japanese company in the life insurance market, have floated a joint venture company, star union Dai-Ichi life insurance co. L.T.D, for undertaking life insurance business in India. The company, has been incorporated/registered with the registrar of companies, Maharashtra on 25th September, 2007 & will be a Mumbai based company. The company application for license is under IRDAS consideration. The company is well advanced in preparation for setting up office, putting up the team & other infrastructure. The joint venture agreement, among others envisages, a capital stake of 51% by BOI, 26% by Dai-Ichi-life & 23% by union bank. The joint venture company would have initial paidup capital of Rs250.00cr. The joint venture company with the strength of the domestic partners in the Indian financial, sector coupled with the DaiIchi-lifes strong domain expertise is expected, to be a strong player in the Indian life insurance market in a short time, the company aims to develop various products to serve all strata of the society. Bank of India & Union bank of India have a strong nationwide network of more than 5000 offices, which shall provide a sound distribution channel with a wide reach which is the key to the success of an which is the key to the success of an insurance venture. More then 48 million strong banking customer base of
30

the 2 banks provides ready scope of cross selling of insurance products. The 2 banks have strong brand equity and command high level of trust among their customers & people at large. Additionally the regional rural banks sponsored by the 2 banks have more than 1400 branches to tap life insurance business in the rural areas. Dai-Ichi- life is a leading player in the life insurance segments in Japan & is one of the top 10 life insurers in the world & the second largest life insurance company in Japan. Established in 1902, it has more than a venture of experience in life Insurance business. It has sound product knowledge, share asset mgt. skills & strong operational capabilities to manage life insurance the best insurance JV partner on the domain side. Star union Dai-Ichi-life insurance company L.T.D is also committed to providing partners are in the presence of insurance to rural & weaker/social sectors. Both the domestic partners are in the process of implementing GOVT OF INDIA initiative of financial inclusion & their pan India network, of branches gives the company a natural edge in catering to these sectors effectively. With the strong brand & commitment of the partners, star union Dai-Ichi- life insurance company L.T.D, promises to be a new stair on the horizon of the India life insurance scene, promising value to all stake holders.

31

Services provided by Bank of India


Personal Banking Bank of India Basic Savings bank Account
These accounts are designed to help the individuals (personal customers) to inculcate the habit of saving money and to meet their future requirement of money. The amounts can be deposited/ withdrawn from these accounts by way of Cheques/withdrawal slips/ATMS. It help the customers to keep minimum cash at home besides earning interests. Savings bank Accounts are very popular. These accounts can be opened by eligible person/s and certain organization/agencies (as approved by the Reserve Bank of India (RBI). As required by law, while opening this account, we will satisfy ourselves about the identity including verification of address of a person/s seeking to open an account; to assist in protecting the prospective customers, member of the public and ourselves, against fraud and other misuses of the banking systems. 2. Star Diamond Saving Account. 3. Star Sunidhi Tax- Saving Deposit Scheme 4. BOI Saving Plus Scheme

BOI CURRENT ACCOUNT


1. 2.

Bank of India Current Deposit Plus. Super Current Deposit plus Account.
32

3.

Star diamond & Star Diamond plus Current Account.

Individuals, Partnership Firms, Private & Public LTD Companies, HUFs/Specified Associates, Societies, Trusts, can open Current Accounts etc.

BOI Term Deposits Schemes

Double Benefit Deposit

Fixed Deposit Receipt Short Deposit Receipt Quarterly Income Certificate Monthly Income Certificate Recurring Deposit

BOI Retail Credit Scheme Star Auto Fin Scheme Star Educational Loan Star Holiday Loan Star Home Loan Scheme Star I.P.O Star Mortgage Loan
33

Star Mortgage Loan (For Farmers Arthias & Dealers of Agricultural Inputs ) Star Personal Loan Star Pensioner Loan

Star Mitra Personal Loan (A Physically Challenged)

Star Women Gold Loan Scheme

Bank of India Pensioners Credit Card Scheme for extending Loan facility against pledge of gold coins) Ornaments. Small & Medium Enterprise & O.P.S

Laghu Udyog Suvidha Scheme(SLUSS).

Credit Guarantee Fund Trust Scheme Micro & Small Enterprises.

Bank of India Swarojgar Credit Card (BOISCC)

BOI Star Channel Credit Scheme for financial assistance to distributors & super stockist of medicines. Financial assistance for setting up Akshay Urja Shops. Loan for Tax Return Prepares (T.R.P).
34

Retail Credit. BOI Artisans Credit Card (ACC). Star Dhanvantri Suvidha Scheme.

BOI Online Service

Mobile Banking & Payment.

Internet Banking. Pay Bills. Book Air Ticket. Book Rail Ticket. Online ASBA IPO. Direct Tax. Central Excises, Services Tax.

Online Trading in Shares.

Star e Remit. 2FA/ Start Token. Online Internet Bank Fund Transfer. Locker Facilities. Gold Business.

Bank of India Rupee Travellers cheques.

35

BOI Credit Cards

India Card. Taj Premium Card. Visa Electron Debit Card. Gold International Credit Card.

My Place
36

Women
Financial Independence for women is now within easy reach with support of BOI. Bank of India provides the independent women of today a spectrum of financial facilities. The facilities provided by the bank, exclusively to women for their Empowerment are as under:-

Star Women Gold Scheme.

Besides the above schemes for women, the following additional facilities provided to women entrepreneurs.

Priority Sector Schemea) Credit assistance to women entrepreneurs in tiny & SSI sector. b) Credit assistance to women beneficiaries in other priority sector schemes. c) Credit facilities to women entrepreneurs under various Govt. sponsored schemes like

Prime Ministers Rozgar Yojana(PMRY) Swarnjayanti Gram Swarozgar Yojna(SGSY) Swarnjayanti Shahari Rozgar Yojna (SJSRY)

37

Scheme for Liberation & Rehabilitation of Scavengers(SLRS) Interest Concession in respect of loan to women beneficiary.

Priority Sector Credit:

Particulars As on 31st March 2009

As on 31st March 2010

Growth Growth in in Amount Percentage

Agriculture 16,284 18,256 1,972 Small Enterprises Housing Education Total Priority Sector 5,921 1,326 6,343 1,716 390 422 17,941 25,810 7,869

12.11% 43.86% 29.11% 7.12% 25.68%

41,472 52,125 10,653

38

Farmers
Bank of India harnesses continued support to the agrarian society by providing adequate financial facilities to farmers for meeting short-term working capital requirements. 1. BOI Shatabdi Krishi Vikas Card. 2. Star Bhoomiheen Kisan Card (Star - BKC) 3. Bank of India (Samanya Credit Card) 4. Kisan Credit Card. 5. Kisan Samadhan Card.

Agricultural Credit Schemes

Farm Mechanization. Minor Irrigation. Dairy Development.

Scheme for financing Commodities held in the form of warehouse Receipts.

National Crop Insurance Scheme (India).


39

Land Development.

KVICS Margin Money Scheme

Scheme of Financial Assistance for Setting up Kisan Sewa Kendras.

Senior Citizens
Senior Citizens Scheme Bank of India has introduced special loan schemes for senior citizens with low interest rates such as personal loan scheme for Pensioners to meet their immediate requirements such as Medical Expenses. The scheme helps in realizing the vision of serving people for a better quality of life. Depositor means an individual Who has attained the age of 60 years or above on the date of opening of an account under the provisions of these rules, and by whom, or on whose behalf, money is deposited in an account under these rules. A depositor may open the account in individual capacity or jointly with spouse.

40

Professionals
Bank of India extends needful assistance for working capital requirements to self-employed professionals. This is aimed to enhance professional strengths in terms of business purposes.

NRI

NRI Accounts

NRI Account
Non Resident Indians can open accounts under this scheme. The account should be opened by the Non-Resident account holder himself and not by the holder of power of attorneys in India.

Description
NRE accounts can be opened by remittances from abroad in any convertible currency or from transfer of funds from existing NRE/FCNR accounts held by any person with any Bank in
41

India. These accounts can be opened at all branches of Bank of India. Accounts can also be opened during temporary visits of NRIs to India against tender of foreign currency traveler cheques/ notes and coins. The remittances received in foreign currency for opening of NRE accounts will be converted into Indian rupees at the prevailing exchange rates. These accounts can be maintained under Savings/Current and Term depositing schemes.

FCNR Account
Non-Resident Indians can open accounts under this scheme. The account should be opened by the non-resident account holder and not by the holder of power of attorney in India. These deposits can be maintained in 5 designated currencies i.e. U.S. Dollar (USD), Pound Sterling (GBP) and Euro, Australian Dollar (AUD) & Canadian Dollar (CAD). These accounts can only be opened with funds remitted from abroad in convertible foreign currency through normal banking channels, which are of repatriable nature in terms of general or
42

special permission granted by Reserve Bank of India. These accounts can be maintained with our branches, which are authorized for handling foreign exchange business. (List of branches authorized for handling foreign exchange business). Funds for opening accounts under the BOI Global Foreign Currency Deposit Scheme or for credit to such accounts should be received from Remittance from outside India or Traveler cheques/currency Notes tendered on visits to India. International Postal Orders cannot be accepted for opening or credit to FCNR accounts. Transfer of funds from existing NRE/FCNR accounts. If remittance is received in any currency other than USD, GBP, EURO, AUD & CAD, it will be converted into one of the designated currencies of remitters choice at the risk & cost of the depositor.

Special FD Scheme
Regular Interest every month or quarter

43

Features:
Depending upon your choice, the scheme offers regular income to you by the way of payments of interest on monthly or quarterly basis. Interest is credited regularly. However, the original amount of fixed deposit remains intact and paid at the time of maturity.

Minimum deposit of Rs 10000/- or any higher amount is accepted under the scheme for any period from 12 months to 120 months.

Facility of automatic renewal of deposit on maturity is available.

44

CHAPTER - 3
RESEARCH STUDY OF MAIN TOPIC

CAR LOAN SCHEME


45

A person wants certain luxuries for enjoying his life and a car is one of them, a car gives him convenience to travel one place to another. Now a days it become a status symbol in society. So it becomes a need of every human being but some people does not have the capacity to pay a huge amount at a time but they can pay the price in installment so for these people many banks offer car loans schemes. In which they can buy car and pay its price in installment. Almost everyone make easier to purchase a car. Now days car is become one of the basic need of man but buying a own car become a dream for man because of its prices.

So in fulfillment of this dream man, needs help. In this condition Bank of India take a Initiative to provide easy car loan to those people who are willing to buy a own car.

People are appreciating car loan scheme of Bank of India and this can be proof by figures which show that the total amount of car loan scheme is increase in 2007-2010 amazingly.

Star Auto Fin Loan


2007 AMOUNT GROWTH 425 20% 2008 586 37.88% 2009 877 22.6% 2010 1218 38.88%

The car loan amount increases from 877cr. in 2009 to 1218 cr. in 2010 which accounts a growth of 38.88%. So Bank of India helps people to get car & increase in social status.
46

It Provide loan for all types of Cars i.e. A, B, C segment.

TYPE OF CAR FINANCED

Bank of India provide all type of car loans which comes under the purview of Bank guidelines, term & conditions and the credit limit which is 24 times of the monthly net salary or Rs 25lakh, whichever is lower, in case of individuals.

For corporate Rs 100lakh after presenting required documents. Corporate include self employed, Partnership firm, Private Ltd, Public Ltd etc.

For Non-Resident-Indian Rs 25lakh.

For Imported Vehicle Rs75lakh.

Some Car Companies

47

Maruti Suzuki- Alto, Wagon-R, Swift, Zen, Van, Gypsy,Sx4, Eco

Hyundai- Accent, I-20, I-10

Honda- Civic, Honda City


Mahindra- Logan, Scorpio Tata- Safari, Indigo, Sumo GM Spark, Cruise, Beat, Magnum

THE TOTAL GROWTH IN AUTO LOAN SEGMENT FOR LAST THREE YEARS:-

YEAR

2008

2009 22.6%

2010 38.8%

Car Loan 37.88% Growth %

48

COMPARITIVE ANALYSIS AMONG DIFFERENT BANKS FOR CAR LOANS


Private banks Rate of Interest Max Loan Amount Loan Tenure Processing Fees Prepayment CHARGES

ICICI Bank HDFC Bank ABN AMRO Bank PSBs SBI

13%

90%

1-5yrs Rs25005000 1-7yrs Rs2150Rs3650 N.A Rs1000

1.5% N.A 5%

11.30% 90% 15% Rs20lakh

8%-

Rs15lakh

1-7yrs 0.50%

2%
49

11.25% Bank of India DENA Bank UCO Bank Indian Bank O.B.C 8.75%- Rs25lakh 10.00% 10.75% Rs 8lakh 11.00% 11.50% 85% Or Rs7.50La kh 11.00% Rs 15Lakh 11.25% 1-6yrs 1.10% or Rs1000 1-5yrs Rs1000 NIL

NIL

1-5yrs 1%or Rs1000 1-5yrs 0.30%

0.5%

NIL

10.25- Rs10Lakh 1-7yrs 0.50 10.75%

NIL

Car Finance EMI Calculator


Own a vehicle with the friendliest and most convenient car loan. Either you can purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles that are not older than 3 years. Finance will also be provided for purchase of vehicle of indigenous/ foreign makes. Eligibility Individual as well as Business Concerns (Corporate or noncorporate)

Amount of Loan
50

For Individual: 24 times of the monthly net salary or Rs25lakh, whichever is lower income of spouse can be taken into account for determining loan amount. In such cases, the spouse shall stand as a guarantor.

For Business Concerns: Loan amount to Rs100Lakh.


Processing is nominal.

For N.R.I: Loan amount to Rs25lakh. For Imported Vehicles: Loan amount to Rs75lakh. Margin
Up to Rs 2.00lakh 5% Rs2lakh to Rs10lakh 10% Above Rs10lakh to Rs25lakh 15% Above Rs25lakh 25%

Security
The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It will be registered in the name of the borrower jointly with the Bank. Guarantee of spouse, if employed or third party guarantee is acceptable to the bank.

Rate of Interest Rate of Interest (For loans granted on & after 1.04.2009) BPLR at 12.00% TENURE For Loans Repayable in/upto Less than 3years Rate of Interest @ percent p.a.

BPLR minus 1.00% i.e.11.00%


51

Above 3 years

BPLR minus 1.50% i.e.11.50%

Repayment For new Car/Van/Jeep: The loan amount together with


interest is to be repaid in 72 Equated Monthly Installments (EMIs)

For old Car/Van/Jeep: The loan amount together with interest is to be repaid maximum in 36 Equated Monthly Installments (EMIs) For Imported Vehicles: The loan amount together with
interest is to be repaid maximum in 84 Equated Monthly Installments (EMIs)

Disbursement
The intending borrower will be required to settle the transaction for purchase of vehicle needed by him/her with the seller and will be required to deposit the difference of the cost of the vehicle to amount of loan will be required to deposit the difference of the cost of the vehicle to amount of loan, and thereafter, the advance will be allowed to him/her from the bank by paying the entire price of the vehicle to the seller directly on behalf of the borrower. Profit Interest earned on the loan is its profit. Auto Loans The bank offers auto loans at fixed interest rate as well as floating rates also for financing automobile and used car purchases.
52

Commercial Vehicles and Construction Equipment Finance


The Banks provides secured financing for commercial vehicles and providing working capital, bank guarantees and trade advances to customers who are transportation operators. In addition to the funding of domestic assets, it also finances imported assets for which the bank opens foreign letters of credit and offers treasury services.

Personal Loans
Unsecured personal loans are offered at fixed rates to specific customer, including salaried individuals and self-employed professionals.

Loans against Securities


Loans are offered against equity securities, mutual fund units and against bonds issued by the RBI.

AUTO LOANS: PRODUCT OVERVIEW


Auto loans are the installments loan for the purchase of new and used vehicle to be used for personal business or commercial purpose. The auto loan programmer is a retail asset product and can be availed by the individuals, sole proprietors, partnership firms, NRI, private and public limited companies, who satisfies the credit worthiness of the applicant, approve and disburse the loan and also mark a lien on the vehicle as a security The lien on the vehicle has to be a first lien. Listed below are some of the key product features:
53

Product------------- New and Used Car Standard product ------------------ EMI in advance, EMI in
arrears

Minimum loan -------------------- Rs10000 Tenure ----------------------------- 12-72 months Eligible borrower --------------------- Salaried individuals, Self
employed, Sole Proprietorship, Partnership firms, NRI, Private and Public Companies.

Equated monthly installment (EMI) ------------- The amount


paid by the customers each month towards repayment of loan extended to him. EMI comprises of both principal and interest components.

Loan to value LTV/ Extent of funding------------ The ratio of


the maximum amount of loan to the value / cost of the car varies with the vehicle make, model and tenure.

Loan type ------------------------- Term loan with hypothecation


marked in favor of BOI bank.

Security / Collateral ----------------- Asset financed will be


hypothecated / lien marked in favors of BOI bank.

System and Process ------------- Decentralize approval and


disbursal with all loan being booked fineness/ as per process set out time to time. Banking ------------------ PDCs stored and banked centrally, SI /ECS will also happen centrally.

Credit approval process ------------------- Credit policy will lay


down the borrower eligibility criteria/approval process / deviation policy as approved by the central risk unit. Approval authorities may be delegated to bank employees/ bank associates including outsourcing agencies. Operations and collection policy will be circulated separately.
54

Collection ------------------- In-house and agency based


collection through Tele calling and field collection for soft buckets. Appointment of external agency for chronic and serious defaulters and repossessions

Interest rates ----------------- As per approved rates from time


to time

Type of car ----------------------------- As per list of cars approved


by the bank, please refer to various product and LTV matrix/ chart.

Use of vehicle --------------------------- Vehicle firmament


should be personal, official, commercial use.

Approved location -------------------------- Generally Bank of


India prefers to give loan to those customers who are residing near to the bank. As it feel easy to contact the customers and for communication also. However in some exceptional cases the bank can loans to those customers who are not residing near bank.

CAR LOANS
FEATURES

Finance all passenger cars & most of the multi utility cars. The tenure range is 12 72 months. Competitive rates.
55

24 48 hours to process the loan after we receive complete set documents. Loan up to 90% of the invoice value. Prepay the loan anytime without any prepayment charge. Easy documentation. Processing charges waived for senior citizens, staff members & retired employees of the bank & pensioner drawing pension from the bank.

DOCUMENTS REQUIRED:-

Documentation Requirements Application Form Income Documents (last 3 years)

Salaried Individual

Self employed Individual

Partnerships Firms

Private Ltd Company

Public Ltd Company

Yes Last 3 Years ITR or Form no.16

Yes

Yes

Yes Last 3 Years Audited B/S & P&L

Yes

Last 3 Last 3 Years Years ITR & ITR & Audited Audited Accounts accounts

Last 3 Years Audi B/S & P&L A/C

56

A/C
Bank Statement (Last 12 months) Proof of Identity Proof of Residence Proof of Office Address Legal Documents

Yes

Yes

Yes

Yes

Yes

Yes Yes Yes

Yes Yes Yes

Yes Yes Yes A Letter Signed by all the Partners accepting the Loan

Yes Yes Yes MOA or AOA

Yes Yes Yes MOA & AOA

OTHERS DOCUMENTS:-

1. CHA -2. 2. OD -194 (Guarantee Deed) 3. L-515 as per Br. Cir. No. 94/186. 4. L-515 as per Br. Cir. No. 97/114 (Where CBD -13 obtained) 5. Comprehensive Insurance Policy. 6. Letter addressed to Insurance Company.
57

7. Transfer form in blank in duplicate. 8. Registration of bank charge on the vehicle with regional transport authority. 9. Valuation certificate for Second hand vehicle from approved valuer. 10. Undertaking to inform change in constitution/address etc. 11. A letter of authority by the borrower to debit the loan/SB A/C with Intt./ Service charges/Insurance Premium. 12. Where guarantors vehicle is taken as collateral security, obtain another CHA 2 with modification.

ELIGIBILITY CRITERIA:58

For Salaried Individual, Self-employed Individuals, Partnership Firms, Public and Private Limited Companies

Borrower Type Salaried Individual

Age 21 at beginni ng To 60 at the end of the tenure.

Residence/Office Residence should be owned by the applicant or rented for >1 years.

Income

Telephone

CPV Requirement CPV should

Minimum Applicant should own Income Landline of Phone at Rs1.5lak residence and at office. h.

Be done at Residence and office of applicant and co-applicant.

Self Employed Proprietorship

21 at beginni ng to 65 at the end of the tenure NA

Residence/office/Fact Minimum Applicant ory should own Income Landline / workshop should be of Phone at owned by the Rs0.60la residence applicant or rented and at office. c. for at least 2years Office/Factory/Works hop Should be owned by the firm or main partner or rented for at least 2years Minimum Landline phone at Income office. of Rs0.60la kh. Minimum Landline Income phone at of office. Rs0.60la c.

CPV should be done at residence and office of applicant and co- applicant.

Partner-ship

CPV should be done at office and main partners residence.

Pvt. Ltd Co./ Public Ltd Co.

NA

Office/Factory/Works hop Should be owned by the Co. or director or rented For at least 2 years

CPV should be done at office and main directors residence.

59

FEES and CHARGES:-

Description of Charges Cheque bouncing charges Stamp Duty Late Payment Penalty Processing Fees Other Charges

New Car Loans Rs 100 At actual More than 2% per month 1.10% or Rs1000 -

60

USED CAR LOANS


Used car loans are installment loans for the purchase of used vehicle to be used for personal, business or commercial purposes. The used car loan Programmes is a retail asset product & can be availed by the Individuals, Sole Proprietor, Partnership Firms, Pensioner, Farmers, Public & Private companies who satisfy the credit parameters set out in this manual. The bank would assess the credit worthiness of the applicant, approve and disburse the loan and also mark a lien on the vehicle as a security. The lien on the vehicle has to be a first lien. Listed below are some the key product features:

Features: Choose any car manufactured in India within a certain range. Borrow up to 70% of the value of the car.

Flexible repayment options, ranging from 12 to 36 months.

Borrow up to 2times your annual salary(for salaried professionals) And 2times your annual income (for self employed professionals) Available for almost all car models at attractive interest rates. Repay with easy EMIs.

61

If you have had a Preferred Account or a Corporate Salary Account With Bank of India for than six months, you can get fast approvals on your loans with minimal documentation.

DOCUMENTS REQUIRED:-

Documentation Requirements Application Form Income Documents (last 3 years)

Salaried Individual

Self employed Individual

Partnerships Firms

Private Ltd Company

Public Ltd Comp

Yes Last 3 Years ITR or Form no.16 Yes Yes

Yes Last 3 Years ITR & Audited accounts Yes Yes

Yes Last 3 Years ITR & Audited Accounts

Yes Last 3 Years Audited B/S & P&L A/C Yes Yes

Yes Last 3 Years Audited

B/S & P&L A/C Yes Yes


62

Bank Statement (Last 12 months) Proof of Identity

Yes Yes

Proof of Residence Proof of Office Address Legal Documents

Yes Yes

Yes Yes

Yes Yes A Letter Signed by all the Partners accepting the Loan

Yes Yes MOA & AOA

Yes Yes MOA & AOA

ELIGIBILITY CRITERIA:For Salaried Individuals, Self-employed Individuals, Partnership Firms, Public and Private Limited companies. Criteria Salaried Self employed Age Partnership Company firm NA

21-60 21-65 at NA years at the end of the end of the tenure the tenure Minimum 1 year. Minimum 1 year. NA

No. of years in current residence

NA

63

Min. of years At least 3years of in/ total Employment/ employm ent Business Min. income for cars

At least 3years in Business.

At least 3years in Existence.

At least 3 years in Existence.

Gross Last year income of & latest Rs1.5lakh. year must be profitable. Must be at residence & at office. Must be at residence & at office.

Last year & latest year must be profitable. One phone at least in Business & one at residence of loan Executing partner.

Last year & latest year must be profitable. At least 1 phone must be at business.

Telephone

PRICING: Highly competitive. 1.10% processing fee payable up front (Pl contact local sales manager for revised applicable rates). Customers can pre-pay the entire loan amount before the agreed tenure.

64

Fees and Charges:-

Description of Charges Cheque bouncing charges Stamp Duty Late Payment Penalty Processing Fees Other Charges Valuation charges

New Car Loans Rs 100 At actual More than 2% per month 1.10% Used Cars Rs2000 per case

Staff Vehicle Loan


Bank of India also provide car loan to their employees this loan is only meant for the staff members of bank at attractive rate of interest with longer repayment payment period. This loan is different from star auto fin loan.

65

Details of Staff Vehicle Loan: Maximum amount = Rs360000 Minimum Amount = Rs80000 Margin = 10% Maximum repayment period = 15years Rate of Interest: Up to Rs80000 at 8%pa. Above Rs80000 to Rs360000 at 12%pa.

66

CAR LOANS-THE PROCESS


The process can be broadly shown as follows-

Customer

DSA/DEALER/O THER CHANNEL

Sell Scheme, with applicable LTV for relevant model Check Eligibilit y NO STOP

Check Authori ty

Cluster Head

Yes Within Approval

Deviatio n Authority Approval

Case to be entered in LTS (Loan Tracking System) Product Four Wheeler

67

Asset Staff to follow up for

Update LTS

Conduct Telephonic Verification Collect Preapproval documents Fill out Approval Card Soft Approval by BM/Cluster Head

Customer to submit agreement & S.I letter

Fax Application Form to CPA for Dedupe check

Shoot CPV at CPV Agency

CPA/Credit staff to Conduct Dedupe + Co-ordinate for CPV Report

Communicate REJECT to Branch

2
68

CPA/Credit Staff to communicate status to Branch. BM to sign Approval Card & send complete file to Assets office. CAR Sales Staff to arrange delivery/ disbursement & inform branch when distributed.

Branch to enter in LTS under new Product CAR Direct Approvals

END

69

CALCULATION OF EMI Case1 Normal case (when there is no advance EMI) Loan amount 200000 Tenure (months) 24 Interest rate 10% (Account IRR) EMI 9,229 Advance EMI Month EMI Principal Interest Outstanding Cash flow 0000 -200000 1 9,229 7,562.33 192,437.66 9229 2 9,229 7,625.35 184,812.31 9229 3 9,229 7,688.89 177,123.41 9229 4 9,229 7,752.97 169,370.44 9229 5 9,229 7,817.58 161,552.86 9229 6 9,229 7,882.72 153,670.13 9229 7 9,229 7,948.41 145,721.72 9229 8 9,229 8,014.65 137,707.07 9229 9 9,229 8,081.44 129,625.63 9229 10 9,229 8,148.78 121,476.84 9229 11 9,229 8,216.69 113,260.15 9229 1,666.66 1,603.64 1,540.10 1,476.02 1,411.42 1,346.27 1,280.58 1,214.34 1,147.55 1,080.21 1,012.30

20

70

12 9,229 8,285.16 943.83 104,974.98 9229 13 9,229 8,354.20 874.79 96620.77 9229 14 9,229 8,423.82 805.17 88196.95 9229 15 9,229 8,494.02 734.97 79702.92 9229 16 9,229 8,564.80 664.19 71138.11 9229 17 9,229 8,636.18 592.81 62501.93 9229 18 9,229 8,708.15 520.84 53793.78 9229 19 9,229 8,780.71 448.28 45013.06 9229 20 9,229 8,853.89 375.10 36159.17 9229 21 9,229 8,927.67 301.32 27231.49 9229 22 9,229 9,002.07 226.92 18229.42 9229 23 9,229 9,077.08 151.91 9152.34 9229 24 9,229 9,152.73 76.26 -0.38 9229 Comparison of car loan scheme offered by other bank with Bank of India Almost every bank offers car loans. I had compared the entire car loan scheme offered by HDFC Bank, ABN AMRO Bank, State Bank of India, Oriental Bank of Commerce and Bank of India and the details of the findings are as follows.

HDFC Bank:
71

HDFC Bank offered car loan scheme with following features:-

HDFC Bank Provide car loan individuals as well as business concerns also. The rate of interest charged by HDFC Banks is as follows: In case New Car :- 11.30% HDFC Bank Provide finance up to 90% of the total loan amount. HDFC Bank Provide facility to repay the loan amount maximum in 7years. HDFC charge processing fees of Rs2150 Rs3650.

ABN AMRO Bank:


ABN AMRO Bank provide car loan to individual as well as Business concern also. The rate of interest charged by ABN AMRO Bank is as follows: In Case of New Car-15%. ABN AMRO Bank Provide finance up to Rs20Lakh. ABN AMRO Bank charge 5% prepayment charge if the loan is paid before the tenure of the loan.

STATE BANK OF INDIA:


72

State Bank of India offers car loan scheme with following features. State Bank of India provide loan to individual as well as Business concern also. State bank of India provide loan which is repayable maximum up to 7years for new car & In case of old car it is 3years.

State Bank of India charge a prepayment charge of 2% in case loan is paid before the tenure of the loan.

State Bank of India Provide a loan amount of Rs15lakh. The rate of interest charged by State Bank of India is as follows: In case of new car 1st year - 8% For 2nd & 3rd year 10% For 4th & 5th year - 11.25% For 6th & 7th year 11.50% In case of old car Up to 3years 14.25% Above 3 years 15.00%

73

ORIENTAL BANK OF COMMERCE

Oriental Bank of commerce Provide car loan to individuals as well as business concerns also.

Oriental Bank of commerce provide loan up to 84months. Oriental Bank of commerce charge interest rate as follows:In case of new car Up to 3years => 10.25%pa Above 3years => 10.75%pa In case of old car Up to 3years => 13.25% Above 3years => 13.75% Oriental Bank of Commerce finances up to Rs10lakh. Comparison of different banks car loan schemes it gives result that Bank of India provides best car loan scheme because it provide loan up to Rs25lakhs for individual & for corporate it can finance up to Rs100lakh at very low interest rate. Like up to 3years it charge only 8.75% & beyond 3years it charge interest of 9.25% per annum. Like when a people wants to financed his car worth Rs7Lakh & want to repay this amount in 3years then SBI (8%) & BOI (8.75%) charge lowest interest rates. But when a person wants to repay his loan in more than 3years then Bank of India is best because it charge only 9.25% interest rate on the other hand if a person
74

wants to finance a car worth of more than Rs7lakhs then again only Bank of India offers him lowest rate of interest which is 9.50% pa Up to 3years & after 3years it charge only 10.00% interest rate per annum. Moreover it provide maximum amount of loan 25lakhs among all public sector banks. So only Bank of India offers the best car loan scheme which suits almost every one & make easier to purchase a car.

CHAPTER 4
75

ANALYSIS AND FINDINGS

ANALYSIS
OPPORTUNITIES
As car loan is a profitable lending option due to continued good performance of the services sector, the bank will continue to focus on this segment. The bank will continue to study the market requirements, evolve innovative and diversified products to reach the customers in every nook and corner of the country. For better decision support system,business intelligence, management information system and decision making. The bank is in final stage of rolling out data warehouse.

RISK AND CONCERNS


76

Libralisation opens up various opportunities and at the same time it also increase exposure to risks. Risk management, therefore, is paramount. Since risks have a direct and proportional relation with returns, the bank has to clearly envisage its risks which can be managed effectively. Further risks management system need to be brought to such a level of sophistication that the systems on their own generate adequate capital and liquidity cushions against economic and market distruptions.

GRAPHICAL REPRESENTATION OF DATA


Q1. On which bank you depend for your regular transaction. () No of People Bank of India SBI ICICI Bank HDFC Bank Other Banks TOTAL No. OF PEOPLE 30% 45% 8% 6% 11% 100

77

It has been observed that approximately 30% correspondents are using the services of Bank of India for their daily transaction. Around 45% of People are using SBI for their daily transaction. Around 8% of people are using ICICI Bank for their transaction and only 6% & 11% of people are using HDFC & other Bank service respectively in Mayur Vihar Phase-1. Q2. Are you aware of Products & services provided by BOI. a) Yes 70% b) NO 30%

78

From the above data it is clear that most of the customers (Around 70%) of Mayur Vihar have the idea about the product & services of Bank of India.

79

Q3. If yes are you aware of the advance products (Loan segments) of BOI. a) YES 68% b) NO 32%

It is clear that most of the people have the idea about the advance product of Bank of India. Almost all the 68% people who have the idea about the advance products are the user of Bank of India products & services.

80

Q4. Which bank you prefer for taking loans


a) b) c) d) e) BOI 51% SBI 35% ICICI Bank 3% HDFC Bank 2% Other Banks 9%

According to my sample size 51% of people prefer Bank of India for loan product, but some people prefer SBI, ICICI, HDFC & Other banks for loan because they are working with the bank & it is easier for them to pay the interest because it is less as compared to other bank because they are the employees of that bank.
81

Q5. If you prefer Bank of India for taking loan than what influence you to take loan from Bank of India

Most of the people said that they prefer Bank of India for taking loan because of the transparency & the lowest interest rate for any kind of loan product and it is easy to get loan from Bank of India as compared to other banks because less paper work is required & simple & fast processing is required.

82

Q6. Which loan product of BOI you have used. a) Home Loan 43% (32) b) Education Loan 19% (14) c) Car Loan 21% (16) d) Personal Loan 9% (7) e) Other Loans 8% (6)
TOTAL NO. OF PEOPLE 75

From the sample size 75% of people are using the BOI loan product. From the 75 people 43% of people took home loan from BOI. 19% of people took education loan for their children, 21% of people took car loan from BOI. 9% of people took personal loan.

83

Q7. What do you feel about the services providing by Bank of India in advance product. a) Bad 0% b) Satisfactory 25% c) Good 55% d) Excellent 20% TOTAL NO. OF PEOPLE 100

From this it is clear that the service provide by BOI in its advance product is good in between the customer. All of them satisfy with the product provide by Bank of India. 55% of people said that the service provide by BOI is good & 20% said it is excellent & 25% of people said that it is satisfactory.

84

Q8.Which features you like most in loan segment of BOI.


a) b) c) d) e) Less paper work Attractive interest rate Transparency Simple & fast processing Longer repayment period

Most of the people like the attractive interest rate & transparency. Its easier of people to repay the whole loan amount with low interest rates & longer repayment period.

85

FINDINGS
Bank of India is applying aggressive marketing strategy for car loan. SBI is a major competitor of Bank of India. Bank of India is having Tie up with various Automobile companies eg. (Tata Motors, Maruti, Hyundai Motors) Bank of India is trying to Tie-up with some other Automobile Companies. Bank of India is offering various facilities to customers for taking loan. Bank of India is trying to find better relationship with local dealers to increase to the customer database. Bank of India is using proper market channel to aware customer about car loan. Bank of India is advertising their car loan by using print media also. Bank of India also tries to make new Tie- ups with other Automobile Companies (These Tie- ups arrangement changes from time to time).

86

CHAPTER -5 CONCLUSION AND SUGGESTIONS

87

CONCLUSION
There are various type of car loans are being provided by Bank of India ranging from short term to longterm to packing and like. But as studies throughout the project, lending process is not so simple. It involve a long series of steps and planning as suited to and decided by the bank itself, of course, abiding by the rules and regulations of Bank of India and RBI. It Provide easy car loan access if all required documents are prepared.

It charge minimum processing fees moreover processing charges are waived for senior citizens, staff members & retired employees of the bank & pensioners drawing pension from the bank.

It fulfills the dreams of the people having a car. Somewhere it Contribute in Indian economy by releasing the liquidity in terms of loans. Better and timely quality of services and product diversification.

Highest loan amount in comparison of other banks.

It provide car loan at lowest rate of interest in comparison to other banks.


88

Negative Points

The bank take long processing time, during the time customer may dilute his plan of taking loan.

Communication gap to approach right kind of people No long term customer relationship. List of defaulters Bank of India is not providing services like refinance &overdraft

RECOMMENDATIONS
Bank of India should go for advertise car loan availability. Try to maintain very good relationship with car dealers. Bank of India is having a large number of existing customers so they should convert their strength in opportunity. Try to aware customer about car loan availability & procedure that how to apply for loan.

More promotional schemes should be followed, for example if a customer is paying his EMI regularly, he can be given some gift or some concession in interest rate that would be an incentive for others also to pay regularly.

89

By making randomly surveys it should identify prospective buyers.

By declaring special loan scheme on festive seasons i.e. loan mela.

Facility to access loan from anywhere i.e. nearest to your resident, office, working place. Properly and timely solution of customer complaints. Bank of India should also provide extra facilities like Refinance & Overdraft facilities which help in making new & retain existing customers & win the trust of the people. Bank of India should go for advertise car loan availability by using different media like T.V, Newspaper, Radio, Print media etc. in order to make more people aware of the car loan scheme.

APPENDICSES:Q. Who can avail car loan? A. Individuals and Business Concerns. Q. Whether finance is also available for used cars? A. Finance is also available for purchase of Used Cars not older than 3 years. Q. How much loan can be availed under the scheme?

90

A. For individuals, loan amount shall be 24 times the net monthly Salary/Income, subject to maximum of 70% of the cost of the vehicle whichever is less. In case of business concerns, loan amount can be up to Rs100lakh or Rs1crore. Q. Whether the income of the spouse is also taken into account for determining the amount of loan? A. Yes, income of the spouse can also be taken into account for determining the amount of loan. In such cases, the spouse shall stand as a guarantor. Q. What will be the repayment period? A. Amount of loan together with interest shall be repayable in 72 equal monthly installments. However, for old car, loan together with interest is to Repaid maximum in 36 equal monthly Installment. Q. How much loan can be availed for Indian Make & Foreign Make Vehicle? A. Bank of India Provide car loan for Indian Vehicle as well as for Foreign Make Vehicle. Bank Provide maximum amount of Rs25lakh for Indian make vehicle & Rs75lakh for Foreign Make Vehicle. Q. Whether interest applicable is flat rate or at reducing balance? A. Interest is charged on reducing balance. Q. What formalities are to be completed for availing the facility? A. The following documents are required to be submitted:
91

1.

Performa Invoice of Car to be purchased

2. Proof of residence 3. Proof of Income 4. Detail of Guarantor

LIMITATIONS
Due to Shortage of Bank Staff it is difficult to collect data from Bank employees. As they have lot of workload due to which Bank employees does not want to give information as they feel it is wastage of time.

92

CHAPTER 6 BIBLOGRAPHY

93

BIBLIOGRAPHY

E-CIRCULER OF BANK OF INDIA.


WWW.BANK OF INDIA.COM. WWW.GOOGLE.COM. WWW.MONEYMARKET.COM NEWSPAPERS & MAGZINES.

BOI ANNUAL REPORT.

94

CHAPTER 7 ANNEXTURE

95

Questionnaire
Name- ____________________________________ Occupation- ______________________________ Contact Detail- ___________________________ Q1. On which bank you depend for your regular transaction. a) BOI b) SBI c) HDFC d) ICICI e) Other Bank, Specify (_____________)

Q2. Are you aware of products & services provided by BOI. a) YES

96

b) NO Q3. If yes are you aware of the advance products (Loan segments) of BOI. a) YES b) NO Q4. Which bank you prefer for taking loans a) BOI b) SBI c) HDFC d) ICICI bank e) Other Bank, Specify (___________)

Q5. If you prefer BOI for taking loan than what influence you to take loan from SBI ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ _______________________________________________________________.

Q6. Which loan product of BOI you have used. a) Home Loan b) Education Loan c) Car Loan
97

d) Personal Loan e) Other Loans, Specify (____________)

Q7. What do you feel about the services providing by BOI in advance product. a) Bad b) Satisfactory c) Good d) Excellent Q8. Which feature you like most in loan segments of BOI. a) Less paper work b) Attractive interest rate c) Transparency d) Simple & fast processing Q9. Any suggestion you want to give for the betterment of BOI advance product. ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ _________.
98

99