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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON

CHAPTAR NO: 1 INTRDUCTION 1.1 Introduction of Loan:Loan is an amount of money advanced to a borrower, to be repaid at a later date, usually with interest. Legally, a loan is a contract between a buyer (the borrower) and a seller (the lender), enforceable under the Uniform Commercial Code in most states. The terms and conditions for repayment of a loan, including the finance charge or interest rate, are specified in a loan agreement. a loan may be payable on demand (a Demand Loan), in equal monthly installments (an installments loan) It is also define as when a lender gives money or property to a borrower and the borrower agrees to return the property or repay the borrowed money, along with interest, at a predetermined date in the future.

Definition An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though

loan modern capital markets have developed many ways of managing this risk). Loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent 1.2 Secured Loan:A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral. A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. In some instances, a loan taken out to purchase a new or used car may be secured by the car; in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer. 1.3 Unsecured Loan:Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages: credit card debt personal loans
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


bank overdrafts credit facilities or lines of credit corporate bonds (may be secured or unsecured)

The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974. Interest rates on unsecured loans are nearly always higher than for secured loans, because an unsecured lender's options for recourse against the borrower in the event of default are severely limited. An unsecured lender must sue the borrower, obtain a money judgment for breach of contract, and then pursue execution of the judgment against the borrower's unencumbered assets (that is, the ones not already pledged to secured lenders). In insolvency proceedings, secured lenders traditionally have priority over unsecured lenders when a court divides up the borrower's assets. Thus, a higher interest rate reflects the additional risk that in the event of insolvency, the debt may be uncollectible. Rules:1. A loan is not gross income to the borrower. Since the borrower has the obligation to repay the loan, the borrower has no accession to wealth. 2. The lender may not deduct (from own gross income) the amount of the loan. The rationale here is that one asset (the cash) has been converted into a different asset (a promise of repayment) Deductions are not typically available when an outlay serves to create a new or different asset. 3. The amount paid to satisfy the loan obligation is not deductible (from own gross income) by the borrower.

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON

4. Repayment of the loan is not gross income to the lender. In effect, the promise of repayment is converted back to cash, with no accession to wealth by the lender. 5. Interest paid to the lender is included in the lenders gross income. Interest paid represents compensation for the use of the lenders money or property and thus represents profit or an accession to wealth to the lender. Interest income can be attributed to lenders even if the lender doesnt charge a minimum amount of interest. 6. Interest paid to the lender may be deductible by the borrower. In general, interest paid in connection with the borrowers business activity is deductible, while interest paid on personal loans are not deductible. The major exception here is interest paid on a home mortgage

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


CHAPTER NO 2

BANK PROFILE
2.1 History:
Established in 1911, Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. The establishment of the Bank was the ultimate realisation of the dream of Sir SorabjiPochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride felt by Sir SorabjiPochkhanawala that he proclaimed Central Bank of Indias the 'property of the nation and the country's asset'. He also added that 'Central Bank Of India lives on people's faith and regards itself as the people's own bank'. During the past 99 years of history the Bank has weathered many storms and faced many challenges. The Bank could successfully transform every threat into business opportunity and excelled over its peers in the Banking industry. A number of innovative and unique banking activities have been launched by Central Bank of India and a brief mention of some of its pioneering services are as under: 1921 Introduction to the Home Savings Safe Deposit Schemeto build saving/thrift habits in all sections of the society. 1924 An Exclusive Ladies Department to cater to the Bank's women clientele. 1926 Safe Deposit Locker facility and Rupee Travellers' Cheques. 1929 Setting up of the Executor and Trustee Department. 1932 Deposit Insurance Benefit Scheme. 1962 Recurring Deposit Scheme.

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON

Subsequently, even after the nationalization of the Bank in the year 1969, Central Bank continued to introduce a number of innovative banking services as under: 1976 The Merchant Banking Cell was established. 1980 Central card, the credit card of the Bank was introduced. 1986 'Platinum Jubilee Money Back Deposit Scheme' was launched. 1989 The housing subsidiary Cent Bank Home Finance Ltd. was started with its headquarters at Bhopal in Madhya Pradesh. 1994 Quick Cheque Collection Service (QCC) & Express Service was set up to enable speedy collection of outstation cheques.

Further in line with the guidelines from Reserve Bank of India as also the Government Of India, Central Bank has been playing an increasingly active role in promoting the key thrust areas of agriculture, small scale industries as also medium and large industries. The Bank also introduced a number of Self Employment Schemes to promote employment among the educated youth. Among the Public Sector Banks, Central Bank of India can be truly described as an All India Bank, due to distribution of its large network in 27 out of 29 States as also in 3 out of 7 Union Territories in India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3967 branches and 27 extension counters at various centers throughout the length and breadth of the country. Customers' confidence in Central Bank of India's wide ranging services can very well be judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also almost all major corporate houses in the country.

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


DIRECTORS:1) Shri. M.V.Tanksale Chairman & Managing Director 2) SmtVijayalakshmi R. Iyer Executive Director 3) Shri Rajiv Kishore Dubey Executive Director 4) ShriAlokTandon Director Ministry of Finance Dept of Disinvestment New Delhi-110001 5) Shri Salim Gangadharan Regional Director 6) Shri Brijlal Kshatriya Director

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


2.2 Types of Loan:Following are the different types of loans provided by the bank.

a) Home Loan:o Eligibility


Existing Borrowers under Direct Housing Finance Scheme having completed minimum 3 (three) years of repayment schedule without any default. In case Housing loan is in Joint Name, Both the Joint borrowers should join as borrower for the loan or consent / no objection for extending charge of house property created out of Housing loan should be obtained.

o Quantum of loan Maximum of Rs.10.00 lakhs. o Margin


25% on the Present Market value of the property for aggregate loan up to Rs.30 lakhs including the proposed limit under this scheme.35% on the Present Market value of the property for aggregate loan above Rs.30 lakhs including the proposed limit under this scheme.

o Security
Extension of mortgage on the House property for which Housing Loan was sanctioned.

o Repayment
The loan has to be repaid in 120 equal monthly installments.

o Rate of Interest & Processing Charges


Rate of Interest as applicable to Bank's Existing Housing Loan Scheme in case of renovation.The rate of interest will be 1% more than the rate of existing housing loan in case of refurbishment, buying of furniture, television, home theater etc.

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


b) Education Loan:The Government of India, Ministry of Human Resource Development, Department of Higher Education has formulated an Interest Subsidy scheme on Educational Loans for the students of economically weaker sections (EWS) for pursuing technical/professional courses in India. Salient features of scheme are as under: Scheme is applicable for the loan amount availed from April 01, 2009 to March31, 2010(Academic Year 2009-10). For Loans sanctioned earlier to 1.04.2009, only amounts disbursed during the above period are also eligible. Applicable to students from EWS with a annual parental/family income limit of Rs.4.50 lakhs or less and for studies in recognized technical and professional courses in India after Class XII from institutes recognized by UGC/AICTE. Interest subsidy shall be available to the eligible students only once, either for the first undergraduate degree course or the post graduate degrees/diplomas. Interest subsidy shall, however, be admissible for combined undergraduate and post graduate courses. Entire repayment holiday period interest to be provided as interest subsidy. In case of discontinuance of the course midstream, due to expulsion on disciplinary or academic ground, no interest subsidy to be paid. Moratorium period: Course duration plus one year or six months after loaners employment, whichever is earlier? After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student. Proof of income is required to be certified by Tehsildar or any other authorities to be designated by the concerned State Government. The eligible student has to execute an Agreement with the disbursing Branch for receiving Interest Subsidy.
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


c) Vehicle Loan:'VEHICLE' Scheme Sr. Parameter No 1 Purpose: To purchase two wheeler i.e. Scooters, Mopeds, Motor Bikes, electronic bikes (e-bikes) and four Wheeler i.e. Car, Jeep, Utility Vehicles, SUV, electric cars like Reva, battery operated vehicles etc. for personal use. (i.e. not for hiring/ferrying passengers) The finance can also be extended for purchase of old / second hand cars which should not be older than 3 years and have expected residual life of minimum 10 years 2 Eligibility: All individuals of age 18 years and above who are Companies /Societies/etc. Minimum Income Criteria (Gross Income) Salaried Persons: i. ii. For Four wheelers - Rs.15,000/- p.m. For Two wheelers - Rs.5,000/- p.m. / Proprietorships, Partnership Firm Details

Other than salaried person. i. ii. For Four wheelers - Rs.1,80,000/- p.a. For Two wheelers - Rs.60,000/- p.a.

Quantum of Finance:

The maximum loan amount should be as under Indian made vehicles Imported Vehicles Old Vehicle : : : Rs.20.00 lakh Rs.40.00 lakh Rs.10.00 lakh

Margin:

New Vehicles:Upto Rs.20 lakh: 15% More than Rs.20 lakh: 25%
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


Old Vehicles:40% irrespective of loan amount. 5 Security: Hypothecation of vehicle purchased. Our Hypothecation charge should be registered with Regional Transport Office Authorities. 6 Rate of Interest & Processing Charges Cent Vehicle a) New vehicles 10.75 repayable within 36 months b) New vehicles 10.75 repayable beyond months c) Second hand 10.75 vehicles Cent Vehicle+ 3.00 13.75 36 Complete waiver of Processing Charges + 1.50 12.25 + 0.75 11.50 Scheme Base Spread Effective Rate % (a+b)=(c) Processing Charges *

Rate % % (a) (b)

TATA Vehicle: Upto 36 months 10.75 > 36 months to 10.75 60 months > 60 months 7 Repayment: Loan is 10.75 in + 3.00 Equated 13.75 Monthly Installments + 1.00 10.75

+ 2.00 12.75

repayable

commencing from subsequent month of disbursement as below. i. In case of New Vehicle: For four wheelers = Maximum 84 months
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


For two wheelers = Maximum 48 months ii. In case of Old Vehicle: Up to 2 years old = Maximum 36 months More than two years old = Maximum 24 months 8 Guarantee: No Personal Guarantee to be obtained in case of loan up to Rs.5.00 lakh. 9 Net Take Home Pay Criteria: The sanctioning Authority should ensure that the applicant complies to Net Take Home Pay criteria of 40% i.e. Net Take Home Pay after accounting for all deductions including present loan EMI should be minimum 40% of gross monthly salary.

10 Prepayment Charges

No prepayment penalty is levied if the loan is adjusted by the borrower from his own sources. However, if loan is taken over by other Banks/Financial Institutes, Prepayment Penalty is charged @ 1.00 % on outstanding balance on the date of such take over.

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


d) Personal Loan:Personal Loan Scheme (Noncorporate) 1 Purpose 2 Eligibility Personal / Domestic Permanent Employees of Railways, Government institutions central and State Government, schools, Hospitals etc, having completed 5 years of service and drawing salary through our branches. 3 Facility 4 Loan Amount Demand Loan Twenty times of gross salary subject to maximum

of Rs.500,000/- and minimum net home pay of 40% of gross salary after taking into consideration payment of statutory dues, repayment of various loans including the instalment of proposed loan.

5 Security

a) Salary to be routed through account maintained with our branch. b) The borrower should give an irrevocable undertaking for not transferring salary account to any other Bank during currency of loan. Such undertaking should be got registered with/acknowledged by the employer. c) Authority to be obtained from the borrower to debit the salary account for monthly instalments. d) In case the salary is not routed through our Branch, the following undertaking to be obtained for sanction of loan: Irrevocable undertaking from the employer to deduct EMIs from the salary of the borrower employee and pay the same directly to the Bank, till full adjustment of loan amount. Undertaking should cover deductions not only

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


from salary but also from bonus / exgratia payment / terminal dues in case of retirement, death, cessation of service for any other reason and any other dues from the employer. 6 Guarantee Third party guarantee by a person having worth at least equal to loan amount and acceptable to Bank. 7 Interest Rate & Processing Fee Personal Loan to other than Corp. Employees 8 Repayment 48 Months -EMI or within the left over service whichever is less. Installments to commence one month after disbursement. (a) 10.75 Scheme Base Rate Spread % % (b) 4.50 Effective Rate Processing % (a+b)=(c) 15.25 Complete waiver of Processing Charges Charges *

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


e) Personal Gold Loan: Nature of Facility
Demand Loan or overdraft against pledge of gold and gold ornaments of 22 Carat purity.

Purpose
To meet urgent personal expenses like marriage / medical / educational needs etc.

Target group
Individuals of 18 years and above. Staff members will also be eligible for the facility on the same terms and conditions. The borrowers have to open Savings Account with us

Security
Pledge of gold ornaments of 22 Carat purity or Gold Coins sold by our Bank.

Quantum
Minimum - Rs 10,000/Maximum - Rs 10,00,000/- (Rs 1400/ per gram maintaining a minimum margin of 20%). Drawingns power to be revised suitably based on the market value of gold.

Maximum Limit of loan per gram


Rs.1500/- per gram of gold ornaments and Rs.1700/- per gram of gold coins sold by our Bank, maintaining margin of 20%

Repayment 12 to 36 Months. In the case of overdraft facility, the


limit to be reviewed on annual basis Rate of Interest & Processing Charges Base Rate Spread % (a) %(b) Effective Rate % (a+b)=(c) OD DL 10.75 10.75 +2.00 +2.00 12.75 12.75
Complete waiver of Process Charges

Processing Charges *

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON

f) Mortgage Loan:1 Purpose To meet any sort of Personal or Business needs, but not for any speculative purpose / real estate activity / capital market activity. Loan against mortgage of immovable property located in Metro / Urban / Semi Urban/Rural Centers Individuals including staff, singly or jointly, Traders, Businessmen, Professionals or self employed persons, proprietary firms, partnership firms (excluding Traders or partnership firms where HUF is a partner), companies (excluding NBFCs) and NRIs (with co-borrower locally i.e. with Resident Indian who is blood relative of the NRI borrower as co-borrower), having known and regular source of minimum monthly income of Rs.10,000/- or more and not engaged in real estate/speculative activity /capital market activity. Term Loan and Overdraft The Overdraft facility will be for one year and to be reviewed annually. Minimum : Rs.1 lakh Maximum: Rs.50.00 lakh for property located in rural area and Rs.500.00 lakh for property located in other areas. EMI inclusive of other borrowings should not exceed 50 % of Gross Monthly Income. EM of non-encumbered residential house /flat, commercial or industrial property situated in metro/urban/ semi urban/rural centers only in the name and possession of the borrower either self-occupied or vacant or partially rented out/leased out. The value of property should be equal to 150- 200% of the loan amount. The property will be insured against fire, riots wherever required and also against other appropriate hazards, such as earthquake, flood, lightning etc with bank's clause for full value of the property. Personal guarantee of the joint /co-owner of the property (if any). In case of mortgage loan to firm/company, personal guarantee
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2 3

Eligibility Target Group

Nature of Facility Loan Amount

Security

Insurance

Guarantee

A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


of partners/ directors to be taken.

9 Interest Rate 10 Prepayment Charges

11 Repayment

Nil, in case prepaid from borrower's own sources. If the loan a/c is taken over by other Bank/FI, prepayment charges to be levied @ 1% of loan outstanding as on the date of such take over. Loan is to be repaid in Maximum 120 equated monthly installments (EMIs), commencing from next month of disbursement. Repayment of EMIs through ECS mandate/ Post dated cheques.

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


2.3 TYPES OF DEPOSITS:a) Cent Double Deposit Scheme:A. Product Features: i. ii. iii. iv. Name of the Product Nature of Deposit Rate of Interest Tenure of Deposit ROI 1 2 3 4 General Public 9.15% : Cent Double : MMDC : 9.15% : as under Annualized Periodicity Months Years 13.24% 93 7 2/3 88 83 80 7 1/3 6 11/12 6 2/3

Senior Citizen 9.65% 13.99% Staff 10.15% 14.66% Senior Citizen (Ex-staff) 10.65% 15.44% v. Min Deposit Amount

: Rs.10000.00 - Metro & Urban Centers : Rs. 5000.00 - Semi-Urban & Rural Centers : Less than ONE CRORE : Yes, as per prevailing rules : 5th January, 2012 : 31st March, 2012

vi. Max Deposit Amount vii. Loan and Advances against deposit viii. Launch Date of product ix. Termination of product

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


b) Cent Super Plus term deposit:A B C D E F G H I J K L M
Proposed Name of Product Product segment Nature of Deposit Tenure of Deposit Rate of Interest Compounding of interest Min Deposit Amount Max Deposit Amount Premature Withdrawal Senior Citizen benefit Staff / Ex Staff /Ex Staff & Senior Citizen Loan and Advances against deposit Product termination date Cent Super Plus term deposit Retail/Corporate Term Deposit 555 days 9.30% p.a. Quarterly 1000.00 No Ceiling As per applicable rules Additional 0.50%. Additional 1% As per applicable rules 31st March 2012

c) Savings Account with Personal Accident Cover:Sr.No Parameters Features 1 Name of the Cent Savings Plus Account Scheme 2 Applicability Savings Accounts opened on or after 10th June 2010 but before 31st March 2011 in CBS branches of Central Bank of India 3 Type of Personal Accident cover for death only Insurance Coverage 4 Eligibility Individuals-Single Accounts , Joint Accounts However, only Principal Account Holder (First account holder) is covered under personal accident insurance. 5 Minimum Minimum Average Quarterly Balance (AQB) Balance maintained in the account should be Rs.10,000/-to
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


6 Requirement Age of Account Holder qualify for insurance cover Principal Account Holder (First Account Holder) should be aged between 18 years (completed) and 65 years. In case of accounts of minors, the guardian will be covered provided he/she is aged between 18-65 years. Multiple Scheme is not applicable for multiple accounts of Accounts Principal Account Holder. The Insurance cover is allowed only to one SB account of Principal Account Holder irrespective of the number of SB accounts he/she opens, either in one or multiple branches. Sum Assured Rs 1,00,000/- only, irrespective of the balance saving account. Nomination In the event of unforeseen demise of the Principal facility Account Holder, claim amount on settlement shall be paid to the nominee/s or legal heirs, as the case may be, on completion of the required formalities. Policy Period One year from the date of account opening. Bank may consider continuing the scheme at its discretion. Payment of To be borne by the bank. premium Insurance Insurance Cover is available for accident which Cover means a sudden, unforeseen and unexpected physical event caused by external, violent and visible means. The insurance is provided under the Group Insurance Scheme from declared Risk Start Date by the Bank. No individual certificate will be provided to the customer. Penalty for not A penalty of Rs.100/- will be charged per quarter maintaining for not maintaining a minimum quarterly average minimum balance of Rs 10,000/-. Further, if the customer fails balance in the to maintain the minimum average balance of Rs account 10,000/- for three consecutive quarters, the insurance cover will lapse. Settlement of Insurance Company reserves the right for claims admission/rejection of claims. Further a claim is liable to be rejected in case of incomplete submission of documents and/or misrepresentation/ suppression of material facts. Other Terms All other terms and conditions applicable to normal and Conditions HSS Accounts are also applicable to Cent Savings Plus Account.
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8 9

10

11 12

13

14

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d) Recurring Deposit with Personal Accident Cover:CENT Uttam Scheme
Easy liquidity & high returns-get the best of both worlds . Cent Uttam scheme offers you the double benefits of easy liquidity and high returns. It is also a flexible scheme that allows you to withdraw a part of the deposit amount as and when required. Amount of deposit You can deposit a minimum amount of Rs. 5,000/- and multiples of Rs. 1,000/-. At the time of the acceptance of the deposit, the entire deposit will be placed in 'units' of Rs. 1,000/- each, so as to make available each 'unit' for payment at your option. Period of deposit You can open an account for a minimum period of 30 days and upto a maximum of 120 months. Rate of interest The rate of interest shall be the appropriate rate ruling on the date of the deposit for the period so selected. Pass Book You will be provided with a 'Pass Book' under the scheme. If the 'Pass Book' is spoiled/mutilated or lost, a duplicate 'Pass Book' will be issued after observing other formalities and recovering the usual 'Service Charges'. Premature payment You will be allowed to withdraw the 'units' as per your option. Such withdrawal of 'units' are treated as 'Premature Payment'. The rules governing 'Premature Payment' shall be applicable for the particular 'units' so withdrawn. The rest of the 'units' shall remain unaffected in the deposit account and shall carry the 'contracted rate of interest' till its maturity. You will be permitted to withdraw 'units' upto a maximum of 10 times during the entire period of deposit. Loan/advance Loan/advance facility is available under the scheme as per against Deposit prevailing rules.

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


e) Monthly Interest Deposit Receipt (MIDR):Earn monthly interest without depleting your principal. The MIDR scheme provides you with monthly interest earnings, without affecting the principal amount. Amount of deposit You can deposit a minimum amount of Rs. 5,000/and in multiples of Rs. 1000/-. Period of deposit You can open an account for periods ranging from 12 months to 120 months. Rate of interest The rate of interest shall be the appropriate rate prevailing on the date of the deposit for the period so selected. Certificate / Receipt After completion of formalities you will be issued a printed receipt (Monthly Interest Deposit Receipt) with all particulars filled in as sr. no., your name, amount of deposit, period of deposit, date of deposit, due date of deposit, interest rate and interest payable every month etc. Premature payment Payment before maturity is available as per prevailing rules. Loan/advance against deposits Loan/advance facility is available under the scheme as per prevailing rules.

f) ENT Tax Saving Deposit: Type of Deposit: An individual or a Hindu Undivided Family (HUF) who is an Income Tax assessee with Permanent Account Number. Mode of Holding: Deposits may be of following types: Single holder type deposits. Joint holder type deposits. The single holder type deposit receipt shall be issued to an individual in personal name or in the capacity of the Karta of the Hindu undivided Family.
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


The joint holder type deposit receipt may be issued jointly to two adults or jointly to an adult and a minor, and payable to either of the holders or

to the survivor Provided that in the case of joint holder type deposit, the Deduction from income U/S 80/C sub section 2(XXI) of the Act shall be available only to the first holder of the deposit. Tenure of the Deposit: Fixed period of 5 years. Amount: Minimum: Rs.100/or multiples thereof. Maximum:

Rs.1,00,000/- (Rs. One Lac only) in a financial year. Rate of Interest:The rate of interest to be applied to Cent tax Savings Deposit Scheme will be in accordance with the interest rate on domestic term deposits (uptoRs. 15 lacs) applicable to the five-year term. Deposit options: Deposit may be in the form of Monthly Interest Deposit/Quarterly Interest Deposit or Reinvestment Plan (Cumulative).

g) Senior Citizen Deposit Scheme:Making life easier for senior


The unique feature of the scheme is an incentive to senior citizens by way of additional interest over and above normal rate of interest on any of our existing term deposit schemes. This facility will be available to fresh deposits and renewal of maturing deposits. If you have completed the age of 60 years, you will be treated as a senior citizen for getting the benefit under this scheme. Amount of deposit The minimum amount of deposits accepted will be as per the criteria laid down for the deposit scheme which you opt for. Period of deposit Your deposits may be accepted for any period between 15 days (minimum period as applicable to various deposit schemes) and 120 months.

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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


Incentive on Rate of interest An additional interest rate of 0.50% p.a. over and above the normal rate of interest for any of the Time Deposit Schemes will be given as incentive for deposits of Senior Citizens who are above 60 years of age. Certificate / Pass Book Certificate or 'Pass Book' will be issued to you according to the deposit scheme such as 'Pass Book' will be issued for Khazaana and Certificate will be issued for MMDC, MIDR and QIDR. Premature payment Payment before maturity is available as per prevailing rules subject to withdrawal of incentive of relevant additional interest. Loan/advance against deposits Loan against deposits is available as per prevailing rules. Add-on facilities to Senior Citizens in savings bank account The following additional incentives are available to you. There are no minimum balance requirements for Senior Citizens of 70 years and above. Service charges 20% below normal rate (For basic services only).

h) Money Multiplier Deposit Certificate (MMDC):Multiply Your Deposits


The interest accrued gets added back to the principal giving you an effective interest rate that is higher than the contracted interest rate. This is an ideal scheme to increase your deposits exponentially.

Amount of deposit You can deposit a minimum amount of Rs. 100/- and
multiples of Rs. 100/-. Period of deposit You can open an account for a minimum period of 6 months and upto a maximum of 120 months.
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


Rate of interest The rate of interest shall be the appropriate rate prevailing on the date of the deposit for the period so selected. Deposit certificate After opening of the account in the ledger, you will be issued a printed certificate (money multiplier deposit certificate) with full particulars filled in such as Sr. No., Your name, amount of deposit, period of deposit, date of deposit, due date of deposit, interest rate of deposit and maturity value etc. Premature payment Payment before maturity is available as per prevailing rules.

Loan/advance against deposits Loan/advance facility is available under


the scheme as per Prevailing rules.

i) Quarterly Interest Deposit Receipt (QIDR):Principal Intact


QIDR provides you quarterly interest without affecting the principal amount. Amount of deposit You can deposit a minimum amount of Rs. 5,000/and in multiples of Rs. 1000/-. Period of deposit You can open an account for periods ranging from 12 months to 120 months. Rate of interest The rate of interest shall be the appropriate rate prevailing on the date of opening of the account for the period so selected. Certificate / Receipt After completion of formalities you will be issued a printed receipt (Quarterly Interest Deposit Receipt) with all particulars filled in as sr. no., your name, amount of deposit, period of deposit, date of deposit, due date of deposit, interest rate and interest payable every quarter etc. Premature payment Payment before maturity is available as per prevailing rules.
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A SYUDY OF VARIOUS LOANS SCHEMES PROVIDED BY CENTRAL BANK OF INDIA, SHEGAON


Loan/advance against deposits Loan/advance facility is available under the scheme as per prevailing rules.

j) Centrals Flexi Yield Deposit Scheme:Reap higher returns


Under this scheme depositors can avail floating rate of interest which is higher than the interest rate on normal Term Deposits. Amount of deposit Rs. 50,000/- and thereafter in multiple of Rs. 5,000/-. Period of deposit One year and above and upto a maximum of 10 years. Rate of interest Rate of interest shall be the appropriate rate prevailing on the date of deposit. Premature payment Payment before maturity is available. However, in such cases the deposit will be treated as normal deposit and interest will be paid as per our prevailing rates applicable to normal deposits. Further, the extra interest paid on Central's Flexi Yield Deposit will be recovered. Loan/advance against deposits Loans and advances against deposit is available in the scheme as per prevailing rules.

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CHAPTER3 Research Methodology 3.1 Research Methodology:. Research Methodology is process of systematic gathering, recording

and analyzing of data collected by various techniques to access the respond and accordingly prepare a report based on impact of promotional activity. It is careful investigation or inquiry especially through search of knowledge through objective and systematic method of finding solution of a problem. Thus in short the term research refers to formulating a hypothesis. The present study is based on secondary data for the facts and figures and primary data as personal interview and questionnaire. The information is taken from the News paper, books and magazines. Research problem is one which require a researcher to find out the best solution for the best solution for the given problem that is to find out by which course of action the objective can be attained optimally in context of given environment. 3.2 OBJECTIVE OF STUDY: To study the different types of loans provided by central bank and its eligibility criteria and conditions. To study the benefits of these loans scheme to bank. To study the benefits of different loans to customer of bank.

3.3 RESEARCH DESIGN:A research design case the arrangement of condition for collection and analysis of data in manner that aims to combine relevance to research purpose with economic procedure. The most important research process is deciding on research design.
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3.4 EXPLORATORY RESEARCH:Exploratory research is conducted when the researcher does not know how and why a certain phenomenon occurs. To understand this phenomenon, several researchers have conducted focus group discussion to identify these quality parameters. Since the prime goal of an exploratory research is to know the unknown, this research is unstructured. Experts and even search and even for printed or published information are some common techniques. 3.5 DATA SOURCE:After identifying and defining the research problem and deterring specific information required solving the problem, the researchers task is to look for the type source of data, which may yield the desired result. Research methodology carried for this study can be two types. 1) PRIMARY DATA:a) Primary data collected by the researcher through interview of bank manager and banker. b) By structured questionnaires customer of the bank. 2) SECONDARY DATA:Secondary data collected by researcher through bank circular, bank website and RBI guide lines published by RBI. SAMLING:1) UNIVERS: - All person who have taken loans from bank. 2) SIZE: - 100 people who taken different loans. 3) TECHNIQUE: - No probability convenient sampling.
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3.6 LIMITATIONS:1) The topic is based on purely academic purpose. 2) The topic is based the study of central bank only. 3) The study is limited to shegaon city only.

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Data Analysis and Interpretation Table No.4.1 Analysis according to age group. Age-Group Below 20 20-25 25-30 30-35 35 & Above Total Response 02 26 28 30 14 100 Percentage 02 26 28 30 14 100

Graph No .4. 1: Analysis according to age group

Percentage
30% 25% 20% 15% 10% 5% 0% Below 20 20-25 25-30 30-35 35 & Above 2% 14% Percentage 26% 28% 30%

(Source: Primary data) Interpretation:From the above data, it is clear that major group of age is 30-35 (30%), Second major group is 25-30 (28%), major group 20-25 (26%) and minor group is 35 & above (14%),below (2%), and the negligible response is from below 20 group.

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Table No.4.2 Analysis according to Gender. Gender Male Female Total Response 76 24 100 Percentage 76 24 100

Graph No. 4.2: Analysis according to gender.

Precentage
24%

Male 76% Female

(Source: Primary data)

Interpretation:From above data, it reveals that out of total response male respondents are 76% and female respondents are 24%.

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Table No.4.3 Analysis according to occupation. Occupation Professor Businessman Govt. Employed Private Employed Other Total Response 11 12 26 24 27 100 Percentage 11 12 26 24 27 100

Graph No. 4.3: Analysis according to occupation.


30% 25% 20% 15% 10% 5% 0% Professor Businessman Govt. Employed privet Employed Other 11% 12% Percentage 26% 27% 24%

(Source: Primary data) Interpretation: From the above data, it is clear that out of total response, 26% respondents are Govt. employee, 42% are private employee, 12% are businessmen, 11% respondents are professor and only 27% respondents are other categories respectively.

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Table No.4.4 Analysis according to income. Income group Below 1 lack 1 lack-2 lack 2 lack-3 lack 3 lack& above Total Response 25 24 29 22 100 Percentage 25 24 29 22 100

Graph No. 4.4 Analysis according to income.

Percentage
29% 30% 25% 20% 15% 10% 5% 0% Below 1 lakh 1 lakh-2 lakh 2 lakh-3 lakh 3 lakh & above Percentage 25% 24% 22%

(Source: Primary data)

Interpretation: From the above data, it is clear that out of the total response, 29% respondents belong to 2 lack-3 lack, 25% respondents belong to the below 1 lack, 24% respondents belong to 1 lack-2 lack, 22% respondents belong to the higher income group 3 lack & above.

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Table No.4.5 Analysis according to educational qualification:Educational Qualification S.S.C H.S.C Graduate Post graduate Other Response 0 2 38 48 12 Percentage 0 2 38 48 12

Graph No. 4.5 Analysis according to educational qualification

Percentage
60% 50% 40% 30% 20% 12% 10% 0% 0% S.S.C H.S.C Graduate Post graduate Other 2% 38% 48%

Percentage

(Source: Primary data) Interpretation:-

From above data, it shows that out of total response, 0% respondents are passed S.S.C, 2% respondent are H.S.C, 38% respondents are graduate, 48% respondents are post graduate & 12% are other qualification.

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Table No.4.6 Analysis according to loan taken. Types of loan Home loan Education loan Vehicle loan Gold loan Personal loan Mortgage loan Total Response 29 21 18 9 16 7 100 Percentage 29 21 18 9 16 7 100

Graph No. 4.6: Analysis according to Loan taken.

Percentage
7% 16% 9% 18% 21% 29% Home loan Education loan Vehicle loan Gold loan Personal loan Mortgage loan

(Source: Primary data) Interpretation: From the above data, we can see that out of total response, 29% respondents have taken home loan, 21% respondents are taken education loan, 18% respondent are taken vehicle loan, 16% respondent are taken personal loan, 9% respondent are taken gold loan and 7% respondent are taken mortgage loan.

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Table No.4.7 Analysis according to which year take a loan. year Before 2000 2000-03 2004-07 2008-11 2012 & onwards Total Response 31 18 24 22 5 100 Percentage 31 18 24 22 5 100

Graph No. 4.7: Analysis according to which year take a loan.

Percentage
40% 30% 20% 10% 0% 31% 18% 24% 22% 5% Percentage

(Source: Primary data) Interpretation: From the above data, it reveals that out of the total respondents ,31% are taken a loan before 2000, 24% are 2004-07, 22% are 2008-11, 18% are 2000-03 and 5% are 2012 & onwards.

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Table No.4.8 Analysis according to marital status Married & unmarried Married Unmarried Total Response 28 72 100 Percentage 28 72 100

Graph No. 4.8: Analysis according to marital status.

Percentage
28% Married Unmarried 72%

(Source: Primary data) Interpretation: From the above data, it shows the analyses according to marital status 28% are married and 72% are unmarried.

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Table No.4.9 Analysis according to different sources of information. Sources T.V. News papers Bank Friends Internet Other Response 5 20 21 22 20 12 Percentage 5 20 21 22 20 12

Graph No. 4.9: Analysis according to different sources of information.

25% 20% 15% 10% 5% 0% 5%

20% 21% 22% 20% 12% Percentage

(Source: Primary data) Interpretation: From the above data, it is revealed that out of total response, 22 respondents are select loan as friends advice. , 20% are from internet, 20% are from news paper, 21 are from bank, 12% are other and 5% are from T.V.

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Table No.4.10 Analysis according to Factors responsible for selection of loan. Factors Rate of interest Low documentation Low service charges Good customer service Convenient repayment Total Response 31 23 16 12 18 100 Percentage 31 23 16 12 18 100

Graph No.4.10: Analysis according to factors responsible for selection of loan.

Percentage
35% 30% 25% 20% 15% 10% 5% 0% 31% 23% 16% 18% 12% Percentage

(Source: Primary data) Interpretation: From the above data, we can say that out of total respondent 31% are rate of interest, 23% are low documentation, 18% are convenient repayment, 16% are low service charges and 12% are good customer service.

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Table No.4.11 Analysis according to Rate of interest. Level of significance High significant Significant Not significant Total Response 56 26 18 100 Percentage 56 26 18 100

Graph No. 4.11: Analysis according to Rate of interest.

Percentage
60% 50% 40% 30% 20% 10% 0% High significant Significant Not significant 26% 18% Percentage 56%

(Source: Primary data) Interpretation: From the above data, Out of total respondents 56% are high significant, 26% are significant and 18% are not significant.

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Table No.4.12 Analysis according to easy & fast procedure. Level of significance High significant Significant Not significant Total Response 59 31 10 100 Percentage 59 31 10 100

Graph No. 4.12: According to easy & fast procedure.

Percentage
10% 31% 59% High significant significant Not significant

(Source: Primary data)

Interpretation: From the above data, Out of total respondents 59% are high significant, 31% are significant and 10% are not significant.

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Table No.4.13 Analysis according to Low documentation. Yes/no Yes No Total Response 81 19 100 Percentage 81 19 100

Graph no.4.13: According to Low documentation

Percentage
100% 80% 60% 40% 20% 0% Yes No 19% Percentage 81%

(Source: Primary data) Interpretation: From the above data, we can see that out of total respondents 81% are said Yes and 19% are said No.

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Table No.4.14 Analysis according to low service charges. Yes/No Yes No Total Response 60 40 100 Percentage 60 40 100

Graph No. 4.14: According to low service charges.

Percentage
40% 60% Yes No

(Source: Primary data) Interpretation: From the above data, we can see that out of total respondents 60% are said Yes and 40% are said No.

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Table No.4.15 Analysis according to face any difficulty. Yes/No Yes No Total Response 19 81 100 Percentage 19 81 100

Table No. 4.15: According to face any difficulty.

Percentage
19%

Yes No 81%

(Source: Primary data) Interpretation: From the above data, we can see that out of total respondents 81% are said Yes and 19% are said No.

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Table No.4.16 Analysis according to grade. Grade Excellent Good Average Poor Total Response 29 35 21 15 100 Percentage 29 35 21 15 100

Graph No. 4.16: Analysis according to grade

Percentage
15% 21%

29% Excellent Good Average 35% Poor

(Source: Primary data) Interpretation: From the above data, It is clear that 35% respondents are given excellent grade, 29% are given good, 21% are given average and 15% are given poor.

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Table No.4.17 Analysis according to property as mortgage. Type of property Plot paper House paper Insurance paper Other Total Response 29 7 21 43 100 Percentage 29 7 21 43 100

Table No. 4.17: According to property as mortgage

Percentage

43%

29% Plot paper 7% 21% House paper Insurance paper Other

(Source: Primary data) Interpretation: From the above data, It is clear that 29% respondents are mortgage there plot paper, 21% are given insurance paper, 7% are given house paper and 43% are given other documents as mortgage.

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Chapter 5
FINDINGS, SUGGESTIONS AND LIMITATIONS: 5.1 FINDINGS: It is found that, majority of respondents were between the age group of 3035. Majority of respondent were male. Majority of respondents were government employees. Majority of respondents were unmarried. Majority of respondent were taken a loan before the year 2000. It is found that, rate of interest, low documentation, low service charges; good customer service and convenient payment were the most important factor which plays an important role in decision making process of selecting loans. Majority of respondents were not facing any difficulty while taken a loan from bank. Majority of respondents have post graduate and their income is 1 lack to 3 lack and taken different types of loan and enjoy the benefits of these loans schemes. Majority of respondents have given good grade to bank because of their cheapest interest rate, low documentation and low charges etc. Majority of respondents have taken home loan from central bank of India because of their cheapest interest rate and these people are in age group of 32 to 35. Majority of respondents got information about different loan schemes of central bank of India from friends i.e. 22%. It means that, friends were strongest source of information.

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SUGGETIONS: Branches of organization should arrange customers meeting to popularize these lending schemes. Central Bank should appoint financial adviser for loans. At the apex level a lot of publicity should be given on the advantages of bank loans. Loan application forms should be simplified. The system of changing a reduced rate of interest based on the credit rating of the borrowers may be introduced in personal loan schemes.

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BIBLIOGRAPHY: Research Methodology C.R.Kothari, published By- New Age International, New-Delhi. Bank prospectus

WIBLIOGRAPHY: www.centralbankofindia.com

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