SUMMER TRAINING REPORT

ON
LOAN ADVANCEMENTS AT STATE BANK OF INDIA
Submitted in partial fulfillment of the requirements
for the award of the degree of
Bachelors of Business Administration (BBA)

Submitted by: ISHAN GULATI

BBA(General) 1st Shift
5TH Semester
Roll No. 01514901713

MAHARAJA SURAJMAL INSTITUTE, JANAKPURI

Affiliated to:
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, NEW DELHI

ACKNOWLEDGEMENT

Project work is never the accomplishment of an individual rather it is an amalgamation of the efforts,
ideas and cooperation of number of entities.
I would like to thank GURU GOBIND SINGH INDRPRASTHA UNIVERSITY for giving me an
opportunity to work on a valuable project.
I would like thank Mr. Ashish Sahulia, Head, Loans and Operations, State Bank Of India,
Vatika Branch for guiding me and helping me throughout my Internship. I would also like to thank
my mentors Mr. Anureet Singh and Mr. Manohar Joshi for providing me invaluable information as
well as insight into my work.
I would like to thank Mr. Rajeev Batra, Regional Branch Manager, State Bank Of India, Vatika
Branch and also the HR Department for selecting me and giving me an opportunity for my
Internship. I would also like to thank the Advances Department for providing me with the
technical assistance whenever I Required.
I would also like to thank all those Individuals whom I met during my field visit. Without your
insight and help, this project would have been impossible to complete.
Last but not least I would like to thank Dr. Parul Deshwal, Assistant Professor, Department of
Business Administration, Maharaja Surajmal Institute for helping me and guiding in completing
my training report.

ISHAN GULATI

TABLE OF CONTENTS
Page no.

Chapter 1
Introduction
Objectives of the Study
Research Methodology.
Limitations
Chapter 2
Company Profile
Overview
History.
Competitors....
Strengths/Opportunities & Weaknesses/Threats
Different Products....
Awards & Recognitions to SBI.
Chapter 3
Field of Research
What is Advance Product?
SBIs Loan Advancements.
Statement of the Problem..
Scope of Internship.
Geographical Feasibility
Chapter 4
Analysis and Interpretation of Data
Graphical Representation
Chapter 5....
Conclusions
Findings
Suggestion & Recommendations.............
Final Culmination

INTRODUCTION

Objectives of the study

Research methodology
Limitations

Introduction
In the growing global competition, the productivity of any business concern depends upon the
behavioral aspect of consumers. This topic deals with the customers perception towards other
Advance Product from SBI credit cards at Bhubaneswar. This project report contains 5 different
chapters. The report begins with the introduction to company, its area of operation, its organization
structure, its achievements, etc.
The second chapter is the introduction to the Advance Product which gives a brief idea regarding
LOAN ADVANCEMENTS of SBI REGIONAL BRANCH, GURGAON where the project is
undertaken. It also contains the objectives and limitations of the project.
The third chapter, methodology adopted in preparing this report is mentioned. It covers the sample
procedure, types of data used and the data collection method.
The fourth chapter comprehensive coverage of forecasting concepts and techniques which shows the
analysis of data through tabulation, computation and graphical representation of data collected from
survey.
The fifth chapter deals with the findings, suggestion & conclusion part which is very much
important after analysis is made.
As we know that only analysis and conclusion is not the end of a research, so in the sixth chapter the
recommendation part is covered which are made after a depth study of the analysis part of thesis.
In each of the five chapters as described above, every chapter has been scheduled in a manner so as
to enable the reader to appreciate the contents easily. The report is supported by figures and data
wherever necessary with a view to assist the reader in developing a clear cut understanding of the
topic.
I hope this report will be extremely useful for those it is meant. Constructive and healthy suggestions
for improvements of the report will be great fully appreciated.

Objectives OF THE STUDY

Summer Internship Project gives a practical exposure and helps in acquiring the on road skills.
First and foremost objective is to find out the reasons for acquiring loan advancements from
SBI.
To find out the services that other banks propose to give to their customers.
To generate leads through the survey.
To sort out the prospective leads from the data I have collected through the survey.
To build a relationship with the customers and to follow up on them, making sure that they
are satisfied with the procedure.
To maintain good relationship with the colleagues and corporate employees.
To get more references from the customers and generate new leads by following a chain
process.
To showcase SBI Advance Product ahead of the competitors.
To find out the customers awareness on booming Advance Product market and to find out the
various patterns employed by others.
To make the customer aware of the benefits of the product and convince him to go for SBIs
Loan Advancement Product.

Research methodology
Research methodology is the process of 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 book, magazine; journals have been referred for
secondary data. The questionnaire has been drafted & presented by the researcher himself.

Sample Size:

Sample of 200 people was taken into study, and their data was collected.
Sampling Technique:

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.
Data Analysis:

After data collection, Im able to analyze customers views, ideas and opinions related to
Advance Product and about SBI Advance Product and from this, SBI will come to know
the customer requirements.
Data Interpretation:

Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and
also using quantitative techniques (by using these techniques) accurate information is
obtained.

 Classification & tabulation of data:

The data thus collected was classified according to the categories, counting
sheets & the summary tables were prepared. The resultant tables were one
dimensional, two dimensional.
Statistical tools used for analysis:

Out of the total respondents, the respondents who responded logically were
taken into account while going into statistical details & analysis of data. The
tools that have been used for analyzing data & inference drawing are mainly
statistical tools like percentage, ranking, averages, etc.
As per questionnaire and market surveys I have find out different responses from different people.
According to their responses I analyzed the findings and draw certain remarks.

LIMITATIONS
The project research is limited to the area of Gurgaon only, hence cannot be viewed as a
complete study of banks in India.

The sample size is limited to only 200 customers.

The customers are associated to only State Bank of India and hence, customers of other banks
are not considered.

The time period for compilation of research results was limited to only two months.
Customers of only one branch of State Bank of India were considered, hence, scope of study
was limited.

Most of the customers seemed reluctant to disclose details of the loan advances they took
earlier from other banks.

Some customers did not reveal their personal information due to false perception of
becoming a part of fraud schemes.

Customers reactions and perceived notions could not be recorded in the research due to
quantitative constraints.

COMPANY PROFILE

Overview
History
Competitors
Strengths/Opportunities &
Weaknesses/Threats

Different Products
Awards & Recognitions to SBI

OVERVIEW

State Bank of India is the largest and one of the oldest commercial bank in India, in existence for
more than 2000 years. The bank provides a full range of corporate, commercial and retail banking
services in India. Indian central bank namely Reserve Bank of India (RBI) is the major shareholder
of the bank with 59.7% stake. The bank is capitalized to the extent of Rs.646bn with the public
holding (other than promoters) at 40.3%. SBI has the largest branch and ATM network spread across
every corner of India. The bank has a branch network of over 14,000 branches (including
subsidiaries). Apart from Indian network it also has a network of 73 overseas offices in 30 countries
in all time zones, correspondent relationship with 520 International banks in 123 countries. In recent
past, SBI has acquired banks in Mauritius, Kenya and Indonesia. The bank had total staff strength of
198,774 as on 31st March, 2006. Of this, 29.51% are officers, 45.19% clerical staff and the
remaining 25.30% were sub-staff. The bank is listed on the Bombay Stock Exchange, National Stock
Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Ahmedabad Stock Exchange
while its GDRs are listed on the London Stock Exchange. SBI group accounts for around 25% of the
total business of the banking industry while it accounts for 35% of the total foreign exchange in
India. With this type of strong base, SBI has displayed a continued performance in the last few years
in scaling up its efficiency levels. Net Interest Income of the bank has witnessed a CAGR of 13.3%
during the last five years. During the same period, net interest margin (NIM) of the bank has gone up
from as low as 2.9% in FY02 to 3.40% in FY06 and currently is at 3.32%.

Management
The bank has 14 directors on the Board and is responsible for the management of the
banks business. The board in addition to monitoring corporate performance also carries out
functions such as approving the business plan, reviewing and approving the annual budgets and
borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of the bank. The fiveyear term of Mr. Bhatt will expire in March 2011. Prior to this appointment, Mr. Bhatt was Managing
Director at State Bank of Travancore. Mr. Bhatt has more than 30 years of experience in the Indian
banking industry and is seen as futuristic leader in his approach towards technology and customer
service. Mr. Bhatt has had the best of foreign exposure in SBI. We believe that the appointment of
Mr. Bhatt would be a key to SBIs future growth momentum. Mr. T S Bhattacharya is the Managing
Director of the bank and known for his vast experience in the banking industry. Recently, the senior
management of the bank has been broadened considerably. The positions of CFO and the head of
treasury have been segregated, and new heads for rural banking and for corporate development and
new business banking have been appointed. The managements thrust on growth of the bank in terms
of network and size would also ensure encouraging prospects in time to come.

Shareholding & Liquidity (Till 30th Sept. 2012)

Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed by overseas
investors including GDRs with 19.78% stake as on September 06. Indian financial institutions held

12.3% while Indian public held just 8.2% of the stock. RBI is the monetary authority and having
majority shareholding reflects conflict of interest. Now the government is rectifying the above error
by transferring RBIs holding to itself. Post this, SBI will have a further headroom to dilute the
GOIs stake from 59.7% to 51.0%, which will further improve its CAR and Tier I ratio.

Key Areas of Operations

The business operations of SBI can be broadly classified into the key income generating areas
such as National Banking, International Banking, Corporate Banking, & Treasury operations.

HISTORY

The origin of the State Bank of India goes back to the first decade of the nineteenth century with
the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank
received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the
Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result
of the compulsions of imperial finance or by the felt needs of local European commerce and were
not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution
was, however, shaped by ideas culled from similar developments in Europe and England, and was
influenced by changes occurring in the structure of both the local trading environment and those in
the relations of the Indian economy to the economy of Europe and the global economic framework.

The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the board of directors, which managed the
affairs of each bank, were mostly proprietary directors representing the large European managing
agency houses in India. The rest were government nominees, invariably civil servants, one of
whom was elected as the president of the board.

Group Photograph of Central Board (1921)

Business

The business of the banks was initially confined to discounting of bills of exchange or other
negotiable private securities, keeping cash accounts and receiving deposits and issuing and
circulating cash notes. Loans were restricted to Rs.1 Lac and the period of accommodation
confined to three months only. The security for such loans was public securities, commonly called
Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no
interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo,
salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but such
finance by way of cash credits gained momentum only from the third decade of the nineteenth
century. All commodities, including tea, sugar and jute, which began to be financed later, were
either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower
in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the
banks or on the mortgage of houses, land or other real property was, however, forbidden.
Indians were the principal borrowers against deposit of Company's paper, while the business of
discounts on private as well as salary bills was almost the exclusive monopoly of individuals
Europeans and their partnership firms. But the main function of the three banks, as far as the
government was concerned, was to help the latter raise loans from time to time and also provide a
degree of stability to the prices of government securities.
First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of rural India was given the
highest priority. The commercial banks of the country including the Imperial Bank of India had till
then confined their operations to the urban sector and were not equipped to respond to the emergent
needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in
general and the rural sector in particular, the All India Rural Credit Survey Committee
recommended the creation of a state-partnered and state-sponsored bank by taking over the
Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An
act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted
on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed
under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was
passed in 1959, enabling the State Bank of India to take over eight former State-associated banks
as its subsidiaries (later named Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices
comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank.
The concept of banking as mere repositories of the community's savings and lenders to
creditworthy parties was soon to give way to the concept of purposeful banking sub-serving the
growing and diversified financial needs of planned economic development. The State Bank of
India was destined to act as the pacesetter in this respect and lead the Indian banking system into
the exciting field of national development.

COMPETITORS

Competitors and other players in the field:Top Performing Public Sector Banks
Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank

Top Performing Private Sector Banks

HDFC Bank
ICICI Bank
AXIS Bank
Kotak Mahindra Bank
Centurion Bank of Punjab

Top Performing Foreign Banks

Citibank
Standard Chartered
HSBC Bank
ABN AMRO Bank
American Express

Strength/ Opportunities:
The growth for SBI in the coming years is likely to be fuelled by the following factors:
Continued effort to increase low cost deposit would ensure improvement in NIMs and hence
earnings.
Growing retail & SMEs thrust would lead to higher business growth.
Strong economic growth would generate higher demand for funds pursuant to higher corporate
demand for credit on account of capacity expansion.

Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under:
SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth prospects of
the bank going forward.
Stiff competition, especially in the retail segment, could impact retail growth of SBI and hence
slowdown in earnings growth.
Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing retail
book poses higher credit risk to the bank.
Delay in technology upgrade could result in loss of market shares.
Management indicated a likely pension shortfall on account of AS-15 to be close to
Rs50bn.
Slowdown in domestic economy would pose a concern over credit off-take thereby impacting
earnings growth.

DIFFERENT PRODUCTS OF SBI:

DEPOSIT

LOANS

CARDS

DIFFERENT CREDIT
CARDS

Savings
Account

Home
Loans

Consumer
Cards

SBI International
cards

Life Plus
Senior
Citizens
Savings
Account

Loan
Against
Property

Credit Card

SBI Gold cards

Personal
Loans

Travel Card

SBI Gold Master

cards

Car Loan

Debit Cards

Your City Your

Cards

Recurring
Deposits

Loans
against
Securities

Commercial
Cards

Tax-Saver
Fixed Deposit

Two
Wheeler

Corporate
Cards

Partnership Cards

Salary
Account

Preapproved
Loans

Prepaid Card

Advantage
Woman
Savings
Account

Retail
Asset

Purchase
Card

SBI Employee
Cards

Rural Savings
Account

Farmer
Finance

Distribution
Cards

People's
Savings
Account

Business
Installment
Loans

Business
Card

SBI Advantage
Cards

Freedom
Savings
Account

Flexi Cash

Merchant
Services

Fixed
Deposits

Security
Deposits

FIELD OF RESEARCH
What is Advance Product?
SBIs Loan Advancements
Statement of the Problem
Scope of Internship
Final Significance

What is Advance Product?

Nowadays, not all the people have the capacity to fulfill their requirement by their own earning,
thats why they need help from others. For this so many government & private sector bank provide
them money to fulfill their requirement, thats call the Advance Product (loan product) of the bank.
All the banks have so many different types of advance product as per the requirement of the people
or customers. In Gurgaon also there are so many banks those provide loan to the people for different
causes.

Types of Advance Product

Home Loan
Educational Loan
Car Loan
Personal Loan
Property Loan
Loan Against Shares\Debentures
Etc.

Nowadays a large no.of people are taking loans from different banks. It helps people to fulfill their
need and it is really easy to repay the loan amount due to a longer repayment period.

SBI Loan Advancement Schemes

SBI Home Loans:
Purpose

Purchase/ Construction of House/ Flat

Purchase of a plot of land for construction of House
Extension/ repair/ renovation/ alteration of an existing House/ Flat
Purchase of Furnishings and Consumer Durables as a part of the project cost.
Takeover of existing loans from other Banks/ Housing Finance Companies.
Eligibility
Minimum age 18 years as on the date of sanction
Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan
should be fully repaid.

Availability of sufficient, regular and continuous source of income for servicing the loan repayment.
Loan Amount

40 to 60 times of NMI, depending on repayment capacity as % of NMI as under

Net Annual Income

EMI/NMI Ratio

Upto Rs.2 Lac

40%

Above Rs.2 Lac to Rs. 5 Lac

50%

Above Rs. 5 Lac

55%

To enhance loan eligibility you have the option to add:

1. Income of your spouse/ your son/ daughter living with you, provided they have a steady income
and his/ her salary account is maintained with SBI.
2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be
rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources

Margin (Special Festival Season Offer)

Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1 cr., 20%
for loans above Rs. 1 cr.
Repairs/ Renovation of an existing House/ Flat: 15%

Interest Rates w.e.f 27.2.2012

Floating interest rates
(linked to State Bank Advance Rate - SBAR)
(SBAR: 12.25% p.a.)
Loan Tenor
->

Upto 5 years

Above 5 years
and upto 15 years

Above 15 years and

upto 25 years

Upto Rs.30
Lacs

2.25% below
SBAR, 10.00% p.a.

2.00% below
SBAR, 10.25% p.a.

1.75% below
SBAR, 10.50% p.a.

Above Rs.30 2.00% below

Lacs
SBAR, 10.25% p.a.

1.75% below
SBAR, 10.50% p.a.

1.50% below
SBAR, 10.75% p.a.

Fixed interest rates

Tenure
(p.a.)*Upto 10 years

Rate of Interest
12.75%

* Fixed rate loans will be subject to: 'force maejure' clause and interest reset at the end of every two
years on the basis of fixed interest rates prevailing then.

CAR LOAN:
Purpose

You can take finance for:

A new car, jeep or Multi Utility Vehicles (MUVs)
A used car / jeep (not more than 5 years old). (Any make or model).
Takeover of existing loan from other Bank/Financial institution (Conditions apply)

Eligibility

To avail an SBI Car Loan, you should be:

Individual between the age of 21-65 years of age.

A Permanent employee of State / Central Government, Public Sector Undertaking, Private

company or a reputed establishment or

A Professionals or self-employed individual who is an income tax assessee or

A Person engaged in agriculture and allied activities.

Net Annual Income Rs. 100,000/- and above.

Salient Features
Loan Amount

There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net
annual income can be sanctioned. If married, your spouse's income could also be considered
provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for onetime road tax, registration and insurance!
No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit of Rs. 15 Lac.
Type of Loan
1. Term Loan
2. Overdraft - a) For New vehicles only
b) Minimum loan amount: Rs. 3 Lac.
Documents required

You would need to submit the following documents along with the completed application form if you
are an existing SBI account holder:
1.
2.
3.
4.
5.
6.
7.

Statement of Bank account of the borrower for last 12 months.

2 passport size photographs of borrower(s).
Signature identification from bankers of borrower(s).
A copy of passport /voters ID card/PAN card.
Proof of residence.
Latest salary-slip showing all deductions
I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.

If you are not an account holder with SBI you would also need to furnish documents that establish
your identity and give proof of residence.

Margin

New / Used vehicles: 15% of the on the road price.

Repayment

You enjoy the longest repayment period in the industry with us.
Repayment period:
For Salaried:
Maximum of 84 months
For Self-employed & Professionals: Maximum 60 months
Repayment period for used vehicles :Up to 84 months from the date of original purchase of the
vehicle (subject to maximum tenure as above).
Prepayment Penalty:

Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions
FLOATING RATES:
A. for Term Loans
1. New Vehicles (Term Loan) Floating only W.E.F. February 27, 2012
Repayment Period

All Centers (SBAR - 12.25%)

Upto 3 years (for loans Rs. 7.5 Lac &

above)

0.75% below SBAR i.e. 11.50% p.a.

Upto 3 years (for loans below Rs. 7.5 Lac)

0.50% below SBAR i.e. 11.75%p.a.

Above 3 yrs up to 5 yrs (for all loans)

0.50% below SBAR i.e. 11.75% p.a.

Above 5 yrs up to 7 yrs (for all loans)

0.25% below SBAR i.e. 12.00% p.a.

2. Used Vehicles: Floating only W.E.F. February 27, 2008

Repayment Period

All Centers (SBAR-12.25%)

Upto 3 years

3.00% above SBAR i.e. 15.25% p.a.

Above 3 yrs up to 7 yrs

3.25% above SBAR i.e. 15.50% p.a.

B. For Overdrafts: For New Vehicles only W.E.F. February 27, 2008
Repayment Period

All Centres (SBAR 12.25%)

Upto 3 years (for loans Rs. 7.5 Lac &

above)

0.25% below SBAR i.e. 12.00% p.a.

Upto 3 years (for loans below Rs. 7.5 Lac)

At SBAR i.e. 12.25% p.a.

Above 3 yrs up to 5 yrs (for all loans)

At SBAR i.e. 12.25% p.a.

Above 5 yrs up to 7 yrs (for all loans)

0.25% above SBAR i.e. 12.50% p.a.

EDUCATION LOAN:

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where
admission has been secured.
Eligible Courses

All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses

Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

Fees payable to college/school/hostel

Examination/Library/Laboratory fees

Purchase of Books/Equipment/Instruments/Uniforms

Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire
course)

Travel Expenses/Passage money for studies abroad

Purchase of computers considered necessary for completion of course

Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan

For studies in India, maximum Rs. 10 Lac

Studies abroad, maximum Rs. 20 Lac

Interest Rates
(with effect from 1st June 2008)

For loans up to Rs.4 Lac - 11.75 % p.a. Floating

For loans above Rs. 4 Lac and upto Rs.7.50 Lac - 13.25 % Floating
For loans above Rs.7.50 Lac - 12.25% p.a. Floating
Processing Fees

No processing fee/ upfront charges

Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the
margin money

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a job,
whichever is earlier.

Place of Study
Studies in India
Studies Abroad

Loan Amount
Rs. 10.0 Lac

Repayment in Period
Years
5-7

Rs. 20.0 Lac

5-7

Security
Amount
Upto Rs. 4 Lac
7.50 lacs

For loans upto Rs. 10.00 Lac for Studies in

India and upto Rs. 20.00 Lac for studies abroad
No Security

Collateral security in the form of suitable third party

Guarantee. The bank may, at its discretion, in
exceptional cases, wave third party guarantee if
satisfied with the net-worth/means of parent/s who
would be executing the documents as "joint
borrower"
Tangible collateral security of suitable value, along
with the assignment of future income of the student
For payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of

married person, co-obligator can be either spouse or the parent(s)/ parents-in-law
Margin

For loans up to Rs.4.0 Lac : No Margin

For loans above Rs.4.0 Lac:

o

Studies in India: 5%

Studies Abroad: 15%

Documentation Required

Completed Education Loan Application Form.

Mark sheets of last qualifying examination

Proof of admission scholarship, studentship etc

Schedule of expenses for the specified course

2 passport size photographs

Borrower's Bank account statement for the last six months

Income tax assessment order, of last 2 years

Brief statement of assets and liabilities, of the Co-borrower

Proof of Income (i.e. Salary slips/ Form 16 etc)

SBI SARAL PERSONAL LOAN:

Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or
foreign travel, medical treatment of self or a family member, meeting any financial liability, such as
marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of
assets etc.)
Eligibility
You are eligible if you are a Salaried individual of good quality corporate, self-employed engineer,
doctor, architect, chartered accountant, MBA with minimum 2 years standing.

Salient Features

Loan Amount
Your personal loan limit would be determined by your income and repayment capacity.
Minimum: Rs.24,000/- in metro and urban centres.
Rs.10, 000/- in rural/semi-urban centres.
Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling
of Rs.10 Lac in all centres.
Documents Required
Important documents to be furnished while opening a Personal Loan Account:
For existing bank customers
Passport size photograph
From salaried individuals
Latest salary slip and Form 16
Margin
We do not insist on any margin amount.
Interest Rates
3.25% above SBAR floating i.e. 15.50% p.a.
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without
attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry.
Processing fees have to be paid up front. There are no hidden costs or other administrative charges.

PROPERTY LOAN:
Purpose
This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount of
loan is Rs.25.00 Lac and above then purpose of loan will have to be specified along with an
undertaking that loan will not be used for any speculative purpose whatever including speculation on
real estate and equity shares.
Eligibility
You are eligible if you are:

A. An individual who is;

a. An Employee or
b. A Professional, self-employed or an income tax assessee or
c. Engaged in agricultural and allied activities.
B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income (others) is
in excess of Rs.1,50,000/-.
The income of the spouse may be added if he/she is a co-borrower or a guarantor.
C. Maximum age limit: 60 years.
Salient Features
Loan Amount
Minimum: Rs.25, 000/Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions including TDS)
OR

2 times the net annual income of others (income as per latest IT return less taxes payable)

Margin
We will finance upto 75% of the market value of your property.
Interest
Term Loan 0.75% above SBAR. i.e.13.00% p.a. Floating
Repayment
Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with checkoff facility. You could opt to divert any surplus funds towards prepayment of the loan without
attracting any penalty.
Security
As per banks extent instructions.
LOAN AGAINST SHARES \ DEBENTURES:
Eligibility
This facility is available to our existing individual customers enjoying a strong relationship with SBI.
This loan could be availed either singly or as a joint account with spouse in 'Either or Survivor'/
'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan.
The facility is available at 50 select centers.

Salient Features:
Purpose
For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to
rights or new issue of shares / debentures against the security of existing shares / debentures. Loan
will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring
controlling interest in company / companies.
Loan Amount
You can avail of loans up to Rs 20.00 Lac against your shares/debentures.
Documents Required
You will be required to submit a declaration indicating:

Details of loans availed from other banks/ branches for acquiring shares/ debentures.
Details of loans availed from other banks/ branches against security of shares/ debentures

Margin
You will need to provide a margin amount of 50% of the prevailing market prices of the shares/ nonconvertible debentures being offered as security. (The market prices refer to the prices in the Stock
Exchanges as reported in the Economic Times.)
Interest
At SBAR Floating i.e. 12.25% p.a.
Repayment Schedule
To be liquidated in maximum period of 30 months through a suitable reducing DP programme.
In case of a default or if the outstanding is over Rs.20.00 Lac, the shares/debentures will be
transferred in the name of the Bank.
Security:
Pledge of the Demat shares/debentures against which overdraft is granted.

Statement of THE problem

 SBI Regional Branch, Gurgaon, wants to know about the customer perception about the
advance product provided by them.
To find out the preferences of the customers in lieu of similar loan advancements provided by
competitors.
To pass the applications received by the branch from various customers by checking for
discrepancies and mistakes.
To find out the degree of collateral available to each customer after the application for loan
has preliminarily passed.
Knowing, acknowledging and suggesting the needs for the advance product offered by the
SBI Branch.
Processing and screening of final loan application.
Providing support by assistance in smooth fulfillment of all loan related queries and
obligations.

SCOPE OF INTERNSHIP
WEEK 1-2
DESK JOB

 Receiving customers interested in advance product and providing them

with the application form.
Explaining the details regarding filling up of the application, its
submission and further processing.
Persuading the customer to apply for loan only at the most trusted bank of
India i.e. SBI.
After initial submission, screening the applications for any mistakes or
discrepancies.
Calling up the customers with errors in the application form, and
requesting them to rectify the same.
Reaching out to the customers whose applications have been cleared post
screening, but pending collateral check-up.
Fixing the time and date for house visit as per the convenience of that
particular client or customer.

WEEK 3-6
FIELD VISITS
Number of visits per day: 5-7
Calling up and confirming the meeting for the pre-arranged time.
Traveling to customers house for completion of documentation for
collateral assurance.
Assistance to senior agents with documentation and other necessary
filing.

 Writing the review after the visit to site of collateral secured for nonpayment of loan within the stipulated time.
Closure of details in the database and confirming another meet for
further clarification and paper work.
Assuring the customer regarding fast approval and timely delivery of
loan.

GEOGRAPHICAL FEASIBILTY

The geographical scope of the study is restricted to Gurgaon only, with a sample size of 200
customers.
All the interpretations and suggestions are based on the analysis of the both primary and secondary
data.
Therefore the scope of the study revolves around the following aspects:

Consumer perception towards Advance Product

Consumer awareness regarding Advance Product scheme and its benefits.
Forward the feedback to the Bank about customer problems, especially in case of automobile
sector.

Analysis and Interpretation of Data

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank do you depend for your regular transactions?

( )

No. of People
SBI

60 % (120)

ICICI

33 % (66)

HDFC
OTHER

5% (10)
2% (4)

TOTAL NO. OF PEOPLE

200

RESPONSES OF PEOPLE IN %
5% 2%
SBI

33%

ICICI

HDFC

60%

OTHER

It has been observed that approximately 60% correspondents are using the services of SBI for their
daily transaction, around 33% of people are using ICICI Bank for their transaction and only 5% &
2% of people are using HDFC & other Bank service respectively in Gurgaon. It also shows that SBI
have the highest market position in Gurgaon as per my sample.

Q2. Are you aware of products & services provided by SBI?

YES

85% (170)

NO
Total No. of People

15% (30)
200

NO; 15%

YES; 85%

From the above data it is clear that most of the customers (around 85%) of Gurgaon have the idea
about the product & services of SBI, the rest 15% have the idea about the product they are using. In
this 15% most of the people are from typical rural areas (Farmers).

Q3. If yes are you aware of the advance products (Loan segments) of SBI?

YES

95%(190)

NO

5% (10)

TOTAL NO. OF PEOPLE

200

% OF PEOPLE
5%
YES
NO
95%

It is clear that most of the people have the idea about the advance product of SBI. Almost all the 95%
people who have the idea about the advance product are the users of other SBI products & services.

Q4. Which bank do you prefer for taking loans?

85% (180)
SBI

ICICI

7% (14)

HDFC

2% (4)

OTHER

1% (2)

TOTAL NO. OF PEOPLE

200

Sales
12% 2% 1%

85%

SBI
ICICI
HDFC
OTHER

According to my sample size, 85% people prefer SBI for loan, but some people prefer ICICI, HDFC
or OTHER Banks for loan because they are working in that bank & find it easier to get loan from
their bank & also pay lesser interest on the services availed.

Q5. If you prefer SBI for taking loan, then what influences you to choose SBI over other
banks?
Most of the people said that they prefer SBI for taking loans because of the transparency and the
lowest interest rate for any kind of loan product. And it is easy to get loan from SBI as compared to

other banks because of less paper work and it being the largest government bank in India with long
distance partnership with the RBI (Reserve Bank of India) and other associations.
Q.6 Which loan product of SBI you have used?
HOME LOAN

47% (28)
20% (12)
15% (9)
10% (6)
8% (5)
60

EDUCATIONAL LOAN
CAR LOAN
PERSONAL LOAN
OTHERS
TOTAL NO. OF PEOPLE

Sales

10%

8%
47%

15%
20%

HOME LOAN
EDUCATIONAL
LOAN
CAR LOAN
PERSONAL LOAN
OTHER

From the sample size 85% of people are using the SBI loan product. From 60 people 47% of people
took home loan from SBI. 20% of them took education loan for their children, 15% of took car loan
from SBI. Some of the customer took 2 types of loans from SBI such as both car & educational loan
or home & car loan.10% of the people took personal loan.

Q7. What do you feel about the services provided by SBI in its advance product?

Bad

0% (0)

Satisfactory

2% (4)

Good

55% (110)

Excellent

43% (86)

TOTAL NO. OF PEOPLE

200

CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDED BY SBI IN ITS ADVANCE PRODUCT

2%
43%
55%

BAD
SATISFACTORY
GOOD
EXCELLENT

From this it is clear that the service provided by SBI in its advance product is more than good
according to the customers. All of them are satisfied with the product provided by SBI. 55% of
people said that the service provided by SBI is good & 43% said it is excellent & just 2% of people
said that it was satisfactory.

Q8. What features did you like the most in Loan segments of SBI?

LESS PAPER WORK

3% (6)

ATTRACTIVE INTEREST RATE

35% (70)

TRANSPARENCY

20% (40)

SIMPLE AND FAST PROCESSING

2% (4)

LONGER REPAYMENT PERIOD

40% (80)

TOTAL NO. OF PEOPLE

200

FEATURES LIKED BY CUSTOMERS

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

FINAL CONCLUSION

Findings
Suggestions & Recommendations
Culmination of Report

PROJECT Findings:
From this project it is found that SBI advance product has the 1 st place in the market at
Gurgaon, there is a great opportunity to compete with ICICI Bank & to retain its customer by
fulfilling the requirement of customer in SBI advance product.
It has been observed that approximately 85% correspondents are using advance product of
SBI and 15% are not using any type of advance product of SBI in Gurgaon.
All of SBI customers are satisfied with the services provided by the bank.
Many of these customers satisfied with the low interest rate and longer repayment period of
the advance product.
Most of the customers at Gurgaon prefer to take loan from SBI.
Approximately 43% of advance product users said that the service of SBI in advance product
is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to know about
the service & features of SBI advance product.
Most customers are shifted from other banks advance product to SBI because of hidden
charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance product.

REASONS FOR HIGHER USE OF SBI ADVANCE PRODUCT:

LESS PAPER WORK

ATTRACTIVE INTEREST RATES
TRANSPARENCY
SIMPLE & FAST PROCESSING
LONGER REPAYMENT PERIOD
QUICK PROCESSING

SuggestionS & Recommendations

Recommendations:

 Customer awareness program is required so that more people get attracted towards the
advance product.
If there are any kind of hidden charges, then that must be disclosed to the customer before
going ahead with the loan.
SBI must take some steps so that customers could get their loan in time. Regular phone
verification through customer care must be done for redressal of queries .It must be done
before a certain date so necessary steps can be taken.
SBI should be more concerned about physical verification rather than phone verification so as
to avoid frauds and cheats.
Advance product selling agents must not give any wrong information regarding the details of
the loan offered.
For better services, new and innovative offers should be introduced.
SBI customer care should be more concerned about the faster settlement of customer
grievances.
Before deducting or charging any monetary charge, SBI must consult the customer.
Agents should be trained, well educated & properly motivated to convince potential
customers about different advance products.
It is the duty of the bank to disclose all the material facts regarding advance product, like
interest rates, repayment period, other types of charges etc.
Special schemes should be implemented to encourage both customers and agents.
The bank could increase the period for repayment of loan.
SBI should focus more on retaining existing customers.
SBI must focus on Segmentation based on customer knowledge. Product should be based on
customer demand.
SBI must take feedbacks from customers regarding features & services on a regular interval.

Suggestions given by the consumers at the time of survey:

There should be an extended time period for repayment of education loan.

(Namrata Das)
Education loan should be able to provide for private colleges also, which is not under AICTE
or any kind of University.
(Pinaki Bal)
SBI should take steps to solve customer problems immediately.
(Gopinath Mahapatra)*
Agents should be trained, well educated & properly motivated to convince the people about
different advance products.
(P.Anish Nath)*
Loan sanction date should be according to customers convenience.
(Joytirmaya Behera)
A customer awareness program should take place in rural areas.
(Aakash Sahu)
*SOME NAMES CHANGED ON CUSTOMERS REQUEST

FINAL CULMINATION

From the analysis part it can be concluded that customers show a good response towards SBI
advance products in Gurgaon. SBI is at 1st position having a large number of customers who are
satisfied with the services provided to them. The bank has a wide customer base, so the bank should
concentrate on retaining those customers.
In present scenario, SBI is the largest advance product issuer in India. Within a very short period of
time, the achievement made by SBI is excellent. It happened due to employees dedication towards
the organization, fastest growing Indian economy & brand image.
To be the largest advance product issuer, SBI should focus on

Launching Innovative products.

Customized advance products.
Better customer services.
Faster customer problem solving techniques.
Customer retention.

Questionnaire
Name - _____________________________________
Occupation-__________________________________

Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by SBI?

a) YES
b) NO

Q. If yes are you aware of the advance products (Loan segments) of

SBI?
a) YES
b) NO

Q. Which bank do you prefer for taking loans?

a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)
Q. If you prefer SBI for taking loan than what influence you to take
Loan from SBI?
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
__________________________________________________.

Q. Which loan product of SBI you have used?

a) Home Loan
b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans, Specify ( ______________ )
Q. What do you feel about the services providing by SBI in advance product?

a)
b)
c)
d)

Bad
Satisfactory
Good
Excellent

Q. Which features you like most in Loan segments of SBI?

a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose an EMI base loan or an overdraft
f) Longer tenure lone for ease of repayment
g) Specially design product for self employed
h) Any other feature, specify ( _____________ )
Q. Any suggestion you want to give for the betterment of SBI advance
product.
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
________________________________________________________.

Text Books:
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.
New Jersey: Prentice Hall
Wilson A. (2003), Marketing Research: An Integrated Approach
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition

Internet:

www.google.co.in
www.sbi.com
www.sbi.co.in
www.bnet.com