Declaration

I,.the undersigned,hereby declare that the Project Report entitled The study on home
loanswritten and submitted by me to the University of Pune, in partial fulfillment of the
requirement for the award of degree of Master of Business Administration under the guidance
of Prof. Mangesh Asawalikar is my original work and the conclusions drawn therein are
based on the material collected by myself.
Place:
Date:

Student name & signature

5. Acknowledgement
"Gratitude is not a thing of expression; it is more matter of feeling."
There is always a sense of gratitude which one express towards others for their help and
supervision in achieving the goals. This formal piece of acknowledgement is an attempt
toexpress the feeling of gratitude towards people who helpful me in successfully
completingof my training.I would like to express my deep gratitude to State Bank of India
(Kankavli branch), the branch manager Mr.S.S.Ukarande, my project guide for their constant
co-operation. They were always there with their competent guidance and valuable suggestion
throughout the pursuance of this research project. Special thanks to our director Mrs. Surya
Ramdas and my college guide Prof. Mangesh Asawalikar who guided me to work honestly
and to give valuable suggestionfor improving my work. Last but not least I would also like to
place of appreciation to Credit manager Deepak Garg and all the respondents whose
responses were of utmost importance for the project.Above all no words can express my
feelings to my parents, friends all those persons whosupported me during my project. I
am also thankful to all the respondents whosecooperation & support has helped me a lot in
collecting necessary information.

Introduction

1.1

Introduction to the project

If you are planning to buy a home,then it is debatably one of the biggest financial decisions in
your life. Taking a home loan can involve lots of stress because it requires a lot of investment
of money. Each and every man has a definite goal to become an owner of his own home. This
is the most amusing and stirring point of their lives. Therefore there are many people who
splurge their time in looking for a home loan but they avoid frittering time for exploring their
home loans. In fact getting a home loan is very easy nowadays. There are a lot of public and
private financial sectors which provide home loans to different customers based on their
credit.
There are varieties of home loans which are based on different recent conditions. Different
types of home loans include mortgage loans, home equity loans etc. Home equity loans are
those loans which keep the home surety or a guarantee. In fact, it is also known as second
mortgage. There are different advantages involved in taking a home loan. Such advantage
includes low rate of interest and deduction of taxes. Mortgage loans are classified into two
categories. These categories are conventional or government loans and fixed rate loans or
adjustable rate loans.
The values of homes have doubled sensibly in recent times due to rise in demand and the
rapidly increasing rates of interest for these home loans at the same time.It is really good for
those people who are interested in refinancing their home equity loans so that the home
equity loans save a lot of money for them. In fact, one more added advantage they get is to
pay lower monthly still respected by its competitive private counterparts. Like various other
companies financing for your Home loans, the SBI has developed its own Home loan
policies. The SBI Home Loans have been formulated,especially with the knowledge of the
basic needs of our nations people and are quite thrifty.
The SBI Home loan is available under various schemes and offers attractive interest rates.
1.2 Project Title
My project title is A STUDY ON HOME LOANS.
1.3 Objectives behind conducting this project
1) The main objective of this study is to know the Customers perceptions about home loans
of SBI.
2) To analyse the history of SBI ltd.
3) To know the ideas of customers about home loan products and services.
4) To study the satisfaction level of customers about home loans.
5) To study the problems faced by customers in obtaining the home loans.
6) To study the various aspects of SBI home loan.

1.4 Why you have chosen this company and this project
I have chosen State Bank of India as it is been awarded as 'The most preferred Home Loan
Provider. SBI Home Loan has always served its customers with attentive care and best
offers. It offers different types of schemes for different types of property aspirers.
With improvement in technology and ease in access of internet individual can quickly check
loan eligibility and apply for loan online. SBI, one of the renowned banks in India, is
consistent in providing loans for the eligible candidates. Its exceptional service has built a
substantial reputation among all the home loan-competitors.
I selected this topic because The Indian housing finance industry has grown by leaps and
bound in few years. Total home loans disbursements by banks haveraised which witnesss
phenomenal growth from last 5 years. There are greater numbers of borrowers of home loan,
so by this study we can find out satisfaction level of customers and problems faced by them
in obtaining home loans

1.5 Location
Location of my summer internship project is Kankavli(Sindhudurg)
1.6 Duration of the project
Duration of my project is 60 days (18/05/216 18/07/2016)

Theoretical background

2.1 Introduction to home loan

A mortgage loan, also referred to as a mortgage, is used by purchasers of real property to
raise funds to buy real estate; by existing property owners to raise funds for any purpose
while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's
property. This means that a legal mechanism is put in place which allows the lender to take
possession and sell the secured property ("foreclosure" or "repossession") to pay off the loan
in the event that the borrower defaults on the loan or otherwise fails to abide by its terms. The
word mortgage is derived from a "Law French" term used by English lawyers in
the MiddleAges meaning "death pledge", and refers to the pledge ending (dying) when either
the obligation is fulfilled or the property is taken through foreclosure. [1] Mortgage can also be
described as "a borrower giving consideration in the form of collateral for a benefit (loan).
Mortgage borrowers can be individuals mortgaging their home or they can be
businesses mortgagingcommercialproperty (for example, their own business premises,
residential property let to tenants or an investment portfolio). The lender will typically be a
financial institution, such as a bank, creditunion or buildingsociety, depending on the country
concerned, and the loan arrangements can be made either directly or indirectly through
intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan,
interest rate, method of paying off the loan, and other characteristics can vary considerably.
The lender's rights over the secured property take priority over the borrower's
other creditors which means that if the borrower becomes bankrupted insolvent, the other
creditors will only be repaid the debts owed to them from a sale of the secured property if the
mortgage lender is repaid in full first.
In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few
individuals have enough savings or liquid funds to enable them to purchase property outright.
In countries where the demand for home ownership is highest, strong domestic markets for
mortgages have developed. An alternative to mortgages that meets the requirements
of Sharia (Islamic law), is the Islamic mortgage. Sharia prohibits interest, so Islamic
mortgages are structured to avoid it by using other strategies such as mark-ups of the
purchase price.

2.2 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 an existing loan from other Banks/Housing Finance companies.

2.3 Features

Interest charged on the daily reducing balance

No penalty for prepayments made.
No hidden costs.
All the features of our product, including interest rates, are in the public
domain.
Loan sanctioned within 6 days of submission of required documents.
Option to club income of your spouse and children to compute eligible loan
amount.
Provision to club depreciation, expected rent accruals from property proposed
to compute eligible loan amount.
Provision to finance cost of furnishing and consumer durables as part of
project cost.
Repayment permitted up to 70 years of age.
Free personal accident insurance cover sup to Rs.40 lakhs.
Optional Group Insurance from SBI Life at concessional premium(upfront
premium financed as part of project cost)
Plus schemes which offer attractive packages with concessional interest rates
to Govt.Employees, Teachers, Employees in Public Sector Oil Companies.
Special scheme to grant loans to finance Earnest Money Deposits to be paid to
Urban Development Authority/Housing Board, etc.in respect of allotment of
sites/house/flat.

2.4 The procedure of applying SBI HOUSING LOAN

Eligibility Criteria, documentation required for SBI Home Loan
Home loan eligibility
Salaried
Who is Eligible

People in permanent service

in public or private sector.

Self Employed
Self employed Business men, doctors, engineers,
dentists, architects, CA, CS,
consultants, lawyers
Determined
by income,
current debt, age, retirement
age, number of co-borrowers,
maximum loan to value, etc.

Determined
by income,
current debt, age, retirement
Loan Amount
age, number of co-borrowers,
maximum loan to value, etc.
Borrower Age at Time of Between 21 and 60 (or age of
Between 21 and 65
Sanction
requirement, if lower)
Borrower Age at Time of Upto 60 (or age of
Upto 65
Maturity
requirement, if lower)

Tenure
Interest rate
CIBIL Score, Credit History

Minimum Income

Employment Track Record

Balance Transfer

5 years-20 years
Interest rate is floating:9.35%
Typically, a clean CIBIL
record with a score above
700 is desirable
Some
banks
specify
minimum income to be
eligible for loans
Typical requirement of at
least 2 years in permanent
employment and at least 1
year in current organization,
but this varies on a case to
case and bank to bank basis.
Register your query with
MyLoanCare to check this in
your case.
Minimum 12-18 months
track record of regular
repayment of existing loan

5 years-20 years
Interest rate is floating:9.35%
Typically, a clean CIBIL
record with a score above
700 is desirable
Some
banks
specify
minimum income to be
eligible for loans

At least 2 years in the same

profession with ITR filed

Minimum 12-18 months

track record of regular
repayment of existing loan

SBI Home Loan EMI Lowest EMI Rs. 830 per lakh

EMI is a fixed amount that you pay each month towards the repayment of your home
loan till the end of tenure
SBI home loan EMI calculator helps you to calculate your monthly EMI at different
rate of interest and also check lowest EMI per lakh on home loan.
You can plan your loan amount according to your monthly repayment capacity
because higher the loan amount, higher will be the EMI
Rate of interest is an important factor which affects your EMI. Higher the interest
rate, higher will be the EMI
Loan tenure matters equally as higher tenure reduces your EMI

Charges and Fees on SBI Home Loan

Sr.No
Type
1
Prepayment charges
2
Processing charges

Charges
Nil for floating rate loans
0.35% of the loan amount +
tax; Minimum rs.2000

Charges
Loan Amount
Upto Rs.25 lacs
Above Rs.25 lacs to Rs.75 lacs

Processing fee
0.35% of loan amount i.e. Minimum Rs.2000
Rs.6500

Above 75 lacs

Rs.10,000

Security:
Primary: The loan will be secured by equitable/registered mortgage of land and building/flat
for which the loan is to be sanctioned.
Collateral: Liquid securities of adequate value in the form of life insurance policies, govt.
Promissory notes, shares/debentures, gold ornaments as may be deemed appropriate, may be
pledged by customer in lieu of mortgage of residential property financed by bank.
Interim security pending mortgage: wherever creation of mortgage is likely to be delayed for
any kind of valid reason, suitable security including third party guarantee, as considered
necessary may be taken for interim period.
Utilization of loan:
The amount of loan shall be utilized strictly for the purpose detailed in borrowers application
form and in the manner prescribed.
Insurance:
The house/flat shall be insured comprehensively for the market value converting fire, flood,
earthquake etc.in the joint names of the bank and the borrower. Cost of the same shall be
borne by the borrower.
Inspection:
The bank will have the right to inspect, at all reasonable times, the borrowers property by an
officer of the bank or qualified auditor or a technical expert as decided by the bank and the
cost thereof shall be borne by the customer.
Repayment period:
Maximum 30 years or upto the age of 70 years (the age by which the loan should be fully
repaid)of the borrower,whichever is early.
Moratorium period(Repayment holiday):
The moratorium period is included within the maximum repayment period.
SBI housing loan eligibility based on LTV
Loan amount
Upto 30 Lacs

Maximum LTV
Upto 90% of property value

Rs. 30 lacs to 75 lacs

More than 75 lacs

Upto 80% of property value

Upto 75% of property value

SBI Housing Loan - Documents To Be Submitted

To avail Housing Loan from State Bank Of India (SBI), one has to submit the personal
related documents and property related documents:
Personal Related Documents
List of papers/ documents applicable to all applicants:
1.
2.
3.
4.
5.
6.
7.
8.

Completed SBI Home Loan application

3 Passport size photographs
Proof of identify (photo copies of Voters ID card/ Passport / Driving license/ IT PAN
card / Aadhaar)
Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/Property
tax receipt/ Passport/ Voters ID card)
Proof of business address for non-salaried individuals
Statement of Bank Account/ Pass Book for last six months
Signature identification from present bankers
Personal Assets and Liabilities statement

For guarantor (wherever applicable):

1.
Personal Assets and Liabilities Statement
2.
2 passport size photographs
3.
Proof of identification as above
4.
Proof of residence as above
5.
Proof of business address as above
6.
Signature identification from his/her present bankers
Additional documents required for salaried persons:
1.
Original Salary Certificate from employer
2.
TDS certificate on Form 16 or copy of IT Returns for last 2 financial years, duly
acknowledged by IT Dept.
(*Relaxation may be permitted by AGM (Region) / AGM (RACPC) / AGM (Branch) in the
case of salaried persons, provided sanctioning authority is satisfied about the genuineness of
source, amount and continuity of income confirming repayment capacity of the borrower
over the loan tenor. In all such cases basis for income verification should be properly
recorded in the loan appraisal.)
Where check-off is proposed:
1.
Revocable letter of authority vide Annexure / HL-C
2.
Letter from employers vide Annexure / HL-D
3.
Irrevocable Letter of Authority where applicant himself is Drawing and Disbursing
Officers vide Annexure / HLE

Additional documents required for Professionals/self- employed/ other IT assesses:

1.
Acknowledged copies of 3 years I.T. returns/ Assessment Orders.
2.
Photocopies of challans evidencing payment of Advance Income Tax.
(* photocopies to be kept for our records after verification of the originals with suitable
noting regarding verification of the original by the official concerned)
DOCUMENTS TO BE SUBMITTED FOR SBI HOME LOAN (Property Related
Documents)
Additional documents required when old property is being purchased:
1.
Valuation certificate from a Government approved valuer.
2.
Certificate from the Govt. approved architect/ structural engineer certifying the
condition of the house/ flat.
3.
The condition of the house / flat should be such that the security cover for the Bank's
loan remains unaffected till full repayment of the loan.
Property documents:
1.
Sale Deed, Agreement of Sale, Original share certificate(s) issued by the society.
2.
Copy of approved plan (wherever applicable) of proposed construction / purchase /
extension
3.
Permission for construction (wherever applicable)
4.
Estimate / Valuation Report from approved valuers (Chartered Engineer / Architect) in
respect of the property to be financed (wherever applicable)
5.
Land and Building tax paid receipts, possession certificate, location sketch of property
certified by revenue authorities
6.
Letter of allotment from Housing Board/Society/Private Builder
7.
Original receipts of advance payments towards purchase of flat
8.
Search report / Non encumbrance certificate for the last 13 years from Bank's
advocate.
9.
Original of land tax paid receipt and possession certificate issued by the revenue
authorities.
10.
Original NOC under ULCR Act 1976
11.
Copy of the relative order in case of conversion of agricultural land
12.
Original No objection certificate [NOC] from Housing Society/Builder
13.
Detailed estimate of cost of construction of house
14.
Letter from the builder / society / Housing Board intimating their a/c number and
name of their bankers, for remittance of instalments.
Other documents:
1.
Lawyer's report as per the standard format approved by the LHO concerned.
2.
Valuation report from empaneled valuer as per the standard format approved by the
LHO concerned.
3.
Declaration by the borrower (as per Annexure-A, under SBI Realty) agreeing to
construct the house within the stipulated period in case of loan granted for purchase of plot
of land.
Disbursement:
The loan will be disbursed only on the following conditions:

1. All the security documents prescribed have been executed by borrower/co-applicant (s)/
guarantor/s
2. A valid mortgage (equitable or registered if equitable mortgage is not possible) has been
created in favour of the Bank as per the laws of the State.
3. Wherever creation of mortgage is likely to be delayed for any valid reason, suitable
security including third party guarantee, has been taken for the interim period.
4. The loan will be disbursed in stages where a loan for construction is desired or purchase is
through payment to seller in installments.
5. All necessary statutory compliances are in place. SBI may disburse the quantum of loan in
lump sum or in installments at its own discretion depending on the level of construction of
the House/Flat as acceptable to SBI. SBI will disburse loan amount directly to the
builder/seller/society as the case may be and as requested / specified/ directed by the
customer to SBI at the time of each disbursement. SBI shall not be responsible / liable in any
manner whatsoever for any delay by the customer in providing such request/ specification/
direction to SBI and the customer shall not claim any costs, charges and expenses in any
relation to any non-disbursal by SBI due to any such delay by the customer. The Bank
reserves the right to collect any tax if levied by the State/Central Government and/or other
Authorities in respect of this transaction.
Default:
In the event of default i.e. if the amount due is not paid by due date, the customer will be sent
reminders from time to time for payment of any outstanding on his loan account, by post, fax,
telephone, email, SMS messaging and/or through third parties appointed for collection
purpose to remind, follow-up and collect dues. Any third party so appointed, shall adhere to
the Indian Banks Associations (IBA) code of conduct on debt collection.

2.5 SBI home loan process

Step 1: Self Assessment
Before starting Home Loan Process, visit the website of a Bank or bank itself for the list of
documents required. You may collect list of documents from Branch. If you have already
finalized the property then arrange the property documents as per the list of Property
Documents required by Bank. In this case, Home Loan Process will be fast.
The objective of Self Assessment is to ensure that all documents are in place and to avoid any
future shock during Home Loan Process.
Step 2: Apply for Home Loan

Visit the nearest branch of Bank or you may avail services of bank representative who would
assist you to complete the Home Loan process. Easiest way is to place enquiry on banks
website and they would get in touch with you. Fill the Home Loan Application & Submit all
the documents along with processing fees.
Step 3: Home Loan assessment by Bank
Next step in Home Loan Process is Home Loan Assessment. Bank will evaluate your
application and fix your Loan Eligibility. Some of the factors considered by bank are:
(a) Income
(b) Age
(c) Nature of Job and Job Stability
(d) No of dependents
(e) Existing Liabilities
(f) Repayment Capacity
Bank would carry residence, office and CIBIL verification along with other checks as
mentioned above during Home Loan Process.
Step 4: Property Valuation and Legal Verification
Bank will conduct independent Legal Verification of the property through lawyer. The lawyer
will issue Title Certificate or Legal Verification Report to Bank. A borrower may request for
the copy of this report by paying nominal fees.
For technical assessment, Bank will appoint Valuer who will fix the Fair Market value of the
property. The objective of this exercise is to ensure that appropriate loan amount is approved
against the property.
In case the property you have finalized is already approved by bank, they may not carry the
legal and technical verification again.
Step 5: Home loan sanction
After complete verification,bank will sanction the home loan against Property. A sanction
letter will be issued to borrower. Now the borrower is ready to sign Home Loan
Agreement.Home loan agreement will contain all the terms and conditions related to home
loan. Borrower is also supposed to submit original documents,ECS along with cheques and
other undertaking as per the requirement of the bank to complete Home loan process.
Step 6: Loan Disbursement
After the home loan agreement is signed, Borrower may finalised the date of Property
Registration in coordination with seller. Simultaneously borrower may give written request to
bank for disbursement or demand Letter. Bank will issue DD/Bankers Cheque for property
registration.If property value is more than 20% than you may avail maximum loan equivalent
to 80% of property value subject to your repayment capacity evaluated by bank.

1. In case you are staying in city A and would like to buy a Property in city B. You can
apply for Home Loan is either city A or in city B for property in city B.
2. A CIBIL Score of 750 does not guarantee assured Home Loan approval.Home Loan is
approved based on multiple factors and Perceived Risk Profile of the Potential
borrower.
3. Home Loan approval is solely at the discretion of bank.
4. Stamp Duty & Registration cost is not included in property whereas HFC include the
same in property value. For example, if property value is 50 lacs and Stamp
duty+Registration cost is 5 lacs. Bank will sanction home loan equivalent to 8% of 50
lacs.
5. Home loan process takes anywhere between 10-14 days to complete.
2.6 New SBI Bank Home Loan Interest Rate:
SBI Home Loan not only offers attractive benefits and terms for its home loan options but the
bank also offers low competitive rates on its home loan. As of May 3rd 2016, the interest
rate for SBI home loan stands between 9.35% to 9.40%. The above mentioned rates are
irrespective of the loan amount.
2.7 SBI Home Loan Schemes:
SBI Maxgain Home Loan

Under SBI Maxgain facility, SBI approves your loan as an overdraft and allows you
to operate your home loan account as a saving account. So whenever you have extra
fund with you, you can deposit the amount to the home loan account and the amount will
be considered as temporary repayment to the principal outstanding. Hence, the bank will
charge interest on the actual principal outstanding which is equal to the principal
outstanding less extra fund parked. This extra money in the account can be withdrawn
anytime
You can apply for a minimum loan amount of Rs. 20 Lakh under this scheme
SBI Maxgain Facility
Amount
Upto Rs.2000,000
Above
Rs.2,000,0017,500,000
Above Rs. 7,500,00110,000,000
Above Rs. 10,000,000

Interest
9.45%
9.45%
9.45%
9.7%% linked to 1 Year
MCLR

SBI Flexipay Home Loan

This loan is availed in case you dont want to pay extra loan during the pre EMI
period. You can opt for paying only interest till the full loan is disbursed. You can select
this period on your own up to 36-60 months

Under this scheme, you can apply for a home loan of more than Rs. 20 lakhs and
salaried applicants should be 2 years experienced with an age of 21-45 years. This loan
offers higher eligibility and longer repayment period of 25-30 years with nil prepayment
penalties.
SBI Flexipay Home Loan
Amount
Upto Rs.2000,000
Above
Rs.2,000,0017,500,000
Above Rs. 7,500,00110,000,000
Above Rs. 10,000,000

9.35%
9.35%% linked to 1 Year
MCLR

special offer for female borrower

Amount
Upto Rs.2000,000
Above
Rs.2,000,0017,500,000
Above Rs. 7,500,00110,000,000
Above Rs. 10,000,000

Interest
9.35%
9.35%

Interest
9.3%
9.3%
9.3%
9.3%% linked to 1 Year
MCLR

SBI Realty Home Loan

This type of loan is taken in case you want to purchase a plot for construction of
house. The construction should be completed within 2 years from the date the loan is
availed
You can even take another loan for the construction of house on the plot bought under
SBI Realty loan
The maximum loan amount you can apply is Rs. 10 Crore with a loan tenure of 15
years.
SBI Realty
Amount
Up to Rs.2000,000
Above
Rs.2,000,0017,500,000
Above Rs. 7,500,00110,000,000
Above Rs. 10,000,000

Interest
9.35%
9.35%
9.35%
9.35%% linked to 1 Year
MCLR

special offer for female borrower

Amount
Upto Rs.2000,000
Above
Rs.2,000,0017,500,000
Above Rs. 7,500,00110,000,000
Above Rs. 10,000,000

Interest
9.3%
9.3%
9.3%
9.3%% linked to 1 Year
MCLR

SBI NRI Home Loan

Under this scheme, SBI offers loan to Non Resident Indians (NRIs) or Person of
Indian Origin (PIOs). The applicant should be atleast 2 years experienced with regular
income source. The minimum amount you can apply for is Rs. 3 Lakh.

SBI PAL Home Loan

PAL is Pre Approved Loan. This type of loan is availed when you dont even have
decided the property and your eligibility is calculated on the basis of your income. You
can boldly negotiate with the builder or seller for the cost of the property
The bank gives you a Pre Approved Loan Agreement Letter which is valid for a
period of 4 months. If you submit the property papers within this period then no
processing fee will be charged again
You can apply for a minimum loan amount of Rs. 10 Lakh.
SBI Pal
Amount
Upto Rs.200,000
Above
Rs.2,00,0017,500,000
Above Rs. 7,500,00110,000,000
Above Rs. 10,000,000

Interest
9.35%
9.35%
9.35%
9.35%% linked to 1 Year
MCLR

Special offer for female borrower

Amount
Upto Rs.200,000
Above
Rs.2,00,0017,500,000
Above Rs. 7,500,00110,000,000
Above Rs. 10,000,000

Interest
9.3%
9.3%
9.3%
9.3%% linked to 1 Year

MCLR
SBI Tribal Plus Scheme

This type of loan is valid for tribal/hilly areas in India without any security. You can
apply for this home loan for construction of house, renovation of home or buying a old
home which is not more than 10 years old
You can get a maximum loan of Rs. 10 Lakh for a period of 15 years
SBI Tribal Plus
Amount
Interest
Upto Rs.200,000
9.35%
Rs.2,00,001-500000
9.35%
Rs. 500,001-750,000
9.35%
Above Rs. 750,000
9.35%% linked to 1 Year
MCLR

Special offer for female borrower

Amount
Upto Rs.200,000
Rs.2,00,001-500000
Rs. 500,001-750,000
Above Rs. 750,000

Interest
9.3%
9.3%
9.3%
9.3%% linked to 1 Year
MCLR

SBI Gram Niwas Rural Housing Loan

SBI offers this scheme for semi urban or rural areas which have a maximum
population of 50000 according to 2001 census
can apply for a maximum loan of Rs. 5 Lakh for a period of 15 years
SBI Gram Niwas
Amount
Upto Rs.10000
Rs.10001-20000
Rs. 20,001 - 35,000
Above Rs. 35,000

Interest
9.35%
9.35%
9.35%
9.35%% linked to 1 Year
MCLR

Special offer for female borrower

Amount
Upto Rs.10000
Rs.10001-20000
Rs. 20,001 - 35,000
Above Rs. 35,000

Interest
9.3%
9.3%
9.3%
9.3%% linked to 1 Year

MCLR
SBI SahyogNiwas Home Loan

Sahyog Niwas home loan is provided to the members of self help group in rural areas
who have a good payment record of 2 years
Applicant can get 10 times of the saving amount of SHG to a maximum amount of
Rs. 50,000 per member.
SBI Sahyog Niwas
Amount
Interet
Upto Rs.10000
9.35%
Rs.10001-20000
9.35%
Rs. 20,001 - 35,000
9.35%
Above Rs. 35,000
9.35% linked to 1 Year
MCLR

Special offer for female borrower

Amount
Upto Rs.10000
Rs.10001-20000
Rs. 20,001 - 35,000
Above Rs. 35,000

Interest
9.3%
9.3%
9.3%
9.3%% linked to 1 Year
MCLR

0.3 Company Profile

3.1 Introduction:
State Bank of India (SBI) is an Indian multinational, public sector banking andfinancial
services company. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. As of 2014-15, it had assets of 20.480 trillion (US$300 billion) and more than
14,000 branches, including 191 foreign offices spread across 36 countries, making it the
largest banking and financial services company in India by assets.The company is ranked
232nd on the Fortune Global 500 list of the world's biggest corporations as of 2016.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in
the Indian Subcontinent. Bank of Madras merged into the other two "presidency banks" in
British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India,
which in turn became the State Bank of India in 1955.Government of India owned the
Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a
60% stake, and renamed it the State Bank of India. In 2008, the government took over the
stake held by the Reserve Bank of India.
State Bank of India is a banking be the month and has 20% market share in deposits and
loans among Indian commercial banks.

Seal of Imperial Bank of India

3.2 History:
The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank
of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank
of Bengal was one of three Presidency banks, the other two being the Bank of
Bombay (incorporated on 15 April 1840) and theBank of Madras (incorporated on 1 July
1843). All three Presidency banks were incorporated as joint stock companies and were
the result of royal charters. These three banks received the exclusive right to issue paper
currency till 1861 when, with the Paper Currency Act, the right was taken over by the
Government of India. The Presidency banks amalgamated on 27 January 1921, and the reorganised banking entity took as its name Imperial Bank of India. The Imperial Bank of
India remained a joint stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank of
India. On 1 July 1955, the imperial Bank of India became the State Bank of India. In 2008,
the Government of India acquired the Reserve Bank of India's stake in SBI so as to remove
any conflict of interest because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made
SBI subsidiaries of eight that had belonged to princely states prior to their nationalization
and operational take-over between September 1959 and October 1960, which made eight
state banks associates of SBI. This acquisition was in tune with the first Five Year Plan,
which prioritised the development of rural India. The government integrated these banks into
the State Bank of India system to expand its rural outreach. In 1963 SBI merged State Bank
of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which
SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National
Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired
KrishnaramBaldeo Bank, which had been established in 1916 in Gwalior State, under the
patronage of Maharaja MadhoRaoScindia. The bank had been the DukanPichadi, a small
moneylender, owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a

Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was
the acquirer as its affiliate, the State Bank of Travancore, already had an extensive
network in Kerala.
The new logo of the SBI was actually the aerial view of the Kankaria Lake in Ahmedabad,
Gujrat on 1 October 1971 and was designed by ShekharKammat.
There has been a proposal to merge all the associate banks into SBI to create a "mega bank"
and streamline the group's operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to
six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore.
SBI holds 98.3% in State Bank of Indore . (Individuals who held the shares prior to its
takeover by the government hold the balance of 1.7 %.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will inch very close to the 10
trillion mark (10 billion long scale). The total assets of SBI and the State Bank of
Indore stood at 9,981,190 million as of March 2009. The process of merging of State Bank
of Indore was completed by April 2010, and the SBI Indore branches started functioning as
SBI branches on 26 August 2010.
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank.
3.3 Slogans:

"PURE BANKING, NOTHING ELSE"

"WITH YOU - ALL THE WAY"

"A BANK OF THE COMMON MAN"

"THE BANKER TO EVERY INDIAN"

"THE NATION BANKS ON US"

3.4 Mission:

We will be prompt, polite and proactive with our customers.

We will speak the language of young India.
We will create products and services that help our customers achieve their goals.
We will go beyond the call of duty to make our customers feel valued.
We will be of service even in the remotest part of our country.
We will offer excellence in services to those abroad as much as we do to those in India.

We will imbibe state of the art technology to drive excellence.

3.5 Vision:

My SBI.
My Customer first.
My SBI: First in customer satisfaction

3.6 Values:

We will always be honest, transparent and ethical.

We will respect our customers and fellow associates.
We will be knowledge driven.
We will learn and we will share our learning.
We will never take the easy way out.
We will do everything we can to contribute to the community we work in.
We will nurture pride in India.

3.7 Operations:
SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). SBI has 14
regional hubs and 57 Zonal Offices that are located at important cities throughout India.
3.8 Domestic presence:
SBI has 18,354 branches in India.In the financial year 201213, its revenue was Rs.2.005
trillion (US$30 billion), out of which domestic operations contributed to 95.35% of
revenue. Similarly, domestic operations contributed to 88.37% of total profits for the
same financial year.
Under the PradhanMantri Jan DhanYojana of financial inclusion launched by
Government in August 2014, SBI held 11,300 camps and opened over 3 million accounts
by September, which included 2.1 million accounts in rural areas and 0.88 million
accounts in urban areas.

Main Branch of SBI in Mumbai.

SBI now has one associate bank, down from the eight that it originally acquired in 1959. All
use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name,
followed by the regional headquarters' name:
Associate Banks
State Bank of Patiala (founded 1917)
State Bank of Mysore (founded 1913)
State Bank of Bikaner & Jaipur (founded 1963)
State Bank of Hyderabad (founded 1941)
State Bank of Travancore (founded 1945)
BharatiyaMahilaBank(founded 2013)
The banks which are merged are:
State Bank of Saurashtra (merged 2008)
State Bank of Indore (merged 2010)
The negotiations for merging of 5 associate banks State Bank of Bikaner and Jaipur, State
Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of
Travancore and Bharatiya Mahila Bank by acquire their businesses including assets and
liabilities with SBI started in 2016.The merger of these six subsidiaries was approved by
Union Cabinet on 15 June 2016.The State Bank of India and all its associate banks are
identified by the same blue keyholelogo. The State Bank of India word mark usually has one
standard typeface, but also utilises other typefaces.

State Bank of India Mumbai LHO.

3.9 STRUCTURE AND ORGANIZATION
The Banks Corporate Office is located at Mumbai. Its domestic co-operational area is divided
into 14 Circles, each with one Local Head Office anda few Zonal and Regional Offices. The
Bank is present not just in the majormetropolises of India but has wide reach in the villages
of India. The Bank's topmanagement consists of the Chairman, group executives for National
BankingGroup, Corporate Banking Group, International Banking Group and Associates&
Subsidiaries, and four staff functionaries in charge of finance, credit, Human Resources &
technology management and inspection & audit.Three Strategic Business Units (SBUs) under
the Corporate BankingGroup have been set up by SBI to pay attention to big corporate
customers.Distinguishing features of the SBUs are assimilation of operational planningwith
operations within each SBU, an alert delivery system with suitablespecialist inputs and
focused attention on profitability.The staff and functionaries at various levels have been

delegated higherfinancial powers to ensure quicker decision making in credit areas and
disposalof a large number of credit proposals at operating units' level. A committeeapproach
has been adopted, both at the apex and circle levels, for sanction of large advances and loans.
Keeping this in mind Central Office Credit Committeeand Circle Credit Committees have
been set up to ultimately ensure fasterdelivery. Credit and systemic risk processes have thus
accordingly beenrestructured. Simplified and concise credit appraisal formats have been
designedto ensure improvement in the quality of credit decisions, better quality of assetsand
reduction of Non-Performing Assets or NPA.
3.9 Branches
The corporate center of SBI is located in Mumbai. In order to cater todifferent functions,
there are several other establishments in and outside Mumbai, apart from the corporate center.
The bank boasts of having as many as 14 localhead offices and 57 Zonal Offices, located at
major cities throughout India. It isrecorded that SBI has about 10000 branches, well
networked to cater to itscustomers throughout India.
3.10 ATM Services
As of 31 March 2016,SBI has 49,577 ATMs & SBI group (including associate banks) has
58,541 ATMs.You may also transact money through SBICommercial and International Bank
Ltd by using the State Bank ATM-cum-Debit(Cash Plus) card.
3.11 Non-banking subsidiaries
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd
SBI Factors & Commercial Services Pvt Ltd
SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
SBI DFHI Ltd
SBI Life Insurance Company Limited
SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of
the remaining capital), to form a joint venture life insurance company named SBI Life
Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was
founded with its headquarters in Mumbai.

3.12 PRODUCTS AND SERVICES

Personal Banking
SBI Term Deposits SBI Loan For Pensioners
SBI Recurring Deposits Loan Against Mortgage Of Property
SBI Housing Loan Loan Against Shares & Debentures
SBI Car Loan Rent Plus Scheme
SBI Educational Loan Medi-Plus Scheme
Other Services
Agriculture/Rural Banking
NRI Services
ATM Services
D-Mate Services
Corporate Banking
Internet Banking
Mobile Banking
International Banking
Safe Deposit Locker
RBIEFT
E-Pay
E-Rail
SBI VishwaYatra Foreign Travel Card
Broking Services
Gift Cheques
The State Bank of India provides a wide range of accounts which are easy to open
and use. The bank also allows online operation of the accounts. Any body who
desires to have SBI account can easily open an account. SBI accounts are now
available for all like senior citizens, employed people, students, in short for each
and every citizen of India.
3.13 Employees
SBI is one of the largest employers in the country having 222,033 employees as on 31 March
2014, out of which there were 45,132 female employees (20%) and 2,610 (1%) employees
with disabilities. On the same date, SBI had 42,744 Schedule Caste (19%) and 17,243
Schedule Tribe (8%) employees. The percentage of Officers, Assistants and Sub-staff was

36%, 46% and 18% respectively on the same date Hiring drive: 1,776 Assistants and 1,394
Officers joined the Bank in FY 2013-14, for expansion of the branch network and to mitigate
staff shortage, particularly at rural and semi-urban branches. Staff productivity: As per its
Annual Report for FY 2013-14, each employee contributed net profit of INR 485,000.

3.14 List of competitors

Bank of Baroda
Punjab National Bank
Central Bank
IDBI
Canara Bank
Union Bank
Bank of India
Indian Bank
Syndicate Bank
UCO Bank
Allahabad Bank

3.15 Achievements of the company

State Bank of India ranked 155 in Forbes list of Global 2000 firms in 2014
Business Standard has awarded the Banker of the Year Award to Shri O.P.Bhatt.
'201314
Innovation in Customer Data Management (DWP)
Financial Inclusion (ITRB), Electronic Payment (INB, MB &W, ATM, PSG) and
CRM&BI (DWP)
Best IT adoption
BEST IT Team, CSR and Corporate Excellence
AWARD for change management for managing high scale IT projects.
Asias Best CSR Practices Award2013 Singapore
Asian BFSI Awards2013 Dubai
Indias Most Ethical Companies Award2013
Asian Green Future Leadership Awards2013
SBI was ranked 298th in the Fortune Global 500 rankings of the worlds biggest
corporations for the year 2012.
June 08 Awards & Recognitions CNN IBN Network 18 has selected ShriO.P.Bhatt as
Indian of the Year Business 2007.
Asian Centre for Corporate Governance & Sustainability and Indian Merchants
Chamber has awarded the Transformational Leader Award 2007.
State Bank of India ranked as NO.1 in the 4Ps B & M & ICMR Survey on India's Best
Marketed Banks in August2009.

 Shri Om Prakash Bhatt declared as one of the '25 Most Valuable Indians' By the Week
Magazine for 2009.
State Bank of India has been adjudge The Best Bank 2009 By Business India in
August2009.
It bagged Most Preferred Bank and Most Preferred Brand for Home Loan at CNBC
Awaaz Consumer Awards.
It became the only Indian bank to get listed in the Fortune Global 500 List.
SBI was at the 70th slot in the top 1000 bank survey by Banker Magazine.
It was awarded Golden award for being among the two most trusted banks in India by
Readers Digest.
SBI is ranked 6th in the Economic Times Market Cap List.
SBI ranked as no.1 in the 4Ps B & M & ICMR Survey on India's Best Marketed
Banks (August2009)

Chapter 04 - RESEARCH METHODOLOGY

Definition of research:
The systematic investigation into and study of materials and sources in order to establish facts
and reach new conclusions. In common parlance, research refers to search for knowledge.
The Websters International Dictionary gives a very inclusive definition of research as as
careful, critical inquiry or examination in seeking facts or principles, diligent investigation in
order to to ascertain something.
Research methodology:

Chapter 05-Data interpretation

SBI Loan
process Chart
1.

Appointment for loan

requirement and queries.
Discuss requirement. Get
form and document list.

Who is
involve
d

You
SBI

Document
Application
form,
document list

You

Credit
Document/prope
rty document

Appointment for document

collection. Solve any queries
if any

You

Credit
Document/prope
rty document

4.

Prepare all documents and

fill form

SBI

Sanction letter

5.

After agreement. Submit

property documents and
latest credit document and
processing fee check

You

Credit
Document/prope
rty document

2.

Prepare all documents and

fill form

3.

6.

7.

8.

9.

We will process for

valuation. Search report and

Get verified original documents

in branch.

SBI

SBI

You
SBI

File will be forwarded to

RACPC

SBI

RACPC will process loan and

sanction file

SBI

RACPC will process loan and

10. sanction file

11.

SBI

Loan amount will be

disbursed to concerned by
NEFT or check

Search
report/Valuation
report
Credit
Document

You
SBI

SBI

Property
document

12.Best Bank for home loans

HAPPY ENDING

Graph no.1

Interpretation:
The above graph shows that SBI is the leading and trustworthy bank having issued
42.42% of home loans in the past year whereas HDFC and LIC HOUSING having 2 nd
and 3rd place with 17.55% and 13.43%. Axis bank has issued bit more loans as
comparison with ICICI i.e 4.59%>4.45%. IDBI bank, BOI, and PNB Housing are have
least amount of loans sanctioned that are 2.99%, 2.06%, 1.60%. And other banks
comprise 10.90%. The overall graph represents that SBI is the most preferable bank
with respect to various aspects of loans and have the greater share.

Comparison between different banks on various parameters:

Bank
Name

Floating
Interest rate

SBI - State 9.30% (For

Bank Of Women),
India
9.35% (For
Others)

Per
EMI

lac MCLR
Processing Fee
Rates

Rs.919(Fo 9.10%
r Women),
Rs.922
(For
Others)

ICICI
Bank

9.40%
9.45%

- Rs.926
Rs.929

HDFC Ltd

9.40%
9.45%

- Rs.926
Rs.929

- 8.95%
9.35%

LIC
Housing

9.40%(For
GovtEmp) 9.50%
9.60%(For
Others)

AXIS
Bank

9.40%
11.00%

Bank
India

of 9.70%

Indiabulls
Housing
Finance
Limited

9.40%
10.25%

Rs.926(Fo
r
GovtEmp)
- Rs.932 Rs.939(Fo
r Others)

- Rs.926 - 9.10%
Rs.1032
9.65%
Rs.945
9.25%
9.60%

- Rs.926
Rs.982

Prepaymen
t Charges
Nil

0.35%
for
every
Lakh+Service
tax
or
Rs.
10,000
whichever
is
less
subject
to
minimum Rs
2000
0.50% of loan
amount upto 1
crore
0.5%
or
maximum
10,000+service
tax (14.5%)
Government
Employees Rs
1000 + S.Tax
Others
Rs.2500 (For
Women),
Rs.5000 (For
Others) + S.Tax
1500 Flat with
MLI

%
Change
in last 6
mths
1.52
%

N.A

1.44
%

Nil

1.98
%

Nil

No
Change

Nil

0.25% of loan Nil

amount
Min.Rs.1,000
and
Max.
Rs.20,000/Upto 28 lacs = NIL
Rs.7500
Rs.10000
28 lacs - 1.5 Cr

0.9%
2.45
%

2.46
%

Bank
of 9.65%
Baroda

Rs.942

9.00%
9.45%

Canara
Bank

9.65%

Rs.942

Kotak
Bank

9.35%
9.45%

- Rs.922
Rs.929

PNB
Housing
Finance
Bank
of
Maharastra

9.55%
11.00%

- Rs.935
Rs.1032

9.00%
9.45%
- 8.90%
9.65%
-

9.65%
11.20%

- Rs.942 - 9.10%
Rs.1046
9.65%

Graph no. 2

= Rs. 10000 0.5%

1.5 Cr - 3 Cr =
Rs. 25000 - 0.5
Above 3 Cr 0.5% - 1%
0.25% of loan N.A.
amount
Min.Rs.1, 000
and
Max.
Rs.20,000/-

No
Change

1.96
%
Zero (till
Sep 2016)

10 Nil

0.25% - 0.5%

NIL

0.25% of the Nil

loan
amount
(subject
to
maximum
of
Rs.25000/-)

4.65
%
No
Change
No
Change

INTEREST RATE
9.80%
9.70%
9.60%
9.50%
9.40%
9.30%
9.20%
9.10%

INTEREST RATE

Preference of bank while taking loan:

Bank
SBI
ICICI
HDFC
OTHER BANKS
TOTAL NO OF PEOPLE
Graph no.3

% share
62%
12%
25%
11%
100

BANKS
70%
60%
50%
BANKS

40%
30%
20%
10%
0%
SBI

ICICI

HDFC

OTHER

Interpretation:
The above graph show the preference level of customers while choosing the bank for home
loans. Out of 100 samples 62% of people prefer SBI home loans whereas 25% people choose
HDFC bank. ICICI holders are 12% and other bank preference is 11%.
The states that SBI has created a good image and trust in minds of the people by serving them
with different services.

Home Loan Comparison SBI, ICICI, AXIS

Loan Amount
Interest Rate (%) *
Tenure (months)
EMI
Interest Payment
Total Payment (Principal + Interest)
Discount

State Bank
India
40,00,000
9.35%
240
38,999
5,359,816
9,359,816
0

Actual repayment

9,359,816

of ICICI
Bank
40,00,000
9.45%
240
39,935
5,584,447
9,584,447
95,844

Axis
Bank
40,00,000
9.70%
240
41,288
5,909,009
9,909,009
4,95,450

9,488,602

9,413,558

Difference in actual repayment compared to 0

SBI

Home loan levels of SBI

Year
2011
2012
2013
2014
2015
2016
Graph no. 5

Rs. In cr
89914
102739
119467
140738
159237
190552

128,787

53,742

Rs. In crore
250000
200000
150000

Rs. In crore

100000
50000
0
2011

2012

2013

2014

2015

2016

Interpretation:
The upward going line shows the home loan levels of SBI. In 2011 home loan sanctioned
amounted to Rs.89914 Cr which increased in 2012 up to Rs.102739 Cr. Again in the year
2013 it increased to Rs.119467 Cr. The trend kept on increasing in the year 2014, 2015
and 2016 which amounted to Rs.190552 Cr. It indicates that the home loan customers of
SBI are increasing with the upcoming years.

Graph no.6

Interpretation:
The above chart shows the market share of various banks in the country. It has been seen that
SBI with 25.50% has the leading position followed by HDFC 24.13% giving good
competitions to each other. LIC and ICICI are also having close competitions with each other
having 15.38% and 13.10% of their share. Axis bank is having a greater share of 6.23% as
compared to IDBI home loan i.e.4.67%. PNB is having 4.22% of share and the other banks
have 6.32% of share.

Graph no.7

PROGRESS
70
60
50
40
30
20
10
0

PROGRESS

The decline in growth in 2015-16, however, was not uniform across all the public sector
banks. While some banks have seen a substantial jump in their loan disbursement, there are
others whose performance has been dismal.
Those who top the list include are Oriental Bank of Commerce, Vijaya Bank and United
Bank of India as in the first six months they disbursed more than 60 per cent of the total loans
they gave in 2014-15. On the other hand, Union Bank of India and Bank of India have
witnessed the slowest take-off in disbursement this year. The loans given by these two banks
in the first six months only account for 28.6 per cent and 33.8 per cent respectively of the
loans disbursed by them in 2014-15.
It is interesting to note that State Bank of India, which accounts for almost 30 per cent of the
housing loans disbursed by the public sector banks, witnessed a growth in disbursement in
the first six months. It has already disbursed almost 55 per cent of the amount that it
disbursed last year. Had SBI not witnessed growth, the aggregate disbursement for PSBs
would have declined further.
As a result of growth in disbursement, State Bank of India increased its dominance and the
share of the bank in the aggregate of all public sector banks has risen from 26 per cent at the
end of March 2015 to 29.8 per cent at the end of September 2015. On the other hand, Union
Bank of India saw its share decline from 8.2 per cent in March 2015 to 4.9 per cent in
September 2015.
Over the last few years, the public sector banks have witnessed strong growth in their
disbursement for housing loans. While the aggregate disbursement for the 26 banks in the list
stood at Rs 71,857 crore in 2012-13, the number rose to Rs 1,12,364 crore in 2014-15
witnessing an absolute growth of 56 per cent in the last two years.
In the period between March 2013 and March 2015 the biggest growth in housing loan
disbursement was reported by Uco Bank (250 per cent). This was followed by Canara Bank
and Union Bank of India which reported growth of 205 per cent and 157.6 per cent)
respectively.
On the other hand Bank of Maharashtra has witnessed its loan disbursement decline from Rs
2,159 crore in 2012-13 to Rs 2,013 crore in March 2015.
Experts are of the opinion that since the public sector banks have their presence in the
remotest parts of the country, they are well placed to play an important role in the
governments ambitious mission of Housing for All.

Findings: