Summer Internship

on
“Appraisal for credit proposals for Homeloans ”
in

SUBMITTED TO :- SUBMITTED BY :-
Dr. Savita Chaudhary Juhi Bhura
Overview of the Industry

Banking Industry :-
Lifeline of modern economy
Leader of development
Mobilization of deposits
Disbursement of credit to various sectors
Socio- economic progress of the country
State Bank of India

 Largest and oldest Commercial Bank in India.

Founded in 1806 (Bank of Calcutta).
 The three Presidency Banks were amalgamated to form Im
perial Bank in 1921.
On July 1, 1955 State Bank of India came into existence
by taking over the business of Imperial Bank of India.
Rajnish Kumar is the current Chairperson of SBI.
COMPANY PROFILE
SBICAP Security (Home Loan)
 The largest provider of Home loans in the country
 Helped over 30 lac families to achieve a dream for ow
ning a home
 Values:
Trust, Transparency, Integrity & Excellence
Products and services offered by SBIC
AP Securities (Home Loan)

 SBI Realty Home Loans

 SBI Max Gain Home Loan
 SBI Loan Against Property
 SBI Pal Home Loans
 SBI Her Ghar- Home loans for Women
 SBI Flexi Pay
Credit Appraisal
 Assessment done by Bank before providing funds
 Checks the commercial, financial and technical viability
 To minimize the credit risk associated with the repayment
 the 3 ‘C’ of credit are crucial -
• Character
• Capacity
• Collateral
If any one of these are missing in the equation then t
he lending officer must question the viability of credit.
Concept of Credit Score
 A particular score that is given to a borrower depen
ding on his or her credit history
 This score is provided by credit bureaus who will eva
luate one’s full repayment behaviour and give them a
score
 In India, CIBIL is the leading credit bureau that tak
es care of observing your credit behaviour and prepar
ing a credit report with details of your credit score
.
 The credit score of any loan applicant should ideally
be 750 and above.
CIBIL (Credit Information Bure
au (India) Limited)
 Credit Information Company
 Incorporated in 2000.
 CIBIL Score, India’s first generic risk scoring mode
l for banks and financial institutions, was introduce
d in 2007.
 To bring transparency in the credit space.
 Scores determined are known as CIBIL Score.
Factors Evaluated During a Cre
dit Appraisal Process:
A lender’s credit appraisal process will typically check and evaluat
e the following important factors:
 Age & Income
 Repayment ability
 Present and former loans
 Nature of employment
 Other monthly expenses
 Future liabilities
 Previous loan records
 Tax history
 Financing pattern
 Assets owned
Submission of Documents
 Proof of Identity.
 Proof of Address.
 Proof of Income.
 Proof of employment.
 Proof of Credit Worthiness (CIBIL).
 Proof of Investments.
Objectives
 To get a basic of products, principle investment, pl
ayers and functioning of the home loans.
 To know the regulatory framework for SBI Home loans.
 To learn about credit appraisal of home loans.
 To get a depth study of SBICAP Securities(Home loan
s).
 To understand the current credit appraisal system us
ed in Banks.
 To give detailed explanation about the techniques an
d the process of credit appraisal.
Limitations of the study
 The research was limited only to the Jaipur city so
the result can’t be generalized to the whole market
.
 Since the project has to be completed within a short
period of time the information collected could be bi
ased.
 The sample taken for research was concerned only for
100 customers rather than Thousands of customers sca
ttered around the world.
 Prior appointment due to tight schedule of the resp
ondents
 Findings
Credit appraisal is done to check the commercial, financial & t
echnical viability of the project proposed its funding pattern.

It checks the primary or collateral security cover available fo

r the recovery of such funds.

The assessment of financial risk involves appraisal of the fina

ncial strength of the borrower based on performance & financial
indicators.

Credit is the core activity of the banks & important source of

their earnings which go to pay interest to depositors, salaries
to employees & dividend to shareholders.
Suggestions
 Try to ease the documentation burden on the customer wit
hin the regulatory framework.
 Focus more on process automation for efficient Home Loan
sanction procedure.
 Provide essential training for employees with regular mo
nitoring to be more responsive organization in terms of
service.
 Come up with more innovative and creative ways with emph
asis on social media to advertise home loan product in T
V and newspaper.
  An uninterrupted network system has to be ensured. It w
ill save the officials from much hassle and will save ti
me.
Conclusion

Banking sector is contributing highly to the national econo

my.
SBICAP Security is also making a significant contribution t
o the economy.
After doing a successful appraisal of customer’s credit wo
rthiness and background check, they grant loans.
Verification of land or property to be purchased is also do
ne.
There is a misconception about the occurrence of hidden cos
ts.
Proper advertising and introducing new ideas will definitel
y help to grow.
Thank Y