yogesh nivrutti padekar project report

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A

PROJECT REPORT

ON

STUDY OF LOANS & ADVANCES IN BANK

At

THE MAHANAGAR CO-OP BANK LTD.

(NASHIK ROAD BRANCH)

TOWARDS

Partial Fulfillment of the Requirements

For

The DegreeOf

Master of Business Administration

Submitted

To

Tilak Maharastra Univesity Pune

By

PADEKAR YOGESH NIVRUTTI

PRN: - 2050805588

Under the Guidance of

Prof. Pramod Gaikwad

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CERTIFICATE OF THE COLLEGE (Dont print)

Certificate of organization( dont print)

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DECLARATION

Padekar Yogesh Nivrutti here by declares that this report is a result of my intensive study

during a period of 60 day at The Mahanagar co-op Bank Ltd. Nasik Road, Nashik . This work is

an original one and has not been submitted earlier either to this university or to any other

institution for fulfillment of the requirement of a course of study to the best of my knowledge.

Date:

Place: - Nashik Name: - Padekar Yogesh Nivrutti

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CERTIFICATE BY THE GUIDE

This is to certify that Yogesh Nivrutti Padekar. has completed the Project Report On

Branch Banking. The Mahanagar Co-op Bank Ltd, Nashik Road. under my guidance and

supervision, and submitted the Report as laid down by The Tilak Maharastra University, Pune.

The material that has been obtained from other sources is duly acknowledged in the report. It is

further certified that the work or its part has not been submitted to any other University for

examination under my supervision. I consider this work worthy for the award of the degree of

Master in Business Administration.

Prof.Pramod Gaikwad

Date:

Tilak Maharastra University Pune

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ACKNOWLEDGEMENT

I want to express my sincere gratitude to my Institute and Director Prof. Pramod

Gaikwad who has provided me with an excellent opportunity to achieve the most cherished goal

in my life that is Study On BRANCH BANKING Under the able guidance of

Mr. Pramod Gaikwad.

I acknowledge my gratitude tothe people who gave their support, encouragement at the

times when I needed. I express our sincere thanks to all other staff members for continuous

guidance in the project period in the huge organization without theirprecious direction, valuable

guidance and critical scrutiny this report could have notbeen completed.

Yogesh N. Padekar

MBA-II Year

Finance Specialization

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CONTENTS

Topic Page

1. INTRODUCTION 9

1.1 History of Banking. 10

1.2 Introduction of the study. 16

1.3 Objective of the study. 19

2. RESEARCH METHODOLOGY : 20

2.1 Primary and Secondary data and its sources. 21

3. PROFILE OF THE ORGANIZATION : 22

3.1 Introduction Of the Organization. 23

3.2 Products of the organization. 27

3.3 Flow Chart Of Organization. 29

4. COLLECTION & PRESENTATION OF DATA

OF THE STUDY UNDERTAKEN. 30

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4.1 Secured Loan. 31

4.2 Unsecured Loan. 44

5. ANALYSIS & INTERPRETATION OF DATA. 47

6. FINDING. 53

7. SUGGESTIONS. 55

8. CONCLUSION. 57

9. BIBLIOGRAPHY. 59

APPENDICES.

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CHAPTER- 1

INTRODUCTION

1.1 HISTORY OF BANKING

A Bank is an institution, which is engaged in the business of accepting deposits

and giving loans & Advances.

Bank accepts deposits from various peoples, institutions that have surplus funds

and advance the loans to those who need them. Thus, the main function of bank is to

accept deposits by mobilizing the savings and give loans & Advances to needy people for

different purposes. There are different definitions stated by different authorities, which

make the nature and important functions of bank very closer.

Definition of Bank:-

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Definition By The Indian Regulation Act 1949

This act defines a banking company under section 5c as a company, which

transacts business of banking. This definition makes it clear that bank can be defined only

with reference to the business, which goes with the term banking. The act also define the

term banking in section 5b according to which

Banking means acceptance, for the purpose of lending or investment of deposits

of money from public repayable on demand or otherwise, withdrawal by Cheques, Draft,

Order or otherwise.

Definition by Prof. R.S.Sayers

A Bank is an institution whose debts, usually referred to as bank deposits are

commonly accepted in final settlement of other people debts.

Concept Of Banking:-

We have understood the meaning & scope of the term Bank in the light of the various

functions that a bank performed today. But the present character of a bank has evolved

through time. It is therefore, necessary to follow this process of the evolution banking.

According to one view, the English word bank owes its origin to the Italian words Banco,

Bancus, Banque or Banc. All these words means a Bench upon which the mediaeval

European moneylenders & moneychangers used to display their coins. The Jews in

Europe practiced this business. These Jews possibly flourished most in Italy in the early

years; & hence the Italian word came into vogue. In England, Banking as an independent

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business dates back to the fourteenth century. In those days the Jews of Lombardy, in

England used to transact their business on benches at market places. One can further

point to a historical fact in support of this view. When a banker was unable to meet his

obligations to his customers, according to the custom, his banco. Were destroyed orbroken to pieces. Hence, the word Bankrupt was derived. Thus it appears that the word

bank is derived from the Italian words bancs, bancus etc.

Here are others however, who trace the word bank is derived from the Italian word

Monte, which means a mound or a heap. This word implies that one requires a heap of

money for carrying on the banking business.

We are obviously not interested in the controversy over the etymology of the word

bank. We are interested in the origin of banking & whichever view is accepted, the fact

remains that this derivation takes banking back to the Middle Ages.

Classification of Bank :-

Bank can be classified on different basis clarity demand that the basis of classification

should be determined first & then classifications should be made. On the basis of direct

dealing with the public, banks can be divided into central & other bank

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A] Central Bank: -

In the banking system of any country, there is a central bank & a number of other

types of banks. Central banks are different from all the other types of banks.

All the distinctive features of a central bank are aptly & precisely summarized in

this quotation. A central bank has the monopoly of note-issue. It acts as bank to the

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government. It acts as a friend, philosopher & guide to all the bank in the country.

Regulation & control of credit is an important responsibility of a central bank. Thus, the

central bank is an apex institution, which stands out as the supreme bank above all other

banks.A central bank does not directly deal with public. It does not accept the public

deposits; nor does it grant loans to individuals. Indirectly, it can help agriculture,

industry, and etc.by augmenting the resources of the other banks

B] Commercial Banks:

Commercial banking is, by far, the most important type of banking, so much sothat the term bank unqualified by any objective, is taken to mean a commercial bank.

Like any other, receipt of deposits & provision of credit are primary functions of a

commercial bank. However, the major part of the working capital with a commercial

bank comes from public deposit. This is why commercial banks are called deposit banks,

because commercial banks have a commitment to return the deposits as & when required

by the deposits or they provide mainly short-term credit.

Thus, for example, British banks do not provide industrial credit, but Japanese

commercial bank provide it. Indian commercial banks are playing an increasingly

important role in agricultural credit. Thus though commercial banks are basically deposit

banks normally providing only commercial credit, they also called as investment banks,

saving banks, etc.

C] Industrial Banks:

Industrial banks as the term indicates specialize in industrial finance. Modem

industries require long-term credit for the expantion of factories & plants. They also

require medium-term loans for the purchases of equipment, import of spares & so on.

The function of making long term investment is left to investment banks .which is

another name for industrial banks. Industrial credit also requires different types of

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banking expertise. An industrial bank maintains this expertise & specialized in this type

of activity.

Thus the role played by industrial banks is very important in planning , promoting

& developing industrial units.

D] Agricultural banks:

Financing of agricultural poses special problem. The credit needs of agriculture are

three fold:

1) Shot term 2) Medium term 3) Long term

1) Short-term credit: Short-term credit is requires for carrying out the day in day

agriculture operations and for the purchase of manure, seeds, etc.

2) Medium term credit:Medium term credit serves the purpose of buying cattle,

etc.

3) Long term credit: Long term credit is require for purchase of agriculture

machinery, for effecting permanent like digging wells, leveling land etc. & for

buying additional land.

Since agriculture is followed as personal or family occupation, the loan virtually

becomes a personal loan. But many times, as in India, the credit worthiness of a

agriculturist is limited.

E] Co-operative banks:

Co-operative bank means a state co-operative bank, a central co-operative society.The primary object of which is to provide financial accommodation to its members &

includes a co-operative Land Mortgage Bank. Director, in relation to co-operative

society, includes a member of any committee or body, for the time being wasted with the

management of the affairs of their society. Primary agricultural credit society is

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distinguished from other societies in that it finances agricultural purpose. Primary co-

operative bank means a co-operative society carrying out banking with a paid-up capital

reserve of more then one lack. With less then one lack it becomes primary credit society.

F] Exchange banks:

Just as traders needs an credit in internal trade, they needs it in international trade

as well. The traders in the field of international trade are import & export trade. They

provide facilities for the remittance of money from one country to another country. They

discount bills of exchange, which arise in international trade. They also issue letters of

credit.

Due to the nature of exchange banking some very big banks dominates this field. These

banks have branches in all the important centers of the world. Now a day, however

commercial banks are also participating in the foreign exchange business in India.

G] Consumer banks:

Consumer banks came in to existence in the U.S.A they became popular these &

then spread to other advance countries, these banks provide credit to consumer for buyingcar furniture & other durable consumer goods. Credit for housing is an important aspect

of these banks. People can borrow money a long term basis from these banks for

purchasing or constructing houses. The repayment of is spread over a long periods in

easy monthly installment.

1.2 Introduction of the study :

A loan is a type of debt. All material things can be lent; this article, however,

focuses exclusively on monetary loans. Like all debt instruments, a loan entails the

redistribution of financial assets over time, between the lender and the borrower.

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The borrower initially receives an amount of money from the lender, which they pay

back, usually but not always in regular installments, to the lender. This service is

generally provided at a cost, referred to as interest on the debt. A borrower may be

subject to certain restrictions known as loan covenants under the terms of the loan.

Loans are given short, medium and long term basis according to the purpose of the loan.

Short term loans are up to a period of 15 months. Medium term loan are up to the period

of 5 years. And Long term loan are above 5 years.

Acting as a provider of loans is one of the principal tasks for financial institutions. For

other institutions, issuing of debt contracts such as bonds is a typical source of funding.

Bank loans and credit are one way to increase the money supply.

Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange

for the promise of a creditor to give another sum of money.

TYPE OF LOAN:

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SECURED LOAN:

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or

property) as collateral for the loan.

A mortgage loan is a very common type of debt instrument, used by many

individuals to purchase housing. In this arrangement, the money is used to purchase the

property. The financial institution, however, is given security a lien on the title to the

house until the mortgage is paid off in full. If the borrower defaults on the loan, the

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bank would have the legal right to repossess the house and sell it, to recover sums owing

to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the

car, in much the same way as a mortgage is secured by housing. The duration of the loan

period is considerably shorter often corresponding to the useful life of the car. There

are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives

the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an

intermediary between the bank or financial institution and the consumer.

A stock hedge loan is a special type of securities lending whereby the stock of a

borrower is hedged by the lender against loss, using options or other hedging strategies to

reduce lender risk.

UNSECURED LOAN

Unsecured loans are monetary loans that are not secured against the borrowers assets.

These may be available from financial institutions under many different guises or

marketing packages:

personal loans

The interest rates applicable to these different forms may vary depending on the lender

and the borrower. These may or may not be regulated by law. In the United Kingdom,

when applied to individuals, these may come under the Consumer Credit Act 1974.

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1.3 AIMS & OBJECTIVES OF THE STUDY :-

The aims and objectives of the study can be summarized under the Following points.

1. The aim of the study is to analyze the different types of loans and studying the

procedure of granting the loans.

2. To secure information regarding the documents required for acquiring the loan

3. To analyze the various types of loan scheme in respect of eligibility, quantum of

finance, security, interest rates, repayment, etc.

4. Aim of the study is to understand the concept of loan under Nationalized banking sector

in the small places.

5. The main objective of the study is to analyze and interpret the data which has given

through financial statements and through the annual financial report of the bank.

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CHAPTER - 2

RESEARCH METHODOLOGY

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Sources of data:

Mainly data is collected from the direct source that is from organization itself.

Thus primary data such as policy particulars, company information is collected from

company itself. The secondary data such as importance of topic and the theory has

collected from the reference books relating to business and finance magazines and

books relating to banking transactions, newspapers, pamphlets and web sites.

The procedure by which researchers go about their work of describing, explaining

& predicting phenomenon are called methodology.

Methodology means a particular set of methods used for collecting the

information pertaining to the objective of the project.

All methods for research are fact finding mission. Methodology is defined as

study of methods by which we gain knowledge, it deals with the cognitive processes

imposed on research by the problems arising from the nature of its subject matter.

1] Secondary data

i. Data available in Bank.

ii. Reference books: - The theoretical part of the project is taken with the help of

reference books.

iii. Internet: - referring various web sites collects the theoretical part, advance details,

current trends.

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CHAPTER -3

PROFILE OF THE ORGANIZATION

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3.1 EVOLUTION OF SBI :

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.

The Imperial Bank during the three and a half decades of its existence recorded an

impressive growth in terms of offices, reserves, deposits, investments and advances, the

increases in some cases amounting to more than six-fold. The financial status and

security inherited from its forerunners no doubt provided a firm and durable platform.

But the lofty traditions of banking which the Imperial Bank consistently maintained and

the high standard of integrity it observed in its operations inspired confidence in its

depositors that no other bank in India could perhaps then equal. All these enabled the

Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also

secure a vital place in the country's economic life.

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Stamp of Imperial Bank of India

When India attained freedom, the Imperial Bank had a capital base (including reserves)

of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores

respectively and a network of 172 branches and more than 200 sub offices extending all

over the country.

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

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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 inthis respect and lead the Indian banking system into the exciting field of national

development.

Today, State Bank of India (SBI) has spread its arms around the world and has a

network of branches spanning all time zones. SBI's International Banking Group delivers

the full range of cross-border finance solutions through its four wings - the Domestic

division, the Foreign Offices division, the Foreign Department and the International

Services division.

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic

network of over 9000 branches (approximately 14% of all bank branches) and commands

one-fifth of deposits and loans of all scheduled commercial banks in India.

The State Bank Group includes a network of eight banking subsidiaries and several

non-banking subsidiaries offering merchant banking services, fund management,

factoring services, primary dealership in government securities, credit cards andinsurance.

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Company profile :

Incorporation Year: 1955

Head Office : State Bank Bhavan 8th Floor, Madame Cama Road,

Nariman Point, Mumbai,400021,

Maharashtra.

Industry: Banks - Public Sector

House : GoI SBI

Chairman: O P Bhatt.

Managing Director Kamal Kumar.

Auditor D P Sen & Co/Khandelwal Jain & Co

Listing Ahmedabad, Chennai, Delhi, Kolkata,

London, Mumbai, NSE

BSE: 500112

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NSE: SBIN

ISIN Demat: INE062A01012

3.2 PRODUCT & SERVICES:

SBI offers Corporate and Retail Internet Banking Products and Other Value Added

Services.

E-Ticketing

Bill Payment

E-Payment

Fund Transfer

Third Party Transfer

Demand Draft

Cheque Book Request

Account Opening Request

Account Statement

Transaction Enquiry

Demat Account Statement

SBI ONLINE SERVICES :

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Online SBI is the Internet banking portal for State Bank of India. The portal

provides anywhere, anytime, online access to accounts for State Banks Retail and

Corporate customers. The application is developed using the latest cutting edge

technology and tools. The infrastructure supports unified, secure access to bankingservices for accounts in over 11,000 branches across India.

The Retail banking application is an integration of several functional areas, and enables

customers to:

Issue Demand Drafts online

Transfer funds to own and third party accounts

Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature

Generate account statements

Setup Standing Instructions

Configure profile settings

Use e Tax for online tax payment

Use e Pay for automatic bill payments

Interface with merchants for railway and airline reservations

Avail DEMAT and IPO services

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3.3 Flow Chart Of Organization :

BOARD OF DIRECTOR

CHAIRMAN

GENERAL MANAGER

BRANCH MANAGER

ASST. MANAGER

CLERK

ATTENDANCE

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PEON

CHAPTER -4

COLLECTION & PRESENT OF DATA

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4.1 SECURED LOAN :

1) HOME LOAN :

SBI has been awarded The Most Preferred Home Loan Provider by AWAAZ

Consumer Awards. SBI home loans give concession on interest rates on GREEN

HOMES under its environment protection program. SBI has different options for loanborrowers such as SBI Flexi home loans provides borrowers a one time irrevocable

option to choose one of the three combinations of fixed and floating interest rates and

also to choose the order in which the fixed and floating rate will be availed. The other is

SBI- Maxgain home loans - earn optimal yield on savings and minimize interest burden

on home loans, with no extra cost. SBI Realty Home loans - purchase a plot of land for

house construction. SBI Freedom Home loans who want to invest in a property

without mortgaging the same. SBI offers SBI Optima additional home loans and SBI

Homeline special personal loans for existing home loan borrowers who have a

repayment record of 3 years, etc.

Owning a piece of land or property is a lifetime dream for every individual. There

are many home loans provider in the market to make your dream come true. But before

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you opt for any home loan provider, you need to consider certain factors related to

property that you are interested in buying and also about the salient features offered by a

home loan provider and also study some Home Loans and Home Insurance FAQs which

helps in applying a Home Loan in India.And the most important thing is you should know about each and every term

related with Home Loans before applying for a Loan. It is always advisable to consult a

home loan expert or consultant before applying for a home loan or purchasing a property.

You can take different types of home loans like Bridge Loans, Home construction

Loans, Home Equity Loans, Home Extension Loans, Home Improvement Loans, Land

Purchase Loans etc for different schemes available in the market. There are different

types of home loans tailored to meet your needs

KINDS OF HOME LOAN

A. Home purchase loans

B. Home improvement loan

C. Home construction loans

D. Home extension loans

E. Home Conversion loans

F. Land purchase loans

A) Home Purchase Loans: These are the basic forms of home loans used for

purchasing of a new home.

B) Home Improvement Loans: These loans are given for implementing repairworks, healing and renovations in a home that has already been purchased.

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C) Home Construction Loans: These loans are available for the construction of a

new home.

D) Home Extension Loans: These loans are given for expanding or extending an

existing home. For e.g. addition of an extra room etc.

E) Home Conversion Loans: These loans are available for those who have

financed the present home with a home loan and wish to purchase and move to

another home for which some extra funds are required. Through home

conversion loan, the existing loan is transferred to the new home including the

extra amount required, eliminating the need of pre-payment of the previous

loan.

F) Land Purchase Loans: These loans are available for purchasing land for

both construction and investment purposes.

Interest & Period Of Loan :

Year Rate of Interest Period Of Loan

1st year 8% 5 to 20 year

Above 2nd year 9% 5 to 20 year

ELIGIBILITY :

Minimum age 18 years as on the date of sanction

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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.

To enhance loan eligibility of customer have option to add:

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.

Expected rent accruals (less taxes, cess, etc.) if the house/ flat being

purchased are proposed to be rented out.

Regular income from all sources.

LOAN AMOUNT :

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

under-

Net Annual Income EMI/NMI Ratio

Up to Rs.2 lacs 40%Above Rs.2 lacs to Rs. 5 lacs 50%

Above Rs. 5 lacs 55%

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MARGIN :

For loan up to Rs 30 lacs : 20%

For loan Rs 30 to 75 lacs : 20%

For loan above Rs 75 lacs: 25%

PROCESSING FEE :

0.50% of Loan amount with a cap of Rs.10,000/-(including Service Tax)

MAXIMUM REPAYMENT PERIOD :

For applicants up to 45 years of age: 25 years

For applicants over 45 years of age: 15 years

SECURITY :

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Equitable mortgage of the property

Other tangible security of adequate value like NSCs, Life Insurance policies

etc., if the property cannot be mortgaged

DOCUMENTS REQUIRED FOR HOME LOAN:

Completed application form.

Passport size photograph.

Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License.

Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax

receipt/Passport / Voters ID.

Proof of business address in respect of businessmen/ industrialists.

Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance

certificate.

Land/ Building Tax paid receipt etc. (as applicable and subject tosatisfaction report from our empanelled lawyer).

Copy of approved plan and approval from the Local Body.

Statement of Bank Account/ Pass Book for last 6 months.

2) EDUCATION LOAN:

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Education loan is for education. Learning for the student which provide or

help high value of subsidiary for the student. SBI, which is actively engaged in

Community Services Banking, also offers education loans to students aspiring to continue

higher studies. SBI Study Loans are sanctioned only to Indian Nationals. A study loan issanctioned for studies both in India and abroad.

A candidate, who applies for a program with prospects of employment, can apply for the

loan. Whether you apply for a graduate, professional or postgraduate program.

Cost for buying books and other necessary items.

Apart from the library, exam or library fees.

The student loan covers school, college or hostel fees.

Caution deposit, refundable deposit and building fund are considered for the

loan. (maximum 10% tution fees for the entire course)

Other expenses, which are mandatory for completing the course, travel

expense.

Maximum cost of Rd 50,000 for buying a 2 wheeler, are taken into account

KINDS OF EDUCATION LOAN :

A) Scholar loans.

B) Loan for students of ISB. (Indian School of Business)

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Year(Period) Rate of Interest Amount Of Loan

Up to 7 year 11.50% Up to 4 lacs

Up to 7 year 13.25% Above 4 lacs

ELIGIBILITY :

Graduation courses/ Post graduation courses/ Professional courses

Other courses approved by UGC/Government/AICTE etc.

LOAN AMOUNT :

For studies in India, maximum Rs. 10 lacs.

Studies abroad, maximum Rs. 20 lacs.

MARGIN :

For loans up to Rs.4.0 lacs : No Margin

For loans above Rs.4.0 lacs:

o Studies in India: 5%

o Studies Abroad: 15%

PROCESSING FEE :

No processing fee/ upfront charges.

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Deposit of Rs. 5000/- for education loan for studies abroad which

will be adjusted in the margin money.


Repayment will commence one year after completion of course or 6

months after securing a job, whichever is earlier.

Studies in India as well as in Abroad is Minimum 5 to Maximum 7

year.

SECURITY :

No security is required for loan amount upto Rs 4 lacs.

A borrower should present a 3rd party as guarantee for a loan amount above

Rs 4 lacs. However, on SBI discretion, this clause of 3rd party guarantee

may be waived off in certain cases.

If you borrow a loan amount above Rs 7.5 lacs, you need to offer a material

collateral security and assign the future income of the student for paying

installments.

The guardians or parents of a borrowing student should secure an education

loan.

If the borrower is married, his or her spouse, parents-in-law or parents can

act as the co-obligator

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DOCUMENTS REQUIRED :

Mark sheet of last qualifying examination for school and graduate studies

in India.

Documents evidencing the duration of course and commencement thereof

viz. prospectus or certificate from the competent authority of theinstitution.

Proof of admission to the course.

Schedule of expenses for the course.

Two copies of passport size photograph of the borrower(s) / guarantor(s).

Statement of Bank account for the last six months of the borrower(s)

Signature identification from bankers of borrower(s) guarantor(s).

A copy of Passport/Voters ID Card/Proof of residence.

For salaried persons

Latest salary slip showing all deductions.

Employment details for the last 5 years.

Latest TDS Certificate Form 16.

Statement of assets and outstanding liabilities.

For Self-Employed/Professionals and Businessmen

Proof of income.

Income Tax/Wealth Tax (if applicable) assessment orders not more than 2

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years old.Assets and Liabilities.

3) AUTO LOAN :

If you have been putting off purchasing that Car, we invite you to go

through our Car Loan Scheme.Low interest rates, easy repayment options, total

transparency. Finance to include vehicle registration charges, insurance, one-time road

tax and accessories.

You can apply for an SBI Car Loan to purchase :

A new car, jeep, Multi Utility Vehicle (MUV) or SUV (any make or model) .

A used car / jeep / MUV /SUV (not more than 5 years old). (any make or model).

KINDS OF AUTO LOAN :

1) Term Loan.

2) Over Draft -a) For New Vehicles Only.

b) Minimum Loan Amount Rs.3 lacs.


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Year(Period) Rate of Interest Amount Of Loan

1 year. 8% For new car.

2 year to 7 year 10% For new car.


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ELIGIBILITY :

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

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

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

assessee.

A Permanent employee of State / Central Government, Public Sector

Undertaking, Private company or a reputed establishment.

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. The loan

amount includes finance for one-time 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 lacs.

MARGIN :

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

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PROCESSING FEE :

0.50% of Loan amount and to be paid upfront.

Minimum: Rs. 500/-

Maximum Rs. 10,000

25% of Processing fee will be ratained if application is rejected after pre-

sanction survey.


For Salaried: Maximum of 84 months.

For Self-employed & Professionals: Maximum 60 months.

SECURITY :

As per bank's extant instructions.


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

passport size photographs of borrower(s).

Signature identification from bankers of borrower(s).

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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/self-employed/businessmen duly accepted by the ITO

wherever applicable to be submitted.

Proof of official address for non-salaried individuals.

4.2 UNSECURED LOAN :

1) PERSONAL LOAN :

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.).

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Interest rate : 13 %.

Period : Maximum 4 year.

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.

LOAN AMOUNT :

Minimum :

Rs.24,000/- in metro and urban centre.

Rs.10,000/- in rural/semi-urban centre.

Maximum :

10 lacs in all centre.

MARGIN :

Do not insist on any margin amount.

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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

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CHAPTER -5

ANALYSIS & INTERPRETATION OF DATA

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Under this chapter I have discussed about loans, deposits, and investments. In

which whatever data I have collected from the organization

Interest on loans is the first income of any financial institute or may bank so loan

plays very important role in banking sector. From last three years what are the positionsof loans, deposits, investment and in the State Bank Of India. we can analyze below.

DEPOSITS :-

YEAR AMOUNT AS PER YEAR.

2006-07 3849017460

2007-08 5374039409

2008-09 7420731280

Under this table It has shown the amount as per the year. As per this table the amount of

deposit has increased comparatively last year. The graph has shown in the next page.

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DEPOSITS CHART

3849017460

5374039409

7420731280

0

1000000000

2000000000

3000000000

4000000000

5000000000

6000000000

7000000000

8000000000

2006-07 2007-08 2008-09Year

Amt

AMOUNT AS PER YEAR .


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Deposits means saving a sum of amount in the bank for a fixed period of the time bank

gives the same amount including the interest as per the banks rate of interest.

From last three years the deposits have increased drastically as in the this bar graph in2007 the deposit was 3849017460 and after three years that is in 2009 the deposit is

7420731280. From this bar d diagram we can understand that the bank is increasing its

goodwill in market.

Loans :-

YEAR AMOUNT AS PER YEAR

2006-07 3546862694

2007-08 4167681962

2008-09 5425032042

As loan is very important role in any banking firm. So even of this bank the loan

which has given to the customer is very high comparatively every year. Even in this

graph the amount has shown in thousand and the graph is shown in the next page.

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Under the loan system, the loan amount is given to borrower in one installment and

further drawings in the loan account are permitted.

Getting interest loan is the first and basic income of any bank or financial

institution. So receiving the proper interest on loan is very necessary. For any bank. In

this bank the bank has given the loan very efficiently. In the above table bank has

given the loan in year ended 2006-07 has given 3546862694 And after 3 years 2008-

09 the bank has given 5425032042.

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LOAN CHART

3546862694 4167681962

5425032042

0

1000000000

2000000000

3000000000

40000000005000000000

6000000000

2006-07 2007-08 2008-09

Year

Amt

AMOUNT AS PER YEAR


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Investment :-

YEAR AMOUNTPER YEAR

2006-07 1553937510

2007-08 18950127092008-09 2759539569

under this table I have shown the how much is the investment of the bank in other

financial institute. According to this table the investment has increase in the year end of

the year.

INVESTMENT CHART

1553937510

1895012709

2759539569

0

500000000

1000000000

1500000000

2000000000

2500000000

3000000000

2006-07 2007-08 2008-09

Year

Am

AMOUNTPER YEAR

Investment is very third category of fixed assets. It represents the investments of funds in

the securities of the another companies. They are long term assets outside the business of

the firm. The purpose of such investment is either to earn return or control other

company. It customarily shown in the balance sheet at cost with value shown in the

parenthesis.

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CHAPTER -6

FINDINGS

FINDINGS :

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1. Bank has concentrated only on the part of deposits rather than advances which is the

most important area of the whole banking.

2. For the purpose of attracting the customers bank has undertaken a deposit scheme ofthe higher rate of interest. Similarly Due to high interest on loan many of the consumer

avoid to take loan.

3. As far as banks activities are concern it looks like bank is really working to provide

maximum customer service which is one of the most important object of any bank, so

that object is very well served by the bank.

Thus banks social images is well settled. Goodwill which is the most precious asset,

is with the bank even the financial growth of the bank is very much satisfactory as the

employees has got the bonus as their salaries.

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CHAPTER -7

SUGGESTION

Suggestions:

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CHAPTER -8

CONCLUSIONS

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CONCLUSION:-

1) The study of the project reveals that The SBI Bank were in the analysis and

interpretation of the project states that the bank provides various types of loans and advances to

the society.

2) As compare to the Government financial organization the SBI Bank had made more

efficient and valuable changes in the facilities which are to be provided to the common people

with less of charges.

3) Different types of loans like personal loan, car loan, house loan, educational loan etc. are

made available by the bank.

4) The overall study reveals that Car And Home Loan are consumed by the people as the

facilities very low interest for this loan.

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ANNEXURE: