PROJECT ON

“HOME LOAN Of SBI (STATE BANK OF INDIA)”

MASTER IN BUSINESS ADMINISTRATION (SPECIALIZATION)

SUBMITTED TO TILAK MAHARASHTRA VIDYAPEETH,

GULTEKDI, PUNE. 411037
IN THE PARTIAL OF THE FULFILLMENT OF THE
REQURIREMENTS FOR AWARD OF MASTER IN BUSINESS
ADMINISTRATION OF
(M.B.A)
UNDER THE GUIDANCE OF
KALPANA GHATPANDE

SUBMITTED BY
AARTI BHOR
PRN: 07220004661

1
 Tilak Maharashtra University, Pune
(Deemed Under Section 3 of UGC Act 1956 Vide Notification
No. F.9-19/85 – U3 dated 24th April 1987 by the Government of India.)

Vidyapeeth Bhavan, Gultekdi, Pune – 411 037

CERTIFICATE

This is to Certify that the project titled A Project on Home Loans Of SBI is a
bona fide work carried out by Mr./Ms. Aarti Bhausaheb Bhor a student of Master of
Business Administration Semester 3rdh, Specialization Finance PRN. 07220004661
under Tilak Maharashtra Vidyapeeth, in the year 2014.

Head of the Department Examiner Examiner

Internal External

Date:

Place:

University Seal

2
 TO WHOMSOEVER IT MAY CONCERN
(To be taken on Company’s Letter Head)

This is to certify that Mr./Ms. MBA

Student of Tilak Maharashtra Vidyapeeth, Pune has successfully
completed their project work for award of Master in Business
Administration.

He / She has done the project on “___________________

_______________________________________________”

Company Name

Company Seal

Name:

Designation:

Signature:

3
 Certificate of Internal Guide

(To be given on Center’s Letter Head)

This is to certify that the project titled HDFC Home Loans is a bona fide work
carried out by Ms. Aarti Bhausaheb Bhor a candidate for the award of Master in
Business Administration of Tilak Maharashtra Vidyapeeth, Pune under my guidance
and direction.

Name & Signature of guide

Date: Designation:

Place: Institute:

4
 Acknowledgment

“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 to express the felling of gratitude towards people who helpful me in
successfully completing of my project.

I take this opportunity to thank the Tilak Maharashtra Vidyapeeth of Pune

for giving me chance to do this project.

I would like to extend my sincere thanks to my esteemed faculty guide

Kalpana Ghatpande ma’am of Tilak Maharashtra Vidyapeeth, for his constant
guidance, immense support; motivation, and encouragement which inspired me to
pursue my project with added interest and enthusiasm

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially My Family and Friends who
supported me throughout my project.

5
  EXECUTIVE SUMMRY
In today’s fast paced business environment, banks operating in retail space require a
change resilient vertically integrated value chain for delivering the most competitive
product and services. This need is redefining the boundaries of a bank values chain
creating greater thrust for this value add, right from the lowest end of the delivery
channels. In the loans and advances product space, this requires an integration
strategy right from Sourcing, Evaluation and Servicing to Collections and Recoveries.

The first chapter is the introduction of home loans and it also contains the advantages
and disadvantages of home loan.

The second chapter is about objective, need, scope and limitation of the study.

The third chapter research methodology adopted in preparing this report is mentioned.
It covers research method, research design, source of data, sampling and tools &
technology.

In Fourth chapter, there is a review of literature.

Fifth chapter contains company profile which give a brief idea regarding State Bank
of India. It also contains SWOT analysis of SBI.

The six chapter is of framework of study which includes definition, types and its
unique features of home loan. There is also FAQs of customers regarding SBI Home
Loan.

In seventh chapter there are terms and norms and it contains documentation and
checklist of SBI home loan. It also contains margin money and EMI calculation.

The eighth chapter is data analysis interpretation and presenting which shows the
analysis of data through tabulation, computation and graphical representation of data
collected from serve.

The nineth chapter also deals with the findings, suggestion and conclusion which is
very much important after analysis is made.

The tenth contains questionnaire which help to understand customer perspective and
also helps organization to improve their services to achieve their goals. Eleventh

6
 chapter contains web resources and other resources which helps to get information of
SBI home loan project.

 Index
Chapters Contents Pages

1.1 Abstract 10
Chapter 1:
1.2 The History of Indian Home Loan 12
Introduction
1.1 Advantage & Disadvantage of Home Loan 14

2.1 Objectives 17

2.2 Need of The Study 18

Chapter 2: Objective
of The Study
2.3 Scope of The Study 19

2.4 Limitations of The Study 20

3.1 Research Method 22

3.2 Research Design 22

Chapter 3:
Research 3.3 Source of Data 23
Methodology
3.4 Sampling 24

3.5 Tools & Technology Used 25

Chapter 4: Literature Review 26

5.1 History of SBI 35

5.2 SBI Logo 37

5.3 Vision, Mission & Values of SBI 38

Chapter 5:
5.4 SBI Leadership 39
Company Profile
5.5 Banking Services & Products of SBI 41

5.6 Timeline 43

5.7 Updates in SBI 44

7
 5.8 SWOT Analysis of SBI 47

 Index
Chapters Contents Pages

6.1 Meaning of Home Loan 51

6.2 Types of Home Loan 51

Chapter 6: Framework
6.3 Home Loans Offered by SBI 56
of Study
6.4 Unique Features of SBI Home Loan Products 66

6.5 FAQs of Customers on SBI Home Loan 67

7.1 Documents Required for Home Loan of SBI 70

7.2 Checklists for The Home Loan of SBI 74

7.3 Margin Money of Home Loan 76

Chapter 7: Terms &
Norms
7.4 Moratorium 76

7.5 Guarantor 77

7.6 Equated Monthly Installment 78

Chapter 8: Data Analysis, Interpretation & Presentation 82

9.1 Findings 97
Chapter 9: Micro
9.2 Suggestions 98
Analysis
9.3 Conclusion 99

Chapter 10: Appendix 100

Chapter 11: Bibliography 104

8
 CHAPTER 1
INTRODUCTION

9
1.1 ABSTRACT

Home is a dream of a person that shows the quantity of efforts, sacrifices

luxuries and above all gathering funds little by little to afford one's dream. Home is
one of the things that everyone one wants to own. Home is a shelter to person where
he rests and feels comfortable. Many banks providing home loans, whether
commercial banks or financial institutions, to the people who want to have a home.
Many banks are providing home loans at cheapest rate to attract consumers towards
them. The more customer friendly attitude of these banks, currently offer to
consumers cheapest loan over homes. In view of acute housing shortage in the
country and keeping in mind the social-economic role of commercial banks in the
present times.

The RBI advised banks to encourage the flow of credit for housing finance.
With the RBI reducing bank rate, the home loan market rates nose-diving by 50 basis
points. The ICICI Bank and Standard chartered bank has become the first player in
this sector to announce a housing loan for a 20 years period. No doubt it will enhance
the end cost of the home but it will facilitate people to plan their house over longer
duration now, it has been made easy for a person to buy that dream house which he
dreamt of long ago.

A home loan is a loan taken for buying or constructing a home or to make

improvements to a residential property. You can get a loan from banks and registered
housing finance companies.

The home loan sector in India is the pivotal role player in the growth of the
real estate scenario in India. With tax incentives given to the housing finance sector in
the annual budget of 2001, transactions related to buying and selling of residential
properties increased. Considerably and was much higher as compared to previous
years. Since the new class of buyers are relatively younger set of customers who are

10
more aware about legal documentation and approvals, buyers are now more end users'
rather than investors: the property market India undergoes transformation to align
itself with global standards with an increased emphasis on quality & cost control and
documentation methods. In the current economy of India, the real estate sector has the
maximum propensity to generate income and demand for materials, equipment and
services. It can be said that housing finance companies were formed for co-existing
with buyer's requirements of housing loans for investing in properties. Home loans are
made available by financial institutions to both Indian and NRI customers at floating
and fixed rate of interest and also at attractive EMI options

The realty boom in India has given a new dimension to the finance sector in
India - both in Home Loans and Home Insurance segments. This has not only given a
competitive edge to the finance companies to provide attractive options to customers
but has also contributed to the increased investments in the real estate sector. This has
resulted in 13 new institutions foraying into the housing finance business in the last
three years.

11
1.2 THE HISTORY OF INDIAN HOME LOAN

Home loans in India have made people buy property in India despite rising
prices Today we find considerable real estate investment in India, either in residential
property in India or commercial property in India Home loans in India are disbursed
by many banks as Loan Banking is one of India's most important financial services
functions. Land dealers and real estate agents in India consultation so we can buy
apartment in India at a reasonable mortgage rate It's not an easy task to buy the home
of your dreams. Especially when you are buying a home on loan. Home loan means
you're buying a flat on instalments. In a simpler way, if you want to own a house and
can't afford to pay the lump sum fee, you can pay it monthly.

According to analysts, after the US Federal Reserve's decision to cut its rates
by a significant margin, interest rates on home loans are expected to decline further.

There are a number of companies providing low interest rate cheap house loans.
Loan against existing houses can be used for rehabilitation or expansion else There
are many nationalized banks providing financing for affordable housing India
Housing has collected extensive data to provide you with the cheapest Home Loans
on the market. We've listed all the major housing finance institutions and some of the
top home finance banks that offer the lowest interest rates.

Housing loan situation in India has changed dramatically in the last few years.
It has taken a seat at the front and people look forward to owing their own homes. It is
no longer dream that needs lifelong investment and a hard decision to make. Today
the new home buy loan is much easier to obtain and is much cheaper than previously
available Banks are now everywhere and the schemes are being introduced even in
villages and small towns. Housing loans are also common there, but the building
operation of flats is slow. It would not be wrong to say that there has been a boom in

12
the home loan industry and with this rise there is also a boom in the number of home
loans mortgage brokers in India.

There, too, housing loans are popular, but building flats activity is little slow. It
wouldn't be wrong to say there's been a boom in the home loan market and there's also
a boom in India's number of home loans mortgage brokers with this boom.

The main reason for this home loan sector boom is a change in government
policy. It is the inspiration of our government that the interest rates for home loans in
India huge fell considerably. Lots of banks offer home loans, which are available at
low EMIS (Equated Monthly Instalments). High EMIS is now a thing of the past
Today's loan rate is between 7:5 and 15 percent.

There are various types of home loans available today, once again. The
interest rate is not set and the client is passed directly to the person taking the loan as
the interest rate goes up or down. The floating interest rate has been a favourite
among the majority of people taking home loans in the last few years.

There is also an increase in opting for a home build loan. This loan is available
to those who wish to build their homes to suit their needs and tastes. In other words,
this loan is intended for those who wish to build their new home themselves.

Taking a loan is not a difficult task, as a mutual cartier. Until taking a loan,
though, one has to understand that the relationship with the bank is typically 15 to 20
years for a longer period, so one has to guarantee the bank's confidence and honesty.
Apart from low interest rates, the bank should also provide some value-added services
Another thing to look at is the properties to be brought in. Making sure that the
contractor has all the licenses and the construction facilities are very necessary.

Taking home loans has become simpler these days with the RBI regularly
bringing down interest rates, taking home loans has become extremely easy. Housing
loans of 16.5 per cent to 18 per cent decreased to 13 per cent by 11.5 percent a few
years ago with interest rates dropping, increasing numbers of people are applying to
take out these loans. Some of India's leading banks that offer home loans, including
ICICI Bank, IDBI Bank, HDFC Bank of Baroda, SBI, Standard Chartered Bank and
Axis Bank.

13
1.3 ADVANTAGE & DISADVANTAGE OF HOME LOAN

 Advantage of Home Loan

1.Attractive Interest Rate:

The different banks offer competitive interest rates in order to raise and
support their customers. Most banks offer loans at fixed or floating rates in order to
encourage customers according to their needs.

2.Help in The Ownership of a House:

The house was used by an individual with the support of banks as they provide
technical and financial assistance to customers in their dream home.

3. No Requirement of Guarantor:

Now a day, commercial banks liberalize their home loan rules. Some of the
banks do not even demand that the guarantor give their customers loans. They have
set consumers free by reviving him to find a guarantor to complete the loan
proceedings

4.Door Step Service:

Such door-to-step services are provided from the enquiry stage to the final
disbursement of such services in present busy life are beneficial to customers. Banks
such as ICICI bank and standard Chartered bank offer customers door-to-step services
to borrow loans

5.Loan Period:

There are many banks that provide fixed loan tenures up to 15-20 years based
on the amount of the loan and the Customers trust. This relieves customers from
paying back loan amount until a long period of time.

14
 Disadvantage of Home Loan:

1. Delays in Processing:

Most times, there are huge delays in the issuance of home loans as various
requirements have to be met in this process due to these delays.

2. Fluctuating Interest Rate:

Some banks at floating rates give home loans, which for some reasons
fluctuate at different intervals. Sometimes these changes will lead to higher
interest rates, which will increase the cost of home loans to customers.

3.High Cost:

Public sector banks are charging high processing costs for sanctioning
home loans. To order to meet the criteria, they are forced to pay serious charges at
different stages. Many buyers are unable to pay these fees so these people could
not take advantage of the benefits of home loan schemes.

4. Problem in Disbursements:

There are many issues regarding disbursement of the amount of home

loan. Due to legal formalities there is some pause in disbursing the amount of the
loan to the customers. This causes the clients problems.

15
 CHAPTER 2

OBJECTIVE OF THE STUDY

16
2.1 OBJECTIVES

 To study and learn the various systems and procedures used by the bank in
lending to housing sector.

 To identify the problems faced by the bank in attracting more customers to use
its home loan products.

 To analysis the history of SBI.

 To identify the problems faced by the bank at various stages of undertaking

the home loan.

 To understand and identify difficulties in the home loan asset management

practices of the bank.

 To find out overall customer satisfaction level on housing loans in the bank.

 To study the valuation of collateral security method followed by the bank

while lending the home loans.

17
2.2 NEED OF THE STUDY

 To study the roles of the staff and the decision making processes in lending to
the home loan borrowers.

 To learn and comprehend thoroughly the systems and Procedures used in

financing the segment.

 To analyse the issues relating to various financial aspects of lending.

 To calculate the risk involved and how the risk and uncertainty to be assessed
and managed by the bank while lending the home loan.

 To study the valuation of collateral security method followed by bank while

lending the home loan.

18
2.3 SCOPE OF THE STUDY

 Company has experienced drastic changes over the past 5 years due to many
policy decisions relating to capital market, banking sector & licensing policy.

 The research is confined to only SBI bank this study is primarily concerned
with individuals who are interested in taking home loan from banks to fulfil
their dreams.

 The study of applies primarily to all loans provided by SBI banks only.

 The present study is confined to home loan product offered by the domestic
operations of SBI.

 The study is also confined to the internal functional and operational aspects of
the lending Process.

19
2.4 LIMITATIONS OF THE STUDY

Some of the limitations of the project that were encountered during the study are:

 In case of interaction with the representative of a particular bank it happens

many a time that the representative cannot disclose all the data because of
certain reasons like banks privacy policy etc. thus getting clear picture about
the service provided is not possible.

 Due to paucity of time, only important factors have been analysis and
discussed.

 To collect the data from various banks was quite difficult due to non-
cooperation of some banks. This proved to be major limitation of the study.

 To access such a large number of customers was difficult because of non-

cooperative - attitude of respondents

 Lack of data was also the other limitation of the study as some of banks do not
have proper data on topic.

 There was limitation of time to conduct such a big survey in limited available
time. Generally, the data on the websites of the banks are not fully disclosed
i.e. other than the charges mentioned on the website there are many hidden
charges which increases the cost like service charge etc

20
 Ignorance and reluctant attitude of customers was also a major limitation in
this study.

CHAPTER 3
RESEARCH METHODOLOGY

21
 3.1 RESEARCH METHOD

Research methodology is a way to systematically show the research problem.

It may be understood as a science studying how research is done scientifically. It is
necessary for the researcher to know not only the research methods but also the
methodology.

This Section includes the methodology which includes. The research design,
objectives of study, scope of study along with research methodology and limitations
of study etc.

 To know the Customers perceptions about home loans of SBI.

 To study the satisfaction level of customers about home loans.

 To study the problems faced by customers. obtaining the home loans.

3.2 RESEARCH DESIGN

This project is based on exploratory study as well as descriptive study. It was an

exploratory study when the customer satisfaction level was studied to suggest new
methods to improve the service of SBI in providing home loans and it was descriptive
study when detailed study was made for comparison of home loans by commercial
bank.

22
3.3 SOURCE OF DATA

To fulfil the information need of the study. The data is collected from primary as
well as secondary source.

A. Primary Source

I decided primary data collection method because our study nature does not permit
to apply observational method.

In survey approach we had selected a questionnaire method for taking a customer

view because it is feasible from the point of view of our subject & survey purpose.
We conducted 50 sample of survey in our project to judge the satisfaction level of
customers. which took home loans.

A copy of which is made by myself available in the APPENDIX.

 Sample size

For the questionnaire I have taken the sample size of 50 customers of SBI.

B. Secondary Source

Secondary data have been referred for collecting first Hand information.

23
 It was collected from internal sources. The secondary data was collected on the s
basis of organizational file, official records, newspapers, magazines, management
books, preserved information in the company's database and website of the company.

The details which have been presented in BIBLIOGRAPHY.

3.4 SAMPLING

Sampling refers to the method of selecting a sample from a given universe

with a view to draw conclusions about that universe. A sample is a representative
of the universe selected for study.

 Sample Size

Large sample gives reliable result than small sample. However, it is not
feasible to target entire population or even a substantial portion to achieve a
reliable result. So, in this aspect selecting the sample to study is known as sample
size. Hence, for my project my sample size was 50.

The Sample Size consists of both the Professional and Business class people.
IT peoples, Doctors, Jewellers, Timber Merchants & Real estate Agents are taken
as Sample.

 Sampling Technique

Random sampling technique was used in the survey conducted.

24
3.5 TOOLS & TECHNOLOGY USED

 Statistical technique

 Percentage
 Average
 Tools Like
 Tables
 Bar Charts
 Pie Charts

 Hardware & Software Technology

 Home Laptop with Internet Access

 MS Word
 World Wide Web or Internet

25
 CHAPTER 4

LITERATURE REVIEW

26
 Literature Review

Goyal and Joshi (2011) have deduced in their study on Social and Ethical
Aspects of Banking Industry that banks can extend themselves as a social and 5moral
oriented association by just dispensing credits to those social, moral and ecological
concern associations.
Kumar and Gulati (2010) examined at the centrality of the possession on the
Indian local Banks adequacy. Data Envelopment Analysis (DEA), which is a non-
parametric, deterministic and straight programming based system, was utilized to
register open and private division banks effectiveness score. The operational cross-
sectional information of the general population and private area banks amid the
money related years 2005-06 and 2006-07 was utilized and it was found that
(1) De nova private division banks command the development of effective
boondocks of Indian household saving money industry.
(2) Primarily, the entire specialized wastefulness stops from administrative
inadequacy rather than scale wastefulness.
(3) Though the general population and private part banks productivity contrasts
have been noted, in a large portion of the cases these distinctions are measurably
insignificant.
Overall, it is reasoned that industry possession is incapable in the Indian local
saving money industry.
Naveen K. Shetty and Dr. Veerashekharappa (2009) studied the
significance of microfinance in achieving money related incorporation. The paper
concentrates on effect of the expanding hole sought after and supply of money related
administrations in India which has prompted the expanding populace of the nation to
be avoided from the formal budgetary credit framework on housing advance.

27
 Kerry D (2008) broke down, amid the period 1998-2008, there was a sharp
ascent and afterward there was a surprising drop in the home costs. Financial basics
were the fundamental purposes behind these adjustments in home costs. Thusly the
issue was not a result of subprime loaning, but rather emotional diminishments in the
Fed, a short time later amid the early mid-2000 there was an expansion in the rates of
premium; the development of housing was engaged in the business sectors where
there were critical supply-side limitations, that able to be more value unpredictable.
Likewise the issues laid in light of expansion and decline of certain home loan items,
instead of credit lack.

Sendhilvelan and Karthikeyan (2007) RBI has expressed that the

development towards general keeping money ought to have speedier dependability
and proficiency of the budgetary framework, yet without anyone else it cannot give a
viable or feasible answer for the operational issues of individual organizations
emerging from credit capitalization, abnormal state of NPAs vast resources liabilities
crisscross, liquidity and so forth. However in a business sector driven economy to
confront the opposition one variable is the size and subsequently, the passage of
Universal banks is unavoidable for the general monetary advancement of our nation.
There is most likely step by step we are moving towards the administration of a
couple of substantial banks from the administration of numerous little banks. This
illustration is accomplished with the idea of widespread managing an account which
surely fortify the banking sector.

Talwar (1996) in an article on the present saving money situation and the
requirement for an arrangement change, opines that a noteworthy concern tended to
by managing an account segment change is the strengthening of the budgetary
wellbeing of banks. The presentation at prudential standards is better money related
order by guaranteeing that the banks are aware of the danger, benefit of their loan
portfolios.

Boyd (1994) the study closes on rate of interest charged on advances,

enthusiasm on bank accounts, notoriety. All these interest have played an essential
part for customers and money related execution of a bank in business sector.
However, customers likewise mind other criteria, for example, the amount of
agreeableness of representatives, item, online offices, paper work and postliminary.

28
 Spencer (1991) pointed that the significance of bank picture as focused
technique for expanding customer activity stream. Inclination for bank amongst
understudies as supplier of money related administrations, more noteworthy trust in
huge medium estimated banks, significance of customers by work force, focused store
rates and credit accessibility were the key discoveries.

Narasimham Committee (1991) In the most recent two decades different

changes came in the keeping money framework in our nation that were engaged and
highlighted by Narasimham Committee. Till now has progress going on. By this bank
came to know their frail focuses and how to came up. There were numerous angles
which decrease in profitability, effectiveness and gainfulness of a bank framework.
The board of trustees firmly makes changing, solid economy ventures to make Indian
banking framework effective.

Rangarajan (1988) Remarks that division of banks credit for gainful reason
in vital for financial improvement. Banks are more unbending in loaning exercises
and along these lines meriting and poor individuals are not getting budgetary help.
New measures are key to guarantee that advance achieve meriting hands.

Leelamma Kuruvilla (1999) tosses light on National Housing Policy and new
activities in housing money. She proposed that the adjustment in the lawful casing
work, rearranging the strategy for housing money and the dynamic contributions of
the Government in the housing division will moderate the housing issue.

Mathurn (1993) opined that the money related weight of interest in housing is
by and large substantial when the proprietor does not have adequate assets accessible
to pay for the site and the whole cost of development. Consequently, he should make
game plans to acquire reserves from some different sources.

Parekh (1988) reported that the eventual fate of housing fund is to improve
the credit start process for housing all through the nation to build up an institutional
system that would encourage the beginning procedure, to distinguish the potential
asset base for the framework in general and to disentangle the lawful framework as
for danger administration of housing money organizations.

29
 Vidhayavathi. K (2002) in her study evaluated the performance of housing
finance institutions on certain selected business parameters as well as through an
opinion survey over the home loan seekers and concluded that apart from interest rate
advertisement, service quality, courtesy and speed of service are certain other
important dimensions affecting the growth of housing finance industry.

Karthik. G. (1998) in his study about the Housing and Development

corporation and national housing bank argued that profitability and growth of housing
finance in India is largely based on the development and introduction of new schemes
matching the economic profile of the borrowers. This study suggested improvement in
schemes is highly essential for the growth of housing finance in India.

Thirumann. R.M. (1981) attempted to study the role of Co-operative

societies in lending housing finance in Chennai city. The study has covered the
Importance of housing, its components, housing shortage in urban and rural areas the
role of Government, and the role of private and public sector in housing. He also
discussed the problems of housing and housing finance in India.

Usha Patel (1996) clarified that at present housing through bank fund was a
piece of bank's need division loaning. Furthermore, every nationalized bank is relied
upon to designate each year a predefined rate of stores and plan for its arrangement
for financing immediate and also circuitous housing programs.

Pillai Kalathil, S. R. (1996) expressed that it will be fitting for all

administrations and open area housing money association to have a focal pool course
of action of guiding with would be borrowers. Legalities must be rearranged.

Naik (1981) uncovered that housing credits are typically best in class against
the security of home loan of area and the working to be developed with the advance.
Housing fund is along these lines contract account.

30
 CHAPTER 5

COMPANY PROFILE

31
  COMPANY PROFILE

 Formerly : Imperial Bank of India

 Type : Public Sector Undertaking
 Industry : Banking, Financial Services
 Founded : 1 July 1955; 66 Years Ago
 Number of Location : 22,219 Branches,
62,617 ATMs in India,
International: 229
Branches in 36 Countries
 Headquarters : State Bank Bhawan, M.C.

32
 Road, Nariman Point, Mumbai,
Maharashtra, India
 Area Served : Worldwide
 Key People : Dinesh Kumar Khara (Chairman)
 Number of Employees: 2,45,642 (March 2021)
 Parent : Government of India
 Revenue : ₹ 3,85,338 Crore (2021)
 Operating Income : ₹ 78,898 Crore (2021)
 Net Income : ₹ 22,405 Crore (2021)
 Total Assets : ₹ 48,45,619 Crore (2021)
 Total Equity : ₹ 2,74,669 Crore (2021)

 Products : Retail Banking

Corporate Banking
Investment Banking
Private Banking
Credit Cards
Finance & Insurance
Wealth Management
Mortgage Loans

 Subsidiaries : SBI Life Insurance Ltd.

SBI Cards & Payments Services Ltd.
SBI General Insurance (70%)
Jio Payments Bank (30%)
Yes Bank (30%)
Andhra Pradesh Grameen Vikas Bank (35%)
Kaveri Grameen Bank (35%)

 Predecessor : Imperial Bank of India (1921-1955)

33
 Bank of Calcutta (1806-1921)
Bank of Bombay (1840-1921)
Bank of Madras (1843-1921)

 Website : https://sbi.co.in/

 ISIN : INE062A01020

 Online Application : YONO SBI

 State Bank of India Profile

State Bank of India (SBI) is an Indian multinational public sector bank and
financial services statutory. SBI is the 43 rd largest bank in world and ranked 221 st
in the fortune global 500 list of the world’s biggest corporation.

SBI was incorporated on 01st July 1955. It is headquartered in Mumbai,

Maharashtra. It is controlled by the Indian government and maintains a stake of
nearly 60% in SBI through the central Reserve Bank of India also operates the
world's largest branch network, with more than 22,219 branch offices throughout
India, staffed by nearly 2,45,652 employees has on 31st March 2021. SBI is also
present worldwide, with seven international subsidiaries in the United States,
Canada, Nepal, Bhutan, Nigeria, Mauritius, United Kingdom and more than 100
branch offices in 36 countries.

Long an arm of the Indian government's infrastructure, agricultural, and

industrial development policies, SBI has been forced to revamp its operations
since competition was introduced into the country's commercial banking system.
As part of that effort, SBI has been rolling out its own network of automated teller

34
 machines, as well as developing anytime-anywhere banking services through
Internet and other technologies.

The bank has successfully diversified business through its various subsidiaries,
i.e. SBI General Insurance, SBI Life Insurance, SBI Mutual fund, SBI card, etc. It
has spread its presence globally and operates across time zones.

Growing with times, SBI continues to redefine banking in India, as it aims to

offer responsible and sustainable banking solution.

5.1 HISTORY OF SBI

The roots of 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 the Bank of
Madras (incorporated on 1st 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 re-organised banking entity took as
its name Imperial Bank of India. The Imperial Bank of India remained a joint-stock
company but without Gov ernment 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.

35
 In 1959, the government passed the State Bank of India (Subsidiary Banks)
Act. This made eight banks that had belonged to princely states into subsidiaries of
SBI. This was at the time of 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 Krishnaram Baldeo Bank, which had been established in
1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The
bank had been the Dukan Pichadi, 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.

There was, even before it actually happened, a proposal to merge all the
associate banks into SBI to create a single very large bank and streamline operations.

The first step towards unification occurred on 13 August 2008 when State
Bank of Saurashtra merged wikujjkith SBI, reducing the number of associate state
banks from seven to six. On 19 June 2009, the SBI board approved the absorption
of State Bank of Indore, in which SBI held 98.3%. (Individuals who held the shares
prior to its takeover by the government held 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
approached ₹10 trillion. The total assets of SBI and the State Bank of
Indore were ₹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. Mrs. Bhattacharya received an extension of two
years of service to merge into SBI the five remaining associate banks.

36
5.2 SBI LOGO

1. The current logo of SBI was designed by Shekhar Kamat from National
Institute of Design, Ahmedabad. This logo was released on 1st October 1971.
2. On the design, “SBI” legend will be written in a new font called “EFFRA”.
3. The small circle and the vertical line with the blue background suggests a
keyhole, symbolic of safety, security and strength.
4. The white circle in the centre denotes a State Bank of India Branch, the
narrow line denotes the narrow lanes of towns and cities. In other words, a
State Bank of India branch will be there to serve you, wherever you go.
5. The big circular form of the logo suggests unity and completeness. The small
circle in the centre connotes that despite the bank’s size, it is the small man
who holds the centre of the bank.
6. The small white circle in the centre is like a stone thrown in the pond, and
symbolizes that once a deposit is made with the State Bank, it has a ripple
effect and the deposit grows and grows on its own leading to prosperity and
happiness in life.

37
 7. Another interesting aspect of SBI logo is that Shekhar Kamat designed it by
taking inspiration from the Kankaria Lake in Ahmedabad. Just try zooming
into the google maps and you will find the SBI logo.

Slogan of SBI
“Pure Banking, Nothing Else”.

5.3 VISION, MISSION & VALUES OF SBI

Importance of Vision, Mission & Values

Vision, mission and values are the beacon lights by which organization world
over set their strategies and then align their everyday priorities.

Together these statements define the essential organization. Its purpose, its
philosophy and its form.

Vision of SBI
Be The Bank of Choice For Transforming India.

Mission of SBI

Committed To Providing Simple, Responsive And Innovative Financial Solution

38
 Values of SBI

 Service
 Transparency
 Ethics
 Politeness
 Sustainability

5.4 SBI LEADERSHIP

Sr. No. Name Designation

1. Shri Dinesh Kumar Khara Chairman

2. Shri C.S. Setty Managing Director (Retail & Digital Banking)

Managing Director (Corporate Banking &

3. Shri Ashwani Bhatia
Global Markets)
Managing Director
4. Shri Swaminathan J. (Risk, Compliance and Stresses Assets
Resolution Group)
Managing Director
5. Shri Ashwini Kumar Tewari (International Banking, Technology &
Subsidiaries)
Shri Alok Kumar Deputy Managing Director (Finance)
6.
Choudhary
Deputy Managing Director, Compliance,
7. Shri Soma Sankara Prasad
Corporate Centre Mumbai
Deputy Managing Director & Chief Credit
8. Shri Natarajan Sundar
Officer

39
 Shri Sastry S.
9. Deputy Managing Director (Global Markets)
Venkataramana
Deputy Managing Director & Chief
10. Shri Ravindra Pandey
Information Officer

Sr. No. Name Designation

Deputy Managing Director (Agriculture, small

11. Shri S. Salee
and medium enterprises & Financial Institution)

Shri Rana Ashutosh Kumar Deputy Managing Director (Strategy) & Chief
12.
Singh Digital Officer

Deputy Managing Director & Chief Operating

13. Shri Prabodh Parikh
Officer

14. Shri S Srinivasa Rao Deputy Managing Director (Chief Risk Officer)

15. Shreemati Saloni Narayan Deputy Managing Director (Retail Business)

Deputy Managing Director (International

16. Shri Sanjay D Naik
Banking Group)

17. Shri R Viswanathan Deputy Managing Director (Internal Audit)

Deputy Managing Director (Human Resources) &

18. Shri Om Prakash Mishra
Corporate Development Officer

40
 Shri Balakrishna Deputy Managing Director (Corporate Account
19.
Raghavendra Rao Group)

5.5 BANKING SERVICES & PRODUCTS OF SBI

 Banking Services

 Domestic Treasury
 Broking Services
 Revised Service Charges
 ATM Services
 Internet Banking
 E-Pay
 E-Rail
 Online Trading
 MICR Codes
 Foreign Inward Remittances
 SBI No Queue App Faq
 Doorstep Banking (Dsb) Services
 A Platform Independent Utility For Corporates To Create Hash For Salary File
Upload
 One Time Settlement or Compromise
 Cyber Security
 Phone Banking

41
  IMPS
 RTGS
 National Pension System
 NO Queue Mobile Application

 Banking Products

 Saving Account
 Current Account
 Home Loan
 Personal Loan
 Loan against Property
 Gold Loan
 Education Loan
 Two-wheeler Loan
 Business Loan
 Car Loan
 Consumer Durable Loan
 Fixed Deposit
 Recurring Deposit
 Credit Card
 Debit Card
 Balance Inquiry
 Mobile Banking
 Customer Care
 IFSC Code

42
  Loan Against Shares
 Multi Option Deposit
 Motor Accident Claims Annuity (Term) Deposit Account
 Safe Deposit Locker
 Electronic Card For Overdraft Account

5.6 TIMELINE

 June 2, 1806: The Bank of Calcutta established.

 January 2, 1809: This became the Bank of Bengal.

 April 15,1840: Bank of Bombay established.

 July 1, 1843: Bank of Madras established.

 1861: Paper Currency Act passed

 January 27, 1921: All three banks amalgamated to form Imperial Bank of
India.

 July 1, 1955: State Bank of India formed; becomes the first Indian bank to be
nationalized.

 1959: State Bank of India (Subsidiary Banks) Act passed, enabling the State
Bank of India to take over eight former State-associated banks as its
subsidiaries.

43
  1980s When Bank of Cochin in Kerala faced a financial crisis, the government
merged it with State Bank of India.

 June 29.2007: The Government of India today acquired the entire Reserve
Bank of India (RBI) shareholding in State Bank of India (SBI), consisting of
over 314 million equity shares at a total amount of over 355 billion rupees.

5.7 UPDATES IN STATE BANK OF INDIA (SBI)

 In The Year 1955: SBI was established.

 In The Year 2001: The SBI Life Insurance Company was started by the bank.

 During The Year 2005-06: The bank introduced ‘SBI E-Tax’ an online tax
payment facility. For Direct and Indirect tax payment.

 During The Year 2007-08: The bank launched 965 branches all over the
country.

 In The Year 2008: The RBI transferred their entire shareholding in Bank
representing 59.73% of the issue capital of the bank to the government of
India.

 During The Year 2008-09: The company launch import factoring, a new
product association with SBI factors and commercial service limited.

44
 In 2008: SBI introduced 3 new products i.e. SBI Special Home Loan, SBI
Happy Home Loan and SBI Lifestyle.

 In Year of 2008: The bank setup Custodial Service Company.

 In July, 2009: SBI introduce ‘SBI loans to Affluent Pensioners’.

 During the year 2010-11: The SBI introduced to new products namely ‘Pushpa
Ullas’ and ‘Arthias Plus’ on pilot basis.
 In July 1st, 2010: The bank launched their ‘Green Channel Counter’ at select
branches across the country.

 During The First Quarter of The Financial Year 2011-12: The government of
India issued the Acquisition of State bank of India commercial and
International Bank Ltd.

 In The Year 2012: SBI signed a preliminary Non – Binding Memorandum of

Understanding with Russian Direct Investment fund (RDIF).

 In 2013: SBI inaugurated its 2nd branch in China in Tianjin.

 In 2014: SBI launched new digital online and Self services banking solutions
with support Accenture.

 In The Year 2015: SBI launched a Rupay Platinum debit card in association
with National Payment Corporation of India (NPIC).

45
 In 2015: SBI also introduced online facility for overdraft against FDs. SBI
partners with Amazon.

 In 2015: SBI introduced Door step services and expedite home loans
application process.

 On 30th June 2016: SBI and Reliance industries limited (RIL) signed the
shareholders agreement for setting up Payment bank.

 On 17th January 2017: SBI announced that it has concluded the issue of USD
500 million Fixed Rate Senior Unsecured Notes having a maturity of 5 years
at coupon of 3.25% payable semi under Regulations.

 On 8th June 2017: SBI announced closure of qualified institutional placement

of equity shares.

 On 8th January 2018: SBI approved long term fund raising in single or multiple
tranches up to USD 2 billion under Reg-S/144A through a public offer.

 On 31st March 2019: SBI has one of the largest ATM networks in the world
with 58,415 ATMs including Automated Deposit and Withdrawal Machines
(ADWMs).

 In The Month of March 2020: As per the scheme of reconstruction notified by

the Government of India, SBI has infused ₹.6,050 crore in Yes Bank Ltd.

 In 2021: SBI customers will now have access to only four free cash
withdrawals from the bank’s ATM or bank branches in a Month. From the

46
 fifth cash withdrawal onwards account holder will have to pay a processing
fee of ₹15 plus GST on each transaction.

 In 2021: The prices for cheque books have also been revised by SBI.

 In The January 2022: SBI customers can do transactions of up to ₹ 5 lakh

instead of ₹ 2 lakh, the bank has notified. The SBI country’s largest lender has
increased limit on its IMPS.

5.8 SWOT ANALYSIS OF SBI

SWOT Analysis of SBI – SWOT Analysis of State Bank of India focuses on

(S) Strengths, (W) Weakness, (O) Opportunities, and (T) Threats. Internal Factors in
the SWOT Analysis are Strengths and Weaknesses and External Factors in the SWOT
Analysis are Opportunities and Threats.

SWOT Analysis is a proven management tool that helps organizations such as

State Bank of India (SBI) to assess the market of SBI and its success against rival
companies. State Bank of India (SBI) has been one of the leading Stationery
companies.

Strengths in the SWOT Analysis of SBI

 SBI is India’s biggest bank in terms of market share, sales, and reserves.
 SBI has been ranked in the Fortune Global 500 list.
 According to recent reports, the bank has more than 22141 branches and
58555 ATM’s.
 The bank is active in 36 countries involved in currency traders around the
world.

47
  SBI has the first-mover edge of commercial banking facilities.
 SBI recently updated its vision and mission statements indicating an
indication of inclination towards new-age banking services.
 State Bank of India has a huge employee base of 257252 employees.
 SBI has revenue of 143306 Crore rupees (20 billion US Dollars).
 The owner of the State Bank of India is the Government of India.

Weaknesses in the SWOT Analysis of SBI

 The lack of adequate technology-driven infrastructure relative to private banks

 Employees are hesitant to fix issues efficiently due to better job stability, and
the turnaround period for clients is lengthy relative to private banks.
 The banks pay a large sum on their leased houses.
 SBI has the largest number of employees in the banking sector, which is why
the bank spends a considerable amount of its income on employee’s salaries.
 Despite the modernization, the bank still conveys the perception of the
traditional bank to new-age clients.
 SBI does not draw corporate payroll accounts, and any government
employee’s payroll accounts are now transferred to private banks for ease of
service, unlike before.

Opportunities in the SWOT Analysis of SBI

 The merger of SBI with five other banks, namely the State Bank of
Hyderabad, the State Bank of Patiala, the State Bank of Bikaner and Jaipur,
the State Bank of Travancore and the State Bank of Mysore, is at the
approval stage.

48
  Mergers would result in a rise in market share to protect its number one
spot.
 SBI aims to expand and invest in foreign activities due to a strong inflow of
capital from the Asian economy.
 As some of the banking activities are yet to be modernized, there is a
greater opportunity for leveraging new technology and applications to
enhance customer ties.
 Young and talented graduate and B school pools are on the rise to open
new horizons for the so-called “old government bank”.

Threats in the SWOT Analysis of SBI

 Net profit of the year decreased from 9166.05 in the year 2010 to 7.370.35
in the year 2011.
 This indicates that the market share of its close rival ICICI is that.
 Other private banks, such as HDFC, AXIS bank, etc.
 FDIs permitted in the banking sector was increased to 49%, which is a
major challenge to SBI as citizens continue to turn to international banks
for better banking services facilities and technology.
 Other government banks, such as GNP, Andhra, Allahabad Bank, and
Indian Bank, are coming up.
 Customers prefer to switch to private banks and financial service providers
for loans and mortgages, as SBI involves strict verification procedures and
takes a long time to process.

49
 CHAPTER 6

FRAMEWORK OF STUDY

50
6.1 MEANING OF HOME LOAN

An arrangement in which a lender gives money or property to a borrower, and the

borrower agrees to return the property or repay the money, usually along with interest,
at some future points in time. Usually, there is a predetermined time for repaying a
loan, and generally the lender has to hear the risk that the borrower may not repay a
loan (though modern capital markets have developed many ways of managing this
risk).

Home loans allow borrowers to purchase a new home. A home loan or mortgage,
is a secured loan that borrowers obtain in order to purchase a home. Because a home
is the largest purchase many individuals will ever make most borrowers utilize home
loan to assist with their home purchase.

6.2 TYPES OF HOME LOANS

There are different kinds schemes home loans are available in the market with
different meet customers needs. They are:

51
1. Home Purchase Loans

These are the basic forms of home loans used for purchasing a new home. But
sorting out the best rate can at times, seem confusing if you're a first time buyer or
even an experienced homeowner.

With about a million home lenders and mortgage brokers it's becoming a
tough challenge as the days are progressing. But at the same time, when the sites are
coming up with all the latest gizmos and tools and relevant information for you. and
with all such conveniences, obtaining a home purchase loan or mortgage has become
really pretty simple. However, at the same time though, you may be flummoxed to
look so many attractive rates and offers in the market.

2. Home Improvement Loans

Home improvement loans are used to finance improvements and add on to the
existing set of credentials of beauty on your owned house, recently purchased
property or rented accommodation. Home improvement loans are used to maintain or
enhance the value of your house.

In general it includes: repairs, remodeling, energy-related items (permanent in

nature), repairs, a new kitchen, a new bathroom, terrace, an extension or general
property improvements. Luxury items and fireplaces are generally not eligible,
though. Many improvements landscape and even swimming pools are nowadays
considered to be a part of home improvement.

 First Mortgage/Loans: Generally the current lender provides you with home
improvement loans against your first mortgage. In the most common cases, the
loan is extended for the remaining period of the original mortgage, but one
will have to discuss the terms in detail with his/her mortgage lender. Home

52
 improvement loans are usually paid out in payments in proportion to the work
that is being carried out and the contractor may be paid directly from the
lender.

 Second Loans: It may also include: Home Equity Loans and Home equity line
of credit. One may have a decent equity in his/her home, but at the same time,
he/she needs to be vigilant as well to evaluate and compare the different
alternatives in detail to avoid any confusion or problems at the later stages.

 Home Loans Refinancing: financing of your mortgage or loans may help you
to lower your payments, delay your payments, defer your payments, or may
even help in releasing some cash for your home improvement.

 Personal i.e. Unsecured Loan. The best part of personal loan is that it doesn't
require you to have equity in your home, nor does it binds you to borrow
money against your home. Generally the personal loan is disbursed by either a
finance company, or a bank for home improvement project.

 Grants from the Government Bodies. Few Government grants programs are
available for you to offer financial help to low income families to repair
current homes.

3. Home Construction Loans

Home construction loans are used to finance for the construction of yours
newly acquired home or if you are planning to build a home. But, with so many home
construction loans available in the Indian market,Housing Loan in SBI, Bellary,

53
  Factors to be consider for home building

 Design of the house.

 Construction cost
 Financing Cost
 Buildable Site

All the above mentioned costs will help you determine the amount you may
need to borrow. For example, besides calculating the construction costs, you may also
be required to consider the total expenditures to develop the site in order to build.
Each site is unique requiring different expenditures so this specific rupee amount will
vary from site location to site location.

4. Home Extension Loans

Home extension loans are used by customers to get loans from the banks to
extend their houses, by adding more rooms, kitchens, wash rooms, terraces, or any
other rooms for your growing family. It may also be used to enclose open
balcony/terrace space, or constructing a Puja ghar. Home extension loan thus falls
under the category of home loans.

If it is not extra bedrooms or balcony or a bigger kitchen, then you might also
be looking to expand your lounge or add an extra bathroom. Perhaps you're thinking
of extra entertaining space for parties with friends or bigger family get together. You
may also be considering adding a conservatory so that there is somewhere for you to
relax away from the rest of the family when everyone is at home.

5. Home Equity Loans

Home equity loans helps customer to encash the market value of the
commodity by taking a loan by mortgaging the property. So, Home equity loans are
54
availed by customers, who wish to mortgage his/her property to the bank for taking
some:

 Sree Guru Thipperudra College, Bellary

 Housing Loan in SBI, Bellary.

Claim for some other purpose. Then, it's up to the bank's discretion to consider the
market value of the property and accordingly decide how much to pay to the
customer. Both the residential as well as non-residential property can be considered
for the approval of the loan, provided the mortgager is a licensed title holder and the
land is free form any kind dispute.

6. Land Purchase Loans

Land Purchase loans are used by customers who wish to purchase a plot of
land for commercial or residential purpose. Everyone has his/her dream perfectly
sketched in his souls and so is his ambition to get his house erected on the exact
location.

Loans that are strictly for land purchase can be as scarce as good residential
plots. While many lending firms around the nation compete to provide mortgages for
the purchase of a house on a lot, only local institutions typically will be interested in
lending for an empty lot.

7. Mortgage Loans

Balance transfer loans are used by customers who wish to mortgage their
property on an attractive rate of interest from the banks like Dena Bank, Bank of

55
India, Citibank etc. The mortgage loan allows the borrower to apply for loan against a
fixed asset of his/her.

6.3 HOME LOANS OFFERED BY SBI

Having a house of your own that you can come back to at the end of the day is
satisfying, to say the least. However, before you get to the best part, you have to look
at the process that goes into purchasing a home of your own first. Choosing an ideal
house that you like and that is within your budget is not the only thing you need to
take into consideration. Opting for the right Home Loan is also just as imperative.

There are various types of Home Loans Offered by SBI & their benefits:

1. Regular Home Loan:

You can use this loan to construct a house, conduct a house extension,
purchase an under-construction property, a ready built property, a pre-owned home or
for any other kind of repair and renovation.

Benefits:

56
  30 years repayment tenure
 Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.
10,000 and maximum of Rs. 30,000) + applicable GST.
 Zero Prepayment charges.
 Interest rate charged on daily reducing balance.
 Home Loan available as Overdraft.
 Indian residents aged between 18 to 70 years can apply.

2. NRI Home Loan:

This Home Loan caters to Non-Resident Indians who are seeking to invest in
property. It makes better sense from a financial perspective that you purchase a
property through a Home Loan instead of going through personal financing.

Benefits:

 Low processing fee.

 Zero hidden charges.
 Repayment tenure up to 30 years.
 Zero prepayment penalty.
 Concession in interest rate for women borrowers.
 Home loan available as overdraft.
 NRIs and PIOs aged between 18 to 60 years can apply.
 Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.
10,000 and maximum of Rs. 30,000) + applicable GST.

3. Realty Home Loan:

It helps you purchase a plot for construction of your home. Construction should
start within 5 years from the date the loan is sanctioned.

Benefits:

 Loan to build your dream home from scratch.

57
  Avail maximum Rs. 15 Crores as loan amount.
 No prepayment charges.
 Loan repayment tenure up to 10 years.
 Concession in interest rate for women borrowers.
 Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.
10,000 and maximum of Rs. 30,000) + applicable GST.
 Indian residents aged between 18 to 65 years can apply.

4. Pre-Approved Home Loan:

Your Home Loan limits are sanctioned before the property is decided upon.
This helps you negotiate with the buyer or seller in private.

Benefits:

 Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.

10,000 and maximum of Rs. 30,000) + applicable GST.
 Repayment up to 30 years.
 Interest concession for women borrowers.
 Home loan available as overdraft.
 No prepayment penalty.
 Resident Indians aged above 18 years can apply.

5. Balance Transfer of Home Loan:

This kind of loan offers borrowers a chance to transfer Home Loans from
housing finance companies that are registered with the National Housing Bank,
scheduled commercial banks and private as well as foreign banks.

Benefits:

 Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.

10,000 and maximum of Rs. 30,000) + applicable GST.
 Home loan available as Overdraft.

58
  Low interest rates.
 No prepayment charges.
 Interest charged on daily reducing balance method.
 Concession in interest rate for women.

6. Privilege Home Loan:

This loan is particularly designed for government employees. This takes into
account PSUs, PSBs of Central Government, employees of State Government and
other individuals who come with the benefit of pensionable service.

Benefits:

 Concession on interest if Check Off is provided and for women borrowers.

 Zero processing fee.
 Home Loan made exclusively for government employees.
 No prepayment penalty.
 Up to 30 years repayment tenure.
 Resident Indians above 18 years of age can apply.

7. Shaurya Home Loan:

This loan caters to all army and defence personnel. It comes with added benefits
and lower interest rates.

Benefits:

 Home Loan only for Defence and Army personnel at competitive rate.
 Extended loan tenure of up to 30 years.
 Zero processing fee.
 Zero prepayment penalty.
 Concession on interest if Check Off is provided and for women borrowers.
 Resident Indians above 18 years of age can apply.

59
8. Flexipay Home Loan:

This housing loan gratifies salaried individuals. It provides borrowers with a

higher loan amount and gives you the benefit of paying only interest during the pre-
EMI period. Following this, you have to pay moderated EMIs (Equated Monthly
Instalments).

Benefits:

 20% higher eligibility for loan amount.

 Pay only interest during pre-EMI/ moratorium period.
 Up to 30 years repayment tenure.
 No prepayment charges.
 Resident Indian above 21 years and up to 45 years of age can apply.
 Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.
10,000 and maximum of Rs. 30,000) + applicable GST.

9. Home Top Up Loan:

This loan offers customers the benefit of borrowing a specific amount on top of
their Home Loan amount. This loan is beneficial for borrowers who are in need of
extra funds.

Benefits:

 Multipurpose loan.
 Interest rates much lower than that of Personal Loan.
 Tenure up to 30 years.
 No prepayment charges.
 Interest charged on daily reducing balance method.
 Home loan available as overdraft.

60
  Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.
10,000 and maximum of Rs. 30,000) + applicable GST.
 Indian residents aged between 18 to 70 years can apply.

10. Smart Home Top Up Loan:

This general-purpose loan helps to fund any urgent necessities for any type of
personal requirements. This includes expenditures that arise from marriage,
repair/renovation of house, education, and healthcare.

Benefits:

 Quick loan processing.

 No pre-payment penalty.
 Loan amount available up to Rs. 5 Lakhs.
 Repayment tenure up to 20 years.
 Indian residents aged between 18 to 70 years with CIBIL score of 550 or
above can apply.
 Processing fee is Rs. 2,000 + applicable GST.

11. Tribal Plus:

This loan is specially designed for individuals who live in tribal or hilly areas
and require funds for the purchase or construction of a new flat/house. The house to
be purchased must not be older than 10 years.

Benefits:

 Home loans for people of Hilly and Tribal areas.

 Loans offered against Third Party Guarantee.
 No need to mortgage the land.
 Loan amount available up to Rs. 10 Lakhs.
 Repayment tenure up to 15 years.
 Interest rate concession for women borrowers.

61
  No prepayment penalty.
 Resident Indians aged above 21 years can apply.
 Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.
10,000 and maximum of Rs. 30,000) + applicable GST.

12. CRE (Commercial Real Estate) Home Loan:

These loans work well for individuals who own two or more houses and require
finances for their next home buy. You need to make a note however that the
maximum number of houses/plots/flats is kept to three.

Benefits:

 Best Home Loan for investment purpose.

 Flexibility to avail up to 3 Home Loans.
 Resident Indians aged above 18 years can apply.
 Repayment tenure up to 30 years.
 Processing fee is 0.35% of the loan amount (minimum Rs. 5,000) +
applicable tax.

13. Insta Home Top Up Loan:

This loan is accessible to individuals who are already existing Home Loan
customers. It is a facility offered to pre-selected borrowers through the platform of
internet banking.

Benefits:

 Hassle free and instant top up loan for existing Home Loan borrowers.
 Fully automated loan with no manual intervention.
 Loan available in just 3 easy steps.
 Available as overdraft.

62
  Pre-selected customers are selected by the bank for this scheme based on
various credit checks, such as satisfactory repayment, remaining loan
tenure, etc.
 Processing fee is Rs. 2,000 + applicable GST.

14. Bridge Home Loan:

This loan works in tandem with individuals who wish to upgrade to bigger and
better homes by selling off their present ones.

Benefits:

 Best short-term loan for home upgradation.

 Loan amount of minimum Rs. 20 Lakhs and maximum up to Rs. 2 Crores.
 Repayment tenure up to 2 years
 Zero prepayment charges
 Processing fee is 0.35% of the loan amount (minimum Rs. 5,000) +
applicable tax
 Indian residents aged between 18 to 70 years can apply

15. Corporate Home Loan:

This loan caters to construction or acquisition of residential units that are under
the name of a company. These loans are offered to promoters, directors, and
employees who are part of public or private corporate entities.

Benefits:

 Low interest rate & processing fee.

 No hidden cost.

63
  Existing borrowers of SBI or a debt free company can apply.
 Processing fee is 0.50% of the loan amount (minimum Rs. 50,000 and
maximum Rs. 10 Lakhs) + applicable GST.

16. Home Loan to Non-Salaried-Differential Offerings:

These Home Loans are offered to non-salaried individuals for the construction,
renovation or acquisition of a house.

Benefits:

 Home Loan offer that suits every customer’s need.

 Repayment tenure of up to 30 years.
 Resident Indians aged above 18 years can apply.
 No hidden charges.
 Repayment tenure up to 30 years.
 Loan amount available is minimum Rs. 50,000 and maximum Rs. 50 Crores.
 Processing fee is 0.40% of the loan amount (subject to a minimum of Rs.
10,000 and maximum of Rs. 30,000) + applicable GST.

17. Pradhan Mantri Awas Yojana:

This initiative was taken up by the Government of India and offers affordable
housing to the urban poor. The government offers interest linked subsidy to the
eligible on Home Loans for the construction/acquisition of houses.

Benefits:

 Subsidy on Home Loan interest of up to 2.67 Lakhs.

 Affordable housing finance for urban poor and mid-income group.

64
18. Home Loan Overdraft Facility:

SBI Max Gain is a Home Loan sanctioned as an overdraft. It comes with a limit
that is the same as the approved loan amount. In this case, your home is the
underlying security for the overdraft amount.

Benefits:

 Best Home Loan if you can save some extra money each month after paying
the standard EMI.
 Surplus amount left in the Home Loan Overdraft account can be withdrawn
any time for use.

19. Earnest Money Deposit (EMD)

EMD scheme by SBI is for those applicants who are looking for earnest money
to book residential plots or built-up houses that are being sold by Government
Housing agencies (PUDA, HUDA, etc.).

Benefits:

 No prepayment penalty.
 No hidden charges.
 Short term loans of maximum up to 100% of application money available.
 No minimum income criterion.
 Repayment tenure up to 12 months.
 Loan Amount up to Rs. 15 Lakhs for CSP/DSP account holders and up to
Rs. Wed 10 Lakhs for others.
 Processing fee is 0.50% of the loan amount (minimum Rs. 1,000).
 Resident Indians aged above 21 years can apply.

There are also other schemes available at SBI that help to make the entire
process of obtaining a housing loan easy and stress-free. These loans come with
standard features such as low-interest rates, flexible payment alternatives, low

65
processing fees and no hidden charges. These exclusive packages that cater
specifically to individual needs make it easy to choose a loan that is tailor-made
just for you. Make sure you examine your credit score, begin saving for a down
payment and get all of your financial documents in order before finding a good
home loan. It helps to make the entire loan application process simpler. Based on
your need and preferences, you can then pick the most appropriate SBI Home
Loan for you.

6.4 UNIQUE FEATURES OF SBI HOME LOAN PRODUCTS

 Provision for on the spot in principle approval.

 Loan sanctioned within 6 days of submission of required documents. Option

to avail Home Loon as a Term Loan or as an Overdraft facility to save on
interest and maximise gains.

66
  Option to club income of your spouse and children to compuse 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 upto 70 years of age.

 Free personal accident insurance covers upto Rs.40 Lac.

 Optional Group Insurance from SBI Life at concessional premium (Upfront

premium).

6.5 FAQs OF CUSTOMERS ON SBI HOME LOAN

Q.1 Which is the best SBI home loan scheme?

The best housing loan scheme depends on borrower’s requirement. The

State Bank of India offers home loan schemes for construction, purchase of
land/plot, home purchase, renovation or improvements of an existing home,
extension or repairs, housing loan for NRIs, balance transfer and top-up loans. The
borrower can choose any scheme that fits their requirement

67
Q.2 What is the current SBI home loan interest rate?

SBI offers a home loan to both salaried and self-employed professionals.

The interest rate depends on the type of borrower, scheme type chosen by the
applicant, and loan amount to be availed. Currently rates of interest on home
loans offered by SBI start from 7.35% per annum for women borrowers and 7.95%
for others. The interest rates are linked to the bank’s EBR (currently 6.65%) and
may change as per the changes in EBR.

Q.3 What is the average tenure of a SBI home loan?

The average repayment tenure of SBI home loan ranges between 3 to 30

years.

Q.4 Can a single woman get a SBI home loan?

Yes, a single woman can avail SBI home loan if she has her strong financial
standing when applying for the loan. A single woman can also include a co-
applicant (preferably who has a strong financial repayment capacity) while
applying for the loan to increase her eligibility. Normally, SBI offers concession on
interest rates and stamp duty charges for women, making it more convenient for
them to repay the loan. SBI also extends “SBI Her Ghar Scheme” for women
borrowers, which offers attractive interest rates and flexible repayment options to
women.

Q.5 I have low credit score, Can I still apply for a SBI home loan?

If you have a low credit score, try improving your credit score first. The
ideal credit score to obtain SBI home loan is 550 or above. The good credit score
depends on your past repayment history, making timely EMI payments on existing
loans, and timely credit card bills payment. Skipping any of your repayments or
making any default can affect your credit score on a longer run.

68
 Hence, if you apply with a low credit score, then you may face rejection on
your SBI home loan application.

Q.6 How will SBI decide the loan amount I am eligible for?

SBI calculates the home loan amount eligibility based on the applicant’s net
monthly income, repayment capacity, age, number of dependants, qualification,
assets and liabilities, spouse’s income (if any), work stability and continuity, and
savings history. The higher the disposable net monthly income (after tax, EMIs,
and other deductions), the higher the loan amount will be.

Q.7 Do I get tax benefits on the SBI home loan?

Yes, you will get certain tax benefits on your SBI home loans. You will be
entitled to a deduction of the interest paid on your house property up to the extent
of Rs. 2 lakhs (in case of a self-occupied house) in an assessment year. You can
also claim the full interest paid during the assessment year as a deduction without
any limit, if you have paid the property on rent.

Moreover, the component of the principal amount of such loan repayment can be
claimed as a deduction from the total income under Section 80 C of the Income Tax
Act, 1961 for the maximum limit of Up to Rs. 1.5 lakhs.

69
 CHAPTER 7

TERMS AND NORMS

7.1 DOCUMENTS REQUIRED FOR HOME LOAN OF SBI

The need for documentation for different categories of applicants depends

on their rank. For this reason, all HFLs segregate their workers into different
categories. They are:

 Salaried

 Professional or Businessman

The rating requirement vary depending on their rank, specific records, which
remain the same for all groups shall be as follows:

70
Proof of Age:

(Any one of the following shall be considered as proof of age)

 Passport
 Voter’s ID Card
 PAN card
 Ration card
 Employer’s Identity Card
 School leaving certificate
 Birth certificate

Proof of Residency:

 Ration Card
 Pan card
 Passport
 Contract Agreement if any, if you are already on contract
 Allocation letter from your employer if you are stay in business quarters.

Proof of Employment:

The proof of employment is verified by the:

 Identity Card Issued by The Employer.

 Visiting Card.

The employer details are to be provided in addition to the above documents a

Private Sector Employee, they are:

 Name of Promoters/Directors
 History of Promoters/directors

71
  The Number of Employees
 Branches/Factories List
 Client/Customers List
 Your Employer’s Turnaround
 Your Employer’s annual report for the last 2 to 3 years

The document required to be submitted by the Businessmen as follows:

 Last three years Profit & Loss Account Statement duly certified by a
Charted Accountant.
 Last three years the Balance Sheets duly approved by a Charted Accountant.
 Last three years Income tax Returns properly filed & approved by Income
Tax authorities.

Name Change Proof (If Applicable):

 A Copy of the official gazette.

 A Copy of a newspaper advertisement publicizing the name change.
 Marriage Certificate.

Investment Proof (If Applicable):

 Bank statement for the last six months of all operating and salary accounts
 Bank statements for the last six months of all current accounts, if self-
employed
 Any other photocopies of investments held, if required by the Bank
Property Title Proof

 Original Sale agreement with Bailder/Developer duly registered

Registration receip.
 Tripartite agreement from builder developer.
 Land documents indicating ownership, e.g. Photocopies of title deeds, if
applicable.
 A certificate by the legal advisor of the builder to the effect that the builder
has a good reputation and it is free from encumbrance and other charges.

72
  A Certificate from builder's Chartered Accountant certifying that the builder
has not Mortgaged the property anywhere else.
 Certified true copy of approved plan.
 Copies of receipts of payments made to builder developer.
 Allotment Letter.
 Possession Letter.
 Lease agreement, if applicable (Property boughs from a development
authority).
 Mortgage deed if the Bank opts for a registered mortgage.
 No Objection Certificate from the developer, society or development
authority as applicable.
 Personal Guarantees, if applicable.
 In case of alternate or additional security, documents for the same
depending upon the security details.
 For self-construction: Approved plans and clearance certificates along with
estimates.
 Post dated cheques for the EMIs.

Confirmation of Rental Income

Copy of the existing te tuincy agreement, or a rental appraisal, from a local real
estate agent signed by branch manager, or rental manager.

Deposit or Investments

 Evidence of your deposit or investment funds. L.e. a bank statement or term

deposit receipt.
 For low equity loans (5-19% deposit), copy of your savings account
statements over the last six months.

Sale And Purchase Agreement

73
  If you are planning to buy a property, please provide a copy of the
successful sale and purchase agreement signed by both you and the vendor.
 If you are planning to sell or have already sold your existing property,
please provide a copy of that property's sales and purchase agreement.

New Customer to The Banks of India

 If you are refinancing from another bank please provide copies of your loan
statements covering the last six months.
 Please provide copies of your account statements covering the last six
months from your current bank
 Please provide copies of your identification and if you have arrived in the
country within the last 5 years, please provide a copy of your passport.

Government Valuation and rating System

 A copy of the latest Government or Ratings Valuation is to be provided.

Depending on the age and value indicated in conjunction with the amount
required to borrow, the Bank may require a Registered Valuation and your
Banker will advise you.

7.2 CHECKLISTS FOR THE HOME LOAN OF SBI

ADVOCATE Check List:

(Prepare separate set)

74
  Copies of Mother deed/parent document link deeds, allotment letter, Khatha
Certificate/endorsement, up to date encumbrance de tax paid receipts. (Incase
of flats, if the project is already approved by SBI panel advocate then this is
not required).
 Copies of Agreements for sale, Construction Agreement.
 Original Subs Registrar certified copy of the Sale Deed (for takeover loans).
 Original of updated encumbrance certificate.
 Copy of Plan sanction.
 Copies of latest Khata certificate.Khata extract etc.
 Upto date Tax paid receipts (Form-16).
 Copies of Sanction letter of other bank institution & Letter of original.
Documents held in their custody (applicable In case of takeover loans from
other banks institutions)

ENGINEER Check List:

(Kindly take the Engineer Telephone Nos from the bank to co-ordinate with him for
inspection of your property)

 Photo copy of Sale Deed.

 Plan Sanction Copy.
 Interior Estimate, if any, for approval by Engineer.

BUILDERS/SELLERS Check List

 Allotment Letter & detail split up cost of the project.

 In case of completed projects, a letter from the builder stating that the
property is ready for registration.
 Letter from the builder/seller the property is not mortgaged to any bank
financial institution. If mortgaged then an NOC from the concerned

75
 bank institution.
 Advance Receipt/ Paid Receipts from Builder Seller, if any.
 Due diligence on Builders and Seller KYC Norms: Proof of Identity (PAN)
copy), Residence proof (Telephone electricity bill-both self-attested and
originals verified & attested by the boak) along with the duly filled in KYC
form (form to collect from the bank).

OTHER BANK/INSTITUTION Check List

(In case of Takeover Loans)

 Sanction Letter of the other hank/instination.

 Loan account statement from the date of sanction till date.
 Pre-closure letterinclusive of penalty from the other bank institution.
 Letter of original documents held in their custody.
 Receipts for the total amount of the project issued by builder/seller to the
purchaser/bank/institution.

PERSONAL DOCUMENTS Check List

(From the Applicant/Co-applicant and Guarantor, if any)

 Self-Attested Copies of Documents

 Proof of klentity (passport pan card).

 Proof of Residence (telephone electricity bill/company letter).
 Salary Slip- last 3 months. (Attested by the employer).
 Salary account bank statement-last 6 months (bank attested).
 Form 16 for the last two years.
 Income Tax Saral copy for the last two years.
 Photograph-2 nos.
 Application Form.

76
  Company Profile-details of company.

7.3 MARGIN MONEY OF HOME LOAN

Margin money in home loans, is the amount that a borrower pays as down
payment. While buying a property, the portion of the total cost that has to be financed
from the buyers own funds is called margin money and this may vary from 10% to
25%. This may also be paid to the bank or a non-banking finance company (NBFC)
from where the prospective home buyer is seeking a home loan.

Margin/ LTV Ratio for SBI Home Loan

Loan Amount Margin (Min.) Maximum

Upto Rs. 30 Lacs 10% 90%
Above Rs. 30 Lacs To 75 Lac 20% 80%
Above Rs. 75 Lac 25% 75%

7.4 MORATORIUM

Up to 18 months from the date of disbursement of first instalment or 2 months

after final disbursement in respect of loans for construction of new house flat
(moratorium period will be included in the maximum repayment
period).

7.5 GUARANTOR

 The bank insists on a Guarantor till the property is registered/title transferred

on your name and Equitable Mortgage registered in favour of the bank.

77
  Guarantor details in the application with Assets & Liabilities duly filled in
along with the above mentioned documents are required.

 An eligibility criterion of guarantor is that 80% of the net credit worthiness of

the guarantor should be more than the loan amount (takeover amount).

 The Title holders of the property should ONLY be the borrowers. If the
agreement is on the joint names (maximum three persons), then the Sale deed
also should be on the joint names and the loan also will be on the joint names.
The same is also applicable for take over loans. i.e. Joint Owners then Joint
name in the loan application/Single Owner then Single name in the loan
application.

7.6 EQUATED MONTHLY INSTALLMENT

An equated monthly installment (EMI) is a set monthly payment provided by a

borrower to a creditor on a set day, each month. EMIs apply to both interest and
principal each month, and the loan is paid off in full over some years.

78
 SBI Home Loan EMI Calculation

An SBI home loan monthly EMI calculator works on the following formula-
EMI= [P*R*(1+R)^N]/[(1+R)^(N-1)].

In the above formula-

 P is your principal or the loan amount.

 R is your rate of interest calculated per month.
 N is your loan tenure in months.

For example, let’s consider you have availed a home loan of Rs, 60 Lakh at 9%
(0.75% per month) rate of interest with tenure of 20 years (240 months).

Then, EMI= [60,00,000*0.75%*(1+0.75%)^240]/(1+0.75%)^(240-1)].

EMI= Rs. 53,984.

The way EMI is calculated can be broadly categorize under two heads:

 Flat Rate System.

 Reducing Balance System.

Flat Rate System:

The rate of interest on the loan amount is calculated over the full duration of
the loan. The principal and the interest is divided over the number of instalments and
the value arrived is your EMI Let us understand this better:

Year Interest Paid (Rs.) Principal Paid (Rs.) Outstanding

79
 Principal (Rs.)
1st 21,000 0 1,00,000
2nd 21,000 0 1,00,000
3rd 21,000 0 1,00,000
Total Interest Paid 63,000
Total Outflow 1,63,000
EMI (1,63,000/36) 4,527

A flat rate loan is the most expensive as in this case the interest is calculated
on the entire loan amount and no principal deduction is taken into account. Thus the
effective rate of interest works out to be much higher.

Reducing balance system:

The interest is charged on the outstanding balance of the loan, which goes on
reducing: Hence the cost of the same loan amount on an annual reducing balance
method works out to 29% and 35% on a monthly reducing balance method. Again in
case of reducing system, there are three types:
Month EMI Interest Paid Principal Paid O/S Principal
1. 3,768 1,750 2,018 97,982
1st Year

2. 3,768 1,715 2,053 95,930

3. 3,768 1,679 2,089 93,841
4. 3,768 1,642 2,125 91,716
5. 3,768 1,605 2,162 89,553
6. 3,768 1,567 2,200 87,353

Month EMI Interest Paid Principal Paid O/S Principal

7. 3,768 372 3,395 17,888
3rd Year

8. 3,768 313 3,454 14,433

9. 3,768 253 3,515 10,918
10. 3,768 191 3,576 73,42
11. 3,768 128 3,639 37,30

80
 12. 3,768 65 3,703 0

Total Interest Paid: ₹ 85,039/- Total Outflow: ₹ 1,85,039/- EMI: ₹

3,768/-
(The table covers the repayment schedule in the 1st 6 months of the 1st year and
Last 6 months of the 3rd year of tenure of the loan)

 Daily reducing balance method (Used by SBD)

Here, there is immediate reduction in principal thereby reducing the interest

calculated on it. If you have taken a loan of ₹ 1,00,000/- at 21% interest for 3 years
and you pay ₹ 3,760- on Jan 10, the lender will consider total outstanding principal as
₹96,240/- from Jan 11. The interest will be calculated on ₹1.00,000/- from Jan 1 to
Jan 10 and from Jan 11, interest will be calculated on ₹96,240/- with a lower
outstanding principal, the total interest paid out reduces and so does the EMI.

 Monthly reducing balance method

Here, the principal component is deducted at the end of every month and then the
interest is calculated on this new outstanding reduced principal. The above table gives
the cash outflow on a loan of ₹ 1,00.000/- at 21% interest for 3 years, when interest is
calculated by monthly reducing balance method.

 Annual reducing balance method

Here the principal component of EMI though reduced every month, is summated
annually. Therefore, the interest is calculated on the original loan amount for the
entire year. At the end of the year, the accumulated principal component is deducted
from the original loan amount and the interest for the next year is on this reduced loon
amount. If you have taken a loan of ₹ 1,00,000/- at 21% interest for 3 years, the EMI
will be ₹ 4,018/-.

81
 SBI Housing Loan EMI Calculation Through Online & Their

Benefits

Home loans are long-term and secured financing options available for
constructing or purchasing a property. In recent years, home loans have seen a
considerable rise, one of the primary factors for which is the Pradhan Mantri Awas
Yojana (PMAY). Under the Credit Linked Subsidy Scheme (CLASS) of this Yojana,
first-time and eligible borrowers can avail subsidies on their home loan interest rate.
State Bank of India has played a key role in sanctioning home loans under the
PMAY. The largest multinational bank in India also has some ofn the competitive
interest rates for these products. Using an SBI Home Loan EMI Calculator,
borrowers their monthly installments before applying.
SBI is one of the reputed banks in India with more than 50 Crore customers
in more than 22,219 branches. Whether it is deposits or loans, SBI ranks among the
top in the list of banks and financial institutions in this country.
Home loans are one of the sought after financing options form SBI since this
bank offers the most attractive rate of interest.
Hence, an Online Home Loan EMI Calculator SBI can help you out
significantly by providing the following benefits:

 Help you determine the right amount that can make your EMIs affordable.
 It enables you to choose the correct tenor to ensure the monthly installments
are easily manageable.
 Eliminates the need for manual calculation, which can deliver inaccurate
results and be time consuming.
 Use anywhere- Computer, mobile, tablet, etc.

82
 CHAPTER 8
DATA ANALYSIS, INTERPRETATION &
PRESENTATION

1. Age of the Respondents.

 Below 30 Years

83
  30-40 Years
 40-50 Years
 Above 50 Years

Age No. of Responds Responds in Percentage (%)

Below 30 Years 18 36%
30-40 Years 16 32%
40-50 Years 11 22%
Above 50 Years 5 10%
Total 50 100%

Age
10%

36% Below 30 Years

30-40 Years
22%
40-50 Years
Above 50 Years

32%

Interpretation:

The Data was collected from the respondents of which there were 36%
respondent in the age group of Below 30, 32% respondent were in the age of group
30-40 years, 22% respondent were in the age of group 40- 50 years and 10%
respondent were in the age of group Above 50 years.
2. Gender of the Respondents.

 Male

84
  Female

Gender No. of Responds Responds in Percentage (%)

Male 33 66%
Female 17 34%
Total 50 100%

Gender
66%

34%

Male Female

Interpretation:

The 50 responses were collected from the customers of SBI bank, 66%
responses were collected from Male and 34% respondents were Female.

3. Occupations of Respondents.

 Student

85
  Professional
 Self-Employed
 Salaried
 Others

Occupations No. of Respondents Respondents in Percentage (%)

Student 5 10%
Professional 13 26%
Self-Employed 11 22%
Salaried 17 34%
Others 4 8%
Total 50 100%

Occupations
Others Student
8% 10%
Pro-
fes-
sional
Salaried 26%
34%

Student
Professional
Self-Employed
Salaried
Others
Self-Employed
22%

Interpretation:
Out of 50 respondents, 5% respondents are students, 26% respondents are
professional, 22% respondents are self-employed and 17% respondents are salaried.
Rest of the 8% respondents are have other income sources.
4. Family Size of Respondents.

 1-4

86
  4-6
 Above 6

Family Size No. of Respondents Respondents in Percentage (%)

1-4 18 36%
4-6 23 46%
Above 6 9 18%
Total 50 100%

Family Size

18%

36% 1-4
4-6
Above 4

46%

Interpretation:
Out of 50 respondents, 18 persons have 1 to 4 family members i.e. 36%, 23
persons have 4 to 6 family members i.e. 46%, 09 person have above 6 family member
i.e. 18%.

5. Number of Earning Members in Respondents Family.

 One Member

87
  Two Members
 Three Members
 More Than Four Member

No. of Earning Members No. of Respondents Respondents in Percentage (%)

One Member 12 24%
Two Members 18 36%
Three Members 9 18%
More Than Four Member 11 22%
Total 50 100%

Earning Members

40%
35%
30%
25%
20%
15%
10%
5%
0%
One Member Two Members Three Members More Than Four
Members

Earning Members

Interpretation:
Out of 50 customers, 24% respondents have one earning member in family,
36% respondents have two earning members in family, 18% respondents have three
earning members in family, 22% respondents have more than four earning members
in family.

6. Monthly Income of Respondents.

88
  Below ₹ 20,000
 ₹ 20,000 To ₹ 50,000
 Above ₹ 50,000
 No Income

Monthly Income Respondents No. of Respondents (%)

Below ₹ 20,000 17 34%
₹ 20,000 To ₹ 50,000 11 22%
Above ₹ 50,000 18 36%
No Income 4 8%
Total 50 100%

Monthly Income
40%

35%

30%

25%

20%

15%

10%

5%

0%
Below ₹ 20,000 ₹ 20,000 To ₹ 50,000 Above ₹ 50,000 No Income

Monthly Income

Interpretation:
Out of 50 respondents, 34% people have below ₹ 20,000 monthly income,
22% people have monthly income of ₹ 20,000 to ₹ 50,000, 36% people have monthly
income of above ₹ 50,000 monthly income and 8% people not have any incomes.

7. Do You Own A Home?

89
  Yes
 No

No of Respondents Respondents in Percentage (%)

Yes 21 42%
No 29 58%
Total 50 100%

Respondents

No

Yes

0% 10% 20% 30% 40% 50% 60% 70%

Interpretation:
42% of respondent people own their homes and remaining 58% of respondents
people not own their homes.

8. From where you get Information about the Home Loan Scheme?

90
  Newspaper
 Friends/Relatives
 Internet
 Agents

Information No. of Respondents Respondents in Percentage (%)

Newspaper 9 18%
Friends/Relatives 11 22%
Agents 12 24%
Internet 18 36%
Total 50 100%

Interpretation:
18% of respondents get information of home loan from Newspaper, 22% of
respondents get information of home loan from Friends/Relatives, 24% of
respondents get information of home loan from Agents and 36% of respondents get
information of home loan from Internet.

9. How much Home Loan Amount you took?

91
  Less than ₹ 1 Lac
 ₹ 1 To ₹ 5 Lac
 ₹ 5 To ₹ 10 Lac
 More Than ₹ 10 Lac

Respondents in
Loan Amount No. of Respondents
Percentage (%)
Less Than ₹ 1 Lac 4 8%
₹ 1 To ₹ 5 Lac 8 16%
₹ 5 To ₹ 10 Lac 16 32%
More Than ₹ 10 Lac 22 44%
Total 50 100%

Loan Amount
Loan Amount

44%
32%

16%
8%

Less Than ₹ 1 Lac ₹ 1 To ₹ 5 Lac ₹ 5 To ₹ 10 Lac More Than ₹ 10 Lac

Interpretation:
The data collected of 50 respondents. 4 respondents want less than ₹ 1 lac
home loan i.e. 8% of respondents, 8 respondents want ₹ 1 to ₹ 5 home loan i.e. 16%
of respondents, 16 respondents want ₹ 5 to ₹ 10 lac home loan i.e. 32% of
respondents and remaining 22 respondents want more than ₹ 10 lac home loan i.e.
44% of respondents.
10. What was the Need for Home Loan?

92
  Construction of Home
 Purchase of Home
 Renovation of Home

Need of Home Loan No. of Respondents Respondents in Percentage (%)

Construction of Home 17 34%
Purchase of Home 22 44%
Renovation of Home 11 22%
Total 50 100%

Need of Hom e Loan

Construction of Home Purchase of Home Renovation of Home

22%

34%

44%

Interpretation:
Out of 50 respondents, 17 respondents need home loan for the construction of
their homes i.e. 34% of respondents, 22 respondents need home loan for the purchase
of their own home i.e. 44% and other 11 respondents need home loan for the
renovation of their old homes i.e. 22%.

11. What Problems did you face while getting Home Loan?

93
  Lack of Knowledge
 Procedural Delays & Non-Corporation
 Less Amount Sanction
 Any Other

Problems of Getting Respondents in

No. of Respondents
Home Loan Percentage (%)
Lack of Knowledge 19 38%
Procedural Delays &
13 26%
Non-Corporation
Less Amount Sanction 14 28%
Any Other 4 8%
Total 50 100%

40%

35%

30%

25%

20%
38%

15%
28%
26%
10%

5% 8%

0%
Lack of Knwolege Procedural Delays & Non-Corporation Less Amount Sanction Any Other

Problems of Getting Home Loan

Interpretation:
During getting the home loan respondents get many problems, where 38%
respondents get lack of knowledge problem, 26% of respondents get procedural
delays & non-corporation problem, 28% of respondents get less amount sanction
problem and 8% of respondents get other problems.
12. While taking Home Loan which things Attract you the most?

94
  Interest Rate
 Service Provided
 Payback Period
 Schemes

Attraction of Home Respondents in

No. of Respondents
Loan Percentage (%)
Interest Rate 15 30%
Service Provided 17 34%
Payback Period 8 16%
Schemes 10 20%
Total 50 100%

Interpretation:
30% of respondents attracts towards home loan because of interest rate, 34%
of respondents attracts towards home loan because of services provides by providers,
16% of respondents attracts towards home loan because of payback period and
remaining 20% of respondents attracts towards home loan because of schemes.
13. How do you find the Interest Rate charged upon the loan
available?

95
  Excellent
 Good
 Average

Respondents in
Interest Rate No. of Respondents
Percentage (%)
Excellent 22 44%
Good 18 36%
Average 10 20%
Total 50 100%

Interest Rate

20%

Excellent
44% Good
Average

36%

Interpretation:
44% of respondents find interest rate is excellent about home loan, 36% of
respondents find interest rate is good about home loan and remaining 44% of
respondents find interest rate is average about home loan.

96
 CHAPTER 9
MICRO ANALYSIS

9.1 FINDINGS

97
  State Bank of India having good brand image in the minds of customers.

 Majority of the people got loans form SBI only.

 Most of the customers are not aware of the products of SBI Home Loans.

 Some of the customers felt that the interest rates are high.

 Many of customers having good faith in SBI public sector bank rather than
private sectors banks.

 Most of the people are directly go to State Bank of India for apply a Home
Loan.

 Some of the customer of SBI already benefited through SBI Home Loan
products and services.

 Customer awareness is excellent about SBI products and services.

 SBI provides various types of good services and products to their customers.

9.2 SUGGESTIONS

98
 The Bank should make sufficient provisioning for bad debts and in this
regards, the bank should strictly, abide by the guidelines of RBI.

 To increase their customers, the bank should provide specialized services in

this sector. These service can be such as proper guidance to the customer
regarding the processing of loans, especially for the customers who are
illiterate.

 To satisfy their customers for good dealings in future, the bank should make
prompt disbursement of loan amount to the customers so that they can buy or
construct their dream home as early as possible.

 The bank should use easy procedure for the satisfaction of loan to the
customer. There should be less number of legal formalities.

 Although the interest rates on specific norms, yet customers seek uniform
interest rate giving equal justice to both the existing as well as new customers.

 Although SBI Bank is a market lender in ‘Home Loan’ sector but they should
innovate their service to attract more people.

 The Bank should drop its tease rates as soon as possible, their customers face
problems in future paying high installment due to their financial problem.

 As the banks provide loan according to the repaying capacity of the customer
and their eligibility, due to which, some customers are not able to get amount
of loan needed by them. So the banks should soften their norms regarding their
loan amount.

 The bank needs to take serious and sincere steps in reducing the processing
times by taking certain measures like using Information Technology to process
the documents.

99
9.3 CONCLUSSION

 In my study we came to know that many peoples are interested to take a home
loan form SBI to construction, renovation of their homes and purchase of their
own house.

 Home loans have long period when compare to other loans. So peoples are
confused to take a home loan.

 Even though the interest rates are high, peoples are willing to take a loan from
SBI due to some reasons.

 The interest rates also some what compare to other banks

 The loan sanction process is low when compare to other banks.

 For disbursement process is also it will take low timer when compare to other
banks.

Finally the whole research was carried out in a systematic way to reach at
exact results. The whole research and findings were based on the objectives.
However, the study had some limitations also such as lack of time, lack of data, non-
response, reluctant attitude and illiteracy of respondents, which posed problems in
carrying out the research. But proper attention was made to carry out research in
proper way and to make accurate conclusion for the SBI which may beneficial for
banks to enhance their customer base.

..

100
CHAPTER 10
APPENDIX

101
  Questionnaire
Dear Sir/Madam

As part of my MBA curriculum, I, Aarti Bhor, am conducting a research

regarding the Home Loans of SBI for which I need your personal views regarding SBI
Home Loans services in shape of a questionnaire designed by me. The data being
collected are solely for academic purpose. I request you to kindly extend your co-
operation.

1. Name:

2. Age of the Respondent:

a. Below 30 Years c. 30-40 Years

b. 40-50 Years d. Above 50 Years

3. Gender of the Respondents.

a. Male b. Female

4. Occupations of Respondents.

a. Student b.
Professional
c. Self-Employed d. Salaried
e. Others

5. Family Size of Respondents.

a. 1-4 d. 4-6
c. Above 6

102
6. Number of Earning Members in Respondents Family.

a. One Member b. Two Members

c. Three Members d. More Than Four
Member

7. Monthly Income of Respondents.

a. Below ₹ 20,000 b. ₹ 20,000 To ₹

50,000
c. Above ₹ 50,000 d. No Income

8. Do You Own A Home?

a. Yes b. No

9. From where you get Information about the Home Loan Scheme?

a. Newspaper b. Friends/Relatives
c. Internet d. Agents

10. How much Home Loan Amount you took?

a. Less than ₹ 1 Lac b. ₹ 1 To ₹ 5 Lac

c. ₹ 5 To ₹ 10 Lac d. More Than ₹ 10 Lac

11. What was the Need for Home Loan?

a. Construction of Home b. Purchase of Home

c. Renovation of Home

103
12. What Problems did you face while getting Home Loan?

a. Lack of Knowledge
b. Procedural Delays & Non-Corporation
c. Less Amount Sanction
d. Any Other

13. While taking Home Loan which things Attract you the most?

a. Interest Rate b. Service Provided

c. Payback Period d. Schemes

14. How do you find the Interest Rate charged upon the loan available?

a. Excellent d. Average
c. Good

Thank You.

104
 CHAPTER 11
BIBLIOGRAPHY

105
  Bibliography

 The material supplied by Faculty Guide.

 Newspaper

 The Times of India.

 Financial Express.

 Web Resources

 www.wikipedia.org
 www.statebankofindia.com
 www.online.sbi.com
 www.businessworld.com
 www.indiahounsing.com
 www.del4loans.com
 www.apnaloan.com
 www.acdemia.com
 https://m.economictimes.com
 www.scribd.com
 www.slideshare.net

106