CHAPTER 1 AN INTRODUCTION Here lies a question that a person who does not have a good amount of money at particular

time has no right to see dreams? Is he not authorized to fulfill his desires on time? Should he stop dreaming? No, because there is solution for these queries. Loans Are available for these purposes only. Loans are provided to people for such critical circumstances which may occur at any time. In anyone's life a situation may come when all of sudden he may require cash. A moment when you do not want to borrow money from you relatives. There may occur any kind of emergency when you need huge amount of money. There are various types of loans like home loans, personal loans, student loan, business loan etc. You can take any type of loan you need. For each and every kind of need, Loans are available with the banks to suit him.

Personal loans are available for general home purposes like buying a luxurious car, going for a holiday trip, educational purpose, home improvement, wedding ceremony, etc. Many of your desires can be fulfilled by this loan. Housing loans are available for personal requirements like, purchasing a home, renovating the home etc.To start a new business you require a huge amount of money. A person willing to setup a business may not have that much cash which can meet
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out his requirements. For this business loans are available. You can get business loans to start and well establish a new business in market. Whatever may be the kind of loan, all have full fledged facilities. All kind of loans have their own importance. Above all, need of money explains the importance of loan. Appling for loan is very easy. Apply for that loan whichever is needed to you. But before applying you should go through different lender's policies and apply for that lender which is beneficial for you. Different lenders have different policies. If you get loan for long term with low rate of interest then it is beneficial for you. Due to competition, lenders are trying their best to attract people by providing different schemes which in turn is good for people. Banks just try to study the equilibrium of the loan in a particular market at a particular time. This makes the banks to get the perfect rate of interest for a loan. They also study what the other banks has to offer. This indirectly helps the common man who has different options and due to competition he will get a cheaper loan.

ABOUT THE PROJECT:

1. Title Of The Project-: The present study is titled as A PROJECT REPORT ON LOAN PRODUCTS A COMPARATIVE STUDY and it was done with a special reference to the STATE BANK OF INDIA & DOMBIVLI NAGARI SAHAKARI BANK. 2. Objectives-: To find out the various type of loan products which bank offers. To know the importance of loans in the life of a common man. To find out the documents needed by a bank for a particular loans also the tax benefits earned by a person for taking a loan. To study the interest rates of asked by the bank for different loans. 3. Data and Methodology-: For the purpose of this comparative study on LOAN PRODUCTS both primary data and secondary data were used. Primary Data -: Visit to the banks, Interview with the branch managers and staffs of both the banks. Secondary Data-: Books, websites, newspapers, pamphlets. 4. Limitations of this study-: All the limitations related to a comparative study is applicable to this project.
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CHAPTER LAYOUT

CHAPTER I CHAPTER II

-: -:

Introduction to the topic & the report Profile of the bank Theoretical view of Bancassurance Comparative study of the Bancassurance Conclusion

CHAPTER III -: CHAPTER IV -: CHAPTER V -:

CHAPTER 2 PROFILE OF THE SBI & DNSB State Bank of India Bank Profile

State Bank of India (SBI) is the largest Indian banking and financial services company (by turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. The government of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.

The origin of state Bank Of India The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first jointstock bank of British India sponsored by the Government of

Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy

Establishment Of State Bank Of India. The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially upto the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the investible resources of the banks.The
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three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, fourfifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Board Of Directors Sr. Name No. 1 2 3 4 Shri Pratip Chaudhuri Shri Hemant G. Contractor Shri Diwakar Gupta Shri A. Krishna Kumar Designation Under Section of SBI Act 1955 19 (a) 19 (b) 19 (b) 19 (b)

Chairman Managing Director Managing Director Managing Director

Branches Of State Bank Of India & Its ATMS

State Bank of India has 131 foreign offices in 132 countries across the globe.
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 SBI has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman of State Bank Shri O.P.Bhatt on 31 March 2011, the day of his retirement); and SBI group(including associate banks) has about 45,000 ATMs. SBI has 26,500 branches, including branches that belong to its associate banks. SBI includes 99345 offices in India.

International presence As of 31 December 2009, the bank had 151 overseas offices spread over 32 countries. It has branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA.

The State Bank of India is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bankits main competitors

Dombivli Nagari Sahakari Bank (DNSB) Bank Profile Origin & Establishment of The Bank Way back in 60s Dombivli was a town with a population of 2 to 3 lacs. The traditional houses, chawl type structures, small bunglows (popularly known as "wadas") muddy roads was the introduction of the town. The population mainly comprised of office goers and small traders at that time. Few enthusiastic persons gathered together with a common goal to make available the banking facility to the common man of the commonest. They had an aim that any person in need of genuine financial difficulty should have a source for raising loan and such person should not be a prey of traditional moneylenders. The dream of these persons came into existence by bearing a name i.e. Dombivli Nagari Sahakari Bank Ltd. on 6th September 1970. Now, in retrospection, it is really incredible to note that the Dombivli town has grown up as city with population of 10 to 12 lacs. "Wadas" and "chawls" lost their existence and numberless new multi storied buildings have occupied their floors over a period of last 25 to 30 years. The outlook of Dombivli town has entirely undergone change.

Dombivli Nagari Sahakari Bank did not lag behind. Its roots spread all over the Dombivli land and blossomed in the form of ten branches, not to mention that the bank The ownership of Dombivli Bank is being trusted upon the shoulders of almost 46,601 shareholders who are the respected members of bank. The "Scheduled Bank" status was conferred upon Dombilvli Bank by Reserve Bank of India in 1996 a recognition in the entire banking industry. Today Dombivli bank has not restrained itself only to banking services, but is also committed for extending financial help for noble causes to many of the social, educational, and cultural institutions of the community at large. Bank passes on 1% of its net profit to such deserving institutions for their inherent growth and development. History And Evolution The bank, which had a deposit base of some Hundreds of rupees in the initial years, has registered a deposit figure of Rs. 1002.65 crores. The same progress applies so far as loan and advances are concerned. It has so far assisted thousands of people from all walks of life by lending Rs. 662.79 crores.

The ownership of Dombivli Bank is being trusted upon the shoulders of almost 46,601 shareholders who are the respected members of bank

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The "Scheduled Bank" status was conferred upon Dombilvli Bank by Reserve Bank of India in 1996 a recognition in the entire banking industry. Today Dombivli bank has not restrained itself only to banking services, but is also committed for extending financial help for noble causes to many of the social, educational, and cultural institutions of the community at large. Bank passes on 1% of its net profit to such deserving institutions for their inherent growth and development. Board Of Directors The Board of Directors of today is desirable combination of well educated and positioned persons having vast experience in various fields including banking. They have a good part to play in many of the social activities of Dombivli and country. Mr. Jayant Balkrishna Pitre - C.A., DISA Mr. Achyut Madhusudan Karhadkar B.Com Mr Uday Madhusudan Karve - C.A., L.L.B. (General) Mr. Ganesh Harihar Nayak - B. Sc. Chairman Vice Chairman Director Director

The hands of the members of the Board of Directors are further strengthened by four hundred and odd numbers of employees who are the real chariot pullers.

Branches And ATM Centres

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Main Branch -: Keshav Smruti, Manpada Road, Opp.,K.D.M. Corporation Office, Dombivli (East), Dist - Thane , Maharashtra, India 421 201 There are in all 36 branches of Dombivli Nagari Sahakari Bank extending from dombivli, Ambernath, Shahapur , Jalgaon, Nagpur, Bhiwandi, Thakurli, Badlapur, Etc.. There are in all 20 atm centres of the DNS bank combining in all these places.

CHAPTER 3

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THEORITICAL VIEW

What Is A Loan?
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.

Various Types of loans...

1. Secured Loans 2. Unsecured loans 3. Pure Discount Loans 4. Amortized loans.
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5. Fixed rate loan.( a loan with fixed rate of interest) 6. Adjustable Rate Mortgage Loans. Of All These Two Important Types Of Loans Are ....... 1. Demand Loans 2. Term Loans.

Demand Loans.
A fixed amount is advanced to the borrower initially for a specific purpose for a short period ( upto 1 year). No subsequent drawals are allowed to the borrower as the loan is a one time facility subject to periodic or lump sum repayment along with the interest applied to the account monthly or quarterly. Another loan may be granted by opening a fresh account and obtaining a fresh documentation.

Term Loans.
Term loans are granted mainly for acquisition of fixed assets (Land & Building, Plant & Machinery, Equipments etc.) to set up a new industrial unit , or for financing the modernization, expansion or diversification of an existing unit. Term loans are of two types Medium Term 3-5 years Long Term -- over 5 years.

Loan Products.

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A bank provides with many types of loan products to the customers. In this competitive world of modern banking and globalised market for banks , the banking sector are on the verge of producing new and new innovative and simple loan products so as to satisfy the customer and to maintain themselves in a good position in this market. There are many loan products in the market . some of them are given below.

HOME LOANS / HOUSING LOANS

Home loans are also termed as mortgage loans. A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.
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A home buyer or builder can obtain financing (a loan) either to purchase or secure against the property from a financial institution, such as a bank, either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably. There are many types of home loans available in the banking sector like Home Purchase loan ,Existing Home Improvement loan, Home Construction loan, Home extension loan , Home Conversion loan, land purchase loan,Stamp Duty Loan , NRI Loans.etc,etc,.

Home Purchase Loan -

This is the basic home loan for the

purchase of a new home. This is given on the basis of the house document which is kept as a collateral security with the bank. Home Conversion Loan This is given to those who have The Home

financed Present home with a loan and wishes to purchase another home for which extra funds are required. Conversion Loan allows the borrower to transfer the existing loan to the new home loan , which includes the extra amount required, thus doing away with the need to pre pay the previous loan. Home Loans For NRIs - Non Resident Indians (NRI ) can take loans for building a house or for buying a plot or house in the country. Every bank follow the RBI guidelines to define NRI.

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"An Indian citizen who holds a valid Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI." Interest rates for NRI loans do not vary much from that of the Indians living in this country. But the loans will be sanctioned only for a shorter period. NRIs will get only 85% of cost of home as loan amount. The size of the loan depends upon the borrower's repayment capacity. Up to 36 times of the gross monthly earnings of the applicant may be issued as loan. However, there is a maximum limit. Calculation of eligibility is same as that of Indians living in the country. Eligibility terms required for home loans The primary concern of a housing finance company is to determine the loan amount that the borrower is comfortably able to repay. The repayment capacity is determined by taking into consideration factors such as income, age, qualifications , no. of dependants, spouses income,, assets, liabilities, stability, continuity of occupation and savings history..

Tax Benefits Tax benefits are available to the borrower of the loan as under-

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1. Exemption under section 80 of IT Act for repayment of principal upto Rs 1,00,000 alongwith other investments. 2. Deduction under section 24 of IT Act for interest payment on housing loans upto Rs 1,50,000 (in respect of self occupied house property acquired or constructed with capital borrowed on or after 1.4.99, and acquisition or construction is completed within 3 years from the end of the financial year in which the capital was borrowed).

Education Loans

An education loan is a form of financial support from any bank or financial institution that enable a student for taking higher education. Availability of the education loan, at the appropriate time will help millions of deserving bright young Indians to achieve their dreams come true. All graduation, post-graduation and professional courses from institutes approved by the state and central government and also from foreign universities are eligible for a loan. Several institutes/ colleges have tied up with various banks, for the benefit of prospective students. For studies in India one can get loans up to Rs.7.5 lakh and up to Rs. 15 lakh for studies abroad.

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Before giving the loan, banks study the viability of the borrower based on personal discussions with the student, family's assets and annual income, the nature of the course and reputation of the institute. In most banks for loans up to Rs. 4 lakh no collateral or margin is required and the interest rate will not exceed the Prime Lending Rates (PLR). For loans above Rs. 4 lakh the interest rate will be PLR plus 1 percent. PLR is a term used to refer the interest rate of the bank and it may vary with each bank. Some banks offer lower rates to women students or those from specified institutions.Security to the loan depends on the amount. Security is some form of investment (i.e bank deposits, house property etc) that are surrendered to the bank while taking the loan. Security is not needed for loan amounts up to Rs. 4 lakhs. Instead of security, some bank may ask for a third party guarantee ( guarantor) for higher loan amounts. There is no need to repay the loan while studying. The repayment starts after you have finished the course or started working. The repayment cannot be delayed for years after the completion of course. The loans are to be repaid over a period of 5 to 7 years with provision of grace period of one year after completion of studies. Eligibility terms required for Education Loans The primary requirement for educational loan is that the student should have got admission in the course for which he is seeking the loan . most banks also specify an age criteria such as 16 26 years

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For loans above Rs 4 lakhs , most banks require a margin amount of 5% for studies in India and 15% for studies abroad , to be borne by the applicant . Tax Benefits Under section 80 E of the it act from the assessment year 2006-2007. deduction will be allowed in respect of interest on loan taken for educational purposes . This deduction is allowed for a maximum period of 8 years or till the interest is paid whichever is earlier.

Personal Loan
A personal loan is a short-term loan to assist you with your finances. This payday loan is secured against a future paycheck. These loans have become quite popular today, and now this is the main way to get financial assistance in the form of a cash advance. A personal loan is a type of debt which is made for personal, family, or household use, and which is neither a business loan nor a long-term mortgage loan. The lender loans money to the borrowers. The borrowers pay back this amount, usually but not always in regular installments. This service is generally provided at a cost, which is referred to as interest on the debt. With a personal loan one can meet his financial requirements. Be it any ceremony in the family, a surprise gift or a grand vacation, personal loans provide a helping hand. The personal loan helps to take care of all kinds of expenses in a short time period. This type of loan usually covers travel expenses, holiday

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expenses, medical expenses, marriage expenses, honeymoon expenses or any other personal type expenses.

Personal Loan is of two types -: 1. Secured Loans 2. Unsecured Loans. Eligibility terms for Personal Loan The take home salary of the borrower should be of more then Rs. 8000 per month. The borrower should be of more than 21 years of age and less then 58 years of age. Loan eligibility is determined primarily by the borrowers capacity to repay the loan .The bank usually ensures that the EMI does not exceed 30-40% of the net take home salary .The maximum amount of loan sanctioned is usually in the range of about 11 times the net take home salary , which is arrived at after deducting other normal household expenses and outflows such as any EMI on other loan and regular outflows. Documents required-: 1. Salary proof. 2. Bank Account Statements. 3. Latest Credit card statement. 4. Proof Of Residence.
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Tax Benefits Tax benefits on personal loans are not available to salaried employees .However self employed persons may avail of tax benefits on the interest amount paid if the loan is for professional purposes.

Loan for Pensioners

Loans are worthwhile when someone is in immediate need of financial assistance. In earlier days senior citizens were usually deprived of regular loans because of their inability to show proof of a regular income. But the scenario has been changed now and banks are taking care of economical independence of retired individuals by offering a unique pension loan.

Pension loans are of two types. Pensioners loan and Mortgage loan for senior citizen. Through Pensioners loan, a senior citizen can take a loan against their Pension, fixed deposits, National Savings Certificates, Kisan Vikas Patras, Life Insurance Polices and RBI Relief Bonds etc where mortgage loan demands collateral in the form of an asset such as a home or land. The maximum age limit of a pensioner to apply for a loan is 70. The main advantage of this loan is its low interest rate. The maximum amount of loan avail may varies from bank to bank and depends upon individuals repayment capacity. This loan shall be disbursed through Savings Bank A/c other than the account in
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which your pension is credited every month. Loan prepayment charges and processing fees are free. These loans can be prepaid any time without any penalty. Documents required for Pension Loans are: 1. 2. 3. 4. Proof of Identity Address Proof Last 6 months Bank Statement or Bank Passbook. Proof of Retirement and the organization last worked for,

including the Pension Slip.

AUTO LOANS/ CAR LOANS

A car title loan is a loan where the borrower provides their car title as collateral for a loan.

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These loans are typically short-term, and tend to carry higher interest rates than other sources of credit. These loans have higher interest rates than other sources of credit because the lender typically does not check credit and that the only consideration for the loan is the value and condition of the vehicle. Most loans can be acquired in 15 minutes or less on loan amounts . In addition , many lenders verify that the borrower is employed or has some other source of regular income. The lenders do not generally consider the borrower's credit score. The loan is secured by the title to the vehicle. The maximum amount of the loan is determined by the collateral. Typical lenders will offer up to half of the car's resale value, though some will go higher. The borrower must hold clear title to the car; this means that the car must be paid in full with no liens or current financing. Most lenders will also require the borrower to have full insurance on the vehicle. Depending on the state where the lender is located, interest rates may range from 36% to well over 100%. Payment schedules vary but at the very least the borrower has to pay the interest due at each due date. At the end of the term of the loan, the full outstanding amount may be due in a single payment. If the borrower is unable to repay the loan at this time, then they can roll the balance over, and take out a new title loan. Government regulation often limits the total number of times that a borrower can roll the loan over, so that they do not remain perpetually in debt.

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Types of car loan 1. New Car Loan- This is the most opted for as it provides a simple loan for purchasing new car. 2. Used Car Loan.- This is a loan facility offered on second- hand car purchases. This involves valuation of the car being purchased by certified valuers of used cars. 3. Auto Refinance.- This is a loan facility given on an existing car owned by the borrower provided that the car is not hypothecated to any financier.

Eligibility terms for Car Loan. Typically most financiers have similar eligibility criteria for car loans . the age of the borrower should be between 21- 58 years. Annual income should be above Rs. 60000. The size of the loan amount sanctioned depends on the cost of the vehicle, the type of car and percentage financing that is offered. A new car can get upto 90% financing. Used cars get lower financing. Depending on the model and its resale value , the financing amount on used cars could go up. Tax Benefits Salaried employees can not avail of tax benefits on the loan taken. However , self employed persons can avail of tax benefits on depreciation as well as on the interest paid on the amount borrowed for the purchase of the vehicle.

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CHAPTE R4 A COMPARATIVE STUDY OF THE REPORT State Bank Of India Loan Products Home Loans State Bank Of India Offers many types of home loans .SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMES in accordance with SBI's commitment to Environment protection. Some of the SBI home loan products are-: 1. SBI MAXGAIN. This loan is termed as a type of overdraft loan. An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost. The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account. The product serves to minimize your interest cost by enabling you to park your surplus funds in SBI-Maxgain (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues.

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Minimum Loan Amount: Rs.5 lacs Maximum Loan Amount:Rs.1 Crore Interest Rates Loan Amount Linkage with Base Rate Present over the tenor of the Effective Rate loan Upto Rs. 30.00 lacs 1.00% above Base Rate Above Rs. 30.00 lacs 1.25% above Base Rate and upto Rs. 75.00 lacs Above Rs. 75.00 lacs 1.75% above Base Rate 11.25% p.a. 10.50% p.a. 10.75% p.a.

(Base Rate= 9.50%p.a.) 2. NRI Home Loans HOME LOANS TO NON RESIDENT INDIANS (NRIs) AND PERSONS OF INDIAN ORIGIN (PIOs HOLDING A FOREIGN PASSPORT)

Loan Amount The loan amount is to be determined on the basis of repayment capacity taking into account income, age, assets and liabilities, qualifications, stability of occupation, and employment prospects on return. The loan amount is subject to the following: Minimum: Rs. 3 lacs.

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Maximum: Maximum permissible loan amount would be determined by EMI/NMI ratio criteria as applicable to regular Home Loans scheme for Resident Indian customers, which is 30% for Net Annual Income (NAI) upto Rs.2 Lac, 50% for NAI above Rs.2 Lac and upto Rs.5 Lac, 55% for NAI above Rs.5 Lacs and upto Rs.10 Lacs, 65% for above Rs.10 Lacs.

Education Loans EDUCATION LOANS (SBI STUDENT LOAN SCHEME) A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. Courses which are eligible for Educational Loan In State Bank Of India-: a) Studies In India.

Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities UGC/AICTE/IMC/Govt.etc. approved by

Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc Teacher training/ Nursing courses approved by Central government or the State Government.

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Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping.

Vocational Training and skill development study courses will not be covered under the Education Loan Scheme, as the scheme is framed to provide bank loans for higher studies.

b) Studies In Abroad.

Graduation/ universities.

Post-graduation

for

job

oriented

professional/ technical courses offered by reputed

Expenses considered for loan Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course) Travel Expenses/Passage money for studies abroad Purchase of computers considered necessary for completion of course Cost of a Two-wheeler upto Rs. 50,000/

Amount of Loan

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 For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs Repayment Tenure Repayment Period (in years) 5-7 Years 5-7 Years

Place Of Study Studies in India. Studies Abroad.

Loan Amount Rs. 10.0 Lakhs Rs. 20.0 Lakhs

Security Upto Rs 4 Lakhs --: Above Rs. 4 lakhs To Rs 7.5 Lakhs --: Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the networth/means of parent/s who would be executing the documents as "joint borrower". Above Rs. 7.5 lakhs--:Tangible collateral security of suitable value along with the assignment of future income of the student for payment of installments. No Security

Loan Amount For loans Rs.4 lacs

Rate of Interest upto 3.75% above Base Rate, currently 13.25%

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p.a. Above Rs.4 lacs 5.25% lacs Above lacs Rs.7.50 p.a. 4.25% p.a. above Base Rate, currently 13.75% above Base and upto Rs.7.50 Rate, currently 14.75%

Personal Loans State Bank Of India Offers personal loan in the form of-: XPRESS CREDIT PERSONAL LOAN State Bank Of India provide personal loans to the employees of specific companies (mentioned below) at zero margin, low security, very competitive interest rates with fast and easy processing.

Advantages Of This Loan-:

Low interest rates. Further, charge interest on a daily reducing balance!! Low processing charges; only 2%-3% of loan amount. security required which means minimal documentation

No

Long repayment period of up to 48 months. Purpose of This Loan-: The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any
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financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.) Eligibility-: One is eligible if he is a Salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing. Loan Amount-: Ones personal loan limit would be determined by His/Her income and repayment capacity. Minimum : Rs.24,000/- in metro and urban centre Rs.10,000/- in rural/semi-urban centres Maximum : 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lacs in all centres. Interest Rates Are Applicable Like The Following-: 8. 50% above Base Rate floating, currently 18.00% p.a. Processing Fees-: Processing charges are 2-3% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges. Repayment Terms-:

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The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty. Loan To Pensioners A new scheme SBI Loan to Affluent Pensioners is formulated to match the requirements and higher repayment capacity of those with higher salaries and pensions The salient features of SBI Loan to Affluent Pensioners scheme are as under:SBI Loan to Affluent Pensioners. Eligibility-: (a) Pensioners: (i) All Central, State Government pensioners and SBI Pensioners whose pension accounts are maintained by our branches. (ii) Pensioners whose pensions are disbursed by Govt. Treasuries by cheques drawn in favor of our branches as per mandate of the pensioner are also eligible subject to condition that pensioner should not be more than 72 years of age (b) Family Pensioners: Family pensioner, i.e. spouse authorized to receive pension after the death of the pensioner, subject to condition that family pensioner should not be more than 65 years of age. Loan Amount-:

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(a) Pensioners: Maximum of 12 months net pension with a ceiling of Rs.3.00 lac (b) Family Pensioners: A maximum of 9 months net family pension with a ceiling of Rs.1.50 lacs In no case the EMI should be more than 25% of the net pension drawn by the family pensioner. Repayment Period: In EMIs commencing from the pension payable one month after disbursal of loan. Installment is deducted at the time of payment of pension:

Age at the time of loan sanction Up to 70 years 70-72 years

Repayment period 36 months 24 months

Age at the time of full repayment 73 years 74 years

Interest Rates Are Applicable As Follows-:8. 50% above Base Rate floating, currently 18.00% p.a. Car Loans/Auto Loans SBI Advantage Car Loan Scheme SBI provide the best car loan scheme for you for high end car with loan amount Rs 5 lacs and above.

Salient features:

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No Advance EMI; Longest repayment tenure (7 years); Lowest interest rates ( there are further concessions for

Corporate Salary Package accounts) ; Purpose For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs with minimum loan component of Rs. 5.0 lakh and above. Eligibility-:

Individual between the age of 21-65 years of age. Regular employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment .Professionals,self-employed.

Dombivli nagari sahakari bank Loan Products.

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Home Loans Sukh Vastu Housing Loan Schemes Loan Amount-: Up to Rs.20.00 Lacs per beneficiery of a dwelling unit. Collateral-: Assignment of Single Premium Term Insurance Policy on the life of the proponent/s - sum aswsured should be sanctioned with term should at least minimum up to the repayment period. Eligibility-: Salaried person & Self-professionals 80% of cost of registration + Registration Charges & Stamp duty. Repayment Period-: The Repayment Can be Done at the maximum time of 15 years. Interest Rate-: Rs. 10.00 Lacs 10.00% p. a. Above Rs. 10 Lacs-Rs. 20 Lacs 11% p.a.

Margin.

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 15% for first purchase of a flat/house in new building

20% for purchase of a flat/house under resale, in a building not older than 10 years. 25% for purchase of flat/house, under resale in a building older than 10 years, but not older than 30 years.

No advance to be sanctioned for purchase of flat / house in a building older than 30 years. Mortgage Loan Scheme

Purpose Repairs of house, Purchase of Consumer durable, Business Expenses etc., Eligibility -: Any Individual Loan Limit -: 30.00 lacs - Margin 30% of valuation of commercial property - 20% of market value of residential flat Repayment Period -: 84 Months Security - Mortgage of property Interest Rate 13.5 % p.a. Education Loans

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Suvidya Education Loan Scheme. Purpose Educational Purpose - For Higher Education in India or aboard Eligibility Student + Parents / guardian as co-applicants Loan Limit Max 20.00 Lacs - Studies in India - 10,00 Lacs - Studies in abroad - 20.00 Lacs Margin 10 % for both studies in India and Abroad Repayment Schedule Maximum 60 Months excluding - moratorium period Moratorium Period - Duration of course + 6 months Guarantors Minimum two guarantors of age not more than 50 years. All the deductions including prosed EMI should not exceed 65 % of Gross total income. Security - 1Up to Rs. 2.00 Lacs - Clean

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Above Rs.2.00 lacs Tangible security or immovable propertyvalue to cover 100% of loan amount + single premium Insurance policy on the life of student of sum assured not less than loan amount for all students whether going abroad or not. Interest Rate Upto 10 Lacs - 11.50 % Above 10 Lacs to 20 Lacs - 12.50 % If Interest funded during the moratorium period then additional 1% to be charged PERSONAL LOANS-: The DNS Bank Provides Personal Loan In form of two parts: 1. Suvidha Easy Loan Scheme 2. Utsav Loan Scheme. Suvidha Easy Loan Scheme

Purpose Repayment of old Debts, Ceremonial, Medical Expenses, Tourism Loans. etc., any other purpose acceptable to Bank

Eligibility

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Any Individual Loan Limit - Maximum Rs. 5 Lacs Repayment Schedule - 60 months Guarantors Two Interest Rate-: Up to 2 Lacs ,Salary Deduction - 15 % p.a. &, Others - 16 % p.a. Above 2 Lacs & Up to 5 Lacs Salary Deduction - 15 .50% p.a. & Others - 16.50 % p.a Utsav Loan Scheme Purpose-: For purchase of T.V., Fridge, Two wheeler & all consumer durable items. Eligibility-: Salaried person & Self-professionals Loan Limit-:Maximum Rs. 1 lacs Repayment Schedule -: Maximum 36 Months Guarantors -: Two Security -: Hypothecation of Article purchased Interest Rate -:

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Salary Deduction - 15 % Others - 16 % Vehicle Loans-: Safar Vehicle Loan Scheme. Purpose-: For purchase of New / Old (second hand 4 Wheelers Vehicle) Eligibility-: Any Individual Margin -

10 % of invoice price (i.e. the cost of vehicle + RTO Registration +Tax+ Insurance) 50% (If aggregate price is less than valuation then 50% of the Agreement to be considered) Repayment Period-: Max 60 Months, For Second hand Vehicle, 36 Months. Guarantors - Minimum one acceptable to the ban Security Hypothecation of new / Second hand vehicle (as the case may be)

Interest Rate -:

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A)Loan Upto Rs.25 Lacs : 12% B) Loan above Rs. 25 Lacs : 12.50% Vehicle Loan For Two Wheeler., Purpose -: For Purchase Of Old And New Two Wheeler. Margin-: Nil -Up to Rs. 50,000/- and 10 % p.a. above Rs.50,000/Repayment Period-:Max 60 Months, Guarantors - One guarantor of good means acceptable to the bank Security-: Hypothecation of the proposed vehicle to be acquired through bank finance Interest Rate -: Maximum Upto 1 Lakhs 12 %

CHAPTER 5 CONCLUSION
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The loan system in India has been on the verge of rising due to the change in the mindset of Indian people, who once were afraid of taking loans as they feared that what will the banks do if the money isnt returned back. Nowadays the people in India want to increase their own standard of living even though their financial conditions are weak. For the purpose of satisfying their dreams they contact the bank for the loan. The interest rate in Indian loan products is about 11% in home loan , in the case of education loan the interest rate is about 10 13 % . The SBI banks interest rates are a bit expensive as compared to that of the rate in the DNSB BANK. But the SBI offers various products and special services to the customers and also the loan amount is more in the SBI. In education loan the maximum repayment period given by SBI is upto 48 months , DNSB gives maximum repayment period upto 60 months excluding moratorium period. In a car loan the SBI provides loans with minimum amount of Rs. 5 lakhs, DNSBs , minimum limit is just Rs. 50000. After doing this project I got to know what are the documents needed for an application of the loan, which is a very important gain which I got from this project. Before I started the project I had very less information of documents required. In a life of a common man the loan plays a very important role because he can buy a roof for himself buy the way of buying an
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home loan. This will make his life better not only will he get a house but will also increase his standard of living. If he wants to educate his son/ daughter he can give them better education facility. For the banks the loan are an important form of income as no person in this world can live without having money and to have that they have to approach the bank. So the banks main function is the giving loans. This project has given me a lot of information related to the loan by talking to various branch managers and the staffs. This has given me confidence that the future of banks in India will very bright as in a population of more than 1 billion everyone needs money.

BIBLIOGRAPHY-:
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BANKING PRODUCTS AND SERVICES - INDIAN INSTITUTE OF BANKING AND FINANCES LOAN AND FINANCIAL SERVICES SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT - VIPUL PRAKASHAN

WEBLIOGRAPHY-:
www.sbi.co.in www.dnsb.co.in en.wikipedia.org www.apnapaisa.com www.bestloan.com

ANNEXURE.

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1. What are the various types of loans does the banks provides to the customer? 2. How many Types of home loans do u provide? 3. What are the interest rates do the banks charge for providing home loan? 4. Is there any services for NRIs? 5. What is the maximum amount of loan does the banks gives for home hoan? 6. Which are the courses for which education loan is available? 7. What are the expenses considered under education loan? 8. What is the maximum amount given under education loan and what is the repayment period? 9. what is the interest rates in education loan? 10. What is the interest rates applicable in personal loan? 11. What are the processing charges in education loan? 12. What is the repayment period? 13. What is the minimum amount of loan shall be asked for a loan ? 14. What is the interest rates applicable in car loan? 15. What is the eligibility for car loan? 16. Is any security needed for the car loan other than keeping the car itself?

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