Obc Home Loan

ORIENTAL HOME LOAN
COMPANY PROFILE
1
ORIENTAL HOME LOAN
ORIENTAL BANK OF COMMERCE
Oriental Bank of Commerce is an India-based bank established in Lahore (then a city
of British India, and crrently in !akistan", is one of the #blic sector banks in India$
Oriental Bank of Commerce
Type !blic (B%E& '(()*',N%E& ORIENTBAN+"
Ind!try Bankin,
-inancial ser.ices
Fonded */ -ebrary */0)
"ead#arter! Ne1 2elhi, India
Key people %$L$Bansal
(3hair4an 5 M2"
Prodct! In.est4ent Bankin,
3ons4er Bankin,
3o44ercial Bankin,
Retail Bankin,
!ri.ate Bankin,
Asset Mana,e4ent
!ensions
Mort,a,es
3redit 3ards
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ORIENTAL HOME LOAN
Re$ene Rs$ **0'6$*6 3rore (7(*("
Net income Rs$ **)0$89 3rore (7(*("
Total a!!et! Rs$ 97)6$/'9 3rore (7(*("
Employee! *',)'9 (7(*("
%e&!ite 111$obcindia$co$in

3
ORIENTAL HOME LOAN
"I'TORY
Oriental Bank of 3o44erce 4ade a be,innin, nder its -ondin, -ather, Late Rai Bahadr
Lala %ohan Lal, the first 3hair4an of the Bank$ :ithin for years of co4in, into e;istence,
the Bank had to face #artition$ Branches in the ne1ly for4ed !akistan had to be closed do1n
and the Re,istered Office had to be shifted fro4 Lahore to A4ritsar$ Late lala +ara4 3hand
Tha#ar, the then 3hair4an of the Bank, in a ni<e ,estre honored the co44it4ents 4ade
to the de#ositors fro4 !akistan and #aid e.ery r#ee to its de#artin, csto4ers$
The Bank has 1itnessed 4any #s and do1ns since its establish4ent$ The #eriod of */6(-68
is said to be the 4ost challen,in, #hase in the history of the Bank$ At one ti4e #rofit
#l44eted to Rs$*6', that #ro4#ted the o1ner of the bank, the Tha#ar Hose, to sell = close
the bank$ Then e4#loyees and leaders of the Bank ca4e for1ard to resce the Bank$ The
o1ners 1ere 4o.ed and had to chan,e their decision of sellin, the bank and in trn they
decided to i4#ro.e the #osition of the bank 1ith the acti.e coo#eration and s##ort of all the
e4#loyees$ Their efforts bore frits and #erfor4ance of the bank i4#ro.ed si,nificantly$ This
1as the trnin, #oint in the history of the bank$
The bank 1as nationali>ed on *' A#ril */9($ At that ti4e total 1orkin, of the bank 1as
Rs$09) crores ha.in, */th #osition a4on, the 7( nationalised banks$ :ithin a decade the
bank trned into one of the 4ost efficient and best #erfor4in, banks of India$
The bank has #ro,ressed on se.eral fronts crossin, the Bsiness Mi; 4ark of Rs 7 lacs crores
as on )* March 7(*( 4akin, it the se.enth lar,est !blic %ector Bank in India, achie.e4ent
of *((? 3B%, reorientin, of lendin, strate,y thro,h Lar,e 5 Mid 3or#orates and
establish4ent of ne1 1in,s .i>$, Rral 2e.elo#4ent and Retail 5 !riority %ector$ The Bank
has to its t4ost credit lo1est staff cost 1ith hi,hest #rodcti.ity in the Indian bankin,
indstry$
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ORIENTAL HOME LOAN
C"AIRPER'ON'
The 3hair#ersons (3M2"of the banks 1ere as nder&
%l No Na4e !eriod
*$ +ara4 3hand Tha#ar */08 to */8*
7$ L$ M$ Tha#ar */8* to */8/
)$ R$ !$ Oberoi */6) to */68
0$ M$ +$ @i, */68 to */9)
'$ !$ %$ Ao#alakrishnan */90 to */99
8$ %$ !$ Tal1ar */99 to *//(
6$ %$ +$ %oni *//( to *//8
9$ 2albir %in,h *//8 to 7(((
/$ B$ 2$ Naran, 7((( to 7(('
*($ +$ N$ !rith.iraB 7((' to 7((6
**$ Alok +4ar Misra 7((6 to A,st 7((/
*7$ T$ C$ !rabh A,st 7((/ to Dan 7(**
*)$ Na,esh !aidah Dan 7(** to -ebrary 7(*7$
*0$ %hya4 Lal Bansal March 7(*7 on1ards$
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ORIENTAL HOME LOAN
O(ER(IE%
The bank offers featres sch as internet bankin,, #hone bankin, NRI bankin, etc$ Ho1e.er,
it does not allo1 online bankin, access fro4 otside India$
The Bank has lanched yet another #eo#leEs #artici#ation in the #lannin, #rocess at ,rass root
le.el essentially to tackle the 4aladies of #o.erty$ The Ara4een !roBects .entre ai4s to
alle.iate #o.erty #ls identify the reasons res#onsible for the failre or sccess$
OB3 is already i4#le4entin, a ARAMEEN !RODE3T in 2ehradn 2istrict (F!"
and Han4an,arh 2istrict (RaBasthan"$ -or4lated on the #attern of the Ban,ladesh
Ara4een Bank, the %che4e has a ni<e featre of disbrsin, s4all loans ran,in, fro4 Rs$
6' (GF% H*$'" on1ards$ The beneficiaries of the Ara4een !roBect are 4ostly 1o4en$The
Bank is en,a,ed in #ro.idin, trainin, to rral folk in sin, locally a.ailable ra1 4aterial to
#rodce #ickles, Ba4s etc$ This has #ro.ided self-e4#loy4ent and a,4ented inco4e le.els
ths refor4in, li.es of rral folk and encora,in, cotta,e indstries in rral areas$
OB3 lanched yet another ni<e sche4e christened EThe 3o4#rehensi.e @illa,e
2e.elo#4ent !ro,ra44eE on the as#icios day of Baisakhi, the *)th of A#ril *//6 at three
.illa,es in !nBab na4ely Rrki +alan (2istt$ %an,rr", RaBe MaBra (2istt$ Ro#ar" and +haira
MaBha (2istt$ Daladhar" and t1o .illa,es in Haryana, na4ely +hn,a (2istt$ Dind" and Nar1al
(2istt$ +aithal"$ The #ilot lanch 1as a ,reat sccess$ E4boldened by the sccess, Bank
e;tended the #ro,ra44e to 4ore .illa,es$ At #resent, it co.ers *' .illa,esI *( in !nBab, 0 in
Haryana and * in RaBasthan$ The #ro,ra44e focses on #ro.idin, a co4#rehensi.e and
inte,rated #acka,e #ro.idin, rral finance to the .illa,ers 1ith @illa,e 2e.elo#4ent as its
focs, ths contribtin, to1ards infrastrctral de.elo#4ent and a,4entation of inco4e for
each far4er of the .illa,e$ The Bank has i4#le4ented *0 #oint action #lan for stren,thenin,
of credit deli.ery to 1o4en and has desi,nated ' branches as s#eciali>ed branches for
1o4en entre#reners$
6
ORIENTAL HOME LOAN
(I'ION ) MI''ION 'TATEMENT
Or (i!ion
To be a sond all India, csto4er centric, efficient bank 1ith conte4#orary si>e,
technolo,y and h4an ca#italI endea.orin, to enrich li.es across all sections of
societyI and co44itted to #holdin, the hi,hest standards of cor#orate ,o.ernance$
Or Mi!!ion
To #ro.ide the finest bankin, ser.ices by #,radin, h4an ca#ital and infsin,
ad.anced technolo,y, thereby achie.in, total csto4er satisfactionI and bein,
reckoned as the JBest BankK in the Indstry on all efficiency #ara4eters$
To enhance shareholdersL 1ealth by ensrin, sond ,ro1th of bsiness and 4ake
.alable contribtions to national econo4ic ,ro1th$
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ORIENTAL HOME LOAN
INTRO*+CTION
8
ORIENTAL HOME LOAN
INTRO*+CTION
Hosin, is one of the best h4an needs of the society$ It is closely linked 1ith the #rocess of
o.erall socio-econo4ic de.elo#4ent of a contry$ India, bein, a hi,hly #o#lated contry,
there is a ,reat need and sco#e for the de.elo#4ent of Hosin, %ector$ Fnfortnately, for
so4e reasons or the other, the hosin, sector in India has re4ained nderde.elo#ed in the
#ast, ho1e.er, it is ho#ed that there 1old be i4#ro.e4ent in the near ftre$
Hosin, is a ,ro1in, indstry$ There is sbstantial ,a# bet1een de4and and s##ly and is
#ersistin, for a .ery lon, #eriod$ Accordin, to an esti4ate by the National Bildin,
Or,ani>ation, the c4lati.e shorta,e of total d1ellin, hoses in the contry by the end of
*//* 1as )* 4illion$ It is frther esti4ated by this or,ani>ation that the de4and for hosin,
1ill be arond 0$'4illion nits, lea.in, a ,a# of one 4illion hosin, nits annally$ Hence,
based #on this esti4ate, the c4lati.e shorta,e of hosin, 4ay reach to 0*4illion nits by
the end of this centry$
!resently, fnds re<ired #er d1ellin, shelter are so hi,h that the indi.idalLs sa.in, is not
ade<ate to 4eet the e;#enditre of hose bildin,$ As a reslt, there is ,reat de4and for
e;ternal hosin, finance$
Hosin, 1as ,i.en de #riority only in */99 1hen a National Hosin, !olicy 1as annonce$
The #olicy reflected the trst that hosin, 1as not 4erely cons4#tion e;#enditre bt also a
#rodcti.e in.est4ent 1hich 1old #ro.ide econo4ic acti.ity in the contry$ Besides this,
the #olicy also en.isa,ed that an i4#ets ,i.en to hosin, 1old sti4late econo4ic
de.elo#4ent thro,h creation of sbstantial e4#loy4ent o##ortnities$ 3onse<ently, the
instittional 4echanis4 for hosin, 1as stren,thened by the establish4ent of National
Hosin, Bank (NHB" by the Reser.e Bank of India$
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ORIENTAL HOME LOAN
IN'TIT+TIONAL FRAME%ORK
The settin, # of the National Hosin, Bank 4arked the ne1 era in hosin, finance as a ne1
fnd based financial ser.ice in the contry$ A lar,e n4ber of financial
instittional=co4#anies in the #blic, #ri.ate and Boint sector entered in this field$ -or
e;a4#le, Life Insrance 3or#oration of India and Aeneral Insrance 3or#oration ca4e 1ith
.arios sche4es for financin, the hosin, nits$ In */6(, Hosin, and Frban 2e.elo#4ent
3or#oration (HF23O", a 1holly ,o.ern4ent o1ned enter#rise, 1as set# 1ith the obBecti.e
of hosin, and rban de.elo#4ent as 1ell as infrastrctre de.elo#4ent$ After that, in */66,
another 3or#oration na4ed Hosin, 2e.elo#4ent -inance 3or#oration (H2-3" 1as set #
in #ri.ate sector$
Hosin, 1as ,i.en de #riority only in */99 1hen a National Hosin, !olicy 1as
annonced$ The #olicy reflected the trst that hosin, 1as not 4erely cons4#tion
e;#enditre bt also a #rodcti.e in.est4ent 1hich 1old #ro.ide econo4ic acti.ity in the
contry$ Besides this, the #olicy also en.isa,ed that an i4#ets ,i.en to hosin, 1old
sti4late econo4ic de.elo#4ent thro,h creation of sbstantial e4#loy4ent o##ortnities$
3onse<ently, the instittional 4echanis4 for hosin, 1as stren,thened by the establish4ent
of National Hosin, Bank (NHB" by the Reser.e Bank of India$
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ORIENTAL HOME LOAN
'TR+CT+RE OF "O+'IN, FINANCE IN*+'TRY
Hosin, -inance

11
Formal Sector
Informal Sector
Household
savings
Disposal of
Existing
properties
Borrowings from
friends, relatives and
money lenders etc.
overnment
Ban!ing
"on#Ban!ing
$entral
ovt.
State
ovt.
%u&lic
'uthorities
$ommercial
Ban!s
$ooperative
Ban!s
(ther
Ban!s
H)D$(
"on#Ban!ing
Finance
$ompanies
*"BF$s+
House Finance
$ompanies
*HF$s+
"on#Ban!ing
Housing
Finance
$ompanies
Insurance
,I$-I$
Speciali.ed
Institution
HDF$
ORIENTAL HOME LOAN
"OME LOAN TYPE'
O1nin, a #iece of land or #ro#erty is a lifeti4e drea4 for e.ery indi.idal$ There are 4any
ho4e loans #ro.ider in the 4arket to 4ake yor drea4 co4e tre$ Bt before yo o#t for any
ho4e loan #ro.ider, yo need to consider certain factors related to #ro#erty that yo are
interested in byin, and also abot the salient featres offered by a ho4e loan #ro.ider and
also stdy so4e Ho4e Loans and Ho4e Insrance -AMs 1hich hel#s in a##lyin, a Ho4e
Loan in India$
And the 4ost i4#ortant thin, is yo shold kno1 abot each and e.ery ter4 related 1ith
Ho4e Loans before a##lyin, for a Loan$ It is al1ays ad.isable to conslt a ho4e loan e;#ert
or consltant before a##lyin, for a ho4e loan or #rchasin, a #ro#erty$
Co can take different ty#es of ho4e loans like Brid,e Loans, Ho4e constrction Loans,
Ho4e E<ity Loans, Ho4e E;tension Loans, Ho4e I4#ro.e4ent Loans, Land !rchase
Loans etc for different sche4es a.ailable in the 4arket$ There are different ty#es of ho4e
loans tailored to 4eet yor needs$
"ome Prc-a!e Loan!& These are the basic for4s of ho4e loans sed for #rchasin,
of a ne1 ho4e$
"ome Impro$ement Loan!& These loans are ,i.en for i4#le4entin, re#air 1orks,
healin, and reno.ations in a ho4e that has already been #rchased$
"ome Con!trction Loan!& These loans are a.ailable for the constrction of a ne1
ho4e$
"ome E.ten!ion Loan!& These loans are ,i.en for e;#andin, or e;tendin, an
e;istin, ho4e$ -or e,,& addition of an e;tra roo4 etc$
"ome Con$er!ion Loan!& These loans are a.ailable for those 1ho ha.e financed the
#resent ho4e 1ith a ho4e loan and 1ish to #rchase and 4o.e to another ho4e for 1hich
so4e e;tra fnds are re<ired$ Thro,h ho4e con.ersion loan, the e;istin, loan is transferred
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ORIENTAL HOME LOAN
to the ne1 ho4e incldin, the e;tra a4ont re<ired, eli4inatin, the need of #re-#ay4ent of
the #re.ios loan$
Land Prc-a!e Loan!& These loans are a.ailable for #rchasin, land for both
constrction and in.est4ent #r#oses$
Brid/e Loan!& Brid,e loans are desi,ned for #eo#le 1ho 1ish to sell the e;istin,
ho4e and #rchase another one$ The brid,e loans hel# finance the ne1 ho4e, ntil a byer is
fond for the ho4e$

13
ORIENTAL HOME LOAN
IN*+'TRY PROFILE
14
ORIENTAL HOME LOAN
"O+'IN, FINANCE IN IN*IA
The Ho4e loan sector in India is the #i-.ital role #layer in the ,ro1th of the real estate
scenario in India$ :ith ta; incenti.es ,i.en to the hosin, finance sector in the annal bd,et
of 7((*, transactions related to byin, and sellin, of residential #ro#erties increased
considerably and 1as 4ch hi,her as co4#ared to #re.ios years$
%ince the ne1 class of byers are relati.ely yon,er set of csto4ers 1ho are 4ore a1are
abot le,al doc4entation and a##ro.als, byers are no1 4ore Eend-sersE rather than
in.estorsI the #ro#erty 4arket in India nder,oes transfor4ation to ali,n itself 1ith ,lobal
standards 1ith an increased e4#hasis on <ality 5 cost control and doc4entation 4ethods$
In the crrent econo4y of India, the real estate sector has the 4a;i44 #ro#ensity to
,enerate inco4e and de4and for 4aterials, e<i#4ent and ser.ices$ It can be said that
hosin, finance co4#anies 1ere for4ed for co-e;istin, 1ith byerEs re<ire4ents of hosin,
loans for in.estin, in #ro#erties$ Ho4e loans are 4ade a.ailable by financial instittions to
both Indian and NRI csto4ers at floatin, and fi;ed rate of interest and also at attracti.e EMI
o#tions$
-or constrction or byin, a ne1 ho4e
-or ho4e re#airs and reno.ations
-or #rchase of #lots
A,ainst 4ort,a,e of #ro#erty
No ta; benefits are a.ailable for NRI csto4ers nless yo file retrns and thereby beco4e
eli,ible to a.ail of the ta; benefits$
Besides ho4e loans, 3o44ercial #ro#erty loans are also a.ailable and different financial
instittions in India #ro.ide co44ercial loans at different rates and different ##er li4its$
Real estate loans are a.ailable to bilders, #ro4oters and real estate de.elo#ers$ The
e;#erience and financial standin, of the bilders is taken into accont before the loan is
15
ORIENTAL HOME LOAN
,ranted 1hich is to be retrned 1ith the 4ini44 install4ents$
Today, the a4ont of 4oney that a city d1eller s#ends on rent is ro,hly the sa4e, or only
sli,htly less than the a4ont he #ays as an EMI on a hosin, loan$ Earlier the ho4e loan
sector in India 1as solely de#endent on nationali>ed and #blic sector banks, bt the entry of
#blic sector banks into the hosin, finance bsiness 4arked the be,innin, of the first rond
of interest rate cts$ And this redction in interest rates has enhanced the borro1in, #o1er of
csto4ers$ Moreo.er, H-3s are offerin, incenti.es to attract in.estors like
%o4e co4#anies sanction the hosin, loan 1ithot re<irin, yo to identify #ro#erty as a
#re-re<isite for eli,ibility
-ree accident insrance 5 #ro#erty insrance
:ai.in, of #re-#ay4ent #enalty
:ai.in, of #rocessin, fee
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ORIENTAL HOME LOAN
There are a fe1 doc4ents 1hich the finance co4#anies re<ire for settin, #
17
%alaried E4#loyee %elf-e4#loyed
The latest salary sli#
sho1in, stattory
dedctions
3o4#tation of inco4e
for the #re.ios t1o years,
certified by a 3hartered
Accontant
-or4 *8 (sho1in, ta;
dedcted at sorce by
e4#loyer"
!rofit 5 Loss Accont and
Balance %heet for the
#re.ios t1o years,
certified by a 3hartered
Accontant
!roof of a,e (birth
certificate=.oter identity
card=#ass#ort=school-
lea.in, certificate=.alid
dri.in, license
!roof of a,e (birth
certificate=.oter identity
card=#ass#ort=school-
lea.in, certificate=.alid
dri.in, license"
!roof of residence (#hone
bill=electricity bill=ration
card"$
!roof of residence (#hone
bill=electricity bill=ration
card"$
ORIENTAL HOME LOAN
CRITERIA FOR ELI,IBILITY OF "OME LOAN'$
The realty boo4 in India has ,i.en a ne1 di4ension to the finance sector in India - both in
Ho4e Loans and Ho4e Insrance se,4ents$ This has not only ,i.en a co4#etiti.e ed,e to
the finance co4#anies to #ro.ide attracti.e o#tions to csto4ers bt has also contribted to
the increased in.est4ents in the real estate sector$ This has reslted in *) ne1 instittions
forayin, into the hosin, finance bsiness in the last three years$

18
MaBor Ho4e Loan !ro.iders
Banks 5
!blic %ector
Hosin,
-inance
3o4#anies
%tate Bank of India, 3or#oration Bank,
!nBab National Bank, 3entral Bank,
2ena Bank, Allahabad Bank, Bank of
Maharashtra, Bank of Baroda Hosin,
-inance, 3an -in Ho4es, AI3 Hosin,
-inance, LI3 Hosin, -inance, !NB
Hosin, -inance, %BI Ho4e -inance,
3entbank Ho4e -inance, HF23O, LI3,
etc$
-inancial
Instittions
H2-3, I3I3I Ltd, 3itibank, H%B3,
%tandard3hartered- Arindlays, I2BI
Bank, etc
ORIENTAL HOME LOAN
*OC+MENTATION RE0+IRE* %"ILE APPLYIN, FOR A
"OMELOAN
:hile sb4ittin, the a##lication for4 for a ho4e loan, lenders ask for doc4ents to
establish the a##licantLs inco4e$
This is backed # by a #roof like co#ies of last three yearLs IN3OME TAN retrns (alon,
1ith the co#ies of co4#tation of inco4e=annal acconts, if any", -or4 *8 or -or4 *8A,
last three 4onthEs salary sli#s of the a##licant, co#ies of the last 8 4onthEs state4ents of all
acti.e bank acconts in 1hich a##licantLs salary or bsiness inco4e details are reflected, etc$
-or self-e4#loyed #eo#le, if the inco4e has increased dra4atically in the #ast year, it is
ad.isable that the a##licant shold ha.e his=her e;#lanation ready as to 1hy they think this is
a #er4anent increase in their inco4e, rather than Bst a one-ti4e aberration 1hich 4ay
decrease in near ftre$ The reason for this is that if the lender is con.inced 1ith the
a##licantLs e;#lanation, then the loan eli,ibility can be considered in relation to the latest
inco4e rather than considerin, the 4ch lo1er a.era,e inco4e$
-or salaried e4#loyees, if the inco4e has increased since the last financial year as sho1n in
their latest salary sli#s, sch increased salary is taken into accont for loan eli,ibility
#r#oses$
19
ORIENTAL HOME LOAN
APPLICANT1' BANK 'TATEMENT' ARE 'CR+TINI'E* FOR T"E
FOLLO%IN,2
Le$el of acti$ity& In case of self e4#loyed #eo#le, this ,i.es a ,ood idea abot the e;tent of
his or her bsiness acti.ities$
A$era/e &ank &alance& A look at the a.era,e bank balances 4aintained in a sa.in,s bank
accont s#eaks a lot abot the s#endin, or sa.in, habits of an indi.idal$
C-e#e retrn!& A s4all char,e debited by the a##licantLs bank in the state4ent indicates
that a che<e issed by hi4 or her 1as retrned by the bank$ Too 4any of sch retrns can
ha.e a ne,ati.e i4#act on a loan sanction$
C-e#e &once!& If che<es de#osited by the a##licantLs are retrned by the isserEs bank,
they 1ill be .isible in the bank state4ent$ All Banks ha.e s#ecific nor4s as to ho1 4any
sch retrns are acce#table in a #eriod of * year$
Periodic payment!& The e;istence of #eriodic #ay4ents to other finance co4#anies or bank
etc indicates an e;istin, liability and the a##licant 1ill needLs to #ro.ide fll details of these
liabilities to the lender$
A/e proof& A##licantLs a,e #roof ha.e to be sb4itted sch as school lea.in,
certificate=dri.in, license=#ass#ort=ration card=!AN card=election co44issionEs card=etc$
Addre!! proof& %i4ilar doc4ents$
Identification proof& %a4e as abo.e, bt 1ith #hoto,ra#hs$ %o4eti4es, the sa4e doc4ent,
if it contains a #hoto,ra#h, the crrent residential address and the correct a,e can be #roof for
all ) thin,s$
Applicant1! employment detail!& If the a##licantLs e4#loyer is not 1ell-kno1n, then a short
s44ary abot the natre of the co4#any, its bsiness lines, its 4ain csto4ers, its
co4#etitors, n4ber of offices, n4ber of e4#loyees, trno.er, #rofit, etc is needed$ Fsally,
the co4#any #rofile that is a.ailable on the standard 1ebsite of the co4#any is eno,h$
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ORIENTAL HOME LOAN
Applicant1! in$e!tment!& This hel#s the bank to esti4ate the a##licantLs ability to #ay the
do1n #ay4ent as 1ell as his or her sa.in, habits$
EMI
It is a short for4 sed for JE<ated Monthly Install4entK$ This is an a4ont 1hich is #aid by
the borro1er to the lender e.ery 4onth$
"O% I' IT CALC+LATE*
EMI incldes t1o co4#onents #rinci#al and interest$ 2rin, the initial #eriod of a loan, the
EMI has a lar,er co4#onent of interest as co4#ared to the #rinci#al$ Bt drin, later sta,es
of the loan re#ay4ent #eriod, the EMI has a lar,e #ortion of #rinci#al as co4#ared to the
interest$
Each EMI that an a##licant #ayLs consists of t1o co4#onents i$e$ Interest on the otstandin,
a4ont of the loan taken, and re#ay4ent of #rinci#al$ :ith each EMI #ay4ent, the a##licant
#ayLs back so4e of the loan in the for4 of re#ay4ent of #rinci#al a4ont$ As a reslt, 1ith
each EMI #ay4ent, the interest co4#onent in the sbse<ent EMI decreases and the #rinci#al
re#ay4ent co4#onent increases$
At the be,innin, of the re#ay4ent schedle, the interest co4#onent is 4ch hi,her than the
#rinci#al re#ay4ent co4#onent in an EMI$ O.er the years, as the a##licant re#ayLs so4e
#rinci#al 1ith each EMI, the interest co4#onent decreases, and the #rinci#al re#ay4ent
co4#onent increases$ To1ards the end of the ho4e loan re#ay4ent schedle, the #rinci#al
re#ay4ent co4#onent is far hi,her than the interest co4#onent in the EMI$
21
ORIENTAL HOME LOAN
TA3 BENEFIT' ON "OME LOAN'
As the Indian real estate 4arket 4akes an #1ard s1in,, and in.estors o#t for hosin,
finance or ho4e loans, ta; benefits obtained fro4 the4 is a lcrati.e o#tion$ 3sto4ers
a.ailin, of Ho4e Loans can clai4 a certain #ortion of the interest and #rinci#al that they #ay
to1ards the loan install4ents for redcin, ta; liability$ Resident Indians are eli,ible for
certain ta; benefits on #rinci#al and interest co4#onents of a loan nder the Inco4e Ta; Act,
*/8*$ Moreo.er, an added ta; benefits nder %ec 9( 3 on re#ay4ent of #rinci#al a4ont #
to Rs$ *,((,((( #$a$ can be a.ailed that can frther redce yor ta; liability by abot Rs$
)(,((( #$a$
Ta; benefits can be clai4ed on both the #rinci#al and interest co4#onents of the ho4e loan
as #er the Inco4e Ta; Act, */8*$ These dedctions are a.ailable to assesses, 1ho ha.e taken
a loan to either by or bild a hose, nder %ection 70(b"$ Interest on borro1ed ca#ital is
dedctible # to Rs *'(,((( if the follo1in, conditions are satisfied&
3a#ital is borro1ed on or after A#ril *, */// for ac<irin, or constrctin, a #ro#erty$
The ac<isition=constrction shold be co4#leted 1ithin ) years fro4 the end of the
financial year in 1hich ca#ital 1as borro1ed$
The #erson, e;tendin, the loan, certifies that sch interest is #ayable in res#ect of the
a4ont ad.anced for ac<isition or constrction of the hose
A loan for refinance of the #rinci#le a4ont otstandin, nder an earlier loan taken
for sch ac<isition or constrction$
If the conditions stated abo.e are not flfilled, then the interest on borro1ed ca#ital is
dedctible # to Rs )(,((( tho,h the follo1in, conditions ha.e to be satisfied&
3a#ital is borro1ed before A#ril *, */// for #rchase, constrction, reconstrction
re#airs or rene1al of a hose #ro#erty$
22
ORIENTAL HOME LOAN
3a#ital shold be borro1ed on or after A#ril *, */// for reconstrction, re#airs or
rene1als of a hose #ro#erty$
If the ca#ital is borro1ed on or after A#ril *, *///, bt constrction is not co4#leted
1ithin ) years fro4 the end of the year, in 1hich ca#ital is borro1ed$
In addition to the abo.e, #rinci#al re#ay4ent of the loan=ca#ital borro1ed is eli,ible for a
dedction of # to Rs *((,((( nder %ection 9(3 fro4 assess4ent year 7((8-(6$
Term! and condition! for a$ailin/ Ta. &enefit! on "ome Loan!
*$ Ta; dedctions can be clai4ed on hosin, loan interest #ay4ents, sbBect to an ##er
li4it of Rs *'(,((( for a financial year$ Interest on the fresh loan can be clai4ed as a
dedction, sbBect o the stated ##er li4it$
7$ An additional loan for e;tension=addition to the sa4e hose and the #ersonEs
dedctions on the e;istin, loan are less than Rs *'(,(((I he can clai4 frther benefits fro4
the additional loan taken, sbBect to the ##er li4it of Rs *'(,((( for a financial year$
)$ Ta; benefits nder %ection 70 and dedction nder section 9(3 of the Inco4e Ta; Act
can be clai4ed only 1hen the #ay4ent is 4ade$ If a #erson fails to 4ake EMI #ay4ents, he
cannot clai4 ta; benefits for the sa4e$
0$ Accordin, to the Inco4e Ta; Act, only the #erson 1ho has taken the loan can clai4
ta; rebates$
'$ The interest on ho4e loans taken for re#airs, rene1als or reconstrction, also <alifies
for the dedction of Rs *'(,((($
8$ A hsband and 1ife, both of 1ho4 are ta;-#ayers 1ith inde#endent inco4e sorces,
,et ta; dedction benefits, 1ith res#ect to the sa4e hosin, loanI to the e;tent of the a4ont
of loan taken in their o1n res#ecti.e na4e$
23
ORIENTAL HOME LOAN
6$ If a #erson bys a hose and sells it 1ithin the sa4e year=after ) years, and if any
#rofit is 4ade, then a ca#ital ,ains ta; liability arises on the sa4e for 1hich the indi.idal is
liable to #ay short-ter4 ca#ital ,ains ta; since the sale took #lace in the sa4e year$ Bt, if the
sale had taken #lace after ) years, then a lon,-ter4 ca#ital ,ains ta; liability 1old ha.e
arisen$
9$ If it is #ro.ed that the ho4e loan is si4#ly an arran,e4ent bet1een the loan-seeker
and the bilder or 1ith a third #arty for the #r#ose of clai4in, ta; benefits, then ta; benefits
1ill not be allo1ed and benefits, #re.iosly clai4ed, 1ill be clbbed to the inco4e and ta;ed
accordin,ly$
/$ Ta; benefits on interest on hosin, loans are allo1able only for the ori,inal loan and
for a second loan taken to re#ay the first loan and not for sbse<ent loans$ This 4eans that if
yo ha.e already a.ailed of one loan to refinance the ori,inal loan and 1ant to no a.ail a
third loan to refinance the second loan, ta; rebate on interest #ay4ents 1ill not be
#er4issible$ This is becase the %ection 70 (*" only talks of the second loan and not of
sbse<ent loans$ E.en if yo take the second loan at a rate of interest hi,her than the
ori,inal loan, yo 1ill be eli,ible for a ta; rebate on the second loan$
24
ORIENTAL HOME LOAN
IN*+'TRY '%OT ANALY'I'
25
'TR%N,T"'
*" *" An acti.e 4ainstrea4 sector $
7" 7" Effecti.e re,latory fra4e1ork$
)" )" E;tensi.e net1ork of re,ional bank
4icrofinance instittion, coo#erati.es credit
nions and rral bank$
%EAKNE''E'
Interest rate 1ar #ersistent
2iltion in de dili,ence on #art of leaders is a
often seen$
Lack of nifor4ity of nor4s$
Increase in defalt rates$
OPPORT+NITIE'
*" *" Increasin, rbani>ation$
7" 7" Hosin, 4icrofinance has #otential$
)" )" Ta; rebates on hose loan$
0" 0" -allin, interest rates$
T"REAT'
Lo1er transaction le.els in realty sector$
Hi,h s1itchin, costs of csto4ers$
Hi,her cost of ho4e o1nershi# is 4ainly
de#endin, the de4and at other end$
ORIENTAL HOME LOAN
OBC "OME LOAN
26
ORIENTAL HOME LOAN
ORIENTAL "OME LOAN 'C"EME
Lo1est rate of interest - *($'(?$ O
Lo1est EMI=instal4ent start Rs$/9(=- #er lac$O
Eli,ibility for loan hi,hest in the indstry$
%i4#lified #rocedre$
Tailor 4ade re#ay4ent o#tion$
3oncession in interest on car loan 5 other retail loans to Ho4e loan borro1ers$
%#ecial concession in interest rate to e;istin, de#ositor=borro1er$
3sto4i>ed sche4e for ,ro# borro1ers 1ith concession in rate of interest$
Interest rates s1itch o.er o#tion to e;istin, csto4ers$
To#-# loans a.ailable to e;istin, borro1ers$
Ho4e loan s1itch o.er o#tion (takeo.er of accont" fro4 e;istin, banker to or bank is
a.ailable$
E;tended re#ay4ent #eriod- #to 7' years$
O#tion for Aro# Mort,a,e Insrance %che4e is a.ailable on lo1 #re4i4$
No doc4entation fee$
No #re-#ay4ent #enalty$
O 3onditions A##ly
27
ORIENTAL HOME LOAN
ORIENTAL "OME LOAN 'C"EME
28
ORIENTAL HOME LOAN

29
Prpo!e
*$ !rchase of land and constrction of a hose thereon$
7$ 3onstrction of hose, 1here in the #lot=land already o1ned by
the a##licant$
)$ To by bilt # (ne1 or second hand" = se4i bilt # hose or
flat$
0$ To E;tend=i4#ro.e=re#air, the e;istin, hose or flat$
'$To by a flat nder constrction or #ro#osed to be constrcted
8$ -or Ho4e frnishin,, frnitre = fi;tres e4bedded to strctre
or other1ise$$
Eli/i&ility
Criteria
Indi.idals or ,ro# of s#ecified indi.idals (co-borro1ers"
incldin, HF- ha.in, an assred sorce of re,lar inco4e .i>$
salaried = self-e4#loyed #ersons, #rofessionals, bsiness4en,
far4ers etc$(incldin, %taff 5 NRIs "
Ma.imm Loan limit
For B!ine!! man-0( ti4es Aross 4onthly Inco4e and for
!alaried per!on -8( ti4es Aross 4onthly Inco4e 1ith a
condition that the net take inco4e(,ross Annal inco4e 4ins all
e;istin, dedctions,IT dedction 5 !ro#osed loan instal4ent"is in
7(-0(? slab as #er Aross Annal inco4e
"o!in/ Loan ---No ##er ceilin, (Oconditions a##ly"$
"ome frni!-in/ Loan --Ma;i44 Rs$ *($(( Lacs(restricted to
)(? .ale of e;istin, hose",
The 4a;i44 #er4issible Bank finance can be calclated on the
basis of inco4e of indi.idal as 1ell as Boint borro1er , as the
case 4ay be$
Minimm a/e
Ma.imm a/e
*9 years as on date of a##lication
F#to 8( years of a,e or a,e of s#erannation,1hich e.er is
earlier, ho1e.er in case of a.ailability of Boint=coborro1er and one
borro1er is ha.in, co4#arati.ely yon,er a,e in consonance 1ith
re#ay4ent #eriod,then it can be considered #to 8' years of a,e
for elder coborro1er and 8( years of a,e for yon,er coborro1er
Primary4Collateral
'ecrity
!ri4ary--E<itable= Re,istered Mort,a,e of financed
#ro#erty=#ro#erty #ro#osed to be frnished
3ollateral--Nil
Mar/in
F#to Loan Rs$ 7($(( Lacs *'?
Abo.e Rs$ 7($(( Lacs 7'?
-or Ho4e frnishin,
7'? of total cost of
reno.ation=frnishin,
Rate of Intere!t
3lick here to .ie1 Rate of Interest
3oncession in rate of interest to ca#ti.e and loyal csto4ers, ,ro#
of e4#loyee borro1ers$ (3onditions a##ly$ "
Intere!t !5itc-o$er
option to e.i!tin/
&orro5er!6
2rin, the crrency of hosin, loan, if borro1er feels that the
crrent #re.ailin, card rate of Ho4e loan is in fa.or as co4#ared
to interest actally a##lied in his accont ,he can se the s1itcho.er
o#tion$
Proce!! fee
($'(? of the loan a4ont, sbBect to 4a;i44 of Rs$ 7((((=- #ls
ser.ice ta;, if any
Ot-er C-ar/e! Prepayment Penalty 4 docmentation c-ar/e!4 pfront fee7 NIL
Repayment
Period
For "ome Loan -F#to )(( 4onths, #referably in EMI incldin,
the 4oratori4 #eriod of *9 4onths
For "ome Frni!-in/ Loan-Ma;i44 *7( 4onths
'econd -ome loan!8 takeo$er of -ome loan accont!8 loan to NRI9! facility i!
a$aila&le a! per t-e detailed !c-eme6
ORIENTAL HOME LOAN
*ETAILE* "OME LOAN 'C"EME
NOMENCLAT+RE
"o!in/ Finance 'c-eme i! t-e nomenclatre of :ORIENT "OME LOAN;6 "encefort-
t-e -o!in/ loan !c-eme !-all &e called :ORIENTAL "OME LOAN; for all practical
prpo!e! incldin/ ad$erti!ement6
'C"EME OB<ECTI(E7 ,O(ERNMENT4RBI4BANK
The Ao.ern4ent of India .ide .arios National !olicy !rononce4ents ha.e reinforced the
#ri4acy of the Hosin, sector and e4#hasi>ed the need to #ro.ide shelter o##ortnities to
all$ In #rsance of National Hosin, !olicy of 3entral Ao.ern4ent, RBI has been
facilitatin, the flo1 of credit to hosin, sector drin, recent years the hosin, has e4er,ed
as one of the sectors attractin, a lar,e <ant4 of Bank finance$ Therefore, the crrent focs
of RBI re,lation is to ensre orderly ,ro1th of hosin, loan #ortfolio of the Bank 1ith
4ini44 risk$
RBI 'PECIFIC ,+I*ELINE'
The follo1in, ty#es of Bank finance 4aybe inclded nder direct hosin, finance&
*" Bank -inance e;tendin, to a #erson 1ho is also o1nin, a hose in to1n=.illa,e 1here he
resides, for byin,= constrctin, a second hose in the sa4e or other to1n = .illa,es for the
#r#ose of self occ#ation$
7" Bank finance e;tended for #rchase of a hose by a borro1er 1ho #ro#oses to let it ot on
rental basis on accont of his #ostin, otside the head<arters or becase he has been
#ro.ided acco44odation by his e4#loyer$
"o5e$er if t-e applicant intend! to -a$e more t-an t5o -o!e!8 t-e e.po!re for t-ird
nit -o!e on5ard may &e treated a! CRE e.po!re and fall! nder t-e definition of
income prodcin/ real e!tate a! t-e &orro5er may &e rentin/ t-e!e nit! and t-e rental
income 5old &e t-e primary !orce of repayment6 Frt-er8 no loan !-old al!o &e
30
Prpo!e
7$ 3onstrction of hose, 1here in the #lot=land already o1ned by
the a##licant$
)$ To by bilt # (ne1 or second hand" = se4i bilt # hose or
flat$
'$To by a flat nder constrction or #ro#osed to be constrcted
8$ -or Ho4e frnishin,, frnitre = fi;tres e4bedded to strctre
or other1ise$$
Eli/i&ility
Criteria
Indi.idals or ,ro# of s#ecified indi.idals (co-borro1ers"
incldin, HF- ha.in, an assred sorce of re,lar inco4e .i>$
salaried = self-e4#loyed #ersons, #rofessionals, bsiness4en,
far4ers etc$(incldin, %taff 5 NRIs "
Ma.imm Loan limit
For B!ine!! man-0( ti4es Aross 4onthly Inco4e and for
!alaried per!on -8( ti4es Aross 4onthly Inco4e 1ith a
condition that the net take inco4e(,ross Annal inco4e 4ins all
e;istin, dedctions,IT dedction 5 !ro#osed loan instal4ent"is in
7(-0(? slab as #er Aross Annal inco4e
"o!in/ Loan ---No ##er ceilin, (Oconditions a##ly"$
"ome frni!-in/ Loan --Ma;i44 Rs$ *($(( Lacs(restricted to
)(? .ale of e;istin, hose",
The 4a;i44 #er4issible Bank finance can be calclated on the
basis of inco4e of indi.idal as 1ell as Boint borro1er , as the
case 4ay be$
Minimm a/e
Ma.imm a/e
*9 years as on date of a##lication
F#to 8( years of a,e or a,e of s#erannation,1hich e.er is
earlier, ho1e.er in case of a.ailability of Boint=coborro1er and one
borro1er is ha.in, co4#arati.ely yon,er a,e in consonance 1ith
re#ay4ent #eriod,then it can be considered #to 8' years of a,e
for elder coborro1er and 8( years of a,e for yon,er coborro1er
Primary4Collateral
'ecrity
!ri4ary--E<itable= Re,istered Mort,a,e of financed
#ro#erty=#ro#erty #ro#osed to be frnished
3ollateral--Nil
Mar/in
F#to Loan Rs$ 7($(( Lacs *'?
Abo.e Rs$ 7($(( Lacs 7'?
-or Ho4e frnishin,
7'? of total cost of
reno.ation=frnishin,
Rate of Intere!t
3lick here to .ie1 Rate of Interest
3oncession in rate of interest to ca#ti.e and loyal csto4ers, ,ro#
of e4#loyee borro1ers$ (3onditions a##ly$ "
Intere!t !5itc-o$er
option to e.i!tin/
&orro5er!6
2rin, the crrency of hosin, loan, if borro1er feels that the
crrent #re.ailin, card rate of Ho4e loan is in fa.or as co4#ared
to interest actally a##lied in his accont ,he can se the s1itcho.er
o#tion$
Proce!! fee
($'(? of the loan a4ont, sbBect to 4a;i44 of Rs$ 7((((=- #ls
ser.ice ta;, if any
Ot-er C-ar/e! Prepayment Penalty 4 docmentation c-ar/e!4 pfront fee7 NIL
Repayment
Period
For "ome Loan -F#to )(( 4onths, #referably in EMI incldin,
the 4oratori4 #eriod of *9 4onths
For "ome Frni!-in/ Loan-Ma;i44 *7( 4onths
'econd -ome loan!8 takeo$er of -ome loan accont!8 loan to NRI9! facility i!
a$aila&le a! per t-e detailed !c-eme6
ORIENTAL HOME LOAN
/i$en in re!pect of t-e propertie! meant for re!idential !e8 5-ic- t-e applicant8 intend!
to !e for commercial prpo!e!8 and declare! t-e !ame 5-ile applyin/ for loan6 All RBI
/ideline!4directi$e! i!!ed on -ome loan from time to time !-all &e treated an inte/ral
part of t-e -ome loan !c-eme of t-e Bank6
P+RPO'E
The Bank offers financial assistance for=to&
7$ 3onstrction of hose, 1here in the #lot=land already o1ned by the a##licant$
)$ To by bilt # (ne1 or second hand" = se4i bilt # hose or flat$
'$ To by a flat nder constrction or #ro#osed to be constrcted
8$ -or Ho4e frnishin,, frnitre = fi;tres e4bedded to strctre or other1ise$
6$ To take o.er of hosin, loan fro4 other Banks=other financial instittes$
A= "ome Loan for con!trction of -o!e >ot-er t-an Rral area!=
Ho4e Loan for constrction of hose shall be allo1ed only after ensrin, bonafide land=#lot
holdin, by the a##licant and obtention of sanctioned #lan by the co4#etent athority$ The
borro1er shall constrct the hose #to a 4a;i44 #eriod of 70 4onthsO, strictly as #er
sanctioned #lan and shall sb4it the co4#letion certificate of hose 1ithin ) 4onths of
co4#letion of constrction$ A re,istered architect #referably fro4 BankLs #anel 4st also
certify at .arios sta,es of constrction of bildin,=ho4e, that the constrction of the
bildin,=ho4e is strictly as #er a##ro.ed #lan$ O The Aeneral Mana,er (Re,ional Head" 5
Aeneral Mana,er (Retail" shall be e4#o1ered to e;tend constrction #eriod #to )8 4onths
on 4erit of the case$
31
ORIENTAL HOME LOAN
B= 'pecific pro$i!ion of loan for "o!e con!trction in rral area6
Aenerally, in rral =.illa,e areas, there is no athority for a##ro.in, the bildin, #lan=4a#
and the doc4ents of title of the land=hose are also not a.ailable, in sch cases the
#ros#ecti.e borro1er shold be asked to ,et the constrction 4a# #re#ared by architect
confir4in, co4#liance of Ao.ern4ent rlin,s$ !er4ission fro4 the .illa,e #anchayat for the
constrction as #er bildin, #lan=4a# shall be obtained alon, 1ith their certification that
there is no 4a# a##ro.in, athority e;istin, for a##ro.in, sch 4a# for the #articlar rral
areas and the said #lot on 1hich constrction 1ill be 4ade is located in notified Abadi Area
of the .illa,e$ Ho1e.er, a de dili,ence in all sch cases be e;ercised by sanctionin,
athority$
C= "ome Loan for prc-a!e of &ilt p -o!e 4 flat
Ho4e loan shall be allo1ed for #rchase of flat = hose after obtainin, certified co#y of
a##ro.ed constrction #lan=4a# or an affida.it-c4-ndertakin, that the hose = flat has been
constrcted as #er sanctioned #lan and = or bildin, byela1s and as far as #ossible has a
co4#letion certificate$ A re,istered Architect a##ointed by the bank 4st also certify before
disbrse4ent of loan that the bilt # #ro#erty is strictly as #er sanctioned #lan and = or
bildin, byela1s$
No loan !-all &e /ranted for propertie!8 5-ic- fall in t-e cate/ory of nat-ori?ed
colonie! nle!! and ntil t-ey -a$e &een re/lari?ed8 and de$elopment and ot-er
c-ar/e! are paid6 No loan !-all &e /i$en in re!pect of propertie! meant for re!idential
!e &t 5-ic- t-e applicant intend! to !e for commercial prpo!e!6
Loan to profe!!ional! like *octor!8 CA1! for t-e prpo!e of prc-a!e 4con!trction of
non7re!idential premi!e! like nr!in/ -ome4office nit &e delinked from -o!in/ loan
facility6
32
ORIENTAL HOME LOAN
ELI,IBLE PER'ON>'=
Indi.idals or ,ro# of s#ecified indi.idals (co-borro1ers" incldin, HF- ha.in, an
assred sorce of re,lar inco4e .i>$ salaried = self-e4#loyed #ersons, #rofessionals,
bsiness4en, far4ers etc$ -rther,
*" The staff 4e4bers of the Bank are also eli,ible nder ,eneral #blic ho4e loan sche4e$
7" The NRI 4ay also a.ail a hosin, loan in India sbBect to co4#liance of s#ecific ter4s at
#ar 1ith those a##licable to a #erson resident in India$
KYC 4CIBIL 4 RATIN,
The co4#liance of +C3 nor4s, e;traction of 3IBIL Re#orts, 3entral Re,istry %earch re#ort
and ratin, of the accont are inte,ral #art of the Ho4e Loan %che4e for res#ecti.e
borro1ers$ As #er Loan !olicy, these tools are a##licable in Ho4e Loan A=cLs and tili>ed to
alle.iate .arios risks and to e;ercise #rdent decision on the loan #ro#osals$ It is rele.ant
that if a csto4er secres 3redit Ratin, #to financin, le.el, his=her a##lication 1ill be
considered eli,ible for frther #rocessin,$
A,E CRITERIA
Minimm a/e2 *9 years as on the date of a##lication
Ma.imm a/e2
For 'er$ice cla!!2 F# to 8( years of a,e or date of s#erannation, 1hiche.er is earlier,
ho1e.er in case of a.ailability of Boint = co borro1er and one borro1er is ha.in,
co4#arati.ely yon,er a,e in consonance 1ith re#ay4ent #eriod, then it can be considered
#to 8' years of a,e for elder co-borro1er$
For Non7'er$ice cla!!& F#to 8( years of a,e, ho1e.er in case of loan considered in fa.or
of Boint= co borro1er and one borro1er is ha.in, co4#arati.ely yon,er a,e in consonance
1ith re#ay4ent #eriod, then it can be considered # to 8' years of a,e for elder co-borro1er$
33
ORIENTAL HOME LOAN
The abo.e Ma;i44 a,e li4it of borro1er= co borro1ers is #er4issible sbBect to the a,e by
1hich the loan shold be flly re#aid, a.ailability of sfficient, re,lar and continos sorce
of inco4e for ser.icin, the loan re#ay4ent to the satisfaction of Loan sanctionin, athority$
FINANCIN, BRANC"
Nor4ally the financin, branch shall be&
a" The branch located at the #lace of residence = #ostin, of the a##licant= borro1er$ OR
b" By the branch located at the #lace of #ro#erty = nearest to the #ro#erty #ro#osed to be
#rchased = constrcted is sitated$
Ho1e.er, re,istered = e<itable 4ort,a,e shall be created at nearby Branch or financin,
Branch sitated in notified area of the #articlar state 1here the #ro#erty is sitated$
COMPONENT' OF FINANCE
a" !rchase #rice of #lot=hose$
b" 3onstrction cost of the hose$
c" -inancin, of con.ersion char,es #ayable to Ao.ern4ent Athority only for con.ersion of
the hose=flat = #lot fro4 leasehold to freehold$
d" -or frnishin,, re#air, reno.ation 5 additional constrction (!lease refer se#arate #ara
ennciatin, ter4s of finance"
e" !re4i4 of Aro# Mort,a,e rede4#tion Assrance sche4e- 3anara-H%B3 1ith OB3
insrance co4#any (D@", if o#ted by borro1er$ Ho1e.er the #re4i4 a4ont shall not be
taken into accont for arri.in, at LT@ ratio on Ho4e loan i$e the 4ar,in shall be 4aintained
e;cldin, the insrance #re4i4 cost$
Note2 !rchase of #lot only or in isolation is not #er4issible$
34
ORIENTAL HOME LOAN
MAR,IN
Loan Limit Mar/in
Loans F#to Rs$7($(( lac *'?
Loans Abo.e Rs$7($(( lac 7'?
*" Borro1er shall contribte his 4ar,in #front$ Ho1e.er, the sanctionin, athority 4ay
consider acce#tance of #ro#ortionate 4ar,in 1ith the release of loan install4ents on 4erits of
the #ro#osals$
7" :hile takin, o.er Ho4e loan acconts fro4 other financial instittions, it 4st be ensred
that the a4ont taken o.er flfills the criteria of or sti#lated 4ar,in irres#ecti.e of the
4ar,in i4#osed = not i4#osed by other financin, instittions$
)" Loan a4ont for #rchase of residential #lot shall not e;ceed '(? of the eli,ible loan
a4ont$
0" %ince loan to .ale ratio, 1hich is sti#lated by RBI, is 4andatory to co4#ly and
deter4ines the #ro.ision #ercenta,e nder risk 1ei,ht assets, as sch field fnctionaries
4eticlosly co4#ly the obtention of re<isite 4ar,in$
'" In case the char,e on hose is #ro#osed to be e;tended in other loan acconts as collateral
secrity, in sch circ4stances the 4ar,in 1ill be 4aintained at )(? irres#ecti.e of loan
li4it$
35
ORIENTAL HOME LOAN
MA3IM+M ELI,IBLE LOAN AMO+NT
There is no ceilin, on the a4ont of loan$ Ho1e.er, Ma;i44 loan a4ont #er4issible
nder the sche4e shall be&
@= On Mar/in criteria2
a" 9'? of the total cost of constrction = #rchase #rice e;cldin, sta4# dty and re,istration
char,es, for loans #to Rs$7($(( lac$
b" 6'? of the total cost of constrction = #rchase #rice e;cldin, sta4# dty and re,istration
char,es, for loans abo.e Rs$7($(( lac$
A= ,ro!! Mont-ly Income Criteria2
a" -or salaried class - Loan shall be e<i.alent to 8( 4onthLs Aross salary
b" !erson other than salaried class- Loan shall be e<i.alent to 0( 4onthsO Aross salary$
O The Re,ional Heads on 4erit of the #ro#osal are e4#o1ered to allo1 the loan #to 8(
4onth ,ross salary after considerin, their financials, re#ayin, ca#acity, risk #rofile of
borro1er and ensrin, safety secrity of Banks fnd$
B" Net Take "ome Income Criteria2 The salaried #erson 5 Non salaried #erson fallin,
nder belo1 4entioned slab of Aross Annal Inco4e shall ha.e to 4aintain 4ini44 net
take ho4e inco4e (Aross Annal Inco4e 4ins all e;istin, dedctions, inco4e ta;
dedction 5 dedction of #ro#osed loan install4ent"
,ro!! Annal Income Net Take "ome
+pto R!6@C Lac! DCE
A&o$e R!6@C Lac! to R!6 @F lac! BCE
A&o$e R!6@F Lac! to R!6 AF lac! AFE
A&o$e R!6AF lac! ACE
Note2 T-e ma.imm permi!!i&le loan amont !-all &e t-e amont ot of a&o$e t-ree
alternati$e!8 5-ic-e$er i! le!!6
INCOME CRITERIA
@6 For !alaried per!on!2
36
ORIENTAL HOME LOAN
Aross inco4e shall inclde salary and other re,lar inco4e i$e$, di.idends, interests, rent,
etc$, as declared in salary certificate, for4 *8 and=or inco4e ta; retrns = assess4ent$ %ince
the salaried inco4e are ha.in, increasin, trends in ftre, as sch on 4erits the latest inco4e
4ay be considered for co4#tation of M!B-$ Ho1e.er, in case of 1ide flctation in the
annal salary inco4e of the #ast the a.era,e of inco4e 4ay be taken into consideration$
Net Inco4e P Aross Inco4e Q All dedctions incldin, install4ent of #ro#osed loan and
inco4e ta;$
A6 For Non !alaried per!on 2 5-ere income ta. retrn are &ein/ filed
Aross inco4e consists of inco4e as declared in the inco4e ta; retrns=assess4ents and=or
s##orted 1ith financial state4ents and=or certificate fro4 a <alified 3A$ 1here.er re<ired
a co#y of ta; #aid challan=recei#t shall also be obtained to s##ort the inco4e of the #erson$
Net Inco4e P Aross Inco4e Q All dedctions incldin, install4ent of #ro#osed loan and
inco4e ta;$
B6 For Non !alaried >'elf7employed4'mall B!ine!!4Trader!= 5-ere income ta. retrn!
are not filed2
%bBect to co4#lete satisfaction of the sanctionin, athority as re,ard to the earnin,=inco4e
.is-R-.is re#ay4ent ca#acity of the borro1er in this cate,ory by sbBecti.e=obBecti.e 4eans
a.ailable at his co44and$ SHosin, Loan, to this cate,ory of borro1er 1ith a ma.imm
limit of R!6 A lac! is #er4itted$
In sch cases, branches 4ay acce#t inco4e as declared by #ros#ecti.e borro1er in a dly
notari>ed affida.it as the J,ross inco4eK$
D6 For farmer!4rral arti!an!2 In rral and se4i-rban areas 1here inco4e of the a##licant
cannot be ascertained on the basis of doc4ents, it 4ay be 1orked ot as follo1s&
a6 Income from A/ricltre2 The follo1in, inco4e #er acre of land #er ann4 4ay be
taken as base for ascertainin, the total a4ont of inco4e$ Ho1e.er, these rates are notional
37
ORIENTAL HOME LOAN
1hich 4ay be #dated 1ith a.ailable athenticated inco4e #er acre of land #ro.ided by
NABAR2 or a##ro.ed rate of 2L33$ -rther, the inco4e fro4 other horticltre=4edicinal
cro#s 4ay be considered in all areas, 1here.er sch cro#s are ,ro1n$ In case of s,arcane
inco4e shall be 1orked ot on the basis of a.era,e yield #er acre and 4ini44=s#ecial
s##ort #rice (M%!=%A!" declared by the concerned %tate Ao.ern4ent$ These rates 4ay .ary
fro4 #lace to #lace$ The loan sanctionin, athority shold be satisfied 1ith the 4onthly
inco4e and re#ayin, ca#acity of the indi.idal far4ers$
Ty#e of land=3ro# Income per acre per annm
-or irri,ated land Rs$7((((=- to Rs$7'(((=-
-or n-irri,ated land Rs$'(((=- to Rs$6'((=-
-or Horticltral cro#s Q Ara#es Rs /'(((=-
Litchi Rs 7/(((=-
3ocont Rs 76(((=-
3itrs Rs )7(((=-
Tea Rs 08(((=-
-or Medicinal cro#s - Mlethi Rs 90(((=-
Mentha Rs 8/(((=-
38
ORIENTAL HOME LOAN
&6 Income from Allied acti$itie! 2 GGGGGGGGGGGGGGGGGGGGGGG
c6 Income from 'er$ice!4B!ine!! 2 GGGGGGGGGGGGGGGGGGGGGGG
d6 Income from ot-er !orce! >'alary ) 5a/e!=2 GGGGGGGGGGGGGGGGG
Total Income 2 GGGGGGGGGGGGGGGGGGGGGGG
*etail of *edction! 2
*$ On accont of 3ro# Loan 2 TTTTTTTTTTTTTTTTTTTTT
7$ On accont of Tractors= Tbe-1ell=Thresher loan etc6 2 TTTTTTTTTTTTTT
)$ On accont of any other loan 2 TTTTTTTTTTTTTTTTTTTTT
Net Inco4e or %r#ls P Aross Inco4e Q All 2edctions incldin, instal4ent of #ro#osed
loan$
F6 For "+F Ho4e Loan to HF- concerns 4ay be considered on selecti.e basis, #ro.ided the
inco4e of HF- only is reckoned for the #r#ose of arri.in, at eli,ible loan a4ont$ In
indi.idal case, inco4e of HF- shall not be added to arri.e at eli,ible loan a4ont$
Ho1e.er, in .ie1 of #ri.ile,es a.ailable to MINOR and to safe ,ard Banks interest
re<isite ndertakin, fro4 all co#arcener of HF-=fa4ily shall be obtained in consltation
1ith BankLs #anel Ad.ocate$
H$ Loan to Pen!ioner! Loans to #ensioners can be considered # to 0( ti4es of the
#ension=inco4e$ !ension a4ont #to 8' years of a,e shall be taken into accont for
calclation of eli,ible a4ont and re#ay4ent #eriod$ Re#ay4ent #eriod shall not e;ceed *(
years and loan 4st be co4#letely li<idated 1ithin 8' years of a,e of #ensioner$ Ho1e.er,
1here co-borro1er is taken, 4a;i44 re#ay4ent #eriod can be e;tended # to 7( years
#ro.ided the loan is re#aid 1ithin 8' years of a,e of the borro1er=co-borro1er ha.in,
ca#acity to ser.ice the loan$
39
ORIENTAL HOME LOAN
NOTE2
@6 It i! reiterated t-at t-e acceptance of :/ro!! income; in t-e a&o$e manner !-old &e
to t-e entire !ati!faction of t-e !anctionin/ at-ority8 to en!re continance of ade#ate
ftre income for repayment of loan in!talment6
A6 "o5e$er8 ftre rent from t-e propo!ed property >t-e -o!e t-at i! /oin/ to &e
financed= !-all not &e inclded for calclation of loan eli/i&ility a! per income criteria in
all of t-e a&o$e ca!e!6
B6 In proce!! note in$aria&ly t-e comptation of eli/i&le loan amont &e /i$en on
ta&lated !-eet6
RELA3ATION IN ELI,IBLE LOAN AMO+NT
*" Loan #to 8( ti4es of Aross Monthly Inco4e in case of 2octors, 1ho enBoy ,ood
re#tation and ha.e re#ay4ent ca#acity, can be considered at Branch le.el after ensrin,
safety=secrity of bankLs fnd and risk #rofile of the borro1ers$
7" In case of select bsiness class of Hi,h Net :orth Indi.idals, 1ho enBoys ,ood re#tation
and ha.e re#ayin, ca#acity, loan #to 8( ti4es of Aross Monthly Inco4e can be considered
by the Re,ional Head on case-to-case basis after ensrin, safety=secrity of bankLs fnds and
risk #rofile of the borro1ers$
)" In case of Indi.idal=co-borro1er the income of !po!e8 !on4!on! and da/-ter!7in7la5
4ay also be considered for arri.in, at the 4a;i44 a4ont of the loan #ro.ided they ha.e a
steady inco4e$ -rther, the inco4e of parent! >p to HF year! of a/e= residin, 1ith their
only son 1ho intend to borro1 ho4e loan, can be considered for assessin, the 4a;i44 loan
a4ont of the son$ Ho1e.er, the #articlar #erson 1hose inco4e has been added to arri.e at
4a;i44 loan a4ont 1ill stand either as co borro1er or ,arantor of the loan accont$
-rther, the criteria of 4ini44 take ho4e inco4e shall be a##licable to all the borro1ers=
co borro1ers= ,arantors indi$idally6
40
ORIENTAL HOME LOAN
0" The inco4e of the Boint o1ner of the #ro#erty irres#ecti.e of relationshi# 1ith the
borro1er 4ay be considered for co4#tation for 4a;i44 #er4issible Hosin, Loan$ Note
that the Boint o1ners shall essentially be the co borro1ers$ Accordin,ly, in sch
circ4stances the s#ose, son 5 da,hter in la1Ls inco4e is also #er4itted to inclde 1hile
co4#tin, 4a;i44 eli,ible loan a4ont$
'" 2e#reciation if any, clai4ed in the inco4e ta; retrn 4ay be considered as a #art of ,ross
inco4e for co4#tation of eli,ible loan a4ont$ E;istin, rental inco4e as #er inco4e ta;
retrn 4ay be taken into consideration$ Ho1e.er, if the a##licant intends to let ot the
#ro#osed #ro#erty to be #rchased and re<ests for inclsion of e;#ected rental inco4e in the
,ross inco4e of the #arty, the sa4e shall not be eli,ible for ho4e loan, as the sa4e be treated
as inco4e #rodcin, real estate$
41
ORIENTAL HOME LOAN
'EC+RITY
The loan shall be secred by Re,istered = E<itable Mort,a,e of the #ro#erty (Hose=-lat"
created ot of bank finance$ Ho1e.er, 1here Re,istered = E<itable Mort,a,e cannot be
created i44ediately-
a" The borro1er 4ay ,i.e an alternate #ro#erty= tan,ible secrities of ha.in, a .ale 1hich is
4ore than loan li4it 1ith clear titles for interi4 #eriod$
b" In case the borro1er is in no #osition to offer any alternate secrity and it is e;#ected that
the title deed=secrity doc4ent for creation of 4ort,a,e 1ill be a.ailable in one or t1o
1eeks ti4e fro4 re,istrar office then on 4erit of the case the sanctionin, athority in sch
sitations 4ay #er4it obtention of a letter of athority (s#ecial #o1er of attorney" fro4 the
borro1er athori>in, the bank to collect the title-deeds fro4 the office of the sb-re,istrar as
and 1hen the sa4e is ready for deli.ery$ The recei#t= conter foil issed by the sb re,istrar
office shall in.ariably be obtained alon, 1ith sch athori>ation$ The loan disbrsin, Branch
shall 4aintain a track record of sch athori>ation and ensre to collect the title deeds fro4
the sb re,istrar office on #rescribed ftre date$
Ho1e.er, all rele.ant loanin, doc4ents for creation of re,istered = e<itable 4ort,a,e shall
be obtained at the ti4e of release of loan$
c" !rchase of flat etc$ nder constrction sta,e fro4 co-o#erati.e society= bilder=de.elo#er
or fro4 #blic sector= Ao.t$ a,encies like 22A, NOI2A, HF2A, !F2A etc$ and the
borro1er is ha.in, only share certificate=allot4ent letter=a,ree4ent to sell etc$ (as the case
4ay be" as doc4ent to sanctify the transfer of #ro#erty$ In sch cases loan can be secred by
obtainin, ndertakin,, as #er Anne;re-*0 and secrity doc4ents like tri#artite a,ree4ent
Anne;re-*65*9, #o1er of attorney as #er Anne;re-8, letters fro4 the borro1er in order to
reinforce the ri,ht of the bank to reco.er its des as a sto#,a# arran,e4ent$ These #ro.isions
are co4#arati.ely for shorter dration$
42
ORIENTAL HOME LOAN
"o5e$er8 all a&o$e option &e e.erci!ed in con!ltation 5it- Bank! panel ad$ocate6
Frt-er8 to o&$iate any contin/ent !itation and e$entalitie! 5-ic- may ari!e in
$ario! part! of t-e contry &eca!e of local practice!4la5 and al!o to make !y!tem fool
proof8 Re/ional "ead!4&ranc-e! !-all o&tain t-e opinion of t-eir le/al retainer! to
!//e!t additional docment if any8 to !pplement t-e a&o$e docment!6
%ince the re,istered 4ort,a,e of i44o.able #ro#erty is better o#tion for creation of BankLs
char,e, as sch, the #reference shall be ,i.en for re,istered 4ort,a,e o.er the e<itable
4ort,a,e if the sa4e is not creatin, o#erational difficlties as 1ell as not attractin, e;cess
sta4# dty as co4#ared to dty on e<itable 4ort,a,e$ -rther, in certain %tates the
Ao.ern4ent has 4ade #ro.ision for re,isterin, e<itable 4ort,a,e char,es 1ith no4inal fee,
in the books of Re,istrar$ The Branches shall a.ail the benefit of sch #ro.ision in
consltation 1ith !enal Ad.ocate$
43
ORIENTAL HOME LOAN
RATE OF INTERE'T
a= Ta&le of pre!ent intere!t rate2
'6No !articlars +p to F year! A&o$e F ) pto
@F year!
A&o$e @F ) pto
AF year!
@ Loan! p to R!6 BC6CC
lac
BR U ($7'? BR U ($7'? BR U ($'(?
A A&o$e R!6 BC lac! and
p to R!6 IF lac!
BR U ($'(? BR U ($'(? BR U ($6'?
B A&o$e R!6 IF lac and p
to R!6 B crore!
BR U ($6'? BR U ($6'? BR U *$((?
D6 Loan a&o$e R!6 B crore!6 Rate of intere!t !-all &e decided &y t-e
!anctionin/ At-ority at "ead Office8 !&Ject to
minimm of Ba!e Rate6
&= Conce!!ion in Rate of Intere!t
T-e Re/ional "ead i! empo5ered to permit conce!!ion of C6AFE in rate of intere!t o$er
) a&o$e t-e normal rate of intere!t to t-e follo5in/!2
@6 To ca#ti.e=loyal csto4ers 1ho are ha.in, annal a.era,e balance in their sa.in, accont
Rs$ *$(( Lacs or in crrent accont Rs$'$(( Lacs and abo.e$ As 1ell as to 2irectors, !artners
or !ro#rietor of all 3ash 3redit accont holders ha.in, 3redit Ratin, #to J0K for last 70
4onths$
A6 To the e.i!tin/ !tandard "ome Loan Borro5er! ha.in, re,lar re#ay4ent (4ini44 70
4onths"$
B6 In case #arty is offerin, collateral secrity in sha#e of ter4 de#osit #to 6'? of loan
a4ont$
D6 In case of loan #ro#osal recei.ed fro4 ,ro# of e4#loyees(4ini44 '" 1here the
e4#loyer ndertake to dedct and re4it loan instal4ent to the Bank
Note2
44
ORIENTAL HOME LOAN
i= The abo.e concessions 1ill not be 4er,ed 1ith any e;istin, csto4i>ed sche4e$
ii= In any case after allo1in, concession in interest rate the effecti.e rate !-all not fall &elo5
t-e Ba!e Rate$
These rates of interest shall be a##licable only on fresh Ho4e loans$
F6 Calclation of intere!t27
*$ Interest on the a4ont of the loan 1ill be a##lied at the #re.ailin, rate #er ann4 on daily
redcin, balance 1ith 4onthly rests$
7$ In case any fresh additional=s##le4entary loan (e;cldin, the ho4e frnishin, loan" is
considered in fa.or of e;istin, borro1er and drin, the crrency of e;istin, loan$ The rate
of interest in sch acconts shall be deter4ined as #er the slab fallin, in res#ecti.e cate,ories
after clbbin, the otstandin, of e;istin, acconts #ls #ro#osed loan li4it$ This rate 1ill be
a##licable on both the acconts$ (Fnder sch circ4stances, in e;ce#tional cases 1here de
to clbbin, of e;istin, loans the rate of interest falls belo1 the e;istin, rate of interest, then
the 4atter be referred to Head Office seekin, re<isite ,idance"$
)$ The rate of interest shall be on floatin, rate basis$
0$ Interest drin, 4oratori4 #eriod shall be #aid as 5 1hen it beco4es de$ In case
borro1er e;ercises the o#tion of not #ayin, interest drin, 4oratori4 #eriod, interest
co4#onent char,ed in the accont for the 4oratori4 #eriod 1ill be added to the loan
a4ont and 1old be s#read o.er EMIs for the entire re#ay4ent #eriod$
'$ Rate of interest is sbBect to chan,e as #er RBI=Banks ,idelines circlated fro4 ti4e to
ti4e$
8$ :ith a .ie1 to facilitate the branches calclation of e<ated 4onthly instal4ents
instantaneosly, a co4#rehensi.e chart sho1in, EMIs on a##licable interest rates for loan
of Rs *(((((=- is enclosed as #er Anne;re-*$
H6 Intimation of c-an/e in Intere!t Rate27
45
ORIENTAL HOME LOAN
The borro1er shall be dee4ed to ha.e notice of chan,es in the rate of interest 1hene.er there
are chan,es in Base Rate either increase or decrease in interest rates$ By dis#lay of Base Rate
on the 1ebsite of Bank=Notice Board of the Branch or #blished in ne1s #a#ers or 4ade
thro,h entries of the interest rate char,ed in the #assbook=state4ent of accont frnished to
the borro1er and the borro1er is liable to #ay sch re.ised rate of interest$ A condition clase
to this effect be also incor#orated in sanction letter (Anne;re-)*"$ Ho1e.er, the field
fnctionaries shall also co4#ly the instrctions in this re,ard as are 4entioned in #articlar
circlar co44nicatin, chan,es in Base Rate$
I6 Penal Intere!t
i" The a##lication of #enal interest clase shall be ,o.erned in accordance to Banks loan
#olicy$ !resently the #enal interest shall be char,ed at the rate of 7? o.er and abo.e the
nor4al rate of interest on irre,lar a4ont of loan and for the #eriod of irre,larity$
ii" In case constrction of the hose is not co4#leted 1ithin 70 4onthsO fro4 the date of
#ossession of the #lot=land or the #lot=land is alienated, co44ercial rate of interest shall be
char,ed fro4 the date of disbrse4ent of the loan and loan shall be recalled as #er the nor4al
#rocedre of the bank$
O The Aeneral Mana,er (Re,ional Head" 5 Aeneral Mana,er (Retail" shall be e4#o1ered to
e;tend constrction #eriod #to )8 4onths on 4erit of the case
46
ORIENTAL HOME LOAN
K6 Pre7payment penalty
NIL - The #re#ay4ent #enalty clase is co4#letely 1ai.ed$ None of the occasion the #re
#ay4ent #enalty 1ill be a##lied in the accont, e.en the borro1er o#ts to s1itch his ho4e
loan accont to other bank=financial instittion$
INTERE'T '%ITC" O(ER OPTION The interest s1itch o.er o#tion shall be a.ailable
to e;istin, borro1ers on any occasion, 1hen they feel the crrent #re.ailin, card rates of
Ho4e loan interest is in their fa.or as co4#ared to interest actally a##lied in their accont$
They 4ay e;ercise the interest s1itch o.er o#tion sbBect to #ayin, oneti4e fee as nder&
'6No6 Loan limit '5itc- o$er option fee>paya&le one time=
a" F#to Rs$7'$(( Lacs ($'(? of otstandin, as on the date of s1itch o.er
b" Abo.e Rs$7'$(( Lacs ($6'? of otstandin, as on the date of s1itch o.er
PROCE'' FEE4 *OC+MENTATION C"AR,E'L
Loan limit Proce!! fee 4 *ocmentation C-ar/e!
Irres#ecti.e of any li4it Proce!! fee 7 ($'(? of the loan a4ont,
sbBect to 4a;i44 of Rs$ *7'((=- #ls
ser.ice ta;, if any
*ocmentation c-ar/e! 7NIL
O 2oes not inclde ad.ocate char,es, .aler fee and insrance char,es 1hich shall be borne
by the a##licant on actal basis$
L The #rocess fee shall be reco.ered as #er banks e;istin, ,idelines on the basis of abo.e
rates6
O The #rocess fee shall not be reco.ered fro4 staff 4e4bers if they a.ail ho4e loan nder
,eneral #blic sche4e$
In!pection C-ar/e! 7 Nil
Bonced c-e#e4EC' or 'I di!-onor!27
47
ORIENTAL HOME LOAN
A #enalty of Rs 7'(=- U ser.ice ta; 1ill be char,ed for e.ery bonced che<e=E3% or %I
dishonors$ The rate 4ay .ary fro4 ti4e to ti4e$
REPAYMENT OF LOAN
i6 The entire loan shall be re#aid in ma.imm of BCC mont-! #referably in e<ated 4onthly
instal4ents incldin, the 4oratori4 #eriod sbBect to the a,e criteria as nder&
ii6 For 'er$ice cla!!2 F# to 8( years of a,e or date of s#erannation, 1hiche.er is earlier$
Ho1e.er in case of a.ailability of Boint = co borro1er and one borro1er
is ha.in, co4#arati.ely yon,er a,e in consonance 1ith re#ay4ent #eriod, then it can be
considered #to 8' years of a,e for elder co-borro1er$
iii6 For Non7'er$ice cla!!& F#to 8( years of a,e, ho1e.er in case of loan considered in
fa.or of Boint= co borro1er and one borro1er is ha.in, co4#arati.ely yon,er a,e in
consonance 1ith re#ay4ent #eriod, then it can be considered # to 8' years of a,e$
i$6 For Pen!ioner! Cla!!& Re#ay4ent #eriod shall not e;ceed *( years and loan 4st be
co4#letely li<idated 1ithin 8' years of a,e of #ensioner$ Ho1e.er, 1here co-borro1er is
taken, 4a;i44 re#ay4ent #eriod can be e;tended # to 7( years #ro.ided the loan is re#aid
1ithin 8' years of a,e of the borro1er=co-borro1er -a$in/ capacity to repay t-e loan6
$6 2e dili,ence on re#ayin, ca#acity and financial sondness be e;ercised by the
sanctionin, athority 1hile considerin, loans for a re#ay4ent a,e of 8' years of the
borro1er$
$i6 Re#ay4ent of loan by the a,ricltrist 4ay be by 1ay of 4onthly=<arterly= half yearly
instal4ents so as to be co44ensrate 1ith ,eneration of inco4e cycle$ Ho1e.er, #reference
be ,i.en to reco.er 4onthly instal4ent in case the a,ricltralist is ha.in, re#ayin, ca#acity$
$ii6 In case of takeo.er of ho4e loan fro4 other financial instittion = Bank, the ori,inal
re#ay4ent #eriod shall not be reschedled$ The takeo.er a4ont shall be reco.ered in
48
ORIENTAL HOME LOAN
re4ainin, #eriod of re#ay4ent as 4entioned in their ter4s of sanction of other Banks sbBect
to the 4a;i44 of )(( 4onths$
$iii6 The a4ont of the 4onthly instal4ent shall de#end on the <ant4 of loan and the
a##licable rate of interest$ The E<ated Monthly Instal4ent (EMI" shall co4#rise of #rinci#al
and interest$
i.6 %te# 2o1n O#tion- In case of Boint borro1ers, 1ith different a,e #rofile, 1here one or
4ore borro1er 1ill attain 4a;i44 #er4issible a,e drin, crrency of loan, the ste# do1n
o#tion shall a##ly$ EMIs 1ill be fi;ed accordin,ly to n4ber of years, each co-borro1er shall
#ay 1ithin 4a;i44 #er4issible a,e li4it=re#ay4ent #eriod$
.6 All the borro1ers shall be Bointly and se.erally liable to re#ay the loan irres#ecti.e of the
fact 1hether they are Boint o1ners of the #ro#erty or not$
In case of Boint borro1ers in different a,e ,ro#s and .aried inco4e, 4a;i44 #er4issible
loan shall be the !m total of #er4issible loan to each indi.idal borro1er a! if each one has
a##lied inde#endently for hosin, loan$
.i6 The abo.e said Ma;i44 a,e li4it of borro1er= co borro1ers is #er4issible sbBect to
the a,e by 1hich the loan shold be flly re#aid, a.ailability of sfficient, re,lar and
continos sorce of inco4e for ser.icin, the loan re#ay4ent to the satisfaction of Loan
sanctionin, athority$
.ii6 The re#ay4ent of loan shall be 4ade thro,h the Electronic 3learance %yste4
(E3%"=standin, instrctions=Ato 3ollection !rocedre fro4 the o#erati.e acconts of the
borro1er 1ith s, ,i.en the 4andate to collect the EMI$ The se
of #ost dated che<e be discora,ed as #er ,o.ern4ent ,idelines in conte;t to co4#liance
of SAo Areen 3once#t$
49
ORIENTAL HOME LOAN
.iii6 !23s obtain in e;istin, acconts 4ay retain and #resented for reco.ery install4ent as
#er e;istin, ter4s$ Ho1e.er, the borro1er be ,i.en o#tion to s1itch o.er to E3%= standin,
instrctions=Ato 3ollection !rocedre for #ay4ent of ftre install4ent$
.i$6 Altho,h the re#ay4ent #eriod is allo1ed #to )(( 4onths, ho1e.er, in .ie1 of #1ard
flctation in rate of interest, the sanctionin, athority is #er4itted to e;ercise follo1in, t1o
o#tions sbBect to e;#ressed consent of the borro1er(s"&
a" To recalclate = re.ise the e;istin, EMI a4ont for reco.ery of the then otstandin, in
re4ainin, e;istin, re#ay4ent #eriod takin, in to accont the increase in rate of interest$
b" To reco44end Head Office for increasin, the re#ay4ent #eriod of loan 1ith sa4e =
re.ised EMI 1here.er re<ired !&Ject to a ma.imm of BHC mont-!6 "o5e$er8 5-ile
recommendin/ it &e a!certain t-at t-e &orro5er i! -a$in/ repayin/ capacity to pay
ftre in!tallment6
50
ORIENTAL HOME LOAN
*ETAIL' OF RATE OF INTERE'T APPLICABLE ON (ARIO+'
"O+'IN, 'C"EME'
"o!in/ Loan!
,ranted At
Floatin/ Rate
+P TO AF YEAR'
+p to R! BC lac! BR U($7'? P*($8'? BR U($7'?P *($8'?
A&o$e R!6BC7IF lac! BRU($'(?P*($/(? BRU($'(? P*($/(?
A&o$e R!6IF lac!7
R!6 B6CC Crore!
BRU($6'?P **$*'? BR U($6'?P**$*'?
A&o$e R!6 B6CC
Crore!
Intere!t rate !-all &e decided &y !anctionin/
at-ority on ca!e7to7ca!e &a!i!6
Earnest Money
finance sche4e
For prc-a!e of plot 4 flat4 -o!e in ,o$t6
!pon!ored !c-eme!
BR U*$'(? P **$/(?
Financin/ Of
Earne!t Money
Rate of intere!t for prc-a!e of plot 4 flat4
-o!e
BR U*$'(? P **$/(?
51
ORIENTAL HOME LOAN
COMPARATI(E HOME
LOAN INTERE%T RATE%
52
ORIENTAL HOME LOAN
Chapter 1 HOME LOAN INTERE%T RATE% -OR 2I--ERENT BAN+%
(As on 7* %e#te4ber 7(*7"
Bank Name Floatin/ Intere!t rate
Proce!!in/ Fee
Prepayment
C-ar/e!
'tate Bank Of India @CE
',((( U ser.ice ta; (F#to
)(lacs", *(,((( U ser.ice ta;
(abo.e )(lacs"
Nil
ICICI Bank
'c-eme I 2@C6FCE >Fi.ed
@ yr=
'c-eme II 2 @C6IFE
>Fi.ed Ayr!=
'c-eme III 2 @C6IFE
>Fi.ed Byr!=8
t-en @C6FCE
($'(? of loan a4ont #to *
crore
N$A
"*FC Ltd
'c-eme I 2 @@E >+pto
@CLac!=
'c-eme II2 @C6FCE
($'? or 4a;i44
*(,(((User.ice ta; (*7$)8?"
No #re#ay4ent
char,es shall be
#ayable for #artial or
fll #re#ay4ents
irres#ecti.e of the
sorce
"'BC Bank @CE to @BE
INR *(,((( #ls ser.ice ta;
5 cess
*? of the loan
a4ont a##lied for,
sbBect to a
4ini44 of Rs
*(((( #ls ser.ice
ta;$ This fee is
#ayable on
a##lication and is
not refndable
LIC "o!in/ 'c-eme I 2 @C6IFE
'c-eme II 2 @C6ICE
>Fi.ed for B yr!=8 @@6@FE
>Fi.ed for F yr!=
F# to )( lacs & *(,((( U
(%er.ice ta;"
)( - '( lacs & *',((( U
(ser.ice ta;"
Nil
53
ORIENTAL HOME LOAN
'c-eme III 2 @C6MFE
>Fi.ed for @C yr!=
'( lacs - *3r & 7(,((( U
(ser.ice ta;"
*3r 5 abo.e & 7(,((( U
(ser.ice ta;"
A3I' Bank
'c-eme I 2 @@6IFE
>Fi.ed for AC yr!=
'c-eme II 2 @C6IFE
*? of the Loan A4ont
7? (-or %che4e I"
Nil (-or %che4e II"
I*BI @C6IFE
F# to *?of loan a4ont
(Rs 7'(( to be collected at
lo,in and balance at the ti4e
of sanction "
If Balance Transfer
then 7? Other1ise
Nil
IN, (y!ya @C6IFE ($'? of the loan a4ont NIL
'tandard C-artered
M6MME >+pto AFLac!=8
t-en @C6DCE
Rs$6'((=- U %er.ice ta; NIL
*"FL @@6FCE *? NIL
Citi&ank @C6FCE
($7'? (for salaried ", ($'(?
( for %elf E4#loyed"
NIL
*et!c-e Bank @C6IFE *(((( U %er.ice Ta;
# to /(? no
char,es after that
7$'?
India Bll!
@C6FCE >+pto AFLac!=8
t-en @C6IFE
F# to 7' lacs &
',(((U*7$)8?(%er.ice ta;"
7' lacs 5 abo.e &
*',(((U*7$)8?(%er.ice ta;"
NIL
Alla-a&ad Bank
@C6FCE >+pto AF Lac!=8
@C6IFE
($'(? of loan a4ont,
Ma;i44 Rs$ *(,(((=-
NIL
Bank of Ma-ara!tra
@C6KCE >+pto AF lac!=
t-en @@E
Nil (F#to 7'Lacs"
($'(? (Ma; Rs '(,(((=-"
(7'lacs 5 abo.e"
N$A
Central Bank of India @C6FCE
($'( ? of loan a4ont,
4a;i44 Rs$7(,(((=-
N$A
Corporation Bank
@C6IFE >+pto AFLac!=8
t-en @@E
F#to )( lacs ($0(?
)(-6' lacs & ($'(?
6' lacs 5 abo.e & ($8(?
NIL
54
ORIENTAL HOME LOAN
Bank of India @C6FCE
F#to 7' lacs & ($'(? of the
loan a4ont Min Rs$0(((=-
and Ma; Rs$*(,(((
7' - 6' lacs & -lat Rs$7(,(((
6' lacs 5 abo.e -lat
Rs$7',(((
NIL
+nion Bank of India @C6FCE
($'(? of the loan a4ont
sbBect to 4a;i44 of Rs$
*',(((
NIL
+nited Bank of India
@C6ICE >pto AF lac!=
t-en @C6IFE
($'(? of the loan a4ont N$A
+CO Bank @AE 7 @A6FCE N$A N$A
Bank of Baroda @C6FCE N$A N$A
Canara Bank @@E
Oriental Bank of
Commerce
@C6MCE
($'? of the loan a4ont or
4a;i44 Rs$*7,'((=-
NIL
Kotak Bank @C6IFE ($7'? - ($'?
7? on Balance
transfer else NIL
*ena Bank @C6FCE N$A N$A
PnJa& National Bank @C6IFE
Fir!t Ble "ome Finance
@C6FCE >for 'alaried 4
'EP=8 @@E >For 'elf
Employed= >+pto
AFLac!=8 T-en @C6IFE
>for 'alaried 4 'EP=8
@@6AFE >For 'elf
Employed=
'alaried - ($'? or 8(((
1hiche.er is less #ls doc
char,es #ls ta;es (#to 7'
lacs", ($'? or *((((
char,es #ls ta;es (7'-6'
lacs", ($'? or *'(((
char,es #ls ta;es (abo.e 6'
lacs"$
'elf Employed - ($'? #ls
doc char,es #ls ta;es$
Nil
(iJaya Bank @@6BCE N$A N$A
'yndicate Bank @C6FCE > pto AF lac! =8 N$A N$A
55
ORIENTAL HOME LOAN
t-en @C6IFE
Indian O$er!ea! Bank @C6FCE N$A N$A
Reliance @AE 7 @A6FCE ($'? of loan a4ont NIL
Federal Bank @C6IBE
($'(? of the li4it sanctioned
1ith a 4ini44 of *(((=-
NIL
*e$elopment Credit
Bank
@@6FCE ($'?
If 7'? of
otstandin, a4ont
is #aid 1ithin )
years - No !enalty ,
other1ise 7? of
otstandin, a4ont
'tate Bank of Tra$ancore @@6AFE
Li4it #to Rs$7',((( - Nil
Li4it abo.e Rs$7',((( to
Rs$7 lacs - ($''? of the loan
a4ont (Ma;$Rs$'((=-"
Li4it abo.e Rs$7 lacs -
($''? of the loan a4ont
4a;i44 Rs$*((((=-
NIL
Tata capital "o!in/
Finance ltd
@C6IFE
($' to *? off the loan
a4ont$
N$A
*-analak!-mi Bank
@A6FCE >+to AFLac!=8
t-en @A6IFE
a" Loans F#to 7( lacs - Non
Refndable fee of Rs )'((
#ls ser.ice ta;
b" Loans abo.e 7( lacs - Non
Refndable fee of Rs '(((
#ls ser.ice ta;
NIL
Indian Bank @@E
*" ($7' ? on Loan a4ont
(Non refndable" (to be
re4itted at the ti4e of
sb4ission of a##lication"
7" ($)7 ? on Loan a4ont
(at the ti4e of acce#tance of
sanction"
Nil
56
ORIENTAL HOME LOAN
RE'EARC"
MET"O*OLO,Y
57
ORIENTAL HOME LOAN
RE'EARC" MET"O*OLO,Y
RE'EARC" *E'I,N
The for4idable #roble4 that follo1s the task of definin, the research #roble4 is the
#re#aration of the research #roBect #o#larly kno1n as the research desi,n$
PROBLEM 'TATEMENT7 T-e 4ain #r#ose of doin, this #roBect is hel#s to choose the
ri,ht ho4e loan sche4es for #rchase hose$ @arios #blic and #ri.ate instittions ha.e
entered in this field$ These instittions ha.e initiated .arios hose financin, sche4es to
cater the di.ersified needs of this sector$ %o that I a4 analysis of Hosin, -inance sche4es
of H2-3 Bank, I3I3I Bank, !NB 5 %BI Bank$
The research 1ill be e;#loratory in natre$ A #o#lation of #eo#les 1ho take ho4e loan fro4
these banks 1ill be considered for this stdy$ I 1ill try to e;#lore abot the ho4e loans 1hich
1old 4ake a difference in the beha.ior of the cons4er$ Effort 1ill be 4ade to thro1 li,ht
on 4ost of the factors 1hich ha.e either indirect or direct effect on the beha.ior of the
cons4er$
58
ORIENTAL HOME LOAN
'amplin/ plan
%a4#lin, #lan is necessary becase it is al4ost i4#ossible to e;a4ine the entire #o#lation
in li4ited ti4e $ %o that I a4 choosin, si4#le rando4 sa4#lin, #lan for 4y #roBect$
'amplin/ !i?e
A sa4#le si>e is '( , fro4 the central #art of Lckno5$ Becase it is not #ossible to co.er the
1hole cities in a.ailable ti4e #eriod$ %o that it is necessary to take the sa4#le si>e, in '(
si4#le rando4 res#ondents$
'orce! of data
!ri4ary 2ata- Thro,h <estionnaire
%econdary 2ata- Internet, 4a,a>ine, ne1s #a#ers etc
'amplin/ tool
2ata 1ill be collected sin, #e!tionnaire8 1hich 1ill inflence the finance decision of the
si4#le rando4 #erson$
59
ORIENTAL HOME LOAN
IMPORTANCE OF T"E
'T+*Y
60
ORIENTAL HOME LOAN
IMPORTANCE OF T"E 'T+*Y
This stdy is analysis of hosin, finance sche4es of Oriental Bank of 3o44erce$ It is
hel#fl in analy>in, the ho4e loan %che4es ser.ice #ro.ided to the csto4er and their
co4#arison$ This stdy 1as condcted by the researcher in LF3+NO:, becase of
constraints of ti4e and 4oney stdy cold not be e;tended to other cities$ As LF3+NO:
bein, a #o#lar and a4on, the ,ood cities of India is a ,ood 4arket of financial #rodcts 5
also here csto4ers of different classes like bsiness se,4ent, ser.ice se,4ent, and
#rofessional se,4ent are in e;cess$ %ince the re#ort ai4s at findin, the #otential for financial
#rodcts at LF3+NO: itself takin, into consideration certain li4its and #roble4s, the area
1as chosen on the basis of co.era,e of #rodct no$ of res#ondents
61
ORIENTAL HOME LOAN
OB<ECTI(E OF T"E 'T+*Y
V To kno1 abot the Oriental Ho4e Loan$
V To stdy ho1 do ,et loan for constrction of residential hoses$
V To kno1 abot the hosin, finance sche4e$
V To kno1 the so4e of hosin, finance sche4es$
V To kno1 the latest ho4e loan rates$
V To stdy of ter4s and condition of ho4e loan$
62
ORIENTAL HOME LOAN
*ATA ANALY'I'
63
ORIENTAL HOME LOAN
*ATA ANALY'I' AN* INTERPRITATION
*" If yo are 4ake or #rchase yor o1n ho4e than are yo like to take facility of Hosin,
-inanceW
NO$ O-
RE%!ON2ENT

!ER3ENTAAE
CE% )6 60?

NO *) 78?
TOTAL '( *((?

Interpretation
The abo.e col4n chart de#icts that 60? #erson are takin, ho4e loan and only 78? are
not takin, ho4e loan$
2) If yes, :hich Hosin, -inance Bank yo choseW
64
ORIENTAL HOME LOAN
Interpretation
Total n4ber of res#ondent 1as )6
70? #erson is chose I3I3I bank
)9? #eo#le are chose H2-3 bank
*8? #erson is chose !NB bank
And, */? #eo#le are chose %BI bank
65
ORIENTAL HOME LOAN
)" Are yo a1are all ter4s and conditions of ho4e loansW
Interpretation
Total N4ber of Res#ondents 1as )6$
Many of #ersons kno1 all ter4s and conditions of ho4e loan i$e$ 8'?$
)'? #ersons had not kno1 #ro#erly abot all ter4s and conditions
66
NO$ ?
CE% 70 8'?
NO *) )'?
TOTAL )6 *((?
ORIENTAL HOME LOAN
0" Ho1 do yo co4e to kno1 abot the ho4e loan sche4es of that bankW
Interpretation
Total N4ber of Res#ondents 1as )6
77? #ersons ca4e to kno1 fro4 ne1s#a#er
*8? #ersons ca4e to kno1 fro4 tele.ision
)(? #ersons ca4e to kno1 fro4 internet
)7? #ersons ca4e to kno1 fro4 other resorce
67
NO$ ?
NE:%!A!ER 9 77?
TELE@I%ION 8 *8?
INTERNET ** )(?
OTER RE%OFR3E% *7 )7?
TOTAL )6 *((?
ORIENTAL HOME LOAN
'" Cor bank offer 1hich ty#e of ser.icesW
NO$ ?
MOBILE BAN+INA *0 )9?
NET BAN+INA *7 )7?
-OREN BAN+INA ( (?
OTHER ** )(?
TOTAL )6 *((?
Interpretation
)9 #ersons said that bank offer 4obile bankin, ser.ices$
)7 said that bank offer net bankin, ser.ices$
)(? said that bank offer other ser.ices$
And no one said that bank offer fore; bankin, ser.ices$
68
ORIENTAL HOME LOAN
8" Accordin, to yo 1hich of the follo1in, banks #ro.ides o#ti4al or econo4ical interest
rateW
NO$ ?
I3I3I 9 77?
!NB 9 77?
H2-3 *8 0)?
%BI ' *0?
TOTAL )6 *((?
INTERPRETATION
The abo.e ,ra#h sho1s that accordin, to the 0)? of total sa4#le si>e, H2-3 #ro.ides the
o#ti4al=econo4ical interest rate$ The ne;t #reference is ,i.en to I3I3I and !NB 1as
#ro.idin, the o#ti4al interest rate$ i$e$ 77? And only *0? of the res#ondent #referred %BI$
69
ORIENTAL HOME LOAN
6" :hich featre of yor sche4e satisfied yo to take itW
NO$ ?
LO: IN%TALLMENT *6 08?
MANIMFM TIME !ERIO2 *) )'?
HIAH IN%TALLMENT 0 **?
NOTHINA ) 9?
TOTAL )6 *((?
INTERPRETATION
The abo.e ,ra#h sho1s that accordin, to the 08? res#ondent satisfy, lo1er install4ent$ )'?
1as satisfy 4a;i44 ti4e #eriod, **? 1as satisfy hi,h install4ent And only 9? of the
res#ondent not satisfy any featre of loan sche4es$
9" Ho1 1old yo rate the o.erall <ality of yor relationshi# 1ith banks of hosin, finance
considerin, all of yor e;#eriences 1ith the4W :old yo say it isXX$
70
ORIENTAL HOME LOAN
INTERPRETATION
Accordin, this chart, 4ostly 0/? res#ondent rate the o.erall <ality of yor relationshi#
1ith banks of hosin, finance J,oodK )7? are JfairK, */? J.ery ,oodK and no one rate in
J#oorK$
71
NO$ ?
@ERC AOO2 6 */?
AOO2 *9 0/?
-ATR *7 )7?
!OOR ( (?
TOTAL )6 *((?
ORIENTAL HOME LOAN
/" On a scale of * to ' 1here * re#resents Je;tre4ely dissatisfiedK and ' re#resents J
e;tre4ely satisfiedK Ho1 1old yo rate yor le.el of satisfaction 1ith banks of hosin,
finance in re,ards to #riceW
NO$ ?
EN3ELLENT ' *0?
@ERC AOO2 / 70?
-AIR 77 '/?
!OOR * )?
TOTAL )6 *((?
INTERPRETATION
Mostly '/? res#ondent le.el of satisfaction is JfairK re,ardin, to #rice, 70? rated in .ery
,ood, *0? rated in e;cellent, and only )? rated in #oor $
72
ORIENTAL HOME LOAN
*(" In the case of sitability of EMI, 1hich bank 1old yo #referW
NO$ ?
I3I3I 9 77?
%BI 8 *8?
H2-3 *' 0(?
!NB 9 77?
TOTAL )6 *((?
INTERPRETATION
The abo.e ,ra#h sho1s that accordin, to the 0( #ercenta,e of total sa4#le si>e, H2-3
#ro.ides sitable EMI$ The ne;t #reference is ,i.en to I3I3I and !NB has recei.ed the third
#reference for #ro.idin, sitable EMI$ And only *8 #ercent of the sa4#le #referred %BI$
73
ORIENTAL HOME LOAN
**" Are yo satisfy by the ti4e taken in sanctionin, the loanW
NO$ ?
CE% 7' 89?
NO *7 )7?
TOTAL )6 *((?
Interpretation27
89 ?#ersons are satisfied by the ti4e taken
)7? #ersons are not satisfied by the ti4e taken
*7" And, IN case of lon, ter4 1hich bank 1old yo chooseW
74
ORIENTAL HOME LOAN
NO$ ?
I3I3I 9 77?
%BI 9 77?
!NB 8 *8?
H2-3 *' 0(?
TOTAL )6 *((?
Interpretation27
The abo.e chart de#icts that 4a;i44 n4ber of #eo#le has #referred H2-3 bank for lon,
ter4 loans and 77 #ercent of #eo#le has ,i.en #reference to I3I3I 5 %BI and only *8? has
,i.en #reference to !NB$
*)" Ha.e yo face any difficlty drin, takin, the loanW
75
NO$ ?
CE% *( 76?
NO 76 6)?
TOTAL )6 *((?
ORIENTAL HOME LOAN
Interpretation
76? #ersons face difficlty drin, takin, the loan$
6)? #ersons does not face any difficlty drin, takin, the loan
*0" Are yo a,ree 1ith the after ho4e loan ser.ices #ro.ided by yor bank are best as
co4#are to other bankW
NO$ ?
%TRONALC AAREE 0 **?
AAREE 76 6)?
76
ORIENTAL HOME LOAN
2I%AAREE 8 *8?
%TRONALC 2I%AAREE ( (?
TOTAL )6 *((?
Interpretation
**? a4on, all cons4ers are stron,ly a,reed by after sale ser.ices of the bank$
6)? a4on, all cons4ers are a,reed by after sale ser.ices of the bank
*8? a4on, all cons4ers are disa,reed by after sale ser.ices of the bank
( a4on, all cons4ers are stron,ly disa,reed by after sale ser.ices of the bank$
*'" On a scale of * to ' 1here * re#resents J e;tre4ely dissatisfiedK and ' re#resents J
e;tre4ely satisfiedK, 2id yo think the #rocessin, syste4 isW
77
NO$ ?
EN3EELLENT ' *0?
@ERC AOO2 *) )'?
AOO2 *7 )7?
A@ERAAE 6 */?
TOTAL )6 *((?
ORIENTAL HOME LOAN
Interpretation
Total n4ber of res#ondent 1as )6$
)'? said #rocessin, ser.ices is .ery ,ood$
)7? said #rocessin, is ,ood$
*/? said a.era,e and only *0? said e;cellent$
78
ORIENTAL HOME LOAN
*8" Ho1 likely are to reco44end 1hich bank of hosin, finance to a friend or relati.e W
Interpretation
0*? #eo#le reco44end H2-3 bank of hosin, finance to a friend or relati.e, 70? are %BI,
*/? ARE I3I3I and only *8? are reco44ended !NB$
79
NO$ ?
I3I3I 6 */?
H2-3 *' 0*?
%BI / 70?
!NB 8 *8?
TOTAL )6 *((?
ORIENTAL HOME LOAN
*6" :hich ,rade yo 1ant to ,i.e of ho4e loan sche4es of yor bankW
NO$ ?
EN3ELLENT 6 */?
AOO2 7* '6?
A@ERAAE / 70?
BELLO:% A@ERAAE ( (?
TOTAL )6 *((?
Interpretation
*/? #ersons ,i.e e;cellent ,rade of the bank$
'6? #ersons ,i.e ,ood ,rade to the bank$
Only 70? #ersons ,i.e a.era,e ,rade to the bank$
No one ,i.e belo1 a.era,e ,rade to the bank
*9" Accordin, to yo , 1hich #ositi.e as#ect is #layin, 4ore si,nificant role in sccess of
hosin, finance banksW
80
ORIENTAL HOME LOAN
NO$ ?
%ALE% !ROMOTION 8 *8?
3O%TOMER
-RENLCNE%%
9 77?
LO:ER INTERE%T
RATE%
*7 )7?
LO:ER EMIL% ) 9?
EA%C LOAN
%AN3TIONINA
9 77?
TOTAL )6 *((?
Interpretation
The abo.e ,ra#h de#icts that )7? said Lo1er interest rates are the 4ain as#ect for the
sccess of hosin, finance$ 77? said csto4er friendliness and easy loan sanctionin,$ *8?
said sales #ro4otion and brandin,$ And only 9? said lo1er EMIL% is #ositi.e as#ects$
81
ORIENTAL HOME LOAN
*/" any s,,estion that yo 1ant to ,i.eX$$
NO$ ?
Ai.e 1ell ser.ices to
csto4er
*' '(
loan sanction ti4e #eriod ' *6?
Redce interest rates *( ))?
%ales #ro4otion ( (
)( *((?
INTERPRITATION
Total res#ondent in s,,estion is )($
Accordin, to this ,ra#h '(? #eo#le said ,i.e 1ell ser.ices to csto4er a,*6 ? said for ti4e
#eriod, ))? said redce interest rates, and no one said for sales #ro4otion$
82
ORIENTAL HOME LOAN
FIN*IN,'
83
ORIENTAL HOME LOAN
FIN*IN,'
Accordin, to this #roBect re#ort 60? interested in hosin, finance$
)9? #eo#le like to take H2-3 bank ho4e loan$ Becase this bank ,i.e 1ell ser.ices$
I a4 findin, in this #roBect ser.e 4ore bank se ne1 technolo,y like& internet bankin,,
4obile bankin,, and fore; bankin,$
Accordin, to this ser.e csto4er satisfied lo1 install4ent sche4es of bank$
67? #eo#le did not face any difficlty drin, takin,the loan
Mostly #eo#le reco44ended H2-3 bank of hosin, finance$
84
ORIENTAL HOME LOAN
RECOMMEN*ATION
85
ORIENTAL HOME LOAN
RECOMMEN*ATION
*$ There is 4ore ti4e #eriod for re#ay4ent of ho4e loan$
7$ Hosin, finance instittion take ste#s to sol.e csto4er #roble4s i44ediately$
)$ Loan sanction date shold be accordin, to csto4er con.enient$
0$ A csto4er a1areness #ro,ra4 shold be takin, #lace in rral area$
'$ Hosin, finance bank take feedbacks of csto4ers re,ardin, featres 5 ser.ices
8$ -or the better ser.ice ne1 offers 1old be re<ire$
6$ Bank shold ,i.e all infor4ation related to ter4s and condition$
9$ To 4ake #eo#le a1are abot the benefit of beco4in, Hosin, finance BankLs %ales
E;ecti.e, follo1in, acti.ities of ad.ertise4ent shold be done thro,h
/$ !rint Media$
*($ Hoardin, 5 Banners$
**$ 2istribtion of leaflets containin, details infor4ation
*7$ Make #eo#le nderstand abot the .arios benefits of its #rodcts$$
86
ORIENTAL HOME LOAN
CONCL+'ION
87
ORIENTAL HOME LOAN
CONCL+'ION
Hosin, is a ,ro1in, indstry$ @arios #blic and #ri.ate instittions ha.e entered in this
field$ These instittions ha.e initiated .arios hose financin, sche4es to cater the
di.ersified needs of this sector$ Besides the e4er,in, and e;#andin, instittional set #, the
syste4 of credit deli.ery of hosin, is still inade<ate$ The res#onsibility to #ro.ide hose
finance lar,ely 1as rested 1ith the 3entral Ao.ern4ent till the early ei,hties$ The settin, #
of the NHB in */99, as the a#e; hosin, finance instittion, 1as the be,innin, of the
e4er,ence of hosin, finance as a fnd based financial ser.ice in the contry$ Its role fall
into three cate,ories #ro4otional, financial and re,latory$ Hosin, finance instittions 4st
beco4e self sstainin, nits 1hich 1ork on fll cost reco.ery basis and de.ice inno.ati.e
financial instr4ents to 4obili>e their resorces fro4 hosehold sector$
88
ORIENTAL HOME LOAN
LIMITATION'
89
ORIENTAL HOME LOAN
LIMITATION
Altho,h best of the efforts 1ere 4ade to condct a #refect sr.ey bt still it faces certain
li4itation$ -ollo1in, 1ere certain li4itation of this #roBect$
*$ %o4e of the res#ondents did not a1are the ter4s and condition of ho4e loan sche4es$
7$ %o4e of the res#ondents did not ans1er all the <estions$ This cold ha4#er the final reslts
to a certain e;tent$
)$ :e had li4ited ti4e for condctin, this sr.ey re#ort$
0$ The stdy confines itself to the res#ondents of JLF3+NO:K only$ Hence findin,s 1old
not be rele.ant to other cities.
'$ !eo#le 4ind set abot the sr.ey 1as an obstacle in ac<irin, co4#lete infor4ation 5
#ositi.e interaction$
8$ Res#ondents 1ere .ery bsy in their schedle$ %o it 1as .ery ti4e cons4in, for the4 to
ans1er all the <estions #ro#erly$
90
ORIENTAL HOME LOAN
BIBLIO,RAP"Y
91
ORIENTAL HOME LOAN
BIBLIO,RAP"Y
%EB'ITE'
htt#&==111$deal0loans$co4=ho4e-loans-interest-rates$#h#
htt#&==111$bankba>aar$co4=ho4e-loan$ht4l
htt#s&==111$obcindia$co$in=obcne1=site=inner$as#;WstatsPR*54enTidP7)
REFERENCE'
3atalo,s
/Research Methodolo,yK -J3$R$+othariK$
92
ORIENTAL HOME LOAN
APPEN*ICE'
93
ORIENTAL HOME LOAN
0+E'TIONNAIRE
2ear res#ondant,
As a #art of 4ba crricl4, i a4 condctin, a stdy on JORIENTAL HOME LOANY$ Co
are re<ested to #lease coo#erate by #ro.idin, rele.ant infor4ation$ I assre yo that
infor4ation 1ill ke#t confidential and 1ill be sed for stdy #r#ose only$
Thank yo
Cors faithflly
NAME---------------------------------------------------------------------------------
AAE----------- Nationality----------------------- Inco4e------------------------
3ontact n4ber--------------------------------,
Address-----------------------------------------------------------------------------------
-----------------------------------------------------
:hat is yor occ#ationW
Bsiness 4anZ
Ao.ern4ent e4#loyeeZ
Hose 1ifeZ
%tdentZ
OtherZ
*" If yo are 4ake or #rchase yor o1n ho4e than are yo like to take facility of Hosin,
-inanceW
A$ Ces B$ No
94
ORIENTAL HOME LOAN
7"$ If yes :hich Hosin, -inance Bank yo chose W
A$ I3I3I Bank
B$ H2-3 Bank
3$ !nBab national bank
2$ %BI bank
E$ other
)" Are yo a1are all ter4s and conditions of ho4e loansW
A$ CesZ B$ NoZ
0" Ho1 do yo co4e to kno1 abot the ho4e loan sche4es of that bankW
A$ Ne1s #a#erZ B$ Tele.isionZ
3$ Internet Z 2$ Other resorcesZ
'" Cor bank offer 1hich ty#e of ser.icesW
A$ Mobile bankin,Z B$ Net bankin,Z
3$ -ore; bankin,Z 2$ OtherZ
8" Accordin, to yo 1hich of the follo1in, banks #ro.ides o#ti4al or econo4ical interest
rateW
A$ I3I3I Z B$ !NBZ 3$ H2-3Z 2$ %BIZ
6" :hich featre of yor sche4e satisfied yo to take it W
A$ Lo1 install4entZ B$ Ma;i44 ti4e #eriodZ
3$ Hi,h install4ent a4ontZ 2$ Nothin,Z
9" Ho1 1old yo rate the o.erall <ality of yor relationshi# 1ith banks of hosin, finance
95
ORIENTAL HOME LOAN
considerin, all of yor e;#eriences 1ith the4W :old yo say it isXX$
A$ @ery ,oodZ B$ AoodZ 3$ -airZ 2$ !oorZ
/" On a scale of * to ' 1here * re#resents Je;tre4ely dissatisfiedK and ' re#resents J
e;tre4ely satisfiedK Ho1 1old yo rate yor le.el of satisfaction 1ith banks of hosin,
finance in re,ards to #riceW
A$ E;cellentZ B$ @ery ,oodZ 3$ AoodZ 2$ !oorZ
*(" In the case of sitability of EMI, 1hich bank 1old yo #referW
A$ I3I3IZ B$ %BIZ 3$ H2-3Z !NBZ
**" Are yo satisfy by the ti4e taken in sanctionin, the loanW
A$ Ces B$ No
*7" And, IN case of lon, ter4 1hich bank 1old yo chooseW
A$ I3I3IZ B$%BIZ 3$!NBZ 2$H2-3Z
*)" Ha.e yo face any difficlty drin, takin, the loanW
A$ CesZ B$ NoZ
*0" Are yo a,ree 1ith the after ho4e loan ser.ices #ro.ided by yor bank are best as
co4#are to other bankW
A$ %tron,ly a,reeZ B$ A,reeZ
3$ 2isa,reeZ 2$ %tron,ly disa,reeZ
*'" On a scale of * to ' 1here * re#resents J e;tre4ely dissatisfiedK and ' re#resents J
96
ORIENTAL HOME LOAN
e;tre4ely satisfiedK, 2id yo think the #rocessin, syste4 isW
A$ E;cellentZ B$ @ery AoodZ
3$ AoodZ 2$ A.era,eZ
*8" Ho1 likely are to reco44end 1hich bank of hosin, finance to a friend or relati.e W
A$ I3I3IZ B$H2-3Z
3$ %BIZ 2$ !NBZ
*6" :hich ,rade yo 1ant to ,i.e of ho4e loan sche4es of yor bankW
A$ E;cellentZ B$ AoodZ 3$ A.era,eZ 2$ Bello1s a.era,e
*9" Accordin, to yo , 1hich #ositi.e as#ect is #layin, 4ore si,nificant role in sccess of
hosin, finance banksW
A$ %ales #ro4otion 5 brandZ
B$ 3sto4er friendly ho4e loan sche4esZ
3$ Lo1er interest ratesZ
2$ Lo1er EMILs Z
E$ Easy sanctionin, of the ho4e loanZ
*/" Any s,,estion that yo 1ant to ,i.eXXXXXX
97

Obc Home Loan

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