PROJECT REPORT

ON
COMPARISON OF RETAIL LOANS OF
J&K BANK WITH OTHER BANKS AND
DEPOSIT SCHEMES
UNDERTAKEN AT

A dissertation submitted in partial fulfillment of the

requirement for the award of the
MASTER DEGREE IN BUSINESS ADMINISTRATION
For the Session 2012-14
UNIVERSITY OF JAMMU
By
MR. SHAGUN SHARMA

INSTITUTE OF MANAGEMENT SCIENCE

JAMMU

ACKNOWLEDGEMENT
I, Shagun Sharma, take this opportunity to extent my thanks to all those
people who helped me through the successful completion of this project
work.
It gives me a great pleasure to acknowledge my deep and sincere
gratitude to Mr. A. S. Sambyal, Executive Manager Personnel J&K
Bank Ltd.Zonal office (Central), Branches Department, Jammu for this
inspiration and constant encouragement.
I whole heartedly extend my sense of gratitude towards all the members
of J&K Bank whose help during the course of my project work and their
valuable suggestions has helped me a lot in successfully accomplishing
this project.
Finally, I would like to thanks my parents and all my friends doing their
project in various, organizations for their whole hearted cooperation,
without them this project would have not been possible.

SHAGUN SHARMA

PREFACE
Summer Training is necessary part of elementary theoretical study. It
enforces a student to be well conversant with practical aspect of
management profession.
It was allowed to carry out my Project at the Jammu and Kashmir Bank
Ltd. Zonal Office(central), Jammu as my summer training. I was given
task of study the retail loans of the J&K Bank with those of the
competitors. My aim was to provide essential information to the Bank.
This report would guide people working in the Retail banking field. I
have analyzed the retail loans with those of the competitors
I hope that the comparison of Retail Loans with the competitors will
help the bank to analysis its competitors performance.

SHAGUN SHARMA

CONTENTS

Introduction about the Financial Sector

Indian Banking introduction

Banking Meaning

History of JK Bank

Introduction about Project

A brief profile of the Competitors banks which include:

HDFC Bank
State bank of India
Punjab national bank
ICICI bank

A brief profile on Personal Loans of :

J&K Bank
The Competitors banks

A brief profile on Education Loans of :

J&K Bank
The Competitors banks

A brief profile on Housing Loans of :

J&K Bank
The Competitors banks

A brief profile on Car Loans of :

J&K Bank
The Competitors banks

INTRODUCTION TO FINANCIAL SECTOR

The financial sector is in a process of rapid transformation.
Reforms are continuing as part of the overall structural reforms aimed at
improving the productivity and efficiency of the economy. The role of
an integrated financial infrastructure is to stimulate and sustain
economic growth
The US$ 28 billion Indian financial sector has grown at around 15
per cent and has displayed stability for the last several years, even when
other markets in the Asian region were facing a crisis. This stability was
ensured through the resilience that has been built into the system over
time. The financial sector has kept pace with the growing needs of
corporate and other borrowers. Banks, capital market participants and
insurers have developed a wide range of products and services to suit
varied customer requirements. The Reserve Bank of India (RBI) has
successfully introduced a regime where interest rates are more in line
with market forces
Financial institutions have combated the reduction in interest rates
and pressure on their margins by constantly innovating and targeting
attractive consumer segments. Banks and trade financiers have also
played an important role in promoting foreign trade of the country

BANKS
The Indian banking system has a large geographic and functional
coverage. Presently the total asset size of the Indian banking sector is
US$ 270 billion while the total deposits amount to US$ 220 billion with
a branch network exceeding 66,000 branches across the country.
Revenues of the banking sector have grown at 6 per cent CAGR over
the past few years to reach a size of US$ 15 billion. While commercial
banks cater to short and medium term financing requirements, national
level

and

state

level

financial

institutions

meet

longer-term

requirements. This distinction is getting blurred with commercial banks

extending project finance. The total disbursements of the financial
institutions in 2001 were US$ 14 billion.
Banking today has transformed into a technology intensive and
customer friendly model with a focus on convenience. The sector is set
to witness the emergence of financial supermarkets in the form of
universal banks providing a suite of services from retail to corporate
banking and industrial lending to investment banking. While corporate
banking is clearly the largest segment, personal financial services is the
highest growth segment.

The recent favorable government policies for enhancing limits of

foreign investments to 49 per cent among other key initiatives have
encouraged such activity. Larger banks will be able to mobilize
sufficient capital to finance asset expansion and fund investments in
technology.
CAPITAL MARKET
The Indian capital markets have witnessed a transformation over
the last decade. India is now placed among the mature markets of the
world. Key progressive initiatives in recent years include:

The depository and share dematerialization systems that

have enhanced the efficiency of the transaction cycle

Replacing the flexible, but often exploited, forward trading

mechanism with rolling settlement, to bring about
transparency

The InfoTech-driven National Stock Exchange (NSE) with

a national presence (for the benefit of investors across
locations) and other initiatives to enhance the quality of
financial disclosures.

Corporatisation of stock exchanges.

The Securities and Exchange Board of India (SEBI) has

effectively been functioning as an independent regulator
with statutory powers.

Indian capital markets have rewarded Foreign Institutional

Investors (FIIs) with attractive valuations and increasing
returns.

The Mumbai Stock Exchange continues to be the premier

exchange in the country with an increase in market
capitalization from US$ 40 billion in 1990-1991 to US$
203 billion in 1999-2000. The stock exchange has about
6,000 listed companies and an average daily volume of
about a billion dollars

Many new instruments have been introduced in the

markets, including index futures, index options, derivatives
and options and futures in select stocks.

INDIAN BANKING
INTRODUCTION
The Indian banking can be broadly categorized into
nationalized (government owned), private banks and
specialized banking institutions. The Reserve Bank of
India

acts

centralized

body

monitoring

any

discrepancies and shortcoming in the system. Since the

nationalization of banks in 1969, the public sector banks
or the nationalized banks have acquired a place of
prominence and has since then seen tremendous
progress. The need to become highly customer focused
has forced the slow-moving public sector banks to adopt
a fast track approach. The unleashing of products and
services through the net has galvanized players at all
levels of the banking and financial institutions market
grid to look anew at their existing portfolio offering.
Conservative banking practices allowed Indian banks to
be insulated partially from the Asian currency crisis.
Indian banks are now quoting al higher valuation when
compared to banks in other Asian countries (viz. Hong
Kong, Singapore, Philippines etc.) that have major

problems linked to huge Non Performing Assets (NPAs)

and payment defaults. Co-operative banks are nimble
footed in approach and armed with efficient branch
networks focus primarily on the high revenue niche
retail segments.
The Indian banking has finally worked up to the
competitive dynamics of the new Indian market and is
addressing

the

relevant

issues

to

take

on

the

multifarious challenges of globalization. Banks that

employ IT solutions are perceived to be futuristic and
proactive players capable of meeting the multifarious
requirements of the large customers base. Private banks
have been fast on the uptake and are reorienting their
strategies using the internet as a medium The Internet
has emerged as the new and challenging frontier of
marketing with the conventional physical world tenets
being just as applicable like in any other marketing
medium.
The Indian banking has come from a long way from
being a sleepy business institution to a highly proactive
and dynamic entity.

This transformation has been

largely brought about by the large dose of liberalization

and economic reforms that allowed banks to explore
new business opportunities rather than generating
revenues from conventional streams (i.e. borrowing and
lending). The banking in India is highly fragmented with
30 banking units contributing to almost 50% of deposits
and 60% of advances. Indian nationalized banks (banks
owned by the government) continue to be the major
lenders in the economy due to their sheer size and
penetrative networks which assures them high deposit
mobilization.
categorized

The Indian banking can be broadly

into

nationalized,

private

banks

and

specialized banking institutions.

The Reserve Bank of India act as a centralized body
monitoring any discrepancies and shortcoming in the
system. It is the foremost monitoring body in the Indian
financial

sector.

The

nationalized

banks

(i.e.

government-owned banks) continue to dominate the

Indian banking arena. Industry estimates indicate that
out of 274 commercial banks operating in India, 223
banks are in the public sector and 51 are in the private

sector.

The private sector bank grid also includes 24

foreign banks that have started their operations here.

Under the ambit of the nationalized banks come the
specialized banking institutions.
rural

banks

focus

on

areas

These co-operatives,
of

agriculture,

rural

development etc., unlike commercial banks these cooperative banks do not lend on the basis of a prime
lending rate. They also have various tax sops because
of their holding pattern and lending structure and hence
have lower overheads.

This enables them to give a

marginally higher percentage on savings deposits.

Many

of

these

cooperative

banks

diversified

into

specialized areas (catering to the vast retail audience)

like car finance, housing loans, truck finance etc.

in

order to keep pace with their public sector and private

counterparts, the co-operative banks too have invested
heavily in information technology to offer high-end
computerized banking services to its clients.
TYPES OF BANKS
a) State Bank of India and Associates

b) Nationalized Banks
c) Domestic Private Sector Banks
d) New Domestic Private Sector Banks
e) Foreign Banks
Complementing the roles of the nationalized and
private banks are the specialized financial institutions or
Non Banking Financial Institutions (NBFCs).

With their

focused portfolio of products and services, these Non

Banking Financial Institutions act as an important
catalyst in contributing to the overall growth of the
financial services sector. NBFCs offer loans for working
capital

requirements,

facilitate

mergers

and

acquisitions, IPO finance, etc. apart from financial

consultancy services.

Trends are now changing as

banks (both public and private) have now started

focusing on NBFC domains like long and medium-term
finance, working cap requirements. IPO financing to etc.
to

meet

the

community.

multifarious

needs

of

the

business

NEW GENERATION BANKING

The

liberalize

policy

of

Government

of

India

permitted entry to private sector in the banking, the

industry has witnessed the entry of nine new generation
private banks. The major differentiating parameter that
distinguishes these banks from all the other banks in the
Indian banking is the level of service that is offered to
the customer.

Verify the focus has always been

centered around the customer understanding his

needs, preempting him and consequently delighting him
with various configuration of benefits and a wide
portfolio of products and services.

These banks have

generally been established by promoters of repute or by

high

value

domestic

financial

institutions.

The

popularity of these banks can be gauged by the fact that

in a short span of time, these banks have gained
considerable customer confidence and consequently
have shown impressive growth rates. Today, the private
banks corner almost four per cent share of the total
share of deposits. Most of the banks in this category are
concentrated in the high-growth urban areas in metros

(that account for approximately 70% of the total

banking business).

With efficiency being the major

focus, these banks have leveraged on their strengths

and

competencies

viz.

Management,

operational

efficiency and flexibility, superior product positioning

and higher employee productivity skills.
The private banks with their focused business and
service portfolio have a reputation of being niche
players in the industry.

A strategy that has allowed

these banks to concentrate on few reliable high net

worth companies and individuals rather than cater to
the mass market.

These well-chalked out integrates

strategy plans have allowed most of these banks to

deliver superlative levels of personalized services. With
the Reserve Bank of India allowing these banks to
operate 70% of their businesses in urban areas, this
statutory requirement has translated into lower deposit
mobilization costs and higher margins relative to public
sector banks.

BANKING
Banks are the institutions where those who have some savings can
keep their money in the form of deposits & those who need money
borrow money on payment of

interest with certain conditions that

assure recovery of the borrowed money. The rate of interest charged by

the bank from its borrower is usually higher than what it pays to the
depositor. In addition to the safe money keeping of depositor and money
lending to the borrower a bank also helps people in many kinds of
money transactions. In brief the main functions of bank are: Receiving money from the depositors

 Lending money on demand

Transferring money from one place to another
Receiving payment for public utility services such as
telephone bills electricity and water bills, house tax etc
Renting safe deposits locker for safe custody of valuables
Helping travelers and tourist by providing travelers cheques
and foreign currency Etc.

The various types of account provided by the bank are as follows:

Saving account
Current account
Term or fixed deposits
Recurring deposits
SAVING ACCOUNT

In this account any person can open an account in a bank even

with a small amount of 100 rupees only. After opening the account the
account holder can go on depositing the money into his/her account.
He/She can also withdraw money from his/her account whenever
required through a withdrawal form or Cheque.
CURRENT ACCOUNT
This account is usually maintained by businessman, companies,
govt. organization that have to do a no. of money transactions daily due
to the nature of their work. No interest is paid for the money kept in this
account.

TERM DEPOSIT
In this scheme money is deposited for a fixed period. Money can
be withdrawn after the expiry of the fixed period, which is specified at
the time of opening the account. The bank uses this money more freely
than money kept in saving bank account.
RECURRING DEPOSITS

In this account depositor chooses a specified amt. and deposit

that amt. every month for a fixed period chosen by him/her in the
beginning. The periods vary from six months to 10 years. The rate of
interest is same on these deposits as in case of term deposits

HISTORY OF J&K BANK

The J&K Bank Ltd. incorporated on October 1st, 1938
commenced business on July 4th, 1939. From a small beginning the
bank has grown to become a giant with a network of 600 branches
spread over the length and breadth of the country. A significant
contributing factor for this fast growth is the solid founding principles

which are dedicated to the cause of transforming the Bank not only as a
financial heart but also the social heart of the community.
The J & K Bank is the first state owned bank of the country and
53% of equity is held by the Govt. of J & K .The bank has a consistent
track record of growth and profitability . It has a unique distinction of
being banker to the J & K State Govt. and has has also been appointed
by RBI as its agency in J & K , responsible for carrying general banking
business of the Central Govt. and collection of Taxes pertaining to the
Central Board of Direct Taxes.
The landmark achievements in the diversification of the banks
including the sponsoring of two Regional Rural Banks viz., Kamraz
Rural Bank and Jammu Rural Bank; permission for dealing in foreign
Exchange, holding the Lead bank responsibilities in eight of the fourteen
districts in J & K, governorship of State Level Bankers Committee
(SLBC) and State Level Export Promotion Committee ( SLEPC ). The
bank is the only one non-nationalized sector, having been entrusted with
such assignments and has come up to the expectations of RBI and other
agencies, like CBDT.
The bank has been swift in responding to the need for technology
adaptation in meeting its commitment to the customers and offers the

best of services and a wide range of products. The bank is investing in a

big way in information technology; Installation of ATMs at Residency
Road , Srinagar and Gandhi Nagar ,Trikuta Nagar, Jammu Ahamadabad
and Mera Road Mumbai and at other important centres; introduction of
EFT and E-Mail services substantiate this fact. The number of
computerized branches of the bank has risen to 246 as on March 2001,
which accounts for 80 per cent of total bank business. The tele-banking
facilities are available at 23 branches with such services being extended
to 65 branches in the near future. The anywhere banking facility
available at 23 branches shall be raised to 65 soon. The Bank is in the
process of connecting its branches through VSAT and lease lines from
the existing 23 to 85. The number of ATMs which is most convenient
system of extending 24 hour banking facility is 23. ATMs at six
locations including B/O Ansal Plaza, Delhi, Corporate Headquarters,
Srinagar, B/O Trikuta Nagar, Jammu, B/O Government Medical
College, Srinagar, B/O SSI Lal Chowk, Srinagar, Kashmir, B/O SKIMS,
Srinagar and B/O Ahmedabad, are having IST Switch connectivity.
Once the Data centre is completed our bank shall be the first to
introduce the Internet Banking in the J&K State. A new concept of
customer facility Touch Screen kiosks shall be installed at 65 branches
of the bank.

J & K bank is one of the few banks in the country which has been
able to show exemplary performance in adjusting to the rigorous
prudential norms that came into force during 1992-93 and has been able
to achieve CAPITAL ADEQUACY RATIO of above 17.44 per cent a s
on 31st March, 2001, which is far ahead of RBI stipulation and is one of
the highest in the industry today.
HISTORICAL BACK GROUND
Entire banking in the state of Jammu and Kashmir was performed
by traditional lenders till 1920 -30 and that too at exorbitant interest
rates .At the same time some banks functioned at a very limited scale,
such as Punjab National Bank Limited ,Grindlay's Bank and Imperial
Bank of India .
The role of these banks was reduced to the acceptance of deposits
as they could not grant loans and advances to the people of the state
owing to the statutory limitations .Under this scenario banks could not
ameliorate the financial and social position of the people of the state . To
over come this critical situation the then Maharaja of the state conceived
an idea of setting up of a state bank in the state . After a prolonged
exercise and deliberations the assignment for establishment of " The
Jammu and Kashmir Bank Limited " was given to the late Sir Sorabji N

Pochkhanwala, the then Managing Director of the Central Bank of

India.
Mr. Pochkhawala formulated a scheme on 24-09-1930, suggesting
establishment of a semi state Bank with participation in capital by state
and the public under the control of state Government. Thus the bank was
formally incorporated on the 1st of October, 1938 and commenced
business from 4th of July 1939 at its Registered Office Residency Road
Srinagar, Kashmir.
The Jammu & Kashmir Bank Limited has been the first of its
nature and composition as a State owned bank in the country .The state
Govt. besides contributing half of the issued capital also appointed it as
its bankers for general banking and treasury business .In its formative
years , the bank had to encounter several serious problems , particularly
around the time of independence, when out of its total of ten branches
two branches of Muzaffar-abad and Mirpur fell to the other side of the
line of control(now Pak Administered Kashmir) along with cash and
other assets ;in 1947. However the State Govt. came to its rescue with
the assistance of Rs.6.00 Lacs to meet the claims however the bank
stead fastly over came its difficulties and kept growing . Following the
extension of Central laws to the state of Jammu & Kashmir, the bank
was defined as a govt. company as per the provisions of Indian

companies act 1956 .The bank had its first full time chairman in 1971,
following social Central measures in banks .The year 1971 was a
turning point for the bank on conferment of scheduled bank status and
witnessed remarkable progress in all the vital fields of operations .The
bank was declared as "A" Class Bank by Reserve Bank of India in
1976 .In recognition of dominant role and exulted performance ,
Reserve bank of India appointed the bank as its agent for performing the
general banking business of the Central Govt. especially in maintaining
currency chests and collection of taxes.

TOPIC: - COMPARISON OF J&K BANKS RETAIL

LOANS WITH OTHER BANKS.
Banking today has transformed into a technology intensive and
customer friendly model with a focus on convenience. The sector is set
to witness the emergence of financial supermarkets in the form of
universal banks providing a suite of services from retail to corporate

banking and industrial lending to investment banking. While corporate

banking is clearly the largest segment, personal financial services is the
highest growth segment.
The recent favorable government policies for enhancing limits of
foreign investments to 49 per cent among other key initiatives have
encouraged such activity. Larger banks will be able to mobilize
sufficient capital to finance asset expansion and fund investments in
technology.
Now- a days , the whole of the Indian banking Industry is passing
through the metamorphosis stage by converting itself from merely
banking to the retail banking. This is because of the happenings at the
macro level of the Indian economy. Since the Cash Reserve Ratio
(CRR) and the Statutory Liquidity ratio (SLR) is at the decrement level.
As a result of which the banks have turned themselves into the retail
banks.
Therefore, it becomes necessary to study the effects of this change
at the micro level. Since no organization works in isolation. Therefore,
the banks should analyze their performance in relation to those of the
competitors.

I, in the capacity of my summer trainee have tried to analyze the

scenario of retail banking for J&K bank with its competitors. The retail
Loans studied during my summer training include:

Personal loan

Home loan

Car loan

Educational loan

These loans have been compared with those of the competitors which
include:
HDFC Bank
State Bank of India
Punjab National Bank
ICICI Bank

THE PROFILES OF THESE BANKS

HDFC BANK

HDFC Bank was incorporated in August 1994 in the name of

'HDFC Bank Limited', with its registered office in Mumbai, India. The
Bank commenced operations as a Scheduled Commercial Bank in
January 1995.
The Housing Development Finance Corporation Limited (HDFC)
was amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as
part of the RBI's liberalization of the Indian Banking Industry in 1994.
Headquartered in Mumbai, HDFC Bank, has a network of over
531 branches spread over 228 cities across India. All branches are linked
on an online real-time basis. Customers in over 120 locations are
serviced through Telephone Banking. The Bank also has a network of
about over 1054 networked ATMs across these cities. HDFC Bank's
ATM network can be accessed by all domestic and international Visa /
MasterCard, Visa Electron / Maestro, Plus / Cirrus and American
Express Credit / Charge cardholders.
HDFC Bank has won many awards for its excellent service.
Major among them are "Best Bank in India" by Hong Kong-based
Finance Asia magazine in 2005 and "Company of the Year" Award for
Corporate Excellence 2004-05.

ICICI BANK
ICICI Bank is India's second-largest bank. The Bank has a
network of about 573 branches and extension counters and over 2,000
ATMs. ICICI Bank was originally promoted in 1994 by ICICI Limited,
an Indian financial institution, and was its wholly-owned subsidiary.
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The
objective was to create a development financial institution for providing
medium-term and long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development
financial institution offering only project finance to a diversified
financial services group offering a wide variety of products and services,
both directly and through a number of subsidiaries and affiliates like
ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank
or financial institution from non-Japan Asia to be listed on the NYSE. In
2001, ICICI bank acquired Bank of Madura Limited.
ICICI Bank set up its international banking group in fiscal 2002
to cater to the cross border needs of clients and leverage on its domestic
banking strengths to offer products internationally. ICICI Bank currently

has subsidiaries in the United Kingdom, Canada and Russia, branches in

Singapore and Bahrain and representative offices in the United States,
China, United Arab Emirates, Bangladesh and South Africa.
Today, ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of
delivery channels and through its specialised subsidiaries and affiliates
in the areas of investment banking, life and non-life insurance, venture
capital and asset management.
STATE BANK OF INDIA
State Bank of India (SBI) is India's largest commercial bank. SBI
has a vast domestic network of over 9000 branches (approximately 14%
of all bank branches) and commands one-fifth of deposits and loans of
all scheduled commercial banks in India.
The State Bank Group includes a network of eight banking
subsidiaries and several non-banking subsidiaries offering merchant
banking services, fund management, factoring services, primary
dealership in government securities, credit cards and insurance. \
The eight banking subsidiaries are:
1.

State Bank of Bikaner and Jaipur (SBBJ)

2.

State Bank of Hyderabad (SBH)

3.

State Bank of India (SBI)

4.

State Bank of Indore (SBIR)

5.

State Bank of Mysore (SBM)

6.

State Bank of Patiala (SBP)

7.

State Bank of Saurashtra (SBS)

8.

State Bank of Travancore (SBT)

The origins of State Bank of India date back to 1806 when the

Bank of Calcutta (later called the Bank of Bengal) was established. In

1921, the Bank of Bengal and two other Presidency banks (Bank of
Madras and Bank of Bombay) were amalgamated to form the Imperial
Bank of India. In 1955, the controlling interest in the Imperial Bank of
India was acquired by the Reserve Bank of India and the State Bank of
India (SBI) came into existence by an act of Parliament as successor to
the Imperial Bank of India.
Today, State Bank of India (SBI) has spread its arms around the
world and has a network of branches spanning all time zones. SBI's
International Banking Group delivers the full range of cross-border

finance solutions through its four wings - the Domestic division, the
Foreign Offices division, the Foreign Department and the International
Services division.
PUNJAB NATIONAL BANK
Punjab National Bank (PNB) was established in 1895 at Lahore.
PNB has the distinction of being the first Indian bank to have been
started solely with Indian capital. In 1969, Punjab National Bank was
nationalized along with 13 other banks
Punjab National Bank serves over 3.5 crore customers and has the
largest branch network in India - 4062 branches and 447 extension
counters spread all over the country. Punjab National Bank has achieved
many awards and distinctions. Major among them are:
Ranked 21st amongst top 500 companies by the leading
financial daily, Economic Times.
Ranked as 323rd biggest bank in the world by Bankers Almanac
(January 2006), London.
Earned 9th place among India's Most Trusted top 50 service
brands in Economic Times- A.C Nielson Survey.

 Ranked 368 amongst the top 1000 banks in the world according
to "The Banker" London.
Golden Peacock Award for Excellence in Corporate Governance
- 2005 by Institute of Directors.
FICCI's Rural Development Award for Excellence in Rural
Development - 2005.

JK
BANK PERSONAL LOAN
The personal loan scheme now renamed as JK Bank SAHOLIAT/
SARAL Financial Scheme as permanent employees of central/state
Govt., Public Sector undertakings, Autonomous Bodies, self employed
individual can take this loan
PURPOSE

To meet any kind of personal expenses, e.g., marriage, family functions,

medical, educational, travel expenses, etc.
Amount of loan: Rs.7 lakhs
Eligibility: employees of Govt. , Semi Govt. undertaking, autonomous
bodies Public Sector undertakings., self employed individual
Maximum ceiling: 9 months gross salary
Document required: important document to be furnished while
opening a personal loan account.
For existing bank customer:
a) Passport Size photograph ( salaried individual)
b) Latest salary slip and form 16 ( for self employed individual
and professionals)
c) IT returns for the last two financial years
d) Proof of professional qualification: copy of highest
professionals degree held
e) Proof of official address. This can include shop and
establishment certificate/lease deed/telephone bill
Margin

nil

Repayment

36 equal monthly installments

HDFC BANK PERSONAL LOAN

HDFC Personal Loans have been designed by HDFC Bank to suit
personal requirements of individuals like marriage, holiday, education,
purchase of any expensive commodity or any such anticipated or
unanticipated monetary involvement.

HDFC Bank, India, announced the arrival of the new generation,

technology driven commercial banks in India. HDFC Bank in India was
set up in August 1994 with the approval of Reserve Bank of India. The
bank was promoted by Housing Development Finance Corporation
Limited, a premier housing finance company of India (set up in 1977).
HDFC Personal Loans provide the following benefits:
Loans up to Rupees one million for any purpose.
Flexible Repayment Options ranging from 12 to 48 months.
Repayment through Easy Monthly Installments (EMIs).
Low Rate of Interest
Hassle free loans - No guarantor/security/collateral required
Speedy loan approval
Service at the customer's doorstep
Further, there are additional privileges for HDFC Bank account
holders like:
Special rates of interest.

 For existing Auto Loan customers with a clear repayment of 12

months or more from even any of the approved financiers of
HDFC Bank, a hassle free personal loan without income
documentation can be obtained.
For existing HDFC Bank Personal Loan customer with a clear
repayment of 12 months or more, personal loan can be enhanced.
ELIGIBILITY
a)

Salaried Individuals

b)

Self employed (Professionals)

c)

Self Employed (Individuals)

d)

Self Employed (Pvt Cos and Partnership Firms)

Each of the above groups of professionals encounters a specific

set of criteria for sanction of loan. They are also required to present a
specific set of document.
SALARIED INDIVIDUALS
Include Salaried Doctors, CAs, employees of select Public and
Private limited companies, Government Sector employees including
public sector undertakings and central, state and local bodies:
Eligibility criteria

 Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 60 years
Minimum employment: Minimum 2 years in employment and
minimum 1 year in the current organization
Minimum Net Monthly Income: Rs. 8,000
Documents required
Proof of Identity (Passport Copy/ Voters ID card/ Driving
License)
Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport
copy/Trade license /Est./Sales Tax certificate)
Bank Statements (latest 3 months bank statement / 6 months bank
passbook)
Latest salary slip or current dated salary certificate with latest
Form 16
Self employed (Professionals)
Include self - employed Doctors, Chartered Accountants,
Engineers, MBA Consultants, Architects, Company Secretaries.

Eligibility Criteria
Minimum age of Applicant: 25 years
Maximum age of Applicant at loan maturity: 65 years
Years in business: 4 to 7 years depending on profession
Minimum Annual Income Rs. 100000 p.a.
Documents required:
Proof of Identity (Passport Copy/ Voters ID card/ Driving
License).
Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport
copy/Trade license /Est./Sales Tax certificate).
Bank Statements(latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for
the last 2 yrs. certified by a CA
Qualification proof of the highest professional degree

Self Employed (Individuals) include self-employed - Sole proprietors,

Partners & Directors in the Business of Manufacturing, Trading or
Services.
Eligibility Criteria
Minimum age of Applicant: 21 years
Maximum age of Applicant at loan maturity: 65 years
Years in business: 5 yrs continuous business experience
Minimum Annual Income: Rs. 1,00,000 p.a.
Available in select cities
Documents required:
Proof of Identity (Passport Copy/ Voters ID card/ Driving
License)
Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport
copy/Trade license /Est./Sales Tax certificate)
Bank Statements(latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for
the last 2 yrs. certified by a CA

 Proof of continuation (Trade license /Establishment /Sales Tax

certificate)
Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of
Partnership Deed, Cert. Copy of MOA, AOA & Board
resolution.)
Self Employed (Pvt. Cos. and Partnership Firms) include Private
Companies and Partnership firms in the Business of Manufacturing,
Trading or Services.

Eligibility Criteria
Years in business: Minimum of 3 years in current business and 5
years total business experience
Business must be profit making for the last 2 years
Minimum Annual Income: Rs 100000 p.a.
Available in select cities
Documents required:
Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport
copy/Trade license /Est./Sales Tax certificate)

 Bank Statements(latest 6 months bank statement /passbook)

Latest ITR along with computation of income, B/S & P&L a/c for
the last 2 yrs. certified by a CA
Proof of continuation (Trade license /Establishment /Sales Tax
certificate)
Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of
Partnership Deed, Certified true copy of Memorandum & Articles
of Association (certified by Director) & Board resolution
(Original)

HIGHLIGHTS
Salaried

Self Employed
Loan Amount

Min. Rs. 25000

Min. Rs. 25000

Max. Rs. 1000000

Max. Rs. 1000000

Tenure

Min. 12 years

Min. 12 years
Interest Rate

Min. 14%

Min. 14%

Max. 22%

Max. 24%
Processing Force

2%

2%

Time to Process Loan

3 days

3 days

ICICI BANK PERSONAL LOAN

ICICI bank offers personal loans unto an amount of Rs.15 lakhs.
No security/ guarantor is required for this loan and it can be repaid over
a period of between 12 months and 60 months. They claim that
'minimum documentation' is required. You can also get an ICICI Bank
Personal Loan on the repayment track of your existing Home loan, Car
loan or Personal loan; or your Credit Card statement. If you're an ICICI
bank customer, you can get a loan without having to visit your local
branch. If you've been an ICICI customer for at least six months, you
may have been 'pre-approved' for a loan, according to ICICI.
ELIGIBILITY FOR THE ICICI PERSONAL LOAN

Salaried
The salaried and self-employed are both, eligible for this personal loan.
If you're salaried, you need to be between 25 years and 58 years of age
with a minimum net annual income of 96,000 per annum and employed
with a public limited company, a private limited company, a
multinational corporation (MNC) or with the government. You should
have been employed for atleast one year and living in your current
residence for atleast one year.

Self employed
If you're self employed, you need to be between 25 years and 65
years of age with a minimum net profit after tax of Rs.60,000 per
annum. Doctors, MBA's, Architects, CA's, Engineers, Traders &
Manufacturers are eligible. You need to have been in your profession for
atleast three years and living at your current residence for atleast one
year.
DOCUMENTATION REQUIRED
Salaried

 Latest 3 months Bank Statement (where salary/income is

credited)
3 Latest salary slips
Proof of Continuity current job (Form 16 / Company appointment
letter )
Proof of Identity (any one)Passport / Driving Licence / Voters ID /
PAN card / Photo Credit Card / Employee ID card
Proof of Residence (any one) Ration Card / Utility bill / LIC
Policy Receipt
Proof of Qualification Highest Degree (for Professionals / Govt
employees

Self employed
Latest 3 months Bank Statement (where salary/income is
credited)
Last 2 years ITR with computation of income / Certified
Financials.

 Proof of Turnover (Latest Sales / Service tax returns).

Proof of Continuity of current profession (IT Returns / Certificate
of business continuity issued by the bank).
Proof of Identity (any one) Passport / Driving License / Voters
ID / PAN card / Photo Credit Card / Employee ID card.
Proof of Residence (any one) Ration Card / Utility bill / LIC
Policy Receipt.
Proof of Office (any one) Lease deed / Utility bill / Municipal Tax
receipt / title deed.
Proof of Qualification Highest Degree (for Professionals / Govt.
employees.

HIGHLIGHTS

Salaried
Loan Amount

Min. Rs 50000

Self Employed
Min. Rs 50000

Max. Rs 1500000

Max. Rs 1500000

Tenure

Min. 12 Yrs.

Min. 12 Yrs

Interest Rate

Min. 12 %

Min. 14 %

Max. 22 %

Max. 24 %

Time to Process Loan

3 days

2 days

Processing Fee

3%

3%

STATE BANK OF INDIA PERSONAL LOAN

SBI Personal Loans also known as State Bank of India personal
finance schemes, aim to provide the necessary financial assistance to as

many people as possible to help them realize their dreams or come out
of situations of financial need. State Bank of India being India's largest
bank is a trusted name and the SBI personal loan rate of interest are kept
at the most competitive level to make a personal loan as approachable as
possible.
Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g.
expenses for domestic or foreign travel, medical treatment of self or a
family member, meeting any financial liability, such as marriage of
son/daughter, defraying educational expenses of wards, meeting margins
for purchase of assets etc.).
Advantage
Low interest rates. Further, we charge interest on a daily
reducing balance!!
Low processing charges; only 1%-2% of loan amount.
No hidden costs or administrative charges.
No security required which means minimal documentation
something that you had always wanted.

 No prepayment penalties. Reduce your interest burden and

optimally utilize your surplus funds by prepaying the loan
(1% of the loan amount will be charged if you repay the loan
before 6 months).
Long repayment period of up to 48 months.
Eligibility
You are eligible if you are a Resident Indian National having
capability to repay a loan, except agriculturists. (At present, only
salaried individuals are covered under the scheme).

HIGHLIGHTS

Salaried
Loan Type

Term Loan

Loan Amount

Min. Rs. 50,000

Max. Rs 15,00000

Tenure (Max.)

Min. 12 yrs.

Interest rate

Min. 12%
Max. 22%

Time to Process Loan

3 days

Processing Fee

3%

Self Employed
Term Loan
Min. Rs. 50,000
Max. 15,00000
Min. 12 yrs.
Min. 12%
Max. 24%
2 days
3%

PNB PERSONAL LOAN

PNB gives personal loan to all permanent defence personnel

including officials of Military Station Headquarters, BSF, CRPF, CISF,
ITBP, permanent central / state govt. employees, etc to meet all types of
personal needs. Loan can be repaid in 60 EMIs or remaining period of
services, whichever is earlier but in case of army jawans and defence
personals the tenure is of 36 EMIs or remaining period of stay at the
particular posting, which ever is lower.
Purpose
Own To meet all types of personal needs.
Eligibility
i)

All permanent Defense Personnel including officials of

Military Station Headquarters, BSF, CRPF, CISF, ITBP

ii)

Confirmed/ permanent employees of Central/ State Govt/

PSUs and all reputed companies/ Institutions, who are
drawing their salary through accounts maintained with our
branches.
Employees of above categories under check-off facility OR
having minimum annual income of Rs.3.00 lac.

iii) Professionally qualified Doctors viz. MBBS, BDS & above

having annual income of Rs.3.00 lac & above.
Minimum Net Monthly Income
Rs.8500 per month for eligible customers at Metro Centres;
Rs.7000 per month for eligible customers at Urban Centres; and
Rs.5000 per month for eligible customers at Semi-Urban and
Rural Centres.
DOCUMENT REQUIRED
Salaried
ID Proof, Residence Proof, Income Proof, Telephone, Photograph, Bank
Statement, Signature Proof.
Self employed
ID Proof, Residence Proof, Income Proof, Telephone, Photograph, Bank
Statement, Signature Proof.

HIGHLIGHTS

Salaried
Loan Amount

Self employed

3,00,000 or 30 times net 3,00,000 or 30 times Salary

monthly

net monthly salary

Tenure

Min. 12yrs.

Min. 12 yrs.

Interest Rate

Min. 14%

Min. 14%

Max. 15%

Max. 15%

Monthly Income

Rs. 7000

Rs. 7000

Age

Min. 21 yrs.

Max. 58 yrs.

Min. 21 yrs.

Max. 65 yrs.

STUDENT LOAN BY JAMMU AND KASHIMER BANK

Scale of Finance
Rs.7.50 Lacs for studies in India .
Rs.15.00 Lacs for studies abroad .
Courses Financed
Graduate / P.G Courses in: Medicine, Surgery, Engineering, Hotel
Management,

Design,

Architecture,

Bio-chemistry,

Agriculture,

Veterinary etc.
P.G Courses in: Business Management, Chartered or Cost Accounting ,
Company Secretary ship.
Eligibility
Should be an Indian National
Should have secured admission to professional/technical courses
through entrance test/selection process.
Should have secured admission to foreign universities/institutions

 Should have passed the qualifying examination for admission to

the courses.
Employed person intending to improve their educational
qualification and/or receive training in modern technology in
India or abroad can also be assisted under this scheme provided
training offers prospects of better placement.
Security
Personal guarantee of borrower/ 's
Collateral security equal to amount of loan.
Margin
For loans upto Rs. 4 lacs - nil
For loans above Rs. 4 lacs Studies in India - 5% Studies abroad 15%
Rate of Interest (subject to change)
Loan amount

Interest rate

Up to Rs.25,000

9% p.a

Rs.25,000 to Rs.5,00,000

10.5% p.a

Above Rs.5,00,000

11.5%

REPAYMENT
Repayment Holiday/ Moratorium: Course period + 1 year or 6 months
after getting job, whichever is earlier. The loan to be repaid in 5 to 7
years after commencement of repayment. If the student is not able to
complete the course within the scheduled time, extension of time for
completion of course may be permitted for a maximum of two years
TERM LOAN FOR B.ED/ M.ED. COURSES
Purpose
To provide loan to students. Employed persons who want to pursue
B.Ed / M.Ed courses. For meeting admission / tuition/ examination/
library/ lab Fee.
Eligibility
Student should be an Indian National.
Should be a graduate in any discipline from any recognized
university.
Should

have

secured

admission

to

the

Institution/College imparting the B. Ed/M. Ed Course.

recognized

 Loan application should be forwarded by the Principal of the

college.
Quantum of finance

Maximum: Rs 25,000.

Margin

10%.

Security

Third party guarantee of one person.

Processing charges

0.05% (Minimum: Rs.25/-).

Rate of Interest

PLR with quarterly rests.

Repayment

12 equal monthly installments.

HDFC BANK EDUCATION LOAN

HDFC bank offers education loan for studies in India or abroad to
bridge the gap between you and higher education. Bank offers hassle
free loan at attractive interest rates. Bank gives loan for other course
related expenses also. Loan approval process is speedy.
Loan Purpose for study abroad
Loans are also provided for studying abroad for job oriented
courses at degree level and advanced studies in all areas for post-

graduation. For payment of fees to school/college and for purchase of

books, hostel fees, examination fees, etc.

Loan Purpose for study in India

The Educational Loan Scheme outlined below aims at providing
financial support from the bank to deserving/ meritorious students for
pursuing higher education in India and abroad. The main emphasis is
that every meritorious student is provided with an opportunity to pursue
education with the financial support on affordable terms and conditions.
No deserving student is denied an opportunity to pursue higher
education for want of financial support.

HIGHLIGHTS
Study Abroad

Study India

Course

Graduation

Post Graduation

Loan amount

Min. Rs. 50,000

Min. Rs. 50,000

Max. 75,0000

Max. Rs. 75,0000

Margin

155

5%

Tenure

Min. 1 yrs.

Min. 1 yrs.

Interest Rate

14%

14%

Time to Process Loan

7 days

7 days

Processing Fee

2%

2%

Min. 16 yrs. Max. 30 yrs.

Min. 16 yrs. Max. 30 yrs.

Eligibility Criteria
Age

DOCUMENTS REQUIRED
Study Abroad
ID Proof, Age Proof, Residence Proof, Income Proof, Telephone,
Photograph, Bank Statement, Signature Proof,
Others Letter from the Head of Department (University), Visa approval
papers, Travel papers, GMAT/GRE/SAT score
Study in India
ID Proof, Age Proof, Residence Proof, Income Proof, Telephone,
Photograph, Bank Statement, Signature Proof,
Others latest mark sheet of the student, Letter of admission from the
Institute, Letter from the Institute stating cost break up of the program
(term-wise, year-wise)

ICICI BANK EDUCATION LOAN

ICICI bank education loan covers the course fee, other
supplementary expenses set by the institute. Student must have the letter
from the Institute which has the details confirming his admission and
course fee along the other important documents. ICICI bank requires a
confirmation letter from ICICI Prudential life stating that the students
will get absorbed under the payroll of the company
Loan Purpose
Fee payable to College / Hostel, Examination / Library / Laboratory fee,
Purchase of books / equipments / instruments, Caution Deposit /
Building Fund, Travel Expenses / Passage, Purchase of computers.

HIGHLIGHTS
Study Abroad

Study India

Graduation

Graduation

Course
Loan Amount

Interest Rate

Min. Rs 50,000

Min. Rs 50,000

Max. Rs. 40,0000

Max. Rs. 40,0000

13%

13.75%

DOCUMENTS REQUIRED

1.

Loan application form duly filled.

2.

Letter from Institute confirming the admission of the candidate

with stipulated fees & other charges for completing the course.

3.

Letter from ICICI Prudential Life confirming that students will

get absorbed under the payroll of ICICI Prudential Life.

4.

ID proof (Driving License/ Passport/ Pan Card etc).

5.

Permanent address - residence proof (Ration Card/ Utility Bill).

6.

Qualification proof - Mark sheets of graduation, 12th and 10th

Std.

7.

Signature Proof - (Driving License/ Passport/ Pan Card).

SBI EDUCATION LOAN

State Bank of India offers loan to Indian National seeking higher
education in India or aboard and have secured admission. Bank gives
loan for graduation, post graduation, professional courses, courses
approved by UGC/govt./AICTE etc. which have employment prospects.
Loan covers all the expenses from fees to purchase of computers, etc.
Purpose
For

study

in

India:

To

extend

financial

assistance

to

deserving/meritorious students for pursuing full time courses in India

and abroad at select premier & reputed institutions
For

Studying

Abroad:

To

extend

financial

assistance

to

deserving/meritorious students for pursuing full time courses in India at

select premier & reputed institutions

HIGHLIGHTS
Study Abroad

Study India

Loan Type

Term Loan

Term Loan

Course

Post Graduation

Graduation

Loan Amount

Min. Rs. 10,000

Min. Rs. 10,000

Max. Rs. 40,0000

Max. Rs. 40,0000

Margin

15%

5%

Tenure

Min. 1 yrs.

Min. 1 yrs.

Interest Rate

14.75%

14.75%

Time to process Loan

7 days

7 days

DOCUMENTATION REQUIRED
Completed loan application form
Mark sheets of your last qualifying exam

 Proof of admission
Schedule of expenses
2 passport size photographs
Bank statement for the last 6 months
Income tax assessment order of the last 2 years
Brief statement of assets and liabilities of the co-borrower
Proof of income (i.e., salary slips / form 16, etc)
PNB EDUCATION LOAN
PNB has designed "VIDYALAKSHYAPURTI scheme to
provide education loan to needy students such as students of +2 stage,
Graduation courses B.A., B.Com. B.Sc., etc., Post-Graduation courses,
for professional courses, etc, on comfortable and affordable terms. Bank
also provide life insurance cover to loan borrowers, it has tie up with
Kotak Mahindra Insurance.
Loan Purpose for studying in abroad Fee payable to College / Hostel,
Examination / Library / Laboratory fee, Purchase of books /

equipments / instruments, Caution Deposit / Building Fund, Travel

Expenses / Passage, Purchase of computers
Loan Purpose for studying in India Fee payable to College / Hostel,
Examination / Library / Laboratory fee, Purchase of books /
equipments / instruments, Caution Deposit / Building Fund

HIGHLIGHTS
Study Abroad

Study India

Course

Graduation

Graduation

Loan Type

Term Loan

Term Loan

Loan Amount

Min. Rs. 50,000

Min. Rs. 50,000

Max. 40,0000

Max. 40,0000

Tenure

Min. 1 yrs.

Min. 1 yrs.

Interest Rate

13.5%

13.25%

Time to Process Loan

7 days

7 days

Processing Fee

1%

1%

Repayment starts 1 year after course completion / 6 months after

obtaining employment (whichever earlier).

JK BANK HOME LOAN

Quantum of loan
For Construction /Purchase 60 months net salary or 75.00 Lacs
whichever is lower.
For repairs/renovation 20 months net salary, subject to a
maximum of Rs.10.00 Lacs.
For purchase of land: 20 months net salary/income subject to
maximum of Rs.5 Lacs within J&K and Rs10.00 Lacs outside
J&K.
Also as an incentive for small borrowers, the loans upto Rs.
1.5 Lacs granted for repairs/renovations of existing houses
would now be secured by third party guarantee of two persons
or such other security as is deemed appropriate by the Bank.
Eligibility
Employees of Govt. , Semi-Govt. Dept., Civic Bodies, PSU's
with minimum 5 years service.
Reputed Businessmen with minimum 5 years standing.
Professionals & Self employed like Doctors ,Engineers , CA's ,
Advocates with minimum 5 years standing

Security
Primary: Mortgage of the house Property to be purchased /
constructed.
Collateral: Third party Guarantee of one person, or assignment
of LIC Policies, pledge of Govt. securities etc.

Rate of Interest
Floating

Fixed

Upto Rs. 20 Above Rs. 20 Upto Rs. 20 Above Rs. 20

lacs.
lacs.
lacs
lacs.
Repayment upto 5
yrs.

11.25%

13.25%

12.00%

14.25%

Above 5 yrs. upto

10 yrs.

11.25%

13.25%

12.00%

14.25%

Above 10 yrs. upto

15 yrs.

12.75%

14.25%

--

--

Above 15 yrs. upto

20 yrs.

13.00%

14.75%

--

--

Security
Mortgage

of the house/property to be purchased/

constructed.
Third party guarantee of one person or Assignment of LIC

policies, pledge of govt. securities etc.

Negative lien on the property to be repaired/renovated

without mortgaging the same to the Bank.

Repayment

For construction of new house 20 years including 9

months moratorium in equal monthly installments.(Applicable
to new loans and disbursements only)

For addition / Renovation 7 years Including 2

months moratorium in equal monthly Installments

Margin
15% for construction/purchase of built house flat.
20% for renovation/purchase of land.
Processing charges

0.25% of loan amount

HDFC BANK HOME LOAN

What is your dream to own a two-bed apartment, a dream to own
sea-facing penthouse or want to buy a land to build your dream house?
You can fulfill all your dreams by taking home loan from HDFC bank.
Bank finances up to 85% maximum of the cost of the property, gives
home improvement loan, loan for extension of existing house. Bank has
flexible repayment options so that you dont face problem. Insurance

cover plan is given by HDFC Standard Life Insurance Company Ltd. to

cover lifes uncertainties of the borrowers.
Eligibility criteria for Resident Indians:

Stability and continuity of occupation and savings history

Repayment capacity takes into consideration factors such

as income, number of dependants, spouse's income, assets,
liabilities

The applicant should have a steady source of income.

Eligibility criteria for NRIs:

Loan eligibility subject to 85% of the cost of the property.
Repayment capacity assesses factors such as income, age,
qualifications, number of dependants, spouse's income, assets,
liabilities.
Stability and continuity of occupation and savings history
Loan Repayment terms:
The repayment options are flexible and customized to suit the
individual needs of the customers. While repaying the loan amount

customers can choose from Fixed Rate of Interest or Floating Interest

Rate.
In case of home loans to purchase (fresh/resale) or construct
houses, the maximum period of repayment is 15 years or retirement age,
whichever is earlier. The maximum period of repayment for home
improvement loan is 15 years or retirement age, whichever is earlier. For
home extension maximum term is 20 years subject to your retirement
age.
There are multiple payment options like Step-Up Repayment
Facility Flexible Loan Installments Plan, Tranche Based EMI and
Accelerated Repayment Scheme.
Automated Repayment of Home loan EMI. You can give standing
instructions to repay your Home Loan EMIs directly from your HDFC
Bank Savings Account which does away with the cumbersome process
of

procuring,

signing

and

tracking

post-dated

cheques.

While repaying the loan amount customers can choose from Fixed Rate
of Interest or Floating Interest Rate.

HIGHLIGHTS
Interest Rate

11.25%

Loan Amount

Min. Rs. 1,00000

Max. Rs. 1,00000

Tenure

Min. 5 yrs.
Max. 20 yrs.

Time to Process Loan

7 days

Processing Fee

1%

Age

Min. 24 yrs. Max. 55 yrs.

ICICI BANK HOME LOAN

ICICI bank is No. 1 home loan provider. Bank has designed home
loan plans to suit your needs to lay foundation for your dream home.
Bank has special offers such as attractive loan interest rates, home loan
amounts to suit your needs, home loan repayment tenure is up to 25
years, bank even sanction approval without having selected a property.
Bank also gives free personal accident insurance cover and insurance
option for home loan at very attractive premium.
Features:
Attractive loan interest rates.
Home loan amounts suited to your needs.

 Home Loan tenure upto 25 years.

Simplified Documentation.
Doorstep Delivery of home loan papers.
Sanction approval without having selected a property.
Free Personal Accident Insurance.
Insurance options for your home loan at attractive premium.

Loan Amount
The home loan amount depends on your repayment capability and is
restricted to a maximum of 85% of the cost of the property or the cost of
construction as applicable

HIGHLIGHTS
Interest Rate

12.75%

Loan Amount

Min. Rs. 2,00000

Max. Rs. 1,00,00000

Tenure

Min. 5 yrs.

Max. 25 yrs.
Time to Process Loan

7 days

Processing Fee

0.5%

INTEREST RATES
Tenure

Interest Type

Interest Rate

10 - 15 Yrs.

Floating

11.25 %

5 - 10 Yrs.

Floating

11.25 %

1 - 5 Yrs.

Floating

11.25 %

15 - 20 Yrs.

Fixed

13.75 %

10 - 15 Yrs.

Fixed

13.75 %

5 - 10 Yrs.

Fixed

13.75 %

1 - 5 Yrs.

Fixed

13.75 %

15 - 20 Yrs.

Floating

11.25 %

SBI HOME LOAN

SBI has been awarded The Most Preferred Home Loan Provider
by AWAAZ Consumer Awards. SBI home loans give concession on
interest rates on GREEN HOMES under its environment protection
program. SBI has different options for loan borrowers such as SBI
Flexi home loans provides borrowers a one time irrevocable option to
choose one of the three combinations of fixed and floating interest rates
and also to choose the order in which the fixed and floating rate will be
availed. The other is SBI- Maxgain home loans - earn optimal yield on
savings and minimize interest burden on home loans, with no extra cost.
SBI Realty Home loans - purchase a plot of land for house
construction. SBI Freedom Home loans who want to invest in a
property without mortgaging the same. SBI offers SBI Optima
additional home loans and SBI Homeline special personal loans for
existing home loan borrowers who have a repayment record of 3 years,
etc.
FEATURES
Home loans for individuals to purchase (fresh / resale) or
construct houses. HDFC finances up to 85% maximum of the
cost of the property (Agreement value + Stamp duty +
Registration charges).

 HDFC also provides with Home Improvement Loan for

internal and external repairs and other structural improvements
like painting, waterproofing, plumbing and electric works,
tiling and flooring, grills and aluminium windows. HDFC
finances up to 85% of the cost of renovation (100% for
existing customers).
Home Extension Loan facilitates the extension of an existing
dwelling unit. All the terms are the same as applicable to
Home Loan.
HDFC Land Purchase Loan is a convenient loan facility to
purchase land. HDFC finances up to 70% of the cost of the
land. Repayment of the loan can be done over a maximum
period of 10 years.
Choose from Fixed Rate or Floating Rate with options to
structure your loan as Partly Fixed or Partly Floating.
Flexible repayment options to suit your individual needs.
HDFC Standard Life Insurance Company Ltd. offers an
insurance plan, which is designed to ensure that life's
uncertainties do not affect your family's interests and your

precious home. This pure risk plan is designed in a way that

the cover decreases as you repay your home loan making it a
low cost premium insurance plan.
Loan Amount: Customers are eligible to get upto 85% of the
amount of the property.
Tenor: 1-20Years

HIGHLIGHTS
Interest Rate

11.25%

Loan Amount

Min. Rs. 1,00000

Max. Rs. 2,00,00,000

Tenure

Min. Rs. 5 yrs.

Max. 20 yrs.

Time to Process Loan

7 days

Processing Fee

0.5%

PNB HOME LOAN

PNB offers you home loan for your convenience and requirement
so that you can be a proud owner of your dream house. You can take for
purchase of house/flat on first power of attorney basis from the original
allottee, to do renovation / alterations in the existing house/flat, etc.
Moreover bank gives loan to cover the loan outstanding, you can also
take life insurance cover on payment of one time premium which bank
can also finance.

ELIGIBILITY
a)

Individuals in permanent service or having their own business

(Resident or non-resident).

b)

Age of the applicant should not be more than 60 years in case of

service class and 65 years in case of businessman or self
employed.

INDIVIDUAL
For construction/purchase of house/ flat: 75% of the cost of construction
of house or purchase of house/ flat.
For carrying out repairs/ renovation/ additions/ alterations: 75% of the
estimated cost subject to maximum of Rs. 20lacs.
Loan upto Rs.20 Lacs for purchase of Land/Plot.
Loan is available maximum upto Rs.2 Lacs for furnishing.
SECURITY
Mortgage of property for which finance is being given.
In case of purchase of house/ flat from housing board/ society
where mortgage cannot be created immediately, a tripartite agreement
shall be executed amongst the housing board/ society, borrower and the
Bank.
In case of purchase of house/ flat on first power of attorney,
additional security equal to 125% of the loan amount by way of
mortgage of some other property or pledge of bank's FDR/ LIC policy/
Govt. Securities, NSCs, KVPs, IVPs, / PSU Bonds etc. has to be
provided.
REPAYMENT

Loan is to be repaid in equated monthly installments within a period of

25 years or before the borrower attains the age of 65 years.
MARGIN
The borrower's contribution shall be minimum 20% of the total
cost of project, including stamp duty and registration charges.

HIGHLIGHTS
Interest Rate

9.5%

Loan Amount

Min. 1, 00000
Max. Rs. 2,00,00,000

Tenure

Min. 5 yrs.
Max. 25 yrs.

Time to Process Loan

7 days

Processing Fee

1%

Margin (Max.)

20%

CAR LOAN

JK BANK CAR LOAN

Eligibility
Permanent Employees of State / Central Government, Employees
of Government / Semi-Government Undertakings & Autonomous
Bodies

 Employees of Private Limited Companies, Private Organizations,

Reputed Establishments & Employees on contractual basis with
Central/State Govt, Government/ Semi-Government Undertakings
& Autonomous bodies.
Businessmen, Professionals and self employed individuals.
Security

Primary
Hypothecation of vehicle to be purchased & Banks charge to be
registered with RTO.

Collateral
No third party guarantee required in respect of permanent
employees of State and Central Government, employees of State /
Central Government Undertakings & Autonomous bodies
drawing salary through our Bank and where letter of undertaking
from employer is available.
Margin
10% of the Sales Invoice Value for employees of State /
Central

Government,

State

Central

Government

Undertakings, Autonomous bodies, Platinum / Gold Current

Account

holders.10%

margin

shall

also

apply

to

Businessmen, Professionals & Self-Employed persons with

yearly income of Rs 2,50,000/- & above.
20% of the sales invoice value in case of all the other cases.
100% finance shall be available to applicants if they keep a
fixed deposit with the bank for amount equal or more than
the margin money & for duration not less than the repayment
period of the loan. This deposit shall be kept under lien to the
Bank.
Repayment
Flexible repayment options ranging from 12 to 84 months in
equal monthly installments.

Minimum Loan Amount

Rs 75,000/- (Rupees Seventy Five Thousand Only)
Maximum Loan Amount
30 months net monthly salary of the applicant or 2.5 times
net annual income. However, in case of employees of private

organizations & employees on contract basis as mentioned

above, the maximum finance shall be limited to 18 times net
monthly salary or 1.5 times net annual income
In case of married individuals, certified income of spouse
can also be considered provided the spouse guarantees the
loan.
The upper ceiling on the loan amount shall be Rs 25 lacs
Processing Charges
0.25% of Loan amount to be paid upfront subject to a minimum of Rs.
500/-.

HDFC BANK CAR LOAN

The Housing Development and Finance Corporation (HDFC)
Bank's Car Loan Scheme is very convenient and offers a host of
advantages. These include speedy processing, flexible repayment

options, hassle-free documentation, and attractive interest rates. HDFC

car loans cover the widest possible range of cars and multi-utility
vehicles in India.
ELIGIBILITY & DOCUMENTATION
Salaried Individuals
Minimum age of Applicant: 21 years
Maximum age of Applicant at loan maturity: 60 years
Minimum employment: 1 year in current employment and
minimum 2 years of employment
Gross household income i.e. including income of the spouse:
Rs 100000 net annual income
Telephone: Necessary at residence
Documents required
Age Proof: Any one of Passport copy, PAN Card, Voters ID
card, Photo driving licence with birth date (laminated, recent,
legible),

Photo

ration

card

with

DOB,

certificate/ID, School/College Leaving certificate.

Employer

 Proof of Identity: Any one of Passport copy, PAN Card,

Voters ID card, Photo driving licence with birth date, Photo
ration card with DOB.
Income Proof: Latest salary slip with latest form 16/latest
ITR. HDFC bank corporate salary account statement for
salary credits of above Rs 8000 for three months.
Address Proof: Any one of Photo Ration card with DOB,
Photo Driving licence with DOB, Passport copy, Telephone
bill, Electricity bill, Credit Card statement with credit card
copy, Employer certificate/ID.
Sign Verification Proof: Any one of Passport copy, Photo
driving licence with birth date ( laminated, recent , legible),
Credit Card statement with credit card copy, Banker's
verification, Copy of margin money paid to bank.
Self Employed
Eligibility Criteria

Minimum age of Applicant : 21 years

Maximum age of Applicant at loan maturity : 65 years

Minimum employment : Atleast 3 years in business

Minimum Annual Income : 60000

Telephone: Necessary at residence

Documents required
Age Proof: Any one of Passport copy, PAN Card, Voters ID

card, Photo driving license with birth date (laminated,

recent , legible), Photo ration card with DOB, Employer
certificate/ID, School/College Leaving certificate.
Proof of Identity: Any one of Passport copy, PAN Card,

Voters ID card, Photo driving license with birth date

(laminated, recent , legible), Photo ration card with DOB.
Income Proof: Latest ITR / Previous ITR with Adv. Tax paid

challan / latest IT assessment order.

Address Proof: Any one of Photo Ration card with DOB,

Photo Driving license with DOB, Passport copy, Telephone

bill, Electricity bill, Credit Card statement with credit card
copy, Employer certificate/ID.
Sign Verification Proof: Any one of Passport copy, Photo

driving license with birth date (laminated, recent , legible),

Credit Card statement with credit card copy, Banker's

verification , Copy of margin money paid to bank.

HIGHLIGHTS
New Car

Used Car

Loan Type

Term Loan

Term Loan

Loan Amount

Min. Rs. 50,000

Min. Rs. 50,000

Max. Rs. 9,00,000

Max. Rs. 9,00,000

Tenure

Max. 12 yrs.

Max. 12 yrs.

Interest rate

14%

16%

Time to Process Loan

2 days

2 days

Processing Fee

2%

2%

Margin (Max.)

20%

20%

ICICI BANK CAR LOAN

ICICI Bank is the No. 1 financier for car loans in India. It has a
network of more than 1800 channel partners in over 1000 locations. The
bank has tie-ups with all leading automobile manufacturers in India to

ensure the best deals. ICICI Bank offers flexible schemes and quick
processing.
ELIGIBILITY FOR CAR LOANS
For salaried individual
Age Criteria: The applicant should be at least 21 years old at the time
of application, and below 58 years of age at time of maturity of the loan.
Income Criteria: Gross annual salary above Rs 1 lakh p.a
Self-Employed Individual: Any Proprietor, partner, professional or
director above 21 years of age but below 65 at the time of the loan's
maturity.
Income Criteria: Gross annual salary above Rs 1 lakh p.a.
DOCUMENTATION REQUIRED
Salaried Individual
Photograph
Proof of bank account continuity
One income proof for the last two years (ITR, Form 16,
salary slip

 One proof of identity (driving license / voters' identity card /

passport / PAN card / photo credit card / photo ration card)
One proof of residence (laminated driving license / voters'
identity card / photo ration card / passport /utility bills for the
last 3 months / company ID - limited company or
government / PAN card)
Self-Employed Individual
Photograph
Proof of bank account continuity
One proof of income (ITR for the last two years)
One proof of residence (driving license / voters' identity
card / ration card / passport / utility bills for the last 3
months)
One proof of office address (utility bill / lease deed / excise
or sales tax receipt / Shops and Establishment Act
Registration)

NEW CAR LOAN

HDFC Bank gives maximum loan of 90% of the invoice value on

new cars. The minimum loan amount is Rs 50000. The loan tenure
varies from 12 to 84 months. One can pre-pay the loan any time after 6
months of availing of the loan by paying a small prepayment fee on the
outstanding loan amount.
USED CAR LOAN
The maximum loan amount given for used cars is up to 80% of
the invoice value. One can choose from loan tenure options of 12, 24,
36, 48, or 84 months.

HIGHLIGHTS
New Car
Loan Type
Tenure
Interest rate
Time to Process Loan

Used Car

Term Loan

Term Loan

Max. 12 yrs.

Max. 12 yrs.

14.25%

16%

1 day

1 day

STATE BANK OF INDIA CAR LOAN

SBI car loan scheme has been designed to help you in purchasing
your dream car. Bank charges low interest rates, and gives you easy
repayment options. Bank maintains total transparency. Amount includes
vehicle registration charges, insurance, one-time road tax and
accessories as per conditions.
ADVANTAGE
Excellent service and lower costs. A quick survey of similar schemes
available elsewhere and you will find that SBI Car Loans for new and
old vehicles offer you :
Lowest interest rates
Longer repayment period of upto 84 months.
No hidden costs or administrative charges.
Finance for one-time road tax, registration fee, insurance
premium and accessories
No advance EMIs. (Some Banks/companies ask you to pay
one or more EMIs at the time of disbursement of loan,
thereby effectively reducing your loan amount.)

Eligibility
To avail an SBI Car Loan, you should be:
Individual between the age of 21-65 years of age.
A Permanent employee of State / Central Government,
Public Sector Undertaking, Private Company or a reputed
establishment.
A Professionals or self-employed individual who is an
income tax assesses.
A Person engaged in agriculture and allied activities.
Net Annual Income Rs. 100,000/- and above.
LOAN AMOUNT
There is no upper limit for the amount of a car loan. A maximum
loan amount of 2.5 times the net annual income can be sanctioned. If
married, your spouse's income could also be considered provided the
spouse becomes a co-borrower in the loan. The loan amount includes
finance for one-time road tax, registration and insurance!
No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.

You would need to submit the following documents along with the
completed application form if you are an existing SBI account holder:
1.

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

2.

2 passport size photographs of borrower(s).

3.

Signature identification from bankers of borrower(s).

4.

A copy of passport /voters ID card/PAN card.

5.

Proof of residence.

6.

Latest salary-slip showing all deductions

7.

I.T. Returns/Form 16: 2 years for salaried employees and 3 years

for professional/self-employed/businessmen duly accepted by the ITO
wherever applicable to be submitted.

8.

Proof of official address for non-salaried individuals.

If you are not an account holder with SBI you would also need to
furnish documents that establish your identity and give proof of
residence.
Margin
New/Used vehicles: 15% of the on the road price.

HIGHLIGHTS
New Car

Used Car

Loan Type

Term Loan

Term loan

Loan Amount

Min. Rs. 50,000

Min. Rs. 25,000

Max. Rs. 15 lakhs

Tenure

Min. 12 yrs.

Min. 12 yrs.

Interest Rate

12.75%

16.5%

Time to Process Loan

4 days

7 days

Margin

15%

15%

PNB CAR LOAN

Bank offers loan for the purchase of foreign make or Indian

manufactured. Bank has set 20% margin on loan amount. Bank gives
loan for all types of four wheelers.
Eligibility
Individuals as well as Business Concerns (Corporate or non-corporate).
Amount of Loan for Individuals
25 times of the monthly net salary OR Rs.15 lac, whichever is
lower. Income of spouse can be taken into account for determining loan
amount. In such cases, the spouse shall stand as a guarantor.
Margin

20%

Repayment
For new Car/ Van/ Jeep: The loan amount together with interest is to
be repaid maximum in 84 Equated Monthly Installments (EMIs)
For old Car/ Van/ Jeep: The loan amount together with interest is to be
repaid maximum in 60 Equated Monthly Installments (EMIs)

HIGHLIGHTS

New Car

Used Car

Loan Type

Term Loan

Term Loan

Tenure

Max. 12 yrs.

Max. 12 yrs.

Interest Rate

12.5%

17%

Time to Process Loan

5 days

4 days

Margin (Max.)

20%

20%

DOCUMENT REQUIRED
i)

Bank statement for last six months

ii)

Two passport size photograph

iii)

Latest salary slip

iv)

It returns for the last two financial years, in the

case of self employed individual and professionals.

v)

Identity and proof of residence.

COMPARISON OF RETAIL LOAN

OF J&K BANK WITH PNB, SBI,
ICICI AND HDFC BANK

COMPARISON OF PERSONAL LOAN OF J&K BANK WITH

OTHER BANKS

J&K

HDFC

ICICI

PNB

SBI

Loan Amount 7 lakhs

(Max.)

10 lakhs

15 lakhs

3 lakhs

15 lakhs

Tenure (Max.)

12 yrs.

12 yrs.

12 yrs.

12 yrs.

12 yrs.

AGE CRITERIA
Salaried
Min.

21 yrs.

21 yrs.

25 yrs.

21 yrs.

21 yrs.

Max.

6o yrs.

60 yrs.

58 yrs.

50 yrs.

58 yrs.

Min.

25 yrs.

25 yrs.

25 yrs.

21 yrs.

21 yrs.

Max.

65 yrs.

65 yrs.

65 yrs.

65 yrs.

65 yrs.

Processing

1%

2%

3%

2%

2%

Self Employed

MONTHLY INCOME
Salaried

7500

7000

8000

7000

5000

Self-employed

8500

8000

8000

7000

7000

3 days

3 days

5 days

2 days

Processing time 3 days

Rate of interest
Min.

13.5%

14%

12%

14%

14%

Max.

22%

24%

24%

15%

17.75%

COMPARISON OF EDUCATION LOAN OF J&K BANK WITH

OTHER BANKS

J&K
Loan
(Max.)

Amount 15 lakhs

HDFC

ICICI

PNB

SBI

7.5 lakhs

4 lakhs

4 lakhs

4 lakhs

Margin in India

5%

5%

5%

5%

5%

Abroad

15%

15%

15%

15%

15%

Processing time

7 days

7 days

7 days

7 days

7 days

Age
Min.

16 yrs.

16 yrs.

16 yrs.

16 yrs.

16 yrs.

Max.

30 yrs.

30 yrs.

30 yrs.

30 yrs.

30 yrs.

In India

5%

14%

13%

13.5%

14.75%

Abroad

15%

14%

13.75%

13.25% 14.75%

Rate of interest

COMPARISON OF HOME LOAN OF J&K BANK WITH OTHER

BANKS

J&K

HDFC

ICICI

PNB

SBI

Min.

4 lakh

1 lakh

2 lakh

1 lakh

1 lakh

Max.

1 crore

1 crore

1 crore

2 crore

2 crore

Min.

5 yrs.

5 yrs.

5 yrs.

5 yrs.

5 yrs.

Max.

20 yrs.

25 yrs.

25 yrs.

25 yrs.

25 yrs.

Processing days

7 days

7 days

7 days

7 days

7 days

11.25%

12.75%

9.5%

11.25%

Loan Amount

Tenure

Rate of Interest 13.25%

(Max.)
Age Criteria

Min.

25 yrs.

25 yrs.

25 yrs.

25 yrs.

25 yrs.

Max.

55 yrs.

55 yrs.

55 yrs.

55 yrs.

55 yrs.

Income Annual

1,40,000

1,20,000

1,20,000

1,20,00
0

1,20,00
0

COMPARISON OF CAR LOAN OF J&K BANK WITH OTHER

BANKS

J&K

HDFC

ICICI

PNB

SBI

10 lakh

9 lakh

15 lakh

15 lakh

15 lakh

12 yrs.

12 yrs.

12 yrs.

12 yrs.

12 yrs.

Loan Amount
Max.
Tenure
Max.

Processing time
Processing
(in Rs.)

5 days

fee Rs. 1850

2 days

2 days

5 days

4 days

Rs. 1500

Rs.1950

Rs. 1850

Rs. 1800

Age Criteria Salaried

Min.

21 yrs

21 yrs

21 yrs

21 yrs

21 yrs

Max.

58 yrs.

58 yrs.

58 yrs.

58 yrs.

58 yrs.

Min.

25 yrs.

21 yrs.

21 yrs.

21 yrs.

21 yrs.

Max.

60 yrs.

65 yrs.

65 yrs.

65 yrs.

65 yrs.

Margin (Max.)

20%

20%

20%

20%

155

Self Employed

FINDINGS:

J&K Bank is providing service to its customer as better as any

other nationalized or private Bank.

I studied the retail loan of J&K Bank and compare it with retail

loan of PNB, SBI, ICICI and HDFC Bank and I found that there is not
so much difference in interest rate charged by J&K Bank and other.
almost all bank grant loan to its customer on same basic conditions, Age
criteria, Tenure of loan, personal income etc.
J&K Bank have a good market share in retail loans despite

competition give by other bank PNB, SBI, HDFC, ICICI, Bank.

Although , J&K Bank have a good customer back ground, the

competition in retail loan market is increasing a private bank like

HDFC, ICICI and other bank are opening new branches in the state and
using advertisement and direct market and more aggressively the J&K
Bank.

Many people trust on J&K Bank because it is semi state owned

and is considered as State Local Bank, specially in rural areas.

Most of the J&K Bank customers with those I personally

interacted while my summer training are satisfied with service of J&K
Bank .

SUGGESTIONS:

As it is already mention in my report that J&K Bank is providing

service to its customers as better as any other bank but there is still
some changes need to be introduced. Technologically, J&K Bank is
as competitive as any other bank but still the J&K Bank management
running on conventional line of business. The advertisement medias
which are used by its private competitors like ICICI, HDFC Bank
more rapidly and aggressively as it not in case of J&K Bank. The
advertisement medias used by J&K Bank does not match with its
competitors. So, management of J&K Bank should change it policy
of strategic media policy.
The management of J&K Bank should give more consideration to
marketing through advertisement and direct marketing as it is used
by its competitors like ICICI , HDFC etc. which hire mediators to
reach more and more customers.

SCHEDULE

Related to J&K Bank Customers

1.

Personal information
Name :
Gender:
Address:
PH/Mob:

2.

Age Group

Below 20
Between 35-50

Between 20-35
Above 50

3.

How long you are dealing with J&K Bank.

4.

1 year
1-5 year
5-10 year
More than 10 year
What type of Account do you have?

a)

Saving A/C

b)

Current A/C

c)

Fixed A/C

d)

Recurring A/C

e)

Multibenefit Saving deposite Scheme

f)

Flexideposite scheme

g)

Child deposit

5.

How do you feel dealing with J&K Bank?

a)

Highly safe

b)

Safe

c)

Not very safe

6.

Are you also dealing with another bank

Yes

No

7.

If Yes, in which bank do you have an account __________.

8.

Do you know J&K Bank have been rated as one of the best in India?

Yes
9.

No

Are you aware of different scheme offered by J&K Bank

Yes

No

10.

How do you come to know about different scheme offered by J&K Bank?

a)

Branch

b)

Friend/ Relatives

c)

Advertisement medias

d)

Internet

11.

Is there is any following reason for selecting J&K Bank only?

a)

Provides better service than any other bank.

b)

Because it is states local bank.

c)

selected because it is located near your house.

d)

Selected on some recommendation.

12.

What do you feel bottle neck in gathering information of the Bank Product?

a)

Indifferent of Bank officials.

b)

Lack of proper advertisement.

c)

Difficult access to bank official.

d)

No such problem exist.

13.

Do you have avail any loan from J&K Bank.

Yes

No

14.

If Yes, Is there is any following loan you avail?

a)

Home loan

b)

Car loan

c)

Education loan.

d)

Personal loan

e)

Another type of loan.

15.

Do you use ATM facility offered by J&K Bank.

Yes

No

16.

Do

you

know

J&K

Bank

offers

financial

assistance

Business/Firm/Manufacturing units.
Yes
17.

Are you satisfied with the service of J&K Bank?

Yes

18.

No

No

Have you any suggestion for more improvement in J&K Bank service?
________________________________________________________
________________________________________________________
________________________________________________________.

for