A PROJECT REPORT

ON
BANK OF INDIA AND PROJECT
WORK
ENTITLED AS
“LOAN REIMBURSEMENT POLICIES
OF BANK OF INDIA”

PREPARED AND PRESENTED

TO
Mr. R N PRASAD
BRANCH MANAGER
BANK OF INDIA SINDRI

Under the guidance of

Mr. RATAN RAJAK
Loan Department

BY
Deepak Kumar Gupta
(2008 –10 )
(20TH MAY TO 15TH JULY, 2008)
BIRLA INSTITUTE OF TECHNOLOGY
MESRA (RANCHI)
EXT. NOIDA
1
 A

PROJECT REPORT

ON

LOAN REIMBURSMENT PROCESS OF BANK OF INDIA

FOR

BANK OF INDIA

BY:-

DEEPAK KUMAR GUPTA

MBA/4550/08
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF

MBA PROGRAM

BIRLA INSTITUTE OF TECHNOLOGY

MESRA, RANCHI

PROJECT GUIDE : COMPANY GUIDE :

Mrs. PREETI BAJAJ Mr. R N PRASAD

2
Acknowledgement
To acknowledge all the persons who had helped for the
fulfilment of the project is not possible for any
researcher but in spite of all that it becomes the
foremost responsibility of the researcher and also the
part of research ethics to acknowledge those who had
played a great role for the completion of the project.

So in the same sequence at very first, I would

like to acknowledge my parents because of whom I got
the existence in the world for the inception and the
conception of this project. Later on I would like to
confer the flower of acknowledgement to Ms.
Vandana Sharma and other faculty members who
taught me that how to do project through appropriate
tools and techniques. Because Bank Of India has
trusted me and given me a chance to do my integrated
research study, I would like to give thanks to the
organization and especially to Mr. R N PRASAD from
the depth of my heart.

Rest all those people who helped me are not only

matter of acknowledgment but also authorized for
sharing my success.

3
Preface
Decision making is a fundamental part of the research
process.Decisions regarding that what you want to do,
how you want to do,what tools and techniques must be
used for the successful completion of the project. In
fact it is the researcher’s efficiency as a decision maker
that makes project fruitful for those who concern to the
area of study.Basically when we are playing with
computer in every part of life, I used it in my project
not for the ease of my but for the ease of result
explanation to those who will read this project. The
project presents the role of financial system in life of
persons. I had toiled to achieve the goals desired. Being
a neophyte in this highly competitive world of business,
I had come across several difficulties to make the
objectives a reality. I am presenting this hand carved
efforts in black and white. If anywhere something is
found not in tandem to the theme then you are
welcome with your valuable suggestions.

4
Table of content

Acknowledge
Preface
Chapter 1 :- Introduction: Executive summary of
the project
Chapter 2 :- Industry Introduction &BANK OF
INDIA
Loan
Types of loan
Loan processing life cycle
Policies on collection of dues

Chapter 3 :-Research objectives scope of

research
Problem definition
Objective of the study
Scope of the study
Chapter 4 :-Research Methodology and
limitations
Research plan
Research design
Developing the research plan
Collection of data
Data collection instruments
Research limitations
Insights of an analyst
Statistical analysis
Theoretical interpretations
Findings
Chapter 5 :- Conclusions
Appendix 1: Questionnaire
Appendix 2: Reference material

5
Introduction: Executive
summary of the project

Banking Industry which is basically my concern industry

around
which my project has to be revolved is really a very
complex industry. And to work for this was really a
complex and hectic task and few times I felt so
frustrated that I thought to left the project and go for
any new industry and new project.Challenges which I
faced while doing this project were following-

- Banking sector was quite similar in offering and

products and
because of that it was very difficult to discriminate
between our
product and products of the competitors.

- Target customers and respondents were too busy

persons that to get their time and view for specific
questions was very difficult.

6
- Sensitivity of the industry was also a very frequent
factor which was very important to measure correctly.

- Area covered for the project while doing job also was
very large and it was very difficult to correlate two
different
customers/respondents views in a one.
Chapter 1
IDBI BANK LTD.
- Every financial customer has his/her own need and
according to the requirements of the customer product
customization was not possible.
So above challenges some time forced me to leave the
project but any how I did my project in all
circumstances. Basically in this project I analyzed that-
What are the loan reimbursement polices ,What factors
are effecting banks loan reimbursement polices and
what are the difference between Bank Of India’s polices
and other banks polices.

7
Industry status & Bank of
India interface

Industry Introduction

Bank of India was founded on 7th September, 1906 by

a group of eminent businessmen from Mumbai. The
Bank was under private ownership and control till July
1969 when it was nationalised along with 13 other
banks.
Beginning with one office in Mumbai, with a paid-up
capital of Rs.50 lakh and 50 employees, the Bank has
made a rapid growth over the years and blossomed
into a mighty institution with a strong national
presence and sizable international operations. In
business volume, the Bank occupies a premier position

8
among the nationalised banks. The bank has 3021
branches in spread over all states/union territories
including 136 specialised branches are controlled
through 48 Zonal offices. There are 28 branches are in
abroad.

The Bank came out with its maiden public issue

in 1997 and follow on Qualified Institutions Placement
in February 2008. . Total number of shareholders as on
31/03/2009 is 2,35589.
While firmly adhering to a policy of prudence and
caution, the Bank has been in the forefront of
introducing various innovative services and systems.
Business has been conducted with the successful blend
of traditional values and ethics and the most modern
infrastructure. The Bank has been the first among the
nationalised banks to establish a fully computerised
branch and ATM facility at the Mahalaxmi Branch at
Mumbai way back in 1989. The Bank is also a Founder
Member of SWIFT in India. It pioneered the
introduction of the Health Code System in 1982, for
evaluating/ rating its credit portfolio.
The Bank's association with the capital market goes
back to 1921 when it entered into an agreement with
the Bombay Stock Exchange (BSE) to manage the BSE
Clearing House. It is an association that has blossomed
into a joint venture with BSE, called the BOI
Shareholding Ltd. to extend depository services to the
stock broking community. Bank of India was the first
Indian Bank to open a branch outside the country, at
London, in 1946, and also the first to open a branch in

9
Europe, Paris in 1974. The Bank has sizable presence
abroad, with a network of 28 branches (including five
representative offices) at key banking and financial
centres viz. London, New York, Paris, Tokyo, Hong-
Kong and Singapore. The international business
accounts for around 17.82% of Bank's total business.

LOANS
An arrangement in which a lender gives money or
property to a borrower and the borrower agrees to
return the property or repay the money, usually along
with interest, at some future point(s) in time. Usually,
there is a predetermined time for repaying a loan, and
generally the lender has to bear the risk that the
borrower may not repay a loan.

Types of Loans
There are various types of loan such as home loan,
corporate loan, education loan, car loan, retail loan,
personal loan and many others which are provided by
the Bank Of India. These loans are comes under two
sectors the priority sector and non priority sector.
10
Priority sector comprise agriculture, small scale
industries, small business, retail trade, and educational
loan. On the other hand in non priority sector comprises
home loan, personal loan etc. I am explaining here
about those loans which are frequently provided by the
bank.

11
Home loans in India

rising cost of residential accommodation has led to the

popularity of Home Loans in India. The steep rise in
Indian real estate is mainly due to disparity in demand
and supply of quality residential accommodation in
India.
The middle-class Indian population is the worst
sufferer of the real estate demand-supply gap and
hence it is this part of the Indian demography that is
the largest group to avail itself of home loans in India.
Home Loans in India are facilitated by all public and
private sector banks operating in India. Financial
institutions specializing in home financing are also
cashing in on the latest boom in home loans. The loan
schemes offered by such institutions are easy to repay
and thus are hugely popular with the middle-class
Indians.

STAR HOME LOANS

 Provides loans to purchase a Plot for construction of
a House, to purchase/construct house/flat, as well as for
renovation/ repair/alteration/addition to house/flat,
furnishing of house.

12
 Maximum loan amount is Rs.300 lacs and
repayment ranges upto 20 years, with reasonable
margin and nominal processing charges. No
commitment /administrative charges.

 The loan is available at very competitive rates of

interest, currently available in the industry.

 Option for different EMI amounts for different

periods during tenure of loan to suit customer’s
repayment capacity.

 Prepayment of Loan permitted

 Interest is calculated on daily balance basis which is

of great advantage to customer as it results in lower
interest amount.

 Loan to NRIs as well as Persons of Indian Origin.

 Simplified application form/procedures for

convenience of customers, and speedy approvals.

 Free Personal Accident Insurance cover

 Life Insurance Cover to borrowers for Loan

Protection (optional)

 Please visit our nearest Branch and avail loan to

own your dream home

Eligibility
Salaried employees, Professionals like Doctors,
Lawyers, Engineers, Chartered Accountants, and Self-
employed persons. Requests are also considered in

13
special cases from Group of individuals, NRIs, PIOs,
HUF, Prop. Firm, Partnership firms and corporate.

Purpose
• To purchase/construct house/flat.
• To renovate/extend/repair existing house/flat.
• To purchase a plot of land for construction of
house.
• To acquire household articles along with the
house/flat-for furnishing the house/flat.

Quantum of Loan
For construction/purchase of a house/flat-Rs.300 lacs

• Repairs/renovation/extension/addition to house/flat
- Rs.20 lacs

• Purchase of a plot - Rs.30 lacs

• Purchase/acquire household articles for furnishing

the house/flat - Rs.1.00 lac. (15% of Home Loan
amount)

• Minimum size of Housing Loan:-

• At Metro and Urban Centres:-Rs. One Lakh
• At Rural and Semi Urban Centres :-No minimum
size of loan.

Processing charges
For loans upto Rs.30 lacs One time @ 0.55% of loan
amount min. Rs. 3000/- and max. Rs.10000/-
For Loan over Rs.30 Lacs upto Rs.50 lacs – One time

14
flat Rs.15,000/-
For Loan over Rs.50 Lacs upto Rs.1.00 crore – One time
flat Rs.20,000/-
Loans over Rs.1.00 crore – One time flat Rs.25,000/-
Loans over Rs.3.00 crores – One time flat Rs.50,000/-
For Partnership firms & Corporate Borrowers –
Processing charges will be double that of applicable to
individuals
For Rural areas –Processing charges will be 50% that of
applicable to individuals in respect of loans availed by
borrowers from rural areas from the Rural Branches

Margin
For Loan upto Rs.10 Lacs – 15%
For Loan over Rs.10 Lacs – 20%
Note:
Cost incurred by the proponent in the form of land
already purchased/acquired by him/her (from their own
sources) can be accepted as part of above said margin
at the request of proponent. Liquid securities such as
Banks TDR, NSC, KVP etc., can also considered as
Margin, ensuring higher quantum of loan.

Eligible Quantum of Loan/ EMI

Calculation of quantum of loan is related to
Income/repayment capacity of proponent/borrower.
48 times of gross monthly
salary or 4 times of gross
Salaried Employees :
annual income based on I-T
Returns.
Self-employed/ 4 times of their Gross annual
15
Professionals
/Individuals
income based on I-T Returns
Engaged in Trade
/Commerce/Business
5 times of Gross annual
Chartered Accountants
income based on I-T Returns.
6 times of Gross annual
Doctors
Income based on I-T Returns
4 times of cash accruals
HUF/Proprietorship
(PAT+Depreciation) as per
/Partnership Firm/
their Balance Sheet/P&L
Company
Account
Net take home pay/income (net of
In case of Individuals: EMI of Proposed loan) should not be
less than 45% of the gross monthly
salary/income of applicant(s)
In case of
HUF/Proprietorship/
DSCR should be minimum 1.5.
Partnership
firm/Company :

Fees / Charges
• No administrative fees
• No commitment charge

Prepayment charges :
i) No charges, if pre-payment is made from own sources of the
borrower ii) 0.65% p.a. on the outstanding loan amount for remaining
maturity of the loan, subject to max.2.25% of outstanding loan
amount in case of takeover by other bank/FI.

16
Other Charges : Legal Expenses/Valuation
Charges/Stamp Paper
Charges At actual –Loan Agreement copy charge : as
applicable

Rate of Interest

Upto >5- >10- >15-

5 10 15 20 yrs
yrs yrs yrs
Floating Rate -Linked to floating
reference rate (% p.a. at monthly
rest) FOR LIMITS UPTO RS.30
LACS: 8.75 9.00 9.25 9.25
FOR LIMITS OER RS.30 LACS
9.50 9.75 10.0010.25
UPTO RS.50 LACS :
FOR LIMITS OVER RS.50 LACS :
10.2 10.5 10.75 11.00
5 0
Interest on daily reducing balances. Interest applicable
to residents as well as non-residents.

Disbursement in advance
Request for 100% disbursement before completion of
house/flat can be permitted subject to availability of
additional security of 125% of the unsecured portion of
loan amount to be disbursed

Security
17
Equitable Mortgage (1st charge) on land/flat/house.
Third Party guarantee (if mortgage could not be
created at the time of disbursement).

Additional Incentives
i. Free Personal Accident Insurance cover for the
borrower (covering accidental death as well as
permanent total disablement) as per terms of insurance
policy covering loan outstanding as on the date of
accident.
ii. Loan amount of Rs.100,000/-(15% of home loan -
max.Rs.1 lac) for furnishing the house/flat at a rate of
interest as applicable to housing loan under the
scheme. Life Insurance covers to housing loan
borrowers against risk of death during tenure of loan
under Group Insurance Scheme in tie up with ICICI
Prudential Life Insurance Co. Ltd.

• Insurance cover is optional. Low/ affordable

premium rates.
• Insurance cover at a discounted rate in case of
younger joint borrower.
• Bank will grant loan for meeting the premium
amount payable upfront (single premium). Loan for
premium will increase EMI only marginally.
• Avoids home loan burden on the family as home
loan comes with Life Insurance cover. Protection
against loan amount.
• Scheme is simple and hassle free.
• Higher non-medical limit: Age upto 45 years : Rs.
10 lacs, Age above 45 years : Rs. 8 lacs.

• Insurance premium is eligible for tax benefit u/s 80

18
 C and claim proceeds are tax free u/s 10(10D), as
per prevailing Income-tax laws.
Others
Substantial Tax benefits available (as per applicable
Income-tax laws) on:-

Repayment of Installments of Housing Loan.

Payment of interest on Housing Loan.

2. Star Education loan

1. OBJECTIVE & PURPOSE:
The Star Educational Loan Scheme 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.
2. ELIGIBILITY CRITERIA:
a) STUDENT'S ELIGIBILITY:

• Student should be an Indian.

• Secured admission to professional/technical
courses in India or Abroad through Entrance
Test/Merit based selection process.
• Good academic career.
• The student should not have outstanding education
loan from any other Institution.

19
• Father/Mother should be co-borrower.

b) ELIGIBLE COURSE:
(i) Studies in India (Indicative list):

• Graduation courses : BA, B.Com., B.Sc., etc.

• Post Graduation courses : Masters & PhD.
• Professional courses : Engineering, Medical,
Agriculture, Veterinary, Law, Dental, Management,
Computer, etc
• Computer certificate courses of reputed institutes
accredited to Department of Electronics or
institutes affiliated to university.
• Courses like ICWA, CA, CFA, etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID
and other Institutes set up by Central/State Govt.
• Other courses of approved institutes.
• Courses offered by National Institutes and other
reputed private institutions with prior approval of
Head Office.
• Courses offered in India by reputed foreign
universities with prior approval of Head Office.

(ii) Studies abroad:

• Graduation : For job oriented professional/technical

courses offered by reputed universities.
• Post Graduation : MCA, MBA, MS, etc.
• Courses conducted by CIMA - London, CPA in USA,
etc.

20
3. EXPENSES CONSIDERED FOR LOAN :
• Fee payable to
college/school/hostel/Examination/Library fee.
• Purchase of
books/equipments/instruments/uniforms.
• Caution deposit/building fund/refundable deposit
supported by Institution bills/receipts.
• Travel expenses/passage money for studies
abroad.
• Purchase of computers - essential for completion of
the course.
• Insurance cover for the student.
• Any other expense required to complete the course
- like study tours, project work, thesis, etc.

4. QUANTUM OF FINANCE :
Need based finance subject to repaying capacity of the
parents/students with margin and the following
ceilings :

• Studies in India - Maximum Rs.10.00 lakh

Studies abroad - Maximum Rs.20.00 lakh

5. MARGIN :
Upto Rs.4 lakh : Nil
Above Rs.4 lakh - Studies in India : 5%
Studies Abroad : 15%
· Scholarship could be included in margin.
· Margin to be brought in on year to year basis as and
when disbursements are made.

21
6. SECURITY
Upto Rs. 4 lakh : No security
Above Rs.4 lakh & upto Rs.7.5 lakh : Collateral security
in the form of a suitable third party guarantee.
Above Rs.7.5 lakh : Collateral security of suitable value
or at the discretion of the Bank suitable third party
guarantee along with the assignment of future income
of the student for payment of instalments.
The security can be in the form of land/building/Govt.
Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks
Term Deposit etc., in the name of
Student/Parent/Guardian/Guarantor with suitable
margin.

7. RATE OF INTEREST: ( 01.04.09)

• Upto Rs.4.00 lacs – 2.50% below BPLR., Min. 9.50%
p.a.
• Above Rs.4.00 lacs upto Rs.7.50 lacs – 2.00%
below BPLR, Min. 10.00% p.a.
• Above Rs.7.50 lacs - 1.25% below BPLR, Min.
10.75% p.a.
• Simple interest during the repayment
holiday/moratorium period. Penal interest @2% for
loans above Rs.4 lakh for the overdue amount and
overdue period.
• Int. Concession of 0.50%p.a. for woman
beneficiaries for limits upto Rs.50,000/- and 1% for
limits over Rs.50,000/-
• 1% int. concession if interest is serviced during
moratorium period, where repayment holiday is
22
 specified for interest/repayment under the scheme
(concession available for moratorium period) No
processing charges.
One time charges for any deviations from the
scheme norms including approval of courses
outside the scheme -
Upto Rs.4.00 lacs - Rs. 500/-
Over Rs.4.00 lacs upto Rs.7.50 lacs - Rs.1000/-
Over Rs.7.50 lacs upto Rs.20.00 lacs - Rs.2000/-
In respect of loans availed by borrowers from rural
areas from the Rural Branches – Charges Nil

8. INSURANCE : All the student borrowers are

offered a specially designed Term Insurance cover and
the premium can be included as item of finance.

9. REPAYMENT:
Repayment holiday/Moratorium : Course period + 1
year or 6 months after getting job, whichever is earlier.
The loan is to be repaid in 5-7 years after
commencement of repayment

10. BANK CHARGES:

Processing/upfro For Studies in India- NIL.
nt charges
For Studies Abroad – Rs.1000 for
issuance of sanction letter for
obtention of VISA.
Amount refundable on availing loan.
Document At Actuals
23
/Stamp Charges
Change of Studies in India – Rs.250/-
Institution
Studies Abroad- Rs.500/-
Agreement(copy Loan upto Rs.2 lacs- Rs. 25/-*
to borrower)
Loan over Rs.2 lacs- Rs.100/-*
Xerox charges
Plus copying charge of Rs.1 per page
One time charges for any deviations from the scheme
norms including approval of courses outside the
scheme –
Upto Rs.4.00 lacs - Rs.500/-
Above Rs.4.00 lacs to Rs.7.50 lacs - Rs.1,000/-
Over Rs. 7.50 lacs upto Rs.20.00 lacs – Rs.2,000/-
In respect of loans availed by borrowers from rural
areas from the Rural Branches – Charges NIL.

11.OTHER CONDITIONS :
i) Loan to be disbursed in stages as per requirement / demand,
directly to the Institution/ Vendors of
books/equipments/instruments to the extent possible;
ii) Student to produce mark list of previous term/semester
before availing next installment ;
iii) Student / Parent to provide latest mailing address, in case of
any change ;
iv) Student /Parent to inform Branch immediately
on change of course /completion of
studies/termination of studies/ any refund of fees
by college /institution /successful placement
/obtention of job/change of job etc.

24
Bank Of India Personal Loan
The Bank Of India Personal Loan is of two types. They
are known as Star Personal Loans and Star Mitra
Personal Loan.

STAR PERSONAL LOANS:

Under the Bank of India Personal Loan system the Star
Personal Loan Scheme provides loans to meet various
Personal requirements of customers and their family.
Bank offers loans for marriage expenses, medical
expenses, educational expenses, purchase of consumer
durables etc. Maximum quantum of advance is
Rs.10.00 lakhs, depending upon the income, with very
attractive interest rate and easy repayment plan.

STAR MITRA PERSONAL LOAN:

(A SPECIAL LOAN SCHEME FOR THE PHYSICALLY
CHALLENGED)

Under this scheme of the Bank Of India Personal Loan

system the following are stated:

• Objective: To help Physically Challenged persons to

function independently.

• Purpose: To purchase durable and sophisticated

aids / appliances that promote their physical and
social rehabilitation

25
• Eligibility: All Phys both salaried and self-employed,
All Physically Challenged Minors through their
Parents/Legal Guardians.(No advances to middle-
men and NGOs).

• Type of Advance: Demand / Term Loan - Secured

• Amount: Max. Rs. 1 lac (No minimum stipulation)

• Eligible Amount: 10 times of net salary for salaried

persons and 50% of net annual income as per
latest Income Tax Return for Self-
employed/Professionals. Net take home income
should not be less than 40% after availing this
loan. (In case of Minors, the income of the
Parents/Legal Guardians would be the deciding
criteria for eligibility).

• Margin: 10%

• Repayment : 12 to 60 months, commencing one

month after full disbursement/ three months after
first disbursement, whichever is earlier.

• Rate of Interest: At 9% p.a. (Fixed Rate

compounded monthly, on daily reducing balance
basis).

• Security: Hypothecation of the Equipment

purchased out of Bank Finance

• Insurance: Waived. However, borrower is advised

to obtain insurance at his own cost.

• Processing Charges: Waived

26
 physically Challenged Individuals –

• Other Terms and Conditions:

1. Doctor’s Certificate to be obtained regarding

the extent of handicap and the need for the
equipment.
2. Quotation/Invoice in respect of the equipment
to be purchased.

Stamped receipt to be submitted after purchase of

the equipment

Star Personal Loans

Eligibility
Salaried employees, Professionals and individuals with
high net worth, regular pensioners or family pensioners
drawing regular monthly pension through Branch, Staff
members, retired employees (other than
dismissed/compulsorily retired) of our Bank.

Types of advance
Demand/Term Loan/Overdraft (reducible as per
repayment schedule) Overdraft limit (not reducible as
per repayment schedule) maximum upto Rs.1 lac to
confirmed permanent employees of Central/State
Govt./Reputed Corporates and PSU'.
27
Purpose Clean/Unsecured Secured loans
loans
Repayment of
Marriage expenses existing housing
of self, son, loans from other
daughter or a banks/Financial
dependent near Institutions, etc.
relative.
Education of
Medical Expenses self, spouse,
incurred/to be children, near
dependent
incurred for self, relatives.
spouse, children,
dependent near Purchase
relative. ofconsumer
28
 durables,
For education of computers,
self/spouse/ professional
children/ near equipments et
dependent
relatives.

Any other personal

expenses of
bonafide nature as
Max. Loan approved by the
Bank
Rs.10.00 lacs
Min. Size of
loan Minimum size of
Rs.2.00 lacs loan :-At Metro
and
Minimum size of
Urban Centres :
loan :-At Metro and
Rs.10,000/-
Urban Centres :
At Rural and
Rs.10,000/-
Semi
At Rural and Semi
Urban centres:
Urban centres: No
No
minimum size of
Eligible minimum size of
loan.
Amount loan.

20 times of
Gross
10 times of net
monthly
monthly
emoluments in
emoluments in case
case of salaried
of salaried
employees OR
employees
29
 OR 100% of gross
50% of gross average annual
annual income as income as
per last Income Tax per last three
Return for Income Tax
Professionals/Indivi Returns for
duals of high Professionals/
Rate of
networth Individuals of
Interest high
(On daily networtht
reducing
balances)
At 0.50% below
BPLR Min.
0.25% above BPLR 11.50% p.a. at
12.25% p.a at monthly rests.
Repayment monthly rests. Interest
Interest concession concession to
to women - 0.50% women - 0.50%
[All borrowers to be [All borrowers to
women] For Senior be women]
Citizens – 10.75%
Financing secured
under tie-up
arrangement – Maximum 60
11.50% Equated
monthly
36 Equated instalments
monthly w.e.f. one
instalments w.e.f. month after first
one month after disbursement
first disbursement. from loan

30
 Exceptional cases account.
upto 60 months

Security
Equitable/Legal Mortgage of commercial or residential
properties.
Hypothecation charge on assets acquired.
Collateral security in the form of pledge of gold/gold
ornaments, NSC/Indira Vikas Patra, Bonds, Assignment
of LIC policies, Relief Bonds etc.

Processing/Handling charges
One time @ 1.10% of loan amount Min. Rs.1000/- and
Max. Rs.5000/-
Pensioners: One time @ 1.10.% of loan amount, min.
Rs. 500/- and max. Rs. 1,100/-.

31
No processing charges for Senior Citizens (60 years &
above)

Star Mortgage Loan Scheme:

This scheme provides loan/overdraft facility against
mortgage of property at low rate of interest. The
scheme is for people engaged in trade, commerce &
business and also professionals & self employed, Prop.
Firm, partnership firm, companies, NRIs and individuals
with high net worth including salaried people,
agriculturists and staff members. The product provides
an opportunity to customers to borrow against a fixed
asset (mortgage of property) at a short notice without
much paper work/attendant hassles.

Purpose
1. To meet the credit needs of trade, commercial
activity, other
general business, Profession as also for their
bonafide requirements.
2. To meet marriage or medical or educational
expenses of family members including near
relatives.
3. To undertake repairs/renovation/extension to the
residence/commercial property.
4. Purchase of consumer durables.
5. To purchase/construct house/flat, purchase of plot.
6. To purchase 2/4 wheeler vehicles.
32
 7. For going on pilgramage/tours/excursions, etc.
8. Repayment of existing loans from other Banks/FIs.

Target customers (Eligibility)

People engaged in trade, commerce and business,
Professionals, Self-employed, Prop. Firms,
partnership firms, HUFs (excluding NBFC, Trade,
partnership firms where HUF is a partner),
companies, NRIs, individuals with high networth,
salaried people, agriculturists, staff members.

Type of advance
Demand/Term Loan/Overdraft (reducible as per
repayment schedule).
Overdraft facility (not reducible as per repayment
schedule) can also be permitted to eligible customers
(other than salaried people).

Quantum of advance
(Rs. in lacs)
Min. Max.
a. For agriculturists 0.50 2.00
b. For Others :
Individuals/Prop. Firm/ 1.00 50.00
Partnership firm/
Company :
Prop./Partnership 1.00 100.00

33
firm/company 1.00 100.00

Calculation of quantum of advance

The sanctioned limit is to be related to the value of
security & repayment capacity of borrower, subject to :
i. Salaried employees :

• 48 times of monthly net emoluments (take home

salary).
OR
• 4 times of net annual income with other rental
income from property etc. based on Income-tax
returns ( Average of Last 2/3 years).

ii. Self-employed/professionals/ individuals engaged in

trade/ commerce/ business- 4 times of their net
annual income based on income-tax returns
( Average of Last 2/3 years).
iii. Proprietorship/Partnership Firm/Company - Four
times of Cash-accruals (i.e. PAT+ Depreciation) as per
their Audited Balance Sheet/ P & L Account ( Average of
Last 2/3 years).
Note:
1. For individuals :
While fixing the limit , it is to be ensured that the net
take home pay (net of EMI [notional EMI in case of non
reducible OD] of proposed advance ) is not less than
30% of gross income of the applicant. For Prop.
Firm/Partnership firm/Company: DSCR : Min. 1.5
2. Limit prescribed would be subject to a Maximum of
70% in case of salaried employees(50% in other cases)

34
of value of property or eligibility level, whichever is
lower.

Margin
Salaried Employees 30% *
Others 50% *
*On value of property [Lower of Market Value /Distress
Sale value/Registration Value as on date of valuation]
assessed by Bank's approved valuer

Rate of Interest
w.e.f. 01.04.2009
Upto Rs,50 lacs 0.25% OVER BPLR – 12.25% Above
Rs.50 lacs 0.50% over BPLR – 12.50% Interest
concession for woman beneficiaries 0.25% p.a.[All
borrowers to be women]

Repayment
In accounts where regular Overdraft facility is not
proposed. :-
Within a period of eight years by way of EMIs. The
repayment shall commence from the month
subsequent to the month in which final disbursement is
made or 6 months from the first disbursement,
Whichever is earlier. In case of agriculturists : The
repayment will be related to the generation of farm
income from crops and other subsidiary activities.

Security

35
Equitable/Legal Mortgage charge over property in the
name of applicant or his/her spouse or parents or third
party. The person in whose name the property to be
mortgaged stands should either be a borrower/co-
borrower or a guarantor.
Note :
a. The property offered should be a residential or
commercial building or a plot of land
(residential/commercial).
b. The property should be self occupied or leased out to
acceptable individuals, government agencies, PSUs,
Corporates, etc.
c. Agricultural land is NOT accepted as security for this
facility .

Processing Fees
1. Accounts repayable as per Stipulated instalments :-
- One time @ 1% of Loan amount. Min.Rs.3000/- and
max. Rs30000/-.
2. Overdraft Limit ( not reducible as per repayment
schedule ) :
- 0.25% of the sanctioned limit, Min. Rs.3,000/- and
Max. Rs.10,000/- on annual basis.
- Documents charges, advocate fee, architect fee etc.
on actual basis.
Loan agreement copy charges : As applicable
For Partnership firms/Corporates –
Processing charges will be double that of applicable to
individuals
For Rural areas –Processing charges will be 50% that of
applicable to individuals in respect of loans availed by
36
borrowers from rural areas from the Rural Branches.
Additional charges for deviations from the scheme
norms –One time 25% of the applicable processing
charges min. Rs.500/- max. Rs.3000/-

Star Holiday Loan Scheme

To meet the expenses (like airfare/Train/Bus charges,
expenses for accommodation, sight seeing, etc.) for
going for pilgrimage/tours /excursions etc.
undertaken/to be undertaken by Self/spouse / children/
parents/family members/close relatives of proponent
within India or abroad.

Eligibility
Salaried employees/ Professionals/Self-employed
/People engaged in business/Individuals with high net
worth/Agriculturists/Pensioners /Staff members.

Type of Advance
Demand Loan (reducible as per repayment schedule)

Quantum of advance
Max. Rs.2.00 lacs (clean)
Max. Rs.5.00 lacs (in case liquid collateral security is
offered like TDRs, NSCs,IVPs, KVPs, LIC Policy
(Surrender Value) etc. atleast equal to 50% of loan
amount sanctioned)
Rs. 10.00 lacs (In case liquid collateral security is
offered like TDRs, NSCs,IVPs, KVPs, LIC Policy
(Surrender Value) etc. atleast equal to 100% of loan
37
amount sanctioned)
Pensioners : Max. Rs.1.00 lac
Minimum size of loan :-
At Metro and Urban Centres : Rs.10,000/-
At Rural and Semi Urban centres: No minimum size of
loan.

Margin
No specific margin. Loan amount not to exceed
proposed expenditure/requirement.

Repayment
Maximum in 24 EMIs (Equated monthly instalments)
w.e.f one month after first disbursement from loan
account. In special/exceptional case, upto 36 EMIs.

Rate of Interest
1. Fully Secured Advances: (Where liquid collateral
security is offered like TDRs,NSCs,IVPs, KVPs, LIC
Policy (surrender value) etc. atleast equal to 100%
of loan amount sanctioned sanctioned 1% below
BPLR, at present 11.00% p.a. at monthly rests.

2. Partly Secured Advances: (Where liquid

collateral security is offered like TDRs,
IVPs,KVPs,NSCs, LIC Policy (surrender value) etc.
atleast equal to 50% of loan amount sanctioned) :
0.50% below BPLR, 11.50% p.a. at monthly rests.

3. Clean/Unsecured Advances: 0.25% over BPLR at

present 12.25% p.a. at monthly rests.

38
 4. For senior citizens /pensioners (where pension
payment is through an a/c with the branch
disbursing the loan and EMI will be recovered out
of pension amount): For loan amount upto
Rs.50,000/- : @ 1.25% below BPLR, Min. 10.75%
p.a. at monthly rests..

Processing Charges
One time @ 1.10% of the loan amount. minimum Rs.
1000/-, Maximum Rs.5000/-. Pensioners : One time @
Rs. 1.10% of loan amount Min. Rs.500/- Maximum Rs
1100/-
No processing charges for Senior Citizens (60 years &
above)

Star Pensioner loans

Star pensioner loans mainly for the purpose of to meet marriage
expenses /Medical expenses /Education of self/spouse/children/near
relatives. Repairs/renovation/extension of existing house/flat any
other Personal Expenses of bonafide nature .

Eligibility
Regular pensioners or family pensioners drawing regular monthly
pension through the branch. Retired employees (other than
dismissed/compulsorily retired)

Type of Advance

39
Demand Loan/Term Loan/Overdraft (reducible as per
repayment schedule)/Overdraft (3 months Pension Max.
Rs.15000/-)

Quantum of Advance
Regular Pensioner Family Pensioner
a.Unsecured/Clean:- 10 times of monthly
10 times of monthly Pension(Max. loan amount
pension (maximum loan Rs.50000/-)
amount Rs.1 LAC
b.Secured :- 20 times of monthly
20 times of pension (Max. loan amount
monthlypension
(maximum loan amount Rs.50000/-)
Rs.1 lac)

Repayment
For Clean/unsecured loan holder Max.36 EMIs w.e.f. one month
after first disbursement. 60 EMIs in exceptional cases. For Secured
Advance Max. 60 EMIs w.e.f. one month after 1st disbursement.

Rate of Interest
Fully Secured Advances: @ 0.50% below BPLR, Min.
11.50% p.a.
Clean/Unsecured Advances: @ BPLR, Min. 12.00% p.a.
For Senior Citizens (for loans upto Rs.50000/-) at 1.25%
below BPLR, presently 10.75 % p.a. (Aged 60 years
and above)

Processing/Handling Charges

40
a. No processing charge for Senior Citizens (60 years & above)

b. For others [after 01.01.2008] one time @ 1.10% of loan amount,

Min. Rs.500/- and Max.Rs.1100/-.

c. Stamp Paper charges: At actuals. Loan Agreement Copy charges .-

As Applicable

Star Mahila Gold Loan Scheme

Star mahila gold scheme is new concept of Bank Of
India recently launched For the purchase of Gold
ornaments, preferably hallmarked, from reputed
Jewellers and/or Gold coins of Bank of India.

Target Group
Resident Indian Women Working Women : Women
permanently employed in Central/State Govt./PSUs/
Scheduled Banks/Teachers of Govt. Aided Institutions;
and include professionals like Doctors/ C.As/Chartered
Engineers etc.,Non Working Women : Not having
income proof. Spouse/other close relative who satisfy
income criteria to join as co-borrower .

Quantum of Advance

41
Working/Non-working women : 10 times of monthly net
emoluments (take home salary of self/spouse, in case
of non working women) Professional : 50% of Gross
Annual Income as per latest Income Tax Return
Minimum Rs. 50000/- Maximum Rs.2 lacs.

Margin
20% of the cost of Jewellery/Gold.

Interest Rate
1.75% below BPLR, presently 10.25% p.a., at monthly
rests.

Repayment
Maximum 60 EMIs .However, repayment period not to
exceed the age of 65 or retirement age of the
borrower, whichever is earlier. Repayment through
salary deduction /post dated cheques .

Security
For Loan over Rs.50,000/- liquid securities
[NSC/KVP/Insurance Policies-surrender value] for the
amount exceeding Rs.50,000/-.

Disbursement
By DD/ Pay Order favouring the seller ( with the name
of the Bank and Account Number). Stamped Receipt/
Invoice for the total cost of jewellery (i.e Loan Amount
plus Margin ) to be obtained. Proforma invoice required
for a loan amount of Rs. 1 lac and over.

42
Processing Charge
For Loan upto Rs.50,000 - Rs.500/- . Over Rs.50,000-
1.10% of the loan amount Min. Rs.500. Stamp charges
for documents at actuals. Loan Agreement copy
charges. As applicable

Policy on Collection of Dues

1. Introduction:
The debt collection policy of the Bank is built around dignity and
respect to customers. Bank will not follow policies that are unduly
coercive in collection of dues. The policy is built on courtesy, fair
treatment and persuasion. The Bank believes in following fair
practices with regard to collection of dues and repossession of
security and thereby fostering customer confidence and long-term
relationship.
The repayment schedule for any loan sanctioned by the Bank will be
fixed taking into account paying capacity and cash flow pattern of the
borrower. The Bank will explain to the customer upfront the method
of calculation of interest and how the Equated Monthly Installments
(EMI) or payments through any other mode of repayment will be
appropriated against interest and principal due from the customers.
43
Bank’s Security Repossession Policy aims at recovery of dues in the
event of default and is not aimed at whimsical deprivation of the
property. The policy recognizes fairness and transparency in
repossession, valuation and realization of security. All the practices
adopted by the Bank for follow up and recovery of dues and
repossession of security will be in consonance with the law.

2. General Guidelines:
All the members of the staff or any person authorized to represent our
Bank in collection or/and security repossession would follow the
guidelines set out below:

1. The customer would be contacted ordinarily at the place of

his/her choice and in the absence of any specified place, at
the place of his/her residence and if unavailable at his/her
residence, at the place of business/occupation.

2. Identity and authority of persons authorized to represent bank

for follow up and recovery of dues would be made known to
the borrowers at the first instance. The bank staff or any
person authorized to represent the bank in collection of dues
or/and security repossession will identify himself / herself and
display the authority letter issued by the bank upon request.

3. The Bank would respect privacy of its borrowers.

4. The Bank is committed to ensure that all written and verbal

communication with its borrowers will be in simple business
language and bank will adopt civil manners for interaction
with borrowers.

5. Normally the Bank’s representatives will contact the

borrower between 0700 hrs and 1900 hrs, unless the special
circumstance of his/her business or occupation requires the
bank to contact at a different time.

44
 6. Borrower’s requests to avoid calls at a particular time or at a
particular place would be honored as far as possible.

7. The Bank will document the efforts made for the recovery of
dues and the copies of communication set to customers, if
any, will be kept on record.

8. All assistance will be given to resolve disputes or differences

regarding dues in a mutually acceptable and in an orderly
manner.

9. Inappropriate occasions such as bereavement in the family or

such other calamitous occasions will be avoided for making
calls/visits to collect dues.

3. Giving notice to borrowers

While written communications, telephonic reminders or visits by the
bank’s representatives to the borrowers place or residence will be
used as loan follow up measures, the Bank will not initiate any legal
or other recovery measures including repossession of the security
without giving due notice of 7 days in writing. Bank will follow all
such procedures as required under law for recovery/repossession of
security.

4. Repossession of Security
Repossession of security is aimed at recovery of dues and not to
deprive the borrower of the property. The recovery process through
repossession of security will involve repossession, valuation of
security and realization of security through appropriate means. All
these would be carried out in a fair and transparent manner.
Repossession will be done only after issuing the notice as detailed

45
above. Due process of law will be followed while taking repossession
of the property. The Bank will take all reasonable care for ensuring
the safety and security of the property after taking custody, in the
ordinary course of the business.

5. Valuation and sale of property

Valuation and sale of property repossessed by the bank will be carried

out as per law and in a fair and transparent manner. Bank will have
right to recover from the borrower the balance due if any, after sale of
property. Excess amount if any, obtained on sale of property will be
returned to the borrower after meeting all the related expenses
provided the Bank is not having any other claims against the
customer.

6. Opportunity for the borrower to take back the

security
As indicated earlier in the policy document, the bank will resort to
repossession of security only for the purpose of realization of its dues
as the last resort and not with intention of depriving the borrower of
the property. Accordingly the bank will be willing to consider
handing over possession of property to the borrower any time after
repossession and before concluding sale transaction of the property,
provided the bank dues are cleared in full. If satisfied with the
genuineness of borrower’s inability to pay the loan installments as per
the schedule, which resulted in the repossession of security, the bank
may consider handing over the property after receiving the
installments in arrears. However, this would be subject to the Bank
being convinced of the arrangements made by the borrower to ensure
timely repayment of remaining installments in future.

46
Loan Processing Life Cycle

47
•The Origination Process
– Application Sourcing from Various Channels
– Application Screening
– Data Entry

•The Evaluation Process

– Application appraisal and mandatory checks
– Financial health of the borrower
– Eligibility Criteria
– Sanction Limit

•The Disbursement Process

– Sanction Terms & Conditions
– Interest Rate & Tenor
– Collateral
– Post Dated Cheques / ECS

•The Monitoring Process

– Post Loan Process
48
– Recovery Mechanism
– Invocation of Collaterals

• Proposal
– Submission of loan proposal substantiating the need
for the loan and substantiates the
ability to repay the loan

• Appraisal
– Appraisal check for credibility of the applicant,
whether source of repayment is good
enough to sanction the loan, defaulted in previous
occasion, risky customer etc

• Credit Decision (Sanction)

– The bank takes the credit decision based on the
credentials of the applicant and the
purpose of the loan.

• Disbursement
– The disbursement can be made as a single payment
or in tranches.

•Monitoring (repayment, continuous assessment)

– Monitored to ensure that there are no materials
adversities and those recoveries are
promptly coming in till normal closure of the loan
account and end use is justified.

•Recovery
– If the customer does not make payment on due dates,
follow-up needs to be madelegal
and non-legal.

Non Performing Asset

49
– If principal/installments and interest are not received
for more than x months, the
loan is termed as non performing asset. As the asset
(loan) does not earn any money, it
is termed as ‘non performing’.

•Suit
– If the loan could not be recovered in the normal
process, a bank would file a suit in the court
of law to recover the money. It can be either a civil suit
or a criminal suit based on the circumstances

50
51
7.1 Aggregate Loan Vs GDP

Here we can show a direct corerelation between the

amount of loans and GDP at factor prices but the
proportion in which they increase may not be
equivalent.

52
7.2 GDP Growth Rate VS Loan
Growth Rate ( PLR in prespective)

53
CHAPTER 3- RESEARCH
OBJECTIVES AND SCOPE OF
RESEARCH
3.1 PROBLEM DEFINATION:
Present credit crisis is creating many changes in banks
lending policies and also effecting the banks
performance. Its very difficult to understand these
volatile conditions. That is why it creating
dissatisfaction among borrowers and loan holders.
Sometimes it very difficult to make understand to client
and also difficult to banks to manage these changes.
3.2 OBJECTIVES OF RESEARCH PROJECT:
3.2.1 PRIMARY OBJECTIVES:
• To study the loan reimbursement policies of
bank.
• To study the effect of credit crisis on bank lending
policies.
• To determine the changes which taken place due
to credit crisis.

.
3.2.2 SECONDARY OBJECTIVES:
• To determine the purpose of loans.
• To understand the eligibility criteria for borrowers
which are set by the bank.
• To offer suggestions based upon the findings.
54
3.3 SCOPE of research:
The same problem was with the all other branches of
Bank O India even out of the Sindri city. The
management is conducting the same research on a big
ground while my contribution is tiny.
Though my sample size and geographical area was
defined and confine to a particular territory
but the application of out put from the research are
going to be wide.
.

CHAPTER4- RESEARCH
METHODOLOGY AND
LIMITATIONS

All the findings and conclusions obtained are based on

the survey done in the working area
within the time limit. I tried to select the sample
representative of the whole group during my job
training. I have collected data from people who have
taken loan from Bank Of India..
4.1 RESEARCH PLAN:
4.1.1. Preliminary Investigation: In which data on the
situation surrounding the problems shall be gathered to
arrive at
 The correct definition of the problem.
 An understanding of its environment.

55
4.1.2. Exploratory Study: To determine the approximate
area where the problem lies.
4.2 RESEARCH DESIGN:
Research was initiated by examining the secondary
data to gain insight into the problem.
By analyzing the secondary data, the study aim is to
explore the short comings of the present system and
primary data will help to validate the analysis of
secondary data besides on unrevealing the areas which
calls for improvement.
4.2.1 DEVELOPING THE RESEARCH PLAN:
The data for this research project has been collected
through self Administration. Due to time limitation and
other constraints direct personal interview method is
used. A structured questionnaire was framed as it is
less time consuming, generates specific and to the
point information, easier to tabulate and interpret.
Moreover respondents prefer to give direct answers. In
questionnaires open ended and closed ended, both the
types of questions has been used.

4.2.2 COLLECTION OF DATA:

1: Secondary Data: It was collected from internal
sources. The secondary data was collected on

56
the basis of organizational file, official records, news
papers, magazines, management books,
preserved information in the company’s database and
website of the company.
2: Primary data: All the people who have taken loan
from Bank Of India from were personally visited and
interviewed. They were the main source of Primary
data. The method of collection of primary data was
direct personal interview through a structured
questionnaire.
4.3 SAMPLING PLAN:
Since it is not possible to study whole universe, it
becomes necessary to take sample from the universe
to know about its characteristics.
 Sample Technique: Random Sampling.
 Research Instrument: Structured Questionnaire.
 Contact Method:Personal Interview.
4.4 SAMPLE SIZE:
My sample size for this project was 100 respondents.
Since it was not possible to cover the whole universe in
the available time period, it was necessary for me to
take a sample size of 100 respondents.
4.5 DATA COLLECTION INSTRUMENT
DEVELOPMENT:

57
The mode of collection of data will be based on Survey
Method and Field Activity. Primary data collection will
base on personal interview. I have prepared the
questionnaire according to the necessity of the data to
be collected.
4.6 RESEARCH LIMITATIONS:
 It was not possible to understand thoroughly about
the different loan policies of bank within 60 days.
 As stipend, money was not given it was difficult to
continue the project work.
 The area of research was Dhanbad and it was too
vast an area to cover within 60 day

58
Insights of an Analyst
I interviewed Mr. Ashis Kumar, Assist Manager of State
Bank Of India (Sindri Branch). Here I present some
excerpts from the interview –

Q. How do you calculate credit worthiness

of a client?
Ans – we have our internal rating department which
basically rates the company or individual on its credit
worthiness on a regular basis. When a request for loan
comes up we do a financial analysis and credit analysis
of the company, also we do an overall industry analysis
but on the other hand for individual we see his assets
and past records with the bank . All these processes
help in drawing the overall picture. Also in case of a
new applicant we try and get information from our
older clients to a get complete round up of the
applicant. These sources can be very helpful because
they interact on a regular basis with each other.
59
Q. How do you calculate interest on loans?
Ans – calculation of interest depend on different type
of schemes. It’s differ with different types of loans as
well. It may be daily weekly besis. various parameters
that are taken into account are the basic lenders of the
bank i.e. the normal depositor, the RBI, interbank call
market (e.g. MIBOR ). After this we calculate our margin
which may also vary from time to time. Adding this
margin to the average
borrowing rate gives the interest rate on the loan.
Q. Do you employee any special kind of
algorithm in order to calculate the interest
rate
and payment periods. If yes please specify.

Ans – We have customized software to calculate the

interest rate. The interest rate usually depends on the
credit worthiness of client, cost of borrowing, prime
lending rates etc.
Q. What kind of loans requires collaterals?
If yes then when and the amount of
collaterals.
Ans – Usually there is collateral on every loan we
provide to our client, but the amount of collateral in
proportion to loan varies considerably. If the client has

60
a strong financial position, then the amount of
collateral varies from 50% to 70%. In some cases the
amount even exceeds 200% of the loan amount.
Q. Does the bank interfere in how the client
utilizes the loan amount?
Ans- the bank usually does not interfere directly but
the borrower requires to present bills and other
documents of purchase etc. when drawing the amount.
This is a just a precautionary measure so that we are
able to make sure that the loan amount is not used for
uncalled for reasons. As the borrower provides us a
specific reason to get a loan we must make sure that
the money serves that very same purpose.
Q. What role does RBI play in loans?
Ans – the RBI sets norms and other conditions
regarding the amount of loans and determines the risk
averseness of the banks. Also the RBI influences the
interest rates hence plays a definitive role in the bank’s
policy.
Q. Are the terms and conditions negotiable?
Ans – Yes the terms and condition are negotiable. Time
period of the loan, interest rate, and the moratorium
period are the most negotiated topics.

61
Q.How the present credit crises affected
the bank lending policy? Also have you seen
any major difference in the creditor’s
attitude in wake of the current crises?
Ans – most of the banks shave stopped lending due to
the present liquidity crunch and many companies
shutting their shops, now our bank has become very
cautious and has reduced lending to clients. Only top
notch clients are given loans. Existing customers who
are showing signs of slowdown are being forced to
repay to the amount at the earliest possible.

Q.How long you take to sanction the loan?

Ans – It depend on types of loan. Generally for
education loan and home loan we take one month
maximum and on the other hand for personal loan and
other type of loan we take 3 to 5 days.

Q.What are your loan reimbursement

policies?
Ans – We follow our own strategies. This is not
negotiable. Some time we take help from agency. we
appoint collection agency to collect or recover loan.

62
Statistical Analysis
In this segment I will show my findings in the form of
graphs and charts.All the data which I got form the
market will not be disclosed over here but
extract of that in the form of information will definitely
be here.
Detail:
Size of Data :100
Area : Dhanbad
Type of Data : 1. Primary 2. Secondary
Industry : Banking
Respondent : Loan holders of Bank Of India

63
Table1: perception about different products and
services offered by Bank Of India?

PARAMETER
RESPONSES
LUCRATIVE 39%
NOT LUCRATIVE 23%
NO IDEA 38%

Table2: Awareness level of customer about

different terms and conditions which are very
much essential to Get Bank loan?

Sr No. Category No. of Percentage

Respondents
Yes 82 82%
64
 No 18 18%
Total 100

Interpretation

From the table above it can be seen that

• 82% respondents are known about Bank Of India’s
lending terms and conditions.
• 59% respondents are not known about Bank Of
India’s lending terms and conditions.
.

Table2: Type of loan

PARAMETER
RESPONSES
Home loan 7%
Education loan 13%
Car loan 12%
Personal loan 28%
Others 40%

65
Table3: How long Bank Of India taken to provide you
loan?

Sr No. Category No. of Percentage

Respondents
1. Less than 15 65 65%
days
2. More than 35 35%
15 days
Total 100

Interpretation

From the table above it can be seen that

• 65% respondents have got loan from Bank Of India in
less than 15 days.
• 35% respondents have got loan from Bank Of India in
more than 15 days.

66
Table4: Are you aware about the terms and conditions
of Bank Of India against your loan?
Sr No. Category No. of Percentage
Respondents
1. Yes 89 89%
2. No 11 11%
Total 100

Interpretation

From the table above it can be seen that

• 89% respondents are aware about the terms and
conditions of Bank Of India against their loan.
• 11% respondents have got loan from Bank Of India in
more than 15 days.

Table4: Are you satisfied with terms and conditions of

Bank Of India against your loan?

Sr No. Category No. of Percentage

Respondents
1. Very satisfied 38 38%
2. Satisfied 47 47%
3. Dissatisfied 9 9%
4. Very 6 6%
Dissatisfied
Total 100

Interpretation

From the table above it can be seen that

67
• 38% respondents are very satisfied with terms and
conditions of Bank Of India against their loan.
• 47% respondents are satisfied with terms and
conditions of Bank Of India against their loan.
• 9 % respondents are dissatisfied with terms and
conditions of Bank Of India against their loan.
• 6 % respondents are very dissatisfied with terms and
conditions of Bank Of India against their loan.

68
CHAPTER5- CONCLUSION
6.1 CONCLUSIONS:

Bank Of India, the banking arm of Bank Of India is

expected to go on stream. It is on the brim of
increasing its customers through its attractive schemes
and offer.
Business Opportunities of the bank can be explored.
Through this project, it could be concluded
that people are not much aware about the various
products of the bank. While firmly adhering to a policy
of prudence and caution, the Bank has been in the
forefront of introducing various innovative services and
systems. Business has been conducted with the
successful blend of traditional values and ethics and
the most modern infrastructure. Services was
considered as unsought good which require hard core
selling, but in
changing trend in income and people becoming
financially literate, the demand for banking
sector is increasing day by day.
According to my findings Bank Of India is very
defensive bank than other banks while providing loan
to client . the terms and conditions are very lucrative.
So, at last the conclusion is that Bank Of India is
performing good in this segment. Last but not the least
I would like to thank Bank Of India for giving me an
opportunity to work in the field of finance. I hope the
company finds my analysis relevant

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 ANNEXURES
1. QUESTIONNAIRE

QUESTIONNAIRE Dear
Sir/Madam,

Name:
Address:
Contact No:
City:

I am a student of Birla Institute of Technology (Mesra) Ranchi

and presently doing a project on loan reimbursement policy
in Bank Of India. I request you to kindly fill the questionnaire below
and I assure you that the data generated shall be kept confidential.

1. Your Age:....................................................

2. Educational Qualification:.............................

3. Occupation:

• Business

• Profession

• service

4: What is your perception about different products and services

offered by Bank Of India?
• Lucrative □
• Not lucrative □
• No idea □

5: Are you aware of different terms and conditions which are

very much essential to Get Bank loan?

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 • Yes □
• No
□

6: have you taken loan from Bank Of India?

• Yes □
• No
□

7: Which type of loan have you taken from Bank Of India?

• Home loan □

• Personal loan □

• Two wheeler loan □

• Other (please
specify)....................................

8: Why have you taken loan from Bank Of India?

....................................................................................
.....................................................................................................
.....................................................................

9: How long Bank Of India taken to provide you loan?

• Less than 15 days
• More than 15days

10: Are you aware about the terms and conditions of Bank Of
India aganist your loan?

• Yes □
• No
□

11: Are you satisfied with terms and conditions of Bank Of

India against your loan?

 Very satisfied □

 Satisfied □

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  Dissatisfied □

 Very Dissatisfied □

12: Any thing you want to recommend for bank of india

.....................................................................................................
.....................................................................................................
....................................................

Date:
Place:
Signature

Thank You

BIBLIOGRAPHY
1.BOOKS AUTHORS
• • Research Methodology (2nd Edition)
• Research Methodology Kothari C R
2. NEWS PAPERS
• Times of India
• Financial Express
3. WEBSITES
• www.bank of india.com
• www.scribd.com
• www.moneycontrol.com
• www.banknetindia.com

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