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BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES GOVERNMENT OF NCT OF DELHI, DELHI 92 [AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI]
BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES GOVERNMENT OF NCT OF DELHI, DELHI-92 [AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI]
CERTIFICATE OF ORIGIN
This is to certify that Mr. AMIT KUMAR NANGLU the bonafide student of Master of Business Administration (MBA) Third Semester, in Bhai Parmanand Institute of Business Studies (BPIBS), Govt. of NCT, Shakarpur, Delhi, has worked under the able guidance and supervision of Mr. SK JAIN Sr. Manager of BANK OF INDIA ,MAYUR VIHAR PHASE -1 BRANCH. He was on training for the period of 6 weeks, starting from 22nd June, 10 to 2nd August, 10. This Summer Internship report on the topic A DETAIL STUDY OF BOI CAR LOAN submitted in partial fulfillment of the requirements of the program has the requisite standard for the partial fulfillment the post Graduate Degree in MBA. To the best of our knowledge, no part of this report has been reproduced from any other report and the contents are based on original research.
Mr.GTVLN CHARYULU
AMIT KUMAR NANGLU Roll No.03811433909 DEPARTMENT] M.B.A., Third Semester BPIBS,
BPIBS,
(PROJECTGUIDE)
[MBA
Shakarpur, Delhi
Shakarpur, Delhi
ACKNOWLEDGMENT
IT IS A PLEASURE TO RECORD MY THANKS AND GRATITUDE TO PERSONS AND ORGANIZATION WHOSE GENEROUS HELP AND SUPPORT ENABLED ME TO COMPLETE THIS PROJECT WITHIN THE STIPULATED TIME PERIOD. MY SPECIAL THANKS ARE DUE TO Mr. SK JAIN (SR MANAGER) BANK OF INDIA , NEW DELHI FOR HIS ACTIVE HELP AND SUPPORT IN MAKING ME UNDERSTAND THE BANKING PRODUCTS & SERVICES. I ALSO THANK TO Mr. PRADEEP KUMAR AND BANK EMPLOYEES AND STAFF MEMBERS OF THE BRANCH FOR PROVIDING ME THEIR HELP AND COOPERATION AT EACH STAGE.
I AM GREATLY INDEBITED TO ALL THOSE PERSONS WHO HAVE HELPED ME IN SOME WAY OR OTHER IN THE COMPLETION OF THE PROJECT.
A MIT KUMAR NANGLU ROLLNO.03811433909 M.B.A., Third Semester BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES,
3
Shakarpur, Delhi
CONTENTS
PARTICULARS
Certificate of the organization Certificate of project guide Acknowledgement Executive summary
Page No.
CHAPTER -1
INTRODUCTION
1.1 Objective of study 1.2 Methodology 1.2.1 Research Design 1.2.2 Data Collection Approach
CHAPTER -2 ORGANISATIONAL PROFILE
2 .1 Introduction 2.2 profile 2.3 Quality policy of BOI 2.4 Vision 2.5 Mission 2.6 Awards 2.7 Detail Business Overview 2.8 Subsidiaries Of BOI 2.9 Services Provided by BOI
CHAPTER-3
Car Loan Scheme Car Finance Auto Loan Product Overview New Car Loan Documents and Procedure 3.5 Car Loan Process 3.6 Calculation of EMI 3.7 Comparison of Different Banks Car Loan Scheme
CHAPTER -4
CHAPTER -7
ANNEXTURE
7.1 Questionnaire 7.2 Project summary 7.3 Evaluation Sheet 7.4 Performance Appraisal Sheet
EXECUTIVE SUMMARY
Bank of India is offering all the modern and essential facilities to the customers of the car loan.
The other banks , which offers car loan , as a separate product is SBI, Bank of Baroda ,Oriental Bank of Commerce, UCO Bank, Dena Bank, Indian Bank, ABN AMRO Bank, HDFC.
Rate of interest offered by respective banks are: Bank of India Bank of Baroda HDFC UCO Bank OBC SBI ABN AMRO Bank Dena Bank 8.75 % 10% 10.50% 11.30% 11.50% 10.25% -10.75% 8% - 11.25% 15% 10.75% -11.00%
Bank of India, SBI, HDFC, Dena Bank, UCO Bank and Indian Bank provides car loan in easy way. Maximum amount of loan provide by different banks for car loan.
Bank of India - For Individuals: 24 times of monthly gross salary or Rs25lakhs whichever is lower.
Higher amount of loan may also be considered in deserving cases. For Business concern: Rs100lakh or Rs1crore SBI UCO Bank Dena Bank
Bank of India is providing maximum amount of loan among public sector banks.
Bank of India
1.10% or Rs1000
UCO Bank
1% or Rs1000
Rs2150
Dena bank
Rs 1000
SBI
0.50%
Rs1000
Rs1000 or
Rs2500
Bank of India first among the nationalized bank to establish a fully computerized branches & A.T.M facility.
CHAPTER 1 INTRODUCTION
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MAKE A COMPARATIVE STUDY OF BANK OF INDIA CAR LOAN WITH OTHER COMPETITIVE BANKS
TO STUDY THE RULES AND DOCUMENTS REQUIRED BY BANK OF INDIA FOR CAR LOAN
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1.2 METHODOLOGY
Sample Size:
Sample of 100 people was taken into study, and was collected.
Sampling Techniques:
To study the project, a Simple Random Sampling technique is used.
Data Collection:
Collection of data is done by Secondary Data & through
Questionnaire
i.e., Primary data was collected through Questionnaire.
12
Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The objective is to examine all the issues involved & conduct situational analysis. The methodology includes the overall research design, sampling procedure &fieldwork done & finally the analysis procedure. The methodology used in the study consistent of sample survey using both primary & secondary data. The primary data has been collected with the help of questionnaire as well as personal observation, books, magazine, journals have been referred for secondary data. The questionnaire has been drafted & presented by the researcher himself.
13
CHAPTER - 2
ORGANISATIONAL STRUCTURE
14
INTRODUCTION
The bank has 3101 branches in India spread over all states/union territories including 141 specialized branches. These branches are controlled through 48 zonal offices. There are 29 branches/offices (including 3 representative offices) abroad. The bank came out with the maiden public issue in 1997 & follow on qualified institution placement in February 2008. Total number of shareholders as on 30/09/2009 is 215790.
While firmly adhering to a policy of prudence & caution, the bank has been in the forefront of introducing various innovative services & systems. Business has been conducted with the successful blend of traditional values & ethics & the most
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modern infrastructure. The bank has been the 1st among the nationalized banks to establish a fully computerized branches & A.T.M facility at Mumbai was back in 1989. The bank is also a founder member of SWIFT in India. It pioneered the code system in 1982, for evaluating/rating its credit portfolio.
The bank association with the capital market goes back to 1921. When it entered into an agreement with the Bombay stock exchange (B.S.E) to manage the B.S.E clearing house. It is an association that has blossomed into a joint venture with B.S.E, called the B.O.I shareholding L.T.D to the stock broking community, Bank of India was the 1st Indian bank to open a branch outside the country at London, in 1946, & also the 1st to open a branch in Europe, Paris in 1974. The bank has sizable presence abroad, with a network of 29 branches (including 5 representative offices) at key banking & financial centre VIZ London, New York, Paris, Tokyo, Hong Kong, & Singapore. The international business accounts 17.82% of banks total business.
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Miles Stones:
1906: Group of Eminent Businessmen Establishes the Bank. 1946: Opening of London Branch:- 1st Indian Bank to open a Branch Overseas. 1950: Opening of Tokyo Branch:- 1st Indian Bank to open a Branch in Japan. 1969: Nationalization along with 13 others Banks Branch Network: Indian: 207 & Foreign: 12. 1989: Established BOI Shareholding Ltd A JV with Bombay Stock Exchange (BSE) TO manage Clearing House of BSE. 1997: Launched maiden IPO Govt. Shareholding diluted to 76.53%. 2003: Ranked as Indias Most Trusted Services Brand Consecutively for 3 years by AC Nielsen ORG MARG. 2004: Ranked 25th Among Indias Top 200 Companies by D&B.
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2007: Surpassed Landmark of INR 10bn in Net Profits. 2008: Surpassed Landmark of INR 20bn in Net Profits. 2009: Surpassed Landmark of INR 30bn in Net Profits.
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SUPERIOR PROACTIVE INNOVATIVE STATE OF THE ART Banking services with an attitude of care & concern for the customers & patrons.
19
20
21
Bank of India wins dun & Bradstreet award for the best public sector bank category 2010. The award for the most efficient public sector banks conferred by Dalal Street.
Best performance in western zone under the rural employment generation program.
Bank has been rated by the Economic times/The Nielsen company survey as the most trusted brand(MTB) 2009 as follows-
Under the PSU Banking Category 2nd next to S.B.I. Under top service brands 8th. The Debuntant 1st time in top 100.
FE-EY most efficient Public Sector Bank Awards 2009, Best Bank under Banking Category.
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2nd Rank for Excellent Performance in Lending to Medium Enterprises also, Best Performing Bank for covering maximum number of Micro & Small accounts under collateral Free Lending Scheme of CGT MSE.
23
24
RESOURCE MOBILISATION
Total deposits of the bank amounted to Rs 2,29762cr as on march 30,2010 showing an absolute accretion of Rs 40,054cr.and a growth of 21% over previous year. The share of low cost deposits (current and savings) in total domestic deposits stood at 31.75%.
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YEARS
2007
2008
2009
2010
26
TOTAL ADVANCE S
86791
114793
144732
171317
27
Banks association with Bombay stock exchange LTD. (B.S.E) spans over a period of more than 8 decades with the clearing & settlement functions of the Bombay stock exchange LTD.(B.S.E) handled by the bank. Later on 1989, bank setup B.O.I shareholding LTD., as a joint venture with B.S.E to manage the clearing house activities of the exchange. The company is carrying out the demat rolling settlement on T+2 basis of the exchange through the national securities depository services L.T.D (NSDL) & Central depository services (India) L.T.D (CDSL) efficiently & also the settlement of G - secs through an integrated computerized system. With a view to optimizing use of its trained manpower & sophisticated I.T infrastructure, besides handling settlement related work of the exchange, the company also extends depository services to member brokers of the stock exchange & the retail investors. During 200405 the company commenced new business activity i.e franking of stamp documents, which has proved to be highly lucrative & has been contributing significantly to the revenues of the company, with the corporatization of the stock exchange, Mumbai & its transformation in to a corporate entity Viz the Bombay stock exchange L.T.D. During the year, the clearing & settlement function of B.O.I shareholding L.T.D are likely to get transferred to a clearing corporation in future. B.O.I.S.L earned a net profit of Rs309.25lakh during 2005-06 as against Rs152.13lakh earned during F.Y 2005-06 & final dividend of 45% taking total dividend for F.Y2005-06 to 60% as against 25% dividend paid during the F.Y2004-05.
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2. Securities Trading Corporation of India L.T.D Securities Trading Corporation of India L.T.D (STCI)
Securities trading corporation of India L.T.D (STCI) is one of the primary dealers in the country enjoying the highest credit rating of P1+ by Crisil & A1+ by ICRA for short term debt instruments. The bank is the single largest stake holders of STCI with 29.95% stake in its equity. The year 2004 05 witnessed a sudden & swift hardency of interest rates & narrowing down on margin in trading & glit securities as such all major PDS including STCI incurred losses from operations. For the 1st time in its history, the company incurred a loss of Rs97cr during F.Y-2004-05 with diversification plan & strategies, the company made a quick turn around & earned a net profit of Rs24cr during the F.Y-2005-06. During the year STCI also successfully bid for acquiring the U.T.I securities L.T.D from the specified undertaking of the unit trust of India with this acquisition STCI hopes
29
to mark its presence in the field of equity trading, portfolio mgt. services, commodity trading, depository services etc.
STAR UNION DAI-ICHI LIFE INSURANCE CO L.T.D Bank of India & Union bank of India two leading public sector bank in India, & the Dai-Ichi mutual life insurance company a leading Japanese company in the life insurance market, have floated a joint venture company, star union Dai-Ichi life insurance co. L.T.D, for undertaking life insurance business in India. The company, has been incorporated/registered with the registrar of companies, Maharashtra on 25th September, 2007 & will be a Mumbai based company. The company application for license is under IRDAS consideration. The company is well advanced in preparation for setting up office, putting up the team & other infrastructure. The joint venture agreement, among others envisages, a capital stake of 51% by BOI, 26% by Dai-Ichi-life & 23% by union bank. The joint venture company would have initial paidup capital of Rs250.00cr. The joint venture company with the strength of the domestic partners in the Indian financial, sector coupled with the DaiIchi-lifes strong domain expertise is expected, to be a strong player in the Indian life insurance market in a short time, the company aims to develop various products to serve all strata of the society. Bank of India & Union bank of India have a strong nationwide network of more than 5000 offices, which shall provide a sound distribution channel with a wide reach which is the key to the success of an which is the key to the success of an insurance venture. More then 48 million strong banking customer base of
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the 2 banks provides ready scope of cross selling of insurance products. The 2 banks have strong brand equity and command high level of trust among their customers & people at large. Additionally the regional rural banks sponsored by the 2 banks have more than 1400 branches to tap life insurance business in the rural areas. Dai-Ichi- life is a leading player in the life insurance segments in Japan & is one of the top 10 life insurers in the world & the second largest life insurance company in Japan. Established in 1902, it has more than a venture of experience in life Insurance business. It has sound product knowledge, share asset mgt. skills & strong operational capabilities to manage life insurance the best insurance JV partner on the domain side. Star union Dai-Ichi-life insurance company L.T.D is also committed to providing partners are in the presence of insurance to rural & weaker/social sectors. Both the domestic partners are in the process of implementing GOVT OF INDIA initiative of financial inclusion & their pan India network, of branches gives the company a natural edge in catering to these sectors effectively. With the strong brand & commitment of the partners, star union Dai-Ichi- life insurance company L.T.D, promises to be a new stair on the horizon of the India life insurance scene, promising value to all stake holders.
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Bank of India Current Deposit Plus. Super Current Deposit plus Account.
32
3.
Individuals, Partnership Firms, Private & Public LTD Companies, HUFs/Specified Associates, Societies, Trusts, can open Current Accounts etc.
Fixed Deposit Receipt Short Deposit Receipt Quarterly Income Certificate Monthly Income Certificate Recurring Deposit
BOI Retail Credit Scheme Star Auto Fin Scheme Star Educational Loan Star Holiday Loan Star Home Loan Scheme Star I.P.O Star Mortgage Loan
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Star Mortgage Loan (For Farmers Arthias & Dealers of Agricultural Inputs ) Star Personal Loan Star Pensioner Loan
Bank of India Pensioners Credit Card Scheme for extending Loan facility against pledge of gold coins) Ornaments. Small & Medium Enterprise & O.P.S
BOI Star Channel Credit Scheme for financial assistance to distributors & super stockist of medicines. Financial assistance for setting up Akshay Urja Shops. Loan for Tax Return Prepares (T.R.P).
34
Retail Credit. BOI Artisans Credit Card (ACC). Star Dhanvantri Suvidha Scheme.
Internet Banking. Pay Bills. Book Air Ticket. Book Rail Ticket. Online ASBA IPO. Direct Tax. Central Excises, Services Tax.
Star e Remit. 2FA/ Start Token. Online Internet Bank Fund Transfer. Locker Facilities. Gold Business.
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India Card. Taj Premium Card. Visa Electron Debit Card. Gold International Credit Card.
My Place
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Women
Financial Independence for women is now within easy reach with support of BOI. Bank of India provides the independent women of today a spectrum of financial facilities. The facilities provided by the bank, exclusively to women for their Empowerment are as under:-
Besides the above schemes for women, the following additional facilities provided to women entrepreneurs.
Priority Sector Schemea) Credit assistance to women entrepreneurs in tiny & SSI sector. b) Credit assistance to women beneficiaries in other priority sector schemes. c) Credit facilities to women entrepreneurs under various Govt. sponsored schemes like
Prime Ministers Rozgar Yojana(PMRY) Swarnjayanti Gram Swarozgar Yojna(SGSY) Swarnjayanti Shahari Rozgar Yojna (SJSRY)
37
Scheme for Liberation & Rehabilitation of Scavengers(SLRS) Interest Concession in respect of loan to women beneficiary.
Agriculture 16,284 18,256 1,972 Small Enterprises Housing Education Total Priority Sector 5,921 1,326 6,343 1,716 390 422 17,941 25,810 7,869
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Farmers
Bank of India harnesses continued support to the agrarian society by providing adequate financial facilities to farmers for meeting short-term working capital requirements. 1. BOI Shatabdi Krishi Vikas Card. 2. Star Bhoomiheen Kisan Card (Star - BKC) 3. Bank of India (Samanya Credit Card) 4. Kisan Credit Card. 5. Kisan Samadhan Card.
Land Development.
Senior Citizens
Senior Citizens Scheme Bank of India has introduced special loan schemes for senior citizens with low interest rates such as personal loan scheme for Pensioners to meet their immediate requirements such as Medical Expenses. The scheme helps in realizing the vision of serving people for a better quality of life. Depositor means an individual Who has attained the age of 60 years or above on the date of opening of an account under the provisions of these rules, and by whom, or on whose behalf, money is deposited in an account under these rules. A depositor may open the account in individual capacity or jointly with spouse.
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Professionals
Bank of India extends needful assistance for working capital requirements to self-employed professionals. This is aimed to enhance professional strengths in terms of business purposes.
NRI
NRI Accounts
NRI Account
Non Resident Indians can open accounts under this scheme. The account should be opened by the Non-Resident account holder himself and not by the holder of power of attorneys in India.
Description
NRE accounts can be opened by remittances from abroad in any convertible currency or from transfer of funds from existing NRE/FCNR accounts held by any person with any Bank in
41
India. These accounts can be opened at all branches of Bank of India. Accounts can also be opened during temporary visits of NRIs to India against tender of foreign currency traveler cheques/ notes and coins. The remittances received in foreign currency for opening of NRE accounts will be converted into Indian rupees at the prevailing exchange rates. These accounts can be maintained under Savings/Current and Term depositing schemes.
FCNR Account
Non-Resident Indians can open accounts under this scheme. The account should be opened by the non-resident account holder and not by the holder of power of attorney in India. These deposits can be maintained in 5 designated currencies i.e. U.S. Dollar (USD), Pound Sterling (GBP) and Euro, Australian Dollar (AUD) & Canadian Dollar (CAD). These accounts can only be opened with funds remitted from abroad in convertible foreign currency through normal banking channels, which are of repatriable nature in terms of general or
42
special permission granted by Reserve Bank of India. These accounts can be maintained with our branches, which are authorized for handling foreign exchange business. (List of branches authorized for handling foreign exchange business). Funds for opening accounts under the BOI Global Foreign Currency Deposit Scheme or for credit to such accounts should be received from Remittance from outside India or Traveler cheques/currency Notes tendered on visits to India. International Postal Orders cannot be accepted for opening or credit to FCNR accounts. Transfer of funds from existing NRE/FCNR accounts. If remittance is received in any currency other than USD, GBP, EURO, AUD & CAD, it will be converted into one of the designated currencies of remitters choice at the risk & cost of the depositor.
Special FD Scheme
Regular Interest every month or quarter
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Features:
Depending upon your choice, the scheme offers regular income to you by the way of payments of interest on monthly or quarterly basis. Interest is credited regularly. However, the original amount of fixed deposit remains intact and paid at the time of maturity.
Minimum deposit of Rs 10000/- or any higher amount is accepted under the scheme for any period from 12 months to 120 months.
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CHAPTER - 3
RESEARCH STUDY OF MAIN TOPIC
A person wants certain luxuries for enjoying his life and a car is one of them, a car gives him convenience to travel one place to another. Now a days it become a status symbol in society. So it becomes a need of every human being but some people does not have the capacity to pay a huge amount at a time but they can pay the price in installment so for these people many banks offer car loans schemes. In which they can buy car and pay its price in installment. Almost everyone make easier to purchase a car. Now days car is become one of the basic need of man but buying a own car become a dream for man because of its prices.
So in fulfillment of this dream man, needs help. In this condition Bank of India take a Initiative to provide easy car loan to those people who are willing to buy a own car.
People are appreciating car loan scheme of Bank of India and this can be proof by figures which show that the total amount of car loan scheme is increase in 2007-2010 amazingly.
The car loan amount increases from 877cr. in 2009 to 1218 cr. in 2010 which accounts a growth of 38.88%. So Bank of India helps people to get car & increase in social status.
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Bank of India provide all type of car loans which comes under the purview of Bank guidelines, term & conditions and the credit limit which is 24 times of the monthly net salary or Rs 25lakh, whichever is lower, in case of individuals.
For corporate Rs 100lakh after presenting required documents. Corporate include self employed, Partnership firm, Private Ltd, Public Ltd etc.
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Mahindra- Logan, Scorpio Tata- Safari, Indigo, Sumo GM Spark, Cruise, Beat, Magnum
THE TOTAL GROWTH IN AUTO LOAN SEGMENT FOR LAST THREE YEARS:-
YEAR
2008
2009 22.6%
2010 38.8%
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13%
90%
1.5% N.A 5%
8%-
Rs15lakh
1-7yrs 0.50%
2%
49
11.25% Bank of India DENA Bank UCO Bank Indian Bank O.B.C 8.75%- Rs25lakh 10.00% 10.75% Rs 8lakh 11.00% 11.50% 85% Or Rs7.50La kh 11.00% Rs 15Lakh 11.25% 1-6yrs 1.10% or Rs1000 1-5yrs Rs1000 NIL
NIL
0.5%
NIL
NIL
Amount of Loan
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For Individual: 24 times of the monthly net salary or Rs25lakh, 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.
For N.R.I: Loan amount to Rs25lakh. For Imported Vehicles: Loan amount to Rs75lakh. Margin
Up to Rs 2.00lakh 5% Rs2lakh to Rs10lakh 10% Above Rs10lakh to Rs25lakh 15% Above Rs25lakh 25%
Security
The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It will be registered in the name of the borrower jointly with the Bank. Guarantee of spouse, if employed or third party guarantee is acceptable to the bank.
Rate of Interest Rate of Interest (For loans granted on & after 1.04.2009) BPLR at 12.00% TENURE For Loans Repayable in/upto Less than 3years Rate of Interest @ percent p.a.
Above 3 years
For old Car/Van/Jeep: The loan amount together with interest is to be repaid maximum in 36 Equated Monthly Installments (EMIs) For Imported Vehicles: The loan amount together with
interest is to be repaid maximum in 84 Equated Monthly Installments (EMIs)
Disbursement
The intending borrower will be required to settle the transaction for purchase of vehicle needed by him/her with the seller and will be required to deposit the difference of the cost of the vehicle to amount of loan will be required to deposit the difference of the cost of the vehicle to amount of loan, and thereafter, the advance will be allowed to him/her from the bank by paying the entire price of the vehicle to the seller directly on behalf of the borrower. Profit Interest earned on the loan is its profit. Auto Loans The bank offers auto loans at fixed interest rate as well as floating rates also for financing automobile and used car purchases.
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Personal Loans
Unsecured personal loans are offered at fixed rates to specific customer, including salaried individuals and self-employed professionals.
Product------------- New and Used Car Standard product ------------------ EMI in advance, EMI in
arrears
Minimum loan -------------------- Rs10000 Tenure ----------------------------- 12-72 months Eligible borrower --------------------- Salaried individuals, Self
employed, Sole Proprietorship, Partnership firms, NRI, Private and Public Companies.
CAR LOANS
FEATURES
Finance all passenger cars & most of the multi utility cars. The tenure range is 12 72 months. Competitive rates.
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24 48 hours to process the loan after we receive complete set documents. Loan up to 90% of the invoice value. Prepay the loan anytime without any prepayment charge. Easy documentation. Processing charges waived for senior citizens, staff members & retired employees of the bank & pensioner drawing pension from the bank.
DOCUMENTS REQUIRED:-
Salaried Individual
Partnerships Firms
Yes
Yes
Yes
Last 3 Last 3 Years Years ITR & ITR & Audited Audited Accounts accounts
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A/C
Bank Statement (Last 12 months) Proof of Identity Proof of Residence Proof of Office Address Legal Documents
Yes
Yes
Yes
Yes
Yes
Yes Yes Yes A Letter Signed by all the Partners accepting the Loan
OTHERS DOCUMENTS:-
1. CHA -2. 2. OD -194 (Guarantee Deed) 3. L-515 as per Br. Cir. No. 94/186. 4. L-515 as per Br. Cir. No. 97/114 (Where CBD -13 obtained) 5. Comprehensive Insurance Policy. 6. Letter addressed to Insurance Company.
57
7. Transfer form in blank in duplicate. 8. Registration of bank charge on the vehicle with regional transport authority. 9. Valuation certificate for Second hand vehicle from approved valuer. 10. Undertaking to inform change in constitution/address etc. 11. A letter of authority by the borrower to debit the loan/SB A/C with Intt./ Service charges/Insurance Premium. 12. Where guarantors vehicle is taken as collateral security, obtain another CHA 2 with modification.
ELIGIBILITY CRITERIA:58
For Salaried Individual, Self-employed Individuals, Partnership Firms, Public and Private Limited Companies
Residence/Office Residence should be owned by the applicant or rented for >1 years.
Income
Telephone
Minimum Applicant should own Income Landline of Phone at Rs1.5lak residence and at office. h.
Residence/office/Fact Minimum Applicant ory should own Income Landline / workshop should be of Phone at owned by the Rs0.60la residence applicant or rented and at office. c. for at least 2years Office/Factory/Works hop Should be owned by the firm or main partner or rented for at least 2years Minimum Landline phone at Income office. of Rs0.60la kh. Minimum Landline Income phone at of office. Rs0.60la c.
CPV should be done at residence and office of applicant and co- applicant.
Partner-ship
NA
Office/Factory/Works hop Should be owned by the Co. or director or rented For at least 2 years
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Description of Charges Cheque bouncing charges Stamp Duty Late Payment Penalty Processing Fees Other Charges
New Car Loans Rs 100 At actual More than 2% per month 1.10% or Rs1000 -
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Features: Choose any car manufactured in India within a certain range. Borrow up to 70% of the value of the car.
Borrow up to 2times your annual salary(for salaried professionals) And 2times your annual income (for self employed professionals) Available for almost all car models at attractive interest rates. Repay with easy EMIs.
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If you have had a Preferred Account or a Corporate Salary Account With Bank of India for than six months, you can get fast approvals on your loans with minimal documentation.
DOCUMENTS REQUIRED:-
Salaried Individual
Partnerships Firms
Yes Last 3 Years Audited B/S & P&L A/C Yes Yes
Yes Yes
Yes Yes
Yes Yes
Yes Yes A Letter Signed by all the Partners accepting the Loan
ELIGIBILITY CRITERIA:For Salaried Individuals, Self-employed Individuals, Partnership Firms, Public and Private Limited companies. Criteria Salaried Self employed Age Partnership Company firm NA
21-60 21-65 at NA years at the end of the end of the tenure the tenure Minimum 1 year. Minimum 1 year. NA
NA
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Min. of years At least 3years of in/ total Employment/ employm ent Business Min. income for cars
Gross Last year income of & latest Rs1.5lakh. year must be profitable. Must be at residence & at office. Must be at residence & at office.
Last year & latest year must be profitable. One phone at least in Business & one at residence of loan Executing partner.
Last year & latest year must be profitable. At least 1 phone must be at business.
Telephone
PRICING: Highly competitive. 1.10% processing fee payable up front (Pl contact local sales manager for revised applicable rates). Customers can pre-pay the entire loan amount before the agreed tenure.
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Description of Charges Cheque bouncing charges Stamp Duty Late Payment Penalty Processing Fees Other Charges Valuation charges
New Car Loans Rs 100 At actual More than 2% per month 1.10% Used Cars Rs2000 per case
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Details of Staff Vehicle Loan: Maximum amount = Rs360000 Minimum Amount = Rs80000 Margin = 10% Maximum repayment period = 15years Rate of Interest: Up to Rs80000 at 8%pa. Above Rs80000 to Rs360000 at 12%pa.
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Customer
Sell Scheme, with applicable LTV for relevant model Check Eligibilit y NO STOP
Check Authori ty
Cluster Head
67
Update LTS
Conduct Telephonic Verification Collect Preapproval documents Fill out Approval Card Soft Approval by BM/Cluster Head
2
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CPA/Credit Staff to communicate status to Branch. BM to sign Approval Card & send complete file to Assets office. CAR Sales Staff to arrange delivery/ disbursement & inform branch when distributed.
END
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CALCULATION OF EMI Case1 Normal case (when there is no advance EMI) Loan amount 200000 Tenure (months) 24 Interest rate 10% (Account IRR) EMI 9,229 Advance EMI Month EMI Principal Interest Outstanding Cash flow 0000 -200000 1 9,229 7,562.33 192,437.66 9229 2 9,229 7,625.35 184,812.31 9229 3 9,229 7,688.89 177,123.41 9229 4 9,229 7,752.97 169,370.44 9229 5 9,229 7,817.58 161,552.86 9229 6 9,229 7,882.72 153,670.13 9229 7 9,229 7,948.41 145,721.72 9229 8 9,229 8,014.65 137,707.07 9229 9 9,229 8,081.44 129,625.63 9229 10 9,229 8,148.78 121,476.84 9229 11 9,229 8,216.69 113,260.15 9229 1,666.66 1,603.64 1,540.10 1,476.02 1,411.42 1,346.27 1,280.58 1,214.34 1,147.55 1,080.21 1,012.30
20
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12 9,229 8,285.16 943.83 104,974.98 9229 13 9,229 8,354.20 874.79 96620.77 9229 14 9,229 8,423.82 805.17 88196.95 9229 15 9,229 8,494.02 734.97 79702.92 9229 16 9,229 8,564.80 664.19 71138.11 9229 17 9,229 8,636.18 592.81 62501.93 9229 18 9,229 8,708.15 520.84 53793.78 9229 19 9,229 8,780.71 448.28 45013.06 9229 20 9,229 8,853.89 375.10 36159.17 9229 21 9,229 8,927.67 301.32 27231.49 9229 22 9,229 9,002.07 226.92 18229.42 9229 23 9,229 9,077.08 151.91 9152.34 9229 24 9,229 9,152.73 76.26 -0.38 9229 Comparison of car loan scheme offered by other bank with Bank of India Almost every bank offers car loans. I had compared the entire car loan scheme offered by HDFC Bank, ABN AMRO Bank, State Bank of India, Oriental Bank of Commerce and Bank of India and the details of the findings are as follows.
HDFC Bank:
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HDFC Bank Provide car loan individuals as well as business concerns also. The rate of interest charged by HDFC Banks is as follows: In case New Car :- 11.30% HDFC Bank Provide finance up to 90% of the total loan amount. HDFC Bank Provide facility to repay the loan amount maximum in 7years. HDFC charge processing fees of Rs2150 Rs3650.
State Bank of India offers car loan scheme with following features. State Bank of India provide loan to individual as well as Business concern also. State bank of India provide loan which is repayable maximum up to 7years for new car & In case of old car it is 3years.
State Bank of India charge a prepayment charge of 2% in case loan is paid before the tenure of the loan.
State Bank of India Provide a loan amount of Rs15lakh. The rate of interest charged by State Bank of India is as follows: In case of new car 1st year - 8% For 2nd & 3rd year 10% For 4th & 5th year - 11.25% For 6th & 7th year 11.50% In case of old car Up to 3years 14.25% Above 3 years 15.00%
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Oriental Bank of commerce Provide car loan to individuals as well as business concerns also.
Oriental Bank of commerce provide loan up to 84months. Oriental Bank of commerce charge interest rate as follows:In case of new car Up to 3years => 10.25%pa Above 3years => 10.75%pa In case of old car Up to 3years => 13.25% Above 3years => 13.75% Oriental Bank of Commerce finances up to Rs10lakh. Comparison of different banks car loan schemes it gives result that Bank of India provides best car loan scheme because it provide loan up to Rs25lakhs for individual & for corporate it can finance up to Rs100lakh at very low interest rate. Like up to 3years it charge only 8.75% & beyond 3years it charge interest of 9.25% per annum. Like when a people wants to financed his car worth Rs7Lakh & want to repay this amount in 3years then SBI (8%) & BOI (8.75%) charge lowest interest rates. But when a person wants to repay his loan in more than 3years then Bank of India is best because it charge only 9.25% interest rate on the other hand if a person
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wants to finance a car worth of more than Rs7lakhs then again only Bank of India offers him lowest rate of interest which is 9.50% pa Up to 3years & after 3years it charge only 10.00% interest rate per annum. Moreover it provide maximum amount of loan 25lakhs among all public sector banks. So only Bank of India offers the best car loan scheme which suits almost every one & make easier to purchase a car.
CHAPTER 4
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ANALYSIS
OPPORTUNITIES
As car loan is a profitable lending option due to continued good performance of the services sector, the bank will continue to focus on this segment. The bank will continue to study the market requirements, evolve innovative and diversified products to reach the customers in every nook and corner of the country. For better decision support system,business intelligence, management information system and decision making. The bank is in final stage of rolling out data warehouse.
Libralisation opens up various opportunities and at the same time it also increase exposure to risks. Risk management, therefore, is paramount. Since risks have a direct and proportional relation with returns, the bank has to clearly envisage its risks which can be managed effectively. Further risks management system need to be brought to such a level of sophistication that the systems on their own generate adequate capital and liquidity cushions against economic and market distruptions.
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It has been observed that approximately 30% correspondents are using the services of Bank of India for their daily transaction. Around 45% of People are using SBI for their daily transaction. Around 8% of people are using ICICI Bank for their transaction and only 6% & 11% of people are using HDFC & other Bank service respectively in Mayur Vihar Phase-1. Q2. Are you aware of Products & services provided by BOI. a) Yes 70% b) NO 30%
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From the above data it is clear that most of the customers (Around 70%) of Mayur Vihar have the idea about the product & services of Bank of India.
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Q3. If yes are you aware of the advance products (Loan segments) of BOI. a) YES 68% b) NO 32%
It is clear that most of the people have the idea about the advance product of Bank of India. Almost all the 68% people who have the idea about the advance products are the user of Bank of India products & services.
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According to my sample size 51% of people prefer Bank of India for loan product, but some people prefer SBI, ICICI, HDFC & Other banks for loan because they are working with the bank & it is easier for them to pay the interest because it is less as compared to other bank because they are the employees of that bank.
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Q5. If you prefer Bank of India for taking loan than what influence you to take loan from Bank of India
Most of the people said that they prefer Bank of India for taking loan because of the transparency & the lowest interest rate for any kind of loan product and it is easy to get loan from Bank of India as compared to other banks because less paper work is required & simple & fast processing is required.
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Q6. Which loan product of BOI you have used. a) Home Loan 43% (32) b) Education Loan 19% (14) c) Car Loan 21% (16) d) Personal Loan 9% (7) e) Other Loans 8% (6)
TOTAL NO. OF PEOPLE 75
From the sample size 75% of people are using the BOI loan product. From the 75 people 43% of people took home loan from BOI. 19% of people took education loan for their children, 21% of people took car loan from BOI. 9% of people took personal loan.
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Q7. What do you feel about the services providing by Bank of India in advance product. a) Bad 0% b) Satisfactory 25% c) Good 55% d) Excellent 20% TOTAL NO. OF PEOPLE 100
From this it is clear that the service provide by BOI in its advance product is good in between the customer. All of them satisfy with the product provide by Bank of India. 55% of people said that the service provide by BOI is good & 20% said it is excellent & 25% of people said that it is satisfactory.
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Most of the people like the attractive interest rate & transparency. Its easier of people to repay the whole loan amount with low interest rates & longer repayment period.
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FINDINGS
Bank of India is applying aggressive marketing strategy for car loan. SBI is a major competitor of Bank of India. Bank of India is having Tie up with various Automobile companies eg. (Tata Motors, Maruti, Hyundai Motors) Bank of India is trying to Tie-up with some other Automobile Companies. Bank of India is offering various facilities to customers for taking loan. Bank of India is trying to find better relationship with local dealers to increase to the customer database. Bank of India is using proper market channel to aware customer about car loan. Bank of India is advertising their car loan by using print media also. Bank of India also tries to make new Tie- ups with other Automobile Companies (These Tie- ups arrangement changes from time to time).
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CONCLUSION
There are various type of car loans are being provided by Bank of India ranging from short term to longterm to packing and like. But as studies throughout the project, lending process is not so simple. It involve a long series of steps and planning as suited to and decided by the bank itself, of course, abiding by the rules and regulations of Bank of India and RBI. It Provide easy car loan access if all required documents are prepared.
It charge minimum processing fees moreover processing charges are waived for senior citizens, staff members & retired employees of the bank & pensioners drawing pension from the bank.
It fulfills the dreams of the people having a car. Somewhere it Contribute in Indian economy by releasing the liquidity in terms of loans. Better and timely quality of services and product diversification.
Negative Points
The bank take long processing time, during the time customer may dilute his plan of taking loan.
Communication gap to approach right kind of people No long term customer relationship. List of defaulters Bank of India is not providing services like refinance &overdraft
RECOMMENDATIONS
Bank of India should go for advertise car loan availability. Try to maintain very good relationship with car dealers. Bank of India is having a large number of existing customers so they should convert their strength in opportunity. Try to aware customer about car loan availability & procedure that how to apply for loan.
More promotional schemes should be followed, for example if a customer is paying his EMI regularly, he can be given some gift or some concession in interest rate that would be an incentive for others also to pay regularly.
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Facility to access loan from anywhere i.e. nearest to your resident, office, working place. Properly and timely solution of customer complaints. Bank of India should also provide extra facilities like Refinance & Overdraft facilities which help in making new & retain existing customers & win the trust of the people. Bank of India should go for advertise car loan availability by using different media like T.V, Newspaper, Radio, Print media etc. in order to make more people aware of the car loan scheme.
APPENDICSES:Q. Who can avail car loan? A. Individuals and Business Concerns. Q. Whether finance is also available for used cars? A. Finance is also available for purchase of Used Cars not older than 3 years. Q. How much loan can be availed under the scheme?
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A. For individuals, loan amount shall be 24 times the net monthly Salary/Income, subject to maximum of 70% of the cost of the vehicle whichever is less. In case of business concerns, loan amount can be up to Rs100lakh or Rs1crore. Q. Whether the income of the spouse is also taken into account for determining the amount of loan? A. Yes, income of the spouse can also be taken into account for determining the amount of loan. In such cases, the spouse shall stand as a guarantor. Q. What will be the repayment period? A. Amount of loan together with interest shall be repayable in 72 equal monthly installments. However, for old car, loan together with interest is to Repaid maximum in 36 equal monthly Installment. Q. How much loan can be availed for Indian Make & Foreign Make Vehicle? A. Bank of India Provide car loan for Indian Vehicle as well as for Foreign Make Vehicle. Bank Provide maximum amount of Rs25lakh for Indian make vehicle & Rs75lakh for Foreign Make Vehicle. Q. Whether interest applicable is flat rate or at reducing balance? A. Interest is charged on reducing balance. Q. What formalities are to be completed for availing the facility? A. The following documents are required to be submitted:
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1.
LIMITATIONS
Due to Shortage of Bank Staff it is difficult to collect data from Bank employees. As they have lot of workload due to which Bank employees does not want to give information as they feel it is wastage of time.
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CHAPTER 6 BIBLOGRAPHY
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BIBLIOGRAPHY
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CHAPTER 7 ANNEXTURE
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Questionnaire
Name- ____________________________________ Occupation- ______________________________ Contact Detail- ___________________________ Q1. On which bank you depend for your regular transaction. a) BOI b) SBI c) HDFC d) ICICI e) Other Bank, Specify (_____________)
Q2. Are you aware of products & services provided by BOI. a) YES
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b) NO Q3. If yes are you aware of the advance products (Loan segments) of BOI. a) YES b) NO Q4. Which bank you prefer for taking loans a) BOI b) SBI c) HDFC d) ICICI bank e) Other Bank, Specify (___________)
Q5. If you prefer BOI for taking loan than what influence you to take loan from SBI ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ _______________________________________________________________.
Q6. Which loan product of BOI you have used. a) Home Loan b) Education Loan c) Car Loan
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Q7. What do you feel about the services providing by BOI in advance product. a) Bad b) Satisfactory c) Good d) Excellent Q8. Which feature you like most in loan segments of BOI. a) Less paper work b) Attractive interest rate c) Transparency d) Simple & fast processing Q9. Any suggestion you want to give for the betterment of BOI advance product. ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ _________.
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