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INTRODUCTION

1.1 INTRODUCTION

State Bank of Mysore was established in the year 1913 as Bank of Mysore Ltd. under the patronage of the erstwhile Govt. of Mysore, at the instance of the banking committee headed by the great Engineer-Statesman, Late Dr. Sir M.Visvesvaraya. Subsequently, in March 1960,the Bank became an Associate of State Bank of India. State Bank of India holds 92.33% of shares. The Bank's shares are listed in Bangalore, Chennai and Mumbai stock exchanges. The Bank has a widespread network of 707 branches and 22 extension counters spread all over India which includes 6 Small and Medium Enterprises Branches, 4 Industrial Finance branches, 3 Corporate Accounts Branches, 6 specialized Personal Banking Branches, 10 Agricultural Development Branches, 3 Government Business branches, 1 Asset Recovery Branch and 8 Service Branches, offering wide range of services to the customers.

1.2 FINANCIAL PROFILE:

The paid up capital of the Bank is Rs. 468 Millions as on 31.03.2011 out of which State Bank of India holds 92.33%. The networth of the Bank as on 31.03.2011 is Rs.3099.47 Crores and the Bank has achieved a capital adequacy ratio of 13.76% as at the end of 31.03.2011. The Bank has an enviable track record of earning profits continuously and

uninterrupted payment of dividend since its inception in 1913. The Bank earned a net profit of Rs.500.62 Crores for the year ended March 2011 and earning per share is at Rs.121.66. 1.3 BUSINESS PROFILE:

Total deposits of the Bank as at the end of March 2011 is Rs.43225 Crores and the total advances stood at Rs. 34442 Crores which include export credit of Rs. 1260 Crores. The Bank is a major player in foreign exchange dealings also and has achieved a merchant turnover of over Rs 34342.96 Crores and a trading turnover of over Rs 37658.49 Crores for the year ended March 2011.

1.4 BANKS MISSION:

A premier Commercial Bank in Karnataka, with All India Presence, committed to provide consistently superior and personalized customer service backed by employee pride and will to excel, earn progressively high returns for shareholders and be responsible corporate citizen contributing to the well being of the society.

2. LOANS (P-SEGMENT PRODUCTS) State Bank of Mysore provides various types of loan. They are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Housing Loan Scheme. SBM Realty. SBM Flexy Housing Loans. Grama Dhama (Rural Housing). Sahayog Kuteer. Education Loan. My Bank Utsav. My Bank Adhyapak. My Bank Arakshak. Car Loan (New Vehicles) Car Loans (Used Vehicles) Helpage Scheme For Pensioners. Sanjeevini. Varshavahini. Two Wheeler Loan. Personal Loan Against Rental Income. Personal Loans. Personal Loan Against Mortgage of Immovable Property. 19. Personal Loan-Xpress Credit.

2.1. HOUSING LOAN SCHEME. PURPOSE: 1. 2. Purchase or construct a new house/flat. Purchase an existing (old) house/flat or extend an existing house. 3. 4. Repair or renovate an existing house/flat. Purchase a plot of land for purpose of

construction of a dwelling. 5. Purchase furnishings/consumer durables as part of the project cost. ELIGIBILITY: Individuals over 21 years of age with a steady source of income including person engaged in agriculture and allied activities. LOAN AMOUNT: As per the age and income of the borrower. AGE OF THE BORROWER: Up to 45 years of age Salaried persons 60 times net monthly income Above 45 Years 48 times net monthly income 5 times net Others annual income 4 times net annual income

Income of spouse,son. Daughter may be considered.

 Regular income from all sources can be considered. Expected rentals may be taken into account, if the proposed house/flat is being letout. Furnishings & Consumer Durables can be included in the project to the extent of 10% of the project cost subject to a maximum of Rs.3.00 Lakhs. Loan for repair/renovation up to Rs.10.00 Lakhs. MARGIN: Up to Rs.1.00 crore: 15% of the total project cost which may be include cost of land, additional amenities, registration fees, stamp duty etc., Above Rs.1.00 Crore: 25% of the project cost. For repairs and renovation of an existing house: 20% of the cost of repair /renovation. REPAYMENT: In equated monthly installments. For borrowers up to 45 years of age: 20 years. For borrowers over 45 years of age: 15 years. PROCESSING CHARGES: 0.30% of the loan amount.

PREPAYMENT PENALTY:

Prepayment penalty Loans on fixed and floating interest rates.

Terms

2% Penalty on the amount prepaid in excess of normal EMI dues should be levied in respect of preclosure of housing loans before expiry of half of the original tenure.( i.e. ,for a loan with repayment tenure of 10 years, prepayment penalty will be charged if the loan is pre-closed before 5 years).

PRIORITY SECTOR: Loan up to Rs.15 lakhs (excluding staff advances) in rural, semi-urban and metropolitan areas for construction of houses by individuals are treated as priority sector advances.

2.2 SBM REALTY

PURPOSE: Housing loan schemes for purchase of plot of land for construction of a house.

ELIGIBILITY: Individuals over 21 years of age with a steady source of income including persons engaged in agriculture and allied activities. LOAN AMOUNT: Maximum Rs.20 Lakhs. Up to 45years of age Salaried persons 60 times net monthly income Others 5 times net annual income 48 times net monthly income 4 times net annual income Above 45 Years

MARGIN: 15% of the cost of land (i.e., price in the sale deed including cost of registration, stamp duty etc.) REPAYMENT: Repayable in a maximum of 180 months (15 years) commencing from the month following the month of disbursal of loan.

PROCESSING CHARGES: 1. For loans up to Rs. 1 Lakh : NIL 2. For loans above Rs. 1 Lakh : 0.30% of the loan amount. Housing loan borrower will have twin benefit of availing housing loan for purchase of plot of land under SBM REALTY and also another housing loan for construction of house.

2.3 SBM FLEXI HOUSING LOANS: Housing loan with a combination of fixed and floating rate of interest at a pre determined ratio to hedge the interest rate risks. Two housing loans for the fixed and floating rates will be opened. Option to Debit either fixed rate or floating rate towards early disbursements. Disbursements from the second loan only after realization of full amount from the first account chosen. All other terms and condition of housing loan applies to this scheme.

2.4 GRAMA DHAMA (RURAL HOUSING)

Scheme for rural housing- covers also construction of workshed for pursuing income generating activities. The scheme provides for taking any other tangible security including agricultural land in cases where the clear title for the house\flat is not available. Interest concession of 0.25% below card rates of housing loans. Margin is 10%. No processing charges. Maximum loan amount is Rs.2 Lakhs.

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2.5 SAHAYOG KUTEER.

Scheme for financing self help groups for on lending to its members for housing purposes. Loan amount of Rs. 50,000 per member for purchase/ construction of house and Rs.25000 for repairs or renovation/ purchases of plot. Interest concession is 0.25% below card rates. No processing charges. Security: Group guarantee of HSG member. Other conditions: SHGs should not charge to its members more than 3% of interest rates charged by the bank under this scheme.

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2.6 EDUCATION LOAN. PURPOSE: Financial assistance to deserving\meritorious students for pursuing higher education in India and abroad.

ELIGIBILITY: Should be an Indian national. Secured admission to professional\technical courses through entrance test\selection process. Secured \institutions. admission to foreign universities

QUANTUM OF LOAN: Studies in India: Maximum Rs.10 Lakhs. Studies abroad: Maximum Rs. 20 Lakhs. MARGIN: Up to Rs. 4 lakhs: NIL. Above Rs. 4 lakhs: Studies in India: 5% Studies abroad:15%

REPAYMENT HOLIDAY\MORATORIUM: Course period+1 year or 6 months after getting job, whichever is earlier. Documents should be executed by both the students and the parent\guardian as joint borrower.

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RATE OF INTEREST: For loan up to Rs. 4Lakhs: 0.50% below SBMPLR i.e. 10.50 %. For loan above Rs. 4Lakhs: 0.25% above SBMPLR i.e. 11.25%.

1% concession in interest if full interest is paid during the moratorium period. Simple interest to be charged during moratorium period. Accrued interest during the moratorium period to be added to the principal at repayment in EMI to be fixed. PROCESSING CHARGES: NIL

CLASSIFICATION UNDER PRIORITY SECTOR: Education loans up to Rs:7.50 Lakhs for studies in India and Rs.15 Lakhs for studies abroad.

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2.7 MYBANK UTSAV.

ELIGIBILITY: Permanent employee of state\central government PSUs profit making companies. Self employed persons, persons having regular monthly income of not less than Rs. 3000.

LOAN AMOUNT: Minimum of Rs. 5000 and Maximum of Rs. 50000, subject to four months net income.

SECURITY: Check off facility on third party guarantee.

REPAYMENT: Repayable in 12 monthly installments .

PROCESSING CHARGES: Rs.100 per application.

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2.8 MY BANK ADHYAPAK.

ELIGIBILITY: Permanent teachers, lecturers of central\state

government, educational institutions and also teachers of government recognized , aided schools, colleges.

LOAN AMOUNT: 10 times net monthly salary with a maximum of Rs. 1 Lakh.

SECURITY: Up to Rs. 25000( only check off facility only). Above Rs. 25000- Third party guarantee.

REPAYMENT: Repayable in thirty six monthly installments with update interest.

PROCESSING CHARGES: Rs.250/- flat.

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2.9 MYBANK ARAKSHAK.

ELIGIBILITY: All permanent employees of Police department. LOAN AMOUNT: 10 times net monthly salary with a maximum of Rs.1.00 Lakh. SECURITY: Up to Rs.25,000/- (check off facility only). Above Rs.25,000/- Third Party Guarantee along with check off facility,

NSC,LIC Policy, where check off facility is not available post dated Cheques can be accepted.

REPAYMENT: Repayable in 36 equated monthly installments. PROCESSING CHARGES: Rs.250/-flat.

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2.10 CAR LOAN (NEW VEHICLES).

ELIGIBILITY: Age 21-65 years. Annual Net Income of Rs.75,000/- & above for Salaried Persons. Net Monthly Income is at least 2 times EMI for others, Self Employed and Professionals. LOAN AMOUNT: 30 times the Net Monthly Income for Salaried Persons. 2.5 times Net Annual Income for others, Self Employed and Professionals. PROCESSING CHARGES: NIL. MARGIN: For loan up to Rs.6.00 Lakhs-15%. For loan above Rs.6.00 Lakhs-30%. REPAYMENT: The loan should be liquidated with a period of 7 years. PREPAYMENT PENALTY: 2% of the loan amount prepaid.

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2.11 CAR LOANS (USED VEHICLES). PURPOSE: Financing vehicles not more than 5 years only. Financing vehicles on the basis of duplicate Registration book is not permitted.

ELIGIBILITY: Age: 21-65 years. Net Annual Income Rs.75,000/- and above for Salaried Persons. Net Monthly Income should be at least 2 times of EMI for Others, Self Employed & Professionals. LOAN AMOUNT: Maximum Rs.15.00 Lakhs. 30 times Net Monthly Income for Salaried Persons and 2.5 times Net Annual Income for Others. MARGIN: For Loans up to Rs.6 Lacs : 15% For Loans above Rs.6 Lacs : 30% Certificate of fitness/valuation from a reputed garage.

For cars sold under Maruthi True Value Scheme or Automart India- No Valuation certificate is required.

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REPAYMENT: The loan to be repaid within 7 years from the date of original sale. PROCESSING FEE: NIL. PREPAYMENT PENALTY: 2% of the amount of loan prepaid.

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2.12 HELPAGE SCHEME FOR PENSIONERS. ELIGIBILITY: A. i. Pensioners: All central, state government pensioners and

bank pensioners whose pension accounts are maintained by our branches. ii. age. B. i. Family pensioners: Family pensioner i.e., spouse authorized to Pensioners should not be more than 70 years of

receive pension after the death of the pensioner. ii. years of age. PURPOSE: To meet personal expenses. LOAN AMOUNT: A. Pensioners: The family pensioner should not be more than 65

A maximum of 12 months net pension with a ceiling of Rs.75,000. B. Family pensioners:

A maximum of 9 months net family pension with a ceiling of Rs.50,000. In no case should the equated monthly installment(EMI) be more than 25% of the net pension drawn by the family pensioner.

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MARGIN: NIL PRIMARY SECURITY: NIL

COLLATERAL SECURITY: A. Pensioners: Third party guarantee(TPG) of the spouse eligible for family pension. In the absence of the spouse, TPG of any other family member or a third party worth the loan amount. B. Family pensioners: Third party guarantee of person who has been maintaining a satisfactorily conducted account with the Bank, preferably of the son/daughter of the family pensioner. This is applicable to both public as well as our bank pensioners. REPAYMENT: In a maximum of 48 EMIs commencing from the pension payable one month after disbursal of loan. The branch will deduct the monthly installment at the time of payment of pension.

TYPE OF LOAN: Demand loan.

INTEREST RATE: As advised from time to time ( presently 1.50% above our SBM BPLR i.e. 12.50% p.a).

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PROCESSING CHARGES: NIL 2.13 SANJEEVINI. A loan scheme for high cost treatment like corneal implant, angioplasty, heart valve replacement etc.

INCOME CRITERIA: 1. Salaried persons /pensioners: Net monthly income Rs.6000. 2. For others: Net annual income Rs.1.50 lakhs. AMOUNT OF LOAN: Minimum Rs.20000 Maximum Rs.1.50 lakhs.

MARGIN: 15% of the hospital bills. REPAYMENT PERIOD: Minimum 36 months. Maximum 72 months. PROCESSING CHARGES: 0.50% of the loan with a maximum of Rs.500.

AGE LIMIT: Maximum 65 years.

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2.14 VARSHA VAHINI. Loan to people owning houses to take up rain water harvesting. LOAN AMOUNT: Total cost of the project. Maximum Rs.25,000. MARGIN: NIL PROCESSING CHARGES: NIL REPAYMENT: 60 EMI RATE OF INTEREST: On par with housing loan.

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2.15 TWO WHEELER LOAN. PURPOSE: To purchase any two wheeler. ELIGIBILITY: Permanent employees. LOAN AMOUNT: 12 times net monthly income or 90% of the whichever is less. cost

MARGIN: 10% PROCESSING CHARGES: 1.25% of the loan amount. REPAYMENT: Maximum of 60 months.

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2.16 PERSONAL LOAN AGAINST RENTAL INCOME. ELIGIBILITY: Persons getting a monthly rent of Rs.5000 or more on the residential \commercial property standing in their name. LOAN AMOUNT: Minimum Rs. 50000. Maximum Rs. 15 lakhs.

SECURITY: Equitable mortgage over residential or commercial property standing in the name of the applicant.

MARGIN: 40 % of the rent receivable subject to loan amount not to exceed 50% of the value of security.

REPAYMENT: maximum 84 months.

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2.17 PERSONAL LOANS.

PURPOSE: To meet personal expenses E.g.: Marriage, family functions, medical expenses, Education expenses , travel etc.

ELIGIBILITY: State/central government employee, employees of PSU/ reputed profit making public limited companies, MNCs with a minimum service of 2 years. Irrevocable letter of authority from the borrower to recover the amount from the employer to be lodged with the employer under acknowledgement and registered with the employer.

MINIMUM NET MONTHLY INCOME: Take home salary of Rs.6,000/-p.m.(For other branches) Rs.5,000/-p.m.(at captive branches) LOAN AMOUNT: Minimum Rs.24,000/- (i.e. 4 times the net monthly income of Rs.6,000/-) The Branch Managers can sanction lower amount. Maximum: Rs.1.50 Lakhs. Repayable in 12 months 4 times of NMI Repayable in 24 months 8 times of NMI 26

Repayable in 36 months 10 times of NMI or Rs.1.5 lacs whichever is less.

SECURITY: Third Party Guarantee of equal means. As far as possible additional collateral security like LIC Policy, Shares etc., may be obtained.

REPAYMENT PERIOD: 12 months to 36 months EMI. TYPE OF LOAN: Demand Loan.

RATE OF INTEREST: As specified from time to time.

PROCESSING CHARGES: 1.25% of the loan amount ( one time )

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2.18. PERSONAL LOAN AGAINST MORTGAGE OF IMMOVABLE PROPERTY. ELIGIBILITY: Permanent employees whose monthly net salary is Rs.12,000/Professionals and Self employed persons, Agriculturists whose net Annual income is Rs.1.50 Lakhs per annum. LOAN AMOUNT: Minimum of Rs.1.00 Lakh. Maximum of Rs.15.00 Lakhs subject to - for salaried persons - 36 months net salary - For others 3 times annual income.

SECURITY: Equitable Mortgage over property standing in the name of borrowers.

MARGIN: 50% of value property to be mortgaged.

PROCESSING CHARGES: 1.25% of the loan amount.

REPAYMENT: 28

Maximum of 84 months in EMI.

2.19 PERSONAL LOAN - XPRESS CREDIT ELIGIBILITY: Loans to employees of the leading public Sector Undertakings, Govt. Organizations, Quasi Govt. Organization and reputed Private Sector Organizations, IIT, IIMS, All Educational Institutions of National Stature. LOAN AMOUNT: Minimum Rs.10,000/Maximum 18 times NMI. (EMI/NMI percentage not to be exceed to 50%). Minimum Net Monthly Income: Rs.2,500/-

REPAYMENT: 48 EMI. PROCESSING CHARGES: 0.50% of the loan amount. CREDIT SCORING MODEL: Where check off facility is not available Minimum 60 marks to be obtained as per Credit Scoring Model for personal Scheme.

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3. CONCLUSION
This internship report demonstrates and gives full details on all the loan facilities provided by State Bank of Mysore. State Bank of Mysore P-segment products tries to cover all the needs of various types of customer and provides range of products to meet their needs.

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