TITLE

Analysis of retail loans of Bank of Baroda vis a vis

competitors









PRESENED BY
SMRITI SINGH
IMT - NAGPUR


Bank
A bank is a financial intermediary that accepts deposits and channels those deposits
into lending activities, either directly by loaning or indirectly through capital markets.
A bank links together customers that have capital deficits and customers with capital
surpluses.

Definition
The definition of a bank varies from country to country. See the relevant country
page (below) for more information.
Under English common law, a banker is defined as a person who carries on the
business of banking, which is specified as
conducting current accounts for his customers,
paying cheques drawn on him/her, and
Collecting cheques for his/her customers.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the
law in relation to negotiable instruments, including cheques, and this Act contains a
statutory definition of the term banker: banker includes a body of persons, whether
incorporated or not, who carry on the business of banking' (Section 2, Interpretation).
Although this definition seems circular, it is actually functional, because it ensures
that the legal basis for bank transactions such as cheques does not depend on how
the bank is structured or regulated.
The business of banking is in many English common law countries not defined by
statute but by common law, the definition above. In other English common law
jurisdictions there are statutory definitions of the business of banking or banking
business. When looking at these definitions it is important to keep in mind that they
are defining the business of banking for the purposes of the legislation, and not
necessarily in general. In particular, most of the definitions are from legislation that
has the purpose of regulating and supervising banks rather than regulating the actual
business of banking. However, in many cases the statutory definition closely mirrors
the common law one. Examples of statutory definitions:

"banking business" means the business of receiving money on current or
deposit account, paying and collecting cheques drawn by or paid in by
customers, the making of advances to customers, and includes such other
business as the Authority may prescribe for the purposes of this Act; (Banking
Act (Singapore), Section 2, Interpretation).
"banking business" means the business of either or both of the following:
1. Receiving from the general public money on current, deposit, savings or other
similar account repayable on demand or within less than [3 months] ... or with
a period of call or notice of less than that period;
2. Paying or collecting checks drawn by or paid in by customers.

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct
credit, direct debit and internet banking, the cheque has lost its primacy in most
banking systems as a payment instrument. This has led legal theorists to suggest
that the cheque based definition should be broadened to include financial institutions
that conduct current accounts for customers and enable customers to pay and be
paid by third parties, even if they do not pay and collect checks.

Banking activities
Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct
credit, direct debit and internet banking, the cheque has lost its primacy in most
banking systems as a payment instrument. This has led legal theorists to suggest
that the cheque based definition should be broadened to include financial institutions
that conduct current accounts for customers and enable customers to pay and be
paid by third parties, even if they do not pay and collect checks.
1. Accepting Deposit
Accepting deposit from savers or account holders is the primary function of bank.
Banks accept deposit from those who can save money, but cannot utilize in
profitable sectors. People prefer to deposit their savings in a bank because by doing
so, they earn interest.

2. Advancing Of Loans
Banks are profit oriented business organizations. So they have to advance loan to
public and generate interest from them as profit. After keeping certain cash reserves,
banks provide short-term, medium-term and long-term loans to needy borrowers.

3. Discounting of bill of exchange
Bill of exchange is a negotiable instrument, which is accepted by the debtor, drawn
upon him/her by the creditor and agrees to pay the amount mentioned on maturity.
Discounting bill of exchange is another function of modern commercial bank. Under
this, banks purchase bill of exchange from holder in discount after making some
marginal deduction in the form of commission. The banks pay the deducted value to
the holders when traders discount it into bank.

4. Cheque Payment
Banks provide cheque pads to the account holders. Account holders can draw
cheque upon bank to pay money. Banks pay for cheques of customers after formal
verification and official procedures. .

5. Remittance
Remittance is a system, through which cash fund is transferred from one place to
another. Banks provide the facilities of remittance to the customers and earn some
service charge.

6. Collection and Payment of Credit Instruments
In modern business, different types of credit instruments such as bill of exchange,
promissory notes, cheques etc. are used. Banks deal with such instruments. Modern
banks collect and pay different types of credit instruments as the representative of
the customers.

7. Foreign Currency Exchange
Banks deal with foreign currencies. As the requirement of customers, banks
exchange foreign currencies with local currencies, which is essential to settle down
the dues in the international trade.

8. Consultancy
Modern commercial banks are large organizations. They can expand their function to
consultancy business. In this function, banks hire financial, legal and market experts,
who provide advices to customers in regarding investment, industry, trade, income,
tax etc.

9. Bank Guarantee
Customers are provided the facility of bank guarantee by modern commercial banks.
When customers have to deposit certain fund in governmental offices or courts for
specific purpose, bank can present itself as the guarantee for the customer, instead
of depositing fund by customers.



RESEARCH PROJECT
TITLE
Analysis of retail loans of Bank of Baroda Vis a Vis competitors

INTRODUCTION

Types of Retail Loans
Retail loans are those loans which are given by the banks to individuals so as to
meet there personal needs, retail loans are smaller in size as compared to corporate
loans. Given below are various types of retail loans which are given by the banks -
1 Housing Loans Most individuals take housing loans and when it comes to
retail loans, housing loans is right there at the top. Banks give housing loans
to individuals so that can buy apartment or construct new house if they
already have the land.
2 Educational Loans This type of loans is given by the banks to students so
that they can pay for the tuition fees, hostel expenses, foreign education and
other such expenses.
3 Vehicle or Auto Loans This type of loans are given to individuals who are
looking for buying cars whether new or second hand, auto loans are also
given for two wheelers to individuals.
4 Personal Loans Personal loan are the loans which are given to individuals
for purposes such as marriage, traveling to abroad, loans for covering hospital
expenses and other such loans which individual may need depending on his
or her needs and situations.


ELEMENTS OF STUDY

10 major banks have been taken for this research. These include:
1. State Bank of India: SBI undoubtedly is the leading bank in India when it
comes to number of branches, ATMs, net profits, total assets managed, etc. With
an employee base of close to 3 lakh people SBI commands 20% (approx.) of the
Indian banking sector. The bank manages assets worth more than 390 billion
USD.
2. ICICI Bank: ICICI is the second in the list when it comes to quantity of assets
managed by the Bank. According to the current market cap ICICI is ahead of SBI
but behind HDFC. The bank manages assets worth 99 billion USD.
3. Punjab National Bank: PNB is the third largest bank in India. The market
capitalization of the bank is very low compared to the assets it manages.. It
manages assets worth 90.9 billion USD.
4. Bank of Baroda: BOB is the fourth largest bank in India when it comes to
managing assets. According to market cap the bank is undervalued/priced. The
bank has over 4200 branches and has a net profit of 840 million USD. The assets
managed by this bank are valued at 73 billion USD.
5. HDFC Bank: If we prepared this list according to the market cap then HDFC
would have been the number one bank in this list. Well according to assets
managed the bank is at the 5th position.
6. Canara Bank: The bank has about 3200 branches with over 4000 ATMs. The
bank employees about 44,000 people. Assets managed by the bank are valued at
61 billion USD.
7. Axis Bank: Axis bank comes 7th in the list and 3rd in the list of private sector
bank. The bank has 2225 branches, 12000+ ATMs, 40200 employees. The bank
manages assets worth 54 billion USD. The banks net profit is 1.5 billion USD.
8. Bank of India: BOI has over 4500 branches and makes a profit of 400 million
USD.
9. IDBI Bank: The bank has about 1150 branches with about 2000 ATMs. The
bank employees about 15000 people. It manages assets worth 42 billion USD.
10. Union Bank of India: The bank falls 10th in the list with about 4500 ATMs.
290 million USD in profits. It manages assets worth 13.45 billion USD.

HOUSING
LOAN



STATE BANK OF INDIA


"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer
Awards along with the MOST PREFERRED BANK AWARD in a survey conducted
by TV 18 in association with AC Nielsen-ORG Marg in 21 cities across India.
SBI Home Loans come to you on the solid foundation of trust and transparency built
in the tradition of State Bank of India.
Best Practices followed in SBI mentioned below will tell you why it makes sense to
do business with State Bank of India.
SBI Home Loans Unique Advantage
Package of exclusive benefits.
Low interest rates. Further, interest charged is on a daily reducing balance.
Low processing charges.
No hidden costs or administrative charges.
No prepayment penalties. Reduce your interest burden and optimally utilize
your surplus funds by prepaying the loan.
Over 15,350 Branches nationwide, you can get your Home Loan account
parked at a branch nearest to your present or proposed residence.
ELIGIBILITY
Minimum age: 18 years as on the date of sanction
Maximum age: 70 years. I.e. the age by which the loan should be fully repaid,
subject to availability of sufficient, regular and continuous source of income for
servicing the loan repayment.
Loan Amount:
Actual loan amount will be determined taking into consideration such factors as
applicants income and repaying capacity, age, assets and liabilities, cost of the
proposed house/flat etc. To enhance loan eligibility you have option to add:
1) Income of your spouse/ your son/ daughter living with you, provided they
have a steady income and his/ her salary account is maintained with
SBI.
2) Expected rent accruals (less taxes, cess, etc.) if the house/ flat being
purchased is proposed to be rented out.
3) Depreciation, subject to some conditions.
4) Regular income from all sources.

Security:
Equitable mortgage of the property

Margin/ LTV Ratio:
Individual Home Loan Amount Margin (Min.) (%) LTV Ratio (%)
Upto Rs. 20 Lacs 10 90
Above Rs. 20 Lacs. and upto Rs. 75 lacs 20 80
Above Rs. 75 lacs 25 75


FEES

Home Loan Amount Processing Fee w.e.f. 01.04.2014
Upto Rs. 25 lacs
0.25% of loan amount, minimum Rs. 1000/-
Above Rs. 25 lacs & upto
Rs. 75 lacs
Rs. 6,500/-
Above Rs. 75 lacs Rs. 10,000/-

ICICI HOME LOAN

ICICI Bank is a trusted companion in this journey of yours from start till end. With a
wide range of offerings, we will be able to offer you the most suitable Home loan.
Key Features:
Longer Tenure, attractive interest rates, lower EMIs
Doorstep service at your comfort
Flexible repayment options
Simplified documentation
Wide range of product to choose from
Over 246 Bank Branches pan India for servicing of your loans
Guidance throughout the process making home buying hassle free
Insurance options for your home loan at attractive premium
With a network of 2500 branches we are always close to you
Sanction approval without having selected a property
ELIGIBILITY
ICICI Bank offers Home Loans to Resident as well as Non Resident Indians
You must be at least 21 years of age on sanction of the home loan
The loan must terminate before or at 65 years of age or age of retirement,
whichever is earlier.
You must be salaried or self-employed with a regular source of income
Minimum age of co-applicant should be 18 years
How to enhance your eligibility
If your spouse is an earning member, you can make him/ her the co-applicant.
Their income will be considered to enhance the eligibility
In case of co-owners, they must necessarily be co-applicants
Loan Processing Charges
1. 0.50% - 1.00% of the loan amount or Rs. 1500/- (Rs. 2000/- for Mumbai, Delhi
& Bangalore), whichever is higher + applicable Service Tax & Surcharge
2. No prepayment charge on floating rate home loan irrespective of the source of
fund 2% of the outstanding loan amount plus applicable service tax and
surcharge on fixed rate home loan and Home plus loan.
3. 4% of the outstanding loan amount plus applicable service tax and surcharge
on Loan against property, Lease rental discounting and Non-residential
premises For one year, two year and three year fixed rate loan the
prepayment charge is 2% of the outstanding loan amount plus applicable
service tax and surcharge till the time loan is under fixed rate. Once loan
moves into floating rate there would be no prepayment charge irrespective of
the source of fund.

INTEREST RATE





PUNJAB NATIONAL BANK

PNB reaches out to you with fast, friendly and most convenient home loans under
Normal and Flexible variants having highlighting features :
Highlights
Option to choose between Floating and Fixed interest rates.
Longest Repayment period of 25 years
Flexible/graduated repayment option
No hidden charges
Quick and Fast processing
Lowest EMI of Rs.919 per lac for a 25 years loan
EMI is applicable to all existing and new customers
Avail benefit of lower EMI by shifting account with us.
Purpose
Construction or purchase of new/old house/ flat/ plot Carrying out repairs/
renovations/ additions/ alterations/ furnishing.
Eligibility
Individuals as well as Joint owners (age group of 18-65 years) having regular source
of income. Income of spouse/children/parents can also be added.

Loan Amount
For construction/addition/purchase of house/flat: - Need based.
For carrying out repairs/ renovations/ additions/ alterations: - Maximum of Rs.
25 lacs.
For furnishing of house Maximum Rs. 5 Lacs
For purchase of Land/ Plot - Maximum Rs. 50 Lacs
Disbursement
In the shape of a Term Loan
For purchase of Built-up house/ flat - In lump sum (Down Payment).
For construction of house/ under construction flat - The loan amount will be
disbursed in stages as per progress of construction/ demand by selling
agency

Margin
Construction/ purchase/ repairs/ renovations/ additions/ alterations
For Loans upto Rs.75 lac - 20%
For Loans above Rs.75 lac - 25% Land/ Plot 40%
(Charges e.g. stamp duty, registration charges and other documentation charges, if
any, paid by the borrower shall NOT be considered towards margin
money. However, Acquisition cost of Plot be considered towards Margin Money).

Fee/Charges
For loans upto Rs. 300 lacs = 0.50% of the loan amount max. of
Rs. 20,000/- + taxes
For loans above Rs. 300 lacs = Rs. 50000/- + taxes
Documentation charges of Rs. 1350/- + taxes
In addition, out of pocket expenses on actual basis shall also be borne by
prospective borrower (s) as per detail hereunder:
a) Stamp duty payable for loan agreements and mortgage
b) Advocates fee for Title Deed investigation/ Legal Search report
c) Valuers fee for valuation report
d) Credit Information report charges
e) Registration with Central Electronic Registry
f) Any other out of pocket expenses depending upon specific case.

8. Repayment
For construction/addition/purchase of house/flat - Maximum of 25 years or
borrowers attaining age of 65 years whichever is earlier (can be extended
upto the age of 70 years under banks discretion) to be repaid in equated
monthly instalments inclusive of maximum moratorium period of 18 months
(36 months in case of under constructed flats from Pvt. builders).
For carrying out repairs/ renovations/ alterations - Maximum of 15 years
inclusive of maximum moratorium period of Six months.
For Overdraft component of Flexible variant : Repayment shall be as under

INTEREST RATE



The aforesaid revised rates of interest under floating option will also be applicable in:
Existing as well as new accounts in Flexi-Housing scheme (Term Loan
component)
In existing accounts in Fin Basket scheme which stands closed.
The fixed rate of interest option of Housing Loans, disbursed on or after
01.08.2006, will be subject to reset clause of five years on all repayment
tenors except tenor upto 05 year.
Extra 0.50% rate of Interest on card rate will be charged in a/cs in respect of
3rd or subsequent house/flat. (As advised by RAMD (RBD) from time to time.)

BANK OF BARODA

Home Loan is available for:
Purchase of new / old dwelling unit.
Construction of house.
Purchase of plot of land for construction of a house.
Repaying a loan already taken from other Housing Finance Company / Bank.
Repayment period up to 30 years (floating rate option).
Terms & Conditions
In case of Salaried:
Monthly Income Modified Criteria
Up to Rs. 20,000/- 36 times of monthly
income
More than Rs.20,000/- & up to Rs. 1
lac
48 times of monthly
income
More than Rs. 1 lac 54 times of monthly
income
In case of others viz. professionals / self-employed / businesspersons etc., 5-
times of average annual income (last three years).

Margin
Loan Amount Margin
Loans upto Rs.20/- Lacs 10%
Loans above Rs.20/- Lacs upto Rs.75/- Lacs 20%
Loans above Rs.75/- Lacs 25%
As security against the loan amount, the bank will take an equitable mortgage
of the housing property and/or other suitable securities.
No Fees will be charged on part prepayment / full prepayment of the loan
amount.
The loan can be repaid in a maximum period of 30 years taken under floating
rate option subject to the period up to age of retirement in case of salaried
persons and 70 years in case of others.
Value propositions

Bank offers following benefits with home loan availed by you:
Free Personal Accident Insurance is available for stipulated tenure.
Free Credit Card (BOBCARD complementary for first year) to all Home Loan
borrowers (first borrower) with loan limit of Rs. 2/- Lacs and above.
Concession of 0.25% in rate of interest for Car Loans.
Concession of 0.50% in rate of interest for Loan for consumer durables.
Top up Loan (Baroda Additional Assured Advance AAA) can be availed 5
times during loan period.
(Minimum Rs.1/- Lac, Maximum Rs.200/- Lacs or 75% of residual value of
house property after deducting 150% of outstanding loan amount of existing
Home Loan, whichever is lower).
As per current IT provisions act Interest on loan upto Rs.1.50 lacs per annum
is exempt from income tax (Under section 23/24 (1) of the Income Tax Act).
An additional deduction of interest upto Rs.1 lac is available to persons taking
a loan for their first home upto Rs.25 lacs during March 2013 to Feb 2014.

PROCESSING FEES



INTEREST RATE


HDFC BANK

The range of Housing Finance products includes Home Loans, Home
Improvement/Renovation Loans and Home Extension Loans.
HDFC Bank brings HDFC home loans to your doorstep. Over 3 decades of exclusive
experience, a dedicated team of experts and a complete package to meet all your
housing finance needs, HDFC Home Loans, help you realize your dream.
KEY BENEFITS
Pioneer of Housing Finance in India with over 35 years of lending experience
For over 3 decades, shared the hopes and joys of 4.4 million customers who
have been nurturing the dream of home ownership
Most experienced and empowered personnel to ensure smooth & easy
processing
Transparent dealing. All charges mentioned upfront while giving you the loan
quote. No hidden charges
Counselling and advisory services for acquiring a property
Loan approval even before a property is selected
Loan from any HDFC office for purchase of home anywhere in India
Flexible loan repayment options
Free & safe document storage
Features and benefits
Home Loan:
Home loans for individuals to purchase (fresh / resale) or construct houses.
Application can be made individually or jointly.
Home Improvement Loan (HIL):
The interiors of any home reflect the personal preferences and tastes of its
owners making it imperative to constantly upgrade to keep up with changing
times. HIL facilitates internal and external repairs and other structural
improvements like Painting, Waterproofing and Roofing, Plumbing and
Electrical Works, Tiling and Flooring, Grills, Aluminium Windows, Compound
Walls and much more.
Home Extension Loan (HEL):
HEL for adding more space to your existing home for meeting the
requirements of your growing family. It is easy to extend your home anyway
you like.
Automated Repayment of Home loan EMI:
You can give us standing instructions to repay your Home Loan EMIs directly
from your HDFC Bank Savings Account, thus, saving you the trouble of
procuring, signing and tracking post-dated cheques.
INTEREST RATES




CANARA BANK

Housing loan for construction / purchase / repairs / additions / renovations of
residential house / flat including the purchase of land and construction thereon. For
taking over of the Housing Loan liability with other recognized Housing Finance
Companies, Housing Boards, Co-operative Banks, Co-operative Societies and
Commercial Banks at our prevailing low rate of interest.
Eligibility:
Salaried individuals, individuals engaged in business / professionals and self-
employed persons. NRIs are also eligible to avail loans without specific
permission of RBI.
Persons above the age of 55 years are also eligible subject to certain
stipulations of RBI.
How much you are entitled to
Canara bank finance upto:
4 years of gross salary to salaried individuals.
4 years' gross annual income to individuals engaged in business or to self-
employed persons.
For NRIs up to 2 years' gross income and selectively up to 3 years' gross
income.
Selectively loan upto 5 years' gross salary/ income also permitted
Rs.15.00 lacs for repairs / renovations.


CONTRIBUTION


INTEREST RATE
Effective from 01/01/2014, interest structure and Card rates on Housing loan
revised as under:
(Base Rate : 10.20% with effect from 01/01/2014)
Rates of interest on Housing loans, irrespective of the repayment tenor:
Upto Rs.75 lakhs Above Rs. 75 lakhs
Base Rate i.e., @
10.20% (presently)

Base Rate + 0.25% i.e.,
@ 10.45% (presently)


Interest rate structure on Housing Loans rationalized; now uniform rates of
interest across all repayment tenors.


HOUSING LOANS* ROI
Amount
Upto Rs.75 lacs BR
> Rs 75 lacs BR+0.25%

*The above rate applies to Housing Loans to Agriculturists and NRIs also.
PREMIUM HOUSING LOANS TO HIGH
NETWORTH INDIVIDUALS
BR+0.10%

CANARA HOME LOAN PLUS: BR+3.75% or ROI charged on housing loan,
whichever is higher

CANARA LAP

CATEGORY ROI
Individuals BR+3.75
Business Concerns:
Low Risk

BR+3.75
Normal Risk BR+4.00
Moderate Risk BR+4.50

PROCESSSING FEES
Nominal processing fee of 0.50% (Min Rs.1500/- and Max. Rs.10000/-) is charged.
(Waived during Retail Loan Festival period valid till 15.01.2012).



AXIS BANK

Axis Bank offers affordable and flexible housing loans that can turn your dream of
owning a home into reality.
If rising real estate prices have pushed the house you coveted beyond your budget,
Axis Banks unmatched home loans will put it within reach. The attractive interest
rates and minimal processing fees make our home finance products a first choice for
savvy buyers. In addition, features such as flexible tenures, transparent processing
and quick service have made our products stand out among the best home loans in
India.

Features of Axis Bank Home Loans
Axis Bank housing loans are designed for todays home-hunter. Our easy home
loans are rich in features and offer a number of benefits.
Attractive housing finance rates: Axis Bank offer attractive interest rates
that make your housing loans affordable and easier on your pocket every
month.
Flexible rates: Choose between fixed and floating rate options depending on
which way you think interest rates are moving.
Balance transfer facility: Not satisfied with your existing Home Loan
provider? You can transfer your Home Loan to us without any hassles.
Doorstep service: You don't have to go the bank for Home Loans; the bank
will come to your doorstep. Perfect for those leading busy lives.
Nil prepayment charges: Come into some money and want to pay off your
housing loan early? You can do that at Axis Bank without worrying about
prepayment charges.
* Valid only on floating interest rate Home Loans.
Quick and transparent processing: Special Benefits available for Premium
Banking customers.

ELIGIBILITY

A) - Salaried Individuals
Individuals in permanent service in the Government or reputed companies meet our
Home Loan eligibility criteria
Applicants should be above 24 years of age at the time of loan commencement and
up to the age of 60 or superannuation, whichever is earlier at the time of loan
maturity.

B) - Professionals
Professionals (i.e., doctors, engineers, dentists, architects, chartered accountants,
cost accountants, company secretary, and management consultants only) can apply.
Applicants above 24 years of age at the time of loan commencement and up to 65
years or less at the time of loan maturity meet our housing loan criteria.

C) - Self Employed Individuals
Any individual filing income tax returns can apply
Applicants should be above 24 years of age at the time of loan commencement and
up to 65 years or less at the time of loan maturity.

Limits on Home Loan

Minimum - Rs 3 lac

Margin

Sr. No Loan amount (Rs.) Margin
1 For Loan upto Rs. 20 Lacs 15%
2 For Loan above Rs. 20 Lacs to upto Rs. 75 Lacs 20%
3 For Loan above Rs.75 Lacs 25%


INTEREST RATE
Home loan interest rate
Sr.
No
Type Loan amount (Rs.) Base Rate +
Mark Up
Effective Rate Of
Interest
1 Floating
Rate
Loans up to Rs.75
Lac
Base Rate +
0.00%
10.25% p.a.
Loans above Rs.75
Lac
Base Rate +
0.25%
10.50% p.a.
Top Up Base Rate +
2.00%
12.25% p.a.

Base Rate - 10.25%

NISHCHINT - Home Loan with Fixed Rate of Interest
Type Effective Rate Of Interest
Fixed Rate 11.75% p.a.

Processing charges

Upto 1% of the loan amount subject to minimum of Rs.10000/-

BANK OF INDIA


BOI STAR HOME LOAN
1. 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 Maximum loan amount is Rs.500 lacs
and repayment ranges up to 30 years, with reasonable margin and nominal
processing charges. No commitment /administrative charges
2. The loan is available at very competitive rates of interest, currently available in
the industry.
3. Option for different EMI amounts for different periods during tenure of loan to
suit customers repayment capacity

SPECIAL FEATURES
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(Renewal at the
discretion of the Bank).
Life Insurance cover to housing loan borrowers , at affordable premium
against risk of death during tenure of loan under Group Insurance Scheme in
tie up with Star Union Dai-Ichi Insurance Co. Ltd. at borrowers own expenses
& option.
Loan furnishing the house/flat at a rate of interest as applicable to housing
loan under the scheme

ELIGIBILITY
Salaried employees, Professionals, Self-employed persons. Requests are also
considered from NRIs, PIOs, HUF, and Prop. Firm, Partnership firms and
corporate

QUANTAM OF LOAN

For construction/purchase of a house/flat-Rs.300 Lacs (Rs.500 Lacs in major
metros viz. Mumbai, Kolkata, New Delhi and Chennai)
Repairs/renovation/extension to house/flat Rs.50 lacs
Purchase of a plot - Rs.100 lacs
Loan for purchase of household articles along with home Loan for furnishing
the house/flat @15% of Home Loan amount Max. Rs. 5.00 lacs is offered
under Secured Personal Loan with same Rate of Interest as applicable under
Home
Loan with maximum repayment period of 10 years including moratorium period, if
any.
Note: Minimum Home Loan: For Metro/Urban Centres:-Rs. 1 Lac

INTEREST RATE
Rate of Interest
(Floating ROI-
linked banks
base rate , p.a.
at monthly
rests)

Up to Rs.75
lacs
Over Rs.75 lacs
Floating Category
Base Rate
0.25 % over Base
Rate
Up to 30 years

Note:
Fixed Rate of Interest Not
Offered
10.20 10.45


Limits
Rate of Interest for new loans
w.e.f.20.01.2014
For limits over Rs.500 lac 0.25% over Base Rate, presently 10.45% p.a.


Processing charges / other expenses

FOR INDIVIDUALS

Loan Limit Charges- One Time (inclusive of ST)
For All Loan amounts @0.25% of loan amount Min.Rs.1, 000
and Max. Rs.20,000/-

For Partnership firms & Corporate Borrowers Processing charges will be
double that of individuals.

For Rural areas Processing charges will be 75% that of applicable to individuals in
respect of loans availed by borrowers from rural areas from the Rural Branches.
Legal Expenses/Valuation Charges/Stamp Paper Charges etc., at actuals.

MARGIN
Margin
*% on pure cost of the house
excluding stamp duty,
registration , documentation
etc.
For 1st House/Flat For
Loan
upto
Rs.20
Lacs
For Loan
over Rs
20 lacs -
up to
Rs.75
Lacs:
For Loan
above Rs.75
Lacs:
15% 20% 25%
a) For 2nd or
Subsequent Home
Loan/House/Flat
b) Where
reimbursement of
loan is considered-
1st or 2nd
house/loan
25%



IDBI BANK

FEATURES
1. Assistance in property search and due-diligence of property for acquisition.
2. In-principle loan approval even before property is selected.
3. Extensive Range of Home Loan Products viz .Home Loan, Home Loan Interest
Saver, Home Loan -Top up, Home Loan - takeover facility, Home Improvement
Loan, Home Extension Loan, Home Loan - Booking Finance, Loan on second
Charge/Pari-passu charge and Home Loan-Refinance Facility.
4. Customized Home Loan Features for Salaried (Including NRI), Self Employed
Professional and Self Employed Non Professional (Business Category).
5. Already approved projects for convenience of Home Loan buyers
6. Flexible Loan Repayment Option viz. Flexible Loan Instalment Plan, Step up &
Step down repayment facility, Tranche Based EMI.
7. Broad presence in India with1200 Branches and 66 dedicated Loan
Processing Retail Asset Centres.
8. Loan from anywhere to purchase Home anywhere in India.
9. Most experienced personnel for smooth and easy loan processing.
10. Online application facility.

Maximum Loan Amount
Loan Amount Maximum Funding*
Up to Rs 20 Lakh Up to 90% of Market value/
document cost of the property,
whichever is lowest
Above Rs 20 Lakh to Up to Rs 75 Lakh Up to 80% of Market value/
document cost of the property,
whichever is lowest
Above Rs 75 Lakh Up to 75% of Market Value/
document cost of the property,
whichever is lowest


Maximum Loan Tenure
Category Loan Tenure*
Salaried Up to 30 years
Self Employed Professional Up to 20 years
Self Employed Non Professionals Up to 20 years

Eligibility
The product is available to
(1) Salaried individuals who have at the time of loan application attended the age
of 22 years and maximum age at the termination of loan should not be 70 years
subject to establishment of satisfactory repayment.

(2) Self Employed Professionals (viz.doctors, engineers, dentists, architects,
chartered accountants, management consultant, company secretary, etc.) who have
attended the age of 25 years at the time of application and maximum age at the time
of termination of loan should not be above 70 years.

(3) Self Employed Non Professionals (Businessmen) who have attended the age
of 25 years at the time of application and maximum age at the termination of loan
should not be above 65 years. Maximum age under the category may be relaxed
subjected to availability of proper succession plan of the business.






INTEREST RATE

Base Rate (BR) 10.25%p.a.
Home loans
Facility /Interest Type For all loan amounts

Home Loan (Floating) 10.25% (BR+0.00%)

Home Loan Interest Saver
(Floating)
10.40% (BR+0.15%)

Home Loan (Fixed ) for 3 to 10
years
Below
Rs. 30
lac
Rs.30 lac & above


10.75
%
(BR+0.
50%)
11.00%
(BR+0.75%)

On completion of fixed period customer will be provided with an option to continue at the then Prevailing fixed
Rate for next 3 years OR Switch to Prevailing Floating Rate.

Turnover based Loan (HL) 13.25% (BR+3.00%)(Floating)

Home Loans : Balance transfer + Top-up
Internal Top up: Maximum top-up
amount is 100% of the originally
sanctioned Home Loan. (Floating)
As per extant Home Loan rates of interest based on the combined
exposure

10.25% (BR +0%)


Balance Transfer
As per extant Home Loan rates of interest

10.25 %( BR +0%)


Top up along with Balance transfer
As per extant Home Loan rates of interest based on the combined
exposure(BT+TOP UP)

10.25 %( BR +0%)


If Top up amount is more than
100% of originally sanctioned
Home Loan.
In case Top up amount exceeds 100% of originally sanctioned Home
Loan, the additional amount would be offered at prevailing Loan Against
Property (LAP) rate.



UNION BANK OF INDIA

ELIGIBILITY
Indian citizen above 21 years
Individual, either singly or jointly with other family members viz. father, mother,
son and/or spouse, who have regular sources of income as co-applicants.
NRIs are also eligible for the home loan. Contact our nearest branch for further
details.

QUANTUM OF LOAN

Depending on repayment capacity and value of property
Maximum Rs. 30 Lakhs for Repairs.

MARGIN

20% of the total cost of the purchase/ construction of house/ flat for loans upto
Rs. 75 Lakhs
25% of the total cost of the purchase/ construction of house/ flat for loans
Above Rs. 75 lakhs to Rs. 2 Crores
35% of the total cost of the purchase/ construction of house/ flat for loans
Above Rs. 2 Crores
20% of total cost of the repairs
SECURITY
Equitable mortgage (E.M.) of the residential property
If the house/ flat proposed to be purchased is yet to be constructed or is
under construction, interim security may be required (till the period of its
completion)

INTEREST RATE


Union Bank of Indias Base Rate = 10.25% w.e.f. 6th September 2013


ANALYSIS