Name: Arpita Sengar

1
Introduction

Student profile

NAME : Arpita Sengar

CONTACT : +91-7275281979

GENDER : Female

FATHER,S NAME : Sri Ravindra Singh Sengar

MOTHER,S NAME : Smt.Kiran Singh

DATE OF BIRTH : 17-3-1992

LANGUAGES KNOWN : Hindi, English

NATIONALITY : Indian

2

Profile of organisation

The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the
bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed
the Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.
State Bank of India is an India-based bank. As of March 31, 2012, the Bank had a network of
20,193 branches, including 5,096 branches of its five associate banks. In addition to banking, the
Company, through its various subsidiaries, provides a range of financial services, which include
life insurance, merchant banking, mutual funds, credit card, factoring, security trading, pension
fund management, custodial services, general insurance (non-life insurance) and primary
dealership in the money market. Its segments include Treasury, which includes investment
portfolio and trading in foreign exchange contracts and derivative contracts;
Corporate/Wholesale Banking, which comprises lending activities of Corporate Accounts Group,
Mid Corporate Accounts Group and Stressed Assets Management Group; Retail Banking.

3

Personal Finance

State Bank of India has a variety of schemes under Personal Finance to satisfy varying needs of
the banking public. The Bank offers the following schemes with attractive rates of interest:

Housing Loan
Property Loan
Car Loan
Educational Loan
Personal Loan
Loan to Pensioners
Credit Khazana
Loan Against Shares/Debentures
Loan For ESOPS
Festival Loans
Tribal-plus scheme
EMI Calculator

Associate Banks Of SBI

SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all
use the "State Bank of" name, followed by the regional headquarters' name:
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
4

Non-banking subsidiaries
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:
SBI Capital Markets Ltd
SBI Funds Management Pvt Ltd
SBI Factors & Commercial Services Pvt Ltd
SBI Cards& Payments Services Pvt. Ltd. (SBICPSL)
SBI DFHI Ltd
SBI Life Insurance Company Limited
SBI General Insurance
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the
remaining capital), to form a joint venture life insurance company named SBI Life Insurance
company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its
headquarters in Mumbai.
Other SBI service points
SBI has 27,000+ ATMs(25,000th ATM was inaugurated by the then Chairman of State Bank
Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI group (including associate
banks) has about 45,000 ATMs. SBI has become the first bank to install an ATM at Drass in the
Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.
Major competitor
Some of the major competitors for SBI in the banking sector are ICICI Bank, HDFC Bank, Axis
Bank, Bank of India, Punjab National Bank and Bank of Baroda. However in terms of average
market share, SBI is by far the largest player in the market.
International presence.
As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches
of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg,
5

London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and
Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative
offices in Bhutan and Cape Town. It also has an ADB in Boston, USA.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches,
four in the Toronto area and three in the Vancouver area.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank:
State Bank of India (Mauritius).In 1982, the bank established a subsidiary, State Bank of India
(California), which now has ten branches nine branches in the state of California and one in
Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The
other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park,
Fresno, San Diego, Tustin and Bakersfield.
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant
Bank and received permission in 2002 to commence retail banking. It now has five branches in
Nigeria.
In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In
Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In
Indonesia, it owns 76% of PT Bank Indo Monex.
The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8
million in October 2005

6

Logo and slogan

The logo of the State Bank of India is a blue circle with a small cut in the bottom that
depicts perfection and the small man the common man - being the centre of the bank's
business.
Slogans:
1. "PURE BANKING, NOTHING ELSE"
2. "WITH YOU - ALL THE WAY"
3. "A BANK OF THE COMMON MAN"
4. "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US
Recent awards and recognitions
Best Online Banking Award, Best Customer Initiative Award & Best Risk Management
Award (Runner Up) by IBA Banking Technology Awards 2010
The Bank of the year 2009, India (won the second year in a row) by The Banker
Magazine
Best Bank Large and Most Socially Responsible Bank by the Business Bank Awards
2009
Best Bank 2009 by Business India
The Most Trusted Brand 2009 by The Economic Times
7

Most Preferred Bank & Most preferred Home loan provider by CNBC
Visionaries of Financial Inclusion By FINO
Technology Bank of the Year by IBA Banking Technology Awards
SKOCH Award 2010 for Virtual corporation Category for its e-payment solution
The Brand Trust Report: 11th most trusted brand in Hindustan.

8

Banking industry in India

The banking history of India can be divided into two major categories
Pre- independence banking history
Post-independence banking history

1.1)Pre-independence banking history
The origin of modern banking in India starts way back in the 18
th
century with the establishment
of the Bank of Hindustan in the year 1779 at Calcutta (currently known as Kolkata) under the
European Management. Bank of Hindustan was the first formal bank to be established in India.
The banking concept in India was introduced by the Europeans, but for their own benefit and
therefore another bank named general bank was setup.
On 2
nd
june, 1806 the bank of Calcutta was established in Kolkata (formerly known as
Calcutta). This was the first presidency bank to be established in India under the British raj.
Bank of Calcutta was majorly established to fund General Wellesleys wars against Maharashtra
and Tipu Sultan. Thus it did not fulfil any public needs. On 2
nd
January 1809, Bank of Calcutta
was renamed as Bank of Bengal. Following this two other banks namely bank of Bombay and
bank of madras were established on 15
th
April 1840 in Mumbai (formerly known as Bombay)
and 1
st
July 1843 in Chennai ( formerly known as Madras) respectively. The two were also
established under the British raj.
The oldest private sector bank to be established in India was the Allahabad Bank which is still
working today. This bank was established in the year 1865. This bank is still working
successfully in India for over 145 years.
Calcutta was supposed to be the most active trading port in India. Hence whatever financial
activities took place in India had its roots in Calcutta and from there they branched out to other
parts of the countries. But then in 1895 Punjab national bank was established in Lahore in Punjab
province (India was not divided by then). This bank was the first to be wholly managed by
Indians. This bank is still running successfully and is the second largest bank in India.
The first bank which was wholly owned and managed by Indians is the central bank of India.
This bank captured the swadeshi movement of the country then. This bank was the first
commercial bank of India.
And then in the year 1934, on the recommendation of Hilton-young commission the reserve bank
act was passed. The reserve bank was established on 1
st
april, 1935, with an initial share capital
worth 5crore with share dividend on 5lakh rs.100 share dividend.
9

It was largely an evolutionary development spanning through a period from 1770 to 1935. But,
the initial impetus behind establishment of the first government-sponsored bank in Europe
generally related to financial advantages. Governments felt that they could obtain from support
of such bank. There was no intention that they would undertake the functions of a modern central
bank, which included discretionary monetary management on the one hand and regulation and
support of the banking system on the other.

1.2) Post- independence history of Indian banking industry
Immediately after the independence, the partition of India in 1947adversely affected the
economies of Punjab and west-Bengal by paralyzing banking activities for months. With end of
British rule in India marked the end of a regime of the Laissez-faire for the Indian banking
sector.

The Government of India initiated measures to play an active role in the economic life of the
nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a
mixed economy. To streamline the functioning and activities of commercial banks, the
government of India came up with the Banking Companies act, 1949. The Reserve Bank of
India, Indias central banking authority, was nationalized on January 1, 1949 under the terms of
the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. The Reserve Bank of India
was vested with major powers for the supervision of banking inn India as he central banking
authority.

The Banking Regulation Act also provided that no new bank or branch of an existing bank could
be opened without a license from the RBI, and no two banks could have common directors.

During those days, the general public had lesser confidence in Banking. As an aftermath, the
deposit mobilization process was very slow. Moreover, the savings bank facility provided by
postal department was considered comparatively safer than banks, and funds were largely given
to traders.

Framework of study
Introduction

Home is an integral part of an individual, who since his / her birth and childhood, dreams to have
living space of his / her own. Once in a lifetime investment requires loan to accomplish it and
that is how the home loan comes into scheme of things. Buying a home is dream for everyone.
Owing to the rising price of properties, it has almost become impossible for an average earning
person to buy a home on a lump sum payment.
Therefore, the concept of home loan has come in existence. There are plethora of housing
finance companies and equal number of banks that offer home loans. The task of selecting one
10

company and one offer for home loan amidst the thousands available options have become a
very complex task owing to the burgeoning housing finance market in the country. Apart from
this, there are intricate business jargons and Technicalities that make this task more difficult. In
this study, I propose to give the basic information of home loan technicalities, so that when a
person applies for the home loan, he / she can understand the basics and help themselves remain
away from the duping elements in the market.

Importance of Home Loan
1. The need for home loans arises not because property prices are heading upwards all the
time but because home loans make great sense from a long-term savings perspective. Not
only are home loans a handy tool for the common man to own a roof over his head but
they also help save money in the long run.

2. With skyrocketing real estate prices, people are increasingly opting for housing loans to
acquire their dream home. Interest rates are coming down all the time and the banks and
the housing finance companies are literally falling over each other to lure the prospective
home-seekers.

3. Notwithstanding the tax breaks and generous lending rates, a lot of people still cannot
arrange resources for the down-payment, which comes out to be at least 15 per cent of the
property value. Taking cognizance of the situation, Banks are coming up with home loan
products called zero down payment loans wherein 100 per cent funding is provided for
select properties. These lucrative offers are other major reasons for why people are opting
for loans.

4. Even if one can afford to buy a home with one's own money, home loans should be
availed because they act as good savings instrument. According to industry estimates, the
long term average return in investing in a home is about 20% p.a. while the average cost
of borrowing funds in the market today is about 7% p.a. (considering all tax breaks).

5. For salaried employees, housing loans are the best way to avail of tax benefits. Many
people simply go for the home loans in order to avail these benefits. Interest payments up
to 1.5 lakh on housing loans aredeductible from the taxable income and there is a further
deduction oftaxable income maximum up to ` 1 lakh against repayment of
principalportion per annum. In case a person stays in a rented house, the cost of the loan
will be nearly zero per cent since he will be saving a decent amount on rent.

11

What is home loan?

There are different types of loan present in the market and home loan is one of the. In lay man
language, a home loan is simply taking money from a bank or a financial company for buying a
new house on a fixed interest rate and for a specific period of time. Few years back, this
definition was enough to define the meaning of home loan but now as the competition has
increased in the banking sector, the definition and meaning of home loan has changed
completely. Now, home loan has broader meaning and offers you loan for your even small need
regarding your home. To understand this concept better, let us have a look on the different types
of home loans available in the market.

Types of home loans

There are different types of home loan available in the market. Basically, we can divide it in the
following major categories-

1. Home purchase loan

This is the basic type of home loan which is offered by every bank. Home purchase loans
are meant for those people who are planning to buy a new house. Most of the bank offers
about eighty percent of the actual cost of the house in the form of loan. In other words, if
the cost of your house is Rs.100, than most of the bank will assist you with a loan
amount of around Rs. 80. So, you have to pay only Rs. 20 from your own pocket at the
time of purchasing the new house.

2. Home construction loan

Most of the people think that what if I don't want to purchase a house and instead I want
to construct it according to my plan? For those people home construction loan is the
solution. Only thing you have to do is to just made a roughly estimate of the cost of
construction of your home and then to apply for the same. Rest will be done by your
bank or financing company. Experts from the loan providing authority will analyse your
application and intimate you about the approval or disapproval of the same.

3. Home improvement loan

Do you own an ancestral house and want to renovate it but lacks the fund? Then you
don't have to worry as home improvement loan is the perfect solution for your problem.
These are meant for persons like you only who already own a home but want to repair it.

12

4. Home extension loan

Do you love to be in the joint family but the space of your already owned home does not
allow you the same? Then, you need not to worry, home extension loans are meant for
you only. Home extension loans are given to those customers who own their house but
want to extend it like another bedroom, dining hall etc.

5. Home conversion loan

This is also a very great home loan facility provided by some banks. Home conversion
loans are given to those customers who already have a financed home and wishing to
own another house.Home conversion loans provide you the option of the transfer of your
already taken loan to the new house and also includes the extra amount that you have to
pay. The best thing is that you don't have to pay the amount of your previous taken home
loan instead it will be included in the loan amount of your new house. The only thing
that bank will ensure is that you are capable of paying the increased loan amount.

6. Land purchase loan

This type of loan can also be included in the home loan if you are planning to buy a new
land for the construction of your dream house. Some banks also offer the land purchase
loans for the purpose of investment.

7. Bridge loan

Are you planning for shifting to a new house but not getting the buyer for your existing
house? Then, you don't need to worry about this as bridge loans are the mere solution for
your problem. The bridge loans help you by financing your new home until you get the
purchaser of your old house.

13

SBI Home Loans Unique Advantage
Package of exclusive benefits.

Low interest rates. Further, we charge interest 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 13,700 branches nationwide, you can get your Home Loan account parked at a
branch nearest to your present or proposed residence

Features
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:
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.
Regular income from all sources.
Depreciation, subject to some conditions.
14

Security
Equitable mortgage of the property

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

*LTV ratio - Loan to value ratio.

Documents
List of papers/ documents applicable to all applicants:
Completed loan application
3 Passport size photographs
Proof of identify (photo copies of Voters ID card/ Passport/ Driving
licence/ IT PAN card)
Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/
Property tax receipt/ Passport/ Voters ID card)
Proof of business address for non-salaried individuals
Statement of Bank Account/ Pass Book for last six months
Signature identification from present bankers
Personal Assets and Liabilities statement
15

For guarantor (wherever applicable)

Personal Assets and Liabilities Statement

2 passport size photographs

Proof of identification as above

Proof of residence as above

Proof of business address as above

Signature identification from his/her present bankers

Additional documents required for salaried persons

Original Salary Certificate from employer

TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly
acknowledged by IT Deptt.

Additional documents required for Professionals/self- employed/ other IT
assesses:

Acknowledged copies of three years I.T. returns/ Assessment Orders.

Photocopies of challans evidencing payment of Advance Income Tax.

16

Takeover Of Home Loans

1. Whether Home Loan can be taken over from the following Institutions?
Scheduled Commercial Banks (SCBs);
Private and Foreign Banks;
Housing Finance Companies (HFCs) registered with National Housing Bank
(NHB);
Borrowers employers if they are Central/State Govts. or their undertakings
or Public Sector Undertakings,
YES, subject to the following:-
Borrower should satisfy the eligibility criteria for availing Home Loan as per
the Banks instructions.
The borrower should have serviced interest and/or instalment of the existing
loan regularly, as per the original terms of sanction.
The borrower has valid documents evidencing the title to the house/flat.

2. Whether take over with sanction of Higher Loan Amount & extended Repayment
Period is possible?
Yes. Based on the merits of the case and requirements/ eligibility of the borrower, the
Bank may sanction an amount higher than the amount taken over from other bank/
financial institution forpurposes of renovation/ extension/ furnishings. Similarly extended
repayment period may be sanctioned provided that at all times the criteria regarding
maximum permissible finance and security margin under the Bank's scheme are not
diluted.

3. What is the procedure for Take Over?

The borrower should address a letter to the bank/ financial institution from whom he has
availed the loan asking them to deliver, immediately upon receipt of the loan amount, the
title deeds and other securities, if any, direct to our lending branch;
The borrower should give to the branch a request letter for paying to his existing lending
bank / financial institution the outstanding amount of his loan by debit to his loan
account;
17

The borrower must give an advice of the actual outstandings (with up-to-date interest) in
the loan account from the other bank/ financial institutions;
The statement of Account for the entire period of loan or for the last 10/12 months where
the loan has run for a longer period;
Confirmation letter from the financing Bank that they have created an equitable mortgage
over the property.

4. What are the documents required for availing the loan?

Disbursal must be effected only subject to the above information being found satisfactory
and completion of formalities as regards-
Agreement to create Mortgage,
Power of Attorney in the favor of the Bank authorizing the Bank to create equitable
mortgage on the borrowers behalf.
Interim security (Ex: Bank Deposit Receipts, LIC Policies, etc) and the security obtained
in the interim period will be released after receipt of the title deeds then the other Bank
and creation of a valid equitable mortgage subsequent to verification of the borrower's
title to the property.
Required loan documents.

5. Whether Pre-payment penalty is funded?
Yes. Total loan quantum, will however, continue to be determined by eligibility criteria
based on income, EMI/NMI ratio, LTV ratio etc. applicable to Home Loans scheme.
6. Whether takeover of Home Loan with Top up loan is permitted?
Yes. Home Loan with top up loan can be taken over subject to Maximum LTV of 75 % and
fulfilment of other terms and conditions of takeover. Processing fees for such takeover will be
0.25% of the Consolidated loan amount taken over with subject to minimum of Rs 1000/- and
maximum of Rs 10,000/-.

18

Home loans Rates Of SBI
(With effect from 04.02.2013)

**All Rate are floating only

(Base Rate= 9.70% p.a.)

Loan Amount Linkage with Base Rate
over the tenor of the loan
Effective Rate
UptoRs. 30.00 lacs 0.25% above Base Rate 9.95% p.a.
Above Rs. 30.00 lacs 0.40% above Base Rate 10.10% p.a.
No fixed rate option in any limit bracket.

19

Comparison Between Different Banks

Bank Name
Floating
Interest rate
Per lac EMI Processing Fee
Prepayme
nt
Charges
%
Change
in last 6
mths
State Bank
Of India
9.95% Rs.962 Up to 25 lacs :
0.125% of loan
amount minimum
Rs.1000/-
25-75 lacs :
Rs.3,250/-
75 & above : 5,000/-
Nil
1.97%

ICICI Bank Scheme I
:10.15%
(Fixed 1 yr)
Scheme II :
10.15%
(Fixed 2yrs)
Scheme III :
10.50%
(Fixed 3yrs)
Scheme I
:Rs.975
(Fixed 1 yr)
Scheme II :
Rs.975
(Fixed 2yrs)
Scheme III :
Rs.998
(Fixed 3yrs)
0.50% of loan
amount upto 1 crore
N.A
Scheme
I
:0.98%
(Fixed
1 yr)
Scheme
II :
same
(Fixed
2yrs)

20

then 10.15% then Rs.975
Scheme
III :
same
(Fixed
3yrs)
then
0.98%

HDFC Ltd 10.15% Rs.975 0.5% or maximum
10,000+service tax
(12.36%)
No
prepaymen
t charges
shall be
payable for
partial or
full
prepaymen
ts
irrespective
of the
source
N.A
HSBC Bank 10.50% -
10.75%
Rs.998 -
Rs.1015
1% of the loan
amount applied for,
subject to a minimum
of Rs 10000 plus
service tax. This fee
is payable on
Nil N.A
21

application and is not
refundable
LIC
Housing
Scheme I :
10.25%
(Fixed for 2
yrs)
Scheme II :
10%(Fixed
for 3 yrs)
Scheme III :
10.75%(Fixe
d for 10 yrs)
Scheme I :
Rs.982
(Fixed for 2
yrs)
Scheme II :
Rs.965
(Fixed for 3
yrs)
Scheme III :
Rs.1015
(Fixed for
10 yrs)
Up to 50 lacs :
10,000 +(Service tax)
50 lacs& above :
15,000 +(service tax)
Nil
Scheme
I :
4.65%
Scheme
II :
6.54%
Scheme
III :
1.83%

AXIS Bank 10.25%
(Upto 25
Lacs), then
10.50%
Rs.982
(Upto 25
Lacs), then
Rs.998
1% of the Loan
Amount
Nil N.A
IDBI 10.25% Rs.982 Up to .50%of loan
amount
(Rs 2500 to be
collected at login and
balance at the time of
sanction )
If Balance
Transfer
then 2%
Otherwise
Nil
No
Change
22

PNB
Housing
Finance
10.50% (For
Salaried/SE
P), 11%
(SENP)
Rs.998 (For
Salaried/SE
P), Rs.1032
(SENP)
0.5% NIL No
Change
ING Vysya 10.75% Rs.1015 0.5% of the loan
amount
NIL N.A
Standard
Chartered
9.99%
(Upto25Lacs
), then
10.15%-
10.25%
Rs.964
(Upto25Lacs
), then
Rs.975 -
Rs.982
Rs.7500/- + Service
tax
NIL No
Change
Citibank 9.75% -
10.25%
(Upto
25Lacs),
then 10% -
10.50%
Rs.948 -
Rs.982
(Upto
25Lacs),
then Rs.965
- Rs.998
0.25% or 5,000 +
12.36%( service tax)
NIL N.A
Deutsche
+Bank
10.50% Rs.998 12000 + Service Tax Nil N.A
DHFL 10.75% Rs.1015 1% for Salaried &
1.5% for SENP
NIL
2.27%

India Bulls 10.15%
(Upto
25Lacs),
Rs.975
(Upto
25Lacs),
Up to 30 lacs
5,000+12.36%(Servi
ce tax)
NIL N.A
23

then 10.75% then
Rs.1015
30 lacs& above :
15,000+12.36%(Serv
ice tax)
Federal
Bank
10.48% Rs.997 10,000 + Service Tax N.A
2.24%

Allahabad
Bank
10.20%
(Upto
25Lacs),
then 10.45%
Rs.978
(Upto
25Lacs),
then Rs.995
0.50% of loan
amount, Maximum
Rs. 10,000/-
NIL N.A
Bank of
Maharastra
10.55%
(Upto
25lacs), then
10.75%
Rs.1002
(Upto
25lacs), then
Rs.1015
0.50% (Max. Rs.
50,000/-)
Nil
2.38%

Central
Bank of
India
10.25% Rs.982 0.50% of the loan
amount subject to
maximum of
Rs.20,000/-
Nil
2.38%

Corporation
Bank
10.25% Rs.982 0.50% of Loan
amount
(Max.Rs.50,000/-)
NIL
2.38%

Bank of
India
10.25% Rs.982 0.25% of loan
amount.
Min.Rs.1,000 and
Nil
2.38%

24

Max. Rs.20,000
Union Bank
of India
10% Rs,965 Processing charges
are 0.50% of the loan
amount subject to
maximum of Rs.
15,000
NIL
2.44%

United Bank
of India
10.75%
(upto 25
lacs) then
10.55%
Rs.1015
(upto 25
lacs) then
Rs.1002
0.50% of the loan
amount
N.A N.A
UCO Bank 10.20% Rs.978 0.5% of the loan
amount, minimum
Rs.1500/- &
maximum Rs.
15000/-
NIL N.A
Bank of
Baroda
10.25% Rs.982 Loan upto Rs.30
Lacs - 0.50%
(Minimum
Rs.5,000/-)
Above 30 Lacs -
0.40% (Min.
Rs.15,000/- & Max.
Rs.50,000/-)
N.A. N.A
Canara 10.45% Rs.995
2.79%

25

Bank
Oriental
Bank of
Commerce
10.25% Rs.982 0.50% of the loan
amount, subject to
maximum of Rs.
20000/- plus service
tax
NIL No
Change
Kotak Bank 10.75% Rs.1015 0.25% - 0.5% 2% on
Balance
transfer
else NIL
N.A
Dena Bank 10.30% Rs.985 0.50% of sanctioned
limit
N.A
1.90%

Punjab
National
Bank
10.25% Rs.982 N.A
First Blue
Home
Finance
10.25% (for
Salaried /
SEP),
10.75% (For
Self
Employed)
(Upto
25Lacs),
Then
Rs.982 (for
Salaried /
SEP),
Rs.1015
(For Self
Employed)
Salaried: Up to 30
lacs :7300
30 - 75 lacs : 11800
75 lacs& above :
15,000 + service
tax(12.36%)
Nil N.A
26

10.75% (for
Salaried /
SEP),
11.25% (For
Self
Employed)
Vijaya Bank 10.50% Rs.998 0.25% of loan
amount. Maximum
Rs.10000. Exclusive
of Service Tax
N.A N.A
Syndicate
Bank
10.25% Rs.982 upto Rs.25 lacs -
0.25% (Min Rs 1000
- Max Rs 5000)
26 lacs to 75 lacs -
0.55% (Max.Rs.500/-
)
above Rs.75 lacs -
0.55% (Max
Rs.10000/-)
N.A
2.38%

Indian
Overseas
Bank
10.25% Rs.982 A flat rate of 0.58%
of the loan amount-
maximum of Rs.
10,190/- There is no
hidden charge. This
is subject to change
N.A N.A
27

\
from time to time
without prior
intimation.
Reliance 11.50% -
11.75%
Rs.1066 -
Rs.1084
0.75% of loan
amount
NIL N.A
Developmen
t Credit
Bank
11.50% Rs.1066 1% Nil N.A
State Bank
of
Travancore
10.25%-
10.50%
Rs.982 -
Rs.998
Processing fees
stands reduced
by50% of normal
charges during the
campaign period
NIL N.A
Tata capital
Housing
Finance ltd
10.75% Rs.1015 0.5 to 1% off the
loan amount.
N.A N.A
Dhanalaksh
mi Bank
Scheme I:
11.50%
(Fixed for 1
yr), Then
12%
Scheme II:
Scheme I:
Rs.1066
(Fixed for 1
yr), Then
Rs.1101
Scheme II:
1% + service tax N.A N.A
28

12% Rs.1101
Indian Bank 10.20% Rs.978 Nil Nil N.A

29

Market Segmentation
Market segmentation is a marketing strategy that involves dividing a broad target market into
subsets of consumers who have common needs, and then designing and implementing strategies
to target their needs and desires using media channels and other touch-points that best allow to
reach them.
Criteria for segmenting
An ideal market segment meets all of the following criteria:
It is possible to measure.
It must be large enough to earn profit.
It must be stable enough that it does not vanish after some time.
It is possible to reach potential customers via the organization's promotion and
distribution channel.
It is internally homogeneous (potential customers in the same segment prefer the same
product qualities).
It is externally heterogeneous, that is, potential customers from different segments have
different quality preferences.
It responds consistently to a given market stimulus.
It can be reached by market intervention in a cost-effective manner.
It is useful in deciding on the marketing mix.

30

Methods for segmenting consumer markets
Geographic segmentation
Marketers may segment according to geographic criterianations, states, regions, countries,
cities, neighborhoods, or postal codes. The geo-cluster approach combines demographic data
with geographic data to create a more accurate or specific profile. With respect to region, in rainy
regions merchants can sell things like raincoats, umbrellas and gumboots. In hot regions, one can
sell summer wear. In cold regions, someone can sell warm clothes. A small business commodity
store may target only customers from the local neighborhood, while a larger department store
can target its marketing towards several neighborhoods in a larger city or area, while ignoring
customers in other continents.
Psychographic segmentation
Psychographics involves using sciences like psychology and demographics to better understand
consumers. Psychographic segmentation divides consumers according to their lifestyles,
personality, values and social class. Consumers within the same demographic group can exhibit
very different psychographic profiles.
Behavioral segmentation
Behavioral segmentation divides consumers into groups according to their knowledge of, attitude
towards, use of or response to a product.
Segmentation by occasions
Segmentation according to occasions relies on the special needs and desires of consumers on
various occasions - for example, for products for use in relation with a certain holiday. Products
such as Christmas decorations or Diwali lamps are marketed almost exclusively in the time
leading up to the related event, and will not generally be available all year round. Another type
of occasional market segments are people preparing for a wedding or a funeral, occasions which
31

only occur a few times in a person's lifetime, but which happen so often in a large population that
ongoing general demand makes for a worthwhile market segment.
Segmentation by benefits
Segmentation can take place according to benefits sought by the consumer or according to
perceived benefits which a product/service may provide.

32

Target market
A target market is a group of customers that the business has decided to aim its marketing
efforts and ultimately its merchandise towards. A well-defined target market is the first element
to a marketing strategy. The marketing mix variables of product, place (distribution), promotion
and price are the four elements of a marketing mix strategy that determine the success of a
product in the marketplace
Strategies for Reaching Target Markets
Marketers have outlined four basic strategies to satisfy target markets: undifferentiated
marketing or mass marketing, differentiated marketing, concentrated marketing, and
micromarketing/ nichemarketing.
MASS MARKETING: - Mass marketing is a market coverage strategy in which a firm
decides to ignore market segment differences and go after the whole market with one
offer. It is the type of marketing (or attempting to sell through persuasion) of a product to
a wide audience. The idea is to broadcast a message that will reach the largest number of
people possible. Traditionally mass marketing has focused on radio, television and
newspapers as the medium used to reach this broad audience.
DIFFERENTIATED MARKETING: - A differentiated marketing strategy is one
where the company decides to provide separate offerings to each different market
segment that it targets. It is also called multisegment marketing and as is clearly seen that
it tries to appeal to multiple segments in the market. Each segment is targeted uniquely as
the company provides unique benefits to different segments. It increases the total sales
but at the expense of increase in the cost of investing in the business.
CONCENTRATED MARKETING: - This marketing is a strategy which targets very
defined and specific segments of the consumer population. It is particularly effective for
small companies with limited resources as it does not believe in the use of mass
production, mass distribution and mass advertising. There is no increase in the total
Profits of the sales as it targets just one segment of the market.
33

The psychology of target marketing
A principal concept in target marketing is that those who are targeted show a strong affinity or
brand loyalty to that particular brand. Target Marketing allows the marketer / sales team to
customize their message to the targeted group of consumers in a more focused manner.
Research has shown that racial similarity, role congruence, labeling intensity of ethnic
identification, shared knowledge and ethnic salience all promote positive effects on the target
market. Research has generally shown that target marketing strategies are constructed from
consumer inferences of similarities between some aspects of the advertisement (e.g., source
pictured, language used, lifestyle represented) and characteristics of the consumer (e.g. reality or
Desire of having the represented style). Consumers are persuaded by the characteristics in the
advertisement and those of the consumer.

34

Our Target Market- Lucknow
(For Takeover Of Housing Loans)

35

Introduction To Lucknow
Lucknow is the capital city of the state of Uttar Pradesh in India. This metro city is the
administrative headquarters of Lucknow District and Lucknow Division. Lucknow has always
been known as a multicultural city and flourished as a cultural and artistic capital of North India
in the 18th and 19th centuries and as a seat of power of Nawabs. Today it continues as an
important centre of education, commerce, aerospace, finance, pharmaceuticals, technology,
design, culture, tourism, music and poetry. Lucknow ranked 6th among all the cities in India for
fastest job-creation. It is the largest city of Uttar Pradesh and after Delhi the second largest metro
of North and Central India and the 11th largest city of India.
Lucknow stands at an elevation of 123.45 metres above sea level and covers an area of
689.1 km
2
. It is surrounded on the eastern side by District Barabanki, on the western side by
district Unnao, on the southern side by Raebareli and on the northern side by Sitapur and Hardoi
districts. The city is on the northwestern shore of Gomti river, which flows through it. Lucknow
is accessible from every part of India through air, rail and road. It is directly connected with New
Delhi, Patna, Calcutta, Mumbai, Varanasi, Bangalore, Thiruvananthapuram and other major
cities by Amausi airport. The Union Cabinet approved granting of international airport status to
Lucknow. The Lucknow airport is suitable for all-weather operations and can provide parking
facility up to 50 aircraft. At present, Air India, Jet, GoAir, IndiGo and SpiceJet are operating
domestic flights from and to Lucknow.
As the seat of the government of Uttar Pradesh, Lucknow is the site of VidhanSabha, the High
Court (Allahabad's bench) and numerous government departments and agencies.Since May 1,
1963, Lucknow is the headquarters of the Central Command of the Indian Army prior to this it
was headquarters of Eastern Command. Lucknow has several educational and research
organisations like IIM Lucknow, Central Drug Research Institute, Indian Institute of Toxicology
Research, National Botanical Research Institute, IET Lucknow, Dr. Ram ManoharLohia
National Law University, Sanjay Gandhi Post Graduate Institute of Medical Sciences and King
George Medical College. It is the location of many social and cultural institutions of national
significance, such as the Kathak, Khayal, Nawabs and Classical music. It is the birthplace of
British pop star Sir Cliff Richard,the great Indian musician Naushad Ali, Indian playback singer
36

TalatMahmood, the founder of the Hindi Theatre Movement and founder-director of Bhartendu
Academy of Dramatic Arts:RajBisaria, film-maker Muzaffar Ali and the resident city of Subrata
Roy, the founder and chairman of the Sahara India Pariwar. Other famous people with close
links to Lucknow include Urdu poet KaifiAzmi, JavedAkhtar who spent his formative years here
and former Indian Prime Minister AtalBihari Vajapayee who had Lucknow as his constituency.

37

Areas covered For The Project
Apartments

1. Indraprastha Estate Apartment : Opp - I.T.College, Faizabad
Road Lucknow
2. Anupurna Apartment : 1, AcharyaNarendradev
Marg, Vivekanandapuri, Mahanagar
Colony, Lucknow, Uttar Pradesh
226007
3. Bloom Foundation Apartment : Near I.T College Faizabad
Road Lucknow
4. Gyan Ganga Apartment : Near I.T College Faizabad
Road Lucknow

5. Goel Flat : Near I.T College Faizabad
Road Lucknow
6. Royal Palace : Near I.T College Faizabad
Road Lucknow

38

7. MordernAliganj Enclave : ChandganjGandrenAliganj
Lucknow
8. Chandganj Apartment : ChandganjGandrenAliganj
Lucknow
9. Gems Court : ChandganjGandrenAliganj
Lucknow
10. NiralaNagar Apartment : Nirala Nagar Lucknow

Individual Areas
1. Aishana
2. Aliganjsec.j
3. Alambagh
4. Milani University Road
5. Pashupalan colony.

39

Objective Of The Project

1. To collect data from the private or government body about the housing loan.
2. To spread the awareness about the bank new interest rate for housing loan.
3. To influence the person for takeover of their loan previous loan into current interest rate
of SBI.
4. To safeguard the interest of public from hidden charges , high interest rate.
5. To help the bank in increasing their market shares.
6. To help the people for easily communication from the workforce.
7. Help the public to know about procedure for availing the loan.

40

Limitation Of The Study

Initially we were not allowed to enter the apartments. Thereafter a SBI trainee card was
provided to us which solved the problem to some extent.

The time when we conducted our survey was from 10 A.M to 4 P.M and by this time the
working people of the house has already left for their offices or shops. At times it became
difficult to meet the intended person.

The survey was confided to some specific areas of Lucknow , it does not represent the
city as a whole.

41

Survey Format
(Existing Units)

Name of the apartment
Building / Residential Colony

Address

Builder s Type Private or
Govt, body
(Please Specify)

Person Contacted
Address

Contact No. & emailID
Profession
Income Group
Profession Taken On
Bank From which Finance Was
Availed

Amount /
Year of loan availed

42

Rate of Interest
Do you know SBI Home Loan

-Lowest EMI i.e. .Rs.874/-per lac
-Longest repayment period -30
years
-Lowest Intt. Rates 9.95%p.a.
-Processing Charges only Rs.
10001-per Housing Loan
-No Hidden Charges

Would you like to switch over
your loan to SBI

Survey carried out by

Mr / Mrs.

43

Methodology
Survey research
Is often used to assess thoughts, opinions, and feelings. Survey research can be specific and
limited, or it can have more global, widespread goals. Today, survey research is used by a variety
of different groups. Psychologists and sociologists often use survey research to analyze
behaviour, while it is also used to meet the more pragmatic needs of the media, such as, in
evaluating political candidates, public health officials, professional organizations, and
advertising and marketing directors. A survey consists of a predetermined set of questions that is
given to a sample.
.
With a representative sample, that is, one that is representative of the larger
population of interest, one can describe the attitudes of the population from which the sample
was drawn. Further, one can compare the attitudes of different populations as well as look for
changes in attitudes over time. A good sample selection is key as it allows one to generalize the
findings from the sample to the population, which is the whole purpose of survey research.
Methods
There are five main methods of survey research: mail surveys, in-person interviews, telephone
interviews, and internet survey:
1. Mail Surveys
Mail surveys are sent to a reselected sample of people, with instructions on how to fill out the
survey and return it enclosed. It has historically been one of the cheapest and most efficient
methods of survey distribution. Because the survey is not administered by a researcher, there is
no problem of interviewer bias, and because the survey is taken in private with the assurance of
anonymity, there is likely to be less social desirability bias and discomfort talking about private
subjects. However it is not without drawbacks: because the survey is self-administered,
participants cannot ask for clarification, and there is no way to definitely control the order the
questions are answered in. Also, many participants will not fill out the survey, either because
they have poor literacy or vision, or simply cant be bothered. In addition, this group of people is
not an equal distribution of the sample, so the sample may become less representative than it was
44

intended to be. To guard against sample bias, many institutions try to use personal touches such
as addressing materials to the participants name rather than "To Resident," and by making the
surveys easy and interesting.
2. Personal Interviews
Personal interviews are conducted by an associate of the researcher, and they usually take place
either at a research facility, their home, or a neutral, public place
.
These interviews have more
flexibility than a paper survey, because, for instance, the interviewer can skip irrelevant
questions, and both the interviewer and respondent can ask for clarification. The interviewer can
also control the order of the questions if that is important. There also tends to be a higher
response rate than with mail surveys because people are less likely to say no to a person than to
throw away a paper. However, meeting and interviewing all participants in person is both
expensive and time consuming. There is also the problem of interviewer bias: that either the
interviewer will write down only part of the answer or change it to fit their interpretation, or that
they will ask leading questions. Its important to train interviewers not to do this.
3. Telephone Interviews
Interviews can also be administered by telephone. This reduces both cost and time from doing
them in person, and means a wider population can be reached for sampling, including people far
from the research base and people who work during the day
.
There can be problems with the
breadth of population available by phone. In 2000, it was reported that 97% of all United States
households have a telephone, so in many countries, the unavailable population is tiny. Also, with
random-digit dialing, unlisted number are available to be sampled. There are a few problems:
people of a higher socioeconomic status may have multiple phone numbers and therefore be
overrepresented in a random-digit survey. People also have the ability to screen calls, and
participants who answer a cell phone in the middle of the workday may be less likely to answer a
long survey.
45

4. Internet Surveys
Since the popularity of the internet, using it to distribute surveys cheaply and easily has become
more and more common
.
Its easy to get many responses from a wide variety of demographic,
and thanks to special-interest chat sites and message boards, its easy to poll people that fit a
certain profile, such as cancer survivors or comic book fans. Unfortunately, there are still sample
bias problems as not everyone has access to the internet. There is no way at the moment to take a
random sample of all internet users. Another problem is that because researchers cannot control
the survey environment, its impossible to tell whether participants are taking the survey
seriously or frivolously, answer the questions of confused participants, or be sure that a single
individual isnt taking the survey multiple times.
5. Questionnaires
Questionnaires are the most commonly used tool in survey research. However, the results of a
particular survey are worthless if the questionnaire is written inadequately..Questionnaires
should produce valid and reliable demographic variable measures and should yield valid and
reliable individual disparities that self-report scales generate

***We adopted telephonic and individual questionnaire for making our survey successful.

46

Composing a questionnaire
Six steps can be employed to construct a questionnaire that will produce reliable and valid results

First, one must decide what kind of information should be collected

Second, one must decide how to conduct the questionnaire

Thirdly, one must construct a first draft of the questionnaire

Fourth, the questionnaire should be revised

Next, the questionnaire should be pretested

Finally, the questionnaire should be edited and the procedures for its use should be
specified

Order of questions

Survey researchers should carefully construct the order of questions in a questionnaire for
questionnaires that are self-administered, the most interesting questions should be at the
beginning of the questionnaire to catch the respondents attention, while demographic questions
should be near the end Contrastingly, if a survey is being administered over the telephone or in
person, demographic questions should be administered at the beginning of the interview to boost
the respondents confidence

47

Some Examples Of Survey Conducted By Our Team

Builiding / Residential Colony
Aliganj sector B
Address

L 1/76, secB,Aliganj ,lko.
Builder s Type Private or Govt, body
(Please Specify)
Private body

Person Contacted Lilna Singh
Contact No. &emailid 9415763310
Profession Business
Income Group Middle
Profession Taken On
Bank From which Finance Was Availed SBI bank
Amount /
30 lac.
Rate of Intrest 10%

-Longest repayment period -30 years
-Processing Charges only Rs. 10001-per Housing
Loan
-No Hidden Charges

Would you like to switch over your loan to SBI
Yes, want to switch over

48

Vindrawan colony
Address

Vindrawancolony ,lko.
(Please Specify)
Private body
Person Contacted P.Trivedi
Contact No. &emailID 9415115662
Profession Salaried
Income Group Middle
Profession Taken On
Bank From which Finance Was Availed SBI (main branch)
Amount /
26 lac.
Rate of Intrest 10%

Loan
-No Hidden Charges

Would you like to switch over your loantto
Yes, want to switch over

Modern Enclave AliganjAparetment
Address

C-4 Modern Enclave chandganj garden Aliganj
Apartment lko.
49

(Please Specify)
Private body
Person Contacted Rajiv Gupta
Profession Business
Income Group Middle
Profession Taken On
Bank From which Finance Was Availed Bank of India
Amount /
60 lac.
Rate of Intrest 10.5%

Loan
-No Hidden Charges

Yes , want to switch over

Modern Enclave Aliganj Apartment
Address

A-2 Modern Enclave chandganj garden aliganj ,lko.
(Please Specify)
Private body
Person Contacted Mrs. NirmalaBalani
Profession
50

Income Group Middle
Profession Taken On
Bank From which Finance Was Availed HDFC bank
Amount /
2,35,000 (2001)
Rate of Intrest 13%

Loan
-No Hidden Charges


Aliganj ,lko.
Address

E-310, Aliganj ,sec J lko.
(Please Specify)
Private body
Person Contacted Vinay
Profession Ast. Accountant
Income Group Middle
Profession Taken On
Bank From which Finance Was Availed NA
Amount /
NA
51

Rate of Intrest NA

Loan
-No Hidden Charges

Want role for renovation of the present house or for
construction of new house

Aliganjlko.
Address

L- 1/163 sec. B aliganjlko.
(Please Specify)
Private bidy
Person Contacted KK sharma
Profession Retired
Income Group Middle
Profession Taken On
Amount /
25 lac.
Rate of Intrest NA

52

Loan
-No Hidden Charges

Want fresh loan on their property.

Aliganj sec. B
Address

Sec-b AliganjLko.
(Please Specify)
Private body
Person Contacted Vinodkumar
Profession Business
Income Group Middle
Profession Taken On
Amount /
10 lac.
Rate of Intrest NA

Loan
-No Hidden Charges

Want fresh loan on their property or profit
53

Dubaagalko.
Address

Dubaagalko.
(Please Specify)
Private body
Person Contacted Ram Chandra
Profession Teacher
Income Group Middle
Profession Taken On
Bank From which Finance Was Availed LIC
Amount /
10 lac.
Rate of Intrest 10%

Loan
-No Hidden Charges


54

LDA colony
Address

LDA Colony, Kanpur road lko.
(Please Specify)
Private body
Person Contacted Shakhar
Profession Business
Income Group Middle
Profession Taken On 2006
Bank From which Finance Was Availed Oriental bank
Amount /
Want fresh loan of 22 lac.(pevious has been paid)
Rate of Intrest

Loan
-No Hidden Charges

Want fresh loan for his flat

LDA colony
55

Address

L-2/279sec.9LDA colony , Kanpur road lko.
(Please Specify)
Private body
Person Contacted Mohd. MaroofHussain
Profession J.f. (govtemployeed)
Income Group 7 lac. P.a.
Profession Taken On
Bank From which Finance Was Availed ICICI bank
Amount /
3.5 lac

Loan
-No Hidden Charges

No

ALambaghlko.
Address

Alambagh ,lko.
(Please Specify)
Private body
Person Contacted Sandeep Kumar
56

Profession Manager (private co.)
Income Group Middle
Profession Taken On
Amount /
NA
Rate of Intrest NA

Loan
-No Hidden Charges

Want fresh loan

Budhasurlko.

Address

Budhasurbihar ,lko
(Please Specify)
Private body
Person Contacted Pankajverma
Profession Medical
Income Group Middle
Profession Taken On
57

Amount /
NA
Rate of Intrest NA

Loan
-No Hidden Charges

Want fresh loan

Univesity colony
Address

MilaniPark , university lko.
(Please Specify)
Private body
Person Contacted DR. vinit
Profession Consuller
Income Group Middle
Profession Taken On NA
Amount /
NA
Rate of Intrest NA

58

Loan
-No Hidden Charges

Want fresh loan

Alambagh ,lko.
Address

Alambagh , lko
(Please Specify)
Private body
Person Contacted T.P. Dwievedi
Profession Teacher
Income Group Middle
Profession Taken On
Amount /
NA
Rate of Intrest NA

Loan
-No Hidden Charges
Want fresh loan
59


Aashinalko.
Address

Aashinalko.
(Please Specify)
Private body
Person Contacted Vishal
Profession Service
Income Group Middle
Profession Taken On
Amount /
8lac
Rate of Intrest NA

Loan
-No Hidden Charges

Want fresh loan

60

LDA colony
Address

D-1 LDA colony kanpurroad ,lko.
(Please Specify)
Private body
Person Contacted Rameshwarkushwaha
Profession Sr. manager
Income Group Middle
Profession Taken On
Amount /
NA
Rate of Intrest NA

Loan
-No Hidden Charges

Want loan for construction on their land

61

Aashianalko.
Address

Aashianalko.
(Please Specify)
Private body
Person Contacted Manojkumararya
Contact No. & email ID 9794831670
Profession Railway sevice
Income Group Middle
Profession Taken On
Amount /
NA
Rate of Intrest NA

Loan
-No Hidden Charges

Want fresh loan

Para lko.
Address

Para lko.
62

(Please Specify)
Private body
Person Contacted Sanjay Tiwari
Profession Coaching
Income Group Middle
Profession Taken On
Amount /
NA
Rate of Intrest NA

Loan
-No Hidden Charges

Want fresh loan

Rajajipuramlko.
Address

Rajajipuramlko.
(Please Specify)
Private body
Person Contacted Mahendrakumar
Contact No. &emailID
Profession Sikhapraishad (Principal)
63

Income Group Middle
Profession Taken On
Amount /
20 lac

Loan
-No Hidden Charges

Want to switch over

Aashinalko.
Address

Aashinalko.
(Please Specify)
Private body
Person Contacted ManojAsthna
Profession Retired
Income Group Middle
Profession Taken On
Amount /
7 lac.
64

Rate of Intrest 10%

Loan
-No Hidden Charges

Want to switch over

65

Summary Of the surveys
***Sample of 100 people have been selected to represent the following charts
Ratio of private and government builders type:
government 27%
private 73%

Classification of profession:

government
27%
private
73%
24%
34%
10%
10%
5%
24%
0%
5%
10%
15%
20%
25%
30%
business pvt employee govt. employee retired housewife others
percentage
66

Classification of income group:

Banks from which loan availed by non-existing customers of SBI:

19%
45%
21%
5.50%
9.50%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
<3 lakh 3-5 lakh 5-8lakh 8-10 lakh >10 lakh
percentage distribution
27%
14%
9% 9%
6%
5% 5%
25%
0%
5%
10%
15%
20%
25%
30%
HDFC UBI BOB ICICI BOI CANARA AXIS OTHERS
PERCENTAGE SHARE IN HOME LOANS
67

Observation

Being the top most commercial bank and its image of loyality every individual wants to carry out
its transactions with SBI. Every individual tries to get his/her loan sanctioned from SBI (because
of its image). But because of few reasons customers are forced to shift from SBI to another bank
like HDFC, BOI etc. Some of those reasons are as follows-

Rude behaviour of employees.
High documentation .
Lengthy and time taking procedure.
Poor CRM (customer relation management).
Poor Help Desk.
Very Rigid and a large number of rules.
A large number of pending applications.

68

Recommendations
After my surveys and observations I would like to recommend following things for better
working of SBI-
Applications of public should be taken into consideration in a very less time.

Employees should be groomed and trained in context of their behaviour with
customers.

All the leads Collected by our workforce should be collected at a place by
offering some small get together or seminar which may help the bank to know the
real problem of public and bank can take corrective actions.

A proper customer care or Help desk should be formed.

Documentation process should be made easy and less time consuming.

Employees should be treated very politely and humbly.

A team must be appointed just for loaning/

69

Bibliography

http://www.igidr.ac.in

http://www.bankingawareness.com

http://www.deal4loans.com

http://www.sbi.co.in

http://moneycontrol.com

Name: Arpita Sengar

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First, one must decide what kind of information should be collected

Second, one must decide how to conduct the questionnaire

Thirdly, one must construct a first draft of the questionnaire

Fourth, the questionnaire should be revised

Next, the questionnaire should be pretested

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