1. 0
CH.
No
CONTENTS Page
no.
1 Acknowledgement 1
2 Executive Summary 2
3 Company Profile
Overview……………………………………………………..4
History………………………………………………………..7
Competitors………………………….……………………….11
Strength/Opportunity & weakness/Threats…………………..12
Different Products…………………………………………....13
Awards & Recognitions to SBI………………………………14
3-14
4 SBI Loan Product
Introduction to Advance Product……………………………...16
SBI Advance Product………………………………….............17
Statement the Problem………………………………………...33
Research objectives…………………………………………....34
Significance and scope………………………………………...35
15-35
5 Research methodology 36-38
6 Analysis of data 39-47
7
Findings……………………………………………….…...….49
Suggestion & Recommendation………………………............51
Conclusion…………………………………………………….53
48-53
8 Annexure 54-56
9 Bibliography 57-58
INDEX
2. 1
Declaration
I Porje Shrikant Ramdas hereby declare that following documented
project titled Customers Perception towards State Bank of India’s Loan
(SBI) product. Is an organized and authentic work done by me for the
partial fulfillment for Master of Business Administration at SBI Bank.
All the endeavors put in the fulfillment of the task are genuine and
original to the best of my knowledge.
(Shrikant R. Porje)
Date :
Place :
3. 2
Acknowledgement
It is my proud privilege to release the feelings of my gratitude
to several persons who helped me directly or indirectly to conduct this
project work. I thank to my teacher and my faculty guide Prof. Umesh
kasar, Prof. Vinod Khair For institute of D.B.Pawar college of
management , kalwan and to my corporate guide Mr. Suresh Gulve
RMME, SBI IFB Malad Branch, Mr. Pravin Hakim, CustomerSupport
Officer (CSO), SBI IFB Malad Branch for their sincere guidance and
inspiration in completing this project.
I am extremely thankful to the Director, and faculties of the
Institute for their coordination and cooperation.
I am also extremely thankful to all those persons who have
positively helped me and customers who responded my questionnaire,
around whom the whole project cycle revolves.
Thanking You
4. 3
Executive Summary
In the ever growing competition, the behavioral aspect of
consumers
Is the coreconcept & is also an essential aspect for any business concern.
This topic deals with the CUSTOMER’S PERCEPTION TOWARDS
THE LOAN PRODUCT OF STATE BANK OF INDIA (SBI BANK).
This project report includes five different chapters. The report begins
with the introduction to company, its area of operation, its organization
structure, its achievements, etc.
The second chapter is the introduction to the Loan Product which
gives a brief idea regarding LOAN PRODUCTS of SBI BRANCH of
Malad(W), Mumbai where the project is undertaken. It also contains the
objectives and limitations of the project.
The third chapter, methodology adopted in preparing this report is
mentioned. It covers the sample procedure, types of data used and the
data collection method.
The fourth chapter shows the analysis of data through tabulation,
computation and also graphical representation of data collected from
survey.
The fifth chapter deals with the findings, suggestion & conclusion
part after analysis is made.
The sixth chapter the recommendation part is covered which are
made after a depth study of the analysis part of thesis.
In each of the five chapters as described above, every chapter has
been presented in a manner so as to enable the reader to view the contents
easily. The report includes figures and data wherever necessary for the
reader to have good understanding of the topic.
5. 4
Company Profile:
Overview
History
Competitors
Strength/Opportunity & Weakness/Threats
Different Products
Awards & Recognitions by SBI
6. 5
OVERVIEW
State Bank of India is the largest and one of the oldest commercial
bank in India, in existence for more than 200 years. The bank provides a
full range of corporate, commercial and retail banking services in India.
Indian central bank namely Reserve Bank of India (RBI) is the major
share holder of the bank with 59.7% stake. The bank is capitalized to the
extent of Rs.646bnwith the public holding (other than promoters)at
40.3%. SBI has the largest branch and ATM network spread across every
corner of India. The bank has a branch network of over 14,000 branches
(including subsidiaries). Apart from Indian network it also has a network
of 73 overseas offices in 30 countries in all time zones, correspondent
relationship with 520 International banks in 123 countries. In recent past,
SBI has acquired banks in Mauritius, Kenya and Indonesia. The bank had
total staff strength of 198,774 as on 31st March, 2006. Of this, 29.51%
are officers, 45.19% clerical staff and the remaining 25.30% were sub-
staff. The bank is listed on the Bombay StockExchange, National Stock
Exchange, Kolkata StockExchange, Chennai StockExchange and
Ahmedabad StockExchange while its GDRs are listed on the London
StockExchange. SBI group accounts for around 25% of the total business
of the banking industry while it accounts for 35% of the total foreign
exchange in India. With this type of strong base, SBI has displayed a
continued performance in the last few years in scaling up its efficiency
levels. Net Interest Income of the bank has witnessed a CAGR of 13.3%
during the last five years. During the same period, net interest margin
(NIM) of the bank has gone up from as low as 2.9% in FY02 to 3.40% in
FY06 and currently is at 3.32%.
7. 6
Management
The bank has 14 directors on the Board and is responsible for the
management of the Bank’s business. The board in addition to monitoring
corporateperformance also carries out functions such as approving the
business plan, reviewing and approving the annual budgets and
borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the
Chairman of the bank. The five-year term of Mr. Bhatt will expire in
March 2011. Prior to this appointment, Mr. Bhatt was Managing Director
at State Bank of Travancore. Mr. Bhatt has more than 30 years of
experience in the Indian banking industry and is seen as futuristic leader
in his approachtowards technology and customer service. Mr. Bhatt has
had the best of foreign exposure in SBI. We believe that the appointment
of Mr. Bhatt would be a key to SBI’s future growth momentum. Mr. T S
Bhattacharya is the Managing Director of the bank and known for his vast
experience in the banking industry. Recently, the senior management of
the bank has been broadened considerably. The positions of CFO and the
head of treasury have been segregated, and new heads for rural banking
and for corporatedevelopment and new business banking have been
appointed. The management’s thrust on growth of the bank in terms of
network and size would also ensure encouraging prospectsin time to
come.
9. 8
HISTORY
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. Threeyears 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 bythe 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.
Primarily Anglo-Indian creations, the three presidency banks came
into existence either as a result of the compulsions of imperial finance or
by the felt needs of local European commerce and were not imposed from
outside in an arbitrary
Manner to modernize India's economy. Their evolution was, however,
shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of
both the local trading environment and those in the relations of the Indian
economy to the economy of Europe and the global economic framework.
The three banks were governed by royal charters, which were revised
from time to time. Each charter provided for a share capital, four-fifth of
which were privately subscribed and the rest owned by the provincial
government. The members of the board of directors, which managed the
affairs of each bank, were mostly proprietary directors representing the
large European managing agency houses in India. The rest were
government nominees, invariably civil servants, one of whom was elected
as the president of the board.
10. 9
Group Photograph of Central Board (1921)
SBI provides a range of banking products through its vast network
of branches in India and overseas, including products aimed at NRIs. The
State Bank Group, with over 16,000 branches, has the largest banking
branch network in India. With an asset baseof $260 billion and $195
billion in deposits, it is a regional banking behemoth. It has a market
share among Indian commercial banks of about 20% in deposits and
advances, and SBI accounts for almost one-fifth of the nation's loans.
SBI has tried to reduce over-staffing by computerizing operations and
"GOLDEN HANDSHAKE SCHEME" that led to a flight of its best
and brightest managers. These managers took the retirement allowances
and then went on to become senior managers in new private sectorbanks.
The State bank of India is the 29th most reputed company in
the world according to Forbes.
11. 10
BUSINESS
The business of the banks was initially confined to discounting of
bills of exchange or other negotiable private securities, keeping cash
accounts and receiving deposits and issuing and circulating cash notes.
Loans were restricted to
Rs.oneLakh and the period of accommodation confined to three months
only. The security for such loans was public securities, commonly called
Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a
perishable nature' and no interest could be charged beyond a rate of
twelve per cent. Loans against goods like opium, indigo, salt woolens,
cotton, cottonpiece goods, mule twist and silk goods were also granted
but suchfinance by way of cash credits gained momentum only from the
third decadeof the nineteenth century. All commodities, including tea,
sugar and jute, which began to be financed later, were either pledged or
hypothecated to the bank. Demand promissory notes were signed by the
borrower in favour of the guarantor, which was in turn endorsed to the
bank. Lending against shares of the banks or on the mortgage of houses,
land or other real property was, however, forbidden.
Indians were the principal borrowers against deposit of Company's
paper, while the business of discounts on private as well as salary bills
was almost the exclusive monopoly of individuals Europeans and their
partnership firms. But the main function of the three banks, as far as the
government was concerned, was to help the latter raise loans from time to
time and also provide a degree of stability to the prices of government
securities.
12. 11
First Five Year Plan
In 1951, when the First Five Year Plan was launched, the
development of rural India was given the highest priority. The
commercial banks of the country including the Imperial Bank of India
had till then confined their operations to the urban sectorand were not
equipped to respond to the emergent needs of economic regeneration of
the rural areas. In order, therefore, to serve the economy in general and
the rural sector in particular, the All India Rural Credit Survey Committee
recommended the creation of a state-partnered and state-sponsored bank
by taking over the Imperial Bank of India, and integrating with it, the
former state-owned or state-associate banks. An act was accordingly
passed in Parliament in May 1955 and the State Bank of India was
constituted on 1 July 1955. More than a quarter of the resources of the
Indian banking system thus passed under the direct controlof the State.
Later, the State Bank of India (Subsidiary Banks) Act was passed in
1959, enabling the State Bank of India to take over eight former State-
associated banks as its subsidiaries
(Later named Associates).
The State Bank of India was thus bornwith a new sense of social
purposeaided by the 480 offices comprising branches, sub offices and
three Local Head Offices inherited from the Imperial Bank. The concept
of banking as mere repositories of the community's savings and lenders
to creditworthy parties was soonto give way to the conceptof purposeful
banking sub serving the growing and diversified financial needs of
planned economic development. The State Bank of India was destined to
act as the pacesetter in this respect and lead the Indian banking system
into the exciting field of national development.
13. 12
COMPETITORS
Competitors and other players in the field:-
Top Performing Public SectorBanks
Andhra Bank
Allahabad Bank
Punjab National Bank
Bank of Baroda
Union Bank of India
Top Performing Private SectorBanks
HDFC Bank
ICICI Bank
AXIS Bank
UTI Bank
Federal Bank
Top Performing ForeignBanks
Citibank
Standard Chartered
HSBC Bank
Barclays Bank PLC
ABN AMRO Bank
14. 13
Strength/ Opportunities:
The growth for SBI in the coming years is likely to be fuelled by the
following factors:
• Continued effort to increase low costdepositwould ensure
improvement in NIMs and hence earnings.
• Growing retail & SMEs thrust would lead to higher business growth.
• Strong economic growth would generate higher demand for funds
pursuant to higher corporatedemand for credit on account of capacity
expansion.
Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under:
• SBI is currently operating at a lowest CAR. Insufficient capital may
restrict the growth prospectsofthe bank going forward.
• Stiff competition, especially in the retail segment, could impact retail
growth of SBI and hence slowdown in earnings growth.
• Contribution of retail credit to total bank credit stood at 26%.
Significant thrust on growing retail bookposes higher credit risk to the
bank.
• Delay in technology up gradation could result in loss of market shares.
• Slow down in domestic economy would posea concern over credit off-
take thereby impacting earnings growth.
15. 14
DIFFERENT PRODUCTS OF SBI:
DEPOSIT LOANS CARDS DIFFERENT CREDIT
CARDS
Savings
Account
Home
Loans
Consumer
Cards
SBI
International
cards
Life Plus
Senior
Citizens
Savings
Account
Loan
Against
Property
Credit Card SBI Gold
cards
Fixed
Deposits
Personal
Loans
Travel Card SBI Gold
Master cards
Security
Deposits
Car Loan Debit Cards Your City Your
Cards
Recurring
Deposits
Loans
against
Securities
Commercial
Cards
Salary
Account
Two
Wheeler
Corporate
Cards
Partnership
Cards
Advantage
Woman
Savings
Account
Pre-
approved
Loans
Prepaid Card
Rural Savings
Account
Retail
Asset
Purchase Card SBI Employee
Cards
People's
Savings
Account
Farmer
Finance
Distribution
Cards
Freedom
Savings
Account
Business
Installmen
t
Loans
Business Card SBI Advantage
Cards
16. 15
AWARDS & RECOGNITIONS
On25th July 2009 SBI has been awarded under the
“FinancialExpress BestBanks”category
“The BestBankerof the year award 2008”.
“Best use of IT for Customer Service in Semi-urban and rural
areas” category.
Awarded the “Bank of the Year 2008 – India” by
The BankerMagazine, London.
Ranked# 1 in Survey of top 5 companies in India in terms of
financial reputation by Wall StreetJournal Asia.
Economic Times announced on 17th June 2009, Brand Equity
MostTrusted Brand 2009.
SBI wins the first AIMA - R K Swami High Performance Brand
Award 2009. (Announcement on February 16, 2010).
SBI bags Business India Best Bank Awards 2009.
State Bank has won the prestigious “AsianBankerAchievement
Award” for being the strongest bank in Asia Pacific region,
instituted by the QatarFinancial Centre Authority and the
Asian Bankermagazine.
17. 16
Introduction to Advance Product
SBI Advance Product
Statement the Problem
Research objectives
Significance and scope
18. 17
Introduction to Loan Product
In the current busy world people find difficult in fulfilling there
desires in addition to there basic needs. The earnings of the people are
not adequate to fulfill other wants. They are in need of much required
finance to secure some additional wants, that’s why they need help from
others. For this so many government & private sector bank provide them
money to fulfill their requirement, that’s call the Loan Productof the
bank. All the banks have so many different types of Loan Products
productas per the requirement of the people or customers. In Malad also
there are so many banks those provide loan to the people for different
causes.
Types of Loan Product
Home Loan
Educational Loan
Car Loan
Personal Loan
Property Loan
Etc.
Now a day a large no. of people are taking loan form different banks. It
helps people to fulfill their need and it really easy to repayment the loan
amount with a longer repayment period.
19. 18
SBI Loan Product
SBI Home Loans
Purpose: -
Purchase/ Construction of House/ Flat
Purchase of a plot of land for construction of House
Extension/ repair/ renovation/ alteration of an existing House/ Flat
Purchase of Furnishings and Consumer Durables as a part of the
project cost.
Takeover of an existing loan from other Banks/ Housing Finance
Companies.
Eligibility :-
Minimum age 18 years as on the date of sanction
Maximum age limit for a Home Loan borrower is fixed at 70 years,
i.e. the age by which the loan should be fully repaid.
Availability of sufficient, regular and continuous source of income
for servicing the loan repayment.
20. 19
Interest Rates;-
Note:- Interest rate after three years may be Fixed or Floating as per the borrower’s choice
made at the time of sanction.
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. Expectedrent accrual(less taxes, cess,etc.)if the house/ flat
being purchased is proposed to be rented out.
3. Depreciation, subjectto some conditions.
4. Regularincome from all sources
Loan Schemes 1st Year 2nd and 3rd year After 3rd Year
SBI HI-FIVE Loan
Loan Amount up to
Rs. 5 Lacs
8.00% (p.a.)
Fixed interest rate
9.00% (p.a.)Floating
Interest Rates
OR
10.50% (p.a.)
Fixed Interest Rates
9.00% (p.a.)Floating
Interest Rates
OR
10.50% (p.a.)Fixed
Interest Rates
SBI Easy Home
Loan
Loan Amount up to
Rs. 50 Lacs
8.00% (p.a.)
Fixed interest rate
8.50% (p.a.)
Fixed Interest Rate
9.00% (p.a.)Floating
Interest Rate
OR
10.50% (p.a.)
Fixed Interest Rate
21. 20
CAR LOAN
Purpose
You can take finance for:
A new car, jeep or Multi Utility Vehicles (MUVs)
A used car / jeep (not more than 5 years old). (Any make or
model).
Take over of existing loan from other Bank/Financial institution
(Conditions apply)
Eligibility
To avail an SBI Car Loan, you should be:
Individual between the ages of 21-65 years of age.
A Permanent employee of State / Central Government, Public
SectorUndertaking, Private company or a reputed establishment or
A Professionals or self-employed individual who is an income tax
assesseeor
A Person engaged in agriculture and allied activities.
Net Annual Income Rs.100,000/-and above.
22. 21
Silent Features
Loan Amount
There is no upper limit for the amount of a car loan. A maximum
loan amount of 2.5 times the net annual income can be sanctioned. If
married, your spouse's income could also be considered provided the
spousebecomes a co-borrowerin the loan. The loan amount includes
finance for one-time road tax, registration and insurance!
No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
Type of Loan
1. Term Loan
2. Overdraft –
a) ForNew vehicles only
b) Minimum loan amount: Rs. 3 lacs.
23. 22
SBI EZEE CAR LOAN SCHEME
(w.e.f. 01.07.2010(BaseRate 7.50 %)
SL.
No
PARAMETER SCHEME DETAILS
1 Applicable to All New Car Loans to Public
2 Scheme Period From July 1, 2009 to September 30,
2010
3 Interest Rate
Period Term
Loan
Overdraft
First year 8% Fixed 8.5% fixed
For 2ND &
3rd year
10% fixed 10.5% fixed
From 4th Year Onwards: The floating
interest rate will be reset to applicable card
rate contracted on the date of sanction.
Currently the rates are
Period Term
Loan
Overdraft
For 4th & 5th
year
3.75% above
Base Rate
i.e.11.25%
4.25% above
Base Rate
i.e.11.75%
For 6th & 7th
year
4.00% above
Base Rate
i.e.11.50%
4.50% above
Base Rate
i.e. 12.00%
Base Rate 7.50 %
No other interest concessionwill be given
under any tie-up arrangement or otherwise
below the offer rate.
24. 23
4 Processing Fees 0.50% of loan amount
Documents required
You would need to submit the following documents along with
the completed application form if you are an existing SBI account
holder:
1. Statement of Bank accountof the borrower for last 12 months.
2. 2 passportsize photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
4. A copyof passport/voters ID card/PAN card.
5. Proofof residence.
6. Latest salary-slip showing all deductions
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years
for professional/self-employed/businessmen duly accepted by the
ITO wherever applicable to be submitted.
8. Proofof official address for non-salaried individuals.
If you are not an account holder with SBI you would also need to furnish
documents that establish your identity and give proofof residence.
Repayment
You enjoy the longest repayment period in the industry with us.
Repayment period:
ForSalaried: - Maximum of 84 months
ForSelf-employed & Professionals: Maximum 60 months
Repayment period for used vehicles:Up to 84 months from the
date of original purchase of the vehicle (subject to maximum tenure as
above).
25. 24
2. Used Vehicles:-
Tenure Rate of Interest
Up to 3 years 7.25% above Base Rate i.e. 14.75%
p.a.
Above 3 yrs 7.50% above Base Rate i.e. 15.00%
p.a.
3. Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be
levied subject to certain conditions
Repayment Period All Centers (SBAR -
12.25%)
Up to 3 years (for loans Rs. 7.5 lac & above) 0.75% below SBAR i.e.
11.50% p.a.
Up to 3 years (for loans below Rs. 7.5 lac) 0.50% below SBAR i.e.
11.75%p.a.
Above 3 yrs up to 5 yrs (for all loans) 0.50% below SBAR i.e.
11.75% p.a.
Above 5 yrs up to 7 yrs (for all loans)
0.25% below SBAR i.e.
12.00% p.a.
26. 25
EDUCATION LOAN
A term loan granted to Indian Nationals for pursuing higher education
in India or abroad where admission has been secured.
Eligible Courses
All courses having employment prospectsare eligible.
Graduation courses/Postgraduation courses/Professional courses
Other courses approved by UGC/Government/AICTE etc.
Expenses considered for loan
Fees payable to college/school/hostel
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit (maximum
10% tuition fees for the entire course)
Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for completion of
course
Costof a Two-wheeler up to Rs. 50,000/-
Any other expenses required to complete the courselike study tours,
project work etc.
Amount of Loan
For studies in India, maximum Rs. 10 lacs
Studies abroad, maximum Rs. 20 lacs
27. 26
Interest Rates
Base Rate 7.50 % (w.e.f. 01.07.2010)
Loan Amount Rate of Interest
For loans up to Rs.4 lacs 3.75% above Base Rate, currently
11.25% p.a.
Above Rs.4 lacs andup to Rs.7.50
lacs
5.25% above Base Rate, currently
12.75% p.a.
Above Rs.7.50 lacs 4.25% above Base Rate, currently
11.75% p.a.
(0.50% concessionin interest for girl student)
Processing Fees
No processing fee/ upfront charges
Deposit of Rs. 5000/- for education loan for studies abroad which
will be adjusted in the margin money
Repayment Tenure
Repayment will commence one year after completion of course
or 6 months after securing a job, whichever is earlier.
Place of Study Loan Amount Repayment in
Period
Years
28. 27
Studies in India Rs. 10.0 lacs 5-7
Studies Abroad Rs. 20.0 lacs 5-7
Security
Amount For loans up to Rs. 10.00 lacsfor Studies in
India and up to Rs. 20.00 lacs forstudies
abroad
Up to Rs. 4 lacs No Security
Above Rs. 4 lacs to Rs.
7
.
5
0
l
a
c
s
Collateral security in the form of suitable third
party
Guarantee. The bank may, at its discretion, in
exceptional cases, waive third party guarantee if
satisfied with the net-worth/means of parent/s
who
would be executing the documents as "joint
borrower"
Above Rs. 7.50 lacs. Tangible collateral security of suitable value,
along
with the assignment of future income of the
student
For payment of installments.
All loans should be secured by parent(s)/guardian of the student
borrower. In case of married person, co-obligator can be spouseorthe
parent(s)/ parents-in-law
Margin
For loans up to Rs.4.0 lacs : No Margin
For loans above Rs.4.0lacs:
Studies in India: 5%
29. 28
Studies Abroad: 15%
Documentation Required
Completed Education Loan Application Form.
Mark sheets of last qualifying examination
Proofof admission scholarship, studentship etc
Schedule of expenses for the specified course
2 passportsize photographs
Borrower's Bank account statement for the last six months
Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the Co-borrower
Proofof Income (i.e. Salary slips/ Form 16 etc)
30. 29
SBI SARAL PERSONAL LOAN
Purpose
The loan will be granted for any legitimate purposewhatsoever
(e.g. expenses for domestic or foreign travel, medical treatment of self or
a family member, meeting any financial liability, such as marriage of
son/daughter, defraying educational expenses of wards, meeting margins
for purchase of assets etc.)
Eligibility
You are eligible if you are a salaried individual of good quality
corporate, self employed engineer, doctor, architect, chartered accountant,
MBA with minimum 2 years standing.
Salient Features:
Loan Amount
Your personal loan limit would be determined by your income
And repayment capacity.
Minimum: Rs.24, 000/- in metro and urban centers
Rs.10, 000/- in rural/semi-urban centers
Maximum: 12 times Net Monthly Income for salaried individuals
And pensioners subject to a ceiling of Rs.10 lacs in all centers
Documents Required
Important documents to be furnished while opening
A Personal Loan Account:
31. 30
For existing bank customers
Passportsize photograph
From salariedindividuals
Latest salary slip and Form 16
Margin
We do not insist on any margin amount.
Interest Rates
16.00% PA
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more
Than the EMI
If you wish to, without attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 1-2% of the loan amount. This is amongst
The lowest fees in the industry. Processing fees have to
Be paid up front. There are no hidden costs orother
Administrative charges.
32. 31
PROPERTY LOAN
A dream comes true! An ALL PURPOSELOAN for anything that
life throws up at you!! Do you need funds for a Marriage ceremony, want
to take your family to a well-deserved holiday or for a sudden medical
emergency? You have some property, but would rather not sell it? Then
why not avail of this ALL PURPOSELOAN from SBI? SBI now makes
it very much possible for you to only keep your property but also have
liquid funds.
Enjoy the SBI Advantage;-
Complete transparency in operations
Access this loan from our wide network of branches
Interest rates are levied on a monthly/daily reducing balance
method
Lowest processingcharges.
Long repayment period of 60 months, up to 120 months for
salaried individuals with check-off facility
No Hidden costs oradministrative charges.
No prepayment penalties. You can have surplus funds at any
time thereby conveniently reducing your loan liability and
interest burden.
Property Loan Scheme
Avail of an All-Purpose loan against mortgage of any of your property.
We offer you these loans at all our Personal Banking Branches and those
branches having Personal Banking Divisions amongst others.
33. 32
Purpose
This is an all purposeloan, i.e., the loan can be obtained for any purpose
whatsoever. If amount of loan is Rs.25.00 lacs and above then purposeof
loan will have to be specified along with an undertaking that loan will not
be used for any speculative purposewhatever including speculation on
real estate and equity shares.
Eligibility
You are eligible if you are:
A. An individual who is;
a. An Employee or
b. A Professional, self-employed or an income tax assesseeor
c. Engaged in agricultural and allied activities.
B. Your Net Monthly Income (salaried)is in excess ofRs.12, 000/-or
Net Annual Income (others) is in excessofRs.1, 50,000/-.
The income of the spousemay be added if he/she is a co-borrower
Or a guarantor.
C. Maximum age limit: 60 years.
Silent Features
Loan Amount
Minimum: Rs.25, 000/-
Maximum: Rs.1crore. The amount is decided by the following
calculation:
24 times the net monthly income of salaried persons (Net of all
deductions including TDS) OR
2 times the net annual income of others (income as per latest IT return
less taxes payable)
Margin
34. 33
We will finance up to 60% of the market value of your property.
Interest
Term Loan 1.00% above SBAR. i.e.13.25% p.a. floating for loans up
to Rs.1.00 crore. In other cases 1.25% above SBAR i.e.13.50% p.a.
floating (w.e.f. 01.01.2009)
Repayment
Maximum of 60 equated monthly installments, up to 120 months for
salaried individuals with check-off facility. You could optto divert any
surplus funds towards prepayment of the loan without attracting any
penalty.
Security
As per banks extant instructions.
35. 34
Statement of problem
SBI Branch, Malad(W), Mumbai want to know about the customer
perception about the advance productprovide by them to the
people.
To find out what kind of service provide by the competitors in
advance product.
To find out the need of the customer and hence formulate the
strategy to level the economy in the society.
How the products are helping the customer.
To know the utility of the product.
To find out the need of the customer in Malad(W), region and
introduce new productor facilitate new service in existing product.
36. 35
Research objectives
Summer Internship Project gives a practical exposure and helps in
acquiring the on road skills.
First and foremost objective is to find out the reasons for using of
loan Product from SBI.
To find out the services that other bank given to their customer.
To generate the leads through the survey.
To sort out the prospective leads from the data I have collected
through the survey.
To build the relation ship with the customers and to follow up
them, make sure that they are satisfied with the product.
To maintain good relationship with the corporate employees.
To get more references from the customers and generate new leads
by following a chain process.
To place SBI loan Product ahead of the competitors.
37. 36
To find out the customer awareness on booming loan Product
market and to find out the using patterns of the people
To make the customer aware of the benefits of the product and
convince him to go for SBI loan Product.
Significance and scope
The geographical scopeof the study is restricted to Malad(W),only
with sample size of 80 people.
All the analysis and suggestions are based on the analysis of the both
primary and secondary data.
There fore the scopeof the study revolves around the following aspects:-
Consumer perception towards loan Product
Consumer awareness about loan Productscheme and its benefit.
Aware the Bank about the customer problems, especially in case of
automobile sector.
39. 38
Research methodology
Research methodology
Research methodology is a methodology for collecting all sorts of
information & data pertaining to the subject in question. The objective is
to examine all the issues involved & conduct situational analysis. The
methodology includes the overall research design, sampling procedure &
fieldwork done & finally the analysis procedure. The methodology used
in the study consistent of sample survey using both primary & secondary
data. The primary data has been collected with the help of questionnaire
as well as personal observation book, magazine; journals have been
referred for secondary data. The questionnaire has been drafted &
presented by the researcher himself.
Sample Size:
40. 39
Sample of 80 people was taken into study, and their data
was collected
Sampling Technique:
To study the Project, a Simple Random Sampling
technique is used.
Data Collection:
Collection of data is done by secondary Data & through
Questionnaire i.e., Primary data was collected through Questionnaire.
Data Analysis:
After data collection, I’m able to analyze customer’s views,
ideas and opinions related to loan Product and about SBI loan Product
and from this, SBI will come to know the customer requirements.
Data Interpretation:
Interpretation of data is done by using statistical tools like
Pie diagrams, Bar graphs, and also using quantitative techniques (by
using these techniques) accurate information is obtained.
Classification & tabulation of data:
The data thus collected were classified according to the
categories, counting sheets & the summary tables were prepared. The
resultant tables were one dimensional, two dimensional.
Statistical tools used for analysis:
Out of the total respondents, the respondents who responded
logically were taken into account while going into statistical details &
analysis of data. The tools that have been used for analyzing data &
41. 40
inference drawing are mainly statistical tools like percentage, ranking,
averages, etc.
As per questionnaire and market surveys I have find out
different responses from different people. According to their responses I
analyze the findings and draw certain remarks.
Analysis of data
42. 41
GRAPHICAL REPRESENTATION OF DATA
Q1. On which bank you depend for your regular
transaction?
SBI 60 % (48)
ICICI 33 % (26)
HDFC 5% (4)
OTHER 2% (2)
TOTAL NO. OF
PEOPLE
80
43. 42
RE S PONS E S OF PE OPL E IN %
60%
33%
5% 2%
It has been observed that approximately 60% correspondents are
using the service of SBI for their daily transaction, around 33% of people
are using ICICI Bank for their transaction and only 5% & 2% of people
are using HDFC & other Bank service respectively in Malad. It also
shows that SBI have the highest market position in Malad as per my
sample.
Q2. Are you aware of products & services provided by SBI?
YES 85% (68)
NO 15% (12)
Total No. of People 80
44. 43
From the above data it is clear that most of the customers (around
85%) of Malad have the idea about the product & services ofSBI, the
rest 15% have the idea about the productthey are using. In this 15% most
of the people are from typical rural area (Farmers).
Q3. If yes are you aware of the Loan products of SBI?
YES 95%(76)
NO 5% (4)
TOTAL NO. OF PEOPLE 80
45. 44
It is clear that most of the people have the idea about the Loan
product of SBI. Almost all the 95% people who have the idea about the
Loan product are the user of SBI product & service.
Q4. Which bank you prefer for taking loans?
SBI 85% (68)
ICICI 12% (9)
HDFC 2% (2)
OTHER 1% (1)
TOTAL NO. OF 80
46. 45
PEOPLE
According to my sample size 85% of people prefer SBI for loan
product, but some people prefer ICICI, HDFC or OTHER Bank for loan
because they are working with that bank & it is easier for them to get loan
from their bank & it easier for them to pay the interest because it is less as
compare to other bank because they are the employee of that bank.
Q5. If you prefer SBI for taking loan than what influence
you to take Loan from SBI?
Most of the people said that they prefer SBI for taking loan because
of the transparency and the lowest interest rate for any kind of loan
product. And it is easy to get loan from SBI as compare to other bank
because less paper work is require and as it is the largest govt. bank in
India and having partnership with RBI (Reserve Bank of India) and other
association, it is easier for SBI to give loan to people with a longer
repayment period.
47. 46
Q.6 which loan product of SBI you have used?
HOME LOAN 47% (38)
EDUCATIONAL LOAN 20% (16)
CAR LOAN 15% (12)
PERSONAL LOAN 10% (8)
OTHER 8% (6)
TOTAL NO. OF PEOPLE 80
From the sample size 85% of people are using the SBI loan
product. From the 1800 people 47% of people took home loan from SBI.
20% of people took education loan for their children, 15% of people took
car loan from SBI. Some of the customer took 2 type of loan from SBI
like both car & educational loan and home & car loan. 10% of people
took personal loan.
48. 47
Q7. What do you feel about the services providing by SBI in
Loan product?
Bad 0% (0)
Satisfactory 2% (2)
Good 55% (44)
Excellent 43% (34)
TOTAL NO. OF PEOPLE 80
49. 48
From this it is clear that the service provide by SBI in its Loan
productis good in between the customer. All of them satisfy with the
productprovide by SBI. 55% of people said that the service provide by
SBI is good & 43% said it is excellent & just 2% of people said that it is
satisfactory.
Q8. Which features you like most in Loan segments of SBI?
LESS PAPER WORK 3% (2)
ATTRACTIVE INTEREST
RATE
35% (28)
TRANSPARENCY 20% (16)
SIMPLE AND FAST
PROCESSING
2% (2)
LONGER REPAYMENT
PERIOD
40% (32)
TOTAL NO. OF PEOPLE 80
50. 49
Most of the people like the attractive interest rate & longer
repayment period. It’s easier for people to repay the whole loan amount
with its interest with low interest rate and with longer repayment period.
51. 50
Findings
Suggestion & Recommendation
Conclusion
PROJECT FINDINGS
From this project it is found that SBI advance product having the
1st place in the market at Malad(W), Mumbai, there is a great
opportunity to compete with ICICI Bank & to retain its customer
by fulfilling the requirement of customer in SBI Loan product.
It has been observed that approximately 85% correspondents are
using Loan productof SBI and 15% are not using any type of Loan
productof SBI in Malad(W), All of SBI customers are satisfied
with the services provided by the bank.
Many of these customers satisfied with the low interest rate and
longer repayment period of the Loan product.
52. 51
Most of the customers at Malad(W), prefer to take loan from SBI.
Approximately 43% of Loan product users said that the service of
SBI in Loan product is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are
not able to know about the service & features of SBI Loan product.
Most customers are shifted from other bank’s Loan product to SBI
because of hidden charges, high interest rate, less repayment
period.
Government employees are more concern than private employees
for Loan product.
REASON FOR HIGHLY USE OF SBI LOAN PRODUCT
LESS PAPER WORK
ATTRACTIVE INTEREST RATES
TRANSPARENCY
SIMPLE & FAST PROCESSING
LONGER REPAYMENT PERIOD
QUICK PROCESSING
53. 52
Suggestion & Recommendation
Recommendation:
Customer awareness Programme is required so that more people
should attract towards Loan product.
If there are any kind of hidden charges than that must disclose to
customer before giving loan to them.
SBI must take some steps so that customers can get their loan in
time. Like phone verification by customer care that one customer is
got their loan on time or not .It must be before a certain date so
necessary steps can be taken.
54. 53
SBI should more concern about physical verification rather than
phone verification so it will avoid fraud or cheating.
Loan product selling agents must not give any type of wrong
information regarding Loan product.
For the better service new offers would be require.
SBI customer care should more concern about the fastest
settlement of customer problems.
Beforededucting or charging any monetary charge SBI must consult
with customer.
Agents should be trained, well educated & proper trained to
convince the people about different advance product.
It is the duty of the bank to disclose all the material facts regarding
Loan product, like interest charged, repayment period, other types
of charges, etc.
Special scheme should be implemented to encourage both customer
and agents.
The bank should increase the period for repayment of loan.
SBI should more focus on Retaining existing customers.
SBI must focus on Segmentation based on customer knowledge
Productoffering based on customer demand.
SBI must take feedbacks of customers regarding features &
services.
Suggestions given by the consumers at the time of
survey:
There is more time period for repayment of education loan.
(Rajesh Amankar)
55. 54
Education loan should be providing to private college also which is
not under AICTE or any kind of University.
(Anand Shinde)
SBI should take steps to solve customer problems immediately.
(Nimesh Shah)
Agents should be trained, well educated & propertrained to
convince the people about different advance product.
(Alok Sharma)
Loan sanction date should be according to customer convenient.
(Rahul Das)
A customer awareness programmed should be taking place in rural
area.
(Anil Banerjee)
Conclusion
From the analysis part it can be conclude that customers have a
good respond towards SBI Loan products in Malad(W), SBI are in 1st
position having large number of customers & providing good services to
them. The bank has a wide customer base, so the bank should concentrate
on this to retain these customers.
In present scenario SBI is the largest Loan productissuer in India.
Within a very short period of time the achievement made by SBI is
excellent, what a normal bank cannot expect, but it is being done by SBI.
56. 55
It happens due to employee dedication towards the organization, fastest
growing Indian economy, & brand image.
To be the largest Loan product issuer, SBI should focus on-
Launch Innovative product
Customized Loan products
Better customer services
Fastest customers problem solving techniques
Customer retention
Apart from all the above, SBI believe in providing good customer
services to their customers which is a key factor for success in future.
Questionnaire
Name - _____________________________________
Occupation-__________________________________
57. 56
Contact Detail -_______________________________
Q. On which bank you depend for your regular transaction?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)
Q. Are you aware of products & services provided by SBI?
a)YES
b) NO
Q. If yes is you aware of the Loan products of SBI?
a) YES
b) NO
Q. Which bank you prefer for taking loans?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)
Q. If you prefer SBI for taking loan than what influence you
to take Loan from SBI?
_______________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_______________________.
58. 57
Q. Which loan product of SBI you have used?
a) Home Loan
b) Education Loan
c) Car Loan
d) PersonalLoan
e) Other Loans, Specify( ______________)
Q. What do you feel about the services providing by SBI in
loan product?
a) Bad
b) Satisfactory
c) Good
d) Excellent
Q. Which features you like most in Loan segments of SBI?
a) Less paper work
b) Attractive interestrate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose anEMI base loan or an overdraft
f) Longer tenure lone for ease ofrepayment
g) Speciallydesign product for self employed
h) Any other feature, specify ( _____________ )
Q. Any suggestion you want to give for the betterment of
SBI Loan product.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_______________________.
60. 59
Bibliography
Text Books:
Solomon, Michael R. (2002),
Consumer Behavior:
Buying, Having, and Being. 5th Ed.
New Jersey: Prentice Hall
Wilson A. (2003), Marketing Research: An Integrated Approach
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth
Edition
Internet:
www.google.co.in
www.sbi.com
www.sbi.co.in
www.bnet.com
