SUMMER TRAINING PROJECT REPORT ON “A DETAILED STUDY OF BOI CAR LOAN”
BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES GOVERNMENT OF NCT OF DELHI, DELHI – 92 [AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI]
IN PARTIAL FULFILMENT OF MASTER OF BUSINESS ADMINISTRATION (MBA) – [2009-2010]
BY: [AMIT KUMAR NANGLU] ROLL NO. 03811403909
UNDER THE SUPERVISION OF: [Mr. GTVLN CHARYULU]
BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES GOVERNMENT OF NCT OF DELHI, DELHI-92 [AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI]
CERTIFICATE OF ORIGIN
This is to certify that Mr. AMIT KUMAR NANGLU the bonafide student of Master of Business Administration (MBA) Third Semester, in Bhai Parmanand Institute of Business Studies (BPIBS), Govt. of NCT, Shakarpur, Delhi, has worked under the able guidance and supervision of Mr. SK JAIN Sr. Manager of BANK OF INDIA ,MAYUR VIHAR PHASE -1 BRANCH. He was on training for the period of 6 weeks, starting from 22nd June, 10 to 2nd August, 10. This Summer Internship report on the topic “A DETAIL STUDY OF BOI CAR LOAN” submitted in partial fulfillment of the requirements of the program has the requisite standard for the partial fulfillment the post Graduate Degree in MBA. To the best of our knowledge, no part of this report has been reproduced from any other report and the contents are based on original research.
AMIT KUMAR NANGLU Roll No.03811433909 DEPARTMENT] M.B.A., Third Semester BPIBS,
IT IS A PLEASURE TO RECORD MY THANKS AND GRATITUDE TO PERSONS AND ORGANIZATION WHOSE GENEROUS HELP AND SUPPORT ENABLED ME TO COMPLETE THIS PROJECT WITHIN THE STIPULATED TIME PERIOD. MY SPECIAL THANKS ARE DUE TO Mr. SK JAIN (SR MANAGER) BANK OF INDIA , NEW DELHI FOR HIS ACTIVE HELP AND SUPPORT IN MAKING ME UNDERSTAND THE BANKING PRODUCTS & SERVICES. I ALSO THANK TO Mr. PRADEEP KUMAR AND BANK EMPLOYEES AND STAFF MEMBERS OF THE BRANCH FOR PROVIDING ME THEIR HELP AND COOPERATION AT EACH STAGE.
I AM GREATLY INDEBITED TO ALL THOSE PERSONS WHO HAVE HELPED ME IN SOME WAY OR OTHER IN THE COMPLETION OF THE PROJECT.
HOWEVER, I TAKE THE RESPONSIBILITY OF ALL MY SHORTCOMINGS.
A MIT KUMAR NANGLU ROLLNO.03811433909 M.B.A., Third Semester BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES,
1 Research Design 1.3 Quality policy of BOI 2.2 Methodology 1.2 profile 2.6 Awards 2.7 Detail Business Overview 2.8 Subsidiaries Of BOI 2.1 Introduction 2.2.Shakarpur.5 Mission 2.4 Vision 2. Delhi
Certificate of the organization Certificate of project guide Acknowledgement Executive summary
1.2 Data Collection Approach
CHAPTER -2 ORGANISATIONAL PROFILE
2 .9 Services Provided by BOI
.1 Objective of study 1.
RESEARCH STUDY OF MAIN TOPIC
3.1 3.2 3.3 3.4
Car Loan Scheme Car Finance Auto Loan Product Overview New Car Loan Documents and Procedure 3.5 Car Loan Process 3.6 Calculation of EMI 3.7 Comparison of Different Bank’s Car Loan Scheme
ANALYSIS AND FINDINGS
4.1 Analysis 4.2 Findings
CHAPTER -5 CONCLUSION AND SUGGESTIONS
5.1 Conclusion 5.2 Suggestions 5.3 Limitations
CHAPTER -6 BIBLOGRAPHY
7.1 Questionnaire 7.2 Project summary 7.3 Evaluation Sheet 7.4 Performance Appraisal Sheet
Bank of India is offering all the modern and essential facilities to the customers of the car loan.
The other banks , which offers car loan , as a separate product is SBI, Bank of Baroda ,Oriental Bank of Commerce, UCO Bank, Dena Bank, Indian Bank, ABN AMRO Bank, HDFC.
Rate of interest offered by respective banks are: • • • • • • • • Bank of India Bank of Baroda HDFC UCO Bank OBC SBI ABN AMRO Bank Dena Bank 8.75 %– 10% 10.50% 11.30% 11.50% 10.25% -10.75% 8% - 11.25% 15% 10.75% -11.00%
(These Rates may vary from time to time)
Bank of India, SBI, HDFC, Dena Bank, UCO Bank and Indian Bank provides car loan in easy way. Maximum amount of loan provide by different banks for car loan.
Bank of India - For Individuals: 24 times of monthly gross salary or Rs25lakhs whichever is lower.
Rs15lakh.Higher amount of loan may also be considered in deserving cases. For Business concern: Rs100lakh or Rs1crore • SBI • UCO Bank • Dena Bank
Processing fees of different banks for car loans
Bank of India
1. .Rs 20lakh
ABN AMRO Bank
Bank of India is providing maximum amount of loan among public sector banks.10% or Rs1000
1% or Rs1000
HDFC Bank Rs5000
.Rs7.50lakh or 85% .Rs 8lakh .
All branches of Bank of India are C.50%
ABN AMRO Bank
Bank of Baroda 0.B.T.S & R.G.T.
Bank of India is also providing Internet banking facility to their customers.M facility.S/NEFT enabled.25%
ICICI Bank Rs5000
Bank of India first among the nationalized bank to establish a fully computerized branches & A.
CHAPTER – 1 INTRODUCTION
OBJECTIVE OF THE STUDY
TO STUDY THE CAR LOAN PROVIDED BY BANK OF INDIA TO THEIR CUSTOMERS.
TO STUDY THE AWARENESS OF THE CAR LOAN AMONG THE CUSTOMER
MAKE A COMPARATIVE STUDY OF BANK OF INDIA CAR LOAN WITH OTHER COMPETITIVE BANKS
TO STUDY THE RULES AND DOCUMENTS REQUIRED BY BANK OF INDIA FOR CAR LOAN
. TO STUDY THE DETAILED PROCEDURE INVOLVED IN THE SANCTIONING OF CAR LOAN.
1 RESEARCH METHODOLOGY
Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The methodology includes the overall research design. Primary data was collected through Questionnaire. The objective is to examine all the issues involved & conduct situational analysis. The questionnaire has been drafted & presented by the researcher himself.2 METHODOLOGY
To study the project.e.. The methodology used in the study consistent of sample survey using both primary & secondary data.
Sample of 100 people was taken into study.2. and was collected.
Collection of data is done by Secondary Data & through
i. a Simple Random Sampling technique is used.1. The primary data has been collected with the help of questionnaire as well as personal observation. sampling procedure & fieldwork done & finally the analysis procedure. books. magazine. journals have been referred for secondary data.
The primary data has been collected with the help of questionnaire as well as personal observation. The methodology used in the study consistent of sample survey using both primary & secondary data.
.1. books. sampling procedure &fieldwork done & finally the analysis procedure. The questionnaire has been drafted & presented by the researcher himself.2. The objective is to examine all the issues involved & conduct situational analysis. The methodology includes the overall research design. magazine.2 DATA COLLECTION APPROACH
Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. journals have been referred for secondary data.
There are 29 branches/offices (including 3 representative offices) abroad. the bank has been in the forefront of introducing various innovative services & systems. the bank occupies a premier position among the nationalized banks. Beginning with one office in Mumbai. In business volume. Total number of shareholders as on 30/09/2009 is 215790. These branches are controlled through 48 zonal offices. Business has been conducted with the successful blend of traditional values & ethics & the most
While firmly adhering to a policy of prudence & caution. 1906 by a group of eminent businessman from Mumbai.
The bank has 3101 branches in India spread over all states/union territories including 141 specialized branches.INTRODUCTION
HISTORY OF BANK OF INDIA
Bank of India was founded on 7th September. with a paid up capital of Rs50lakhs & 50 employees. The bank came out with the maiden public issue in 1997 & follow on qualified institution placement in February 2008. the bank has made a rapid growth over the years & blossomed into a mightly institution with a strong national presence & sizable international operations. The bank was under private ownership & control till July 1969 when it was nationalized along with 13 other banks.
When it entered into an agreement with the Bombay stock exchange (B. Paris in 1974. It is an association that has blossomed into a joint venture with B. Hong Kong.M facility at Mumbai was back in 1989.82% of bank’s total business. & Singapore. The bank has sizable presence abroad.S. Paris.O.modern infrastructure.I shareholding L.
The bank association with the capital market goes back to 1921.T.S. & also the 1st to open a branch in Europe.S. called the B.E) to manage the B. It pioneered the code system in 1982. Tokyo. The bank is also a founder member of SWIFT in India.E clearing house. New York. Bank of India was the 1st Indian bank to open a branch outside the country at London. for evaluating/rating its credit portfolio. The international business accounts 17. with a network of 29 branches (including 5 representative offices) at key banking & financial centre VIZ London. in 1946.
.T.E.D to the stock broking community. The bank has been the 1st among the nationalized banks to establish a fully computerized branches & A.
1989: Established BOI Shareholding Ltd – A JV with Bombay Stock Exchange (BSE) TO manage Clearing House of BSE.53%. 2004: Ranked 25th Among India’s Top 200 Companies by D&B. 1950: Opening of Tokyo Branch:. Shareholding diluted to 76.1st Indian Bank to open a Branch Overseas.Miles Stones:
1906: Group of Eminent Businessmen Establishes the Bank. 2003: Ranked as India’s Most Trusted Services Brand Consecutively for 3 years by AC Nielsen ORG – MARG.1st Indian Bank to open a Branch in Japan.
. 1946: Opening of London Branch:. 1969: Nationalization along with 13 others Banks – Branch Network: Indian: 207 & Foreign: 12. 1997: Launched maiden IPO – Govt.
2008: Surpassed Landmark of INR 20bn in Net Profits.2007: Surpassed Landmark of INR 10bn in Net Profits.
. 2009: Surpassed Landmark of INR 30bn in Net Profits.
are committed to become the bank of choice by providing
SUPERIOR PROACTIVE INNOVATIVE STATE OF THE ART Banking services with an attitude of care & concern for the customers & patrons.QUALITY POLICY OF BANK OF INDIA
We at Bank of India.
mass market & rural market”. customers & to provide cost effective developmental banking for small business.
.VISION OF BANK OF INDIA
“To become the bank of choice for corporate medium business & Up market retail.
& in so doing. to others in our role as a development bank. meet the requirements of our stakeholders”.MISSION OF BANK OF INDIA
“To provide superior.
. responsive services. proactive banking service to niche market. globally while providing cost effective.
FE-EY most efficient Public Sector Bank Awards 2009. Under top service brands – 8th.AWARDS ACHIEVED BY BOI
Bank of India wins dun & Bradstreet award for the best public sector bank category 2010.
CIO green information technology award.
Best performance in western zone under the rural employment generation program.I.
Bank has been rated by the Economic times/The Nielsen company survey as “the most trusted brand”(MTB) 2009 as follows-
• • •
Under the PSU Banking Category – 2nd next to S.
NDTV Profit Business Leadership Awards 2009 – Best PSU Bank. Best Bank under Banking Category.B. The Debuntant – 1st time in top 100. The award for the most efficient public sector banks conferred by Dalal Street.
938crore and a growth of 21%. Including the business of foreign branches at London.079cr
Total Business(Amt Rs.cr.)
. The bank’s global business amounted to Rs4.31779crore as on march31. New York. Singapore.01. Tokyo. 2010 registering an absolute accretion of Rs 56. Hon Kong.
2nd Rank for Excellent Performance in Lending to Medium Enterprises also.
DETAIL BUSINESS OVERVIEW
Business: domestic business of the bank increased to Rs 3. ’Best Performing Bank’ for covering maximum number of Micro & Small accounts under collateral Free Lending Scheme of CGT MSE. Paris.
SHARE HOLDING PATTERN
(%) As on June 31. 2010
75%.and a growth of 21% over previous year.
Total Deposit (Amt Rs.054cr.2010 showing an absolute accretion of Rs 40.RESOURCE MOBILISATION
Total deposits of the bank amounted to Rs 2. Cr)
.29762cr as on march 30. The share of low cost deposits (current and savings) in total domestic deposits stood at 31.
These loans are provided by bank on very easy terms and condition with less paper work which attract people to borrow money to fulfill their requirements. The following figures show the amazing growth in advances sectors.
.(As on 31st March 10)
TOTAL ADVANCES IN INDIA
In recent years the advances segment grow very quickly.
TOTAL ADVANCE S
SUBSIDIARIES INFORMATION ABOUT SUBSIDIARIES.
. JOINT VENTURES & ASSOCIATES
BOI SHAREHOLDING LTD.
I shareholding L.E to manage the clearing house activities of the exchange.(B.O.S.S. B.secs through an integrated computerized system.S.E) handled by the bank.13lakh earned during F.L earned a net profit of Rs309.D (NSDL) & Central depository services (India) L. the company also extends depository services to member brokers of the stock exchange & the retail investors.Bank’s association with Bombay stock exchange LTD.25lakh during 2005-06 as against Rs152.Y2004-05.I. The company is carrying out the demat rolling settlement on T+2 basis of the exchange through the national securities depository services L.
.T. besides handling settlement related work of the exchange.O.. During 200405 the company commenced new business activity i.I shareholding LTD.S. as a joint venture with B.e franking of stamp documents. which has proved to be highly lucrative & has been contributing significantly to the revenues of the company.T. With a view to optimizing use of its trained manpower & sophisticated I. bank setup B.D are likely to get transferred to a clearing corporation in future.E) spans over a period of more than 8 decades with the clearing & settlement functions of the Bombay stock exchange LTD.Y 2005-06 & final dividend of 45% taking total dividend for F.T.D.T.O. the clearing & settlement function of B. During the year. (B.Y2005-06 to 60% as against 25% dividend paid during the F.D (CDSL) efficiently & also the settlement of G .T infrastructure. Later on 1989. Mumbai & its transformation in to a corporate entity Viz the Bombay stock exchange L. with the corporatization of the stock exchange.
2.T.D from the specified undertaking of the unit trust of India with this acquisition STCI hopes
.T.Y-2005-06.D (STCI) is one of the primary dealers in the country enjoying the highest credit rating of P1+ by Crisil & A1+ by ICRA for short term debt instruments. The year 2004 – 05 witnessed a sudden & swift hardency of interest rates & narrowing down on margin in trading & glit securities as such all major PDS including STCI incurred losses from operations. Securities Trading Corporation of India L.O.T. the company incurred a loss of Rs97cr during F.95% stake in its equity. L.T.T.I Mutual Fund
Securities trading corporation of India L. Star Union Dai-Ichi Life Insurance Co.T.I securities L. The bank is the single largest stake holders of STCI with 29. During the year STCI also successfully bid for acquiring the U.D Securities Trading Corporation of India L. For the 1st time in its history.Y-2004-05 with diversification plan & strategies. the company made a quick turn around & earned a net profit of Rs24cr during the F.
26% by Dai-Ichi-life & 23% by union bank. The company is well advanced in preparation for setting up office. services. among others envisages. L. The company application for license is under IRDA’S consideration. Bank of India & Union bank of India have a strong nationwide network of more than 5000 offices. which shall provide a sound distribution channel with a wide reach which is the key to the success of an which is the key to the success of an insurance venture.T. depository services etc. & the Dai-Ichi mutual life insurance company a leading Japanese company in the life insurance market. putting up the team & other infrastructure. The joint venture company with the strength of the domestic partners in the Indian financial.
STAR UNION DAI-ICHI LIFE INSURANCE CO L.T. portfolio mgt. a capital stake of 51% by BOI. The joint venture company would have initial paidup capital of Rs250. commodity trading.D Bank of India & Union bank of India two leading public sector bank in India.00cr. to be a strong player in the Indian life insurance market in a short time.D. has been incorporated/registered with the registrar of companies. star union Dai-Ichi life insurance co. for undertaking life insurance business in India.to mark its presence in the field of equity trading. sector coupled with the DaiIchi-life’s strong domain expertise is expected. have floated a joint venture company. 2007 & will be a Mumbai based company. Maharashtra on 25th September. The company. the company aims to develop various products to serve all strata of the society. The joint venture agreement. More then 48 million strong banking customer base of
Dai-Ichi. it has more than a venture of experience in life Insurance business. share asset mgt.life is a leading player in the life insurance segments in Japan & is one of the top 10 life insurers in the world & the second largest life insurance company in Japan. Both the domestic partners are in the process of implementing GOVT OF INDIA initiative of financial inclusion & their pan India network. star union Dai-Ichi. Established in 1902.life insurance company L. promising value to all stake holders. promises to be a new stair on the horizon of the India life insurance scene.
. It has sound product knowledge.the 2 banks provides ready scope of cross selling of insurance products. skills & strong operational capabilities to manage life insurance the best insurance JV partner on the domain side.D is also committed to providing partners are in the presence of insurance to rural & weaker/social sectors. The 2 banks have strong brand equity and command high level of trust among their customers & people at large.T.D. With the strong brand & commitment of the partners. of branches gives the company a natural edge in catering to these sectors effectively. Additionally the regional rural banks sponsored by the 2 banks have more than 1400 branches to tap life insurance business in the rural areas.T. Star union Dai-Ichi-life insurance company L.
Saving Deposit Scheme 4. Star Sunidhi Tax. 3. 2. Super Current Deposit plus Account. against fraud and other misuses of the banking systems. member of the public and ourselves. Star Diamond Saving Account.
Bank of India Current Deposit Plus. we will satisfy ourselves about the identity including verification of address of a person/s seeking to open an account. 2. BOI Saving Plus Scheme
BOI “CURRENT ACCOUNT”
1.Services provided by Bank of India
Personal Banking Bank of India “Basic Savings bank” Account
These accounts are designed to help the individuals (personal customers) to inculcate the habit of saving money and to meet their future requirement of money. Savings bank Accounts are very popular. As required by law.
. to assist in protecting the prospective customers. It help the customers to keep minimum cash at home besides earning interests. The amounts can be deposited/ withdrawn from these accounts by way of Cheques/withdrawal slips/ATMS. while opening this account. These accounts can be opened by eligible person/s and certain organization/agencies (as approved by the Reserve Bank of India (RBI).
Partnership Firms. Trusts. Private & Public LTD Companies. Societies.O Star Mortgage Loan
.3. HUFs/Specified Associates.
Star diamond & Star Diamond plus Current Account.
BOI Term Deposits Schemes
Double Benefit Deposit
Fixed Deposit Receipt Short Deposit Receipt Quarterly Income Certificate Monthly Income Certificate Recurring Deposit
BOI Retail Credit Scheme Star Auto Fin Scheme Star Educational Loan Star Holiday Loan Star Home Loan Scheme Star I.P. can open Current Accounts etc.
Loan for Tax Return Prepares (T.
Credit Guarantee Fund Trust Scheme Micro & Small Enterprises.S
Laghu Udyog Suvidha Scheme(SLUSS).P. Financial assistance for setting up Akshay Urja Shops.
Bank of India – Swarojgar Credit Card (BOI–SCC)
BOI Star Channel Credit Scheme for financial assistance to distributors & super stockist of medicines.P). Small & Medium Enterprise & O.R.
Star Mortgage Loan (For Farmers Arthias & Dealers of Agricultural Inputs ) Star Personal Loan Star Pensioner Loan
Star Mitra Personal Loan (A Physically Challenged)
Star Women Gold Loan Scheme
Bank of India – Pensioners Credit Card Scheme for extending Loan facility against pledge of gold coins) Ornaments.
BOI Online Service
Mobile Banking & Payment. Online ASBA IPO.
Star e – Remit. Gold Business.
Online Trading in Shares.
Internet Banking. Online Internet Bank Fund Transfer.
. 2FA/ Start Token. Book Rail Ticket. Star Dhanvantri Suvidha Scheme. Book Air Ticket. BOI – Artisans Credit Card (ACC). Locker Facilities. Central Excises.
Bank of India Rupee Travellers cheques. Services Tax. Retail Credit. Direct Tax.
BOI Credit Cards
India Card. Gold International Credit Card.
. Visa Electron Debit Card. Taj Premium Card.
Priority Sector Schemea) Credit assistance to women entrepreneurs in tiny & SSI sector. c) Credit facilities to women entrepreneurs under various Govt. Bank of India provides the independent women of today a spectrum of financial facilities. exclusively to women for their Empowerment are as under:-
Star Women Gold Scheme. sponsored schemes like
Prime Minister’s Rozgar Yojana(PMRY) Swarnjayanti Gram Swarozgar Yojna(SGSY) Swarnjayanti Shahari Rozgar Yojna (SJSRY)
. the following additional facilities provided to women entrepreneurs. The facilities provided by the bank.
Besides the above schemes for women. b) Credit assistance to women beneficiaries in other priority sector schemes.Women
Financial Independence for women is now within easy reach with support of BOI.
716 390 422 17.921 1.326 6.810 7.472 52.86% 29.941 25.869
12.256 1. Scheme for Liberation & Rehabilitation of Scavengers(SLRS) Interest Concession in respect of loan to women beneficiary.284 18.653
Priority Sector Credit:
Particulars As on 31st March 2009
As on 31st March 2010
Growth Growth in in Amount Percentage
Agriculture 16.972 Small Enterprises Housing Education Total Priority Sector 5.68%
41.343 1.12% 25.125 10.11% 43.11% 7.
Bank of India harnesses continued support to the agrarian society by providing adequate financial facilities to farmers for meeting short-term working capital requirements. 1. BOI Shatabdi Krishi Vikas Card. 2. Star Bhoomiheen Kisan Card (Star - BKC) 3. Bank of India –(Samanya Credit Card) 4. Kisan Credit Card. 5. Kisan Samadhan Card.
Agricultural Credit Schemes
Farm Mechanization. Minor Irrigation. Dairy Development.
Scheme for financing Commodities held in the form of warehouse Receipts.
National Crop Insurance Scheme (India).
KVIC’S Margin Money Scheme
Scheme of Financial Assistance for Setting up Kisan Sewa Kendras.
Senior Citizens Scheme Bank of India has introduced special loan schemes for senior citizens with low interest rates such as personal loan scheme for ”Pensioners” to meet their immediate requirements such as Medical Expenses. The scheme helps in realizing the vision of serving people for a better quality of life. “Depositor” means an individual Who has attained the age of 60 years or above on the date of opening of an account under the provisions of these rules, and by whom, or on whose behalf, money is deposited in an account under these rules. A depositor may open the account in individual capacity or jointly with spouse.
Bank of India extends needful assistance for working capital requirements to self-employed professionals. This is aimed to enhance professional strengths in terms of business purposes.
Non – Resident Indians can open accounts under this scheme. The account should be opened by the Non-Resident account holder himself and not by the holder of power of attorneys in India.
NRE accounts can be opened by remittances from abroad in any convertible currency or from transfer of funds from existing NRE/FCNR accounts held by any person with any Bank in
which are of repatriable nature in terms of general or
. The remittances received in foreign currency for opening of NRE accounts will be converted into Indian rupees at the prevailing exchange rates.India.S. Pound Sterling (GBP) and Euro. These accounts can be maintained under Savings/Current and Term depositing schemes. These accounts can be opened at all branches of Bank of India. Dollar (USD). Accounts can also be opened during temporary visits of NRIs to India against tender of foreign currency traveler cheques/ notes and coins.e. Australian Dollar (AUD) & Canadian Dollar (CAD). The account should be opened by the non-resident account holder and not by the holder of power of attorney in India. These accounts can only be opened with funds remitted from abroad in convertible foreign currency through normal banking channels.
Non-Resident Indians can open accounts under this scheme. These deposits can be maintained in 5 designated currencies i. U.
special permission granted by Reserve Bank of India.
Special FD Scheme
Regular Interest every month or quarter
. International Postal Orders cannot be accepted for opening or credit to FCNR accounts. GBP. which are authorized for handling foreign exchange business. If remittance is received in any currency other than USD. These accounts can be maintained with our branches. it will be converted into one of the designated currencies of remitter’s choice at the risk & cost of the depositor. AUD & CAD. Transfer of funds from existing NRE/FCNR accounts. (List of branches authorized for handling foreign exchange business). Funds for opening accounts under the BOI Global Foreign Currency Deposit Scheme or for credit to such accounts should be received from – Remittance from outside India or Traveler cheques/currency Notes tendered on visits to India. EURO.
Interest is credited regularly.
Minimum deposit of Rs 10000/.
Depending upon your choice. the original amount of fixed deposit remains intact and paid at the time of maturity.
Facility of automatic renewal of deposit on maturity is available. However.or any higher amount is accepted under the scheme for any period from 12 months to 120 months. the scheme offers regular income to you by the way of payments of interest on monthly or quarterly basis.
RESEARCH STUDY OF MAIN TOPIC
CAR LOAN SCHEME
6% 2010 1218 38. So it becomes a need of every human being but some people does not have the capacity to pay a huge amount at a time but they can pay the price in installment so for these people many banks offer car loans schemes. in 2009 to 1218 cr. Now a days it become a status symbol in society. needs help.
Star Auto Fin Loan
2007 AMOUNT GROWTH 425 20% 2008 586 37. Now days car is become one of the basic need of man but buying a own car become a dream for man because of its prices.
People are appreciating car loan scheme of Bank of India and this can be proof by figures which show that the total amount of car loan scheme is increase in 2007-2010 amazingly.88%.88%
The car loan amount increases from 877cr. In which they can buy car and pay its price in installment. So Bank of India helps people to get car & increase in social status. in 2010 which accounts a growth of 38.A person wants certain luxuries for enjoying his life and a car is one of them. a car gives him convenience to travel one place to another.88% 2009 877 22. In this condition Bank of India take a Initiative to provide easy car loan to those people who are willing to buy a own car.
So in fulfillment of this dream man.
. Almost everyone make easier to purchase a car.
For corporate Rs 100lakh after presenting required documents. whichever is lower.
It Provide loan for all types of Cars i. A.
TYPE OF CAR FINANCED
Bank of India provide all type of car loans which comes under the purview of Bank guidelines. B. in case of individuals.e. Corporate include self employed. C segment. term & conditions and the credit limit which is 24 times of the monthly net salary or Rs 25lakh.
Some Car Companies
• For Non-Resident-Indian Rs 25lakh. Private Ltd.
• For Imported Vehicle Rs75lakh. Public Ltd etc. Partnership firm.
Maruti Suzuki. Beat. Eco
Car Loan 37.Sx4.6%
2010 38. Cruise.Alto. Wagon-R.Logan. Gypsy.Accent. Swift. Scorpio Tata. Indigo.88% Growth %
Honda. Zen. Honda City
Mahindra. Sumo GM – Spark.Civic. Magnum
THE TOTAL GROWTH IN AUTO LOAN SEGMENT FOR LAST THREE YEARS:-
2009 22. Van.
5% N.A Rs1000
1.30% 90% 15% Rs20lakh
1-7yrs 0.A 5%
.COMPARITIVE ANALYSIS AMONG DIFFERENT BANKS FOR CAR LOANS
Private banks Rate of Interest Max Loan Amount Loan Tenure Processing Fees Prepayment CHARGES
ICICI Bank HDFC Bank ABN AMRO Bank PSBs SBI
1-5yrs Rs25005000 1-7yrs Rs2150Rs3650 N.
75% Rs 8lakh 11. Eligibility Individual as well as Business Concerns (Corporate or noncorporate)
Amount of Loan
.00% 10.75%.50La kh 11.50 10.00% 11.B.10% or Rs1000 1-5yrs Rs1000 NIL
1-5yrs 1%or Rs1000 1-5yrs 0.Rs10Lakh 1-7yrs 0.5%
10.C 8. Either you can purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles that are not older than 3 years.25.11. Finance will also be provided for purchase of vehicle of indigenous/ foreign makes.30%
0.25% 1-6yrs 1.00% Rs 15Lakh 11.50% 85% Or Rs7.75%
Car Finance EMI Calculator
Own a vehicle with the friendliest and most convenient car loan.Rs25lakh 10.25% Bank of India DENA Bank UCO Bank Indian Bank O.
the spouse shall stand as a guarantor.R. It will be registered in the name of the borrower jointly with the Bank.
For Business Concerns: Loan amount to Rs100Lakh.04.11.
BPLR minus 1.e.00% i. if employed or third party guarantee is acceptable to the bank. Margin
Up to Rs 2. For Imported Vehicles: Loan amount to Rs75lakh.
For N.00% TENURE For Loans Repayable in/upto Less than 3years Rate of Interest @ percent p.I: Loan amount to Rs25lakh.
Processing is nominal.2009) BPLR at 12. In such cases.00lakh – 5% Rs2lakh to Rs10lakh – 10% Above Rs10lakh to Rs25lakh – 15% Above Rs25lakh – 25%
The vehicle purchased with the amount of loan is to be hypothecated to the Bank.00%
. whichever is lower income of spouse can be taken into account for determining loan amount. Guarantee of spouse.a.
Rate of Interest Rate of Interest (For loans granted on & after 1.For Individual: 24 times of the monthly net salary or Rs25lakh.
e.50% i. and thereafter. Auto Loans The bank offers auto loans at fixed interest rate as well as floating rates also for financing automobile and used car purchases.
.11. Profit Interest earned on the loan is its profit. the advance will be allowed to him/her from the bank by paying the entire price of the vehicle to the seller directly on behalf of the borrower.50%
Repayment For new Car/Van/Jeep: The loan amount together with
interest is to be repaid in 72 Equated Monthly Installments (EMIs)
For old Car/Van/Jeep: The loan amount together with interest is to be repaid maximum in 36 Equated Monthly Installments (EMIs) For Imported Vehicles: The loan amount together with
interest is to be repaid maximum in 84 Equated Monthly Installments (EMIs)
The intending borrower will be required to settle the transaction for purchase of vehicle needed by him/her with the seller and will be required to deposit the difference of the cost of the vehicle to amount of loan will be required to deposit the difference of the cost of the vehicle to amount of loan.Above 3 years
BPLR minus 1.
mutual fund units and against bonds issued by the RBI. partnership firms.
Unsecured personal loans are offered at fixed rates to specific customer.
Loans against Securities
Loans are offered against equity securities. including salaried individuals and self-employed professionals. who satisfies the credit worthiness of the applicant. NRI. Listed below are some of the key product features:
. approve and disburse the loan and also mark a lien on the vehicle as a security The lien on the vehicle has to be a first lien.
AUTO LOANS: PRODUCT OVERVIEW
Auto loans are the installments loan for the purchase of new and used vehicle to be used for personal business or commercial purpose. sole proprietors. In addition to the funding of domestic assets. it also finances imported assets for which the bank opens foreign letters of credit and offers treasury services. bank guarantees and trade advances to customers who are transportation operators. private and public limited companies. The auto loan programmer is a retail asset product and can be availed by the individuals.Commercial Vehicles and Construction Equipment Finance
The Banks provides secured financing for commercial vehicles and providing working capital.
System and Process ------------.Decentralize approval and
disbursal with all loan being booked fineness/ as per process set out time to time. Private and Public Companies.Salaried individuals.New and Used Car Standard product -----------------. model and tenure. EMI comprises of both principal and interest components. NRI.12-72 months Eligible borrower --------------------.
Loan type ------------------------. Sole Proprietorship. SI /ECS will also happen centrally.EMI in advance.Credit policy will lay
down the borrower eligibility criteria/approval process / deviation policy as approved by the central risk unit.The ratio of
the maximum amount of loan to the value / cost of the car varies with the vehicle make.
Equated monthly installment (EMI) ------------.PDC’s stored and banked centrally.Product------------.The amount
paid by the customers each month towards repayment of loan extended to him.
Security / Collateral ----------------.
Credit approval process ------------------. Approval authorities may be delegated to bank employees/ bank associates including outsourcing agencies.Rs10000 Tenure ----------------------------.Asset financed will be
hypothecated / lien marked in favors of BOI bank.
Loan to value LTV/ Extent of funding-----------. EMI in
Minimum loan -------------------. Operations and collection policy will be circulated separately. Partnership firms. Banking -----------------.Term loan with hypothecation
marked in favor of BOI bank.
As per approved rates from time
Type of car ----------------------------. Competitive rates.Generally Bank of
India prefers to give loan to those customers who are residing near to the bank.
Use of vehicle --------------------------. As it feel easy to contact the customers and for communication also.As per list of cars approved
by the bank. please refer to various product and LTV matrix/ chart. However in some exceptional cases the bank can loans to those customers who are not residing near bank. commercial use.
Approved location -------------------------. official. Appointment of external agency for chronic and serious defaulters and repossessions
Interest rates ----------------.In-house and agency based
collection through Tele calling and field collection for soft buckets. The tenure range is 12 – 72 months.
Finance all passenger cars & most of the multi – utility cars.Vehicle firmament
should be personal.
Documentation Requirements Application Form Income Documents (last 3 years)
Self employed Individual
Private Ltd Company
Public Ltd Company
Yes Last 3 Years ITR or Form no. 24 – 48 hours to process the loan after we receive complete set documents. staff members & retired employees of the bank & pensioner drawing pension from the bank. Loan up to 90% of the invoice value. Prepay the loan anytime without any prepayment charge. Easy documentation.16
Yes Last 3 Years Audited B/S & P&L
Last 3 Last 3 Years Years ITR & ITR & Audited Audited Accounts accounts
Last 3 Years Audi B/S & P&L A/C
. Processing charges waived for senior citizens.
No. CHA -2. Cir. L-515 as per Br. L-515 as per Br. 94/186. No. Cir. 6. Letter addressed to Insurance Company. Comprehensive Insurance Policy.A/C
Bank Statement (Last 12 months) Proof of Identity Proof of Residence Proof of Office Address Legal Documents
Yes Yes Yes
Yes Yes Yes
Yes Yes Yes A Letter Signed by all the Partners accepting the Loan
Yes Yes Yes MOA or AOA
Yes Yes Yes MOA & AOA
1. 97/114 (Where CBD -13 obtained) 5. OD -194 (Guarantee Deed) 3.
. 2. 4.
Valuation certificate for Second hand vehicle from approved valuer. Where guarantor’s vehicle is taken as collateral security. obtain another CHA – 2 with modification. 11. 8. Registration of bank charge on the vehicle with regional transport authority.
. Undertaking to inform change in constitution/address etc.7. 10. 12. 9./ Service charges/Insurance Premium. A letter of authority by the borrower to debit the loan/SB A/C with Intt. Transfer form in blank in duplicate.
CPV should be done at office and main partner’s residence.60la residence applicant or rented and at office. Partnership Firms. for at least 2years Office/Factory/Works hop Should be owned by the firm or main partner or rented for at least 2years Minimum Landline phone at Income office./ Public Ltd Co.
Residence/Office Residence should be owned by the applicant or rented for >1 years. h.60la kh. Minimum Landline Income phone at of office. c.applicant. or director or rented For at least 2 years
CPV should be done at office and main director’s residence.
Office/Factory/Works hop Should be owned by the Co.
Be done at Residence and office of applicant and co-applicant. Self-employed Individuals.
CPV Requirement CPV should
Minimum Applicant should own Income Landline of Phone at Rs1.5lak residence and at office. of Rs0. Public and Private Limited Companies
Borrower Type Salaried Individual
Age 21 at beginni ng To 60 at the end of the tenure.
Self Employed Proprietorship
21 at beginni ng to 65 at the end of the tenure NA
Residence/office/Fact Minimum Applicant ory should own Income Landline / workshop should be of Phone at owned by the Rs0.60la c. Ltd Co. Rs0.
CPV should be done at residence and office of applicant and co.For Salaried Individual.
FEES and CHARGES:-
Description of Charges Cheque bouncing charges Stamp Duty Late Payment Penalty Processing Fees Other Charges
New Car Loans Rs 100 At actual More than 2% per month 1.10% or Rs1000 -
Listed below are some the key product features:
Features: Choose any car manufactured in India within a certain range.USED CAR LOANS
Used car loans are installment loans for the purchase of used vehicle to be used for personal. business or commercial purposes. The used car loan Programmes is a retail asset product & can be availed by the Individuals.
Borrow up to 2times your annual salary(for salaried professionals) And 2times your annual income (for self employed professionals) Available for almost all car models at attractive interest rates.
Flexible repayment options. approve and disburse the loan and also mark a lien on the vehicle as a security. The bank would assess the credit worthiness of the applicant. Borrow up to 70% of the value of the car. Sole Proprietor.
. Pensioner. Farmers. Partnership Firms. ranging from 12 to 36 months. Public & Private companies who satisfy the credit parameters set out in this manual. Repay with easy EMI’s. The lien on the vehicle has to be a first lien.
Documentation Requirements Application Form Income Documents (last 3 years)
Self employed Individual
Private Ltd Company
Public Ltd Comp
Yes Last 3 Years ITR or Form no. If you have had a Preferred Account or a Corporate Salary Account With Bank of India for than six months.16 Yes Yes
Yes Last 3 Years ITR & Audited accounts Yes Yes
Yes Last 3 Years ITR & Audited Accounts
Yes Last 3 Years Audited B/S & P&L A/C Yes Yes
Yes Last 3 Years Audited
B/S & P&L A/C Yes Yes
Bank Statement (Last 12 months) Proof of Identity
. you can get fast approvals on your loans with minimal documentation.
Criteria Salaried Self employed Age Partnership Company firm NA
21-60 21-65 at NA years at the end of the end of the tenure the tenure Minimum 1 year. Minimum 1 year. Partnership Firms. Public and Private Limited companies. of years in current residence
. Self-employed Individuals. NA
No.Proof of Residence Proof of Office Address Legal Documents
Yes Yes A Letter Signed by all the Partners accepting the Loan
Yes Yes MOA & AOA
Yes Yes MOA & AOA
ELIGIBILITY CRITERIA:For Salaried Individuals.
. Customers can pre-pay the entire loan amount before the agreed tenure. year must be profitable. Must be at residence & at office. of years At least 3years of in/ total Employment/ employm ent Business Min.
PRICING: Highly competitive.Min.
Last year & latest year must be profitable. At least 1 phone must be at business.
Gross Last year income of & latest Rs1. One phone at least in Business & one at residence of loan Executing partner.10% processing fee payable up front (Pl contact local sales manager for revised applicable rates).
At least 3years in Existence. income for cars
At least 3years in Business. 1.
At least 3 years in Existence.
Last year & latest year must be profitable. Must be at residence & at office.5lakh.
. This loan is different from star auto fin loan.10% Used Cars Rs2000 per case
Staff Vehicle Loan
Bank of India also provide car loan to their employees this loan is only meant for the staff members of bank at attractive rate of interest with longer repayment payment period.Fees and Charges:-
Description of Charges Cheque bouncing charges Stamp Duty Late Payment Penalty Processing Fees Other Charges Valuation charges
New Car Loans Rs 100 At actual More than 2% per month 1.
. • Above Rs80000 to Rs360000 at 12%pa.Details of Staff Vehicle Loan: Maximum amount = Rs360000 Minimum Amount = Rs80000 Margin = 10% Maximum repayment period = 15years Rate of Interest:• Up to Rs80000 at 8%pa.
with applicable LTV for relevant model Check Eligibilit y NO STOP
Check Authori ty
Yes Within Approval
Deviatio n Authority Approval
Case to be entered in LTS (Loan Tracking System) Product ”Four Wheeler”
.CAR LOANS-THE PROCESS
The process can be broadly shown as follows-
DSA/DEALER/O THER CHANNEL
Fax Application Form to CPA for Dedupe check
Shoot CPV at CPV Agency
CPA/Credit staff to Conduct Dedupe + Co-ordinate for CPV Report
Communicate REJECT to Branch
.Asset Staff to follow up for
• Conduct Telephonic Verification • Collect Preapproval documents • Fill out Approval Card • Soft Approval by BM/Cluster Head
Customer to submit agreement & S.
Branch to enter in LTS under new Product ”CAR Direct Approvals”
. • BM to sign Approval Card & send complete file to Assets office.• CPA/Credit Staff to communicate status to Branch. • CAR Sales Staff to arrange delivery/ disbursement & inform branch when distributed.
229 8.55 1.688.44 129.229 8.66 1.707.10 1.72 153.229 7.35 184.540.229 7.07 9229 9 9.58 1.33 192.752.229 7.229 8.948.89 177.30
.229 7.15 9229 1.58 161.27 1.41 9229 4 22.214.171.1240.260.670.02 1.817.437.014.78 121.42 1.84 9229 11 9.65 137.66 9229 2 126.96.36.1992.229 7.31 9229 3 9.812.411.21 1.721.476.666.CALCULATION OF EMI Case1 Normal case (when there is no advance EMI) Loan amount 200000 Tenure (months) 24 Interest rate 10% (Account IRR) EMI 9.97 169.081.13 9229 7 9.34 1.63 9229 10 9.64 1.012.41 145.72 9229 8 9.625.229 7.346.603.123.229 Advance EMI Month EMI Principal Interest Outstanding Cash flow 0000 -200000 1 9.229 7.625.080.882.69 113.229 8.370.552.86 9229 6 9.476.44 9229 5 9.
78 9229 19 9.77 9229 14 9.02 734.974.82 805.98 9229 13 9.95 9229 15 9.12 9.15 520.229 8.17 88196.10 36159.423.93 9229 18 9. Oriental Bank of Commerce and Bank of India and the details of the findings are as follows.229 8.564.229 9.229 9.26 -0.18 592.229 8.229 8.17 9229 21 9.16 943.927.494.229 8.152.002.97 79702.92 9229 16 9.229 8.853.81 62501.34 9229 24 9.285.71 448.229 8.229 9.83 104.636.229 8.32 27231.708.79 96620.84 53793.780.42 9229 23 9. State Bank of India.38 9229 Comparison of car loan scheme offered by other bank with Bank of India Almost every bank offers car loans.92 18229.06 9229 20 9.49 9229 22 9.229 8.08 151.67 301.
.07 226.354.19 71138.20 874. ABN AMRO Bank. I had compared the entire car loan scheme offered by HDFC Bank.11 9229 17 9.91 9152.73 76.229 8.077.28 45013.80 664.89 375.
The rate of interest charged by ABN AMRO Bank is as follows: In Case of New Car-15%.
STATE BANK OF INDIA:
. • HDFC charge processing fees of Rs2150 – Rs3650.
HDFC Bank offered car loan scheme with following features:-
• HDFC Bank Provide car loan individuals as well as business concerns also.30% • HDFC Bank Provide finance up to 90% of the total loan amount. ABN AMRO Bank charge 5% prepayment charge if the loan is paid before the tenure of the loan.
ABN AMRO Bank:
ABN AMRO Bank provide car loan to individual as well as Business concern also. • The rate of interest charged by HDFC Banks is as follows:• In case New Car :. ABN AMRO Bank Provide finance up to Rs20Lakh. • HDFC Bank Provide facility to repay the loan amount maximum in 7years.11.
8% For 2nd & 3rd year – 10% For 4th & 5th year . State bank of India provide loan which is repayable maximum up to 7years for new car & In case of old car it is 3years. State Bank of India provide loan to individual as well as Business concern also.00%
.25% For 6th & 7th year – 11.11.50% In case of old car Up to 3years – 14. The rate of interest charged by State Bank of India is as follows: In case of new car 1st year .
State Bank of India Provide a loan amount of Rs15lakh.State Bank of India offers car loan scheme with following features.25% Above 3 years – 15.
State Bank of India charge a prepayment charge of 2% in case loan is paid before the tenure of the loan.
75% & beyond 3years it charge interest of 9. Like when a people wants to financed his car worth Rs7Lakh & want to repay this amount in 3years then SBI (8%) & BOI (8.25% per annum.75%) charge lowest interest rates.25% interest rate on the other hand if a person
Oriental Bank of commerce provide loan up to 84months. But when a person wants to repay his loan in more than 3years then Bank of India is best because it charge only 9.ORIENTAL BANK OF COMMERCE
Oriental Bank of commerce Provide car loan to individuals as well as business concerns also. Comparison of different bank’s car loan schemes it gives result that Bank of India provides best car loan scheme because it provide loan up to Rs25lakhs for individual & for corporate it can finance up to Rs100lakh at very low interest rate.25%pa Above 3years => 10.75% Oriental Bank of Commerce finances up to Rs10lakh.75%pa In case of old car Up to 3years => 13. Oriental Bank of commerce charge interest rate as follows:In case of new car Up to 3years => 10. Like up to 3years it charge only 8.25% Above 3years => 13.
Moreover it provide maximum amount of loan 25lakhs among all public sector banks.wants to finance a car worth of more than Rs7lakhs then again only Bank of India offers him lowest rate of interest which is 9.
CHAPTER – 4
. So only Bank of India offers the best car loan scheme which suits almost every one & make easier to purchase a car.50% pa Up to 3years & after 3years it charge only 10.00% interest rate per annum.
RISK AND CONCERNS
. evolve innovative and diversified products to reach the customers in every nook and corner of the country. the bank will continue to focus on this segment.business intelligence. For better decision support system.ANALYSIS AND FINDINGS
As car loan is a profitable lending option due to continued good performance of the services sector. The bank is in final stage of rolling out data warehouse. The bank will continue to study the market requirements. management information system and decision making.
Further risks management system need to be brought to such a level of sophistication that the systems on their own generate adequate capital and liquidity cushions against economic and market distruptions. () No of People Bank of India SBI ICICI Bank HDFC Bank Other Banks TOTAL No. is paramount. therefore.
GRAPHICAL REPRESENTATION OF DATA
Q1. the bank has to clearly envisage its risks which can be managed effectively.Libralisation opens up various opportunities and at the same time it also increase exposure to risks. Risk management. On which bank you depend for your regular transaction. OF PEOPLE 30% 45% 8% 6% 11% 100
. Since risks have a direct and proportional relation with returns.
It has been observed that approximately 30% correspondents are using the services of Bank of India for their daily transaction. Are you aware of Products & services provided by BOI. Around 8% of people are using ICICI Bank for their transaction and only 6% & 11% of people are using HDFC & other Bank service respectively in Mayur Vihar Phase-1. Q2. a) Yes 70% b) NO 30%
. Around 45% of People are using SBI for their daily transaction.
.From the above data it is clear that most of the customers (Around 70%) of Mayur Vihar have the idea about the product & services of Bank of India.
Almost all the 68% people who have the idea about the advance products are the user of Bank of India products & services.
. a) YES 68% b) NO 32%
It is clear that most of the people have the idea about the advance product of Bank of India.Q3. If yes are you aware of the advance products (Loan segments) of BOI.
HDFC & Other banks for loan because they are working with the bank & it is easier for them to pay the interest because it is less as compared to other bank because they are the employees of that bank. Which bank you prefer for taking loans
a) b) c) d) e) BOI 51% SBI 35% ICICI Bank 3% HDFC Bank 2% Other Banks 9%
According to my sample size 51% of people prefer Bank of India for loan product. but some people prefer SBI. ICICI.
. If you prefer Bank of India for taking loan than what influence you to take loan from Bank of India
Most of the people said that they prefer Bank of India for taking loan because of the transparency & the lowest interest rate for any kind of loan product and it is easy to get loan from Bank of India as compared to other banks because less paper work is required & simple & fast processing is required.
OF PEOPLE 75
From the sample size 75% of people are using the BOI loan product. 19% of people took education loan for their children.
. 9% of people took personal loan. From the 75 people 43% of people took home loan from BOI.Q6. 21% of people took car loan from BOI. a) Home Loan 43% (32) b) Education Loan 19% (14) c) Car Loan 21% (16) d) Personal Loan 9% (7) e) Other Loans 8% (6)
TOTAL NO. Which loan product of BOI you have used.
a) Bad 0% b) Satisfactory 25% c) Good 55% d) Excellent 20% TOTAL NO. 55% of people said that the service provide by BOI is good & 20% said it is excellent & 25% of people said that it is satisfactory.
. All of them satisfy with the product provide by Bank of India.Q7. What do you feel about the services providing by Bank of India in advance product. OF PEOPLE 100
From this it is clear that the service provide by BOI in its advance product is good in between the customer.
It’s easier of people to repay the whole loan amount with low interest rates & longer repayment period.Q8.
a) b) c) d) e) Less paper work Attractive interest rate Transparency Simple & fast processing Longer repayment period
Most of the people like the attractive interest rate & transparency.Which features you like most in loan segment of BOI.
Bank of India is advertising their car loan by using print media also. SBI is a major competitor of Bank of India. Bank of India is trying to find better relationship with local dealers to increase to the customer database. Bank of India is offering various facilities to customers for taking loan. Bank of India also tries to make new Tie. Bank of India is having Tie –up with various Automobile companies eg.ups with other Automobile Companies (These Tie.FINDINGS
Bank of India is applying aggressive marketing strategy for car loan.
. (Tata Motors. Hyundai Motors) Bank of India is trying to Tie-up with some other Automobile Companies. Bank of India is using proper market channel to aware customer about car loan. Maruti.ups arrangement changes from time to time).
CHAPTER -5 CONCLUSION AND SUGGESTIONS
Highest loan amount in comparison of other banks. It involve a long series of steps and planning as suited to and decided by the bank itself.
It fulfills the dreams of the people having a car. It Provide easy car loan access if all required documents are prepared. lending process is not so simple.
It charge minimum processing fees moreover processing charges are waived for senior citizens. Better and timely quality of services and product diversification.
It provide car loan at lowest rate of interest in comparison to other banks. staff members & retired employees of the bank & pensioners drawing pension from the bank. Somewhere it Contribute in Indian economy by releasing the liquidity in terms of loans. abiding by the rules and regulations of Bank of India and RBI. But as studies throughout the project.
There are various type of car loans are being provided by Bank of India ranging from short – term to longterm to packing and like.
• Communication gap to approach right kind of people • No long term customer relationship. • List of defaulters • Bank of India is not providing services like refinance &overdraft
Bank of India should go for advertise car loan availability. Try to aware customer about car loan availability & procedure that how to apply for loan.
. during the time customer may dilute his plan of taking loan. he can be given some gift or some concession in interest rate that would be an incentive for others also to pay regularly. Try to maintain very good relationship with car dealers. Bank of India is having a large number of existing customers so they should convert their strength in opportunity.Negative Points
The bank take long processing time. for example if a customer is paying his EMI regularly.
More promotional schemes should be followed.
Newspaper. By making randomly surveys it should identify prospective buyers. nearest to your resident. Q. Finance is also available for purchase of Used Cars not older than 3 years.e.
Facility to access loan from anywhere i. Properly and timely solution of customer complaints. Bank of India should go for advertise car loan availability by using different media like T. Print media etc.
By declaring special loan scheme on festive seasons i. working place. Whether finance is also available for used cars? A.e. loan mela. in order to make more people aware of the car loan scheme.
APPENDICSES:Q. Who can avail car loan? A. Bank of India should also provide extra facilities like Refinance & Overdraft facilities which help in making new & retain existing customers & win the trust of the people.V. office. Q. Individuals and Business Concerns. How much loan can be availed under the scheme?
Whether the income of the spouse is also taken into account for determining the amount of loan? A. Q. For individuals. subject to maximum of 70% of the cost of the vehicle whichever is less. the spouse shall stand as a guarantor. In case of business concerns. The following documents are required to be submitted:
. loan together with interest is to Repaid maximum in 36 equal monthly Installment. loan amount shall be 24 times the net monthly Salary/Income. for old car. What will be the repayment period? A. In such cases. Yes. Interest is charged on reducing balance. loan amount can be up to Rs100lakh or Rs1crore. Bank of India Provide car loan for Indian Vehicle as well as for Foreign Make Vehicle. Amount of loan together with interest shall be repayable in 72 equal monthly installments. How much loan can be availed for Indian Make & Foreign Make Vehicle? A. Q. Q. However. Q. What formalities are to be completed for availing the facility? A. income of the spouse can also be taken into account for determining the amount of loan. Whether interest applicable is flat rate or at reducing balance? A. Bank Provide maximum amount of Rs25lakh for Indian make vehicle & Rs75lakh for Foreign Make Vehicle.A. Q.
Proof of Income 4.1. Proof of residence 3.
Performa Invoice of Car to be purchased
2. As they have lot of workload due to which Bank employees does not want to give information as they feel it is wastage of time.
. Detail of Guarantor
Due to Shortage of Bank Staff it is difficult to collect data from Bank employees.
CHAPTER – 6 BIBLOGRAPHY
E-CIRCULER OF BANK OF INDIA.COM NEWSPAPERS & MAGZINES.
BOI ANNUAL REPORT.GOOGLE.BANK OF INDIA.COM.
CHAPTER – 7 ANNEXTURE
Name. On which bank you depend for your regular transaction.____________________________________ Occupation. Are you aware of products & services provided by BOI.______________________________ Contact Detail. a) YES
. a) BOI b) SBI c) HDFC d) ICICI e) Other Bank.___________________________ Q1. Specify (_____________)
Q6. Which bank you prefer for taking loans a) BOI b) SBI c) HDFC d) ICICI bank e) Other Bank. a) Home Loan b) Education Loan c) Car Loan
. If yes are you aware of the advance products (Loan segments) of BOI.b) NO Q3. a) YES b) NO Q4. If you prefer BOI for taking loan than what influence you to take loan from SBI ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ _______________________________________________________________. Which loan product of BOI you have used.
Q7. a) Bad b) Satisfactory c) Good d) Excellent Q8. Any suggestion you want to give for the betterment of BOI advance product. ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ _________. a) Less paper work b) Attractive interest rate c) Transparency d) Simple & fast processing Q9.d) Personal Loan e) Other Loans.
. Which feature you like most in loan segments of BOI. What do you feel about the services providing by BOI in advance product.