Professional Documents
Culture Documents
A Study On Home Loans of ICICI BANK
A Study On Home Loans of ICICI BANK
BY
P.SIVA REDDY
ENROLL. NO- 5NB -11043
MBA-2005-2007
INC-GUNTUR
COMPANY GUIDE
Mr. BHARAT
ICICI BANK LTD
BEGUMPET, HYD
FACULTY GUIDE
CH. HYMAVATHI
INC
GUNTUR
DECLARATION
CERTIFICATE
This is to certify that the Summer Internship Project titled A study on
HOME LOANS OF ICICI BANK, a bonafide work of P. SIVA REDDY
is original and has been done under my supervision in partial fulfillment of
the requirement for the award of M.B.A for the period of four months from
15, April 2007 to 15, August 2007. This report neither full nor in part has
ever before been submitted for awarding of any degree of either this
university or any other university. I am pleased to say that his performance
during the period was extremely satisfactory.
Company Guide
Faculty Guide
Mr. BHARAT
Ms. HYMAVATHI
Hyderbad
Guntur
LETTER OF APPRECIATION
ACKNOWLEDGEMENT
: 5NB12043
Executive Summary
This Report is an attempt to provide a detailed analysis of the process
to get a home loan and the requirements to get a loan in ICICI Bank.
In my complete student internship program I met more than 40
customers and promoted ICICI Bank home loan products. During this
student internship program I came to know that most of the people r
showing to take a home loan but they are so confused what the necessary
requirements to get a loan.
However, my survery suggests that maximum number of people are
interested to take a loan but all are not aware of the products and the
process.. Employees and Business people are already taken home loans to
meet their financial requirements to construct a home ..
In my survey I found that 80% of people do not know how to get a
loan in a bank
Finally, creating awareness is very important to get good profits to the
company as well as to build good brand image in the minds of customers.
Contents
Indian banking system
15
Project
22
Findings
48
Recommendations
49
Conclusion
50
51
Objectives
52
Targets
53
Achievements
54
Limitations
56
Learning
57
BANKS IN INDIA
India has a well developed banking system. Most of the banks in India
were founded by Indian entrepreneurs and visionaries in the preindependence era to provide financial assistance to traders, agriculturists and
budding Indian industrialists. Indian banks have played a significant role in
the development of Indian economy by inculcating the habit of saving in
Indians and by lending finance to Indian industry.
The commercial banking structure in India consists of: Scheduled
Commercial Banks and Unscheduled Banks. Scheduled commercial Banks
constitute those banks, which have been included in the Second Schedule of
Reserve Bank of India (RBI) Act, 1934.
RBI includes only those banks in this schedule, which satisfy the
criteria
laid
down
vide
section
42
(6)
(a)
of
the
Act.
The road map has two phases. During the first phase between March
2005 and March 2009, foreign banks may establish a presence by way of
setting up a wholly owned subsidiary (WOS) or conversion of existing
branches into a WOS. The second phase will commence in April 2009 after a
review of the experience gained after due consultation with all the stake
holders in the banking sector. The review would examine issues concerning
extension of national treatment to WOS, dilution of stake and permitting
mergers/acquisitions of any private sector banks in India by a foreignbank.
Major foreign banks in India are:
ABN-AMRO Bank
BNP Paribas
Citibank
Deutsche Bank
HSBC Ltd
were
Before 1969, State Bank of India (SBI) was the only public sector bank in
India. SBI was nationalized in 1955 under the SBI Act of 1955.
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
10
Bank of Maharashtra
Canara Bank
Corporation Bank
Dena Bank
Indian Bank
Syndicate Bank
11
UCO Bank
Vijaya Bank .
and
forced
them
to
become
more
competitive.
Bank of Rajasthan
12
Dhanalakshmi Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
IndusInd Bank
Karnataka Bank
UTI Bank
YES Bank
13
If there is one industry that has the stigma of being old and boring, it
would have to be banking; however, a global trend of deregulation has
opened up many new businesses to the banks. Coupling that with
technological developments like Internet banking and ATMs, the banking
industry is obviously trying its hardest to shed its lackluster image.
14
COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of about
Rs.1,676.59 bn(US$ 38.5 bn) at March 31, 2005 and profit after tax of Rs.
20.05 bn(US$ 461 mn) for the year ended March 31, 2005 (Rs. 16.37
bn(US$ 376 mn) in fiscal 2004). ICICI Bank has a network of about 573
branches and extension counters and over 2,000 ATMs. ICICI Bank offers a
wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialised
subsidiaries and affiliates in the areas of investment banking, life and nonlife insurance, venture capital and asset management. ICICI Bank set up its
international banking group in fiscal 2002 to cater to the cross border needs
of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United
Kingdom, Canada and Russia, branches in Singapore and Bahrain and
representative offices in the United States, China, United Arab Emirates,
Bangladesh and South Africa.
ICICI Bank's equity shares are listed in India on the Bombay Stock
Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).
15
16
The merger would enhance value for ICICI shareholders through the
merged entity's access to low-cost deposits, greater opportunities for earning
fee-based income and the ability to participate in the payments system and
provide transaction-banking services.
The merger would enhance value for ICICI Bank shareholders through
a large capital base and scale of operations, seamless access to ICICI's strong
corporate relationships built up over five decades, entry into new business
segments, higher market share in various business segments, particularly
fee-based services, and access to the vast talent pool of ICICI and its
subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI
Bank approved the merger of ICICI and two of its wholly-owned retail
finance subsidiaries, ICICI Personal Financial Services Limited and ICICI
Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature
at Mumbai and the Reserve Bank of India in April 2002. Consequent to the
merger, the ICICI group's financing and banking operations, both wholesale
and retail, have been integrated in a single entity.
17
Deposits
ICICI Bank offers wide variety of Deposit Products to suit your
requirements. Coupled with convenience of networked branches/ ATMs and
facility of E-channels like Internet and Mobile Banking, ICICI Bank brings
banking at your doorstep. Select any of our deposit products and provide
your details online and our representative will contact you for Account
Opening.
ICICI Bank offers you a power packed Savings Account with a host of
convenient features and banking channels to transact through. So now you
can bank at your convenience, without the stress of waiting in queues.
We understand that as you reach the age to retire, you do have certain
concerns whether your hard earned money is safe and secure whether
your investments give you the kind of returns that you need. That's why we
have an ideal Banking Service for those who are 60 years and above. The
Senior Citizen Services from ICICI Bank has several advantages that are
tailored to bring more convenience and enjoyment in your life.
It's really important to help children learn the value of finances and
money management at an early age. Banking is a serious business, but we
make banking a pleasure and at the same time children learn how to manage
their personal finances Safety, Flexibility, Liquidity and Returns! A
combination of unbeatable features of the Fixed Deposit from ICICI Bank.
18
When expenses are high, you may not have adequate funds to make big
investments. But simply going ahead without saving for the future is not an
option for you. Through ICICI Bank Recurring Deposit you can invest small
amounts of money every month that ends up with a large saving on maturity.
So you enjoy twin advantages- affordability and higher earnings.
Investments
At ICICI Bank, we care about all your needs. Along with Deposit
products and Loan offerings, ICICI Bank assists you to manage your
finances by providing various investment options ranging from ICICI Bank
Tax Saving Bonds to Equity Investments through Initial Public Offers and
Investment in Pure Gold. ICICI Bank facilitates following investment
products:
19
You can invest in above products through any of our branches. For
select products ICICI Bank also provides the ease of investing through
electronic channels like ATMs and Internet (ICICIdirect.com).
Cards
ICICI Bank offers a varied range of cards to suit your requirements.
These cards having a wide acceptance, nationally and internationally,
coupled with benefits of channels like Internet and Mobile, will enhance
your experience.
ICICI Bank Credit Cards give you the facility of cash, convenience and
a range of benefits, anywhere in the world. These benefits range from life
time free cards, Insurance benefits, global emergency assistance service,
discounts, utility payments, travel discounts and much more.
The ICICI Bank Debit Card is a revolutionary form of cash that allows
customers to access their bank account around the clock, around the world.
The ICICI Bank Debit Card can be used for shopping at more than 100,000
merchants in India and 13 million merchants worldwide.
20
21
PROJECT
A STUDY ON HOME LOANS WITH
REFFERENCE TO ICICIC BANK
22
ICICI Bank home loan provide not just the most competitive interest
rates & best level of service, but also products designed to cater to the
specific needs of consumer. New products / New features in existing
products are introduced based on customer feedback. Choose the ICICI
Bank Home Loan that suits your needs.
Home Loans
Purchase in re-sale
24
Land Loan
Land loans give an opportunity for individual customer to purchase a
residential plot of land to do self- construction. Thus, customer can invest
now in a plot of land & build in future. The Land loan can be financed only
within municipal limits or in case of direct allotment outside municipal
limits by DA.
Land Loan can be availed by Resident Indian whether Salaried or SelfEmployed and also by Non- Resident Indian.
25
26
Balance transfer:
Balance Transfer is a facility offering the customer a choice to transfer the
outstanding balance of the loan availed for better terms & conditions.
Balance Transfer helps to move from higher rate of interest to lower rate of
interest or increase in loan component as Top up. BT is possible only from
loans taken from HFCs approved by NHB for refinance, Banks or employer
Loans taken from Central or State Government.
Balance Transfer can be availed by Resident Indian whether Salaried or SelfEmployed
Money saver:
Money Saver account is a home loan account with transaction facility. The
account holder can deposit & withdraw to the extend of balance maintained.
On the commencement of EMI the interest will be calculated on the
outstanding debit balance. Thus, the home loan account holder maintaining
large balance in the Money Saver account can save on the interest paid by
faster repayment. This means one can pay less & repay loan faster.
This product can be offered only in case of first and final disbursement
Part disbursement cases cannot be offered this product. MoneySaver would
be available at Floating Rates only & Fixed EMI per lac per month would be
applicable . IT certificate in the case of MoneySaver is not issued.
Money Saver can be availed by Resident Indian whether Salaried or SelfEmployed
27
Topup loan:
Top Up Loan can be availed time and again for various personal requirement
based on value of the property. It offers the customer additional funds
against the security of the same property. To avail Top Up loan , the vintage
of atleast six months is required for the loan availed. The basic eligibility
emerges with good repayment track record. The end use letter is essential to
be collected.
The End use of Top Up Loans can be
Furnishing of home
Consumer durable
Childs education
Daughters marriage
Family holiday
Vehicle
28
Loan on phone:
Loan On Phone is a pre sanctioned loan. Its is based on the existing
relationship of the customer with ICICI Bank. The biggest advantage is that
the customer can get the loan with minimum documentation. Good banking
transactions and repayment records becomes a strength for availing loans in
future.
Loan on Phone can be availed by Resident Indian whether Salaried or SelfEmployed
29
Home Equity Loans are provided for many personal requirements of the
customer viz.
Marriage
Child Education
Business
Improvement of Property
Medical Treatment
Home Equity Loans can be availed by Resident Indian who are SelfEmployed and also by Non- Resident Indian who are Salaried.
Property overdraft:
The overdraft facility from ICICI Bank allows you to borrow money against
your self occupied property. The overdraft facility comes with a multi-city
cheque book and phone banking facility. The customer is charged interest
only for the amount that he withdraws from the account. Whenever he
deposits funds into the account, they go towards reducing the outstanding
balance in the account.
30
personal use
Account
Marriage
31
Child Education
Business
Improvement of Property
Medical Treatment
Loan amount:
Factors affecting your Loan Amount
ICICI home loans bring to you a home loan power-packed with
numerous facilities making it the perfect home finance option for you.
You can get a home loan suited to your needs. The home loan amount
depends on your repayment capability and is restricted to a maximum of
85% of the cost of the property or the cost of construction as applicable.
Repayment capacity takes into consideration factors such as income, age,
qualifications, number of dependants, spouse's income, assets, liabilities,
stability, continuity of occupation and savings history.
A number of factors are taken into account when assessing your
repayment capacity. Your income, age, number of dependants, qualifications,
assets and liabilities, stability/ continuity of your employment / business are
some of them.
However, there are ways by which you can enhance your eligibility.
32
While there is no need for a guarantor, it could be that having one might
enhance your credibility with us. If so, our loan officer would provide you
with the necessary details.
The final amount to be sanctioned will depend on your repayment capacity.
However, what you ultimately are entitled to will have to conform within the
limits fixed for each loan.
Also, when the company looks at the total cost, registration charges, transfer
charges and stamp duty costs are included.
33
The leading home loan provider offers attractive interest rates and
unbeatable benefits to ensure that you get the best deal without any hassles.
Keeping your convenience in consideration, we ask you for minimal
mandatory documents for the sanctioning of your home loan.
At ICICI Bank we require the following documents to sanction your
home loan:
Sanction Documents
Duly Completed Application Form
Photograph
Fee cheque
Photo identity proof
Age proof
Signature verification proof
Residence address proof
34
These are the documents required for sanctioning a loan. You may be
asked to submit further legal documents if required by ICICI Bank or its
approved lawyers. Do retain photocopies of all documents being submitted
by you.
35
36
Disbursement Documents
Property documents (as per P&D for respective states and as asked by
empanelled lawyers for individual cases)
Facility Agreement
Disbursal Request Form
Cheque Submission
ECS or Auto Debit for ICICI Bank account holders or Post
Dated Cheques for EMI
ECS or Auto Debit for ICICI Bank account holders or Post
Dated Cheques for EMI
Personal Guarantors Documents (PG Form, Photograph,
Identity Proof, Address Proof, Signature Verification and
Income documents, if applicable)
Memorandum of Entry
Form 8
NOC
37
Secondary
38
39
repayment facility
One of the applicants should have service period till the end of
FLIP would have two different EMIs during the tenure of the
loan
income
40
41
42
Repayment tenure is the tenure for the number of year for which the
loan gets sanctioned. We offer you a wide range of options for the tenure of
the loan. You can take a home loan for up to 25 years provided you do not
reach the age of 65 years or retire within that period
How is the loan repaid?
All loan repayments are done via equated monthly installments (EMI).
What is an EMI?
An EMI refers to an equated monthly installment. It is a fixed amount
which you pay every month towards your loan. It comprises of both,
principal repayment and interest payment.
Your search for the perfect home loan ends here at ICICI bank
home loan, even before your have found the perfect property.
The moment you decide to buy a home, you can put in your application
for a home loan. Yes, you can apply for a home loan even before you have
selected the property.
The property need not even be in the same city where you are residing.
The only condition being that ICICI Bank has home loan operations in both
the cities.
45
No medical checkup
contents
Premium paid for the Critical Illness cover is eligible for tax
46
Life Cover from HomeAssure for the entire home loan tenure
customers
47
FINDINGS
1. ICICI Bank having good brand image in the minds of customers.
2. Majority of the people got loans from ICICI Bank only
3. Most of the customers are not aware of the products of ICICI home
loans
4. Some of the customers felt that the interest rates are some what high
5. Some of the customer not having good faith on private banks
6. Most of the people are directly go to bank to apply a home loan
7. Some of the customer of ICICI already benefited through ICICI home
loan products and services
8. Customer awareness is medium about ICICI products.
9. ICICI providing good services to their customers.
48
RECOMMENDATIONS
49
CONCLUSION
In my study we came to know that many peoples are
interested to take a home loan from ICICI bank to construct
their homes.
Home loans have long period when compare to other personal
loans and other loans. So peoples are confused to take a home
loan.
The interest rates also some what high when compare to other
banks.
Even though the interest rates are high peoples are willing to
take a loan from ICICI bank due to some reasons.
The loan sanction process is low when compare to other
banks.
For disbursement process is also it will take low time when
compare to other banks
50
INTODUCTION
My OJT is promoting ICICI home loan products and services I have
to promote the ICICI bank products and create awareness in the minds of
customers.
And I have to identify the potential customers, who are showing
interest to take home loan.
I have to convert them as ICICI customers. I have to collect all the
required documents to get a home loan from the customers.
I have submit all the documents to our technical team, these are the
people evaluate the property value.
I have to inform to the customers about their loan status.
51
OBJECTIVES
The main objective of doing this project is to study the corporate culture
and creating awareness among the customers about home loan products of
ICICI bank. During this student internship program period I have to achieve
some thing which is helpful to the development of myself and some value
addition to the company. Generating business to the company is the main
objective. It gives me good exposure of myself and creating good impression
of corporate mind.
The main objective of this study is to know the Customers perceptions
about home loans of ICICI bank.
Generating good business to the company by promoting and selling
the products of ICICI.
.
To know the ideas of customers about home loan products and
services.
To get the knowledge about different loan products of ICICI Bank.
Creating awareness of ICICI Bank products in the minds of Walk-in
customers in the bank.
Fixing the appointments with the customers.
Visiting the customers and closing the deal.
52
TARGETS/ TASKS
I have to approach the customer with in the bank and out side of the
bank also to promoting the products and services of ICICI. If he gets the
information about the product I have to take his mobile number and
appointment.
STRATEGIES
Followed strategies to achieve my Targets
1. Direct marketing
My OJT is promoting the home loan products of ICICI.By adopting
this strategy I can understand the ideas of customers and their investment
habits. If I know the ideas I can create better idea of our products. Direct
approach creates great awareness about the product and we can easily clarify
the doubts of customers.
2. Tele-marketing
This is the one of the strategy I am following to promote the product.
If once I got the phone number of the customer I can easily grab the
customer. Through Tele marketing I can convince the customer.
53
3. Relationship marketing
It is also one of the best marketing strategy. Direct approach is only
belongs one customer. Through relationship marketing we can pinch the
product to many persons. If one customer got good faith on us. Then he will
promote the products to his friends and colleagues. It is also one of the best
strategies I am following.
ACHIEVEMENTS
I promoted ICICI Bank home loan products during my SIP period. I
have showing them as monthly wise as follows,
st
1 week
nd
2 week
rd
3 week
4th week
54
st
1 week
2nd week
3rd week
4th week
st
1 week
2nd week
3rd week
4th week
st
1 week
2nd week
3rd week
4th week
55
LIMITATIONS
1. The survey was confined to only certain parts of twin cities, which
Included walk-in customers of ICICI Bank and outsiders.
2. We dont have sufficient knowledge to close all the deals.
3. Getting the prospective customers are very time consuming.
4. Time to explain the customer about the product inside branch is less.
5. Time Period of my OJT is one of the Limitation.
56
LEARNINGS
Learnings in the on the job training
1) Product knowledge of ICICI home loan products and services
2) The way to improve my communication skills.
3) The way to convince the customers.
4) The way to behave people in corporate world.
5) The way to adopt new strategies to attract customers.
6) The way to convince the people who do not trust private
organizations.
7) How people invest their money in different investment schemes.
.
57