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CH. No

CONTENTS Acknowledgement Executive Summary Company Profile
• • • • • • Overview……………………………………………………..4 History………………………………………………………..7 Competitors………………………….……………………….11 Strength/Opportunity & weakness/Threats…………………..12 Different Products…………………………………………....13 Awards & Recognitions to SBI………………………………14

Page no.

1 2 3

1 2 3-14


SBI Loan Product
• • • • • Introduction to Advance Product……………………………...16 SBI Advance Product………………………………….............17 Statement the Problem………………………………………...33 Research objectives…………………………………………....34 Significance and scope………………………………………...35


5 6 7

Research methodology Analysis of data

36-38 39-47 48-53

• Findings……………………………………………….…...….49 • Suggestion & Recommendation………………………............51 • Conclusion…………………………………………………….53

8 9

Annexure Bibliography

54-56 57-58


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 :


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, Customer Support 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


computation and also graphical representation of data collected from survey. This project report includes five different chapters. The third chapter. 4 . It covers the sample procedure. every chapter has been presented in a manner so as to enable the reader to view the contents easily. its achievements.Executive Summary In the ever growing competition. its area of operation. It also contains the objectives and limitations of the project. its organization structure. The second chapter is the introduction to the Loan Product which gives a brief idea regarding LOAN PRODUCTS of SBI BRANCH of Malad(W). The sixth chapter the recommendation part is covered which are made after a depth study of the analysis part of thesis. types of data used and the data collection method. suggestion & conclusion part after analysis is made. etc. the behavioral aspect of consumers Is the core concept & is also an essential aspect for any business concern. The fourth chapter shows the analysis of data through tabulation. methodology adopted in preparing this report is mentioned. The report begins with the introduction to company. Mumbai where the project is undertaken. The report includes figures and data wherever necessary for the reader to have good understanding of the topic. The fifth chapter deals with the findings. In each of the five chapters as described above. This topic deals with the CUSTOMER’S PERCEPTION TOWARDS THE LOAN PRODUCT OF STATE BANK OF INDIA (SBI BANK).

Company Profile:  Overview  History  Competitors  Strength/Opportunity & Weakness/Threats  Different Products  Awards & Recognitions by SBI 5 .

000 branches (including subsidiaries).646bn with the public holding (other than promoters) at 40. Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the London Stock Exchange. The bank provides a full range of corporate. Net Interest Income of the bank has witnessed a CAGR of 13.9% in FY02 to 3. Indian central bank namely Reserve Bank of India (RBI) is the major share holder of the bank with 59. 6 . With this type of strong base. correspondent relationship with 520 International banks in 123 countries. SBI has displayed a continued performance in the last few years in scaling up its efficiency levels. Of this. net interest margin (NIM) of the bank has gone up from as low as 2. commercial and retail banking services in India.40% in FY06 and currently is at 3. The bank is listed on the Bombay Stock Exchange.32%. During the same period. 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.774 as on 31st March.OVERVIEW State Bank of India is the largest and one of the oldest commercial bank in India. The bank had total staff strength of 198. SBI has acquired banks in Mauritius. 45. In recent past. 2006. 29. The bank has a branch network of over 14. The bank is capitalized to the extent of Rs. SBI has the largest branch and ATM network spread across every corner of India.7% stake.30% were substaff.3% during the last five years. Kenya and Indonesia.19% clerical staff and the remaining 25.3%. Kolkata Stock Exchange. in existence for more than 200 years.51% are officers. National Stock Exchange. Apart from Indian network it also has a network of 73 overseas offices in 30 countries in all time zones.

The management’s thrust on growth of the bank in terms of network and size would also ensure encouraging prospects in time to come. The positions of CFO and the head of treasury have been segregated. Mr. Bhatt has more than 30 years of experience in the Indian banking industry and is seen as futuristic leader in his approach towards technology and customer service. P. reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. Mr. Recently. Mr. Prior to this appointment. Bhatt has had the best of foreign exposure in SBI. 7 . Bhatt would be a key to SBI’s future growth momentum. We believe that the appointment of Mr.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 corporate performance also carries out functions such as approving the business plan. The five-year term of Mr. O. Bhatt is the Chairman of the bank. Bhatt will expire in March 2011. T S Bhattacharya is the Managing Director of the bank and known for his vast experience in the banking industry. Mr. Bhatt was Managing Director at State Bank of Travancore. and new heads for rural banking and for corporate development and new business banking have been appointed. Mr. the senior management of the bank has been broadened considerably.

Corporate Banking. International Banking. & Treasury operations. STATE BANK OF INDIA Corporate Banking National Banking International Banking Treasury Operations Associates & Subsidiaries 8 .Key Areas of Operations The business operations of SBI can be broadly classified into the key income generating areas Such as National Banking.

Their evolution was. The rest were 9 . A unique institution. 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.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. four-fifth of which were privately subscribed and the rest owned by the provincial government. 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. which managed the affairs of each bank. 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. however. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. The three banks were governed by royal charters. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). Primarily Anglo-Indian creations. were mostly proprietary directors representing the large European managing agency houses in India. The members of the board of directors. it was the first joint-stock bank of British India sponsored by the Government of Bengal. which were revised from time to time. Each charter provided for a share capital.

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.government nominees. including products aimed at NRIs. These managers took the retirement allowances and then went on to become senior managers in new private sector banks. it is a regional banking behemoth. and SBI accounts for almost one-fifth of the nation's loans.000 branches. With an asset base of $260 billion and $195 billion in deposits. with over 16. has the largest banking branch network in India. one of whom was elected as the president of the board. The State Bank Group. invariably civil servants. 10 . Group Photograph of Central Board (1921) SBI provides a range of banking products through its vast network of branches in India and overseas. The State bank of India is the 29th most reputed company in the world according to Forbes. It has a market share among Indian commercial banks of about 20% in deposits and advances.

The security for such loans was public securities. Loans were restricted to Rs. keeping cash accounts and receiving deposits and issuing and circulating cash notes. treasure.BUSINESS The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities. Loans against goods like opium. cotton piece goods. mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. 11 . bullion. which was in turn endorsed to the bank. indigo. including tea. Lending against shares of the banks or on the mortgage of houses. was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities. sugar and jute. land or other real property was. which began to be financed later. jewels. Demand promissory notes were signed by the borrower in favour of the guarantor. commonly called Company's Paper.one Lakh and the period of accommodation confined to three months only. forbidden. salt woolens. cotton. or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. however. while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. as far as the government was concerned. But the main function of the three banks. Indians were the principal borrowers against deposit of Company's paper. All commodities. plate. were either pledged or hypothecated to the bank.

therefore. the All India Rural Credit Survey Committee recommended the creation of a state-partnered and statesponsored bank by taking over the Imperial Bank of India. enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (Later named Associates). the former state-owned or state-associate banks. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. Later. sub offices and three Local Head Offices inherited from the Imperial Bank. In order. the State Bank of India (Subsidiary Banks) Act was passed in 1959. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. 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 sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches. to serve the economy in general and the rural sector in particular. 12 . An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. 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. and integrating with it. when the First Five Year Plan was launched.First Five Year Plan In 1951.

COMPETITORS Competitors and other players in the field:Top Performing Public Sector Banks • Andhra Bank • Allahabad Bank • Punjab National Bank • Bank of Baroda • Union Bank of India Top Performing Private Sector Banks • • • • • HDFC Bank ICICI Bank AXIS Bank UTI Bank Federal Bank Top Performing Foreign Banks • • • • • Citibank Standard Chartered HSBC Bank Barclays Bank PLC ABN AMRO Bank 13 .

• Growing retail & SMEs thrust would lead to higher business growth. • Strong economic growth would generate higher demand for funds pursuant to higher corporate demand 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 prospects of the bank going forward. • Stiff competition. especially in the retail segment. 14 . • Contribution of retail credit to total bank credit stood at 26%. could impact retail growth of SBI and hence slowdown in earnings growth. Significant thrust on growing retail book poses higher credit risk to bank. • Slow down in domestic economy would pose a concern over credit offtake thereby impacting earnings growth. the • Delay in technology up gradation could result in loss of market shares.Strength/ Opportunities: The growth for SBI in the coming years is likely to be fuelled by the following factors: • Continued effort to increase low cost deposit would ensure improvement in NIMs and hence earnings.

DIFFERENT PRODUCTS OF SBI: DEPOSIT • Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits Security Deposits Recurring Deposits • LOANS Home Loans Loan Against Property  CARDS Consumer Cards Credit Card DIFFERENT CREDIT CARDS  SBI Internationa l cards  SBI Gold cards •  • • • • • • Personal Loans Car Loan Loans against Securities Two Wheeler Pre-approved Loans Retail Asset    Travel Card Debit Cards Commercial Cards   SBI Gold Master cards Your City Your Cards • • Salary Account Advantage Woman Savings Account Rural Savings Account People's Savings Account Freedom Savings Account • •   Corporate Cards Prepaid Card Purchase Card  Partnership Cards • •   SBI Employee Cards • • • Farmer Finance Business Installment Loans  Distribution Cards Business Card •   SBI Advantage Cards 15 .

Awarded the “Bank of the Year 2008 – India” by The Banker Magazine.       SBI bags Business India Best Bank Awards 2009. 16 .  State Bank has won the prestigious “Asian Banker Achievement Award” for being the strongest bank in Asia Pacific region. 2010). Economic Times announced on 17th June 2009. instituted by the Qatar Financial Centre Authority and the Asian Banker magazine. Ranked # 1 in Survey of top 5 companies in India in terms of financial reputation by Wall Street Journal Asia. (Announcement on February 16.AWARDS & RECOGNITIONS  On25th July 2009 SBI has been awarded under the “Financial Express Best Banks” category “The Best Banker of the year award 2008”. London.R K Swami High Performance Brand Award 2009. “Best use of IT for Customer Service in Semi-urban and rural areas” category. SBI wins the first AIMA . Brand Equity Most Trusted Brand 2009.

Introduction to Advance Product

 SBI Advance Product  Statement the Problem  Research objectives  Significance and scope


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 Product of the bank. All the banks have so many different types of Loan Products product as 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.


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.


a.) OR 10.a.Loan Schemes SBI HI-FIVE Loan Loan Amount up to Rs.) Fixed Interest Rate Fixed Interest Rate To enhance loan eligibility you have option to add: 1.00% (p. 5 Lacs SBI Easy Home Loan 8. 4.00% (p. 2.)Floating Interest Rates Interest Rates OR OR 10.) Fixed interest rate 1st Year 2nd and 3rd year After 3rd Year 8. 9.00% (p. Regular income from all sources 20 .a. Income of your spouse/ your son/ daughter living with you.50% (p.)Fixed Fixed Interest Rates Interest Rates 9.) 10.)Floating 9. 3.) if the house/ flat being purchased is proposed to be rented out.a.50% (p.a.a. Depreciation. provided they have a steady income and his/ her salary account is maintained with SBI.50% (p.50% (p.) Loan Amount up to Fixed interest rate Rs.Interest Rates. Expected rent accrual (less taxes.Interest rate after three years may be Fixed or Floating as per the borrower’s choice made at the time of sanction.a.00% (p. subject to some conditions.00% (p.a. cess. 50 Lacs Note: . etc.)Floating Interest Rate 8.a.

and above.000/. 21 . Public Sector Undertaking. 100.CAR LOAN Purpose You can take finance for: A new car. Take over of existing loan from other Bank/Financial institution (Conditions apply) Eligibility To avail an SBI Car Loan. jeep or Multi Utility Vehicles (MUVs) A used car / jeep (not more than 5 years old). A Permanent employee of State / Central Government. (Any make or model). Private company or a reputed establishment or A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities. Net Annual Income Rs. you should be: • • • • • Individual between the ages of 21-65 years of age.

Silent Features Loan Amount There is no upper limit for the amount of a car loan.5 times the net annual income can be sanctioned. The loan amount includes finance for one-time road tax. 3 lacs. 15 lacs. Overdraft – a) For New vehicles only b) Minimum loan amount: Rs. your spouse's income could also be considered provided the spouse becomes a co-borrower in the loan. Type of Loan 1. If married. Term Loan 2. A maximum loan amount of 2. Loan amount for used car is subject to a maximum limit of Rs. 22 . registration and insurance! No ceiling on the loan amount for new cars.

50% above Base Rate i.07. 2009 to September 30.75% 4. 01.00% above Base Rate i.50% Term Loan Overdraft 4.2010 (Base Rate 7.e.11.5% fixed From 4th Year Onwards: The floating interest rate will be reset to applicable card rate contracted on the date of sanction. 4 Processing Fees 0.00% Base Rate 7.50% of loan amount 23 . 12.25% 4.e.50 %) SL. 2010 Period Term Overdraft Loan First year 8% Fixed 8.11.50 % No other interest concession will be given under any tie-up arrangement or otherwise below the offer rate.5% fixed For 2ND & 3rd year 10% fixed 10.75% above Base Rate i.f.11.e.e.25% above Base Rate i. Currently the rates are 3 Interest Rate Period For 4th & 5th year For 6th & 7th year 3. No 1 2 PARAMETER SCHEME Applicable to Scheme Period DETAILS All New Car Loans to Public From July 1.e.SBI EZEE CAR LOAN SCHEME (w.

1. Repayment You enjoy the longest repayment period in the industry with us. 8. Signature identification from bankers of borrower(s). Proof of residence. 5. 2. 4. 2 passport size photographs of borrower(s).T. Proof of official address for non-salaried individuals. 6. A copy of passport /voters ID card/PAN card. 7.Documents required You would need to submit the following documents along with the completed application form if you are an existing SBI account holder: Statement of Bank account of the borrower for last 12 months. Repayment period: For Salaried: . 3.Maximum of 84 months For Self-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). 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. 24 . If you are not an account holder with SBI you would also need to furnish documents that establish your identity and give proof of residence. Latest salary-slip showing all deductions I.

0. 14. 25 .25% above Base Rate i. 0.50% below SBAR i.e. 12.50% above Base Rate i.75% below SBAR i.25%) 0.75%p.00% p.25% below SBAR i.a. 7. Prepayment Penalty: Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions Repayment Period Up to 3 years (for loans Rs.50% p. 15. 3.a. 11.e. 11.e.00% p. 11.a.a.a. 7.75% p.e.e.e. 7.2. 0.5 lac) Above 3 yrs up to 5 yrs (for all loans) Above 5 yrs up to 7 yrs (for all loans) All Centers (SBAR 12.75% p.5 lac & above) Up to 3 years (for loans below Rs. Used Vehicles:Tenure Up to 3 years Above 3 yrs Rate of Interest 7.50% below SBAR i.a.

20 lacs 26 .EDUCATION LOAN A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. maximum Rs. maximum Rs. Amount of Loan • • For studies in India. project work etc. 10 lacs Studies abroad. • • Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc. 50. Eligible Courses All courses having employment prospects are eligible.000/- Any other expenses required to complete the course like study tours. 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 Cost of a Two-wheeler up to Rs.

4 lacs and up to Rs. whichever is earlier.f. 5000/.Interest Rates Base Rate 7.25% above Base Rate. Above Rs. currently 11.75% above Base Rate. (0. currently 11.25% p.50 lacs 4.0 lacs Rs.07.75% p.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.7. 10.75% p.7. 20. currently lacs 12.25% above Base Rate. 01.0 lacs Repayment in Period 5-7 5-7 27 .50% concession in interest for girl student) Processing Fees • • No processing fee/ upfront charges Deposit of Rs.4 lacs Rate of Interest 3.a.2010) Loan Amount For loans up to Rs.50 5.e. Place of Study Studies in India Studies Abroad Loan Amount Rs.50 % (w.a. Above Rs.a.

The bank may. 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" Tangible collateral security of suitable value.00 lacs for studies abroad No Security Collateral security in the form of suitable third party Guarantee. 4 lacs For loans up to Rs.0 lacs : No Margin For loans above Rs.4. along with the assignment of future income of the student For payment of installments.50 lacs Margin • • • • For loans up to Rs.0 lacs: Studies in India: 5% Studies Abroad: 15% 28 . In case of married person.00 lacs for Studies in India and up to Rs. 20. 7. co-obligator can be spouse or the parent(s)/ parents-in-law acs to Rs.4. at its discretion.Security Amount Up to Rs. All loans should be secured by parent(s)/guardian of the student borrower. 10.

studentship etc Schedule of expenses for the specified course 2 passport size photographs Borrower's Bank account statement for the last six months Income tax assessment order. of the Co-borrower Proof of Income (i.Documentation Required • • • • • • • • • Completed Education Loan Application Form. Salary slips/ Form 16 etc) 29 . Mark sheets of last qualifying examination Proof of admission scholarship.e. of last 2 years Brief statement of assets and liabilities.

Salient Features: Loan Amount Your personal loan limit would be determined by your income And repayment capacity. meeting margins for purchase of assets etc.10 lacs in all centers Documents Required Important documents to be furnished while opening A Personal Loan Account: For existing bank customers Passport size photograph From salaried individuals Latest salary slip and Form 16 30 . self employed engineer. meeting any financial liability. expenses for domestic or foreign travel.) Eligibility You are eligible if you are a salaried individual of good quality corporate. Minimum: Rs. architect.g.in metro and urban centers Rs.10. defraying educational expenses of wards. MBA with minimum 2 years standing. 000/. doctor. 000/. medical treatment of self or a family member.in rural/semi-urban centers Maximum: 12 times Net Monthly Income for salaried individuals And pensioners subject to a ceiling of Rs. chartered accountant. such as marriage of son/daughter.24.SBI SARAL PERSONAL LOAN Purpose The loan will be granted for any legitimate purpose whatsoever (e.

without attracting any prepayment penalty. Security NIL Processing Fee Processing charges are 1-2% of the loan amount. 31 . This is amongst The lowest fees in the industry. You are allowed to pay more Than the EMI If you wish to.Margin We do not insist on any margin amount. Processing fees have to Be paid up front. Interest Rates 16.00% PA Repayment The loan is repayable in 48 EMI. There are no hidden costs or other Administrative charges.

00 lacs and above then purpose of loan will have to be specified along with an undertaking that loan will not be used for any speculative purpose whatever including speculation on real estate and equity shares. but would rather not sell it? Then why not avail of this ALL PURPOSE LOAN from SBI? SBI now makes it very much possible for you to only keep your property but also have liquid funds. Purpose This is an all purpose loan. You can have surplus funds at any time thereby conveniently reducing your loan liability and interest burden.25. i. If amount of loan is Rs. • No prepayment penalties. Property Loan Scheme Avail of an All-Purpose loan against mortgage of any of your property. Enjoy the SBI Advantage. the loan can be obtained for any purpose whatsoever. up to 120 months for salaried individuals with check-off facility • No Hidden costs or administrative charges.. want to take your family to a well-deserved holiday or for a sudden medical emergency? You have some property. • Long repayment period of 60 months. We offer you these loans at all our Personal Banking Branches and those branches having Personal Banking Divisions amongst others.PROPERTY LOAN A dream comes true! An ALL PURPOSE LOAN for anything that life throws up at you!! Do you need funds for a Marriage ceremony.• 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 processing charges. 32 .e.

1 crore. Maximum age limit: 60 years. Silent Features Loan Amount Minimum: Rs. 000/.25.or Net Annual Income (others) is in excess of Rs.000/-. B. 50. a.12. The income of the spouse may be added if he/she is a co-borrower Or a guarantor.Eligibility You are eligible if you are: A. An Employee or b. An individual who is. self-employed or an income tax assessee or c. 000/Maximum: Rs. Your Net Monthly Income (salaried) is in excess of Rs.1. C. Interest 33 . A Professional. 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 We will finance up to 60% of the market value of your property. Engaged in agricultural and allied activities.

f. up to 120 months for salaried individuals with check-off facility.1.a.13. i.e.25% above SBAR i.25% p.13.01.50% p. Security As per banks extant instructions.2009) Repayment Maximum of 60 equated monthly installments.00 crore.a.e. In other cases 1.e. floating for loans up to Rs. 01.Term Loan 1. You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty. floating (w. 34 .00% above SBAR.

35 .  To know the utility of the product.  To find out the need of the customer in Malad(W). Malad(W). region and introduce new product or facilitate new service in existing 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.Statement of problem  SBI Branch.  To find out what kind of service provide by the competitors in advance product. Mumbai want to know about the customer perception about the advance product provide by them to the people.

 To generate the leads through the survey.  First and foremost objective is to find out the reasons for using of loan Product from SBI.  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.  To maintain good relationship with the corporate employees. 36 .  To build the relation ship with the customers and to follow up them.  To place SBI loan Product ahead of the competitors.  To get more references from the customers and generate new leads by following a chain process.Research objectives Summer Internship Project gives a practical exposure and helps in acquiring the on road skills.  To sort out the prospective leads from the data I have collected through the survey. make sure that they are satisfied with the product.  To find out the services that other bank given to their customer.

Significance and scope The geographical scope of the study is restricted to Malad(W). • Aware the Bank about the customer problems. There fore the scope of the study revolves around the following aspects:• Consumer perception towards loan Product • Consumer awareness about loan Product scheme and its benefit. especially in case of automobile sector. 37 .only with sample size of 80 people. All the analysis and suggestions are based on the analysis of the both primary and secondary data.

Research methodology 38 .

a Simple Random Sampling technique is used. sampling procedure & fieldwork done & finally the analysis procedure. The methodology includes the overall research design. • Sample Size: Sample of 80 people was taken into study. journals have been referred for secondary data. magazine. • Data Collection: 39 . The methodology used in the study consistent of sample survey using both primary & secondary data. The questionnaire has been drafted & presented by the researcher himself. The objective is to examine all the issues involved & conduct situational analysis. The primary data has been collected with the help of questionnaire as well as personal observation book. and their data was collected • Sampling Technique: To study the Project.Research methodology Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question.

Bar graphs. • Data Analysis: After data collection. and also using quantitative techniques (by using these techniques) accurate information is obtained. The tools that have been used for analyzing data & inference drawing are mainly statistical tools like percentage. the respondents who responded logically were taken into account while going into statistical details & analysis of data. 40 . averages. Primary data was collected through Questionnaire.Collection of data is done by secondary Data & through Questionnaire i. ideas and opinions related to loan Product and about SBI loan Product and from this. etc. counting sheets & the summary tables were prepared.e. two dimensional. The resultant tables were one dimensional. • Statistical tools used for analysis: Out of the total respondents. • Data Interpretation: Interpretation of data is done by using statistical tools like Pie diagrams. ranking.. As per questionnaire and market surveys I have find out different responses from different people. • Classification & tabulation of data: The data thus collected were classified according to the categories. SBI will come to know the customer requirements. According to their responses I analyze the findings and draw certain remarks. I’m able to analyze customer’s views.

Analysis of data 41 .

On which bank you depend for your regular transaction? SBI ICICI HDFC OTHER TOTAL NO.GRAPHICAL REPRESENTATION OF DATA Q1. around 33% of people are using ICICI Bank for their transaction and only 5% & 2% of people 42 . OF PEOPLE 60 % (48) 33 % (26) 5% (4) 2% (2) 80 RESPONSES OF PEOPLE IN % 5% 2% 33% 60% It has been observed that approximately 60% correspondents are using the service of SBI for their daily transaction.

Are you aware of products & services provided by SBI? YES NO 85% (68) 15% (12) Total No. It also shows that SBI have the highest market position in Malad as per my sample. In this 15% most of the people are from typical rural area (Farmers). 43 . the rest 15% have the idea about the product they are using. Q2.are using HDFC & other Bank service respectively in Malad. of People 80 From the above data it is clear that most of the customers (around 85%) of Malad have the idea about the product & services of SBI.

OF PEOPLE 95%(76) 5% (4) 80 It is clear that most of the people have the idea about the Loan product of SBI.Q3. Almost all the 95% people who have the idea about the Loan product are the user of SBI product & service. 44 . If yes are you aware of the Loan products of SBI? YES NO TOTAL NO.

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.Q4. 45 . Which bank you prefer for taking loans? SBI ICICI HDFC OTHER TOTAL NO. but some people prefer ICICI. OF PEOPLE 85% (68) 12% (9) 2% (2) 1% (1) 80 According to my sample size 85% of people prefer SBI for loan product.

it is easier for SBI to give loan to people with a longer repayment period.6 which loan product of SBI you have used? HOME LOAN EDUCATIONAL LOAN CAR LOAN PERSONAL LOAN OTHER TOTAL NO.Q5. bank in India and having partnership with RBI (Reserve Bank of India) and other association. 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. Q. 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. OF PEOPLE 47% (38) 20% (16) 15% (12) 10% (8) 8% (6) 80 46 .

From the 1800 people 47% of people took home loan from SBI. 47 . 10% of people took personal loan. Some of the customer took 2 type of loan from SBI like both car & educational loan and home & car loan. 15% of people took car loan from SBI.From the sample size 85% of people are using the SBI loan product. 20% of people took education loan for their children.

Q7. All of them satisfy with the product provide by SBI. 48 . What do you feel about the services providing by SBI in Loan product? Bad Satisfactory Good Excellent TOTAL NO. OF PEOPLE 0% (0) 2% (2) 55% (44) 43% (34) 80 From this it is clear that the service provide by SBI in its Loan product is good in between the customer. 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.

Which features you like most in Loan segments of SBI? LESS PAPER WORK ATTRACTIVE INTEREST RATE TRANSPARENCY SIMPLE AND FAST PROCESSING LONGER REPAYMENT PERIOD TOTAL NO. It’s easier for people to repay the whole loan amount with its interest with low interest rate and with longer repayment period. 49 .Q8. OF PEOPLE 3% (2) 35% (28) 20% (16) 2% (2) 40% (32) 80 Most of the people like the attractive interest rate & longer repayment period.

 Findings  Suggestion & Recommendation  Conclusion PROJECT FINDINGS 50 .

 Many of these customers satisfied with the low interest rate and longer repayment period of the Loan product. REASON FOR HIGHLY USE OF SBI LOAN PRODUCT 51 .  Most of the customers at Malad(W).  Approximately 43% of Loan product users said that the service of SBI in Loan product is excellent. less repayment period. there is a great opportunity to compete with ICICI Bank & to retain its customer by fulfilling the requirement of customer in SBI Loan product.  Government employees are more concern than private employees for Loan product.  It has been observed that approximately 85% correspondents are using Loan product of SBI and 15% are not using any type of Loan product of SBI in Malad(W). Mumbai.  A response from customer care is so clear & good. From this project it is found that SBI advance product having the 1st place in the market at Malad(W). All of SBI customers are satisfied with the services provided by the bank. prefer to take loan from SBI. high interest rate.  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.


 SBI must take some steps so that customers can get their loan in time. etc.  Agents should be trained.  The bank should increase the period for repayment of loan.  SBI should more concern about physical verification rather than phone verification so it will avoid fraud or cheating. repayment period.  Before deducting or charging any monetary charge SBI must consult with customer.  Special scheme should be implemented to encourage both customer and agents.  For the better service new offers would be require.  Loan product selling agents must not give any type of wrong information regarding Loan product.  SBI customer care should more concern about the fastest settlement of customer problems. 53 . Like phone verification by customer care that one customer is got their loan on time or not . other types of charges.  If there are any kind of hidden charges than that must disclose to customer before giving loan to them.It must be before a certain date so necessary steps can be taken. 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.Recommendation:  Customer awareness Programme is required so that more people should attract towards Loan product. like interest charged.

 SBI must take feedbacks of customers regarding features & services. SBI should more focus on Retaining existing customers. (Rajesh Amankar)  Education loan should be providing to private college also which is not under AICTE or any kind of University. Suggestions given by the consumers at the time of survey:  There is more time period for repayment of education loan. (Nimesh Shah)  Agents should be trained. (Anil Banerjee) 54 .  SBI must focus on Segmentation based on customer knowledge Product offering based on customer demand. well educated & proper trained 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. (Anand Shinde)  SBI should take steps to solve customer problems immediately.

what a normal bank cannot expect. 55 . In present scenario SBI is the largest Loan product issuer in India. SBI believe in providing good customer services to their customers which is a key factor for success in future. but it is being done by SBI. Within a very short period of time the achievement made by SBI is excellent. To be the largest Loan product issuer. & brand image. so the bank should concentrate on this to retain these customers.Conclusion From the analysis part it can be conclude that customers have a good respond towards SBI Loan products in Malad(W). 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. It happens due to employee dedication towards the organization. The bank has a wide customer base. SBI are in 1st position having large number of customers & providing good services to them. fastest growing Indian economy.

Are you aware of products & services provided by SBI? a) YES b) NO Q._____________________________________ Occupation-__________________________________ Contact Detail -_______________________________ Q. If yes is you aware of the Loan products of SBI? a) YES b) NO 56 . Specify (_____________) Q. On which bank you depend for your regular transaction? a) b) c) d) SBI ICICI Bank HDFC Bank Other Bank.Questionnaire Name .

Which bank you prefer for taking loans? a) b) c) d) SBI ICICI Bank HDFC Bank Other Bank. Which loan product of SBI you have used? a) b) c) d) e) Home Loan Education Loan Car Loan Personal Loan Other Loans. Specify (_____________) Q. What do you feel about the services providing by SBI in loan product? a) b) c) d) Bad Satisfactory Good Excellent Q. Q. If you prefer SBI for taking loan than what influence you to take Loan from SBI? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _________________. Which features you like most in Loan segments of SBI? a) Less paper work b) Attractive interest rate c) Transparency 57 .Q. Specify ( ______________ ) Q.

58 . specify ( _____________ ) Q.d) e) f) g) Simple & fast processing Flexibility to choose an EMI base loan or an overdraft Longer tenure lone for ease of repayment Specially design product for self employed h) Any other feature. Any suggestion you want to give for the betterment of SBI Loan product. _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _______________________.

Michael R. 5th Ed. New Jersey: Prentice Hall Wilson A. Marketing Research: An Integrated Approach Naresh Ku. (2003). Fifth Edition Internet: 59 . and Being. Consumer Behavior: Buying. Having. Marketing Research: An Applied Orientation. Malhotra.Bibliography Text Books: Solomon. (2002).

 www.sbi.com  www.com 60 .sbi.in  www.co.co.bnet.in  www.google.

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