INDEX

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

4

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

15-35

5 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

Declaration
1

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 :

2

Acknowledgement
It is my proud privilege to release the feelings of my gratitude to several persons who helped me directly or indirectly to conduct this project work. I thank to my teacher and my faculty guide Prof. Umesh kasar, Prof. Vinod Khair For institute of D.B.Pawar college of management , kalwan and to my corporate guide Mr. Suresh Gulve RMME, SBI IFB Malad Branch, Mr. Pravin Hakim, 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

3

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

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

Of this. During the same period. 29.000 branches (including subsidiaries). Indian central bank namely Reserve Bank of India (RBI) is the major share holder of the bank with 59. The bank is listed on the Bombay Stock Exchange.9% in FY02 to 3. With this type of strong base. Net Interest Income of the bank has witnessed a CAGR of 13. net interest margin (NIM) of the bank has gone up from as low as 2.30% were substaff. National Stock Exchange.3% during the last five years.646bn with the public holding (other than promoters) at 40. SBI has the largest branch and ATM network spread across every corner of India. 45. The bank is capitalized to the extent of Rs. SBI has displayed a continued performance in the last few years in scaling up its efficiency levels. The bank had total staff strength of 198. SBI has acquired banks in Mauritius.3%. 2006.OVERVIEW State Bank of India is the largest and one of the oldest commercial bank in India. correspondent relationship with 520 International banks in 123 countries.51% are officers. commercial and retail banking services in India.7% stake.40% in FY06 and currently is at 3. 6 . in existence for more than 200 years. 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. Kolkata Stock Exchange. Kenya and Indonesia.32%. The bank has a branch network of over 14. Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the London Stock Exchange. Apart from Indian network it also has a network of 73 overseas offices in 30 countries in all time zones.19% clerical staff and the remaining 25. The bank provides a full range of corporate. In recent past.774 as on 31st March.

The five-year term of Mr. Bhatt is the Chairman of the bank. The positions of CFO and the head of treasury have been segregated. Prior to this appointment. the senior management of the bank has been broadened considerably.Management The bank has 14 directors on the Board and is responsible for the management of the Bank’s business. T S Bhattacharya is the Managing Director of the bank and known for his vast experience in the banking industry. Bhatt will expire in March 2011. Mr. Mr. The management’s thrust on growth of the bank in terms of network and size would also ensure encouraging prospects in time to come. Bhatt would be a key to SBI’s future growth momentum. 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. Mr. 7 . Mr. P. and new heads for rural banking and for corporate development and new business banking have been appointed. Bhatt has had the best of foreign exposure in SBI. O. Recently. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan. reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. Mr. We believe that the appointment of Mr. Bhatt was Managing Director at State Bank of Travancore.

International Banking. 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. & Treasury operations. Corporate Banking.

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

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

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

12 . the former state-owned or state-associate banks. therefore. In order. when the First Five Year Plan was launched. sub offices and three Local Head Offices inherited from the Imperial Bank. and integrating with it. enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (Later named Associates). The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.First Five Year Plan In 1951. The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches. Later. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. the development of rural India was given the highest priority. 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. to serve the economy in general and the rural sector in particular. 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. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. 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. the State Bank of India (Subsidiary Banks) Act was passed in 1959.

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 .

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. • Contribution of retail credit to total bank credit stood at 26%. the • Delay in technology up gradation could result in loss of market shares. 14 . Insufficient capital may restrict the growth prospects of the bank going forward. Significant thrust on growing retail book poses higher credit risk to bank. especially in the retail segment. • Slow down in domestic economy would pose a concern over credit offtake thereby impacting earnings growth. could impact retail growth of SBI and hence slowdown in earnings growth. • Stiff competition. • Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion. • Growing retail & SMEs thrust would lead to higher business growth. Weakness/ Threats: The risks that could ensue to SBI in time to come are as under: • SBI is currently operating at a lowest CAR.

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

Introduction to Advance Product

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

17

Introduction to Loan Product
In the current busy world people find difficult in fulfilling there desires in addition to there basic needs. The earnings of the people are not adequate to fulfill other wants. They are in need of much required finance to secure some additional wants, that’s why they need help from others. For this so many government & private sector bank provide them money to fulfill their requirement, that’s call the Loan 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.

18

SBI Loan Product

SBI Home Loans
Purpose: Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies.

Eligibility :Minimum age 18 years as on the date of sanction Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing the loan repayment.

19

50% (p.Interest rate after three years may be Fixed or Floating as per the borrower’s choice made at the time of sanction. Income of your spouse/ your son/ daughter living with you.) Fixed Interest Rate Fixed Interest Rate To enhance loan eligibility you have option to add: 1.50% (p.)Floating 9.a.a.) Loan Amount up to Fixed interest rate Rs. cess.a.a.Loan Schemes SBI HI-FIVE Loan Loan Amount up to Rs.) OR 10. 3. provided they have a steady income and his/ her salary account is maintained with SBI.)Floating Interest Rate 8.50% (p.Interest Rates.00% (p. Regular income from all sources 20 . etc.) Fixed interest rate 1st Year 2nd and 3rd year After 3rd Year 8.) 10.) if the house/ flat being purchased is proposed to be rented out.a.a.00% (p.)Fixed Fixed Interest Rates Interest Rates 9.00% (p. 2. subject to some conditions.a. Expected rent accrual (less taxes. Depreciation. 4.00% (p. 9.)Floating Interest Rates Interest Rates OR OR 10.50% (p. 50 Lacs Note: .a. 5 Lacs SBI Easy Home Loan 8.a.00% (p.

and above. 21 . Public Sector Undertaking. Net Annual Income Rs. (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. you should be: • • • • • Individual between the ages of 21-65 years of age.000/. A Permanent employee of State / Central Government.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. 100. jeep or Multi Utility Vehicles (MUVs) A used car / jeep (not more than 5 years old).

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

50 % No other interest concession will be given under any tie-up arrangement or otherwise below the offer rate.50% Term Loan Overdraft 4.f. 12. Currently the rates are 3 Interest Rate Period For 4th & 5th year For 6th & 7th year 3.e.11.11.SBI EZEE CAR LOAN SCHEME (w.75% above Base Rate i.25% 4. 2010 Period Term Overdraft Loan First year 8% Fixed 8.50% of loan amount 23 .00% Base Rate 7.11.2010 (Base Rate 7.50% above Base Rate i.5% fixed For 2ND & 3rd year 10% fixed 10.e. 2009 to September 30.00% above Base Rate i. 4 Processing Fees 0.50 %) SL.e.5% fixed From 4th Year Onwards: The floating interest rate will be reset to applicable card rate contracted on the date of sanction.e.e. No 1 2 PARAMETER SCHEME Applicable to Scheme Period DETAILS All New Car Loans to Public From July 1.25% above Base Rate i.07.75% 4. 01.

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). 4. Latest salary-slip showing all deductions I. 7.T. 5. Proof of residence. 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. Repayment You enjoy the longest repayment period in the industry with us.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. A copy of passport /voters ID card/PAN card. 1. Repayment period: For Salaried: . 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. Signature identification from bankers of borrower(s). 2. 8. 24 . Proof of official address for non-salaried individuals. 6. 2 passport size photographs of borrower(s). 3.

a. 11. 7. 7.50% above Base Rate i.50% p.75%p.50% below SBAR i.2.e. 11.e. 25 .a.a. 0.25% below SBAR i.e. 7.25% above Base Rate i.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. 15. 0.5 lac & above) Up to 3 years (for loans below Rs. 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. 14.a.e. 11.75% p.50% below SBAR i.a.00% p.00% p.a. 0.75% p.75% below SBAR i. 3.25%) 0. 12.e.e. Used Vehicles:Tenure Up to 3 years Above 3 yrs Rate of Interest 7.

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

Above Rs.4 lacs Rate of Interest 3. currently lacs 12.4 lacs and up to Rs. 20.75% above Base Rate. 10.Interest Rates Base Rate 7.a. (0. Above Rs.25% p.0 lacs Rs.50 5.50% concession in interest for girl student) Processing Fees • • No processing fee/ upfront charges Deposit of Rs.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.e.a. 01. 5000/. currently 11. currently 11.f.50 % (w.2010) Loan Amount For loans up to Rs.75% p.50 lacs 4.75% p.7.7.07.25% above Base Rate. Place of Study Studies in India Studies Abroad Loan Amount Rs.0 lacs Repayment in Period 5-7 5-7 27 .25% above Base Rate.a. whichever is earlier.

co-obligator can be spouse or the parent(s)/ parents-in-law acs to Rs.0 lacs : No Margin For loans above Rs. 10.00 lacs for Studies in India and up to Rs. 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.4. 20. 4 lacs For loans up to Rs.4.Security Amount Up to Rs. at its discretion.00 lacs for studies abroad No Security Collateral security in the form of suitable third party Guarantee.0 lacs: Studies in India: 5% Studies Abroad: 15% 28 . along with the assignment of future income of the student For payment of installments. In case of married person. in exceptional cases. 7.50 lacs Margin • • • • For loans up to Rs. The bank may. All loans should be secured by parent(s)/guardian of the student borrower.

Salary slips/ Form 16 etc) 29 . 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 last 2 years Brief statement of assets and liabilities.Documentation Required • • • • • • • • • Completed Education Loan Application Form. of the Co-borrower Proof of Income (i. Mark sheets of last qualifying examination Proof of admission scholarship.e.

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

00% PA Repayment The loan is repayable in 48 EMI. This is amongst The lowest fees in the industry. There are no hidden costs or other Administrative charges. 31 . without attracting any prepayment penalty. Processing fees have to Be paid up front. You are allowed to pay more Than the EMI If you wish to. Interest Rates 16.Margin We do not insist on any margin amount. Security NIL Processing Fee Processing charges are 1-2% of the loan amount.

• 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.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.25.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. Property Loan Scheme Avail of an All-Purpose loan against mortgage of any of your property. the loan can be obtained for any purpose whatsoever. Purpose This is an all purpose loan.. up to 120 months for salaried individuals with check-off facility • No Hidden costs or administrative charges. 32 . If amount of loan is Rs.• 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. i.e. • No prepayment penalties. You can have surplus funds at any time thereby conveniently reducing your loan liability and interest burden. 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. want to take your family to a well-deserved holiday or for a sudden medical emergency? You have some property. Enjoy the SBI Advantage.

Eligibility You are eligible if you are: A. 000/. An individual who is. B. An Employee or b. 50. a. Maximum age limit: 60 years. Silent Features Loan Amount Minimum: Rs.12.1 crore. Interest 33 . 000/Maximum: Rs. Your Net Monthly Income (salaried) is in excess of Rs.000/-. A Professional. Engaged in agricultural and allied activities.25. 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. The income of the spouse may be added if he/she is a co-borrower Or a guarantor. self-employed or an income tax assessee or c.1.or Net Annual Income (others) is in excess of Rs. C.

i. Security As per banks extant instructions. In other cases 1. floating (w.e.f. 01.25% p.e. 34 .25% above SBAR i.Term Loan 1.50% p.01.00% above SBAR.a.e.13. floating for loans up to Rs.00 crore.a. up to 120 months for salaried individuals with check-off facility. You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty.1.13.2009) Repayment Maximum of 60 equated monthly installments.

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

 To sort out the prospective leads from the data I have collected through the survey. 36 .  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 services that other bank given to their customer. make sure that they are satisfied with the product.  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 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.  To place SBI loan Product ahead of the competitors.  To build the relation ship with the customers and to follow up them.

• Aware the Bank about the customer problems. All the analysis and suggestions are based on the analysis of the both primary and secondary data. especially in case of automobile sector.Significance and scope The geographical scope of the study is restricted to Malad(W).only with sample size of 80 people. 37 . 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.

Research methodology 38 .

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

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

Analysis of data 41 .

On which bank you depend for your regular transaction? SBI ICICI HDFC OTHER TOTAL NO. 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.GRAPHICAL REPRESENTATION OF DATA Q1. around 33% of people are using ICICI Bank for their transaction and only 5% & 2% of people 42 .

Q2.are using HDFC & other Bank service respectively in Malad. It also shows that SBI have the highest market position in Malad as per my sample. In this 15% most of the people are from typical rural area (Farmers). 43 . Are you aware of products & services provided by SBI? YES NO 85% (68) 15% (12) Total No. the rest 15% have the idea about the product they are using. 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. 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.Q3.

OF PEOPLE 85% (68) 12% (9) 2% (2) 1% (1) 80 According to my sample size 85% of people prefer SBI for loan product. but some people prefer ICICI. HDFC or OTHER Bank for loan because they are working with that bank & it is easier for them to get loan from their bank & it easier for them to pay the interest because it is less as compare to other bank because they are the employee of that bank.Q4. Which bank you prefer for taking loans? SBI ICICI HDFC OTHER TOTAL NO. 45 .

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. 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.Q5. Q. bank in India and having partnership with RBI (Reserve Bank of India) and other association. OF PEOPLE 47% (38) 20% (16) 15% (12) 10% (8) 8% (6) 80 46 . 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.

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. 20% of people took education loan for their children. From the 1800 people 47% of people took home loan from SBI.From the sample size 85% of people are using the SBI loan product. 47 . 10% of people took personal loan.

All of them satisfy with the product provide by SBI. 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. What do you feel about the services providing by SBI in Loan product? Bad Satisfactory Good Excellent TOTAL NO. 48 . 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.Q7.

It’s easier for people to repay the whole loan amount with its interest with low interest rate and with longer repayment period.Q8. 49 . 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. 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 .

 Most customers are shifted from other bank’s Loan product to SBI because of hidden charges.  Approximately 43% of Loan product users said that the service of SBI in Loan product is excellent. From this project it is found that SBI advance product having the 1st place in the market at Malad(W). REASON FOR HIGHLY USE OF SBI LOAN PRODUCT 51 .  A response from customer care is so clear & good. All of SBI customers are satisfied with the services provided by the bank.  Many of these customers satisfied with the low interest rate and longer repayment period of the Loan product. there is a great opportunity to compete with ICICI Bank & to retain its customer by fulfilling the requirement of customer in SBI Loan product. prefer to take loan from SBI. high interest rate.  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.  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. less repayment period.  Most of the customers at Malad(W).  Government employees are more concern than private employees for Loan product.

 LESS PAPER WORK  ATTRACTIVE INTEREST RATES  TRANSPARENCY  SIMPLE & FAST PROCESSING  LONGER REPAYMENT PERIOD  QUICK PROCESSING Suggestion & Recommendation 52 .

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

(Rahul Das)  A customer awareness programmed should be taking place in rural area. (Anil Banerjee) 54 . (Anand Shinde)  SBI should take steps to solve customer problems immediately. 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. (Alok Sharma)  Loan sanction date should be according to customer convenient. Suggestions given by the consumers at the time of survey:  There is more time period for repayment of education loan.  SBI must focus on Segmentation based on customer knowledge Product offering based on customer demand.  SBI must take feedbacks of customers regarding features & services. (Nimesh Shah)  Agents should be trained. well educated & proper trained to convince the people about different advance product.

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

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

Specify (_____________) Q. Specify ( ______________ ) Q.Q. Q. What do you feel about the services providing by SBI in loan product? a) b) c) d) Bad Satisfactory Good Excellent Q. Which features you like most in Loan segments of SBI? a) Less paper work b) Attractive interest rate c) Transparency 57 . If you prefer SBI for taking loan than what influence you to take Loan from SBI? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _________________. 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. _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _______________________. 58 . Any suggestion you want to give for the betterment of SBI Loan product.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.

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

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

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