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“TO STUDY THE CREDIT APPRAISAL IN HOME LOAN FINANCE”
GANGAPUR ROAD, NASHIK- 422 013 SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY MISS. SEEMA D. HANDORE MBA-II (FINANCE) UDER THE GUIDENCE OF PROF. D.D. WALKE YEAR 2009-10 M.V.P SAMAJ’S INSTITUTE OF MANAGEMENT RESEARCH AND TECHNOLOGY GANGAPUR ROAD, NASHIK-422002.
Date: 1st Sept, 2009 TO WHOMSOEVER IT MAY CONCERN
This is to certify that Ms. Seema Dayaram Handore has completed her summer project on “To Study the Credit Appraisal in Home Loan Finance” in our organization. The duration of the project was from 1st June to 31st July, 2009. She demonstrated zeal to learn with full enthusiasm. She has been sincere, hardworking and punctual in her work. We wish her success for her future endeavors.
Mr. S. M. PISU Dy. Manager (credit).
I sincerely thank State Bank of India for giving me the opportunity to learn. I acknowledge my profound sense of gratitude & sincere thanks to the management of State Bank of India for offering me this project & summer training in their prestigious organization. I would like to thank Mr. S. M. Pisu, who has given me their valuable time throughout the project duration and provided me with all the relevant information along with valuable suggestions and recommendations whenever required. I also thank Prof. D.D. Walke our project guide without his help and guidance the project would not have been successfully completed.
Seema D. Handore
I Ms. Seema Dayaram Handore student of MBA hereby declarer that the project titled “To Study The Credit Appraisal In Home Loan Finance” has been carried out by me in partial fulfillment of the MBA program under the University of Pune. This project was undertaken as a part of the academic curriculum as per University ruled & norms and also by non-commercial interest or motive. It is my original work & is also not submitted elsewhere for any other purpose earlier.
Signature Seema D. Handore (Student IMRT)
C. COMPARATIVE ANALYSIS. WHAT IS CREDIT? B. PARTICULARS INTRODUCTION: A. D. 2. RESEARCH METHODOLOGY: A. INTRODUCTION TO CREDIT APPRAISAL: A. IMPERIAL BANK. C. B. 4. F. no. B. 8. 5. BANKING SECTOR IN INDIA B. ORGANISATION STRUCTURE. WHAT IS CREDIT APPRAISAL? PRODUCT PROILE DATA COLLECTION: A.INDEX Sr. BANKING STRUCTURE IN INDIA ORGANISATION PROFILE: A. B. EVOLUTION OF BANK. FDI IN BANKING SECTOR C. MAJOR CHANGES IN CONDITION. SBI HOME LOAN. GENERAL CAUSES OF REJECTION OF PROPOSAL. . FIST FIVE YEAR PLAN. DATA COLLECTION(SOURCES) INTRODUCTION TO BANKIG SECTOR IN INDIA: A. D. WHAT IS APPRAISAL? C. B. RECENT MODIFICATIONS IN SBI HOME LOAN. LIMITATIONS. DOCUMENTS OF HOME LOAN. RESEARCH DESIGN C. OBJECTIVE OF STUDY. 7. PRESENT SITUATION D. C. E. 3. no. D. PROCESS OF HOME LOAN. SELECTION OF TOPIC. OBJECT OF PROJECT. ANALYSIS OF BRANCH PERFORMANCE Pg. ANALYSIS & INTERPRETATION: A. BUSINESS. 1. MEANING B. E. 6.
APPENDICES. 10. INTRODUCTION . BIBLOGRAPHY. 11.9. CONCLUSION. 12. RECOMMENDATIONS & SUGGESTIONS.
A. For all these needs we want money? It involves large investment. There has been a perceptible shift towards Customer Relationship Management (CRM) mainly arising out of the element of intensive competition infused into the industry by the arrival of private players. Previously in barter system the goods were exchanged for goods. clothing and shelter. It is very essential to have adequate knowledge about every aspect of the job.e. Everyone does not have that much money to invest at once. The Project provides opportunity to understand the effectiveness in performance of the organization as well as the student during the 2 months. O B J E C T O F T H E P R O J E C T The project forms a very vital aspect during the curriculum of M. B. SELECTION OF TOPIC The Banking Industry has been undergone some fundamental changes in its approach to banking. so as to handle each & every situation effectively for applying theoretical knowledge in practical life. etc as large number of customers can be taped with diversification of . The project gives the live experience about the various aspects of the management that is helpful from future point of view. It is in existence right from ancient time. Now the scenario has changed to fulfill the needs of human.B. Borrowing and lending is the important function of the developing economy. The old concept that emerged as new is “Loan” The Banking Industry has been undergone some fundamental changes in its approach to banking.INTRODUCTION We know three basic needs of human beings i. The concept of retail banking introduced with the increase in number of banks. vehicle finance. the private player’s especially introduced this concept. At the end of the first year students are required to under go summer training and a project for span of two months. food. With free economic reforms government permitted private players to enter into the banking business along with the existing nationalized banks. Retail Banking and are concentrating on Small Medium Enterprise individual finance like housing finance. A. The banks are segmenting their portfolio into different segments like Personnel Banking. In 2002 the government allowed Foreign Banks to enter into the Indian Market.
To understand the process and key issues in disbursement. C. To analyze performance of bank. OBJECTIVE OF THE STUDY The Credit Manager plays a crucial role in increasing banks profitability as the major portion of funds are utilized by bank for the purpose of lending of loans and advances to get more return on account of the “Interest” reducing risk in financing. The study was related to Credit Appraisal System for specifically Home Loan. LIMITATIONS Following are the limitations for carrying out this project work: As the project was restricted for the period of two months. hence the data obtained may not be sufficient for interpretation.risk as it evolved lower risk than corporate banking. The study was related to the Financial Services sector where the Financial Institution did not given each & every information of their working procedure. . disbursement. To analyze the performance of the bank regarding sanction. To understanding the process and key issues in sanctions. so other Credit Appraisal System was not taken into consideration for the study. D. To find out the causes of rejection of proposals. Objectives of the study: To study the appraisal process of Home Loan proposal. To study the restricted areas of credit of the bank. All banks are increasing their exposure to this area.
RESEARCH METHODOLOGY .
Oxford Dictionary: “Research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. . It guards the study from going off track and any premature tripping. It is an attempt to find practical solutions to the problems with the help of application of scientific methods. It is discovery of facts. Design implies some purpose and thoughtful activity. RESEARCH DESIGN: Research design is the logical and systematic planning and directing of a piece of research.” B. The purpose of research is to discover the answers of questions through application of scientific procedure. The aim of research is to find out the truth which is has been discovered as yet. It is a logical and systematic plan that guides the entire study C. It is very important aspect of any investigation.RESEARCH METHODOLOGY A. A research design is a vital requisite for any research project. MEANING: Research is a scientific and systematic search for pertinent information on a specific topic. Research means search for knowledge. developments of facts and verification of facts. DATA COLLECTION: Data collecting is collecting information for project while studying a business through different sources of data collection. It helps to economize on the resources used and prepare the researcher for potential roadblocks through out the task.
ii) Autobiography :- . “There are several methods of collecting primary data they are” i) Letters:Letters are used by researchers.The research methodology includes methods of data collection. Data collection process begins after research problem has been defined & research plan chocked out while deciding about method of data collection to be used for studies. as evidence in the study of a project letters often have some propagandist intention since they are designed by a writer to convey to the recipient. It provides data gathered at first hand the readily available information. some impression more talking than mere facts. There are two types of data as follows:1) 2) Primary Data Secondary Data SOURCES OF DATA COLLECTION PRIMARY SOURCES SECONDA R-Y SOURCES LETTERS AUTOBIO G-RAPHY OBSERVA T-ION METHOD QUESTIO NNAIRE METHOD BIOGRAP H-IES 1) PRIMARY SOURCES:The primary data is collected during in an experimental research but in case we do research of descriptive type & perform surveys.
magazines and news paper:Through reference books various information is obtain about subject as well as about organization. Under this method information is sought by way of investigators own direct observation without asking from respondent. iv) Questionnaire method:This method of collection data involves presentation of oral. There are several methods of secondary data. This method can be used through personnel interviews. 2) SECONDARY SOURCES:Secondary data that are already available that is they refer to data which is already been collected and analyzed by someone else. verbal stimuli & reply in terms of oral verbal responses. A) Reference books.Which are written some time after the events recorded in them and intend for publication. B) Internet technology:- . enables the writer to select and display such of his experiences and action that subsequently proved to be significant features in his ‘Life history’. The prospective view on the other hand. The magazines and news paper also provide a wide variety of information. iii) Observation method:The observation method is most commonly used method. may be expected to suffer from continuous stylization.
By a single click we get lots of information of a particular company having websites and it is very presentable. INTRODUCTION TO BANKING SECTOR IN INDIA .It is very useful in the fast world now days.
FDI in Banking Sector The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment. ICICI Bank and HDFC Bank. C. With the second dose of nationalization. Indian banks are considered to have clean. control. namely. the government of India initiated measures to play an active role in the economic life of the nation. which came to be known as New Generation tech-savvy banks. the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate. B. product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In 1949. government banks. In the early 1990s the then Narsimha Rao government embarking on a policy of liberalization. Government in order to have firm grip over this sector nationalized the private banks first in 1969 and later in 1980. until the 1990s.A. and inspect the banks in India. where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%. which has seen rapid growth with strong contribution from all the three sectors of banks. in a major step nationalized Reserve Bank of India in 1948. closer to the average growth rate of the Indian economy. In terms of quality of assets and capital adequacy. private banks and foreign banks. which included banks such as Global Trust Bank. The Government of India. at present it has gone up to 49% with some restrictions. After this. UTI Bank. the GOI controlled around 91% of the banking business of India. banking in India has attained fair amount of maturity in terms of supply. Present Situation In the present situation. From now onwards. This almost kick started the banking sector in India. Banking Sector in India Immediately after Independence. the nationalized banks grew at a pace of around 4%. (now re-named as Axis Bank). government adopted Industrial Policy Resolution in 1948 in which it envisaged a mixed economy. government decided to play an active role in different segments of an economy including banking and finance. strong and transparent . In pursuance of this policy. gave licenses to a small number of private banks.
They have a combined network of over 53. especially retail banking. For assessing the performance of the bank.2% and 6. old private sector banks. One may also expect M&A’s. the public sector banks hold over 75 percent of total assets of the banking industry. Since Indian economy is witnessing strong growth the demand for banking services. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. According to a report by ICRA Limited. 1934 is called scheduled bank. Currently. D.000 ATMs. a rating agency. Banking Structure in India The commercial banking structure in India comprises: Scheduled Commercial Banks and Unscheduled Banks. new private sector banks and foreign banks . 29 private banks (these do not have government stake. the Reserve Bank of India categories the bank as public sector banks. The banks which are included in the second schedule of Reserve Bank of India (RBI) Act. they may be publicly listed and traded on stock exchanges) and 31 foreign banks.000 branches and 17.5% respectively. India has 88 scheduled commercial banks (SCBs) . and asset sales.balance sheets relative to other banks in comparable economies in its region.28 public sector banks (that is with the Government of India holding a stake). mortgages and investment services are expected to be strong. takeovers. with the private and foreign banks holding 18.
ORGANISATION PROFILE .
while the business of discounts on private as well as salary bills was almost the exclusive . shaped by ideas culled from similar developments in Europe and England. cotton piece goods. Evolution of bank 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. Their evolution was. or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent.1 lakh and the period of accommodation confined to three months only. Loans against goods like opium. All commodities. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). treasure. salt woolens. were either pledged or hypothecated to the bank. Business The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities. plate. Indians were the principal borrowers against deposit of Company's paper. Loans were restricted to Rs. keeping cash accounts and receiving deposits and issuing and circulating cash notes. Demand promissory notes were signed by the borrower in favor of the guarantor. land or other real property was. sugar and jute. it was the first joint-stock bank of British India sponsored by the Government of Bengal. forbidden. commonly called Company's Paper. however. B. 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. jewels. cotton. 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. indigo. which began to be financed later. 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. Lending against shares of the banks or on the mortgage of houses.A. Primarily Anglo-Indian creations. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. which was in turn endorsed to the 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. including tea. A unique institution. The security for such loans was public securities. bullion.
But the main function of the three banks. reserves. D.72. When India attained freedom. the right of note issue of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the sole power of issuing paper currency within British India. The task of management and circulation of the new currency notes was conferred on the presidency banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches. agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centers in India.11. By 1876. With the passing of the Paper Currency Act of 1861. they embarked on branch expansion at a rapid pace. First Five Year Plan . the increases in some cases amounting to more than six-fold. The financial status and security inherited from its forerunners no doubt provided a firm and durable platform. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches. as far as the government was concerned. But the lofty traditions of banking which the Imperial Bank consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other bank in India could perhaps then equal. None of the three banks had till then any branches (except the sole attempt and that too a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such authority. deposits.275. the branches. the Banks of Bombay and Madras had fifteen each. C. While the Bank of Bengal had eighteen branches including its head office. Imperial Bank The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices.85 crores. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also secure a vital place in the country's economic life. Bombay and Madras occurred after 1860.14 crores and Rs. deposits and advances of Rs. seasonal branches and sub agencies. investments and advances.94 crores respectively and a network of 172 branches and more than 200 sub offices extending all over the country. was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.monopoly of individuals Europeans and their partnership firms. the Imperial Bank had a capital base (including reserves) of Rs. Major change in the conditions A major change in the conditions of operation of the Banks of Bengal. E.
the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India. 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. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. ORGANISAION STRUCURE . when the First Five Year Plan was launched. therefore.In 1951. the development of rural India was given the highest priority. and integrating with it. In order. the former state-owned or state-associate banks. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. F. to serve the economy in general and the rural sector in particular.
Group) CGM (Asset mgmt. OFFICER DMD (Corporate strategy & new business) GM (Corporate communication & change) CHIEF VIGILANCE OFFICER DMD & CHIEF FINANCE OFFICER DMD (Information technology) DMD (Inspection & management audit CHIEF ECONOMIC ADVISOR DMD & GE (national banking DMD & GE Rural business DMD & GE (MC) DMD & GE Corporate banking DMD & GE Internation al banking DMD & GE Global markets DMD & GE Associates & Subsidiaries Mid corporate region Mid corporate branches Regional head/ direct branches. DEVPT.CHAIRMAN MD & CHIEF CREDIT & RISK OFFICER DMD & CORP. group) GM (project finance leasing) Personal Banking Business Unit Government Business Unit SME Business Unit Banking operations Marketing – cross selling CAG branches SAMG branches . foreign offices & subsidiaries Domestic & global treasury Associates & Subsidiaries LHO & (circles) Regional Offices Branches CGM (corporate Accts.
. WHAT IS CREDIT? You are granted credit when an organization or individual makes a sum available for you to borrow.INTRODUCTION TO CREDIT APPRAISAL A.
or mortgages. Compound interest is more common. 000/-.There are two main types of credit: Home loans. Mortgages. or home loans.100 and interest is payable at an annual rate of ten per cent.110. And every time you pay off some of the outstanding amount.and repay Rs.800/. can be repaid in variable installments but most personal loans specify fixed repayments of approximately equal amounts. It is rarely charged on borrowings. For example. and personal or shop loans are linked to a specific item or items – for example. Repayment Loans are normally repaid in regular installments over an agreed period of time. be certain to make your repayments on time. Revolving credit on payment cards can give you access to a fixed amount of money that you can spend as you wish. For example – .100/-. the total cost is Rs. or you can face financial penalties. if you borrow Rs. you have Rs. So if you have a credit limit of Rs.1. This is known as simple interest. or a house. It means that interest is charged on the interest at regular intervals. that proportion of your credit limit becomes available for you to spend again.available to spend. in a wide range of retailers and other outlets. Revolving credit means that you always have access to the amount of your line of credit that remains unspent. lenders generally charge interest on loans and revolving credit. Whatever type of loan you choose. If you want to make another major purchase when you have finished paying off one loan. Interest In order to cover the lending risk and to make a profit on their money.30/. you need to negotiate a new loan. a new kitchen. You must remember this when you are calculating your repayments. spend Rs.
C. WHAT IS CREDIT APPRAISAL? It is the process of appraising the credit worthiness of a loan applicant. previous loans. a week. are taken into account while appraising the credit worthiness of a person. With revolving credit. The documents submitted by the applicant are verified by the panel of officials / the appraisal committee. In year two. the amount of interest is worked out in advance and added into the repayments. a month and so on. continuity of employment. nature of employment. An appraisal report is only good for 90 days and most mortgage companies will require a certified appraiser.121. such as the site. After the verification of the documents the appraisal committee approves the loan application and then submits the / apprises the loan application to the sanction committee for loan sanction. The committee checks the genuineness of the documents and confirms whether the applicant will be able to repay the loan installments or not. Legal Appraisal . There is often a penalty if you want to repay the outstanding amount earlier than agreed. Factors like age. Every bank or lending institution has its own panel of officials for this purpose. and so on.If you owe Rs. WHAT IS APPRAISAL? Appraisals are needed to accurately determine the value of the loan and also inspect the property's condition. amenities and the physical condition of the property. repayment capacity. After the appraisal of the loan to the sanctioning committee in case the sanctioning committee finds any fraud documents then both the applicant as well as the appraisal committee is held responsible. credit cards. B. Interest may be compounded after any period – a day. at any point. The appraiser collects data pertinent to a report. You can often avoid paying any interest at all if you repay the total amount you have borrowed on the date when the first repayment is due. number of dependents. income. the appraiser arrives at the final estimated value. so you will owe Rs.100 and are charged ten per cent compound interest each year. you can repay as much or as little as you want.110. at the end of year one you will owe Rs. Through considerable research and data collection of both general and specific. General Appraisal The appraiser obtains an estimated value through the interpretation of the market. etc. With fixed repayment loans. the lender will charge ten per cent of this sum and add it to the outstanding amount.
In this stage. An approximate value of EMI can be arrived at using the following formulaEMI= ½ (Lr (1+r) ^n/ (1+r) ^n-1) Where. EMI payments generally start after the loan has been fully disbursed or after 12 months from the date of first installments. LC= land component. The disbursement amount is calculated using the following formulaRD=AV*CC/100*PC/100+LC/100-(BC-CM) Where.In legal appraisal the documents submitted by the applicant are verified by a lawyer to confirm whether the holder would be able to generate a mortgage in favor of the bank or not Technical appraisal It is considered as the important stage of the appraisal process. RD= recommendation for disbursement in Rs. PC= progress of construction in % points. All other information provided by the applicant is asked to submit the documents regarding guarantees. The EMI is determined on the basis of the loan size. Calculation of EMI Housing loans are long term loans that are replayed in equated monthly installments (EMI). The documents needed change depending upon whether house is being purchased or constructed. L=loan’ r=rate of interest in decimal & n=loan period. Each of which includes repayment of interest as well as the principal amount. The loan amount can be disbursed entirely or in installments. CM= cumulative disbursement mode. interest rate and loan period. the applicant’s original documents are verified. BC= borrowers contribution. The officer of the technical appraisal even safeguards the borrower’s interest. . AV=aggregate value = LC+CC. The disbursement amount is generally dependant on factors such as own funds available and the extent of completion of construction. Bank’s carry out technical appraisal to safeguard the applicant’s interest’s before and after the property selection.
PRODUCT PROFILE (TYPES OF HOME LOANS) VARIOUS TYPE OF HOME LOAN: .
with no extra cost.5 lacs (Other terms and conditions – as applicable to regular Home Loans) III. The loan is granted as an Overdraft facility with the added flexibility to operate Home Loan Account like your SB or Current Account. ‘SBI-FLEXI’ HOME LOANS: A customized product designed to enable borrowers to hedge their Home Loan against unfavourable movement in interest rates. ‘SBI-REALITY’ HOME LOANS: A unique product if borrowers are on the look out for a loan to purchase . specially in the wake of low yields from other deposit/ investment avenues. Minimum Loan Amount: Rs.I. The product gives one time irrevocable option to choose one of the three customized combinations of fixed and floating interest rates and also to choose the order in which the fixed and floating rate will be availed. The product serves to minimize your interest cost by enabling you to park your surplus funds in ‘SBI-MaxGain’ (with the benefit to withdraw the surplus funds whenever require). Minimum Loan Amount: Rs.5 lacs (Other terms and conditions – as applicable to regular Home Loans) II. ‘SBI-MaxGain’ HOME LOAN: An innovative and customer-friendly product to enable one to earn optimal yield on savings and minimize interest burden on Home Loans.
‘SBI-OPTIMA’ ADDITIONAL HOME LOANS ‘SBI-HOMELINE’ SPECIAL PERSONAL LOANS: . Borrowers are also eligible to avail another Housing Loan for construction of house on the plot financed above with the benefit of running both the loans concurrently.1 crore and with a comfortable repayment period of upto 25 years. Repayment is highly customized. giving you the option to repay through regular EMIs or through maturity proceeds of the securities pledged. The loan is available for a maximum amount of Rs.a plot of land for house construction. (House construction should commence within 2 years from the date of availment of ‘SBI-Realty’ Housing Loan) (Other terms and conditions – as applicable to regular Home Loans) (* relaxation considered on case to case basis) IV. All one have to do is pledge any financial security that they have and will get a Home Loan for your dream home. ‘SBI-FREEDOM’ HOME LOANS: A revolutionary product designed for customers who are on the look out for a source of finance for a property they want to invest in without mortgaging the same. (Other terms and conditions – as applicable to regular Home Loans) V. One also have an option to take the loan by way of mortgage of the property and pledge financial securities in lieu of margin money. For those who do not want to pay stamp duty for mortgage of their property or go through the hassles of creation of mortgage.
with a view to reinforce the customer loyalty and to maintain long term relationship with the borrowers. Original Home Loan and all ‘SBI-Optima’ Home Loans/’SBI-Home Line’ Personal Loans can run concurrently Comfortable repayment obligations – Tenure of the loans equal to the residual maturity of the original Home Loans. Purpose ‘SBI-Optima’ Additional Home Loans ‘SBI-Home line’ Special Personal Loans to meet expenditure towards major repair. addition to their house/flat. In case of takeover of Home Loans from other Banks/HFCs. fixtures and consumer durables General purpose loan to meet expenditure to meet foreseen/unforeseen contingencies Eligibility ‘SBI-Optima’ Additional Home Loans 18 times NMI (for salaried borrowers)/ 1 ½ times NAI ( for others) or (i)25% of the original project cost of house/flat (ii) 85% of the cost of repairs etc. ‘TEACHER PLUS’ AND ‘OIL PLUS’ . purchase of furniture. (Other terms and conditions – as applicable to regular Home Loans) VI. renovation. the borrower should have fulfilled the above conditions with the present Bank/HFC. the first bloc commencing on the expiry of 5 years from the date of sanction of original Home Loan. Whichever is lower (EMI/NMI ratio of all loans should not exceed 60%) 18 times NMI (for salaried borrowers)/ 1 ½ times NAI (for others) ‘SBI-Home line’ Special Personal Loans Other Salient Features Inbuilt provision for availment of the loans on the expiry of each bloc of 5 years.Innovative and value added products extended to existing Home loan borrowers with a satisfactory repayment record of 3 years and whose loan is Standard Asset. or (iii) gap between 85% of the current market price of flat/house and actual outstanding loan dues . ‘PRASHASAN PLUS’.
25% below the applicable interest rates on Home Loans to niche client groups like Government Employees. Teachers. employees of public sector oil companies etc.The above ‘ plus’ schemes offer Concessional interest rate of 0. (Other terms and conditions – as applicable to regular Home Loans) .
DATA COLLECTION A. SBI HOME LOANS .
No of co-borrowers: -Maximum 3. Alteration of the house. Purchase of a new house or flat. Purchase of existing house / flat. Repair. vii. iv. Providing unmatched support through easy terms and adequate finances to fulfill your ambition / dream to own / construct a house. v. Type of borrowers: . ii. Eligibility Basic Eligibility: Individual(s) with steady source of income including persons engaged in agriculture & allied activities. • • • Salaried Self employed professionals Self employed non-professionals Age limit: -The applicant should be of minimum 18 years and maximum 70 years of age. iii. vi. No of dependents: -Maximum 5. Renovation. Construction of a new house. Purchase of a plot for the construction of new house. Purpose i.“Brings Your Dream House on Earth” At SBI we take extra care to build your dreams into reality.
i. Self –Employed Businessmen / Non – professionals i. Minimum income as per P&L A/C: -NA ii. Chemist with B. e. d. i. ii. Architects. c. b. Self – Employed professionals Various Self–Employed Professionals area. Consultants like Engineers / MBAs etc. Non Resident Indian: . f. Eligible entity: -NA ii. Pharm. Lawyers (only advocates practicing with Supreme Court / District Court or working with Solicitors / Practicing Tax consultants). Doctors / pathologists. Business continuity: -Minimum 3 years. Professional qualification certificate: -Applicable. Resident Indians. Salaried: Minimum qualification: NA Minimum number of years in total employment: -Minimum 3 years. CA / ICWA / CS.
Loan amount: For Salaried persons 36 times of Net Take Home Pay For Business men / Professionals 3 times the Net Income of Income Tax return Margin: -20% of Project Cost / valuation cost upto Rs. Photo copy of Pass Book of concerned bank A/C. Minimum loan: 3 lacs. And all other documents to be submitted as per the requirements of the bank. -For construction / renovation / extension of flat / house. 5 lacs -25% of project cost / valuation cost above Rs. Documents: • • • • • Photo copy of Passport & Visa. Employment proof / business proof. Security: -Equitable mortgage on the plot / house / flat being purchased or the house / flat being constructed / purchased / renovated.i. Repayment: . Maximum loan: 20 lacs. Disbursements: -Direct disbursement of loan to vendor of the house/flat where building is ready for possession. 5 lacs. ii. disbursement is done in phases. Residential proof. iii.
25. 2 lacs Rs. 500/Above Rs. 2 lacs 0. which comes out as a ratio of EMI to NMI.50% (* Processing charges changes from scheme to scheme.-In Equated Monthly Installments (EMIs) comprising of Principal and Interest in a maximum period of 25 years including moratorium period. *charges 20 years 15 years 25 years Monetary ceilings: MPLA is also subject to following monetary ceilings: .2 to 5 lacs 50% Above Rs. which processes the loan application.) Maximum Loan: Loan eligibility is determined by EMI/NMI ratio.2 lacs 40% Above Rs. depending on the family size and availability of disposable surplus income. EMI/NMI Ratio: Maximum Permissible Loan amount (MPLA) is subject to the following income-wise graded ratio: Net Annual Income EMI/NMI ratio Upto Rs.5 lacs 55% Increase upto 5% in the above ratios may be permitted by the controller of Branch/ RACPC. Maximum period including moratorium: Age upto 45 years Age above 45 In case of joint borrowing Processing charges: Loan amount Upto Rs. Repayment Period: -Starting from the month following month of full disbursement of loan. irrespective of borrower’s age i. Rs25.000/Nil. the loan amount is decided by the repayment capacity of borrower(s).001 to Rs.e.
e.e. -Interest rate concession for loans with LTV ratio of 75% or less. 1 crore Loans above Rs. 20% margin) (i. -Loans above Rs. LTV Ratio: i) ii) Loans upto Rs.3 lacs whichever is less where check off facility or additional security or 3rd party guarantee good for the amount is available.1 crore at floating rates only. Administrative approval: . • Income of spouse/son/ unmarried daughter and expected rental of proposed house can be clubbed [subject to conditions] • Regular income from other sources (with proof) can be considered. additional amenities.1 crore 80% 75% (i. Type of Loan: -Term Loan.10 lacs require prior administrative clearance of network GM] • For furnishings and consumer durables: 10% of the project cost or Rs. insurance premium. 25% margin) Interest: -Loans at fixed / floating rates and combination of fixed and floating rates.• For repairs / renovation: Rs 10 lacs [Loans above Rs. stamp duty & registration charges for purchase/construction of new or old property. Total project cost: Total project cost to include cost of land.
Insurance: -Insurance of the house / flat covering all risk is necessary.25% 9.75% 10% 10.000 9.00% . controlling authority would be permitted to grant administrative clearance. ELIGIBILITY CALCULATION: PARTICULARS Gross Monthly Income Less: Deductions Net Monthly Income Less: Obligations Maximum Amount For Repayment AMOUNT(RS) ***** ***** ***** ***** ***** E. Inspections should be recorded in Inspection Register.75% 11.25% 10.M. If repayments are in arrears for two successive months.yearly intervals.1.I CHART (for 1 lac) No. Inspection: For standard assets: • • • • Initial inspection(s) at the time of disbursement/ release of instalments during construction. of Months 9% EQUATED MONTHLY INSTALMENTS FOR LOAN AMOUNT OF Rs. Thereafter once every 3 years. In all cases the life & condition of the house shall be such that the bank’s security charge is not affected till full repayment of the loan.50% 10. For >10 years old. For NPAs: At half . No prior administrative clearance required. inspection should be conducted immediately. For purchase of a house upto 10 years old no A/C required.00.50% 9. Property inspection is to be carried out and recorded at each stage of disbursement.
512 2.853 1.138 1.536 2.056 1.800 1.262 2.169 1.014 1.040 1.816 3.544 1.780 5.280 1.006 4.614 3.215 2.121 1.647 1.049 1.804 3.123 1.138 1.137 1.803 1.271 2.271 1.210 1.327 1.584 1.021 1.342 1.181 8.571 1.532 1.673 1.091 1.090 1.394 1.166 1.122 1.322 1.406 1.097 1.251 1.172 1.435 1.174 2.000 987 974 963 952 942 933 924 916 17.638 3.433 1.459 1.781 3.105 1.597 1.548 2.098 1.749 1.557 1.988 1.077 1.250 2.108 1.572 2.156 1.768 5.828 3.735 3.029 1.181 1.227 2.473 1.591 3.091 1.844 2.698 1.761 1.075 1.465 1.002 990 978 968 958 949 940 932 17.491 1.349 1.446 1.046 1.061 1.152 1.023 1.132 8.626 3.230 1.960 4.208 1.037 1.005 994 984 974 965 956 949 17.266 1.060 1.046 1.295 1.193 8.661 3.463 1.149 2.187 1.486 1.489 2.157 1.517 1.774 1.081 1.283 2.891 1.524 2.059 1.001 1.185 1.032 B.119 1.660 1.513 1.017 4.180 2.699 1.585 2.307 2.112 1.180 1.137 1.039 1.076 1.064 1.808 2.319 2.827 1.335 1.294 1.075 1.170 1.418 1.939 1.127 1.964 1.267 1.144 8.215 1.746 3.770 3.712 1.390 1.069 1.408 1.349 1.927 1.192 1.029 4.029 1.162 2.545 1.257 1.104 1.335 1.015 17.137 1.026 1.265 1.867 2.049 1.792 6.840 1.154 1.075 1.195 1.238 1.560 2.299 1.015 1.031 1.194 1.971 4.686 1.280 1.065 1.285 1.156 8.252 1.093 1.609 1.053 1.332 2.827 6.855 2.168 8.603 3.344 2.142 1.308 1.354 1.237 1.210 1.558 1.047 1.787 1.141 1.163 1.014 1.803 6.107 8.127 1.010 1.133 1.076 1.815 6.983 4.362 1.951 1.090 1.838 6.166 1.006 998 17.504 1.878 1.222 1.254 1.531 1.059 1.580 3.308 1.031 1.368 1.208 1.622 1.500 1.832 2.610 1.044 1.723 1.026 1.796 2.014 999 985 971 959 947 936 926 917 908 900 17.148 1.239 1.224 1.449 1.634 1.229 1.112 1.113 1.793 3.017 1.820 2.649 3.062 1.152 1.259 2.274 2.119 8.068 1.016 1.976 1.404 1.879 2.196 1.106 1.623 1.356 2.042 1.421 1.994 4.243 1.736 1.203 2.052 4.224 1.376 1.711 1.6 12 18 24 30 36 42 48 54 60 66 72 78 84 90 96 102 108 114 120 126 132 138 144 150 156 162 168 174 180 186 192 198 204 210 216 222 228 234 240 17.363 1.078 1.745 5.049 1.030 1.085 1.125 1.032 1.381 1.109 1.637 1.083 1.378 1.065 1.313 1.419 1.014 1.205 8.309 1. In Principle Approval: .100 1.093 1.238 2.192 2.040 4.178 1.500 2.106 1.568 3.088 1.023 1. Recent Modifications in SBI Home Loan Scheme: a.478 1.033 1.865 1.571 1.322 1.200 1.784 2.044 1.815 1.295 2.758 3.903 1.280 1.757 5.000 990 981 973 965 17.006 998 989 982 17.121 1.
that the institution would deliver the title deeds direct to our bank branch upon receipt of the loan amount. repayment of the existing loan has already commenced and installments have been paid as per the terms of sanction. Take over of Housing Loans: • In simple words ‘Take Over of Housing Loan’ means to transfer the housing loan from other financial institute / bank to SBI. The institution to confirm the above and that they are holding the EMI over the property. b. in consideration of large business interests / valuables connections.• In principle approval / sanction can be given prior to identification of a specific house / flat / property by the prospective borrower to give him greater flexibility in negotiations. The borrower can select the property as per the eligibility or loan amount he may get. • • It is valid for the period of three months. subject to the conditions Each case to be approved by the DGM of the module / Main branch only. DOCUMENTS OF HOUSING LOAN . The agreement to mortgage should be taken. • Take Over of Housing Loans may be considered highly selective after due diligence and precautions. The prospective borrower should address a letter to the institution through whom the finance has been availed. C. The disbursement of the loan should be made direct to the institution and their receipt kept along with the documents. in cases where possession of the house / flat has been taken.
The documents required for the appraisal of Home Loan are divided into two stages which are as follows: DOCUMENTS PRE-SANCTION DOCUMENTS POST-SANCTION DOCUMENTS I.Documents play an important role for the approval of the loan. documents are very important for the appraisal of home loan. Unless and until all the documents are submitted by the applicant and are properly verified by the responsible authority the loan cannot be apprised i.e. PRE-SANCTION / CREDIT DOCUMENTS: .
They help to understand the financial strength and weakness of the applicant i.e. They are required for the analysis of the credit worthiness of the applicant.These documents are required for the approval / sanction of the housing loan. what amount of loan should be approved? Whether the applicant will be able to repay the loan installments or not? The documents are as follows COMMON DOCUMENTS: APPLICAT -ION FORM WITH PHOTO PROCESSING FEE CHEQUES COMMON DOCUMENTS IDENTITY & RESIDENTAL PROOF NET WORTH SUPPORTING DOCUMENTS PERSONAL ASSETS & LIABILITY STATEMENT DOCUMENTS AS PER OCCUPATION: .
7/12 abstract Certificate of Membership. DOCUMENTS RELATED TO PROPERTY: PURCHASE OF HOUSE / FLAT CONSRUCTION / CO-OPERATIVE EXTENSION & REPAIR HOUSING SOCIETY OF HOUSE / FLAT Detailed cost estimate by Bye-law’s of the Society. Power of attorney. if applicable Details of previous employment Latest Income Tax Return. Employer’s Certificate Last three years Income Tax Last three years Balancereturns. Brief write-up on profession Brief write-up on business / business profile. Letter of allotment Agreement of sale. No Objection Certificate for loan and mortgage from lesser / builder. Certified copies of Income Tax.EMPLOYED PROFESSIONALS SELF – EMPLOYED BUSINESSMEN Last three months salary. approved Architect/Civil Engineer/Chartered Engineer/Valuers. sheet. NA Certificate. Development agreement if applicable. Certificate stating the number of shares held by the member. Form 16 for last three years. certificates & proof of certificates & proof of business existence. if applicable. if applicable. if applicable. ANALYSIS OF INOME DOCUMENTS: . business existence. Receipt of payment made to the vendor. Certified copies of Income Tax. Letter of allotment. Certificate copies of Wealth Tax Returns.Educational qualification Educational qualification slip. if applicable Certificate copies of Wealth Tax Returns.SALARIED SELF . No Objection Certificate for loan and mortgage from Society.
pension policy etc Information on other savings like PPF. number of credits to be checked – Fixed & Variable In case of Self Employed check the average balance for liquidity Large credit or debit entries Recurring debits on account of loan repayment Inward Cheque bounces Outward Cheque bounces Stop Payment / Minimum Balance charges 3) Form 16 – Salaried / Form 16A – Other than salaried Name & address of the employer Name and designation of the employee Details of the salary paid / other income Details of the tax deducted Information of Housing loan availed Information on Mediclaim.1) Salary Slip Analysis Name of the Applicant – whether matches with the salary slip or not? Designation Name of the Employer Is the latest salary credit as per the salary slip Are the salary credits in the bank statements as per the salary slip Is the salary fixed or variable Any regular deductions reflecting in the salary slip. 4) Understanding Profit & Loss Account Expense heads Trend in Profitability & Sales over the years Depreciation charged . NSC. Mutual funds etc. 2) Understanding Bank Statements In case of Salaried.
Any unusual expenditure 5) Why do we require a Balance Sheet? To understand the business of the customer in terms of Owner’s involvement Profitability of the business Asset base His Customer Base & Liquidity His Suppliers 6) What to read out of Schedules? Understanding the list of his Customers Understanding the list of his Suppliers Understanding the value of assets as on date Understanding various loans availed by the loan applicant .
WHETHER OWNED RENTED LEASED OTHERS APPLICANT SIGNED PHOTO OF COAPPLICAN T. OF DEPENDANTS CATEGORY PAN NO. DATE OF RETIREMENT A/C DETAILS TYPE OF A/C APPLICANT CO-APPLICANT NAME OF THE BANK & BRANCH A/C NO./ VOTER ID/PASSPORT NO. (attach Xerox copy) MALE RESIDENT SINGLE CHILDREN SC ST FEMALE NRI MARRIED OTHERS OBC NA _____________________PIN__________ TEL-__________(R)_____________(O) MALE RESIDENT SINGLE CHILDREN SC ST FEMALE NRI MARRIED OTHERS OBC NA OCCUPATION OCCUPATOPN DETAILS EDUCATIONAL/PROFESSIONAL QUALIFICATIONS NO. YEAR OF OPENING FINANCIAL DETAILS MONTHLY GROSS INCOME MONTHLY NET SALARY OTHER INCOME SOURCE OF OTHER INCOME ANNUAL INCOME AS PER IT RETURN ADVANCE TAX PAID IN CURRENT YEAR EXPECTED MONTHLY RENTAL INCOME FROM PROPOSED FLAT/HOUSE MONTHLY INSTALLMENTS PROPOSED . ADD. CO-APPLICANT OFFICE ADDRESS _____________________PIN__________ TEL-__________(R)_____________(O) DATE OF BIRTH SEX STATUS MARITAL STATUS NO. SIGNED PHOTO OF APPLICANT DETAILS HOUSING LOANS PERSONAL NAME IN FULL FATHERS/HUSBAND’S NAME RELATIONSHIP WITH COAPPLICANT PRESENT RESI.Application form for housing loan of SBI: APPLICATION FORM (PUBLIC) PLEASE COMPLETE ALL PARTICULARS IN BLOCK LETTERS & TICK BOXES WHEREVER APPLICABLE. OF YEARS IN PRESENT OCCU. DESIGNATION & EMPLOYMENT NO.
PVT. UNEXPIRED PERIOD OF LEASE: YEARS. & INSTALLMENT(S) PAYABLE PRE MONTH ON THE SAME INCLUDING INTEREST AGAINST EACH. THS APPLICANT EMPLOYER BANK CREDIT SOCIETY OTHERS COAPPLICANT EMPLOYER BANK CREDIT SOCIETY OTHERS APPLICANT SAVING BANK IMMOVABLE PROPERTY (SPECIFY) CURRENT BAL.. HOUSING BOARD. CONSTRUCTION OF NEW HOUSE 2. (YOUR SHARRE) OTHER ASSETS POLICY 1. PIN CODE. PROPOSED __________________________________ 2. 2. IMPROVEMENT. RENOVATION OF HOUSE/FLAT . AREA. MENTION HOUSE NO. LIFE INSURANCE POLICY(IES) POSTAL LIFE INSURANCE POLICY(IES) AMT/MATURITY DATES) COAPPLICANT EXISTING LOAN FROM SBI DETAILS OF EXISTING LOANS FROM STATE BANK OF INDIA APPLICANT: ________________________________________________________________________________________ CO-APPLICANT: ____________________________________________________________________________________ DETAILS OF PROPERTY DETAILS OF IMMOVABLE PROPERTY (TO BE PURCHASED / CONSTRUCTED / RENOVATED / IMPROVED) 1. / PLOT NO. IF POSSESION IS LEASEHOLD. RS. M PAYABLE MON RS. BUILDER. DEVELOPMENT AUTHORITY. PF ETC. CITY.INVESTMENT & LOAN (ASSETS & LIABLITIES) PLEASE INDICATE BELOW DETAILS OF INVESTMENTS & ALL LOANS TAKEN/PROPOSED FROM EMPLOYER. LOANS O/S AMT MONTHLY TER INSTALL. IN PF. 3. PURCHASE OF OLD HOUSE/FLAT 4. PURCHASE OF NEW HOUSE/FLAT 3. PLOT / FLAT / HOUSE ALLOTED BY AHOUSING SOCIETY. CO-OPERATIVE SOCIETY. PURPOSE LOAN REQUEST PURPOSE OF LOAN – 1. EXTENSION OF FLAT/HOUSE 4.
ARCHITECT’S FEES 5. COST OF THE SAME 3.F T RS. IS THE UNIT NEW OLD 2. SQ. COST OF LAND 2. COST OF SEMI -FINISHED FLAT 4. RS. LOAN APPLIED FOR TOTAL FUNDS RS. SAVINGS IN BANK 3.F. PLOT AREA/BUILT-UP AREA OF FLAT 3. PURCHASE PRICE OF PLOT 4. ESTIMATED COST OF REPAIR/EXTENSION RS. 1. FLAT1. / ELECTRICAL CONNECTION / MUNICIPAL CHARGES TOTAL COST • • RS.COST & SOURCES COST OF PROPERTY 1. PROPOSED REPAYMENT REPAYMENT TERM OF LOAN PERIOD OF RE-PAYMENT YEARS / MONTHS MODE OF REPAYMENT CHECK-OFF FACILITY WITH EMPLOYER SALARY A/C & SI AT BRANCH POST DATED CHEQUES A) FOR CONSTRUCTION I. BUILT UP AREA 8. COST OF STAMP DUTY / REG. RS. TOTAL COST 6. DISPOSAL OF INVEST/PROPERTY 4. YEAR DOCUMENTS I/WE HAVE ATTACHED THE FOLLOWING COPIES OF SUPPORTING DOCUMENTS (DULY ATTESTED WHEREVER NECESSARY) . COST OF AMENITIES / IMPROVEMENT 4. OTHERS (SPECIFY) 6.FT SQ. COST OF FLAT / HOUSE 6. COST OF COMPLETION / ADDITIONAL ITEMS III.A) REFUNDABLE B) NON-REFUNDABLE 5. SQ. YES. HOUSE1. RS. MARKET VALUE LAND VALUE STRUCTURE VALUE YEAR S RS. COST OF REPAIRS 5. REGISTRATION CHARGES IV. MARKET VALUE OF EXISTING STRUCTURE 4. (a) IS THE PROPERTY MORTGAGED TO ANY INSTITUTION (b) IF YES. AREA OF UNDIVIDED SHARE OF LAND 2. COST OF CONSTRUCTION/EXTENSION 3. AREA OF PLOT/ UNDIVIDED SHARE OF LAND 7. MARKET VALUE AS PER REPORT PURPOSE OF LOAN B) FOR PURCHASE OF HOUSE/FLAT SQ. TOTAL COST SHOULD BE EQUAL TO TOTAL FUNDS AS PER THE SCHEME OF THE BANK. I/WE APPLY FOR THE LOAN ON A FIXED RATE/FLOATING RATE BASIS (DELETE WHICHEVER IS IN APPLICABLE. SOURCE OF FUNDS 1. RS. AGE OF EXISTING STRUCTURE IF OLD 3. RS. COST OF CONSTRUCTION II. PROPOSED BUILT UP AREA 3. RS. RS. P. TOTAL COST V. COST OF ADDITIONAL ITEMS 5. NAME OF THE INSTITUTION (c) VALUE OF O/S LOAN AGAINST MORTGAGE 5. RS. AGE OF EXISTING STRUCTURE S 2. C) FOR EXTENSION 1. RS. NO. PURCHASE PRICE 4. AMT ALREADY INVESTED 2.F SQ. AREA OF PLOT T 2. DETAILS OF PROPOSED REPAIR/EXTENSION 6.FT RS.F T RS. RS. RS. RS.
APPROVED VALUERS REPORT (FOR RESSALE OF FLAT) NOC TO SELLER BY BUILDER /SOCIETY FOR SELLING THE SAME(FOR RESALE OF PROPERTY) COPY OF ALL THE EARLIER AGREEMENTS FOR SALE & REGISTRATION COPY OF AGREEMENT FOR SALE/SALE DEED AND RECEIPT OF REGISTRATION GUARANTOR’S APPLICATION FORM (IF APPLICABLE) SALARY SLIP/FORM 16/ LAST 3 YEARS INCOME TAX RETURNS OF THE GUARANTOR.EMPLOYER’S CERTIFICATE GIVING DETAILS OF SERVICE & SALARY & LAST 3 MONTHS SALARY SLIP LATEST FORM 16 FROM EMPLOYER (FOR EMPLOYEES) COPIES OF IT RETURN WITH NECESSARY DOCUMENTS CERTIFIED BY CA FOR LAST 3 YRS. I/WE AM/ARE AWARE THAT IF I/WE OPT FOR LOAN AT FLOATING RATE OF INTEREST THE EQUITED MONTHLY INSTALLMENTS WILL COMPRISE PRINCIPAL AND INTEREST BASED ON BANK’S MEDIUM TERM LENDING RATE WHICH IS SUBJECT TO CHANGE FROM TIME TO TIME. ACCURATE AND COMPLETE AND THAT THEY SHALL FORM THE BASIS OF ANY LOANS STATE BANK OF INDIA MAY DECIDE TO SANCTION ME/US. STATEMENT OF BANK A/C FOR LAST 6 MONTHS WHERE INCOME IS CREDITED IDENTIFICATION PROOF: VOTERS ID /PAN CARD/ PASSPORT /DRIVING LICENCE ADDRESS PROOF: COPY OF ELECTRICITY BILL/ TELEPHONE BILL/RATION CARD ALLOTMENT LETTR FROM BUILDER/ SOCIETY OR VENDORS OFFER LETTER IF PURCHASE OF FLAT IN RESALE. NOR HAVE. NOC FOR MORTGAGING THE PROPERTY TO THE BANK FROM SOCIETY/BUILDER ON BANKS FORMAT GOVT. I/WE FURTHER AGREE THAT MY/OUR LOAN TRANSACTION SHALL BE GOVERNED BY THE RULES OF STATE BANK OF INDIA WHICH MAY BE IN FORCE FROM TIME TO TIME. STATE BANK OF INDIA WILL BE AT LIBERTY TO TAKE SUCH ACTION AS IT MAY DEEM NECESSARY IF MY/OUR ABOVE STATEMENT ARE FOUND TO BE UNTRUE. I/WE AGREE THAT STATE BANK OF INDIA MAY AT ITS DISCRETION CONDUCT DISCREET INQUIRIES IN RESPECT OF THIS APPLICATION. APPLICANT’S SIGNATURE CO-APPLICANTS SIGNATURE PLACE:__________________ PLACE:____________________ DATE: __________________ DATE: ____________________ PERMANENT ADDRESS:____________________________________ ____________________________________ ____________________________________ . I/WE DECLARE THAT THE FOREGOING PARTICULARS AND INFORMATION FURNISHED I THIS APPLICATION FORM ARE TRUE. I/WE UNDERTAKE TO INFORM AS TO ANY CHANGE IN MY/OUR OCCUPATION/ EMPLOYMENT/ RESIDENCIAL ADDRESS AND TO PROVIDE ANY FURTHER INFORMATION THAT THE BANK MAY REQUIRE. DECLARATION I/WE HEREBY APPLY FOR A LOAN FROM STATE BANK FO INDIA TO THE EXTENT INDICATED IN THE LOAN REQUEST SECTION OF THIS APPLICATION FORM. I/WE BEEN ADJUDICATED THE CONTENTS THEREIN. I/WE AGREE THAT STATE BANK OF INDIA SHALL HAVE THE SOLE DISCRETION TO REJECT/REDUCE MY/OUR LOAN APPLICATION WITHOUT ASSIGNING ANY REASON THEREFOR.
pending creation of mortgage. 6. 3. Arrangement letter. 4. Guarantee Agreement. where applicable. 2. 5. 8. b) Letter of undertaking from employer (on Bank’s standard format).II. 7. Agreement to Mortgage. Memorandum of Term Loan Agreement for Housing Loan. . if applicable. c) Irrevocable Letter of Authority where applicant himself is drawing and Disbursing Officer (on Bank’s standard format) or in other cases PDCs or standing instructions wherever required may be obtained. Declaration by the borrower. The documents prepared are legal documents which are as follows1. POST-SANCTION / LEGAL DOCUMENTS Once the loan gets sanctioned the banks needs certain documents for security. Documents relating to repayment : Where Check-off is available: a) Irrevocable Letter of Authority from employee (on standard format). Mortgage Deed to be executed by the borrower. Documents in connection with pledge of other securities.
EMI. etc. 3) Guarantee Agreement: Guarantee agreement is the agreement signed by the guarantor giving guarantee of repayment of loan in case of default by the borrower. 5) Agreement to Mortgage. number of years of repayment. IMPORTANCE OF THE DOCUMENTS: 1) Declaration by the borrower: Declaration by the borrower agreeing to construct the house within the stipulated period in case of loan granted for purchase of plot of land. 4) Mortgage Deed to be executed by the borrower: It is the document related to the mortgage of the property constructed or purchased.e. A single consolidated stamped affidavit and Indemnity sworn before Magistrate/ notary public. pending creation of mortgage: Agreement to mortgage is prepared in case if the property to be mortgage is in incomplete state. amount of loan. 2) Memorandum of Term Loan Agreement for Housing Loan: It is the agreement related to the term for which the loan has been taken i.9. 6) Documents in connection with pledge of other securities: .
where the search report covers only a period of 15 years and which does not reveal any encumbrance (instead of obtaining non encumbrance certificate for 30 years) Undertaking that construction is as per sanctioned building plan (plan is to be enclosed to the undertaking. insurance policies. 7) Arrangement letter: Arrangement letter is a letter which consists of all the terms and conditions related to the loan. are used to cover the risk. EMI. restrictions related to entering into any agreement related to the sale of same property. The term of loan. interest rate. repayment period.1 cr. false or misleading information (to mitigate risks on account of multiple financing/ submission of fake / forged title deeds etc). disbursement.. rate of interest margin. To cover risk for Home loans below Rs. etc. delivery of original documents of title etc. etc. To enable the Bank to initiate criminal proceedings against borrowers if they declare incorrect. . insurance and other terms and conditions such as non-availment of loan against same property. 8) Consolidated stamped affidavit and Indemnity: Declaring non availment of other loans against the same property / from other financial institutions (in lieu of No Dues Certificate).In case where the property to be mortgage is of less value than required then other property or investments such as bonds.
All the four stages play a vital role in fulfilling the requirements of housing finance of the bank. The stages are as follows- .D. PROCESS OF HOME LOAN The process of housing loan consists of four stages.
PRE-SANCTION SANCTION DISBURSEMENT REPAYMENT Flow chart showing the credit appraisal in home loan: .
Pre-sanction Stage / Process.Submission of documents with application form Verification of documents submitted by the applicant Visit / inspection by the appraisal officer (if necessary) PRESANCTION STAGE Recommendation of loan proposal to higher authority Checking the genuineness of the builder. . (Hypothecation & mortgage) Asset verification by the disbursement officer Commencement of disbursement DISBURSE M-ENT STAGE Repayment I. property to be purchased) Obtaining search report & valuation certificate by empanelled lawyer & valuer. Approval by the sanctioning officer SANCTION STAGE Preparation of security documents by bank.
b. d. If spouse / children are employed. j. iii. Ascertain period of stay in current residence. Educational qualification. name of the organization. ii. designation. Educational qualification of spouse and children (except minor children). h. Identify the borrower based on the proof of identification. l. experience and salary. Identify the borrower based on the proof of identification. f. The vehicle number and name of the owner may be recorded and the name of financiers. ascertain monthly rent being paid. Place: office / work place of borrower- . opinion makers etc. Number of other dependents relatives staying with the borrower. Ascertain whether he / she have a credit card and name of the credit card issuer. b. if any. e. k. i. c. Educational qualification. Place: residence of the guarantora. c. Whether he / she owns a car and / or a two wheeler in his / spouse’s name. if he deems it necessary. to ascertain antecedents. If rented. credentials of the borrower. Whether owned / company leased / rented.The process for a meaningful pre-sanction is as followsi. Number of school going children. Identify the borrower’s address on the basis of proof of residence given by the applicant along with the application form. Sanctioning authority may make enquiries with the applicant’s bankers. Identify the borrower’s address on the basis of proof of residence given by the applicant along with the application form. Discreet local enquiries with neighbors. Place: residence of the borrowera. g.
e.e.e. f. g. Place: property proposed to be purchasedProcedurea. Comment whether the area is posh / upper middle class / middle class / lower class / slum area. Accessibility / approachability i. all modes of transport / car / two wheeler only / others. Comments of the locality i. d. With a few reputed builders in the area. b. iv. b. e. roads etc. whether residential / commercial / underdeveloped / trouble prone. Landmarks for reaching and identifying the property to be recorded. Place: BuilderTo establish the genuineness. c. With the concerned industry body i. v. . track record and reputation in terms of timely completion of quality projects. c. timely delivery and conveyance of the ownership issues. Independent and surprise visit is to be made to the property. Ensure that proper access is available to the property i. With a few of the owners of their complete projects to ascertain quality of construction. salary disbursement authority (also with a view to confirm genuineness of salary certificate). With the builder’s bankers.with colleagues. In case of salaried applicant. Chamber of Housing Industry / Builder’s Forum etc. d. Procedure: checka. In case of self-employed / businessmen / professionals – with another firm engaged in the same line of activity. one or two firm(s) in the neighborhood / concerned industry body. b. Identify the property based on details in title documents.a.e.
Visit to the office / work place of the borrower.m. Standard forwarding letter introduced to safeguard Bank’s interest and ensure proper delivery of BC / DD to seller / builder. information on any pending disputes / litigation etc. Appraisal format Letter forwarding BC / DD to the Builder / Seller Control report II. Sanctioning Stage / Process. With a view to ensuring uniformity in appraisal of HLs and compliance with extant instructions. . Standard Control Report to ensure uniformity in reporting a sanction. Visit to the residence of the applicant. carrying brief details of the loan. ii. Ascertain whether the property is rented out and. (Separate format to be used for recording pre-sanction visits by Bank’s staff where outsourced agencies are engaged).h. j. Whether leased to an institution for occupation of its employees or rented out to an individual / business concern. the following formats to be used are also standardized for the pre-sanction and sanction process to ensure uniformity and effective compliance of instructions by operating functionaries and to minimize possibility of frauds during pre-sanction stage: Pre-sanction inspection sheet Control Card To be kept with documents. Discreet enquires with the owners / occupants of neighboring houses in respect of the ownership of the property. The following items have been taken out of the preview of pre-sanction inspection by the Bank’s staff wherever the services of outsourced agencies are available: i. including details of post sanction inspection. Visit to the residence of the guarantor. iii. Formats standardized: In addition to the above procedures. to be kept with documents. Control card will serve as a check list of compliance of various processes / procedures. if so. for how long and the rentals p. standard appraisal format introduces. i. Ensure that the property is kept in good and tenantable condition.
undertaking that construction is as per sanctioned building plan etc to enable the bank to initiate criminal proceedings against them if they declare incorrect.The sanction process is the stage where the following process is followedSEARCH REPORT: The sanctioning process in case of home loans starts with the preparation of a search report. false or misleading information. RACPCs/ Branches can use the service of verification agencies that run 'de-dupe' tests with other Banks' data too. if any availed by such borrowers from other banks in the centre [opinion report from these Banks should be obtained regarding nature and conduct of the facilities. the bank can take a limited risk by making a search for a period pf 15 years. In case of properties belonging to government. local authorities. immediate steps are to be taken to either avoid granting the loan or advise the borrower to rectify the defect in the title. empanelled lawyer should furnish the search report for 30 years. This will also enable them to know the repayment obligations of other loans availed by these borrowers from other branches under other schemes also. to trace credit facilities. before sanction]. delivery of original documents of title. Branches/RACPCs should access CIBIL data base. wherever required. instead of 30 years. if the search made for 15 years does not reveal any encumbrance. 2. Where this search report reveals encumbrance on the property which is detrimental to the Bank’s interest. In case of loans amounts below Rs. which are not disclosed in the loan applications. then the risk has to be covered by incorporating the relevant clause in the consolidated stamped affidavit. A consolidated stamped Affidavit of Declaration and Indemnity is to be obtained from prospective borrowers covering various points including non availment of other loans against the same property. . The sanctioning authority should verify the current CIS data base to avoid multiple financing. 3. if it is possible. 1 crore. RISK OF MULTIPLE FINANCING/ SBMISSION OF FAKE TITLE DEEDS: 1. 4.
and documentation. This may be done either by asking the branches/RACPCs to submit photocopies of the relevant papers/documents or by visiting the branches/RACPCs concerned. at least 5% of the loans sanctioned by a branch/ RACPC during the previous month. . ASSET VERIFICATION AND QUALITY OF LOAN PROCESS: Controlling Offices are to scrutinize every month. in case of at least 5% of the loan accounts sanctioned during the previous quarter. Services of Concurrent Auditors may also be used for this purpose at the RACPCs. with a view to ascertaining the quality of pre-sanction processes. loan appraisal.Asset verification. may be arranged by the controlling office during each quarter.
Disbursement Stage / Process. To prevent misuse of funds. disbursement should be made only in phases co-relating to the actual progress made in the construction e. etc. The cheques is disbursed in two ways as follows- . The disbursement of cheques is done in accordance with the stage of construction as reported by the technical advisor. at stages like completion of plinth. the proper end-use of funds should be ensured by visit to the sites. It is a stage where the cheques of sanctioned amount of loan are handed over to the borrower or to the concerned person. Branches may insist on a certificate from engineer / architect of the borrower confirming stage wise completion of the project. Before disbursement. The process of disbursement is as followsDisbursement of cheques: This is the final step in the disbursement stage. As regards loans for repairs/renovation/construction. roof. etc. As far as possible it is made directly to the suppliers / builders as per the progress of the work only after complete execution of documents and creation of valid mortgage. Branches should satisfy themselves about the estimated cost of labor and other charges and after obtaining certificate(s) of qualified engineers/architects as concerned necessary.III. The operational manager prepares the cheques along with the letter which is handed over to the borrower.g. lintel level.
etc. STEP-WISE DISBURSEMENT In certain cases where the work is carried out in stages such as the construction of house the disbursement is done in phases. ii.DISBURSEMENT ONE STROKE DISBURSEMENT STEP-WISE DISBURSEMENT i.e. Roof. etc. In cases where the payment has to be given in installments then the disbursement is also done as per the installments i. The architect gives the stage wise completion certificate such asCompletion of• • • Plinth area. second installment. Example of step-wise disbursement is as follows: PARTICULARS AMOUNT (IN %) . Lintel level. first installment. The bank requires documents such as the engineer’s or architects completion certificate and the quotation and bills of material to be purchased for disbursement of the cheques. Also the property which is proposed for re-sale comes under this case where the borrower needs to make full payment to the seller. DISBURSEMENT IN ONE STROKE- In case of purchase of property which is in ready stage the payment is made in full to the concerned party from whom the property is being purchased. The property such as flat / fully constructed house etc. which are ready for acquisition comes under this case.
At the time of flouring 12. B. . The repayment starts from the 19th month even if the project is completed or not. REPAYMENT OF LOAN: Repayment of loan starts after the final disbursement of the loan. At the time of first slab 4. If the disbursement is done step-wise then the maximum time for disbursement of loan is 18 months. Works 9. At the time of possession TOTOL: IV. At the time of forth slab 7. Outer plaster 10.1. B. Internal plaster 11. If the disbursement is done in one stroke then the repayment starts immediately from the next month. At the time of fifth slab 8. At the time of ‘Plinth’ 3. at the time of second slab 5. At the time of third slab 6. At the time of preparing 10% 10% 10% 8% 8% 8% 8% 10% 10% 8% 5% 5% 100% agreement to sale 2.
etc. b. Geographical Reasons: a. e. III. Negative references. b. Income norms not met. Poor financial condition. Fraud documents submitted. Dependants more then 5. c. Technical norms not satisfied. II. c. b. Unsatisfactory credit history. . e. Too many existing obligations. Documents / Property: a. d.F. If the property is beyond the geographical limits. Manipulated / undisclosed facts. d. IV. Age norms not met. Personal Profile: a. c. Legal documents not as per policy. The credit documents not as per policy. d. b. The common causes of rejection of loan are as follows: I. If the property is in negative profile area. Negative profile. Financial reasons: a. Employment norms not met. General causes of rejection of proposal Not every loan proposal that comes to the bank are approves certain cases gets rejected because of some or the other reason.
ANALYSIS & INTERPRETATION OF DATA .
there are so many areas with operational differences.B.4 ICICI 18 95 0.B Monthly HDFC 3 days N.H. Comparative statements in respect of Housing Finance Activity for the year 2008-09: I) ITEMS Time required for Processing/Sanction Guidelines followed Periodicity of interest II) ITEMS (%) Disbursement Recovery NPA BOBHFL 7 days N.I Monthly ICICI 3 days N.A.5 OTHERS 37 90 1 .B Annually BOBHFL 7 98 0.B Annually SBI 5 days R.H.5 SBI 16 99 0. Comparative Analysis: Though the schemes of all the four major competitors are more or less the same.H.6 HDFC 19 98 0.
.DISBURSEMENT 40 35 30 25 20 15 10 5 0 BOBHFL SBI ICICI HDFC OTHERS BOBHFL SBI ICICI HDFC OTHERS Interpretation: The chart shows the percentage of disbursement of various financial institutes and banks. RE COVE RY BOBHFL SBI ICICI HDFC OTHE RS Interpretation: The above chart shows the recovery of housing loans by various financial institutes & banks. State Bank of India shows maximum recovery among all above. From the above the share of State Bank of India is 16% out of total disbursement which is less than ICICI & HDFC.
of Applicants . Since home loan comes in priority sector the rate of NPA is very low almost negligible for all above mentioned. ANALYSIS OF BRANCH PERFORMANCE: I) (A) Total visit 170 (B) Application received 140 (C) Not – eligible 12 (D) Rejected 6 (E) Withdrawn 5 (F) Sanctioned 112 (G) Pending 5 No. B.NPA BOBHFL SBI ICICI HDFC OTHERS Interpretation: The above chart shows the rate of Non-Performing Assets in various financial institutes & banks.
180 160 140 120 100 80 60 40 20 0 A B C D E F G PARTICULARS NO. OF APPLICANTS Interpretation: The above chart explains us about the number of applicants at every stage for home loan during the year 2008-09 in the branch. From the above chart we can also come to know the number of visitors whose loan was sanctioned during previous year and the number of applicants whose disbursement of loan is still pending. II) YEAR PARTICULARS PERSONAL SEGMENT OTHERS TOTAL ADVANCES 2006 4546 567 5113 2008 7171 520 7691 2009 7298 1183 8481 .
Gangapur Road. Nasik. Even the amount of loan in the personal segment is increasing which includes home loans. III) YEAR PARTICULARS 2006 3682 864 4546 2007 5593 1578 7171 2008 5871 1427 7298 (Figures in Lacs) HOUSING LOAN OTHERS TOTAL PERSONAL SEGMENT .9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2006 2007 2008 OTHERS PERSONAL Interpretation: The above chart shows the figures of State Bank of India. education loan. vehicle loans. The amount of total advances is showing an increase since last 3 years. etc.
PURPOSE Purchase/ construction/ extension of old / ICICI For purchase of house from builder / resale and HDFC For purchase of house from builder / resale and .8000 7000 6000 5000 4000 3000 2000 1000 0 2006 2007 2008 OTHERS HOUSING LOAN Interpretation: The above chart figures of housing loan among the total personal segment of State Bank of India. The share of housing loan in the total personal segment is maximum and is still increasing day by day. Gangapur Road. COMPARISON BETWEEN THE THREE MAIN COMPETITORS: PARTICULARS STATE BANK OF INDIA 1. C. Nasik.
000/- 4. 2) Identity & residence proof.000/Rs. 2. 1.00.50% Rs. 10. PROCESSING FEE 3 yrs 3 yrs 0.00.00. 2) Identity & residence proof.00. 2.000/. AGE CRITERIA i.00.000/.00.000/. 9.00.00.50% Rs. 1) Application form with photograph.20.00. Self employed 8.1.00.50.to Rs. Self employed 18 – 60 yrs 18 – 70yrs 6.a Rs. LOAN AMOUNT: i. Salaried ii.to Rs. 2.p.p. 1.a 21 – 65yrs 21 – 65yrs 5 – 20 yrs 1 yrs 3 yrs 0.a.to Rs. 5.00. EXPERIENCE: i. 3) Last 3 months salary slip. 2.00.00.000/- Rs. ELIGIBILITY CRITERIA i. 2) Identity & residence proof.00.00. 5.a Rs.000/. 1.or 0. 8% .p. 2. No Penalty (Part Payment). TENURE 5 – 20 yrs 7.No penalty. DOCUMENT-S REQUIRED i.to Rs.11% construction / extension of existing house.000/.25% .000/Rs.to Rs. 1. 9.10.00.000/. Salaried 1) Application form with photograph.000/.a. 1. 5.000/. 1.00. Self employed new house/ flat plot of land for construction of house.000/. Salaried ii.00. Salaried ii.10.000/.1. 1) Application form with photograph. 4) Form 16.44.2.p.000/- Rs.p.a 21 to 58yrs 21 to 65yrs 5 – 20 yrs 3 yrs 3 yrs Rs.50.00. 4) Form 16. 3) Latest salary slip. 2. otherwise 2% of outstanding amount 9. Salaried Rs. Self employed Rs.000/. ii.75% Rs.000/. 20.5% of loan amount(whichever is lesser) + Service Tax If 25% of outstanding amount is paid every year till 3 years . PRE-PAYMENT CHARGES 2% 2 % (Full payment). 2.000/.to Rs.p.000/Rs. 3) Age Proof 4) Latest 3 months salary slip. 2.25% . . RATE OF INTEREST 3.10% construction / extension of existing house.
6) Processing fee cheques. 5) Last 6 months bank statements. 8) Processing fee cheques. 4) Business profile. 5) Last 3 years profit/loss & balance sheet. Last 3 years profit/loss & balance sheet. 3) Education qualifications certificate & proof of business existence. 1) Application form with photograph. 7) Processing fee cheques. 6) Processing fee cheques 5) Form 16. 2) Identity & residence proof. . 7) Last 6 months bank statements. 6) If current service is less than 2 years than previous company relieving letter. 2) Identity & residence proof. 3) Education qualifications certificate & proof of business existence. 2) Identity & residence proof. 6) Processing fee cheques. 5) Last 6 months bank statements. Processing fee cheques 1) Application form with photograph. 5) Last 6 months bank statements.5) Last 6 months bank salaried credit statements . 3) Education qualifications certificate & proof of business existence. Last 3 years profit/loss & balance sheet. 6) Last 6 months bank statements. ii. 4) Business profile. Business profile. Self employed 1) Application form with photograph.
their preferences. A robust data warehouse should create wherefrom meaningful data on customers.RECOMMENDATIONS & SUGGESTIONS RECOMMENDATIONS & SUGGESTIONS 1. The bank needs to satisfy customer needs that are complicated and difficult to manage. . their spending. patterns etc can be viewed.
Business process re-engineering is key requirement of bank. Insurance for life is optional for now but to minimize the risk life insurance should be made compulsory. Leadership in market through differentiation and product innovation. . less documentation. It can focus on measures to reduce this timely delay. 4. SBI can increase professional employment by bank and sells its loan schemes to customer aggressively with the help of advertising media. Fast delivery of services. Continually invent new products and services to satisfy more customers. 6. 9.2. There should be strong risk management capabilities. 7. It is spending more time on loan disbursement as compared to other private sector banks. Bank can upgrade interest rate according to market share. 3. is necessary. 10. 8. 5. SBI can provide Net banking services to its existing customers as well as promotion stunt to attract new customers. simplified process etc.
there is minimum risk for default in Home Loan Finance. 2. Thus. Home Loans being a trust area the rate of NPA is very low or negligible as compared to the other loans.CONCLUSION CONCLUSION 1. . For the purpose of approving a loan credit appraisal plays a very important role.
which results into permanent disability & in case of the borrowers death the loan repayment responsibility comes on his family. There is heavy risk involved in funding of any property like double funding. 8. 5. Recent modifications in home loans such as ‘Take over of housing loan’ helps the borrowers of other banks or financial institutes to transfer their loan to State Bank of India and enjoy the benefit of low interest rates & ‘In principle sanction/approval’ helps the borrower to take advantage of finding property as per his eligibility. In case of the borrower lost his job or meets with accident. . Most of the customers prefer SBI because of low interest rates. Documentation plays a very important role in the appraisal process. Due to careful credit appraisal of loan the chances of default are reduced and the repayment of loan almost 99%. 6.3. It is major problem. 7. 4.
50. Cost of construction AMT (Rs) SOURCES OF FUNDS (Rs) 17.APPENDICES CASE ONE: Mr. Amount already invested 2. COST OF PROPERTY (Rs) 1. Makarand Joshi Mr.00.000 2. Presently he is residing in a rental house.000 1. Savings in bank AMT (Rs) 1. Cost of flat 2.875 .91. Makarand Joshi. He is applying for a loan to purchase a new house. is a lawyer by profession. 35.
Total cost 50. Somwarpeth Nashik.67. Cost of stamp duty/ registration. 4. Cost of amenities/service charges.25. Miscellaneous 6. Sideshwar. Disposal of investment or property 4 .500 17.000 17.500 3. Nashik. Makarand Joshi Old Maruti chambers.67. 6. Cost of repairs 5. Full address a) Office: b) Residence: 3. Gulalwadi. Purpose 4. Name of the applicant 2.500 APPRAISAL NOTE 1. Others 6. LOAN APPLIED FOR Total funds 13. Age as on the date of application Mr. Purchase of new flat 35 years .625 17. District court.3.PFrefundable/nonrefundable 5.
625 13.5. Ashirwaad. Mr. 31 is employed in ‘Mahindra & Mahindra’ as a Production Engineer since last five years.20. Amount of loan applied 15. ECONOMIES: a) Annual income from profession b) Annual income of family members c) Other annual income d) Total receipts e) Annual family expenditure f) Surplus g) Net monthly income h) EMI 20.620 Purchased flat 9. Maximum loan amount admissible 16. Whether he owns any house.25.00. Total monthly income/ earnings 7. the purpose of acquiring the proposed house/ flat 14.20. Interest 22. Cost of land AMT (Rs) SOURCES OF FUNDS (Rs) 10. Margin proposed (min.000 1. NO 13. Presently he is staying in a rental flat and is proposing for a loan to construct a new house. Total family expenses 12.000 20. of family members/ dependents 8. Details of the flat to be purchased 13. The applicant’s outside liability a) Direct b) Indirect 18. 25%) 17.000 1.625 25% NIL NIL NO 7. If yes. Repayment programme 10 years 60.000 50.20.620 each for 18yrs CASE TWO: Mr. whether it is second one proposed now for rental income? 10. Total annual income of the applicant 11. Racca Colony Nashik. Security 21. No. Following are the particulars: COST OF PROPERTY (Rs) 1.12.25% 216 installments of Rs. Total years of service/occupation 6.25.20.000 . Pankaj Rawal. the approx. Pankaj Rawal.000 7. Whether the applicant is possessing existing house.000 1.20.000 3 NIL NO. If the proposed house is to be given on rental basis.000 12. 7.00. amount of rental expected 19.00.Amount already invested AMT (Rs) 12.000 6. If so. Income from any other source 9.
2.000 20.000 21. Cost of stamp duty/ registration.81. Cost of construction 3.000 20.Others 6. Total cost 9.LOAN APPLIED FOR Total funds 1.000 7.000 2.Disposal of investment or property 4.000 . Cost of amenities/service charges.00.Savings in bank 3.000 1.81.81. PFrefundable/nonrefundable 5. 4 Cost of repairs 5.50.10. Miscellaneous 6.
Total monthly income/ earnings 7.60. Security 21. the approx. amount of rental expected 19.25% 144 installments of Rs. NO 7. Margin proposed (min.000 72. Total annual income of the applicant 11..13. of family members/ dependents 8. Age as on the date of application 5. Name of the applicant 2. Income from any other source 9.000 4 NIL NO 3.5% NIL NIL NO 3. Pankaj Rawal Mahindra & Mahindra. Nashik. whether it is second one proposed now for rental income? 10.81.000 2. ECONOMIES: a) Annual income from service b) Annual income of family members c) Other annual income d) Total receipts e) Annual family expenditure f) Surplus g) Net monthly income h) EMI 20. Whether he owns any house.000 8638 Constructed house 9.000 7. Plot No. 24. Shivam Apt. If the proposed house is to be given on rental basis. Whether the applicant is possessing existing house. Govindnagar.60. Details of the flat/ house to be constructed/purchased 13. Nashik.000 3. 25%) 17. the purpose of acquiring the proposed house/ flat 14. Construction of new house 31 years 5 years 30. 8638 each for 12yrs CASE THREE: Mr. Nashik – 09.000 62.000 24.88. Satpur. Interest 22. .000 “SNEHA”. Full address a) Office: b) Residence: 3. The applicant’s outside liability a) Direct: b) Indirect: 18. Total family expenses 12. Repayment programme Mr. Pawan Nikam. If yes. No.000 72. Govindnagar.60. Amount of loan applied 15. If so.APPRAISAL NOTE 1. Maximum loan amount admissible 16.81. Total years of service/occupation 6. Purpose 4.
63.000 13.00. Cost of repairs AMT (Rs) SOURCES OF FUNDS (Rs) 11.500 1. Cost of house 3. Cost of amenities/service charges 4. Savings in bank 3.10. AMT (Rs) 79.000 10. Miscellaneous 6. Cost of stamp duty/registration 4.500 13. COST OF PROPERTY (Rs) 1. Others 6. 22. Cost of Land 2. 34 is working in Glaxo Smith line as an accountant since last 7 years.500 2.000/.for purchase of a newly constructed row house.50.500 5.22. Amount already invested 2. as a project engineer since last nine years. Sonali Nikam. LOAN APPLIED FOR Total funds Total cost APPRAISAL FORM .000 13. Pawan Nikam. He is applying for a loan amounting Rs.62.000 2. 38 is an employee of MICO BOSCH LTD. PFrefundable/nonrefundable 5. Following are the particulars of loan. His wife Mrs. Disposal of investment or property.63.Mr.
1. Name of the applicant 2. Name of the co-applicant 3. Full address a) Office: b) Residence: 4. Purpose 5. Age as on the date of application 6. Total years of service/occupation 7. Total monthly income of applicant 8. Total monthly income of co-applicant 9. No. of family members/ dependents 10.Income from any other source 11. Whether he owns any house. If yes, whether it is second one proposed now for rental income? 12.Total annual income of the applicant 13.Total annual income of the coapplicant 14.Total family expenses 15. Details of the flat/ house to be constructed/ purchased. 16. Whether the applicant is possessing existing house. If so, the purpose of acquiring the proposed house/ flat 17.Amount of loan applied 18.Maximum loan amount admissible 19. Margin proposed (min. 25%) 20.The applicant’s outside liability a) Direct: b) Indirect: 21. If the proposed house is to be given on rental basis, the amount of rental expected? 22. ECONOMIES: a) Annual income from service b) Annual income of family members c) Other annual income d) Total monthly income of applicant e) Total monthly income of coapplicant f) Monthly family expenditure g) Net monthly income h) EMI 23.Security 24.Interest 25.Repayment programme
Mr. Pawan Nikam Mrs. Sonali Nikam MICO BOSCH, Satpur, Nashik. Gyatri Appt. old Pandit colony, Nashik. Purchase of a new row house 38 years 9 years Rs.42,600/Rs.14,700/3 NIL Yes, but not to be given on rental basis. Rs.5,11,200/Rs.1,76,400/Rs.84,000/“Durgesh”, Tidke colony, Nashik. Yes, as the existing house is small. Rs.10,22,000/Rs.10,22,000/25% NIL NIL NO
Rs.5,11,200/ Rs.1,79,400/Rs.42,600/Rs.14,700/Rs.7000/Rs.50,300/Rs.9,360/Purchased row house 9.25% 240 installments of Rs.9360/- for 20yrs
CASE FOUR: Mr. Atul Ashok Dhamne (NRI).
Mr. Atul Ashok Dhamne, 28, is an Indian residing in Singapore, employed in an MNC as a network analyst since last 4 years. He is planning to buy a flat in India for which he requires a loan of 20, 00,000. Following are his particulars: COST OF PROPERTY (Rs) 1. Cost of flat 2. Cost of construction 3. Cost of amenities/service charges. 4. Cost of repairs 5. Miscellaneous 6. Cost of stamp duty/ registration. Total cost AMT (Rs) SOURCES OF FUNDS (Rs) 27,61,000 30,000 1,42,500 29,33,500 1. Amount already invested 2. Savings in bank 3. Disposal of investment or property. 4.PFrefundable/nonrefundable 5.Others 6.LOAN APPLIED FOR Total funds AMT (Rs) 2,42,500 6,91,000 20,00,000 29,33,500
1. Name of the applicant 2. Full address a) Office: b) Residence: 3. Purpose 4. Age as on the date of application 5. Total years of service/occupation 6. Total monthly income/ earnings 7. No. of family members/ dependents 8. Income from any other source 9. Whether he owns any house. If yes, whether it is second one proposed now for rental income? 10. Total annual income of the applicant 11. Total family expenses 12. Details of the flat to be purchased. 13. Whether the applicant is possessing existing house. If so, the purpose of acquiring the proposed house/ flat 14. Amount of loan applied 15. Maximum loan amount admissible 16. Margin proposed (min. 25%) 17. The applicant’s outside liability a) Direct: b) Indirect: 18. If the proposed house is to be given on rental basis, the approx. amount of rental expected 19. ECONOMIES: a) Annual income from service b) Annual income of family members c) Other annual income d) Total monthly income e) Monthly family expenditure f) Net monthly income h) EMI 20. Security 21. Interest 22. Repayment programme
Mr. Atul Ashok Dhamne Frontier Drilling (ASIA) pvt. Ltd, 221, Henderson rd, Singapore 159557. Block 654 A, Chua Chukang, Cresent, Singapore 681684. Purchase of a new house 28 years 4 years Rs.1, 54,440/4 NIL NO Rs.18,52,280/Rs.2,40,000/Ashoka Heights, Ashoka Gardens, Gangapur Road, Nashik. NO Rs.20,00,000/Rs.22,00,000/31.82% NIL NIL NO
18,52,280 1,54,440 20,000 1,34,440 25,600 Purchased house 9.25% 120 installments of Rs. 25,600 each for 10 yrs
CASE FIVE: Mr. Rajendra Patil.
Mr. Rajendra Patil, 67, is a businessman. His proposal is to takeover his housing loan from BOBHFL. He has already repaid maximum portion of the loan amount and now he wants to transfer his remaining loan amount to SBI from BOBHFL. No margin will be considered in this case since it a takeover case and the previous financial institute has already done it while giving him the loan. Particulars Loan for takeover Total Amt(Rs) 2,00,000 2,00,000 Particulars Loan approved Total Amt(Rs) 2,00,000 2,00,000
176/Same house. 67 years 33 years Rs.30. NO Rs. 30. the purpose of acquiring the proposed house/ flat 14. Security 21.2. Gymkhana.1.for 5 years. All employed NIL YES.8. Nashik.137734/Rs.4.25% 60 installments of Rs. Amount of loan applied 15. Total monthly income/ earnings 7. Total years of service/occupation 6. Shivaji Road. plot no. Whether he owns any house? 10.1. Savarkar Nagar. plot no. Age as on the date of application 5. opp.2. 25%) 17. 2 sons and spouse. Interest 22.978/Rs.00. TAKEOVER OF HOUSING LOAN FROM BOB HOUSING FINANCE LTD. Gangapur Road.1. Whether the applicant is possessing existing house.4.1. Total family expenses 12.000/NIL NIL NIL NO Rs. Margin proposed (min. the approx. of family members/ dependents 8. SUVIRAM.07.734/Rs. The applicant’s outside liability a) Direct: b) Indirect: 18.000/Rs. Nashik. Income from any other source 9. ECONOMIES: a) Annual income from business b) Annual income of family members c) Other annual income d) Total receipts e) Annual family expenditure f) Surplus g) Net monthly income h) EMI 20. Repayment programme Mr. If so. Gangapur Road. 31. 9. Savarkar Nagar. Nashik. Palm Spring. Full address a) Office/Shop: b) Residence: 3. takeover of the same house is being contemplated.00.734/Rs.30. BIBLOGRAPHY . 30.37.37. No. Maximum loan amount admissible 16.11. Palm Spring. Rajendra Patil Sweetmeat Shop.000/SUVIRAM. Details of the flat/ house for takeover 13.734/Rs. 31. amount of rental expected 19. 176/. Rs.447/3.000/Rs. Total annual income of the applicant 11. If the proposed house is to be given on rental basis. Name of the applicant 2. Purpose 4.
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