SUMMER INTERNSHIP PROJECT

ON
RETAIL LOANS OF
THE BANK OF RAJASTHAN LTD
SUMMER TRANING PROJECT REPORT SUBMITTED FOR THE
PARTIAL FULLFILMENT

OF MASTER’S
DEGREE IN BUSINESS

ADMINISTRATION SEASION: 2010-2011

SUBMITTED BY SUBMITTED TO

KAVITA VERMA Mr. R. D. bagla

MBA (3rd Sem.) Mr. Navneet kishor pareek

Banasthali vidyapeeth

1
 PREFACE

In the present age of business when profit maximization is the prime motive of every man
Price quality & service are the major trust areas to conquer the market. Initiative,
Foresight, talent &competency are imperative to manage the modern business.

The MBA course inculcates those skills in students, which prepare them to face the
challenges of business world. In the midst of the course, summer training in some
business organization is arranged for the student that is very essential. Such training
gives practical experience and helps the students to view the real business world
closely, which in turn widely influences their conception and perceptions.

The work outlined in this thesis is aimed at exploring & learning of various aspects
related to loans available in a banking organization. Focus of the study is on customer
loans viz. personal loan, home loan, education loan, two heeler loan, car loan, loan
against property and three wheeler loan. This report is intended for everyone who is
interested in knowing about loans available in the bank of Rajasthan ltd.

Information about the organization and its services to the customer included in this
report. The letter section of the report contains various customer loan schemes. A brief
study is conducted to the loan aspects.

2
 ACKNOWLEDGMENT

Talent and capabilities are of course necessary but opportunities and guidance are two
very important backups without which any person cannot climb the ladder to success.
Vocational training is indeed and important aspects of MBA program and I am very
grateful to the management team of The bank of Rajasthan, which provide me
opportunity to work as a trainee at its Central Office, Jaipur.

I am indebted to the following officers of The bank of Rajasthan ltd. Who have taught
me a great deal as I worked under their guidance to understand the retail loans which
are provided by the bank of Rajasthan ltd I gratefully acknowledge their valuable
teaching contribution through the period of my summer training.

I am deeply indebted to Mr. R.D.BAGLA Sr. Manger at The bank of Rajasthan central
office, jaipur who guided me at every step of this study. I am also grateful to Mr.
N.K.PAREEK, assistant manager at central office jaipur, Mr. ALOK MATHUR and Mrs.
ANJU SHARMA who answered my all queries to support my learning to a great extent.

we would like to sincerely thank, Sir Harsh Purohit, Faculty, WISDOM BANASTHALI
VIDYAPITH, BANASTHALI, for his valuable suggestion and guidance and making it
possible for me to accomplish the project

I would like to thank my parents and my colleagues who instilled confidence and moral
support various stages during the course of this training.

KAVITA VERMA

3
 CONTENTS

1. INTRODUCTION TO BANKING IN INDIA

2. RESEARCH MATHODOLOGY

3. OBJECTIVE OF THE STUDY

4.ORGANIZATION PROFILE

5. OVERVIEW OF THE PROJECT

6. INTRODUCTION RETAIL FINANCE

7. RESEARCH MATHODOLOGY

8. PERSONALS BANKING SERVICES

9. STUDY OF LOANS

 PERSONAL LOAN

 EDUCATION LOAN

 HOUSING LOAN

 TWO WHEELER LOAN

 New car loan

4
10. CONCLUSION

11. RECOMMENDATIONS

12. GLOSSARY

13. BIBILOGRAPHY

5
 BANKING IN INDIA

Banking in India has its origin as early as the Vedic period. It is believed that the transition from
money lending to banking must have occurred even before Manu, the great Hindu Jurist, who
has devoted a section of his work to deposits and advances and laid down rules relating to
rates of interest. During the Mugal period, the indigenous bankers played a very important role
in lending money and financing foreign trade and commerce. During the days of the East India
Company, it was the turn of the agency houses to carry on the banking business. The General
Bank of India was the first Joint Stock Bank to be established in the year 1786. The others,
which followed, were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is
reported to have continued till 1906 while the other two failed in the meantime. In the first half of
the 19th century the East India Company established three banks; the Bank of Bengal in 1809,
the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks also known
as Presidency Banks were independent units and functioned well. These three banks were
amalgamated in 1920 and a new bank, the Imperial Bank of India was established on 27 th
January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the
Imperial Bank of India was taken over by the newly constituted State Bank of India. The
Reserve Bank which is the Central Bank was created in 1935 by passing Reserve Bank of India
Act 1934. In the wake of the Swadeshi Movement, a number of banks with Indian management
were established in the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara
Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19,
1969, 14 major banks of the country were nationalized and in 15th April 1980 six more private
sector commercial banks were also taken over by the government.

6
BANKING AS A CONCEPT

Earlier when there was no bank, people were keeping money with them in form of gold. Keeping
money at home was not safe so in group they stared to keep it in Temples. There the money
was safe but was not being utilized. Then the priests at temples started to lend it to other needy
sectors. From here the basic concept of banking started.

OBJECTIVE OF BANKING

1. To develop saving habit in people.

2. To make effective utilization of people’s savings.

3. To develop the rural areas & industries.

4. To facilitate the transfer of money.

5. To develop nation as a whole.

HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners

7
of the country. This is one of the main reason of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalisation of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or
for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient
bank transferred money from one branch to other in two days. Now it is simple as instant
messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:

 Early phase from 1786 to 1969 of Indian Banks (phase1)

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
(phase2)
 New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991. (phase3)

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These
three banks were amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National

8
Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of
India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore
were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline
the functioning and activities of commercial banks, the Government of India came up with The
Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
specially in rural and semi-urban areas. It formed State Bank of india to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all over
the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July,
1969, major process of nationalisation was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was
nationalized.

Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under Government
ownership.

9
Banking in the sunshine of Government ownership gave the public implicit faith and immense
confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its reforms

measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his

name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a

satisfactory service to customers. Phone banking and net banking is introduced. The entire

system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis

triggered by any external macroeconomics shock as other East Asian Countries suffered. This

is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is

not yet fully convertible, and banks and their customers have limited foreign exchange

exposure.

10
NATIONALIZATION

By the 1960s, the Indian banking industry had become an important tool to facilitate the
development of the Indian economy. The GOI issued an ordinance and nationalized the 14
largest commercial banks with effect from the midnight of July 19, 1969 Within two weeks of the
issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and
Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the GOI controlled around 91% of the banking business of
India. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to
the average growth rate of the Indian economy.

LIBERALISATION

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization,
and gave licensing to a small number of private banks. These came to be known as New
Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation
banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank
(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, kick started the banking sector
in India.

The next stage for the Indian banking has been setup with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10%,at present it has gone up to 74% with some
restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks.

11
CURRENT SITUATION

Currently (2009), banking in India is generally fairly mature in terms of supply, product range
and reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered
to have clean, strong and transparent balance sheets relative to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body, with minimal
pressure from the government.

With the growth in the Indian economy expected to be strong for quite some time-especially in
its services sector-the demand for banking services, especially retail banking, mortgages and
investment services are expected to be strong.

Currently India has 293 schedule commercial banks(SCBs) 27 public sector banks ( that with
the government of India holding a stake) 30 private banks(these do not have government take;
they may be publicly listed and trade on stoke exchanges) 40 foreign banks and 196 region
rural banks.

12
 OBJECTIVE OF THE STUDY

 To know the general banking function, that is landing money.

 To know the various aspects of loans.

 To know the terms and conditions on which some of banks are providing such
loans.

 To study the features of a loan scheme of bank of rajasthan, this attracts

costumers.

13
 ORGANIZATION PROFILE

HISTORY

The Bank Of Rajasthan Ltd. was established at Udaipur, the city of lakes in Rajasthan on the

auspicious day of Akshya Tritiya on May 8, 1943. The credit for the birth of the Bank goes to,

the then finance minister of the erst-while Mewar Government, late Shri Rai Bahadur P.C.

Chatterji, who persuaded The Mansingka brothers of Bhilwara for establishing a joint stock bank

with its registered Office at Udaipur.                              

The Bank was established with an initial capital of Rs.10.00 lacs. Late Seth Shri Govind Ram

Seksaria, an eminent Industrialist of the country, was the founder Chairman. The first Broad of

Directors comprised such men of eminence as Shri Rai Bahadur Seth Rameshwarlal Ji

Duduwala, Seth Shri Subhhag Mal Ji Lodha besides the Mansighka brothers, Seth Shri Pusa

Lalji Mansighka and Seth Shri Damodar Lal ji Mansighka. The other members of the board were

Major Rajadhiraj Amar Singhji of Banera and the then Accountant General of Mewar, Rai

Bahadur lala Sukhdayalji.

In line with the contemporary practice of naming the bank after the location or princely state, the

suggested names for the bank were Bank of Mewar State or Bank of Udaipur. The promoters,

being very clear in their vision, expressed the view that the word 'Rajasthan' will be more

14
advantageous in future for expanding activities in other princely states since under the new

constitution grouping of the then local princely states was expected under one umbrella. As now

is history, the individual princely states were merged under the final name for the state -

Rajasthan. The naming of the bank, The Bank of Rajasthan Ltd., glaringly reflected the foresight

of the promoters.

Bank of Rajasthan, with its stronghold in the state of Rajasthan, has a nationwide presence,

serving its customers with a mission of “together we prosper " engaging actively in Commercial

Banking, Merchant Banking, Auxiliary services, Consumer Banking, Deposit & Money

Placement services, Trust & Custodial services, International Banking, Priority Sector Banking,

Depository. 

Bank of Rajasthan, a leading Private Sector Bank, having branches all over India with prominent

presence in Rajasthan having specialized forex and Industrial finance branches.

The Bank is committed to the highest level of customer satisfaction through personalized and

efficient services.

15
 LOGO

The logo consists of the historic Victory Tower of Chittorgarh, (Rajasthan) the rising sun and
sand-dunes in a circular shape of coin.

The Victory Tower, a symbol of warrior land of Rajasthan where the Bank was founded. The
Tower denotes the supremacy, the splendor and being outstanding.

The rising Sun symbolizes hopes, unlimited scope for progress and growth. The Sand Dunes
represent the state of Rajasthan where the Bank came in to being.

The Coin denotes economic activity, particularly banks.

AWARD AND RECOGINITIONS

16
The bank of Rajasthan ltd is now a clientele of HMAS ranges from some of the apex
national & international private sector & government banks to leading financial institutions & co-
operative banks.

Land marks:

 In the year 1948, the Bank was included in the second schedule by the Reserve Bank of
India.

 In 1955, the Bank was given license under Section 22 of Banking Regulation Act, 1949
by the Reserve Bank Of India (RBI).

 The Bank was among the first banks to take banking at the door step of customers by
introducing the concept of mobile branches, when it opened its first mobile branch in
Jaipur on 5th August, 1960.

 The Bank received license to deal in foreign exchange in 1973 from the RBI.

 The Bank was among the first banks in the private sector to have been assigned Lead
Bank responsibility which it shared with an associate of State Bank of Bikaner & Jaipur
in Udaipur District.

17
 The Bank became one of the earliest banks in private sector sponsoring any rural
(Gramin) bank, when it established the Mewar Anchlik Gramin Bank in Udaipur District in
Rajasthan on 26th January, 1983.

 In 1993, the Bank received authority to deal as class-I merchant Banker.

 The currency chest of the Bank was also started in the year 1993 .

 Bank's 1st, 100th, 200th,300th and 400th branches were opened in the year 1943, 1973,
1980, 1997 and 2006 at Bhilwara, Barmer, Jodhpur (Sardarpura), Cochin  and  Jaipur
(Nirman Nagar) respectively.

 The bank achieved a unique distinction when its C-scheme, Jaipur branch qualified for
ISO-9002:94 certification (quality system certified) by DET NORSKE VERITAS (DNV)
LONDON U.K in 1997.

 The Bank started its first ATM services in the series of Quality services to its customers
at C-Scheme Jaipur branch from 1st July 1998.

18
VISION, MISSION & VALUES OF THE ORGANIZATION

VISION

Technological strong

Financially sound

All India presence

Personalized services

Value maximization

Employee satisfaction

Skill maximization

MISSION
“DARE TO DREAM”
To be the most preferred bank

Leveraging technology

Develop life long relationship

With customer & create

Value for employee & stakeholders

Values
Together we prosper

19
VALUED CUSTOMERS OF THE BANK

Central Government Undertakings

 Konkan Railways
 Life Insurance Corporation of India Ltd.
 National Thermal Power Corporation
 Oriental India Assurance Company Ltd.
 Rural Electrification Corporation Ltd.
 United India Insurance Company Ltd.

State Government Undertakings

 Haryana Finance Corporation.

 Jaipur Development Authority
 Rajasthan State Road Transport Corporation
 Rajasthan State Bridge Construction Corporation Ltd.
 Rajasthan Small Industries Corporation Ltd.
 Rajasthan Finance Corporation Ltd.
 Rajasthan Industrial & Investment Corporation Ltd.
 Rajasthan State Mines Development Corporation Ltd.
 Rajasthan State Mines & Minerals Corporation
 Rajasthan Housing Board
 Rajasthan State Text Book Corporation
 Rajasthan State Agro Marketing Board Ltd.
 Rajasthan State Electricity Board
 Rajasthan State Ganganagar Sugar Mills Ltd.
 Uttar Pradesh Finance Corporation Ltd.

20
Other Corporates

 Aditya Birla Group

 Bajaj Electricals Group
 BSL Ltd.
 C.K Birla Group
 Escorts Group
 Essar Group of Industries
 Housing Development Finance Corporation
 J.K Industries Ltd.
 Jagran Group
 Rajasthan Spinning & Weaving Mills Ltd.
 Rochees Group
 Ruchi Soya Group
 Sahara India Group
 Shri Krishna Petro Group
 Singhania Group
 Swastic Pipe Ltd.
 UB Group
 Venkateshwara Hatcheries Ltd.

Diamond, Gems & Jwellery Exporters

 M/s K.G.K. Enterprises.

 M/s Dharam Chand Parash Chand Exports.
 M/s Premier Diamonds.
 M/s Allied Gems Corporation.
 M/s Flawless Diamonds .
 M/s Kinubala Gems Pvt. Ltd.
 Gems Co.
 G.K. Jwellers

21
  Darewala Jwellers
 Rajeev Arora

Institutions

 All India Shri Shivaji Memorial Society, Pune

 Board of Secondary Education, Ajmer
 Mayo College, Ajmer
 Mohanlal Sukhadia University, Udaipur
 Rajasthan Agricultural University, Bikaner
 S.M.S. Medical College & Hospital, Jaipur
 St. Anslem's School, Jaipur
 St.Xavier's School, Jaipur
 University of Rajasthan, Jaipur

Hotels

 Jai Mahal Palace, Jaipur

 Jaigarh Palace, Jaipur
 Ram Bagh Palace, Jaipur

22
 BANKING SERVICES PROVIDED BY THE BANK

Personal banking
The bank has included some general banking services provided to the customers on individuals
basis. These are -

1. Deposit & money placement service

2. Credit/loan facility

3. Auxiliary banking services

Accounts & Deposits

Accounts

 Savings Bank Accounts

 Current Deposits Accounts
 Recurring Savings Deposits (RSD) Accounts

Term Deposit Schemes (Domestic)

Various term deposit schemes are offered to the customers to save their money for fixed period
of time. A fixed rate of interest is paid on deposit amount. The various schemes are as follows-

1. Fixed Deposit Scheme

This scheme is suitable for the depositors to invest their funds at attractive rates of
interest for a fixed period.

23
2. Aravali Deposit Scheme

This is a reinvestment plan and has been designed to facilitate maximum return to
the depositors by way of reinvesting the amount of interest earned at the same rates
at which the deposit was initially accepted. 6 months to 120 months.

3. Jan Hiteshi Deposit Scheme

This scheme is designed especially for those persons who want to earn regular
monthly income by way of interest. The principal amount remains intact.

4. Nidhi Sanchay Yojna

(Automatic renewal scheme) Suitable for depositors to park deposits for short term
maturities (presently, as minimum as 15 days) and convenience of automatic
renewal (on due dates). The depositor is not required to visit the bank time and again
for renewal since the deposit renewed automatically in the cycle of 15 days along
with interest.

5. Sugam Jama Yojna (SJY)

The scheme (Flexible Deposit Scheme) offers dual advantage of high rates of
interest along with the facility of part withdrawal in case of need. The amount
remaining with the Bank continues to earn interest at contracted rates without loss of
interest on total deposit.

6. Suvidha Bachat Yojna

A scheme to save at convince and earn higher interest.

7. Flexi Fixed Deposit Scheme

24
Demat account

Demat account holder holds their shares in electronic form. Transactions are made in the same
way as the transfer of money from one account to another account.

Mobile Banking

This facility is provided to the account holder of any one of the ABB branch.the aacount holder
can get information about balance inaccount, current transaction, mini statement of 4 or 5
current entries and many more.

Phone Banking

The Bank has started Phone Banking Services. Under the Phone Banking Services, customers
(registered for the services) may get several services just on a phone call.

ATM facility

The bank is providing 24 hours services to its customers with its ATM machine. The
international debit cum ATM card provides opportunity to draw money in his account at any
time.

25
 RETAIL LEANDING

Retail lending is the practice of loaning money to individuals rather than institutions.
Retail lending is done by banks, credit unions, and savings and loan associations. These
institutions make loans for automobile purchases, home purchases, medical care, home repair,
vacations, and other consumer uses. Retail lending has taken a prominent role in the lending
activities of banks, as the availability of credit and the numbers of products offered for retail
lending have grown. The amounts loaned through retail lending are usually smaller than those
loaned to businesses. Retail lending may take the form of installment loans, which must be paid
off little by little over the course of years, or non-installment loans, which are paid off in one
lump sum.

Retail finance

Makes for efficient production of goods and services and helps discover, in the process, the
right price in the market place. The flip side is that it sets off an ugly war of unimaginable
proportions, threatening to shred into pieces the very fibre of the free market.

Perfect competition as envisioned in classical theory is a myth. The competition of the kind one
sees now is imperfect. Even this imperfect competition can work only when there is a method.
This essentially means having reasonably fair market practices. Where fair practice is given
short shrift, the system turns weak and wilts at the slightest hint of a problem.

26
 REATIL LOANS

Housing Finance:
It is provided to an individual singly/jointly for the purpose of construction of house/ purchase of
ready built house/land / extension of existing house/ repair of house. The amount of finance
depends upon the repayment capacity of the applicant.

Car Finance:

It is provided to an individual singly/jointly, firms etc. for the purchase of new brand car
for the purpose of personal/ professional/ business needs. The amount of finance
depends upon the repayment capacity of the applicant.

Loan against NSC's /LIC policies etc.:

It is provided for the purpose of meeting any contingency/ personal needs. The amount
of finance depends upon the repayment capacity of the applicant.

Loan for consumer durables:

It is provided to an individual singly/jointly, firms etc. for the purchase of consumer durables
such as TV, Fridge, Air Conditioner, Computer etc. for personal needs. The amount of finance
depends upon the repayment capacity of the applicant.

Loan against Shares:

It is provided to an individual singly/jointly, firms etc. against the shares of companies .

27
Loan against Deposits:

It is provided against the Term deposit of the bank.

Educational loan:

It is provided for higher studies.

28
 PERSONAL LOAN

ELIGIBILITY
Salaried or self employed
Professional with regular income

AGE

24 years to 65 years

MINIMUM INCOME
Salaried: 1 lac- p. a

Others: average annunal income Rs, 1.00 lac.

AMOUNT OF LOAN
Salaried:

Minimum : Rs 25000/-

Maximum : Rs 10.00 lacs

Others:

Minimum : Rs 25000/-

Maximum : Rs 15 lacs

29
PROCESING CHRAGES
2% of loan amount

INTEREST RATES
Varies from 15.00% to 19.00% depending on person profile

REPAYMENT PERIOD
12 to 48 months

MARGIN
No margin

FORECLOSURE CHRAGES
2% per payment amount

EXCESS TIME
7 days

GUARANTEE
Not mandatory

30
 EDUCATION LOAN
Education is a right of every child. India can shine when every child in India get proper
education. To make possible for every child to get higher education BOR(bank of Rajasthan)
provides very attractive education scheme by which every student can get benefit who have
desire of higher education. BOR education scheme is like a dream come true for every student.
The details of this scheme are as follows.

Objective:-
This is an ideal scheme which provides financial support to deserving and meritorious students
for pursuing technical / professional higher education in India as well as abroad. The main
emphasis is that every meritorious student even poor is provided with an opportunity to pursue
education with the financial support and on liberal / simple terms and conditions.

Student Eligibility:-
The student should be an Indian National and secured admission to professional / technical /
Graduation / Post Graduation courses in India or Abroad through Entrance Test / Merit Based
Selection process.
Sanction of loan will be considered on the basis of academic record, net worth & income of
family and scope for securing good / gainful employment. The student will have to submit all
required documentary evidences including receipts, estimates etc. & progress / performance
report to the Bank regularly till completion of the course.
In case of studies abroad, student should submit the Unique Identification Number (UIN) / copy
of Identity Card to the branch.
The student / applicant should not be availing / will not avail any education loan during currency
of our loan. Necessary Affidavit / Undertaking to this effect to be obtained.

31
Age limit:-

Minimum 16 years and maximum upto 40 years..

Borrower:

Student and Parent / Guardian jointly.

Studies in India:-

 Graduation courses – BA, B.Com, B.Sc. etc.

 Post Graduation courses - Masters & Phd.
 Professional courses – Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer, ICWA, CA, CFA etc. Courses conducted by IIM, IIT, IISc,
XLRI, NIFT etc.

Studies in abroad:-

 Graduation – for job oriented professional / technical courses offered by reputed

universities.
 Post graduation – MCA, MBA, MS etc.

Courses conducted by CIMA – London, CPA in USA etc.

Amount of loan:-

32
Need based finance, subject to repaying capacity of the parents / students with margin and the
following ceilings :-

For studies in India:

Maximum Rs.10lacs.

For studies abroad:

Maximum Rs.20 lacs.

Margin:-
Loan up to Rs.4.00 lacs:

No margin
Loan above Rs.4.00 lacs:

(i) 5% for studies in India

(ii) 15% for studies outside India.

Processing charges:-
No processing charges.

Excess time:-
It takes about 15 days to complete the proceedings of a loan.

Foreclosure charges:-

33
 Fore closure charges will be collected on education loan.

Securities:-
Loan upto Rs.4.00 lacs:

No security
Loan above Rs.4.00 lacs and upto Rs.7.50 lacs:
Collateral Security in the form of third party guarantee to the
satisfaction of bank.

Loan above Rs.7.50 lacs:

Collateral security equivalent to the loan amount comprising of any one
or more of the following : NSCs, Govt. Securities, Bank Deposits and Mortgage of Immovable
Property (supported with guarantee of the owner) in favour of the Bank and acceptable to the
Bank.

Rate of Interest:-
As prescribed / changed by bank from time to time at monthly rests. Presently the
rate of interest is 11% (4% below BPLR)(subject to change from time to time)

Penal Interest:

As per Bank's circulars in force for overdue amount and period.

Interest as and when debited will be recovered from the parent till repayment commences. (In
special / deserving cases interest may be funded for the study period up to a maximum of 2
years on selective basis at its sole discretion.

Repayment:-

34
Loan will be repaid in 5 - 7 years after commencement of repayment in equated monthly
installments depending upon quantum of loan and repaying capacity.
Repayment will commence six months after completion of course or one month after the student
starts earning, which ever is earlier.
Interest debited will be recovered from the parents till the repayment commences. (In special /
deserving cases interest may be funded for the study period up to a maximum of 2 years on
selective basis at its sole discretion.)
If the student is not able to complete the course within the schedule time, extension of time for
completion of course may be permitted for a maximum period of 2 years.

Documents Required:-

a) Loan application on Bank's format.

b) Passport size photograph.
c) Proof of Address(Permanent) / ID Proof.
d) Proof of Age.
e) Proof of having secured pass marks in last qualifying examination.
f) Letter of admission in professional, technical or vocational courses.
g) Prospectus of the course wherein charges like Admission Fee, Examination Fee,
Hostel Charges etc. are mentioned.
h) Details of Assets & Liabilities of parents.
i) In case loan amount is above Rs.4.00 lacs :
i. Particulars of Guarantors and details of their Assets & Liabilities.
ii. If immovable property offered as Collateral Security - copy of Title Deed,
Valuation Certificate and Non-encumbrance Certificate from approved
Lawyer of the Bank.

j) Photocopy of Passport & Visa, in case of study abroad.

35
 Home loan

Banks have been cashing in on the virtual property grab, which is the new paradigm about the
novae riche aspirations. The new real estate scenario in India is fueled by the home loans. The
magnificent India property scenario on the home loans engine has transformed the new middle
class aspirations into reality.

Eligibility:-
Any person/ group of persons, salaried/ self -employed / business class/ retired jointly with
employed spouse or son having regular income and capacity to repay installments of proposed
housing loan.

Age limit:-
Minimum 21 years and maximum upto 65years..

36
Borrower:
Salaried, self employed business classed person can take loan.

Income:-
Salaried: Minimum Rs 8500/-p.m.

Professionals:-

Average income of last three years-Rs 1 lac.

Purpose:-
 Purchase of ready built House/Flat, Land and construction thereon
 Repairs and Renovation.
 Shifting / take over of loan. (Take over of loans availed from other financial Institutions)

Quantum of loan:-
For Purchase of ready built House/Flat, Land and construction thereon. :-

Maximum Rs.100.00 lacs.

For Repair and Renovation –

Maximum Rs.10.00 lacs

Margin:-
20% : for Home Loan up to Rs.20.00 lacs

25% : Above Rs.20.00 lacs

37
Processing charges:-
2% of prepaid amount However, if repayment is made from own sources, no foreclosure
charges would be applicable

Excess time:-
It takes about 7 to 10 days to complete the proceedings of a loan.

Foreclosure charges:-
Charges 2% of prepaid amount at the time of premature closure of account. However,
prepayment up to six installments will not attract foreclosure charges. In other words, if a/c is
prematurely closed when last not more than six installments are outstanding, the foreclosure
charges will not be levied

Securities:-
  Equitable Mortgage of property to be purchased out of loan.
 Bappi Patta (original) along with fee deposit receipt at Gram Panchayat will be
acceptable as security.

Repayment:-
 Maximum 20 years in case of purchase/construction of house/flat/apartment inclusive of
moratorium period.
 Maximum 9 years in case of repairs and renovations.

38
Rate of Interest:-

Housing loan Up to Rs. More than

30 lacs Rs 30 lacs
Floating category
Up to 5 years
For 1st Year 8.00 8.50
For 2nd & 3rd Yr 9.00 9.50
4th Year onwards 9.25 10.25
More than 5 years to 10 Years
for1st Year 8.00 8.50
For 2nd & 3rd Yr 9.00 9.50
4th Year onwards 9.25 10.25
More than 10 years to 15 years
For 1st Year 8.00 8.50
For 2nd & 3rd Yr 9.00 9.50
4th Year onwards 9.25 10.25
More than 15 years to 20 years
For 1st Year 8.50
For 2nd & 3rd Yr 8.00 9.50
4th Year onwards 9.00 10.25
9.25
Fixed Category
Up to 5 years
For 1st Year 9.50 9.50
For 2nd & 3rd Yr 10.50 10.50
4th Year onwards 11.75 11.75
More than 5 years to 10 years
For 1st Year 9.50 9.50
For 2nd & 3rd Yr 10.50 10.50
4th Year onwards 11.75 11.75
More than 10 years to 15 years
For 1st Year 9.50 9.50
For 2nd & 3rd Yr 10.50 10.50
4th Year onwards 11.75 11.75
Above 15 years to 20 years For
1st Year 9.50 9.50
For 2nd & 3rd Yr 10.50 10.50
4th Year onwards 11.75 11.75

39
 TWO WHEELER LOANS
A person wants certain luxuries for enjoying his life and two wheeler is one of them. a two
wheeler gives him convenience to travel one place to another. Now days it become a status
symbol of youngster in society. So it becomes a need of every human being but some people
does not have the capacity to pay a huge amount at a time but they can pay the price in
installment so for these people many banks offer car loan schemes. In which they can buy and
pay its price in installment. The features of PNB saarthi scheme are as follows.

Eligibility a. Individuals
b. Students, aged 18 years and above, with parent as
co- borrower;

c. Business concerns (Corporate or non-corporate.)

Age 21 years to 65 years inclusive of loan period

Income Minimum Rs 5000/- p.m.

40
 Purpose For purchase of new two wheeler.

Scooter , Motor cycle, Scooterrete, Moped

Amount of Loan Maximum Rs. 60000/- only

Margin 10% including one time road tax registration free

Rate of Interest For employees of Govt, Psu , P&S Employed &

medical practioners 2%above BPLR i.e. 17.00%
for others not classified4% above BPLR –19.00%

Processing 7 days
period

Repayment
24 months to 60 months
period

Foreclosure 3% of period amount (allowed after 6 months from the

charges date of first EMI is due and unpaid)

Guarantee
Not mandatory

41
Document required for loan

1. Identity Proof / Pan Card

2. Residence Proof
3. Driving License / Under Taking
4. Last Educational Qualification Certificate
5. Last 6 month bank account statement
6. Detail of assets and liabilities with proof {if own ?spouse / parent house ;
house tax receipt – photocopy of regd. title deed }
7. Last three years IT Return with computation
Or

Latest salary slip with form 16 / appointment letter from employer.

Guarantor Documents:-

1. Identity Proof / Pan Card

2. Residence Proof
3. Last 6 month bank account statement
4. Detail of assets and liabilities with proof {if own ?spouse / parent house ;
house
5. tax receipt – photocopy of regd. title deed

Last three years IT Return with computation

Or

Latest salary slip with form 16 / appointment letter from employer.

42
 NEW CAR LOAN

Eligibility

Salaried, business, profession

Age Minimum 21 years

Maximum 65 years time of maturity of loan

Income 1 lac. per annum

Purpose For purchase of new three wheeler car.

Amount of Loan Minimum Rs 1 lac.

Maximum Rs. 25 lac.

43
 Margin 10% up to loan amount 10 lacs 20% above Rs. 10 lacs

Rate of Interest For salaried 9.50% p.a.

For self employed ,profession 10.00% p.a.

Processing period 7 days

Repayment period
18 months to 60 months

Foreclosure 5% of period amount after 6 month of first EMI is due

charges and unpaid.

Processing 1% of sanction amount

charges

Panel interest 4%

Guarantee
Not mandatory

44
 CONCLUSION

 After analysis and interpretation I conclude that the bank of Rajasthan ltd. Has been able
to satisfy its customers by providing various financial services.

 Customer satisfaction is the prime concern of the bank and tries to minimize customer’s
complaint.

 Technologically updated and provides best services of mobile banking.

 Most of the customer feel comfortable and strong satisfaction to work with it because
finical reduce paper work, fear of loss data, time wastage etc.

 It provide full of security any information an any time what you wants to gain. “it creates
transactions revolution in banking sector.

 It provides less interest rate.

RECOMMENDATIONS

45
 Many of the customers, during the survey had complained with the working of ATM
machine. The bank should consider this problem and try to overcome with the problem.

 Some of customer had insisted that the bank should give detailed explanation of the
deductions made from their accounts.

 The customers should given brochures and pamphlets containing information about the
use of fiancé

 .locker facility is limited bank should consider it to increase.

SWOT ANALYSIS

46
STRENGTS

 Strong financial position of the bank of Rajasthan ltd.

 Strong reputation of the bank.

 Strong advertising & promotion.

 Sound organization climate based on mutual trust.

 Every service and fastest means of communication.

WEEKNESS

 Lack of trainers.

 Lack of qualified employees.

 ATM machines are few in numbers.

 Employees do not have update knowledge.

47
OPPORUNITIES

 Global markets.

 Sophisticated use of E-commerce and internet techniques.

 Boom in sector.

THREATS

 New competitors such as UTI, ICICI and HDFC etc. are entering to the
markets.

 Fluctuation of interest rate comparison of other banks.

 Fast technological changes.

GLOSSARY
48
Foreclosure charges: Charges for closing the loan account before maturity.

Lending margin: Different between the project cost & amount provided by the bank to
the customer.

Panel interest: This interest is charged when commitments made by the borrower are not
met.

Processing charges: Time consumed in whole process of sanctioning a loan after

proper documentation & fulfillment of all formalities.

EMI: Equated monthly installment.

BIBLIOGRAPHY

49
 Websites
 www.bankofrajasthanlit.com

 www.google.com

 www.rbi.co.in

 www.finance.indiamart.com

 Bank of Rajasthan ltd’s internal circulars

 Book of instruction of the bank

 Manuals of the bank

 Help provided by the project guide, trainer

50