A

STUDY
ON
RETAIL LOANS

Submitted in Partial Fulfillment of the Requirements of

Sikkim Manipal University for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

Prof. S.P TIWARY

MBABR0017 By

MUKESH KUMAR SINGH

Reg. No : 1311004641

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 DECLARATION

I, Mukesh Kumar Singh, (FINANCE) hereby declare that this dissertation titled, “A Study on Retail Loans

(With Special Reference To Union Bank Of India)”

The Role of, is based on the original project study conducted by me under the guidance of Prof. S.P TIWARY.

This has not been submitted earlier for the award of any other degree / diploma by SMU University or any

other University.

Date: 27st Sep 2015

Place: Sasaram (Mukesh Kumar Singh)

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 CERTIFICATE FROM THE GUIDE

Certified that this dissertation titled “A Study on Retail Loans (With Special Reference To
Union Bank Of India)” is based on an original project study conducted by Mukesh Kumar Singh, of IV
Semester MBA(FINANCE) under my guidance.
This dissertation has not formed the basis for the award of any other degree / diploma by SMU University or
any other University.

Date: 29-09-2015

Place: Sasaram

(Prof. S.P TIWARY)

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 Preface

MBA is a stepping-stone to the management carrier and to develop good

manager it is necessary that the theoretical must be supplemented with exposure
to the real environment.

Theoretical knowledge just provides the base and it’s not sufficient to produce a
good manager that’s why practical knowledge is needed. Therefore the research
product is an essential requirement for the student of MBA. This research
project not only helps the student to utilize his skills properly learn field
realities but also provides a chance to the organization to find out talent among
the budding managers in the very beginning.

In accordance with the requirement of MBA course I have summer training

project on the topic “A Study on Retail Loans (With Special Reference To
Union Bank Of India)”. The main objective of the research project was to
study the retail loans offered by UBI and make a detailed comparison with other
selected public sector banks.

For conducting the research project sample size of 4 banks & 200 customers of
UBI were selected. The information regarding the project research was
collected through the questionnaire formed by me which was filled by the
customers there and website of various banks.

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 Table of Contents

Chapter Page No.

I. EXECUTIVE SUMMARY……………………... 4
II. COMPANY PROFILE……………..………….… 7
III. RETAIL BANKING………………………….…. 19
IV. RESEARCH METHODOLOGY……………….. 44
V. ANALYSIS & INTERPRETATION……………. 47
VI. FINDING …………………….…………………. 82
VII. SUGGESTIONS………………......................... 87
VIII. LIMITATIONS…………………………………. 90
IX. CONCLUSION……………………………….... 92

BIBLIOGRAPHY……………………………………. 94
ANNEXURE..……………………….……………….. 96

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 Executive Summary
The main object of the project was to learn about the various retail products that
the bank had to offer to the customers, to compare the same with the retail loan
products of other selected banks and find out customers views and perceptions
about the retail lending products so offered so to adjudge their competitiveness.

In order to know about the schemes detailed descriptions of schemes was

prepared and then on the basis of them comparative tables were prepared to
compare the schemes of UBI with the schemes of other selected banks.

In order to understand and analyze the awareness and perception of customers a

questionnaire was prepared and the focus was on the walk inns at the branch
that already are customers of the bank. The idea was to analyze the various
features as mentioned above and further support the comparative study. Various
methods and techniques which show the analysis of data through tabulation,
computation and graphical representation of data collected from survey were
used to accomplish the study and on the basis of these findings were given.

After the findings, comes the suggestion & conclusion part which is very much
important after analysis is made.

Indian banking is witnessing historic transformation form commercial/corporate

banking to retail banking. In year 2000 the percentage of retail advances was
13.65% which is projected to increase to a level of 50% in year 2015.
Conversely, the proportion (in % term) of commercial advances in total
advances in the banking industry would going to be reduced over a period of
time.

For my task of learning the various products and their features I was guided by
the executives at the bank a lot of observation went in and sufficient data form
the internet was used to understand the products.

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 Importance of The Project

Because of the following reasons, I prefer this project work to get the
knowledge of the banking system especially Retail Lending.

• Banking is an essential industry.

• It is where we often wind up when we are seeking a problem in financial crisis
and money related query.
• Banking is one of the most regulated businesses in the world.
• Banks remain important source for career opportunities for people.
• It is vital system for developing economy for the nation.
• Banks can play a dynamic role in delivery and purchase of consumer durables.
• Retail Loans are one of the very important products of the banks.

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 Company Profile

Union Bank of India (UBI) is one of India's largest state-owned banks (the
government owns 55.43% of its share capital). It has assets of USD 13.45
billion and all 2852 the bank's branches have been networked with ATMs. Its
online Tele-banking facility is available to all its Core Banking Customers -
individual as well as corporate. It has representative offices in Abu Dhabi,
United Arab Emirates, and Shanghai, Peoples Republic of China, and a branch
in Hong Kong.

Because of its acronym UBI, the public sometimes confuses it with United
Bank of India.

Union Bank of India is firmly committed to consolidating and maintaining its

identity as a leading, innovative commercial Bank, with a proactive approach to
the changing needs of the society. This has resulted in a wide gamut of products
and services, made available to its valuable clientele in catering to the smallest
of their needs. Today, with its efficient, value-added services, sustained growth,
consistent profitability and development of new technologies, Union Bank has
ensured complete customer delight, living up to its image of, “GOOD
PEOPLE TO BANK WITH”. Anticipative banking- the ability to gauge the
customer's needs well ahead of real-time - forms the vital ingredient in value-
based services to effectively reduce the gap between expectations and
deliverables.

The key to the success of any organization lieu with its people. No wonder,
Union Bank's unique family of about 26,000 qualified / skilled employees is
and ever will be dedicated and delighted to serve the discerning customer with
professionalism and wholeheartedness.

Over the years, the Bank has earned the reputation of being a techno-savvy and
is a front runner among public sector banks in modern-day banking trends. It is
one of the pioneer public sector banks, which launched Core Banking Solution
in 2002. Under this solution umbrella, All Branches of the Bank have
been networked with ATMs, with online Tele-banking facility made available
to all its Core Banking Customers - individual as well as corporate. In addition

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to this, the versatile Internet Banking provides extensive information
pertainning to accounts and facets of banking. Regular banking services apart,
the customer can also avail of a variety of other value-added services like Cash
Management Service, Insurance, Mutual Funds and Demat.

For financial year ending 31 March 2010, the bank reported a net profit of
Rs.2074.92 crore. Union Bank of India sanctions loans/credit assistance to
MSME Industries for acquisition of fixed assets (factory land/buildings &
machinery) and working capital requirements at very competitive interest rates.
Bank also has financing schemes for sectors like trade & retail. Bank is going in
a big way to cover retail sector with larger share to housing & educaton.

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 History

 1919: UBI was registered on November 11, 1919 as a limited company in

Mumbai. It was inaugurated by Mahatma Gandhi.

 1947: UBI had only 4 branches - 3 in Mumbai and 1 in Saurashtra, all

concentrated in key trade centers.

 1969: The Government nationalized UBI. At the time of its

nationalization, UBI had 240 branches in 28 states.

 After nationalization, UBI merged in Belgaum Bank, a private sector bank

established in 1930.

 1985: UBI merged in Miraj State Bank, established in 1929.

 1999: UBI acquired Sikkim Bank in a rescue at the request of the Reserve
Bank of India after the discovery of extensive irregularities at the non-
scheduled bank. Sikkim Bank had eight branches located in the North-
east, which was attractive to UBI.

 2007: UBI opened representative offices in Abu Dhabi, United Arab

Emirates, and Shanghai, Peoples Republic of China.

 2008: UBI opened a branch in Hong Kong, its first branch outside India.

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  2013: UBI opened a representative office in Sydney

Since then bank has traversed an eventful and successful journey of 92 years.
Today, Union Bank of India has a network of 2,082 branches.

Over the years, the Bank has earned the reputation of being a techno-savvy and
is a front runner among public sector banks in modern-day banking trends. It is
one of the pioneer public sector banks, which launched Core Banking Solution
in 2002. Under this solution umbrella, All Branches of the Bank have
been networked with ATMs, with online Tele-banking facility made available
to all its Core Banking Customers - individual as well as corporate. In addition
to this, the versatile Internet Banking provides extensive information
pertainning to accounts and facets of banking. Regular banking services apart,
the customer can also avail of a variety of other value-added services like Cash
Management Service, Insurance, Mutual Funds and De-Mat.

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 About Logo

Bank has adopted a simple new logo for universal appeal and to aid top of mind
recall. The new logo symbolizes the qualities and values we stand for. Blue
standing for the commitment and the Red for the passion the Bank brings to the
work. Union bank has promised 4 key deliverables to customers based on the
strength built in:

1) Value for money

2) Committed turnaround time for delivery of products and services
3) Choice of banking channels for customers and
4) Transparency in product offerings and prices

Bank promises that YOUR DREAMS ARE NOT YOUR ASLONE, there is a
bank that is ready to fulfill the dreams of every one and hus ensuring that we
remain GOOD PEOPLE TO BANK WITH for all times to come.

Vision
“To become the bank of first choice in our chosen areas by building
beneficial and lasting relationship with customers through a process of
continuous improvement”

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 Management Profile

Name Designation
Shri Arun Tiwari Chairman & M.D

Shri. Rakesh Sethi Executive Director

Shri S. Raman Executive Director

Shri Mihir Kumar (Govt. of India, Nominee)

Shri Anil Kumar Misra Govt. of India Nominee on

recommendation of R.B.I

Shri N. Shankar Workmen Director

Shri Ashok Singh Govt. of India, Nominee Director

under General category

Sushri Anusuiya Sharma Part Time Non-Official Director

Shri Jag Mohan Sharma Charter Accountant Director

Dr. R. H Dholakia Shareholder Director

Shri G. K. Lath Shareholder Director

Dr. Uttam Kumar Sarkar Shareholder Director

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 Competitors and Other Players in the Field

Top Performing Public Sector Banks

 State Bank of India
 Punjab National Bank
 Bank of India
 Canara Bank
 Bank of Baroda

Top Performing Private Sector Banks

 ICICI Bank
 HDFC Bank
 AXIS Bank
 IDBI Bank
 Kotak Mahindra Bank

Top Performing Foreign Banks

 Citibank
 Standard Chartered
 HSBC Bank
 ABN AMRO Bank
 American Express

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 Retail Banking Product & Services of UBI
Followings are the main products of The Union Bank of India.

 Deposits
 Accounts
 Loans
 Credit Cards
 Debit Cards
 Mutual Funds
 Insurance
 ATM’s
 Services
 Lockers

(1) Deposits:
Union Bank of India offers various deposit plans that you can
choose from depending on the term period, nature of deposit and its unique
saving and withdrawal features.

Apart from competitive interest rates and convenient withdrawal options, our
deposit plans offer other features such as overdraft facility, outstation cheque
collections, safe deposit lockers, ATM's etc.

Fixed deposits are categorised into deposits with a term period of less than 12
months, more than 12 months and recurring deposits. These deposit plans offer
convenient solutions to both working individuals as well as senior citizens.

Current and saving deposits are ideal for individuals who wish to take
advantage of multiple benefits within the same plan and even be eligible to opt
for overdrafts.

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 (2) Accounts: Union Bank of India offers various types of accounts that you
can choose from depending on your requirements, nature of business and
its unique saving and withdrawal features.

(3) Loans:

Union Bank offers retail loans and loans to MSME’s as well.

Retail Loans:
Union Bank of India offers a wide range of retail loans to
meet your diverse needs. Whether the need is for a new house, child's
education, purchase of a new car or home appliances, our unique and need
specific loans will enable you to convert your dreams to realities.

KEY PRODUCTS
Home Loan Personal Loan
Loans For Pensioners Auto Loans
Secured Loans Education Loan
Health Loan Mortgage
Reverse Mortgage

(4) Credit Cards:

Union Bank of India offers following range of credit
Cards.

(5) Debit Cards:

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The Union Bank of India International Debit Card is accepted at over 10000
Visa Electron ATMs in India and 850000 ATMs worldwide. The card is also
accepted at any 100000 merchant outlets in India and around 13 millions
globally. The card enables you to enjoy the convenience of cash-less purchasing
power without the fear of overdrawing your account.

Key Benefits:

 Take advantage of the most widely accepted card and be able to

withdraw from any ATM displaying the VISA logo, in India and abroad.
 At VISA Electron merchant shops, it can also serve as your electronic
purse, and money gets debited instantly from your account, as you pay.
 The Card allows you to get mini-statements from Union Bank of India
ATMs, or to check the balance in your account, avoiding visits to even
our nearest branches.

(6) Services:

Apart from the Loans, Deposits, Credit and Debit Cards, Union Bank of India
offers other services to make financial dealings easy and convenient.

Key Services:

 Demat Account
 Online Demat Trading

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  Remittances
 Collection Services
 e-banking
 Telebanking
 Railway Ticket Booking
 Cash Management Services
 Bill Payment Service
 Tax Payment Service
 ECS (Electronic Clearing Services)
 Government Business (PPF, Tax Collections and Tax Savings Bonds)

(7) Lockers:

Storing too much jewellery and valuables in the house at times becomes a
security issue and an impediment in case of natural calamities.

Union Bank of India offers you, a safe, trustworthy space to store your
valuables, jewellery, documents and other things dear to you.

Key Benefits:

 State-of-the-art Lockers, the safe deposit vaults with fully equipped,

latest burglar alarm systems.
 For additional safety, the Locker holder assigns a code word which
further increases security.
 Available in different sizes as per your requirement.
 These Lockers and their contents can be nominated to people near and
dear to you

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 Introduction to the Retail Banking

“Retail banking is typical mass-market banking where individual customers use

local branches of larger commercial banks. Services offered include: savings
and checking accounts, mortgages, personal loans, debit cards, credit cards,
and so”

The retail banking encompasses deposit and assets linked products as well as
other financial services offered to individual for personal consumption.
Generally, the pure retail banking is conceived to be the provision of mass
banking products and services to private individuals as opposed to wholesale
banking which focuses on corporate clients. Over the years, the concept of retail
banking has been expanded to include in many cases the services provided to
small and medium sized businesses. Some banks in Europe even include their
private banking business i.e. services to high net worth net worth individuals in
their retail Banking portfolio.

The concept of Retail banking is not new to banks. It is only now that it
is being viewed as an attractive market segment, which offers opportunities for
growth with profits. The diversified portfolio characteristic of retail banking
gives better comfort and spreads the essence of retail banking lies in individual
customers. Though the term Retail Banking and retail lending are often used
synonymously, yet the later is lust one side of Retail Banking. In retail banking,
all the banking needs of individual customers are taken care of in an integrated
manner.

SCOPE FOR RETAIL BANKING IN INDIA

o All round increase in economic activity

o Increase in the purchasing power. The rural areas have the large purchasing
power at their disposal and this is an opportunity to market Retail Banking.
o India has 200 million households and 400 million middleclass population
more than 90% of the savings come from the house hold sector. Falling
interest rates have resulted in a shift. “Now People Want To Save Less And
Spend More.”

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o Nuclear family concept is gaining much importance which may lead to large
savings, large number of banking services to be provided are day-by-day
increasing.
o Tax benefits are available for example in case of housing loans the borrower
can avail tax benefits for the loan repayment and the interest charged for the
loan.

Retail Lending
Retail lending is the very important part of retail banking. 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 purchase, 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
amount loaned through retail lending is usually smaller than those loaned
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. There are number of retail loans offered by
banks. Some of them are:

 Home Loan
 Education Loan
 Auto Loan
 Personal Loan
 Mortgage Loan
 Loan Against Shares/Debentures
 Etc.

Now a day a large no. of people are taking loan from different banks. It helps
people to fulfill their need and it is really easy to repayment the loan amount
with a longer repayment period.

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 Retail Loans Of Union Bank Of India
1. Union Cash
Eligibility:

Retired employees of Government / Semi Government undertakings, Banks and

other reputed private organisations etc. who draw fixed income / pension
through our Bank.

Purpose:

To meet financial requirements.

Type Of Loans:

 Demand Loan repayable in installments with a maximum repayment

tenure of 36 months
 Term Loan with repayment tenure of above 36 months and maximum
upto 48 months.

Quantum:
Upto Rs.1,00,000/- or 12 times the monthly pension, whichever is less.

Margin:
25% in case of Deposit Receipts / NSC / Bonds issued by Government of India
/ Financial Institutions.
50% in case of Shares & Debentures.

Repayment:
12 – 36 EMIs in case of Demand Loan repayable in Installments
Above 36 to 48 EMIs in the case of Term Loan

Rate of Interest (w.e.f. 01.07.2013): 13.75% (Fixed)

(Interest rates subject to revision from time to time)

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Processing Charges (Excluding Service Tax)
NO Processing charges.

Security
Pledge of Deposit Receipts / Shares / Debentures of corporates of good
standing, NSCs Bonds issued by Government of India / Financial Institutions
etc.
Where sufficient security is not available, personal guarantee of spouse or a
person who is the nominee under pension scheme is to be obtained.
In genuine cases, the Bank may consider this facility on a clean basis.

Other Conditions
Declaration is required from the spouse who is eligible for family pension.

2. Union Comfort
Eligibility

 Age 18 yrs completed.

 Permanent employee of Central Government / State Government/
Defence / Police Force / Autonomous bodies / Public / Joint Sector
undertaking / Corporations / Limited Companies / Firms / Established
Educational Institutions.
 Individuals having regular income.
 Tax payers, Non-I-T permissible if annual pay Rs.1 lac or more and net
take home annual pay Rs.0.40 lac - after deducting EMI of present loan.
 Salary accounts with financing branch.
 Min. 40% marks as per investment grade scoring chart.

Purpose
To meet personal expenses or purchase of consumer durables.

Quantum

 6 months net salary not exceeding Rs. 1 lac for salaried class.

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  For others, 50% of annual income as per last 2 IT returns (not exceeding
Rs.1 lac.)

Margin
Nil.

Repayment
In 36 Euated Monthly Instalments(EMIs). Repayment starts from the nest
month of disbursement of loans.

Rate Of Interest (w.e.f. 01.07.2013)

 15.00%.
 Concession in the rate of interest can be considered by Regional Head in
case of group borrowers.

Processing Charges (Excluding Service Tax)

 Rs. 100 upto Rs. 10,000/-

 Rs. 250 upto Rs. 50,000/-
 Rs. 500 above Rs. 50,000/-

Security
One Guarantor having means equivalent to the loan amount, Hypothecation Of
Asset wherever applicable.

Other Conditions

 Proof of Income (Salary Certificate).

 Proof of Residence (latest Tel. Bill/Electricity Bill/Employer's
Certificate)
 Irrevocable undertaking letter from the employer for recovery of
installment from salary every month and to remit to bank directly.
 Irrevocable undertaking by the borrower authorising the Bank to recover
the loan installments from his/her salary A/c./SB A/c. with the Branch.

* Prevailing Rate of Interest will be applicable as on date of sanction.

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 3. Union Education
Objective & Purpose

The scheme aims at providing financial assistance on reasonable terms:

 To the poor and needy students that they may undertake basic education
 To meritorious students that they may pursue higher or professional or
technical education

Eligibility
The student applying for UNION EDUCATION Loan ought to:
 Be an Indian National
 Has secured admission to professional or technical courses through an
appropriate Entrance Test or selection process
 Has secured admission to a foreign University
 Has passed an appropriate qualifying examination

a. Studies in India
 Graduation/Post-Graduation
 Professional course
 Management course
 Special Education Loan Scheme for Students pursuing
courses from approved institutions like IITs/IIMs/ /NIT
XLRI/BITS/VIT/IISc/S.P. Jain Institute Of
Management/Symbiosis Institute Of Management and T.S.
Chanakya, Navi Mumbai- Nautical Science and MERI,
Calcutta, Marine Engineering, MERI, Mumbai, Maritime
Science.

b. Studies Abroad :
 Graduation: For job-oriented professional or technical
courses offered by reputed universities
 Post-Graduation: MCA, MBA, MS and such other courses
 Courses conducted by CIMA, London, CPA, USA., and
such other institution

Purpose

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To the poor and needy students to undertake basic education.

To meritorious students to pursue higher or professional or technical education.

Conditions
 The Parent/Guardian of the student who is availing loan from our bank
shall be made co-obligator/joint borrower irrespective of the age of such
students.
 The Loan Accounts of students applying through college/institutions will
be sanctioned/disbursed at the branch nearest to permanent
residence/place of domicile of the borrower student.
 Loan will be disbursed directly to the college/institute.
 Student to produce mark list of previous term/semester before availing
next installment.
 Student /Parent to provide latest mailing address before availing next
installment.
 In case of parents with transferable job, new address to be provided
before availing installments.

Quantum Of Loan
Need-based finance subject to repayment capacity of the parent or student with
margin and upto the following ceilings
For studies in India - Up to Rs. 10 lacs
For studies abroad - Up to Rs. 20 lacs

Margin
No margin for loans up to Rs. 4.00 lacs . However, for loan of higher amounts,
the margin requirement is 5% for inland studies and 15% for studies abroad.
Scholarship/assistance to be included in margin.
Margin maybe brought in on pro-rata basis as and when disbursement is made.

Repayment
Repayment holiday or Moratorium on loan: Course period + 1 year OR 6
months after job placement, whichever is earlier.
Starting from this point, the loan is to be repaid in 5-7 years after completion of
course period/moratorium.

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 Rate Of Interest(w.e.f 01.07.2013)
For Male Student :
Up to Rs. 4.00 lakhs : 11.75% (Fixed)
Above Rs. 4.00 lakhs upto Rs.7.50 lakhs : 12.50% (Fixed)
Above Rs. 7.50 lakhs : 12.00% (Fixed)

For Female Student:

Up to Rs. 4.00 lakhs : 11.25% (Fixed)
Above Rs. 4.00 lakhs upto Rs.7.50 lakhs : 12.00% (Fixed)
Above Rs. 7.50 lakhs : 11.50% (Fixed)

* Interest rates subject to revision from time to time

Security:
 Up to Rs. 4.00 lakhs - Nil
 Above Rs. 4.00 lakhs upto Rs.7.50 lakhs – Collateral in form of suitable
third party gurantee.
 Above Rs. 7.50 lakhs – collateral security of suitable value along with
assignment of future income of student for payment of installments.
 Life insurance policy of sum not less than the loan amount is required to
be taken out in name of student & got assigned in bank’s favour for the
entire repayment tenure (preferably SUD life – Shiksha Suraksha Plan)

Documents Required for Union Education:

Completed application form
· 2 Passport size photograph of each applicant and co-applicant (Parent)
· Proof of income, salary certificate, Income tax returns etc of co-applicant (Parent)
· Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving License/College-I
card
· Copy of admit card and rank card of qualifying admission test/entrance test, proof
of admission, offer letter etc ( I-20) in the case of overseas education.
· Proof of Residence – Recent Telephone Bill/ Electricity Bill/ Property tax receipt/
Passport/ Voters ID Bank Account statement/passbook for the previous six months.
· Proof of Co-applicant business address in respect of businessmen/ industrialists.
· Sale Deed, , Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as
applicable) in case collateral security is offered.

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*In case of third party guarantee, statement of assets and liabilities such guarantor

4. Union Health
Eligibility
Any qualified medical practitioner / Dentist in the age group of 25 to 60 years
with minimum three years experience and in the age group of 25 to 60 years.
Firms / Companies engaged in medical profession in which Doctors / Dentist
are Partners or Directors or the Proprietor.

Quantum
An amount equivalent to 75% of the equipment cost and other Assets to be
financed.

Margin
Minimum 25% of cost of equipments and other assets to be financed.

Repayment
Maximum 7 years including initial moratorium period of 3/6 months - By
Equated Monthly Instalments.

Rate Of Interest (w.e.f. 01.07.2013)

A Fixed Interest rate of 12.50% for Individuals and 12.50% for others. Interest
rate will not undergo any change till full repayment of the loan.
* Interest rates subject to revision from time to time

Processing Charges(Excluding Service Tax)

0.50% of loan amount.

Security
Hypothecation of equipment / items purchased out of Bank finance.
Collateral security 50% of loan amount.
EM of premises in case the loan is for acquiring premises.

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Other Conditions
Third Party gurantee is not mandatory

No Prepayment penality if the loan is adjusted by the borrower from his own
verifiable legitimate sources or genuine sale. However, 2% charged on an
average o/s. balance of last 12 months if loan is closed on take over by other
Banks / Financial Institutions.

* Rate of Interest prevailing on the date of sanction shall be applicable.

List of documents

·Completed Application Form

·Passport size photograph of the applicant
·Copy of certificate evidencing Medical qualification
·Copy of Registration with AIMA
· Quotations towards purchase of equipment/copy of sale agreement towards
purchase of premises for setting up of clinic
·IT-Return
·Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving License
·Proof of Residence – Recent Telephone Bill/ Electricity Bill/ Property tax
receipt
·Statement of Bank Account for last 6 months
·Details of collateral security offered

5. Union Home
Eligibility

 Indian Citizen - 21 years and above.

 Either single account or joint account with other family members
viz.(father, mother, spouse or son ) with regular source of income.
 Individuals who may be employed/self-employed in business having
regular income.

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  A minimum of 50% marks as per investment grade scoring chart(Internal
method of the bank).

Purpose

 Purchase/construction of independent house/flat.

 Repair/Improvement/Extension.
 Repayment of loan availed from another agency/Bank/NBFC.
 For purchase/ construction of 2nd property (independent house/flat)
 Plot sold by a Government-recognized agency viz., HUDA, HOUSEFED
and such others.

Quantum

 Max Rs. 300 Lacs for Mumbai, Delhi, Kolkata, Chennai, Bengaluru,
Ahmedabad, Hyderabad,Gurgaon, Noida and New Delhi.
 For other cities Rs. 100 lacs
 Max. Rs. 10 lacs for repair.

Margin

 For loan up to Rs. 200 lacs, 20% of the cost of the property.
 For loan above Rs. 200 lacs, 35% of the cost of the property.

Repayment

 Moratorium up to 18 months wherever loan is taken for under

construction flat or building.
 By Equated Monthly Installment (EMI.)
 The maximum repayment period should not exceed 25 years
(including moratorium) for construction / purchase of house/ flat and 10
years for repair.
 Option of Flip/Step-up/Balloon methods of repayments for the
convenience of the borrowers.

~ 32 ~
Rate Of Interest ( w e f 15.02.2013)
Loan upto Rs. 5 Lacs

Tenor Upto 5 years >5 Years to >10 Years to 15 >15 Years to 25

10 Years Years Years
Fixed 9.75% N.A. N.A. N.A.
Floating BPLR - BPLR - 2.50 BPLR - 2.25 % BPLR - 2.25 %
2.75% % i.e 9.50 % i.e 9.50 %
i.e . 9.00 % I .e. 9.25 %

Loan above Rs 5 Lacs upto 30 Lacs

Tenor Upto 5 years >5 Years to >10 Years to 15 >15 Years to 25

10 Years Years Years
Fixed 9.75% N.A. N.A. N.A.
Floating BPLR - BPLR - 2.50 BPLR - 2.25 % BPLR -
2.75% % i.e 9.50 % 2.25%
i.e . 9.00 % i.e. 9.25 % i.e. 9.50%

Loan above Rs 30 Lacs upto 50 Lacs

Upto 5 >5 Years to 10 >10 Years to 15 >15 Years to 25

Tenor
years Years Years Years
Fixed 10.75% N.A. N.A. N.A.
BPLR -
BPLR - 2.25 % BPLR - 2.00 % BPLR - 2.00% i.e.
Floating 2.50%
i.e. 9.50 % i.e 9.75 % 9.75%
i.e . 9.25 %

Loan above Rs 50 Lacs and upto 200 Lacs

Upto 5 >5 Years to 10 >10 Years to 15 >15 Years to 25

Tenor
Years Years Years Years
Fixed 10.75% N.A. N.A. N.A.
BPLR- BPLR - 1.75
BPLR - 1.50% BPLR - 1.50%
Floating 2.25% %
i.e 10.25 % i.e. 10.25%
i.e . 9.50% I .e. 10.00 %

~ 33 ~
Loan above Rs 200 Lacs
> 5 Years to 10 >10 Years to 15 >15 Years to 25
Tenor Upto 5 Years
Years Years Years
Fixed N.A. N.A. N.A. N.A.
BPLR-1.75% BPLR-1.25% BPLR-1.00% BPLR-1.00%
Floating
i.e. 10.00% i.e. 10.50% i.e. 10.75% i.e. 10.75%

BPLR = 11.75% with effect from 01.07.2013

* Interest rates subject to revision from time to time

Processing Charges
0.50% of loan amount subject to a maximum of Rs.15000/- plus service tax as
applicable

 50% of the processing charges plus service tax as applicable at the time
of application
 50% of the processing charges plus service tax as applicable on
acceptance of sanction

The Processing charges have been waived under the festive offer till 14th Feb,
2010

Prepayment Penalty
No prepayment penalty if the loan is adjusted by the borrower from his own
verifiable legitimate sources of income or genuine sale. However 2% charged
on an average o/s. balance of last 12 months if loan is closed on take over by
other banks/financial institutions.

Insurance

 Building insurance mandatory

 Personal accident coverage (incase of death)
 Life insurance (Preferably SUD Life – Ashiana Suraksha Plan)

GUARANTEE
Third party guarantee is not mandatory.

~ 34 ~
Documents Required for Union Home
Completed application form
· 2 Passport size photograph of each applicants
· Proof of income, salary certificate, Income tax returns etc.
· Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving License
· Proof of Residence – Recent Telephone Bill/ Electricity Bill/ Property tax
receipt/ Passport/ Voters ID /Bank Account statement/passbook for the
previous six months.
· Proof of business address in respect of businessmen/ industrialists
· Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance
certificate, Land/ Building Tax paid receipt etc. (as applicable and subject
to satisfaction report from our empanelled lawyer)
· Copy of approved plan and approval from the Local Body
· Original NOC under the Provisions of ULC Act
· Copy of the Order permitting Land Conversion in case of conversion of
Agricultural land
· Non Encumbrance Certificate for 30 years
· Copy of the land tax receipt/building tax receipt
· Copy of the Allotment letter of Housing Board/Builder/Co-op. Society
· Affidavit

6. Union Miles

Union Miles Scheme is offered to individuals /firms for vehicle finance for their
personal use.

Eligibility

 Individuals above 18 years of age

 Permanent employee of Central/State/Defence/Police Force/Public or
Joint Sector Undertaking/reputed firms/ established Educational Inst.
 Professional/Businessmen having regular income.
 Borrower has at least minimum services to liquidate the loan 1 year prior
to retirement.

~ 35 ~
  Firms / Companies.
 Min 40% marks as per investment grade scoring chart

Purpose

 For Purchase of new two/four wheelers, for personal or professional use

 Second hand vehicles upto 3 years old also eligible.

Quantum
Four Wheeler- 4 times the net annual income as per ITR/salary slip subject to a
maximum loan of Rs 40 lacs for new vehicle and Rs 10 lacs for old vehicle

Two Wheeler- 4 times the net annual income as per ITR/salary slip
subject to a maximum loan of Rs 1 lacs for new vehicle

Margin

 15% of on road price (Ex-Showroom + registration + Insurance + Road

Tax)
 50% of cost of old vehicle

Repayment

 Four Wheelers - A Maximum of 60 months in Equated Monthly

Installments(EMIs).
 Two Wheelers - A Maximum of 36 months in Equated Monthly
Installments(EMIs).

Under Tie-up
-------------
4 Wheelers - A maximum of 72 EMIs ( Maruti, Hyundai, Tata Motors)

Rate Of Interest (w.e.f. 15.02.2014)

~ 36 ~
 Period Rate Of Interest
4 wheelers (new car)
Upto 3 Years 11.00% p.a
Over 3 Years to 5 Years 11.25% p.a

2 Wheelers
Upto 3 Years 12.75% p.a
Above 3 Years to 5 Years 13.25% p.a

Old Cars(Not Older than 3 Years) 13.25% p.a

* Interest rates subject to revision from time to time

Processing Charges (Excluding Service Tax)

 Two Wheelers Rs. 250

 Four Wheelers Rs. 500 per vehicle for Loan upto Rs. 2 Lacs.
 Four Wheelers Rs. 1000 per vehicle for Loan over Rs. 2 Lacs.

Security

 Hypothecation of vehicle financed by the Bank.

 Bank's lien to be got noted with the transport authorities.

Prepayment Penalty
No prepayment penalty if the loan is adjusted by the borrower from his own
verifiable legitimate sources of income or genuine sale. However , 2% charged
on an average o/s balance of last 12 months if loan is closed on take over by
other bank/financial institutes

Guarantee

Guarantee of the spouse. In case unmarried, third party guarantee with

sufficient means.

~ 37 ~
 7. Union Mortgage Scheme
Scheme for financing against Mortgage of immovable property

Eligibility

Any Individual in the age group of 18-60 years of age owning residential/
commercial property (land/plot/ building) and who are Income-tax assesses
having net monthly income of Rs.10,000/- pm in the case of salaried persons
and an annual income of Rs.1.20 lacs p.a. in the case of non salaried perosns.
Earning family members income can also be clubbed to arrive at the maximum
loan quantum.

Individuals who are not Income Tax assessee are also eligible for this scheme,
subject to production of proof of income acceptable to the Bank.

A minimum 40 points as per investment grade scoring chart.

Purpose

To meet any personal expenditure of varied needs like marriage of children,

higher education, medical expnses or any unforeseen expnses and also as
liquidity finance.

QUANTUM OF LOAN
Metro Urban
Maximum 50 lakh 25 lakh
Minimum 1 lakhs 1 lakhs

Subject to 36 times of gross monthly income of salaried persons

OR

~ 38 ~
2 time the Net annual Income in case of others (Income as per the latest IT
return less taxes payable) whichever is lesser.

Nature Of Facility

Facility can be given in the form of Term Loan or Secured Overdraft. However,
SOD Facility will not be considered for salaried persons

Margin

50% of the fair market value of the property mortgaged as per the latest
valuation report not older than six months from an approved valuer of the Bank.

Fresh valuation at the cost of the borrower(s) once in three years required
during currency of advance.

Repayment

Loan amount together with interest is to be repaid in maximum 84 equal

monthly installments.
Post-dated cheque for the 84 EMIs will be collected up-front.
Subject to closure of the loan with full adjustment prior to the retirement in case
of salaried class.

SOD limit gets reduced by 20% at the time of each annual review / renewal
dates commencing from 5 years prior to attaining 60 years of age.

Rate Of Interest (Latest Rate Of Interest Will Be

Applicable)

- Fixed Rate : 15.25%

- Floating rate : BPLR + 2.50% i.e.14.25%

Present BPLR is 11.75%

* Interest rates subject to revision from time to time

Processing Charges

~ 39 ~
One time fee of 0.50% of the loan amount plus service tax as
applicable collected up front.

SECURITY

Equitable Mortgage of non-encumbered residential house/flat, commercial or

industrial property situated in Metro, Urban & Semi-urban centres only in the
name and possesion of the borrower and/or his/her family member.

OTHER CONDITIONS

No Prepayment penalty if the loan is adjusted by the borrower from his own
verfiable legitimate sources or genuine sale. However, 2% charged on an
average outstanding balance of last 12 months if loan is closed on take over by
other Banks/Financial Institutions.

Union Mortgage Documents Required for Union Mortgage:

1) Completed application form

2) Passport size photograph of each applicant
3) Proof of income, salary certificate, Income tax returns etc.
4) Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving License
5) Proof of Residence – Recent Telephone Bill/ Electricity Bill/ Property tax
receipt/ Passport/ Voters ID
6) Proof of business address in respect of businessmen/ industrialists
7) Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance
certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to
satisfactiory report from our empanelled lawyer)
8) Copy of approved plan and approval from the Local Body
9) Statement of Bank Account/ Pass Book for last 6 months
10) Original NOC under the Provisions of ULC Act
11) Copy of the Order permitting Land Conversion in case of conversion of
Agricultural land
12) Non Encumbrance Certificate for 30 years
13) Copy of the land tax receipt/building tax receipt Copy of the Allotment
letter of Housing Board/Builder/Co-op. Society
14) Statement of assets and liabilities of the guarantor

~ 40 ~
 8. Union Reverse Mortgage(URM)
Union Reverse Mortgage is a scheme to provide a source of additional income
for Senior Citizens of India who own self-acquired and self-occupied house
property in India.

Eligibility

 Number of Borrowers : Single Or Jointly with Spouse in case of a living

spouse.
 Minimum age requirement of the first borrower is 60 year.
 Number of surviving spouses on the date of sanction of loan should not
be more than one
 Minimum Age requirement of the spouse is 55 year.

Purpose Of The Loan

 Up-gradation,renovation,extension and insurance of residental property.

 Medical emergency expenditure for maintenance of family.
 Supplementing pension/other income.
 Repayment of an existing loan taken for the residental property.
 Meeting any other genuine need as may be specified by the borrower and
agreed to by the lender.
 Loan amount Should not be used for speculative, trading and business
purposes

Residence

 The property against which the borrower proposes to raise the loan
should be his/her permanent primary residence.
 The residence (house/flat) should be self-acquired and self owned.
 Proof of owner ship of residence to be established.
 Borrower(s) will be required to inform the bank when they cease to use
the residence as their permanent residence.

~ 41 ~
Quantum Of Loan
The Loan amount along with interest will be 70% of the assessed market value
of the property subject to

 Maximum of Rs. 50 Lacs

 Minimum of Rs. 1 Lac

Margin
30% (inclusive of interest upto maturity)

Security
The loan shall be secured by way of equitable mortgage of residential property.

Tenure
Minimum tenure based on age of borrower as given below :

Age of main Minimum Tenure

borrower of Loan
60-65 Years 15 years
More than 65
10 Years
Years

Disbursement
Monthly payout or a combination of payout and lumpsum
Rate Of Interest

 10.50% p.a.(Fixed)
 Interest to be reset once in every 5 Years

* Interest rates subject to revision from time to time

Processing Fee
0.5 % of the loan amount or Rs. 10000, whichever is lower

Prepayment

 Option to prepay the loan anytime during the tenure of the loan.

~ 42 ~
  NO prepayment penalty

Other conditions:

 The home property is to be measured by the borrower at his cost against

fire, earthquake & other calamities.
 The borrower shall ensure to pay all taxes, charges etc on time.
 Bank reserves the right to pay insurance premium, taxes, charges etc by
reducing loan amount to that extent, if the borrower fail to pay same on
time.
 The borrower shall maintain property in good condition.

List of documents to be attached along with the completed application form:

 Identification proof: UBI account no./ Passport/ I-card issued by
government/ Voter Photo Id card
 Address proof: Latest telephone bill/ electricity bill/ credit card bill
 Birth date proof: Birth certificate/ Passport/ Secondary/ Higher Secondary/
University certificate/ Pension Payment order
 Copy of Title deeds: Title deeds, latest electricity bill paid, latest receipt of
property tax paid
 Photograph of building: Photograph showing full front view of the building
in which the property is located
 Photograph of applicants: Two copies of photograph pasted on the
application form
 Cheque towards payment of processing fees/ Advocate’s fee/ Valuer’s fee

9. Union Smile
Eligibility

Pensioners & salaried class who are drawing their pension/ salary through
Union Bank of India.

Purpose
To meet unforeseen medical expenses, timely payment of dues to State
Electricity Board, Telephone, School fees and water charge and other such
needs.

~ 43 ~
Quantum

Maximum 90% of one month’s pension/salary credited in the account

Margin

10%

Repayment

Entire amount of overdraft and interest should be recovered while crediting next
pension/salary. Otherwise, it can be recovered in installments within a period of
3 months, if so required by borrower.

Rate Of Interest (w.e.f. 01.07.2013)

2% of the amount of overdraft in the account every month.

Interest to be recovered as and when the pension /salary is credited.

* Interest rates subject to revision from time to time

Processing Charges

Nil.

Security

Nil.

Other Conditions

The facility can be allowed on an ongoing basis by liquidating earlier dues.

Pensioners of Union Bank of India are also eligible.

10. Union Top-Up Scheme

Eligibility

Existing home loan borrowers (Standard Assets with regular EMI repayment)

~ 44 ~
who

 Are salaried/professional & self employed, agriculturists or business men

having regular source of Income.
 Have repaid minimum 24 EMIs in Home loan account and Where net
take home pay/monthly income is not be less than 35% of gross monthly
income/earnings after considering all deductions including the EMI of
the proposed TOP-up Loan.

Purpose

To meet any type of expenditure in respect of the House viz. repairs/renovation/

remodeling / furnishing etc.

Nature Of Facility

Term Loan (Floating)

Quantum

 The maximum amount of loan can be extended upto 50% of EMIs repaid
subject to minimum of Rs.50,000/- to Maximum of Rs.5,00,000/-

Rate Of Interest (w.e.f. 01.07.2013)

Union (Original Housing Loan (Original Housing Loan Limit
Top-Up Limit upto Rs.30 lacs) Above Rs.30 lacs)

Term BPLR – 1.75% i.e. 10.00% BPLR –1.00% i.e. 10.75%

Loan (Floating) (Floating)
* Interest rates subject to revision from time to time

Margin
50% [i.e. only 50% of the amount already repaid will be considered as top-up
loan subject to maximum cap].

Processing Charges

~ 45 ~
0.50% of the Top-up Loan amount.

Security
Existing Mortgaged House will continue as security (the house for which
housing loan is extended and is secured by EM.).

Guarantee
Guarantee is applicable wherever guarantee is taken in the existing Home Loan.

Repayment

 The maximum repayment period is of 5 years or left over period for the
borrower before he attains retirement or 60 years of age which ever is
earlier. Term loan is subject to review every year.

Tax Benefits
Accrued interest on Top-up loan is eligible for exemption under section 24 of
Income Tax Act, provided the loan is granted for the purposes of renovation,
additions, repairs or reconstructions of house property. However, if the loan is
granted for furnishing of house, such exemption is not available. (The
Installments towards repayment of Principal is not eligible for exemption under
Income Tax).

List of documents
· Completed application form
· Passport size photograph of the applicant
· Estimate/quotation towards repairs/renovation/furnishing
· Latest salary slip/IT Return
· Latest salary slip/IT Return of the guarantor, if any

~ 46 ~
~ 47 ~
Meaning of Research:
Research is a diligent and systematic inquiry or investigation into a subject in
order to discover or revise facts, theories, applications etc.

Meaning of Methodology:
Methodology is the system of methods followed by a particular discipline.

Research Methodology:
Research methodology is a methodology for collecting all sorts of information
& data pertaining to the subject in question. The objective is to examine all the
issues involved & conduct situational analysis. The methodology includes the
overall research design, sampling procedure & fieldwork done & finally the
analysis procedure. The methodology used in the study consistent of sample
survey using both primary & secondary data. The primary data has been
collected with the help of questionnaire as well as personal observation book,
magazine; journals have been referred for secondary data. The questionnaire
has been drafted & presented by the researcher himself.

Objectives:
1. To study about the comparative advantage of various retail loans offered
by UBI
2. To make a comparative study of with respect to other public sector banks
3. To study customers perception of UBI about the retail loans offered by
UBI

Methods of Data Collection:

There are two methods of data collection viz. Primary and Secondary. Here,
Collection of data is done by Secondary Data & through Questionnaires (i.e.,
Primary data was collected through Questionnaire).

~ 48 ~
Sample Size:
Sample of 200 people was taken into study, and their data was collected

Sampling Technique:
To study the Project, a Simple Random Sampling technique is used.

Area of Scope:
Sasaram

Methodology Used:
Since the research carried out for this project is comparative in nature, the study
of various retail schemes of the selected banks were required for comparing
them with the schemes of the UBI. The data collection was done by personal
interview or direct observations. At the same time, related articles, newspapers,
magazines, in-house journals of banks, etc were referred. The information on
the project under consideration was obtained by the bank employees and
officials. Also I went through various files and the official correspondence of
the bank for better understanding the topic under the study.

~ 49 ~
~ 50 ~
Meaning of Analysis:

Data analysis involves the study of relationship and/or degree of association

among several variables. Analysis is nothing but ordering of data for obtaining
answers to research questions. It is the breaking down of data and ordering
them in such a way so as to obtain a meaningful answer to the research
question. The tables/diagrams given below clearly explain our analytical
section.

Meaning of Interpretation:

Data interpretation can be defined as applying statistical procedures to analyze

specific facts from a study or body of research. It refers to the techniques of
drawing inferences from an analytical study of collected data.

Interpretation of data is done by using statistical tools like tables, Pie diagrams,
Bar graphs, and also using quantitative techniques to derive some meaningful
information. The following description, tables and interpretation helped to make
an analysis of my study.

Classification & Tabulation of data:

The data thus collected were classified according to the categories,comparitive

tables & the summary tables were prepared.

Statistical tools used for analysis:

~ 51 ~
Out of the total respondents, the respondents who responded logically were
taken into account while going into statistical details & analysis of data. The
tools that have been used for analyzing data & inference drawing are mainly
statistical tools like percentage, ranking, averages, etc. As per questionnaire and
market surveys I have find out different responses from different people.
According to their responses I analyze the findings and draw certain remarks.

Comparison of UBI’s Retail Loans with Other

Banks
Below is the comparison between different retail loans provided by Union Bank
of India (UBI) with retail loans of State Bank of India (SBI), Punjab National
Bank (PNB) and Bank of India (BOI). Each loan of UBI has been compared
with the similar loan provided by other banks. For e.g. Education loan of UBI is
compared with education loan of SBI, PNB and BOI.

Tab: 1 Home Loan Comparison

UBI SBI PNB BOI

21yrs and 18 yrs and 18 yrs and 18 yrs and
Eligibility above above above above

300 lacs No such No such Min 1 lac to

Maximum maximum maximum 300 lacs
maximum10 limits for new limits for new Maximum(Ur
lacs for repair construction/pu construction/p ban)
rchase urchase

Amount Loan amount Loan amount * No

subject to Subject to Minimum
banks terms banks terms Limit for
and condition. and condition. Rural / semi
urban centers

Max.20 lacs Max.20 lacs

~ 52 ~
 for repairs. for repairs.

Max.20 lacs Max.30 lacs

for purchase for purchase
of land. of land.

Max.2 lacs for Max.1 lac for

furnishing. furnishing.

Upto 30 lacs Upto 75 lacs Fixed Rates Floating

9.75% (fixed) 1st Year – Rates
8%(Fixed)
Above 30lacs Upto 20 lac: Upto 30 lac:
nd rd
and upto 200 2 & 3 Year - Upto 5 yrs: Upto 5 yrs:
lacs 9%(Fixed) 9.25 8.75
10.75%
(Fixed) After 3 yrs rate Above 5 & Above 5 &
may be fixed upto 10 yrs: upto 10 yrs:
or floating as 10.00 9.00
Above 200 per the
Interest lacs borrower’s Above 10 & Above 10 &
choice. upto 20 yrs: upto 20 yrs:
* Interest Upto 5 yrs 10.50 9.25
rates subject BPLR-1.75% In Case of
to revision (floating) Floating rate: Above 20 yrs Above 20 yrs
from time to SABR – 2.5% & upto 25 yrs: & upto 25
time > 5 yrs to 10 10.75 yrs: 9.50
yrs Fixed rate:
BPLR-1.25% SABR-.75% Above 20 lac: Above 30lacs
(Floating) to 50 lacs:
Fixed interest Upto 5 yrs:
> 10yrs to 25 rate shall be 10.00 Upto 5 yrs:
yrs subject to 9.50
BPLR-1.00% force-majeure Above 5 &
clause.(SBAR upto 10 yrs: Above 5 &
= 11.75%p.a.) 10.25 upto 10 yrs:
9.75
Above 75 lacs
Above 10 &

~ 53 ~
Floating Rates upto 20 yrs: Above 10 &
linked to 10.75 upto 20 yrs:
SABR 10.00
Above 20 yrs
& upto 25 yrs: Above 20 yrs
11.00 & upto 25
yrs: 10.25
Floating
Rates Above 50
lac:
Upto 20 lac: Upto 5 yrs:
Upto 5 yrs: 10.25
8.75
Above 5 &
Above 5 & upto 10 yrs:
upto 10 yrs: 10.50
9.00
Above 10 &
Above 10 & upto 20 yrs:
upto 20 yrs: 10.75
9.25
Above 20 yrs
Above 20 yrs & upto 25
& upto 25 yrs: yrs: 11.00
9.50

Above 20 lac:
Upto 5 yrs:
9.50

Above 5 &
upto 10 yrs:
9.50

Above 10 &
upto 20 yrs:
9.75

~ 54 ~
 Above 20 yrs
& upto 25 yrs:
10.00
Upto 200 lacs Upto 75lacs 25% of the For Loan
20% 20% cost of upto Rs.10
construction Lacs – 15%
Above 200 Above 75 lacs of house or
Margin
lacs 35% 25% purchase of
house/flat. For Loan
over Rs.10
Lacs – 20%
Max 25 yrs Maximum 25 In Case Of Maximum 20
for new years New years.
purchase Purchase:
Max 10 yrs OR
for repair. 25 years or
Up to the age before the
of 70 years (the borrower
age by which attains the age
the loan should of 65 years.
be fully repaid)
Repayment of the In Case of
borrower, Repair:
whichever is
early. 10 years.

0.50% of loan Upto 5 lacs: For loans upto For loans

amount 1000/- Rs. 300 lacs = upto Rs.30
subject to 0.50% of the lacs One time
maximum of Above 5 to 10 loan amount @ 0.55% of
15000/- plus lacs: 2000/- with a cap of loan amount
Processing service tax Rs. 20,000/- min. Rs.
Fees Above 10 to 20 3000/- and
lacs: 5000/- max.
For loans Rs.10000/-
Above 20 to 50 above Rs. 300
lacs: 7000/- lacs =0.90%
of the loan

~ 55 ~
 amount For Loan
Above 50 lacs over Rs.30
to 1 cr: 8000/- Documentati Lacs upto
on Charges: Rs.50 lacs –
Above 1cr to 5 Rs.1350/- + One time flat
cr: 10000/- Service tax & Rs.15,000/-
Education
Above 5cr: Cess
20000/- For Loan
over Rs.50
Lacs upto
Rs.1.00 crore
– One time
flat
Rs.20,000/-

Loans over
Rs.1.00 crore
– One time
flat
Rs.25,000/-

Loans over
Rs.3.00
crores – One
time flat
Rs.50,000/-

For
Partnership
firms &
Corporate
Borrowers –
Processing
charges will
be double
that of

~ 56 ~
 applicable to
individuals

For Rural
areas –
Processing
charges will
be 50% that
of applicable
to individuals
in respect of
loans availed
by borrowers
from rural
areas from
the Rural
Branches.

In eligibility aspect UBI is the least flexible of all it requires 3 yrs more for
being eligible for getting the loan. The maximum amount given under the
scheme is less than SBI & PNB and for repairs it is 10 lacs lesser than PNB and
BOI and far lesser than SBI. For furnishing UBI gives top-up scheme. UBI has
highest interest rate of all the four selected banks. Up to 200 lacs UBI is most
flexible in margin aspect but above 200 lacs UBI has highest margin. In
repayment BOI is the least flexible giving the lowest term where as UBI is at
par with other two banks. Up to 2 lacs UBI and PNB has lowest processing fees
but above 2 lacs SBI has lowest processing fees.

Tab: 2 Education Loan Comparison

UBI SBI PNB BOI
For studies in For studies in For studies in For studies in
India – India- India- India-
Up to Rs. 10 lacs Up to Rs. 10 lacs Up to Rs. 10 lacs
Quantum Up to Rs. 10
lacs
For studies For studies For studies

~ 57 ~
 For studies abroad – abroad – abroad –
abroad – Up to Rs. 20 Up to Rs. 20 Up to Rs. 20
Up to Rs. 20 lacs lacs lacs
lacs
For Male For Male Repayable in Upto Rs.4.00
Students: Student : less than 03 lacs –
Up to Rs. 4.00 Up to Rs. 4.00 years: 2.50% below
lakhs:11.75% lakhs: 11.25% Loan upto Rs.4 BPLR.,
lac: BPLR – Min. 9.50%
Above Rs. 4.00 Above Rs. 4.00 0.50% p.a.
lakhs upto lakhs upto (i.e. 10.50%)
Rs.7.50 lakhs: Rs.7.50 lakhs : Above Rs.4.00
12.50% 12.75% Loan over Rs.4 lacs :
lac: BPLR + upto Rs.7.50
Above Rs. 7.50 Above Rs. 7.50 0.25% lacs – 2.00%
Interest lakhs :12% lakhs :11.75% (i.e. 11.25%) below BPLR,
Min. 10.00%
* Interest For Girl For Girl Repayable in 03 p.a.
Students: Students: years and
rates subject 0.50% 0.50% above: Above Rs.7.50
to revision concession on concession on lacs:
from time to above rates above rates Loan upto Rs.4 1.25% below
time lac: BPLR – BPLR, Min.
1.00%+0.50%T 10.75% p.a.
P(i.e. 10.50%) Int. Concession
of 0.50%p.a. for
Loan over Rs.4
lac: BPLR- Woman
0.25% + Beneficiaries
0.50%TP for limits upto
(i.e. 11.25%) Rs.50,000/- and
1% for limits
over
Rs.50,000/-
No margin for No margin for No margin for No margin for
loans up to Rs. loans up to Rs. loans up to Rs. loans up to Rs.
4.00 lacs 4.00 lacs . 4.00 lacs . 4.00 lacs .

For loan above For loan above For loan above For loan above
Margin 4 lacs: 4 lacs: 4 lacs: 4 lacs:

5% for inland 5% for inland 5% for inland 5% for inland

studies and studies and studies and 15% studies and 15%
15% for studies 15% for studies for studies for studies

~ 58 ~
 abroad. abroad. abroad. abroad.
Repayment Repayment Repayment Repayment
holiday: holiday: holiday: holiday:

Course period + Course period + Course period + Course period +

1 year 1 year 1 year 1 year

OR OR OR OR

6 months after 6 months after 6 months after 6 months after

job placement, job placement, job placement, job placement,
whichever is whichever is whichever is whichever is
Repayment earlier. earlier. earlier. earlier.

Maximum Maximum Maximum

repayment repayment repayment
duration:5-7 duration:5-7 yrs. duration:5-7
yrs. yrs.
Extension of
time for
completion of
course may be
permitted for 2
yrs.
Nil Nil For study in For study in
india : Nil india:Nil
* Deposit of
For Study For studies
Rs. 5000/- for
abroad:- @ abroad:
education loan
0.50% with a Rs.1000 for
for studies
maximum of issuance of
abroad which
Rs. 5000/- sanction letter
will be adjusted
(refundable on for obtention of
in the margin
Processing availment of the VISA.
money
Fees loan amount) Amount
refundable on
availing loan.

Document/Stam
p charges:At
Actuals

Change of
Institution:

~ 59 ~
 Studies in
india:Rs.250/-

Studies Abroad:
Rs.500/-

Xerox
Charges:
Loan upto 2
lacs: Rs.25/-

Loan over 2
lacs: Rs.100/-
plus copying
charges of Rs1/-
per page

In Quantum, UBI is at par with other banks where as in interest UBI is charging
the highest rate of interest of all the banks and BOI charges least interest up to 4
lacs. Above 4 lacs to 7.5 lacs BOI charges the least interest, then comes PNB
and then UBI and SBI charges the highest rate of interest of all the four banks.
And above 7.5 lacs UBI has highest rate of interest among 4 selected banks. In
case of margin and repayment all banks stand at par with each other. In case of
processing fees, UBI is flexible of all. It charges no processing fees for loan
taken for studies in India or abroad where as BOI charges the maximum fees.

Tab: 3 Auto Loan Comparison

UBI SBI PNB BOI
For Four For Four For For
Wheeler: Wheeler: Individuals: Individuals:
Quantum
4 times of the No Upper Limit. 25 times of the For Indian make
net annual Maximum loan net monthly vehicles – Rs.25

~ 60 ~
 income amount of 2.5 times income lacs
the net annual
income can be
OR sanctioned.
OR For imported
vehicles – Rs.75
Rs.40 lacs Less than Rs.15 Rs. 25 lacs lacs.
whichever is lacs for old whichever is
lower & Rs.10 vehicles lower OR
lacs for old
vehicles For Business 24 times of the
Concerns: net monthly
For Two income
Wheeler: No ceiling on whichever is
loan amount less
4 times the net
annual income For Business
subject to a Concerns:
maximum loan Rs.100 lacs
of Rs.1 lac for
new vehicle
4 wheelers (new * First year: 8% Interest will be For Loans Upto
car): Fixed charged @ 10 lacs:
11.00% p.a.
Upto 3 Years: * For 2nd & 3rd New Vehicles
11.00% year: 10% Fixed Repayment up
to 3 yrs:
Over 3 Years to * For 4th & 5th 2.25% below
5 Years: 11.25% year: 0.50% BPLR, Min.
below SBAR 9.75% p.a.
Interest 2 Wheelers:
Upto 3 Years: * For 6th & 7th Repayment over
* Interest 12.75% year: 0.25% 3 years : 1.75 %
rates subject below SBAR below BPLR,
to revision Above 3 Years Min. 10.25%
from time to to 5 Years: p.a.
13.25%
time Second hand
Old Cars(Not vehicles : 1.25%
Older than 3 below BPLR,
Years): 13.25% Min.10.75% p.a.

For Loans
Above Rs.10.00
Lacs :

~ 61 ~
 New Vehicles
Repayment upto
36 months:
1.25% below
BPLR, Min.
10.75% p.a.

Repayment over
3 years: 0.75%
below BPLR,
Min.11.25% p.a.

Second hand
vehicles: 0.25%
below BPLR –
11.75% p.a.
For New New / Used For New Individuals:
Vehicles: vehicles: Vehicles: 20%
For new
15% of on road 15% of the on vehicles:
price (Ex- the road price. For Old
Showroom + Vehicles: 30% Upto Rs.2.00
registration + lacs - 5%
Insurance +
Road Tax) Rs.2.00 lacs to
Rs.10.00 lacs -
10%
For Old
Vehicles: Rs.10 lacs to
Margin Rs.25 lacs - 15%
50% of cost of
old vehicle Above Rs.25.00
lacs - Min. 25%

For Corporate
entities/firms,
etc.:
Min. 25%

For second
hand vehicles:
Min. 30%
Repayment Four Wheelers: For Salaried: For New For

~ 62 ~
 Vehicles: Individuals:
A Maximum of Maximum of 84
60 months months Maximum of 84 For new
months vehicles
Two Wheelers: For Self- 4 wheelers:
employed & For Used
A Maximum of Professionals: Vehicles: imported
36 months vehicles-Max. 7
Maximum 60 Maximum 60 years.
Under Tie-up: months months
4 wheelers -
4 Wheelers - A Indian vehicles
maximum of 72 – 6 years.
EMIs ( Maruti,
Hyundai, Tata 2 wheelers –
Motors) max. 5 years.

For Corporate /
Firms, etc.:
Max. 5 years.

For second
hand vehicles:
Max. 3 years.
Two Wheelers: 0.50% of Loan 1% of the loan For
Rs. 250 amount and to amount, with a Individuals:
be paid up front. maximum of
Four Wheelers: Rs.6,000/- Upto
Rs.500 upto Minimum: Rs. (exclusive of Rs.25,000/- :
Rs.2 Lacs. 500/- service tax & Rs.1,000/-
education cess)
Rs.1000 over Maximum: Rs. Above
Rs.2 Lacs. 10,000/- Rs.25,000/- upto
Processing Rs.25 lacs:
Fees * Service tax is 1.10% of loan
not included in amount,
the processing Min.Rs.1,500/-
fees. & Max.
Rs.5,000/-

Above Rs.25
lacs : 0.25% of
the loan amount

~ 63 ~
 Max.15,000/-

For Business
Concerns:
Double of
individual
charges

For Rural
areas:
Half of
individual
charges

In case of Individuals, PNB gives the least limit of maximum amount of loan
i.e. 25 lacs where as if overall scenario is taken UBI gives the least limit of
maximum quantum. In case of interest, UBI charges the maximum interest and
SBI charges the least interest. In margin aspect up to 10 lacs BOI is the most
flexible requiring the least amount of margin where as above 10 lacs UBI, SBI
and BOI is at par, and PNB requires highest margin. And above 25 lacs BOI
requires highest margin. For second hand vehicle UBI requires highest margin.
UBI is least flexible in repayment period. UBI has the least processing fees.

Tab: 4 Pensioners Loan Comparison

UBI SBI PNB BOI

Upto Rs. A maximum of Maximum Regular
1,00,000/- 12 months Rs.1,50,000/- or Pensioner-
pension with a amount equivalent Unsecured
Or ceiling of to 18 months' net clean:10 times of
Rs.1,00,000/- pension, whichever monthly pension
is lower.
Quantum 12 times the (maximum loan
monthly amount Rs.1 Lac)
For Pensioners
pension,
above the age of
whichever is
75 years, the
less. Family
maximum
Pensioner-

~ 64 ~
 amount of loan 10 times of
would be monthly pension
Rs.70,000/- (maximum loan
amount
Rs.50000)
A fixed 0.50% above Disbursement Fully Secured
interest rate of SBAR Floating through OD Advances: @
13.75% i.e. 12.75% p.a. account: 0.50% below
(Fixed) BPLR, Min.
BPLR+0.50% 11.50% p.a.
(i.e. 11.50%)
Interest Clean/Unsecured
Advances: @
* Interest (Disbursement BPLR, Min.
through Demand 12.00% p.a.
rates subject Loan andTerm
to revision Loan Account): For Senior
from time to Less than 3 yrs- Citizens (for
time BPLR+0.25%(i.e. loans upto
11.25%) Rs.50000/-) at
1.25% below
3 yrs and above- BPLR, presently
BPLR- 10.75 % p.a.
0.25%+0.50% TP
(i.e. 11.25%)
25% in case of Nil Nil Nil
Deposit
Receipts / NSC
/ Bonds issued
by Government
of India /
Margin Financial
Institutions.

50% in case of
Shares &
Debentures.
12 – 36 EMIs 60 Equated Max.36 EMIs For
in case of Monthly Clean/unsecured
Demand Loan Instalments advance :
Repayment repayable in (EMIs) – if age *60 EMIs in
Installments of Pensioner at exceptional Max.36 EMIs
the time of loan cases. w.e.f. one month

~ 65 ~
 sanction is upto after first
Above 36 to 48 70 years disbursement..
EMIs in the
case of Term *60 EMIs in
Loan 48 Equated exceptional
Monthly cases.
Instalments
(EMIs) – if age Secured
of Pensioner at advance:
the time of Max. 60 EMIs
sanction is w.e.f. one month
between 70 – after 1st
72 years disbursement.
Nil As per bank’s Nil A) No processing
norms charge for Senior
Citizens (60
years & above)

B) For others
[after
01.01.2008] one
time @ 1.10% of
Processing loan amount,
Fees Min. Rs.500/-
and
Max.Rs.1100/-

C) Stamp Paper
charges: At
actuals. Loan
Agreement Copy
charges .- As
Applicable
Pledge of The spouse Guarantee of As required by
Deposit eligible for spouse eligible the bank.
Receipts / family pension for family
Shares / should pension to be General security:
Debentures of guarantee the obtained or of Guarantee of
Security corporates of loan or any any other family spouse eligible
good standing, other family member of means for family
NSCs Bonds member pension to be
issued by OR obtained or of
Government of OR any other family
India / a third party member of means

~ 66 ~
 Financial a third party guarantee
Institutions etc. worth the loan acceptable to the OR
amount. Bank.
a third party
Where guarantee
sufficient acceptable to the
security is not Bank.
available,
personal
guarantee of
spouse or a
person who is
the nominee
under pension
scheme is to be
obtained.

In genuine
cases, the Bank
may consider
this facility on
a clean basis.

Declaration is
required from
the spouse who
is eligible for
family pension.

UBI is at par with SBI and BOI but PNB has the highest limit (maximum) for
the loan quantum but for giving loan to pensioner above 75 years it gives the
least.
In interest, UBI charges the highest rate of interest where as PNB and BOI
charges least interest for secured advances. Loans upto 50000 BOI charges the
least interest. In case of margin, UBI is the only bank that requires margin. In
case of repayment, again UBI and PNB are least flexible where as SBI is the
most flexible. For secured advances BOI gives highest repayment period. PNB

~ 67 ~
and UBI do not charge any processing fee where as BOI charges the highest
processing fees.

Tab: 5 Mortgage Loan Comparison

UBI SBI PNB BOI

In metros: Min: Rs.25,000/- Min: 1 lakh For
Min: 1 lakh Max: Rs.1 crore. Max: 100 Lakhs agriculturists
Max: 50 Lakhs min: 0.5 Lac
max: 2.00 Lac
In Urban: •Subject to 24
Min: 1 lakh times the net For Others :
Max: 50 Lakhs monthly income proprietorship
of salaried Firm/Partnership
*Subject to 36 persons (Net of firm/
times of gross all deductions Individuals/
monthly income including TDS) min: 1.00 Lac
of salaried max: 50.00 Lacs
Quantum persons OR
Company :
OR •2 times the net Prop./Partnership
annual income of / firm/company
2 time the Net others (income as
annual Income in per latest IT min: 1.00 Lac
case of others return less taxes max: 100.00
(Income as per payable) Lacs
the latest IT
return less taxes
payable)
whichever is
lesser.
Fixed Rate: Term Loan Repayement For
Interest 15.25% 1.00% above period loans/overdrafts
* Interest SBAR. Less than 3 : 1% over BPLR,
rates Floating rate : i.e.13.25% p.a. yrs: 13.00% p.a.
subject to BPLR + 2.50% Interest
revision i.e.14.25% Floating for loans BPLR+1.75%(i. concession for
from time to upto Rs.1.00 e. 12.75%) woman
Present BPLR is crore. beneficiaries
time 11.75% 3 yrs and 0.25% p.a.[All

~ 68 ~
 In other cases above: borrowers to be
1.25% above women]
SBAR BPLR
i.e.13.50% p.a. +1.75%+0.50%
Floating (w.e.f. TP(i.e. 13.25%)
01.01.2013)
50% of the fair 60% of the Nil Salaried
market value of market value of Employees:
the property. your property. 30%*
Margin Others: 50% *

*On value of
property
Max 84 EMIs. Max 60 EMIs, Max 84 EMIs. Max 96 EMIs.

Post-dated upto 120 months OR

cheques fot the for salaried In case of
84 EMIs will be individuals with upto the age of agriculturists:
collected up- check-off 65 years which The repayment
front. facility. ever is earlier. will be related to
the generation of
Repayment *Subject to You could opt to farm income
closure of the divert any from crops and
loan with full surplus funds other subsidiary
adjustment prior towards activities.
to the retirement prepayment of
in case of salaried the loan without
class attracting any
penalty.
One time fee of As per bank’s in case of Accounts
0.50% of the loan norms general repayable as
amount plus overdraft per Stipulated
service tax as limit: instalments:
applicable
collected up Upto Rs. - One time @
Processing front. 25,000/- - NIL 1% of Loan
Fees amount.
Above Rs. Min.Rs.3000/-
25,000/- & upto and max.
Rs. 2 Lac - Rs. Rs30000/-.
270/- + Service
Tax &
Education Cess Overdraft Limit

~ 69 ~
 ( not reducible
as per
Above Rs. 2 repayment
Lac - Rs. 225/- schedule ) :
per lac or part
thereof + - 0.25% of the
Service Tax & sanctioned limit,
Education Cess Min. Rs.3,000/-
and Max.
Rs.10,000/- on
Upfront fees annual basis.
(in case of term
loan): - Documents
charges,
0.90% of the advocate fee,
loan amount architect fee etc.
(subject to a on actual basis.
maximum of
Rs.45,000/-) + Loan agreement
Service Tax & copy charges :
Education Cess As applicable
For Partnership
firms/Corporates
Documentation –
charges: Processing
Rs.900/- + charges will be
Service Tax & double that of
Education Cess applicable to
individuals

For Rural areas

–Processing
charges will be
50% that of
applicable to
individuals in
respect of loans
availed by
borrowers from
rural areas from
the Rural
Branches.

~ 70 ~
 Additional
charges for
deviations from
the scheme
norms –One time
25% of the
applicable
processing
charges min.

Rs.500/- max.
Rs.3000/-

Equitable As per bank’s Non- Equitable/Legal

Mortgage of non- extant encumbered Mortgage charge
encumbered instructions. residential over property in
residential house/ flat or the name of
house/flat, Commercial or applicant or
commercial or Industrial his/her spouse or
industrial property (in the parents or third
property situated shape of party.
Security in Metro, Urban building/
& Semi-urban industrial shed) *Agriculture
centres only in - self occupied land is not
the name and or vacant. acceptable as a
possesion of the security for this
borrower and/or loan.
his/her family
member.

In case of quantum, SBI is the most flexible starting loan with minimum
25000/- to maximum Rs. 1 crore where as UBI is the least flexible. It does not
give loans for less than Rs. 1 lac and maximum limit is also 50% lesser than
with other banks. It only gives Rs. 50 lacs where as other banks give loan up to
Rs. 1 crore. UBI charges highest rate of interest than other banks. UBI stands at
3rd position among the four banks in respect of margin. In repayment, BOI gives
highest repayment period and SBI gives the least repayment period. Processing
fees is least in UBI.

Tab: 6 Personal Loan Comparison

~ 71 ~
 UBI SBI PNB BOI
6 months net In Metro & Min: Maximum
salary not Urban Rs.50,000/- quantum of
exceeding Rs. Centers: Max: Rs.4 lacs advance is
1 lac for Min: Rs. Rs.10.00 lakhs,
salaried class. 24000/- Or depending upon
Max: Rs. 10 the income.
lacs 20 times
monthly net
For others, salary,
50% of annual In Rural & whichever is
income as per Semi-Urban lower,
last 2 IT centers: depending upon
Quantum returns (not Min: the repaying
exceeding Rs.1 Rs.10000/- capacity.
lac.) Max: Rs. 10
lacs

Maximum: 12
times Net
Monthly
Income for
salaried
individuals and
pensioners.
15% 4.25% above For public: Fully Secured:
Concession in SBAR i.e. 11.50%
the rate of 16.00% p.a. i. Individuals
interest can be whose salary is Clean /
considered by being disbursed Unsecured:
Regional Head through our 12.25%
Interest in case of branches as also
group those For Senior
* Interest borrowers employees who Citizens aged 60
rates subject are availing the years & above
to revision loan under [for loans upto
from time to check-off Rs.50,000/-
facility: 13% ]:10.75%
time
Financing
ii. For others: Secured under
14% tie-up
arrangements:
11.50%

~ 72 ~
 For Defense
Personnel Notes: Interest
only: concession in
respect of
i. Individuals advances to
whose salary is woman
disbursed beneficiary
through under(i) & (ii)
branch:12.75% above: 0.50% p.a.

ii. For
others:13.75%
One Guarantor Nil Suitable Hypothecation of
having means guarantee the Equipment
equivalent to acceptable to purchased out of
the loan the Bank. Bank Finance
Security amount,
Hypothecation
Of Asset
wherever
applicable.
In 36 EMIs. In 48 EMIs In 60 EMIs 12 to 60 months,
commencing one
OR month after full
disbursement/
remaining three months after
Repayment period of first disbursement,
service, whichever is
whichever is earlier.
earlier.

Rs. 100 upto 2- 3% of the Upfront fees: 1.10% of loan

Rs. 10,000/- loan amount. 1.8% of the amount.
loan amount +
Service Tax & Min. Rs.1,000/-
Rs. 250 upto Education Cess Max. Rs.5,000/-
Processing Rs. 50,000/-
Fees Documentation
charges:
Rs. 500 above Rs.270/- upto
Rs. 50,000 Rs.2 Lac +
Service Tax &
Education Cess

~ 73 ~
 Rs.450/- over
Rs.2 Lac +
Service Tax &
Education Cess

UBI gives the least and very low amount for personal loan i.e. Rs. 100000/-
where as BOI and SBI give loan up to Rs. 1000000/- which is 10 times higher.
SBI has highest rate of interest where as BOI has least interest rate. UBI is the
least flexible among the four bank in case repayment. UBI charges least
processing fees.

Tab: 7 Loan For Medical Practitioners Comparison

UBI SBI PNB BOI
Nomenclat Union health Doctor plus Professional loan Dhanvantri
ure plus suvidha
An amount Maximum of Rs Metro/Urban Maximum upto
equivalent to 5 crores of medical 50 lacs
75% of the which a sub practitioner:Rs.5
equipment cost ceiling for lac
and other Working Capital
Assets to be limits at other
financed. professionals:
*10% of total Rs.5 lac
Quantum loan amount for
upto Rs 1 crore S.urban/Rural
area
*5% of total medical
loan amount for practitioners:Rs.1
above Rs 1 crore 0 lac
other
professionals:
Rs.5lac
Interest 12.50% (fixed Based on score General Scheme Based on
for individuals obtained on bank’s scoring
as well as simplified credit Loans for less model.
* Interest others) scoring model than 3 yrs:
rates

~ 74 ~
subject to BPLR(i.e 11%)
revision
Loans for 3 yrs
from time to
and
time above:BPLR+0.5
0%TP(i.e
11.50%)

Gramin
Chikitsak

For loan upto 20

lac: 10%

For loan above

20 lac: 10.25%
Minimum 25% Upto Rs 5 lacs: Nil up to Ranging upto
of cost of 10% Rs.25000/-. 20% based on
Margin equipments and credit limit
other assets to Above Rs 5 25% Above Rs.
be financed. lacs: 15% 25000/-.
Maximum 7 Maximum Term Loan Term Loan
years including period up to 7 Loans up to repayable in
initial years Rs.50000/- 48 EMIs in
moratorium Maximum months maximum 7
period of 3/6 moratorium 12 years
months months, except Loans beyond
Repayment for construction Rs.50000/- 60
purpose, for months
which
moratorium can Working
be upto 24 Capital loans are
months renewable every
year.
0.50% of the 0.5% of Loan As per bank’s Nil
loan amount Amount extant instruction
Processing Minimum Rs .
Fees 500; Maximum
Rs 50,000
Hypothecation Primary Security Hypothecation/M Hypothecation
of equipment / Hypothecation ortgage of the of equipment /
Security items purchased of Assets goods items purchased
out of Bank financed by the purchased/create out of Bank

~ 75 ~
 finance. Bank d with the finance.
amount of loan.

Collateral Collateral
security 50% of Security: Collateral
loan amount. No need for security by way
tangible of immovable
collateral properties or
EM of premises security for loan acceptable third
in case the loan amounts upto Rs party guarantee
is for acquiring 15 lakhs for in case of
premises. Allopathic advances above
professionals Rs. 25000/-.
and upto Rs 10
lakhs for other
professionals
(Homeopathic,
Ayurvedic,
Unani etc)

Above Rs 10/15
lakhs: Tangible
collateral
security of at
least 25% and
Personal
guarantee of
promoters

PNB gives least loan quantum i.e. up to Rs. 5 lacs. UBI charges the highest rate
of interest, only PNB gives interest concession for grameen chikitsak. UBI
requires highest margin among all where as SBI requires lowest margin. PNB
has the highest repayment period where as all other 3 banks at par in repayment.
BOI charges no processing fees.

~ 76 ~
 Analysis of Perception of UBI’s Customers
about UBI’s Retail Loans

Q1. On which bank you depend for your regular transaction?

Bank Name Customers Response in %

UBI 45%
SBI 20 %
HDFC 2%
ICICI 8%
Other 25%

Preferred Bank for Regular Transactions

UBI
Customer Response in

SBI
HDFC
%

ICICI
OTHER

Bank Name

~ 77 ~
It has been observed that approximately 45% correspondents are using the
service of UBI for their daily transaction, around 20% of people are using SBI
Bank for their transaction and only 2% & 8% of people are using HDFC &
ICICI Bank service respectively in Ujjain. 20% customers are using other banks
for their regular transactions.

Q2. Are you aware of products & services provided by UBI?

YES 85%
NO 15%

Customer Awarness about Products &Services of UBI

Series1, NO ,
15%, 15%

YES
NO

Series1, YES,
85%, 85%

From the above data it is clear that most of the customers (around 85%) of
Ujjain have the idea about the product & services of UBI, the rest 15% have
the idea about the product they are using.

Q3. If yes are you aware of the Retail Loans of UBI?

YES 80%
NO 20%

~ 78 ~
 Customers Awarness About Retail Loans of UBI

Series1, NO ,
20%, 20%

YES
NO
Series1,
YES ,
80%,
80%

It is clear that most of the people have the idea about the advance products of
UBI. Almost all the 80% people, who have the idea about the loan product, are
the user of UBI product & service.

Q4. If you prefer UBI for taking loan than what influence you to take Loan
from UBI?

Most of the people said that they prefer UBI for taking loan because of the
transparency and the least processing time for any kind of loan product. And it
is easy to get loan from UBI as compared to other banks because less paper
work is required and as it is the fifth largest govt. bank in India and it is easier
for UBI to give loan to people with a longer repayment period.

Q5. Have you ever taken loan from UBI?

YES 60%
NO 40%

~ 79 ~
 % of Persons surveyed who have taken loan from UBI

Series1, NO ,
40%, 40%
YES
NO
Series1, YES ,
60%, 60%

It is observed that 60% of the respondents have already taken the loan from the
UBI. Some of the people from remaining 40% were in the talk with the bank for
taking the loan.

Q.6 Which loan product of UBI you have used?

Types of Loan Customer Response

Home Loan 25%
Educational Loan 21%
Auto Loan 23%
Personal Loan 14%
Other 17%

~ 80 ~
 Loan Taken

Customer Response

HOME LOAN

Types of Loan

From the sample size 25% of people are using the UBI loan product. 25% of
people took home loan from UBI. 21% of people took education loan for their
children, 23% of people took car loan from UBI. Some of the customer took 2
type of loan from UBI like both auto & educational loan and home & car loan.
14% of people took personal loan.

Q7. What do you feel about the services providing by UBI in loan product?

Average 15%
Satisfactory 25%
Good 45%
Excellent 10%

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 Series1, Excellent , Series1, Average,
10%, 10% 15%, 15%

Average

Satisfactory

Good
Series1,
Excellent
Satisfactory , 30%,
30%
Series1, Good ,
45%, 45%

Customer's Perception about UBI's Retail Loan

From this it is clear that the service provided by UBI in its loan product is good
in between the customer. All of them are satisfied with the product provided by
UBI. 45% of people said that the service provided by UBI is good, but only
10% said it is excellent & 25% of people said that it is satisfactory.

Q8. Which features you like most in Loan segments of UBI?

Features Customers Response

Less Paper Work 17%
Attractive Interest Rate 10%
Margin 23%

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Simple And Fast Processing 32%
Longer Repayment Period 18%

Most Liked Features in Loans

LESS PAPER WORK

ATTRACTIVE INTEREST RATE
MARGIN
SIMPLE AND FAST PROCESSING
LONGER REPAYMENT PERIOD

Most of the people like the Margin & Fast Processing of loan. Longer
repayment period was ok but interest was not liked by the customers whereas
response to less paper work was satisfactory.

Q9. Would you prefer any other bank over UBI for taking loans?

Yes 63%
No 37%

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 Chart Depicting % of customers prefering other banks over UBI

YES

Series1, NO , NO
37%, 37%

Series1, YES ,
63%, 63%

When I asked this question to the customers of the UBI I found that 63% of the
respondents would prefer other banks over UBI for taking the loan where as
37% respondents said that they would prefer UBI for taking loans.

Q10. If yes, then which bank would you Prefer?

~ 84 ~
Bank Name Customers Response
SBI 37 %
BOI 21 %
PNB 16 %
OTHER 26 %

Preferred Bank for Taking Loans Over UBI

SBI
Response in %

BOI
PNB
OTHER

Bank Names

It is observed that 37% of the customers prefer State bank of India over UBI
and 21% prefer Bank of India whereas 16% and 26% prefer Punjab National
Bank and other banks respectively.

~ 85 ~
Q11. On what features do you think Other Banks loan schemes are better
than UBI’s loan Schemes?

Features Customers Response

Quantum of loan 6%
Interest 44%
Margin 7%
Repayment Period 26%
Processing fees 9%
Other 8%

Chart depicting % of people Preferring other banks for the following features

Quantum of loan
Interest
Margin

According to the table, interest rates and repayment period are the major
concern due to which customers prefer other banks over UBI. Customers
believe that UBI’s interest rates are more than the other banks. Other than
interest rates, 26% customers said they would consider other banks better than
UBI on the basis of repayment period.

~ 86 ~
On The Basis of comparison of Loan Schemes

~ 87 ~
 Findings of Home Loan Comparison
1. Eligible age for UBI’s home loan is 21 yrs which is more than the other
selected banks. It should be reduced to 18 yrs.
2. UBI has highest interest rate among all the selected banks.
3. Up to 200 lacs UBI has lowest margin but above 200 lacs UBI has highest
margin.
4. In repayment, UBI is at par with SBI and PNB where as BOI has the
lowest repayment period.
5. Up to 2 lacs; UBI and PNB has the lowest processing fees. Above 2 lacs to
30 lacs; SBI has the lowest processing fees among all selected banks.
Above 30 lacs UBI has the lowest processing fees.

Findings of Education Loan Comparison

1. Quantum of loan is same among all selected banks.

2. Up to 4 lacs UBI charges the highest interest where as BOI charges the
least interest. Above 4 lacs to 7.5 lacs BOI charges the least interest, then
PNB, then UBI and then SBI. Above 7.5 lacs UBI charges highest interest
rate among all banks.
3. Margin & Repayment time is same in all banks.
4. In processing fees, UBI is very flexible. It does not charge any processing
fees for any loan whether study in India or abroad where as BOI charges
the highest processing fees.

~ 88 ~
 Findings of Auto Loan Comparison
1. In case of individuals, UBI offers maximum loan of Rs. 40 lacs where as
PNB gives least maximum amount of loan i.e. Rs. 25 lacs. There is no
ceiling in SBI for loan amount. In case of business concerns, SBI and PNB
offers no upper limit for loan amount where as BOI offers maximum loan
of Rs. 100 lacs. In case of old vehicles, UBI offers Rs. 10 lacs and SBI
offers Rs. 15 lacs.
2. In case of interest, UBI charges highest interest among all selected banks
where as SBI charges least among all banks.
3. In case of new vehicle, UBI & SBI requires 15% margin where as PNB
requires 20 % margin, BOI gives flexibility in margin. In case of old
vehicle UBI’s margin is highest i.e. 50%.
4. UBI gives least time in repayment of the loan i.e. 60 months.
5. UBI charges the least processing fees among all selected banks.

Findings of Pensioners Loan Comparison

1. PNB gives maximum amount loan to pensioners but for above 75 yrs it
offers least maximum amount.
2. UBI charges highest interest where as PNB & BOI charges least for
secured advances.
3. UBI is the only bank which requires margin where as other banks do not
require any margin.
4. In case of repayment, UBI & PNB are least flexible where as SBI is most
flexible for secured advances, BOI gives highest repayment period.
5. UBI & PNB do not charge any processing fees where as BOI charges
highest processing fees.
6. Every selected bank requires security as per its norms.

~ 89 ~
 Findings of Mortgage Loan Comparison

1. SBI and PNB offers maximum loan amount i.e. Rs. 100 lacs where as UBI
and BOI offers maximum loan of Rs. 50 lacs but UBI and PNB don’t give
loan below Rs. 1 lakh. SBI has the most flexible loan structure starting
from Rs. 25000/- to 100 lacs.
2. UBI has the option to choose interest rate between fixed and floating but
has the highest interest rate as well among all selected banks. PNB offers
lowest interest rate if the loan is taken for less than 3 yrs.
3. PNB margin is nil where as SBI margin is highest among all banks. UBI
requires 50% margin and BOI requires 30% margin for salaried people and
50% for other applicants.
4. BOI gives highest repayment time. UBI and PNB is at par where as SBI
repayment period is least.
5. Overall UBI processing fees is lowest but up to 2 lacs PNB processing fees
is lowest.
6. All banks requires security for this loan.

Findings of Personal Loan Comparison

1. UBI offers least maximum loan amount i.e. Rs. 1 lac, SBI and BOI offers
highest maximum loan amount i.e. Rs. 10 lacs. BOI offers maximum loan
of Rs. 4 lacs.
2. BOI charges the lowest rate of interest where as SBI charges the highest
rate of interest. UBI charges interest at 15% p.a.
3. SBI needs no security where as other three banks requires hypothecation of
asset purchased by bank finance or guarantor.
4. UBI’s repayment time is the lowest. BOI and PNB gives highest
repayment time.
5. UBI’s processing fees is lowest among all selected banks.

~ 90 ~
 Findings of Medical Practitioners Loan Comparison

1. PNB gives least maximum loan amount where as BOI offers highest
maximum loan amount.
2. UBI interest rate is highest where as PNB gives concession to grameen
chikitsak.
3. SBI’s margin is lowest where as UBI’s margin is highest.
4. PNB has the shortest repayment period and other banks are at par.
5. BOI charges zero processing fees.

On The Basis of Survey among UBI’s Customers

regarding the Loan Schemes

1. It has been observed that approximately 60% correspondents are using

loans of UBI and 40% are not using any type of loan product of UBI in
Ujjain.
2. Customers focus has been mainly on home loan, education loan and auto
loan.
3. It has been observed that approximately 90% of people using UBI’s loan
products are satisfied.
4. It has been observed that major drawback of UBI loans was higher interest
rates.
5. It has been observed that SBI and BOI were the most preferred banks in
Ujjain for taking loans.
6. Interest and repayment period were the major features for which
customers prefer other banks over UBI.

~ 91 ~
~ 92 ~
 Suggestions

 Customer awareness programme is required so that more people should

attract towards advance product.

 Interest rate is the major influencing factor for making purchase decision
for any kind of loan product. UBI should seriously consider the
suggestion of reducing the interest rate to grow in the highly competitive
environment and more so in retail lending.

 Saving Bank Accounts should be attached to the loan accounts so that

automatic recovery can be done by the system if borrower does not pay
installment on time.

 The bank should increase the period for repayment of loan.

 UBI should more focus on Retaining existing customers.

 UBI must take feedbacks of customers regarding features & services.

~ 93 ~
 Suggestions Given by The Customers at The
Time of Survey

➢ There should be more time period for repayment of education loan.

➢ Interest rates should be reduced so that more and more people can avail
lending services of bank.

➢ Education loan should be providing to private college also which is not

under AICTE or any kind of University.

➢ UBI should take steps to solve customer problems immediately.

➢ Bank Personnel’s should be trained, well educated & proper trained to

convince the people about different products.

➢ Loan sanction date should be according to customer convenient.

➢ A customer awareness program should be taking place in rural area.

~ 94 ~
~ 95 ~
 Limitations

Every study or research is conducted under some limits and there are some
restrictions which have some impact on the project.

Limitations of this project are: –

 Coverage: The study aims at covering the retail banking of Union Bank of
India only.

 The study aims at gaining the practical knowledge by taking help of bank
personals. So there might have been tendencies among the personals to
amplify or filter their responses due to time limitation.

 Sample size taken is very small and may not be sufficient to predict the
results with 100% accuracy.

 Research was based on Information from Factsheets and websites.

 Analysis has been conducted as per our knowledge and understanding of

subject.

 All the work was done in limited areas of Ujjain so the findings should not
be generalized.

 Experience: Researcher has less experience in the research field.

~ 96 ~
~ 97 ~
 Conclusion
From the analysis part it can be conclude that customers have a favorable
response towards UBI retail products in Ujjain. The bank has a wide customer
base, so the bank should concentrate on this to retain these customers.

UBI has improved its asset quality tremendously with an excellent coverage
ratio of 93.05%. Healthy asset quality and good coverage ratio reflect prudent
lending practices that are key in rising interest scenario when NPAs and
delinquencies tend to rise. UBI has an excellent technological platform with
100% core banking solution rollout and increased use of electronic mode in
transactions (12% of the total transactions). This helps the bank reduce risk,
improve efficiency and reduce costs significantly. As in FY09 loan UBI’s loan
growth in FY10 was significantly ahead of the system at 23.6%. The bank’s
confidence to grow at significantly higher rate than industry stems from
improving credit demand, robust branch addition plans and various initiative
taken by the management to enhance the capacity of credit growth.

Within a very short period of time the achievement made by UBI is excellent,
what a normal bank cannot expect, but it is being done by UBI. It happens due
to employee dedication towards the organization, fastest growing Indian
economy, & brand image.

To be the largest advance product issuer, UBI should focus on-

· Launch Innovative product

· Customized advance products
· providing adequate staff in branches for better customer services
· Fastest customers problem solving techniques
· Customer retention

Apart from all the above, uBI believe in providing good customer services to
their customers which is a key factor for success in future. The bank will ever
strive in its endeavor to provide services to its customers and enhance its

~ 98 ~
businesses there by fulfilling its vision “To become the bank of first choice in
our chosen areas by building beneficial and lasting relationship with
customers through a process of continuous improvement”

~ 99 ~
 BIBLIOGRAPHY

Sr. No. Details

Magazines & News Papers
01. Economic Times
02. The Financial Express

Web-sites
01. www.unionbankofindia.co.in
02. www.statebankofindia.com
03 www.bankofindia.com
04. www.pnbindia.in
05. www.google.com

~ 100 ~
~ 101 ~
 Questionnaire
Q. On which bank you depend for your regular transaction?

a) UBI
b) SBI
c) ICICI Bank
d) HDFC Bank
e) Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by UBI?

a) YES
b) NO

Q. If yes are you aware of the advance products (Loan segments) of UBI?

a) YES
b) NO

Q. If you prefer UBI for taking loan than what influence you to take Loan
from SBI?
________________________________________________________________
________________
________________________________________________________________
________________
________________________________________________________________
________________
_____________________________________________________.

Q. Have you taken loan from UBI?

~ 102 ~
a) Yes
b) No
Q. Which loan product of UBI you have used?

a) Home Loan
b) Education Loan
c) Auto Loan
d) Personal Loan
e) Other Loans, Specify ( ___________________ )

Q. What do you feel about the services providing by UBI in advance

product?

a) Average
b) Satisfactory
c) Good
d) Excellent

Q. Which features you like most in Loan segments of UBI?

a) Less paper work

b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Longer tenure lone for ease of repayment
f) Any other feature, specify ( ____________________ )

Q. Would you prefer any other bank over UBI?

a) Yes
b) No

Q. If yes, then Which bank would you Prefer?

~ 103 ~
a) SBI
b) BOI
c) PNB
d) Other

Q. On what grounds do you think Other Banks loan schemes are better
than UBI’s loan Schemes

a) Quantum of loan
b) Interest
c) Margin
d) Repayment period
e) Processing fees
f) other

Q. Any suggestion you want to give for the betterment of UBI advance
product.

________________________________________________________________
________________
________________________________________________________________
________________
________________________________________________________________
________________

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

~ 104 ~