1.1 Executive Summary: Retail Banking - Dena Bank

Retail Banking - Dena Bank
1.1 EXECUTIVE SUMMARY
In the growing global competition, the productivity of any business concern depends upon
the behavioral aspect of consumers. This topic deals with the comparative Study towards
Home Loan from Dena Bank and its competitors. This project report contains 5 different
chapters. The report begins with the introduction to company, its area of operation, its
organization structure, its achievements, etc.
The second chapter is the introduction to the Home Loan which gives a brief idea regarding
HOME LOANof Dena Bank Branch where the project is undertaken. It also contains the
objectives and limitationsof the project.
The third chapter, Methodology adopted in preparing this report is mentioned. It covers the
types of data used and the data collection method.
The fourth chapter comprehensive coverage of forecasting concepts and techniques which
shows the analysis of data through tabulation, computation and graphical representation of
data collected.
The fifth chapter deals with the findings, suggestion & conclusion part which is very much
important after analysis is made.
As we know that only analysis and conclusion is not the end of a research, so in the sixth
chapter the recommendation part is covered which are made after a depth study of the
analysis part of thesis.
In each of the five chapters as described above, every chapter has been scheduled in a
manner so as to enable the reader to appreciate the contents easily. The report is supported
by figures and data wherever necessary with a view to assist the reader in developing a
clear cut understanding of the topic.
Sheila Raheja School of Business Management & Research Page 1

1.2 Introduction
Indian Banking Structure

1.2.2 Hierarchy structure of bank

1.2.3 HOME LOAN
Home loans are loans you have access to, depending on whether you want to buy or build a
house and can also be used to repair or extend an existing house.
Who can avail of these loans?
According to lending institutions, any Indian resident who is over 21 years of age at the
beginning of the loan and below 65 at its maturity can avail of the loan. Salaried Employees
as well as Self- Employed citizens can apply. NRI Salaried and RBI Self Employed, under
RBI guidelines, can approach only nationalized banks and other HDFC for loans.
Why should one option for a loan to buy a house?
Taking a loan seems like a good option when the money at hand is insufficient to buy the
house of your dreams. Consider couples in their twenties and thirties. They enjoy a good
income currently, buy their accumulated capital isn’t enough to purchase a house. Whereas
a home loan can give them access to capital their current earnings.
Also, if you take a 10 years old loan when you are thirty, you could repay it by the time
you’re forty. So you don’t have to be burdened with the interest and are free to plan your
retirement savings.
The Quantum of loan that one can avail of :
Loan sanctioned depend on your repayment capacity – which is based on your current
income and your future repayment capacity. You would include your spouse’s name to
enhance the loan amount. The maximum loan can be sanctioned varies with each
bank/institutions and ranges from Rs.10 lakhs to Rs. 1 crore.
Benefits of taking a home loan:
A home loan is very different from a personal loan like a car loan for instance. You can
utilize a home loan for financing an asset that will hold its value and even appreciate over
the period of the loan. Though its price could fluctuate in the short terms, Total Estate will
show capital appreciation over the years. The value of your house generally while the loan
remains constant. If you had opted to wait, save up and buy a house, it would, in the long
run cost you much more; home loans also come with many tax benefits.

Tax benefits of taking a home loan:
The income tax authorities look with favor upon those servicing a housing loan from
specified financial institutions. And, it is up to you to be wise enough to take advantage of
this.
Section 24 of the Income Tax:
Interest on loan till Rs.1.5 lakhs per annum is exempted form income tax (under section
23/24(1) of the Income tax act).
Section 88 of Income Tax Act:
You get a 20% rebate on repayment of principle during a financial year. Once again, over
the years, the principle repayment eligible for rebate has been enhanced from Rs.10,000 to
the current limit of Rs.20,000 Stamp duty, registration fee or transfer of such house property
to the assesses is also considered under this amount.
Financial Institutions, which give, home loans:
Leading Banks Housing finance companies
FINANCIAL IMPLICATIONS OF AVAILING A LOAN (SMALL OR BIG)
There are several expenses involved apart from repayment of the actual loan amount:
1. Processing fees-A processing fee (PF) is charges at the time of submission of the
application form and covers expenses incurred for processing the application form. This fee
has to be paid upfront by the customer – in some cases, it is non-refundable.
2. Administration fees- to meet operating expenses.
3. Pre-EMI- A simple interest calculated on the disbursement amount in case of a plot under
construction.
4. EMI- The EMI is an abbreviated form of the equated money installment and is simply
referred to as monthly installment in common parlance. And, being a self-explanatory term
that is exactly what it is. The amount you will have to pay you financier every month when
repaying your loan. Being a monthly payment, at the end of the year, you would have paid
12 EMIs.

TYPES OF LOANS AVAILABLE
Broadly two types- fixed rate and variable rate loans; while the former deals with a fixed rate
of interest over the entire duration of the loan, the latter has the rate of interest changing
according to the fluctuations in the market.
LOAN THAT ONE CAN AVAIL
Up to 85-90% of the total cost based primarily upon the individual’s payback capacity.
GENERAL CONDITIONS THAT GOVERN A HOME LOAN:
These are likely to vary with respect to the different types of housing loans:
 The maximum period of the loan is normally fixed by HFIs. However, HFIs do provide
for different tenors with different terms and conditions.
 The Installment that you pay is normally restricted to amount 45% of your monthly
gross income.
 You will be eligible for a loan amount, which is the lowest as per your eligibility. This
is calculated on the basis of your gross income and payback capabilities.
 Some HFIs insist on guarantees from other individuals for due repayment of your
loan. In such cases you have to arrange for the personal guarantee before the
disbursement of your loan tasks place.
 Most HFIs have a panel of lawyers who go through your property documents to
ensure that the documents are clear and are not misrepresented. This is an added
benefit that you get when you avail of a loan from an HFI.
 You repay the loan either through Deduction against Salary, Post dated cheques,
and standing instructions or by Cash/DD.
WHAT ALL ONE CAN TAKE THE LOAN FOR?
There are different types of home loan tailored to meet ones needs here’s all some of them.
 Home purchase loan: This is the basic home loan for the purchase of new home.
 Home improvement loans: These loans are given for implementation repair works
& renovation in a home that has already been purchased by the client.
 Home construction loan: This is available for the construction of new home.
 Home extension loan: This is given for expanding or extending an existing home for
e.g.: addition of an extra room etc.
 Home conversion loan: This is for those who have financed the present home with
home loan & wish to purchase& move to another home for which some extra funds
are required through home on version loan ,existing loan is transferred to the new
home including the extra amount required eliminating the pre payment of the
previous loan.

 Land purchasing loan: this loan is available for the purchasing of land for both
construction and investment purpose.
 Bridge loan: these are designed for those people who wish to sell the existing home
& purchase another one. The bridge loan help finance the new home, until a buyer is
found for the home.
Flow Chart of Loan Procedure of Retail Loan
Loan Applied
Visit to applicant, home,

workplace
CIBIL report of applicant
Make Member NO
Reject
Yes
Documents Taken
Check Eligibility
Sanction Loan Amount
Preparation of security
document
Mortgage Done
Release Credit Facility
Loan Repay No
Recovery Debt
Yes
Loan Completely Repaid
Retail Loan Process – Home Loan
1) Loan Applied: Applicant comes to banks branch with credit proposal

.According tothe type of loan, bank asked for documents.
2) Receipt of documents (Balance sheet, KYC paper, Different Govt

registration no, MOA, AOA, and properties of document
3) Visit to applicant’s home, workplace: Banks employee’s gives visit to

applicantshome and workplace so that his /her relatives come to know about
loan application. Also bank can get his past record from his colleagues,
relatives.
4) CIBIL Report: Bank takes out CIBIL report of applicant, his sureties so that
bankcan know about the applicants past loans and whether he is able to pay
those loans regularly or not. If CIBIL report shows that the applicant is unable
to repay his past loans or he has many other loans then bank can reject his
application. Through CIBIL report bank can know applicants loan amounts
but bank is unable to view other banks names from which those loans are
taken .To get that information bank have to give application to CIBIL .
5) Decision on giving Membership: According to credit policies loan can be

given toonly members of bank. To give loan first applicant has to become
member of the bank. Applicant can be permanent member or temporary
member. Bank checks his past records and then decide whether to make
him member or not.
6) Documents Taken: After making member bank asks for required

documents tomember i.e. his residential proofs, his income proof, legal
documents if required. Also bank makes agreement with applicant if
required.
7) Eligibility Status: According to the banks credit policies every applicant

shouldhave minimum amount as a take home salary for his basic
livelihood.
8) Sanctioning Loan: In this acceptance, scrutiny, recommendation is

come undersanctioning process.

A. Acceptance:
I. All credit proposals will be accepted by respective Branches/Credit Cell.

However, the proposals for In-Principle Acceptance as determined from
time to time will be accepted at Regional Offices but after acceptance In-
Principle of such proposals by the Board, they will be once again
scrutinized by the Branch and sent to Head Office through respective
Regional Offices.
The all credit proposal Regional Offices for scrutiny and
recommendations. In case of enhancement/additional facilities above
Rs.100.00 Lakhs will be accepted and scrutinized by head office.
However, the DGM/AGM should involve the respective Branch
Managers/In-charges for account information, visit and other preliminary
data collection and make them accountable for the same. The proposals
should be scrutinized by the Regional Offices and with the
recommendation of the DGM the proposals shall be sent to Head Office
for sanction.
III. Credit Proposals except Housing Loans, beyond the powers of Regional
Offices shall be sent to Head Office duly scrutinized and recommended by
the Branch office. Housing Loans, beyond the powers of Offices shall be
sent directly to Head Office, duly scrutinized and recommended by the
Branch/Credit Cell.
IV. All other proposals shall be accepted, scrutinized and recommended by

the Branches/Credit Cells and the proposals beyond the delegation of the
Branches/Credit Cells shall be forwarded to the Head office.
V. In exceptional cases the proposals may be accepted at Head Office directly.
VI. Acceptance and Scrutiny should be done as per the laid down norms and
instructions issued by Head Office from time to time.
VII. The Specialized Credit Cells will follow the procedure as laid down in
Office Orders No. 206 dated 10.11.2005 and No. 218 dated 18.9.2006
respectively. They will send proposals beyond the delegated power of
DGM and upto the delegated authority of the Managing Director, directly
to Head Office.
VIII. The Regional Offices will send the proposals beyond the delegated power
of DGM &upto the delegated power of the GM/MD, directly to Head Office

for sanction and proposals beyond the delegated power of the GM/MD.
IX. The Branches shall not sanction Security loans against income proof
By Affidavit and there is no established business. However, if earlier
loan sanctioned on the basis of Affidavit is repaid/ repaying regularly, new
loan/top up loan can be sanctioned.
9. Preparation of Mortgage Deed: Mortgage agreement is prepared according to

application.For immovable properties mortgage is done and for movable properties
hypothecation is done. Mortgage Dept takes care of all terms and conditions and
legal formalities.
10. Release credit Facility: If all documents, term and conditions are fulfill then credit
facilitiesare released.
11. Repayment of Loan: If the loan is not repaid regularly or if the applicant fails to
repay theinterest& the principal amount then the case of the credit proposal
becomes default. Then this default case goes to the recovery dept. Where all
necessary legal actions are taken against the defaulter.

Dena Bank
About the Bank
Dena Bank was founded on 26th May, 1938

by the family of DevkaranNanjee under the
name DevkaranNanjee Banking Company
Ltd.
It became a Public Ltd. Company in

December 1939 and later the name was
changed to Dena Bank Ltd.
In July 1969 Dena Bank Ltd. along with 13 other major banks was nationalized and is now a
Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of
Undertakings) Act, 1970. Under the provisions of the Banking Regulations Act 1949, in
addition to the business of banking, the Bank can undertake other business as specified in
Section 6 of the Banking Regulations Act, 1949
Milestones -
 One among six Public Sector Banks selected by the World Bank for sanctioning a
loan of Rs.72.3 crores for augmentation of Tie-II Capital under Financial Sector
Developmental project in the year 1995.
 One among the few Banks to receive the World Bank loan for technological up
gradation and training.
 Launched a Bond Issue of Rs.92.13 Crores in November 1996.
 Maiden Public Issue of Rs.180 Crores in November 1996.
Dena Bank has been the first Bank to introduce:

 Minor Savings Scheme.

 Credit card in rural India Known as "DENA KRISHI SAKH PATRA” (DKSP)
 Drive-in ATM counters of Juhu, Mumbai.
 Smart card at selected branches in Mumbai.
 Customer rating system for rating the Bank Service.
Mission
DENA BANK will provide its
Customers - premier financial services of great value,

Staff - positive work environment and opportunity for
growth and achievement,
Shareholders - superior financial returns,
Community - economic growth
Vision
DENA BANK will emerge as the

most preferred Bank of customer choice
in its area of operations, by its
reputation and performance
The logo of Dena Bank depicts Goddess Lakshmi, the Goddess of Wealth, according to
Hindu mythology. It was the desire of the founding fathers of the Bank that the Bank should
be a symbol of prosperity for all its clients, and the logo represents this promise. The
contemporary 'D' in the logo reflects the dynamism, dedication and the drive towards
customer satisfaction.

Revised interest rates on various retail lending schemes w.e.f. 25.7.2013
Dena Niwas Housing Finance Scheme [Home Loans]:
Types of Home Loans
There are a variety of home loans available:
 Home Purchase loans: This is basic home

loan for the purchase of a new home.
 Existing home improvement loans:
These loans are given for implementing
repair works & innovations in home that has already been purchased by the
borrower.
 Home construction loan: This is a loan given for the construction of a new home.
 Home extension loan:This is given for expanding or extending an existing home
such as adding a room or floor etc.
 Home conversion loan: This is loan given to those who have financed the present
home with loan & wish to purchase another home for which extra funds are
necessary. The home conversion loan allows the borrower to transfer the existing
loan to the new home loan, which includes the extra amount required, thus doing
away with the need to pre-pay the previous loan.
 Land Purchase Loans: This is loan which is provided to purchase land either for
construction of a home or for investment in land.
 Bridge Loan: These are loans given to persons who are looking to sell their existing
home & purchase another. The bridge loan helps finance the purchase of the new
home until the old one is sold.
 Balance transfer loan: This is loan which allows the borrower to repay an existing
loan & avail of another loan at lower rates of interest.
 Refinance loans: This is a loan that is given in order to repay debts incurred from
un-organized sourced such as relatives, friends etc. which may have been taken to
purchase the home.
Maximum Limit:
 Max. loan amount is Rs.200 lacs for purchase of house / flat [including for NRI]

 Max. Loan amount is Rs.10 lacs for repairs and renovations.

Eligibility terms for home loans
Your age on the maturity of the loan is less than retirement age if you are a salaried
employee & below 65 years, if you have a business. The total deductions do not exceed
60% of your gross income, including the loan installment of the proposed loan. The
repayment capacity is determined by taking into consideration factors such as ITR for last 3
years, age, qualification, number of dependents, spouse’s income, assets, liabilities, stability
& continuity of occupation & savings history.
Documentations requirements – pre-approval

 At the time of application for a home loan, the housing finance company would ask
for the following common documents.
 In case the borrower is a salaried employee, proof of income i.e. salary
certificate/slips & TDS certificate (From 16) of the borrower & co-applicant, if any.
 In case the borrower is self-employed; details of business track record & a copy of
the audited financial statement of the last two years of the borrower & co-applicant, if
any.
 Copy of bank account statement for the last 6 months.
 Copy of the latest credit card statement.
 Passport size photograph.
 Signature verification from the borrower’s banker.
 Proof of residence.
Upon receipt of all the documents along with the duly completed application form, the
housing finance company receives the details & communicate its decision regarding
approval of the loan application.
Documentation requirements – post-approval/ disbursal stage:
After a loan application has been approved & at the time that the borrower requires the funds
for payment, the following documents are required to be furnished:
1. Allotment letter
2. Photocopies of title deeds
3. Agreement to sell
4. Non-encumbrance certificate
5. Approved plans & clearance certificates along with estimates if the property is self-
constructed.

Repayment Period
For purchase of new flat/ house/construction/extension maximum 20 years.For repairs,

renovation &up-gradation maximum 10 years.NRIs can avail of a housing loan for a
maximum period of 7 years. Repayment is usually taken in Equated Monthly Installments
(EMI) by way of post-dated cheques. This fixed money that is repaid to the housing finance
company every month comprises of both interest & principal repayment.
Rate of Interest
Dena Niwas Housing Finance :

Floating Rate of Interest (linked to Base Rate)
Limit upto Rs.75 lakhs 10.25%
Limit above Rs.75 lakhs 10.50%
FIXED RATE OF INTEREST (TO BE RESET AT THE END OF EVERY 3

YEARS)
Limit up to Rs. 25.00 Lacs *

Repayable up to 5 years 11.25% (fixed)
Repayable above 5 years & up to 10 years
Repayable above 10 years
Limit > Rs.25 lakhs &Upto Rs.30 lakhs :

Repayable upto 5 years
Repayable in > 5 years & up to 10 years 11.25% (fixed)
Repayable in > 10 years
Limit > Rs.30 lakhs :

Repayable up to 5 years
Repayable above 5 years & up to 10 years 11.75% (fixed)
Repayable above 10 years
* Note :The fixed rate of interest is to be reset after every 3 years. At the time ofreset it
should be fixed by the same spread over the Base Rate applicable on the date of reset as
was applicable at the time of sanction.

Fees & Charges:

0.50% of sanctioned limit.
Tax Benefits
Tax benefits are available under:
1. Exemption under section 88 of IT act (Rebate) for repayment of principle up to Rs. 10,000.
2. Deduction under section 24 of IT act for interest payment on housing loans up to Rs.
150,000 (in respect of self-occupied house property acquired or constructed with capital
borrowed on or after 1.4.99, & acquisition or construction is completed within 3 years from
the end of the financial year in which the capital borrowed). Tax benefit will defer in case of
the property has been leased out

Comparison of Major Players
The markets for home loans have been sizzling in India. The spurt in growth in recent years and
the prospect of continued buoyancy in demand have attracted many players to the industry
which till a couple of years. The result is cut-throat competition, which has benefited the loan
seekers. The home loan market has grown at a compounded rate of over 40% over the last four
years. And from what industry experts believe that there is a little chance that there will be any
significant decline in the growth rates going forward. So what have been the key factors in
triggering of this high growth period?
There are several reasons for the same on the demand side:-
 Faster rise income as compared to property prices, thus making housing more
affordable.
 Decline interest rates, which have greatly reduced the cost of borrowing (both on
interest and capital).
Then there are factors on the supply side too which have supported this growth:-
 More competition in the housing finance sector resulted in companies charging lower
interest rates, sometimes even at the cost of spread (i.e. profit margin)
 The fee for getting the home loan has reduced dramatically over the last couple of
years. From over 2% of the loan amount to as long as 0.25% (some companies are
known to wave of the fee entirely). Housing Finance Companies have introduced
several new products to meet the needs of wide variety of customers. One such
scheme, the Step up Loan, where EMI’s increases as the income of the individual
increases has been a big hit with the individuals just starting off with their careers.
 One other factor is increasing collaboration between Housing Finance Companies and
builders. Such partnership minimizes the service and funding related issues significantly
thus making it easier to buy property.
One innovation in the housing finance sector has been the introduction of floating rate home
loan simply put the cost of such home loan or the interest rate not fixed during the tenure of the
loan. Instead interest rate is benchmarked against some index/ indicator. So as the benchmark
rate moves up or down, the cost of your loan too changes, at some predetermined frequency
(usually once a quarter).
Ideally loan seekers should opt for a floating rate home loan when it is expected that the interest
rate will decline going forward. Fixed rate loans should be preferred when the interest rates are
expected to rise.

Five steps to take a right loan:-
1) Gather data on interest rate: Get interest rate information from morethan one source
and get the same information from each so you can compare the offers.
2) Get information on fees: Find out about processing fees, administration charges and
other costs that may be involved in taking the home loan. A written statement of all the
fees from the housing finance companies will ensure that there will be no surprises later
on. Use the lowest amount of fees to negotiate with the other lenders.
3) Get pre-approval letter: This gives you substantial leverage as you are then seen as
serious buyer by the seller of the property. Also, having the letter in your hand will set a
limit to the amount of money you can commit to the property. This will help in identifying
the right property.
4) Bargain for a lower rate of interest: Housing finance will reduce their ‘rack’ rates for
customers with the good credit record. A bargain deal will easily fixed a home loan at
significantly lower rates (at times you can get a discount of as high as 0.50 percent).
Here again get a confirmation of the rate (and for how long it will remain fixed) via a
letter.
5) Watch out for a predatory lending: Don’t include false information on your home loan
application to get quick approval. Also do not borrow more money than you need or can
afford.

1.2.9 State Bank of India
Introduction
State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network of
over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of
deposits and loans of all scheduled commercial banks in India. The State Bank Group includes
a network of eight banking subsidiaries and several non-banking subsidiaries offering merchant
banking services, fund management, factoring services, primary dealership in government
securities, credit cards and insurance. The eight banking subsidiaries are: State Bank of
Bikaner and Jaipur (SBBJ),State Bank of Hyderabad (SBH).State Bank of India (SBI),State
Bank of 13 Indore (SBIR),State Bank of Mysore (SBM),State Bank of Patiala (SBP),State Bank
of Saurashtra (SBS) and State Bank of Travancore (SBT). Today, State Bank of India (SBI) has
spread its arms around the world and has a network of branches spanning all time zones. SBI's
International Banking Group delivers the full range of cross-border finance solutions through its
four wings - the Domestic division, the Foreign Offices division, the Foreign Department and the
International Services division.
History
The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the
Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks
(Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In
1955, the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of
India and the State Bank of India (SBI) came into existence by an act of Parliament as
successor to the Imperial Bank of India.
Today, State Bank of India (SBI) has spread its arms around the world and has a network of
branches spanning all time zones. SBI's International Banking Group delivers the full range of
cross-border finance solutions through its four wings - the Domestic division, the Foreign
Offices division, the Foreign Department and the International Services division.

SBI Recent Achievements and Milestones:
Awards:
SBI has been the proud recipient of the ICRA Online Award - 8 times, CNBC TV – 18, Crisil
Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and most recently with the CNBC
TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for our schemes.
SBI Card reaches three million milestones:

SBI Card, a joint venture between State Bank of India and GE Money, announced yet another
landmark achievement of crossing the three million cardholders-marks. RoopaAsthana, CEO-
SBI Card, said, "This milestone is even more remarkable as we have added one million
cardholders in just ten months. Our objective is to accelerate the pace of growth by extending
the benefits to a broader range of consumers in Tier II cities, along with improved value
propositions for the urban affluent customers." SBI Card recently signed up Indian cricketer
Yuvraj Singh as its brand ambassador.
Main SBI Home Loan Schemes
 SBI Realty : Purchase of plot of land

 SBI Optima : Loan to existing home loan borrowers
 SBI Green Home Loan : For homes that fight against the adverse climate change, SBI
offers 0.25% concession in interest rate and waiver of processing fees
 SBI Flexi : Combination of floating and fixed interest rate, in a pre determined ratio
 NRI Home Loans : Loans for NRIs and PIOs
 SBI Freedom : Pledging other financial security than mortgaging the house
 SBI Max Gain : Operate your home loan account like your SB or Current Account
SBI Housing Loan
 SBI Home Loan provides no cap on maximum loan amount for the
purchase/construction of house/flat.
 There is an option to club the income of the applicant's spouse and children to compute
the eligible loan amount.
 The bank provides free personal accident insurance cover.
 A complimentary international ATM cum Debit card is also provided by SBI.
 On the spot "in principle" approval is a special provision for the applicant.
 If all the required documents are submitted by the applicant, SBI Home Loan is
sanctioned within 6 days of the date of submission.
 The applicant can also consider SBI's Home Loan as a Term Loan or as an Overdraft
facility, in case he/she wants to save on interest and maximize gains.
 SBI Home Loan also provides free personal accident insurance cover up to Rs 40
Lakhs.
 Repayment is permitted up to 70 years of age, which is an added advantage of SBI
Home Loan.

Schemes Provided By SBI
The Most Preferred Home Loan provider SBI Bank offers a Home Loan with Attractive Interest
Rates with Latest Schemes and Benefits. SBI also provides a Housing loan with
differentschemes.
1. SBI Easy Home Loan

2. SBI Advantage Home Loan
3. SBI Housing Finance Scheme
4.SBI Happy Home Loans
5.SBI Life Style Loan
6. SBI Green Home Loan
7. SBI Home Plus
8. SBI Home Line
9. SBI My Home Campaign
Products
'SBI-Flexi' Home Loans are designed to enable borrowers to hedge their Home Loan against
unfavorable movement in interest rates and gives the customers a one time irrevocable option
to choose one of the three customized combinations of fixed and floating interest rates.
'SBI-Freedom' Home Loans are customized for high net worth individuals and offer benefits
such as 100 per cent finance of the project and no mortgage of the property, provided the
individual could show liquid securities such as LIC policies or NSCs.
Eligibility
The minimum age of the applicant is 18 years, on the date of the sanction of the loan. The
maximum age limit for a Home Loan applicant is 70 years.
Interest Rate (SBAR is currently 11.75%)
Year 1 - 8% fixed
Year 2 & 3 - 9% fixed
Year 4 onwards - For loans up to 50 lakhs, 9.25% floating.
For loan amount over 50 lakhs, 9.75% floating

Processing Fee
Fees Rupee
Upto 5 lakh Rs.1,000
5 lakh - 10 lakh Rs.2,000
10 lakh - 20 lakh Rs.5,000
20 lakh - 50 lakh Rs.7,000
50 lakh - 1 crore Rs.8,000
1 crore - 5 crore Rs.10,000
Above 5 crore Rs.20, 000
Prepayment Charges
If paid from own source- Nil,
In other cases- 2% on principal amount prepaid
Late Payment Charges
If paid from own source- Nil,
In other cases- 2% on principal amount prepaid

Eligibility Criteria & Documentation required for SBI Home Loan
Salaried Self employed
Age 21years to 60years 21years to 70years
Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)
Loan Amount
5,00,000 - 1,00,00000 5,00,000 - 2,00,00000
Offered
Tenure 5years-20years 5years-20years
Current
2years 3years
Experience
1) Application form with photograph

1) Application form with 2) Identity & residence proof
photograph 3) Education qualifications certificate &
2) Identity & residence proof proof of business existence
Documentation 3) Last 3 months salary slip 4) Business profile,
4) Form16 5) Last 3 years profit/loss & balance
5) Last 6 months bank salaried sheet
credit statements 6) Last 6 months bank statements
6) Processing fee cheque 7) Processing fee cheque

1.3 Problem Statement
A Comparative Study of Home Loan of Dena Bank and State Bank of India.

1.4 Research Objective
1. To Study Housing Loan product of Dena Bank.

2. To Study the difference between Housing Loan provided by Dena Bank and SBI
3. To suggest measures to improve Housing Loan service in Dena Bank.

1.5 Hypothesis:
Ho: There is difference between Housing Loan provided by Dena Bank and State Bank of India.
H1: There is no difference between Housing Loan provided by Dena Bank and State Bank of
India.

1.6 Limitations of study
If there are advantages of study then obviously there are limitations of that study also. So, some
limitations of this study are: -
 Time period for the study is limited to two months for this project,
But if researcher got more time than analysis can be much more broad
 Analyses of only two banks are done rather than more banks.
 Study is limited to local area of Malad.
2. LiteratureReview

Author Name:
RashmiChaudharyAndYasminJanjhua
Volume No. 2 (2011), Issue No. 9 (September)
Title:
Study Customer Perceptions And Satisfaction Towards Home Loans
Conclusion:
It was found that Cooperative Banks are very popular among the customers these days. The
trust level that customer have with these banks is very high in comparison to other banks.
Customer are associated with banks for many services that they require on regular basis and
people tend to prefer banks which provide better facilities and convenient banking. From the
overall analysis it can be said that the satisfaction level of workers in relation to the services
provided by Baghat Urban Cooperative Bank Limited is very high. Different banks offer same
product but their services differentiate and the bank has gone far in this direction. The higher
satisfaction level among the respondents indicates that the bank is responsive to the needs and
problems of the customers. The success of the housing companies in the market rest on the
availability of customized product and also the service quality offered to customers. The future
growth of the companies depends upon its qualitative service to the customers. At this juncture,
the banks should evaluate their services and identify their distinction from others. Changing
customer needs and uncertain economic conditions in are exerting pressure on housing
companies while testing their ability to survive. The only way to succeed in the market is the
formulation of differentiated service to different customer segments.
3. METHODOLOGY

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3.1 RESEARCH DESIGN
Research may be defined as the research for knowledge through an objective. It is a way to
systematically solve the research problem. It includes the various steps that are generally
adopted by a researcher. I have adopted the research design.
A Research design is the specification of the method and procedures for acquiring the
information needed. Descriptive research design is adopted for analyzing the data.
3.2 DATA COLLECTION
Data was collected from two sources-primary and secondary sources.
1. Secondary Data:
The data are collected from the secondary sources such as magazines, journals, etc. These
sources consist of already variable data in the form of statements, and reports, which may
include sensory reports, financial statements of the company, reports of governments
departments, etc. It was collected from internal sources.
2. Primary Data:
The primary data has been collected simultaneously along with secondary data for
meeting the established objectives to provide the solution for the problem identified in this study
The methods that have been used to collect the primary data are:
Instrument: Questionnaire.

4. Data Analysis
The home loans provided by the banks are more or less same at the basic level. The banks
generally try to go ahead of other banks in terms of attracting number of customers to their
countries. For this they are trying to offer some unique services as per the unique requirements
of the unique important customers.
Q1)what is your Gender?
Table 1

frequency Percentage
Female 39 22%
Male 11 78%
Total 50 100%
Source: Questionnaire - Questionnaire 1
Gender
Female
22%
Male
78%
Source: Table 1
Analysis:
Researcher Conclude that out of total population 50, 22% are Female & 78% are Male.
Q2)What is your Occupation?
Table 2

Reasons frequency Percentage

Professional 13 26%
Self – Employed 16 32%
Salaried 21 42%
Total 50 100%
Occupation
45% 42%
40%
35% 32%
30%
26%
25%
20%
15%
10%
5%
0%
Professional Self – Employed Salaried
Source: Table 2
Analysis:
From above table 2, Researcher can conclude that 42 % are Salaried person compare to 26%
are professional person for availing home loan.
Q3)Which income group do you belong? (Per annum)
Table 3
Below 2 Lakh 17 34%
2 – 4 Lakh 15 30%
4 – 6 Lakh 10 20%
6 Lakh and above 8 16%
Total 50 100%
Source:Questionnaire - Questionnaire 3
Income Group
16%
30%
Below 2 Lakh
2 – 4 Lakh
4 – 6 Lakh
20% 6 Lakh and above
34%
Source: Table 3
Analysis:
From above table 3, Researcher can conclude that 34% are between 2 lakh – 4 lakh person
availing the home loan. 30% belong to below 2 Lakh , 20% belong to 4 – 6 Lakh and 16% are
above 6 Lakh.
Q4) Are you aware of the home loan product of any of the following banks?
Table 4


Dena Bank 19 38%
State Bank of India 12 24%
Bank of Baroda 10 20%
Others 9 18%
Total 50 100%
Banks
40% 38%
35%
30%
25% 24%
20%
20% 18%
15%
10%
5%
0%
Dena Bank State Bank of India Bank of Baroda Others
Source: Table 4
Analysis:
It is cleared that most of the people are aware of Dena Bank Home loan Product.
24% are State Bank of India , 20% are Bank of Baroda and 18% are others
Q5)While taking home loan, which things attract you the most?

Table 5

Low Interest Rates 14 28%
Convenient Location 12 24%
Reputation of the Bank 8 16%
Prompt Services 9 18%
Timely and Adequate Loan 7 14%
Total 50 100%
Source : Questionnaire - Questionnaire 5
Reasons
30% 28%
25% 24%
20% 18%
16%
15% 14%
10%
5%
0%
Low Interest Convenient Reputation of Prompt Services Timely and
Rates Location the Bank Adequate Loan
Source: Table 5
Analysis:
Most of the people attract home loan due to low interest rate it is easier for people to repay
whole loan amount with low interest rate
Q6) Are you satisfied about the loan processing time?

Table 6
Frequency Percentage
Yes 45 90%
No 5 10%
Total 50 100%
Loan Processing Time
90.00%
80.00%
70.00%
60.00%
50.00% 90.00%
40.00%
30.00%
20.00%
10.00%
0.00% 10.00%
Yes
No
Source: Table 6
Analysis:
Researcher can conclude that Out of the total population, 90% people are satisfied with the loan
processing time.
Q7)What do you feel about the services providing by Dena Bank in home loan?

Table 7
Reasons Frequency Percentage

Bad 0 0%
Satisfactory 14 28%
Good 17 34%
Excellent 19 38%
Total 50 100%
Services
40% 38%
35% 34%
30% 28%
25%
20%
15%
10%
5%
0%
0%
Bad Satisfactory Good Excellent
Source: Table 7
Analysis:
Service provided by Dena Bank in the Home Loan its excellent in between the customers.
Researcher can see that 38% are excellent , 34% are good and 28% are satisfactory.
So there is good relation between the bank & customer towards its service.
4.2 Hypothesis Testing
Ho: There is difference between Housing Loan provided by Dena Bank and State Bank of India.

H1: There is no difference between Housing Loan provided by Dena Bank and State Bank of
India.
Table 4

Dena Bank 19 38%
State Bank of India 12 24%
Bank of Baroda 10 20%
Others 9 18%
Total 50 100%
Banks
40% 38%
35%
30%
25% 24%
20%
20% 18%
15%
10%
5%
0%
Dena Bank State Bank of India Bank of Baroda Others
Source: Table 4
Analysis:
It is cleared that most of the people are aware of Dena Bank Home loan Product.
24% are State Bank of India , 20% are Bank of Baroda and 18% are others
Q5)While taking home loan, which things attract you the most?
Table 5

Low Interest Rates 14 28%

Convenient Location 12 24%
Reputation of the Bank 8 16%
Prompt Services 9 18%
Timely and Adequate Loan 7 14%
Total 50 100%
Source : Questionnaire - Questionnaire 5
Reasons
30% 28%
25% 24%
20% 18%
16%
15% 14%
10%
5%
0%
Low Interest Convenient Reputation of Prompt Services Timely and
Rates Location the Bank Adequate Loan
Source: Table 5
Analysis:
whole loan amount with low interest rate.
Conclusion
Ho: There is difference between Housing Loan provided by Dena Bank and State bank of India.
5. Findings of this research is :

Finding 1:
Out of total population 50, 22% are Female & 78% are Male.
Finding 2:
Researcher can conclude that 42 % are Salaried person compare to 26% are professional
person for availing home loan.
Finding 3:
Researcher can conclude that 34% are between 2 lakh – 4 lakh person availing the home loan.
30% belong to below 2 Lakh , 20% belong to 4 – 6 Lakh and 16% are above 6 Lakh.
Finding 4:
It is cleared that most of the people are aware of Dena Bank Home loan Product.24% are State
Bank of India , 20% are Bank of Baroda and 18% are others
Finding 5:
Out of the total population, 90% people are satisfied with the loan processing time.
Finding 6:
whole loan amount with low interest rate.
Finding 7:
Service provided by Dena Bank in the Home Loan its excellent in between the customers.
Researcher can see that 38% are excellent , 34% are good and 28% are satisfactory. So there
is good relation between the bank & customer towards its service.
6. CONCLUSIONS

Retail banking is the fastest growing sector of the banking industry with the key success by
attending directly the needs of the end customers is having glorious future in coming years.
Retail banking sector as a whole is facing a lot of competition ever since financial sector reforms
were started in the country. Walk-in business is a thing of past and banks are now on their toes
to capture business. Banks therefore, are now competing for increasing their retail business.
There is a need for constant innovation in retail banking. This requires product development and
differentiation, micro-planning, marketing, prudent pricing, customization, technological up
gradation, home / electronic / mobile banking, effective risk management and asset liability
management techniques.
While retail banking offers phenomenal opportunities for growth, the challenges are equally
discouraging. How far the retail banking is able to lead growth of banking industry in future
would depend upon the capacity building of banks to meet the challenges and make use of
opportunities profitably.
However, the kind of technology used and the efficiency of operations would provide the much
needed competitive edge for success in retail banking business. Furthermore, in all these
customer interest is of chief importance. The banking sector in India is representing this and I do
hope they would continue to succeed in this traded path.
7. SUGGESTIONS AND RECOMMENDATION

There are various problem found during research as well as in Banking Service of bank.
 The bank should developed more product so retail customer take advantage of that.
 The bank should update their technology.
 Ask people who have experiences with retail banking in several countries about their
opinion.
 Today bank is more depend on internet so update product on net.
 Bank should take less Time for Sanction Loan so the Bank will get more consumers.
 Bank also gives daily SMS service to Current A/c holder. So, Bank will get more
business.
 Staff members should provide proper guidance regarding loan queries and they should
provide information accordingly.
8. BIBLOGRAPHY

Website:
 www.rbi.gov.in
 www.denabank.com
 www.economictimes.com
 www.wikipedia.org
 Proposals Provided by Bank
Book:
 Retail banking of Dena Bank
Journal:
 International Journal of Research In Commerce & Management

9.1 CASE STUDY
Housing Loan:
a. Name: Mr. Rajesh Kumbhani&Mrs. FalguniKumbhani
b. Loan No.:HSG/ 014/2014
c. Loan Amount: Rs.53.80 Lacs
d. Rate of Interest:14 %
e. Date of Loan:02.05.20014
f. Purpose of Loan: Purchase of New Flat.
g. Document submitted by Borrower:
(i) Original agreement of house.
(ii) Agreement deal.
(iii) Builder letter.
(iv) Pan Card.
(v) Bank Statement.
(vi) Borrower personal information.
(vii)Granter information and signature.
(viii) Return file of IT department last three financial years.
9.2 Questionnaire

Name - _____________________________________
Contact Detail -_______________________________
Q1) What is your Gender?
A. Female
B. Male
Q2) What is your Occupation?
A. Professional
B. Self – Employed
C. Salaried
Q3) Which income group do you belong? (Per annum)
A. Below 2 Lakh
B. 2 – 4 Lakh
C. 4 – 6 Lakh
D. 6 Lakh and above
A. Dena Bank
B. State Bank of India
C. Bank of Baroda
D. Others
Q5) While taking home loan, which things attract you the most?
A. Low Interest Rates

B. Convenient Location
C. Reputation of the Bank
D. Prompt Services
E. Timely and Adequate Loan
Q6) Are you satisfied about the loan processing time?

A. Yes
B. No
Q7)What do you feel about the services providing by Dena Bank in advance product?
A. Bad
B. Satisfactory
C. Good
D. Excellent

1.1 Executive Summary: Retail Banking - Dena Bank

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Retail Banking - Dena Bank

1.1 EXECUTIVE SUMMARY

Sheila Raheja School of Business Management & Research Page 1

Sheila Raheja School of Business Management & Research Page 2

1.2.2 Hierarchy structure of bank

Sheila Raheja School of Business Management & Research Page 3

1.2.3 HOME LOAN

Who can avail of these loans?

Why should one option for a loan to buy a house?

The Quantum of loan that one can avail of :

Benefits of taking a home loan:

Sheila Raheja School of Business Management & Research Page 4

Tax benefits of taking a home loan:

Section 24 of the Income Tax:

Section 88 of Income Tax Act:

Financial Institutions, which give, home loans:

Leading Banks Housing finance companies

FINANCIAL IMPLICATIONS OF AVAILING A LOAN (SMALL OR BIG)

2. Administration fees- to meet operating expenses.

Sheila Raheja School of Business Management & Research Page 5

TYPES OF LOANS AVAILABLE

LOAN THAT ONE CAN AVAIL

GENERAL CONDITIONS THAT GOVERN A HOME LOAN:

WHAT ALL ONE CAN TAKE THE LOAN FOR?

Sheila Raheja School of Business Management & Research Page 6

Flow Chart of Loan Procedure of Retail Loan

Visit to applicant, home,

CIBIL report of applicant

Sanction Loan Amount

Release Credit Facility

Retail Loan Process – Home Loan

1) Loan Applied: Applicant comes to banks branch with credit proposal

2) Receipt of documents (Balance sheet, KYC paper, Different Govt

3) Visit to applicant’s home, workplace: Banks employee’s gives visit to

5) Decision on giving Membership: According to credit policies loan can be

6) Documents Taken: After making member bank asks for required

7) Eligibility Status: According to the banks credit policies every applicant

8) Sanctioning Loan: In this acceptance, scrutiny, recommendation is

Sheila Raheja School of Business Management & Research Page 8

I. All credit proposals will be accepted by respective Branches/Credit Cell.

IV. All other proposals shall be accepted, scrutinized and recommended by

V. In exceptional cases the proposals may be accepted at Head Office directly.

Sheila Raheja School of Business Management & Research Page 9

9. Preparation of Mortgage Deed: Mortgage agreement is prepared according to

Sheila Raheja School of Business Management & Research Page 10

About the Bank

Dena Bank was founded on 26th May, 1938

It became a Public Ltd. Company in

Dena Bank has been the first Bank to introduce:

Sheila Raheja School of Business Management & Research Page 11

 Minor Savings Scheme.

Customers - premier financial services of great value,

DENA BANK will emerge as the

Sheila Raheja School of Business Management & Research Page 12

Revised interest rates on various retail lending schemes w.e.f. 25.7.2013

Dena Niwas Housing Finance Scheme [Home Loans]:

Types of Home Loans

There are a variety of home loans available:

 Home Purchase loans: This is basic home

Sheila Raheja School of Business Management & Research Page 13

 Max. Loan amount is Rs.10 lacs for repairs and renovations.

Documentations requirements – pre-approval

Documentation requirements – post-approval/ disbursal stage: