This action might not be possible to undo. Are you sure you want to continue?
Submitted to: Dr. B.R. Ambedkar University, Agra
In the partial fulfillment of the requirement for the degree Of Master of Business Administration
(Banking and Investment)
Under the guidance of: Mr. R.K. Verma (Chief Manager)
Submitted by: Prashant Srivastava M.B.A. (B.I.) – IIIrdSemester Roll No. – 17
SETH PADAM CHAND JAIN INSTITUTE OF COMMERCE BUSINESS MANAGEMENT & ECONOMICS
Prepared by: Prashant Srivastava
Prepared by: Prashant Srivastava
T h i s r e p o rt b e a r s t he i m pr i nt of m any per sons, who have h e l p e d m e i n n u m e r o u s ways i n wr i t i ng t hi s r epor t . It gi ves m e g r e a t p l e a su r e i n pr esent i ng t hi s r eport t o t he Dr . B.R. Am b e d k a r Un i v er si t y , Agr a vi a S et h P ad am Ch an d Jain In st i t u t e o f Co m m e r c e Bu si n ess Man agem ent & Econ om i cs . I wo u l d l i k e t o t a k e thi s oppor t uni t y t o ext end m y hear tf ul g r a t i t u d e t o a l l t h o se who hel ped m e i n pr esent i ng thi s r epor t . T h e ir c o n t r i b ut i o n n o m at t er bi g or sm al l has cont r i but ed i m m e n se l y t o wa r d s c o m pl et i on of t hi s r epor t . I f a l l sh o r t o f wo r ds t o expr ess my gr at it ude t o al l t he r e sp o n d e n t s wh o g i v e s m e t heir val uabl e t i m e and unbi ased r e sp o n se s fo r m y q u est i onnai r e of t hi s pr oj ect r epor t . I a c k n o wl e d g e m y d e e p sense of gr at i t ude t o MR. R.K . Verm a ( Ch i ef M a n a g e r ) f o r hi s gener ous gui dance & advi ce bef or e & d u r i n g t h e c o u r se o f t hi s wor k & al so i n anal yzi ng the wo r k . I a m a l so e x t r e m e l y gr at ef ul t o m y f acul t y m em ber s Mr . P . N. Ag a r wa l , Ms. Gu n j an Di xi t and Ms. S wat i Mat hur , who e n c o u r a g e s m e f or c o m pl et i ng m y pr oj ect r epor t . I am equal l y t h a n k f u l t o Sr i . A. K. S a xena ( Co- or di nat or ) . My o v e r r i di n g d e bt i s t o m y par ent s and m y si bl i ngs wh o pr o v i d e m e wi t h t he m or al suppor t & i nspi r at i on needed t o p r e p a r e t h i s r e p o rt . PRASHANT SRIVASTAVA
3 Prepared by: Prashant Srivastava
4 Prepared by: Prashant Srivastava .
PREFACE Modern organizations are highly complex ad dynamics systems. Management has to keep the organization vibrant moving and in equilibrium. af t e r c o m pl et i on of t hi r d sem est er of the 5 Prepared by: Prashant Srivastava . pr ogr am m e i s pr oj ect t a k e n b y th e st u d e n t s t o inst i t ut e under whi ch he or she i s st u d y i n g . coordination and control the performance of people to achieve predetermined goals. They are required to reconcile several incompatible goals.B.A. T h i s i n f or m a t i o n wi l l be asset t o m ar ket i ng m anager i n making e ff e c t i v e d e c i si ons. d e a l e r s a nd i ndi vi dual s thr ough i nf or m at i on i n i m p o r t a n t p ar t o f c u rr i cul um of M. The r esear ches ar e used to a c q u i r e a n d a n a l y se i n f or m at i on and to m ake suggest i ons t o m a n a g e m e n t a s t o h o w m ar ket i ng pr obl em s shoul d be sol ved. I a m f u l l y conf i dent t hat t hi s pr oj ect r epor t wi ll b e e x t r e m e l y u se f u l t o t he m anagem ent . T h e o b j e c t i v e o f t h i s pr oj ect i s t o enabl e t he st udent s t o u n d e r st a n d t h e a p p l i c at i on of t he academ i cs i n t he real b u si n e ss l if e . They operate under very turbulent social economic and political environment. hence tactful management of such organization to plan to execute guide. Conflicting roles and divergent interest they are also fraught with the use risk and uncertainties. It has to achieve goal which themselves are changing it is therefore a problem highly complex and ticklish. p r o gr a m m e . T h e m a r k e t i n g re sear ch i s t he pr ocess whi ch li nks t o m a n u f a c t u r e r .
TABLE OF CONTENTS Acknowledgement Preface CHAPTER 1: Overview of banking industry in India CHAPTER 2: A Saga of Banking Excellence in Banking (PUNJAB NATIONAL BANK) CHAPTER 3: Performance of the PNB CHAPTER 4: Organisational Structure CHAPTER 5: Home Loan CHAPTER 6: PNB Home Loan CHAPTER 7: Suggestions & Troubleshooting Tips CHAPTER 8: Bibliography 6 Prepared by: Prashant Srivastava .
• TYPES OF BANKS • BANKS IN INDIA OVERVIEW OF BANKING INDUSTRY IN INDIA 7 Prepared by: Prashant Srivastava .
on the other hand. The commercial banks and certain variants of NBFCs are among the oldest of the market participants. Imperial bank carried out limited central banking functions also prior to establishment of RBI.e. SBI took over control of eight private banks floated in the erstwhile princely states. RBI acquired control of the Imperial Bank of India. which was renamed as State Bank of India. are relatively new entities in the financial market place. Under the act. The total number of banks was thus reduced 8 Prepared by: Prashant Srivastava . The Act also vested licensing powers & the authority to conduct inspections in RBI In 1955. Non-Bank Financial Companies (NBFCs) and other market intermediaries such as the stock brokers and money-lenders. to force compulsory merger of weak banks with the strong ones.The major participants of the Indian financial system are the commercial banks. specialized financial institutions and the state-level development banks. Bank of Bombay and Bank of Madras. This regulation brought Reserve Bank of India under government control. was the earliest Indian Bank . Banking in India on modern lines started with the establishment of three presidency banks under Presidency Bank's act 1876 i. all presidency banks were amalgamated to form the Imperial Bank of India. investment institutions. The FIs. Bank of Calcutta. set up in 1870. In 1959. encompassing termlending institutions. RBI was empowered in 1960. the financial institutions (FIs). In 1921. RBI got wide ranging powers for supervision & control of banks. Reserve Bank of India Act was passed in 1934 & Reserve Bank of India (RBI) was constituted as an apex bank without major government ownership. making them as its 100% subsidiaries. It engaged in all types of commercial banking business except dealing in foreign exchange. Banking Regulations Act was passed in 1949. Bank of Hindustan.
The amendment of Banking Regulation Act in 1993 saw the entry of new private sector banks. The Narsimham Committee report suggested wide ranging reforms for the banking sector in 1992 to introduce internationally accepted banking practices. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (60 of the Act.the regulatory. Banking Segment in India functions under the umbrella of Reserve Bank of India . This segment broadly consists of: Commercial.50 crores & above. In 1980.from 566 in 1951 to 85 in 1969. In July 1969. At the same time. Banks Co-operative Banks Commercial Banks The commercial banking structure in India consists of: • • Scheduled Commercial Banks Unscheduled Banks Scheduled commercial Banks constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act. government acquired 6 more banks with deposits of more than Rs. This sub sector can broadly be classified into: 1. 1934. 9 Public sector Prepared by: Prashant Srivastava . this status also subjects the bank certain conditions and obligation towards the reserve regulations of RBI.200 crores. government nationalised 14 banks having deposits of Rs. central bank. Some co-operative banks are scheduled commercial banks albeit not all co-operative banks are. Being a part of the second schedule confers some benefits to the bank in terms of access to accomodation by RBI during the times of liquidity constraints. Nationalisation of banks was to make them play the role of catalytic agents for economic growth. however.
3.within this category there are three sub categories of banks viz state co-operative banks.2. (a) Short term lending oriented co-operative Banks . Primary Urban Co-op Banks: 2.within the second category there are land development banks at three levels state level. Primary Agricultural Credit Societies: 3. District co-operative banks and Primary Agricultural cooperative societies. Private sector Foreign banks. Public Sector Banks Private Sector Banks 10 Prepared by: Prashant Srivastava Foreign Banks . Land Development Banks: BANKS IN INDIA s S. (b) Long term lending oriented co-operative Banks . CO-OPERATIVE BANKS There are two main categories of the co-operative banks. district level and village level. State Co-operative Banks: 5. The co-operative banking structure in India is divided into following main 5 categories: (Visit us again for details of each category) 1. N. District Central Co-op Banks: 4.
21. 11 12. 15. 19. 10. 14. 5. 18.A DBS Bank Ltd HSBC Ltd. 8. Centurion Bank Ltd. 13. Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab and Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank IDBI Bank Bank of Punjab Ltd. Jammu and Kashmir Bank Ltd. Dhanalakshmi Bank Ltd. 9. 17. 2.1. 20. 4. UTI Bank Ltd.V Abu Dhabi Commercial Bank Ltd American Express Bank Ltd. Development Credit Bank Ltd. ICICI Bank Ltd. Kotak Mahindra Bank Ltd. 16. Karnataka Bank Ltd Karur Vysya Bank Ltd Ratnakar Bank Ltd SBI Commercial and International Bank Ltd South Indian Bank Ltd United Western Bank Ltd ABN-AMRO Bank N. 6. Standard Chartered Bank 11 Prepared by: Prashant Srivastava . BNP Paribas Citibank N. HDFC Bank Ltd. 3. 7. IndusInd Bank Ltd. Yes Bank Ltd Bank of Rajasthan Ltd. Federal Bank Ltd ING Vysya Bank Ltd.
The bank was nationalized in July 1969 along 12 Prepared by: Prashant Srivastava . undivided India. Punjab National Bank (PNB) has the distinction of being the first Indian bank to have been started solely with Indian capital.• ABOUT PUNJAB NATIONAL BANK • HISTORY OF PNB • VISION & MISSION A SAGA OF EXCELLENCE IN BANKING Established in 1895 at Lahore.
Bahrain. Kuwait. London. Strategic business area covers the large Indo-Genetic belt and the metropolitan centres. UAE.with 13 other banks. Rupee drawing arrangements with M/s UAE Exchange Centre. Doha. M/s Al Fardan Exchange Co. Strong correspondent banking relationships with more than 217 international banks of the world. Ranked as 248th biggest bank in the world by Bankers Almanac. the bank has grown in size and stature to become a front-line banking institution in India at present A professionally managed bank with a successful track record of over 110 years.4668 Offices including 238 Extension Counters spread throughout the country. M/s Bahrain Finance Co. More than 50 renowned international banks maintain their Rupee Accounts with PNB. Qatar. 20 different foreign currency accounts are maintained at major centres all over the globe. M/s Thomas Cook Al Rostamani Exchange 13 Prepared by: Prashant Srivastava . From its modest beginning. Well equipped dealing rooms. Largest branch network in India . M/s Bahrain Exchange Co.
ABOUT PUNJAB NATIONAL BANK With over 38 million satisfied customers and 4668 offices. UAE. Dubai.Co. The 14 Prepared by: Prashant Srivastava . Ruwi. Sultanate of Oman. PNB has continued to retain its leadership position among the nationalized banks. and M/s Musandam Exchange.
17% respectively.091 crore. PNB has achieved significant growth in business which at the end of March 2009 amounted to Rs 3.77% and 0. with assets of more than Rs 2. Gold coins & asset management business. PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its ‘IT strategy’ follows the ‘Business strategy’ so as to arrive at “Best Fit”. 46. PNB has remained fully committed to its guiding principles of sound and prudent banking. As on March’09. the Bank has the Gross and Net NPA ratio of only 1. Today. PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (4668 including 238 extension counters and 3 overseas offices).72% was also higher than the respective national goals of 40% & 18%. one of the major achievements of the Bank is covering all the branches of the 15 Prepared by: Prashant Srivastava . the bank has also entered the credit card & debit card business.53% & agriculture credit to adjusted net bank credit at 19.463 crore.98% and 5. bullion business. The bank has made rapid strides in this direction. etc. Apart from offering banking products. Along with the achievement of 100% branch computerization. Since its humble beginning in 1895 with the distinction of being the first Indian bank to have been started with Indian capital. the bank achieved a net profit of Rs 3. life and non-life insurance business.900 crore.03% with Tier I and Tier II capital ratio at 8. During the FY 2008-09. Bank has a strong capital base with capital adequacy ratio as per Basel II at 14. its’ ratio of priority sector credit to adjusted net bank credit at 41.During the FY 2008-09. with 39% share of low cost deposits. maintaining its number ONE position amongst nationalized banks.bank enjoys strong fundamentals.05% respectively as on March’09. large franchise value and good brand image. 64. Besides being ranked as one of India's top service brands.
the bank is planning to realize its global aspirations. Towards developing a cost effective alternative channels of delivery. With the help of advanced technology.408 villages. A second branch in Hong Kong at Kowloon was opened in the first week of April’09.Bank under Core Banking Solution (CBS). Shanghai. thus covering 100% of it’s business and providing ‘Anytime Anywhere’ banking facility to all customers including customers of more than 2000 rural branches. The Bank has started several innovative initiatives for marginal groups like rickshaw pullers. Kazakhstan. The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets. etc. Bhutan. The Bank has already achieved 100% financial inclusion in 21. payment of bills of utilities. Kabul and Norway. The bank also has a joint 16 Prepared by: Prashant Srivastava . vegetable vendors. Canada and Singapore. purchase of airline tickets etc. Bank is also in the process of establishing its presence in China. DIFC Dubai. diary farmers. the Bank’s mission is “Banking for card based technology enabled Financial Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach out to the last mile customer. construction workers. the bank with more than 2150 ATMs has the largest ATM network amongst Nationalised Banks. The BC/BF will address the outreach issue while technology will provide cost effective and transparent services. Dubai. the Bank has been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned. Backed by strong domestic performance. In order to increase its international presence. the Bank continues its selective foray in international markets with presence in Hong Kong. Singapore. With it’s policy of inclusive growth in the Indo-Gangetic belt. UK.
Nepal. Bank continues with its goal to become a household brand with global expertise. Further.venture with Everest Bank Ltd. ‘The Banker’ listed PNB at 250th place. Australia and Indonesia. (EBL). PNB is at the 1166th position among 48 Indian firms making it to a list of the world’s biggest companies compiled by the US magazine ‘Forbes’. Under the long term vision. HISTORY OF PUNJAB NATIONAL BANK 17 Prepared by: Prashant Srivastava . Bank proposes to start its operation in Fiji Island. Amongst Top 1000 Banks in the World.
including PNB's head office. but continued to operate in Pakistan. PNB acquired Hindustan Commercial Bank Limited in a rescue. PNB acquired Bhagwan Dass Bank Limited. 18 Prepared by: Prashant Srivastava . 1965- After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks. 19781988- PNB opened a branch in London. 190419391947- 196019611963- PNB amalgamated Indo-Commercial Bank Limited (established in 1933) in a rescue. The Government of Burma nationalized PNB's branch in Rangoon (Yangon). PNB acquired Universal Bank of India. PNB also had branches in East Pakistan (Bangladesh). PNB lost its premises in Lahore. 1993- PNB acquired New Bank of India. 1969. which the Government of India had nationalized in 1980. Partition of India and Pakistan at Independence.1895- PNB established in Lahore by Lala Lajpat Rai. PNB established branches in Karachi and Peshawar. 1969- The Government of India nationalized PNB and 13 other major banks on 19th July. which may have moved to Karachi.
VISION 19 Prepared by: Prashant Srivastava . with the result that its shareholders received no payment for their shares. Kazakhstan.19982003- PNB set up a representative office in Almaty. the oldest private sector bank in Kerala. Nedungadi Bank's shares had zero value. PNB took over Nedungadi Bank (established the bank in 1899). It was incorporated in 1913 and in 1965 had acquired selected assets and deposits of the Coimbatore National Bank. At the time of the merger with PNB.
"To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains providing entire range of financial products and services under one roof" MISSION "Banking for the unbanked 20 Prepared by: Prashant Srivastava .
• FINANCIAL PERFORMANCE OF PNB • AWARDS & RECOGNITION • PEST ANALYSIS • SWOT ANALYSIS Financial Performance of the Bank Punjab National Bank continues to maintain its frontline position retained its NUMBER ONE position among the nationalized banks in terms of number 21 Prepared by: Prashant Srivastava .
22 Prepared by: Prashant Srivastava . Deposit.67 22. operating and net profit in the year 2008-09.Crores) Mar'07 3617 1540 139860 96597 236456 Mar'08 4006 2049 166457 119502 285959 Mar'09 5744 3091 209760 154703 364463 CRAR 26. improved margin management. total Business.of branches.55 24. more inclusive approach to banking.47 26.15 • Respective figure for the corresponding financial year AWARDS & RECOGNITIONS "Best IT Team of the Year Award"At the IDRBT Banking Technology awards for the year 2005-06. The impressive operational and financial performance has been brought about by Bank’s focus on customer based business with thrust on SME. The performance highlights of the bank in terms of business and profit are shown below: Parameters Operating Profit* Net Profit* Deposit Advance Total Business (Rs.02 41. Agriculture. better asset liability management. thrust on recovery and increased efficiency in core operations of the Bank. Advances.
SKOTCH Challenger AwardFor Change Management for the year 2005-06 Best IT User in Banking & Financial Services Industry – 2004 By NASSCOM in partnership with Economic Times.2005 by Institute of Directors. Golden Peacock AwardFor Excellence in Corporate Governance .2002. FICCI's Rural Development AwardFor Excellence in Rural Development – 2005 Skotch Challenger Award for Exemplary use of Technology For becoming a pioneer in Public Banks – 2005 Golden Peacock National Training . 2004 & 2005 Banking Technology Awards 2004 Runner up in 'Best IT Team of the Year Award 2005' 23 Prepared by: Prashant Srivastava . 2003.2004 & 2005 By Institute of Directors National Award for Excellence in SSI Lending Ranked 2nd for 4 consecutive years .
London July 2005 PEST ANALYSIS 24 Prepared by: Prashant Srivastava . 2002 & 2003 by Federation of Indian Exporters Organization (FIEO) 21st Amongst Top 500 Companies By the leading Financial Daily the Economic Times. January 2006 368 amongst Top 1000 Global Banks The Banker.2004 Runner up in 'Best Bank (public Sector) of the year Award' –2005 Niryat Bandhu Gold Trophy For excellence in export performance for 3 consecutive years 2001. Finacle & TFCI Money Outlook Award . June 2005 9th amongst India's Top 50 Most Trusted A.Jointly Adjudged by IBA.C Nielson Survey. The Economic Times Dec 2004 Service Brands 3rd Rank amongst Banking Sector in India 323rd Rank in the World The Bankers' Almanac.
SWOT ANALYSIS 25 Prepared by: Prashant Srivastava .
of customers • Fast adaptability to technology • Brand recognition • Excellent Training • Home to home banking services • Diversification towards other field • Globalization Weaknesses Opportunities • Fast growing Indian economy • High growth in banking sector • Liberal markets • Micro financing Threats • Large no. of market players • Decentralized decision making • Awards & Incentives • Providing better services • Building long term customer relationships • • • Fast Decision making Competitive edge Changing culture 26 Prepared by: Prashant Srivastava .Objective Analysis of PNB Strengths • • Wide network Large no.
• STRUCTURE OF THE ORGANISATION • HIERARCHY • MANAGEMENT OF PNB • ABOUT M. & CHAIRMAN SINCE INCEPTION ORGANISATIONAL STRUCTURE 27 Prepared by: Prashant Srivastava .D.
The delegation of powers is decentralised upto the branch level to facilitate quick decision making. Bhikhaji Cama Place. HEAD OFFICE 7. New Delhi-110026 CGM OFFICES CIRCLE OFFICES BRANCHES HIERARCHY 28 Prepared by: Prashant Srivastava .Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which the branches function.
Chairman Executive Director(ED) Chief General Managers (CGM) General Managers (GM) Deputy GM Assistant GM Chief Managers Senior Managers Managers Officers Clerical/ Subordinates MANAGEMENT OF PNB 29 Prepared by: Prashant Srivastava .
K. Nair Mohan Lal Bagga Mushtaq A Antulay Gautam P.A.M Fonseca S. Ravneet kaur L. C.Name M V Tanksale Nagesh pyadh Smt. R. of India Nominee Director RBI Nominee Director Director rep. Category Officer Employee Director Workmen employee Director Part –time non Official Director Part –time non Official Director Part –time non Official Director Share Holder Director Share Holder Director Share Holder Director 30 Prepared by: Prashant Srivastava . Khurana P. Kandelwal Vinod Kumar Mishra Tribhuwan Nath Chaturvedi Devinder Kumar Singla G R Sundaravadivel Designation Executive Director Executive Director Govt.
1942 1943 – 1953 1953 – 1954 1954 – 1959 1960 – 1964 1964 – 1967 1968 – 1972 1972 – 1975 1975 – 1977 1977 – 1980 1980 – 1981 1981 – 1985 1985 – 1989 1990 . Lal Chand R.1913 1913 . Lal Chand Bhagat Ishwar Dass R.B.R.1898 1898 – 1905 1905 – 1910 1911 – 1912 1912 . Dewan Badri Das Lala Yodh Raj Shriyans Prasad Jain Shanti Prasad Jain Ram Nath Goenka Kamalnayan Bajaj Somesh Chandra Trikha Prakash Tandon T. Hira Lal Lala Dhanpat Rai Dr. Baluja J.B. Varshneya Rashid Jilani Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 31 1895 .P. Chopra S.B.1915 1917 – 1920 1921 – 1931 1931 – 1937 1938 .B. Lala Sukh Dayal Bhagat Ishwar Dass Dr.2000 Prepared by: Prashant Srivastava . Gupta S.NAMES OF CHAIRMAN & MANAGING DIRECTORS ALONG WITH THEIR TENURE SINCE THE INCEPTION OF PUNJAB NATIONAL BANK Names of Chairman & Managing Director S/Shri Sardar Dyal Singh Majithia R.S. Maharaj Krishna Kapur R. Tuli O.L.L.
Chakrabarty 2000 – 2005 2005 .S. Gupta Dr. K. Kohli S.C.C.24 25 26 S.2007 2007 – 2009 32 Prepared by: Prashant Srivastava .
Availing various types of house loans to suit your individual needs at the lowest rates & easy financing can now fulfill the need for a house of your own. Home loan is not a one-time decision. Today there are unlimited numbers of banks in the 33 Prepared by: Prashant Srivastava .• FEATURES OF HOME LOAN • HOME LOAN INDIA • TYPES OF HOME LOAN • WHY TAKE A HOME LOAN • CHECK LIST FOR HOME LOAN • RBI DIRECTIVES FOR HOME LOAN HOME LOAN Home loans are provided based on the market value. do review the market periodically before availing them. mainly estimation given by banks or the registration value of the property.
But is it really?? Buyers tend to make mistakes while entering into deals. However the loan agreement should be finalized only after reading the terms and conditions carefully. The loan amount would be sanctioned or approved for you. based on your repayment capability. it may seem easy getting yourself a loan. You can apply for a Home loan even before you select your property. which may not be beneficial for them. Features of house loan: • Purpose: For purchase of house from builder / resale and construction / extension of existing house. 34 Prepared by: Prashant Srivastava . Given this scenario. income and repayment capacity. • Loan amount: You can avail for Home loans need based depending on your eligibility. • Security: Home loan is a secured loan wherein collateral are required.country wanting to give out Home loans. so better compare all the variables before signing a loan agreement by different banks.
Do your own analysis and check the impact of your repayment of home loan on your monthly expenditure. 2. Buying a house. banks help in financing your dream home via home loans. Interest rates 35 Prepared by: Prashant Srivastava . Eligibility Banks determine your eligibility based on your repayment capacity and discuss about the loan amount up front. take your own time and evaluate your expenses and do a market survey about the property buying process. Salaried individuals can increase their eligibility by showing their performance linked income or bonus earned. Planning to avail a home loan. it’s recommended to make sure the EMI of your home loan do not exceed more than 50% of your gross monthly income. could affect you financially. by clearing your outstanding debts. Secondly. 1. which is way beyond your range. you must adhere underneath points: Firstly. by stretching your loan tenure. The eligibility for acquiring a home loan is augmented by clubbing income of your father/spouse/mother/son.• Loan tenor: The maximum loan tenure is 25 years. as a thumb rule.
Floating rate is beneficial if the interest rate falls in the future.e. b) Floating rate loans A consumer is exposed to market risk and his gain or loss depends on the interest rate condition prevailing in the market. if you decide to opt for a fixed rate loan. so do compare them. which remains the same through out the tenure of the loan. A floating rate is considered nontransparent and is also known as 'adjustable rate'. if two banks give you the same amount of loan but at different interest rates do your math and work out what's best for you. a) Fixed interest loans Charge an interest. 36 Prepared by: Prashant Srivastava . Thirdly. fixed and floating rate of interest.An important factor that goes into your EMI calculations is the interest rates. This means that the consumer is immune to market risk or the possible upward movement in the interest rates. which may vary from bank to bank. you should take into account the cost of doing so and the interest rate benefits of switching. Also do a complete and detailed analysis of the various options like the interest rates i. Fourthly. Hence. you can still switch to a floating rate loan in the future and vice versa as and when rates go in your favour and if you do decide to switch. fixed rate is a good option when the interest rates are expected to move up in the future.
If the EMIs may come out a lot more than what you can afford on a monthly basis. There are various kinds of insurance covers available for you. So even though the interest rate may be lower. 5. loan with a daily or monthly reducing balance is better than an annual reducing balance loan.For a given interest rate. 3. Advance EMI Advanced EMI is the number of equated monthly installments in the form of post dated cheques.90% + service tax. 1350/ documentation charges and 0. many banks may insist on getting your home insured to safeguard their interest. paid out in advance at the time of disbursement of loan. it usually adds up to being expensive. Other costs The interest rates and EMIs are not the only cost factor. 37 Prepared by: Prashant Srivastava . Rs. legal fee. Apart from getting the mandatory ones you should try to get insurance as per your circumstances. Make sure you work out as to how much these other costs add up to. Insurance covers (an added cost) Also. is to be paid when you apply for a loan and other fees paid at closing. Interest rates vary depending on the tenure of the loan. Processing fees. valuation fee. You also have a choice of getting insured from another company without any objection from your bank. the amount of the loan and your personal profile. administration fees. try to redo the math with changes in the tenure and loan amount (if possible). 4.
all deals and offers agreed upon are supported by relevant papers. pre-payment charges along with interest-schedule.6. So make sure you always ask for a letter on the banks letterhead mentioning the likes of. Document required Most importantly. processing fees. Self employed and salaried require different documents to support the deal. Do not leave anything for the executive to fill-up. But this early payment might invite a pre-payment clause. make sure you recheck all terms and conditions. This may amount to fraud and could land you in trouble. Even if it takes you a few hours to fill-up the form. Banks make their money off the interest they charge and the sooner you pay back a loan the less money you will have to pay in interest. Do not under any circumstance give any false information. Do not sign any blank documents. please do so. Do make sure you understand and agree with each of the clauses in the documents. Penalties Once you have received the loan do your best to pay it back as quickly as possible. exact rate of interest. It's always better to get a legal opinion from someone on your loan papers. Before signing the documents. When it comes 38 Prepared by: Prashant Srivastava . 7.
penalties are binding. a Pre-payment penalty is charged.to Home loans. Browse through the glossary or search for a term through the menu to resolve any doubts. So you should know about such penalties beforehand to avoid future misunderstanding between you and the bank. Home loan glossary Confused in the Home Loan jargon? Our glossary will help you in understanding the basic home loan related terms. Glossary of Home Loan terms A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 9. Acceptance Letter Acceptance letter is the letter that a borrower or applicant provides on reading the terms of the issue. 8. and communicate his willingness to accept the loan by way of an acceptance letter within a particular time frame which varies between 1-3 months from the date of the sanction letter and also pay the requisite administrative fee. like if you chose to pay up your entire money before the tenure. 39 Prepared by: Prashant Srivastava .
and you are thinking to start your journey of buying a new house. loaded enough (financially. investing in property or are looking forward to refinance. Whether you are Non Resident Indian or Resident of India. Consider answering these questions to yourself: 40 Prepared by: Prashant Srivastava .HOME LOAN IN INDIA It is definitely one of the major things that you can board on in your lifetime. looking to move to a new house. of course) to be able to build a house as soon as he wants to. The bad news is: however is that not everyone in this globe is like you.
safer and comfortable. it is also going to be a very informative monetary journey.To really say "own" it. There are thousands of home loan companies waiting to provide you with your financial needs. is an easier financial option to own a house. lines of credit or bridging loans!! And we have covered the basics of your journey here. Not only is it going to be an emotional experience.• • • • Which type of home loan should I prefer? Will it be the best scheme that will be fitting my budget? Can any insurance plan cover for an unpaid monthly due? Is there a fine or penalty or even some reward as well if the whole amount of loan is paid ahead of the due date? These are just a dash of the questions to be answered when considering taking the plunge…into the loan journey. have you got the answers to your questions? Start answering them now and take the plunge! With so many real estates sites coming up in Indian market. when you can virtually see all across the home you need to purchase by the various real estate simulation programs and videos available. Yet. finding an ideal house isn't that big a issue nowadays. Part of the success of this whole financial move is 41 Prepared by: Prashant Srivastava . right? . there are so many things that you need to be informed with. as you will be dealing with the whole caboodle of the mortgage process along the way. A home loan. but you still need to purchase it. also popularly identified as a mortgage. offset accounts. Once you've decided to endeavor on a home loan. Got a fix on fixed rate or variable rates. Going back to you future house owner. The different home loan types are hereby presented to you to make your journey that more smoother or step by step.
There are many home loans provider in the market to make your dream come true. you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India. 42 Prepared by: Prashant Srivastava . the greater part relies on the efficiency of your chosen mortgage company.partly in your hands. TYPES OF HOME LOAN Owning a piece of land or property is a lifetime dream for every individual. But before you opt for any home loan provider.
: addition of an extra room etc. Through home conversion loan. • • Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required.And the most important thing is you should know about each and every term related with Home Loans before applying for a Loan. the existing loan is 43 Prepared by: Prashant Srivastava . • Home Purchase Loans: These are the basic forms of home loans used for purchasing of a new home. For e. healing and renovations in a home that has already been purchased. • • Home Construction Loans: These loans are available for the construction of a new home. Home Equity Loans.g. Home construction Loans. There are different types of home loans tailored to meet your needs. Home Improvement Loans: These loans are given for implementing repair works. Land Purchase Loans etc for different schemes available in the market. Home Improvement Loans. Home Extension Loans. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property. You can take different types of home loans like Bridge Loans. Home Extension Loans: These loans are given for expanding or extending an existing home.
transferred to the new home including the extra amount required. That entire house hunting every few years. • Land Purchase Loans: These loans are available for purchasing land for both construction and investment purposes. This would seem to be the answer from the maximum number of episodes of Kaun Banega Crorepati (KBC). until a buyer is found for the home. when she has decided to change her fortunes first with Abhishek! Jokes apart. killing rents would be a thing of 44 Prepared by: Prashant Srivastava . • Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. After all it’s what been proved by Maslow’s Law of Hierarchy as well. grumpy landlords. despite recently of course. Why take a Home Loan? What's an average middle class Indian's most cherished dream? A date in world trips in islands with Aishwarya Rai in complete solitude. purchasing and moving into a dream house would generally rank among the top three things on the wish list of most people. eliminating the need of pre-payment of the previous loan. The bridge loans help finance the new home.
when the sun shines. Hey. There are other home loan tools like calculators suitably devised to assist you. with the result that housing finance loans that came at an interest rate of 16. To top it all.5% to 18% four years ago are now available at 11.the past.5% to 13% or lower. The Budget 2000's allowed interest payment up to Rs 1 lakh and principal payment of Rs 20. Don’t you??? Taking a home loan nowadays has become very simpler. it’s the best time to make hay. A basic checklist for home buyers like proper and clear title and correct proposition will help you make a safe and informed purchase. The RBI has been regularly slashing interest rates. we present to you the home loan documents checklist that you need to ensure is with you. 45 Prepared by: Prashant Srivastava .000 to be exempted from income tax. you even get to use nails to hang your favorite paintings and pictures. Now. Hereby. we pre assume that you are seeking some home loans to purchase a home or on the look out for some information related to Home loans or Home Loan Types or you must read some Home Loan Articles. before you apply for a home loan. Isn’t it? Check list for Home Loans If you have arrived here by the help of search engine. the Housing Finance Companies (HFCs) are aggressively wooing customers. Each year the Finance Minister's generosity during the Budget seems to be solely concentrated for the housing sector and construction sector.
Confirmation of Income • If you are a salaried person. Appointment Letter Salary Certificate Retainer ship Agreement. If you are self-employed. please provide two recent consecutive pay slips or a copy of your employment contract or a letter from your employer. Last three years income tax returns duly filed and certified by the Income Tax Authorities Similar Document -separately for each co-applicant. • • • • • • • Employment Proof • • Identity card issued by your employer Visiting card Age Proof • • • • • • Passport Voter's ID card PAN card Ration card Employer's Identity card School leaving certificate Prepared by: Prashant Srivastava 46 . if appointed as a consultant FORM 16 issued by the employer in your name. please provide copies of your last two Financial Accounts as prepared by your accountant.
if required by the Bank • • Property Title Proof • Original Sale agreement with Builder/Developer duly registered. if you are staying currently on rent Bank Pass book Allotment letter from your company if you are residing in company quarters.• Birth certificate Residence Proof • • • • • • Ration card Passport PAN card Rent agreement. Registration receipt 47 Prepared by: Prashant Srivastava . if selfemployed. Name Change Proof (If Applicable) A copy of the official gazette b. A copy of a newspaper advertisement publicizing the name change c. Any other photocopies of investments held. Marriage certificate Investment Proof (If Applicable) • Bank statement for the last six months of all operating and salary accounts Bank statements for the last six months of all current accounts.
society or development authority as applicable Personal Guarantees. from a local real estate agent signed by branch manager.. Copies of receipts of payments made to builder/developer. No Objection Certificate from the developer. if applicable A certificate by the legal advisor of the builder to the effect that the builder has a good reputation and it is free from encumbrance and other charges. Allotment letter Possession letter Lease agreement. if applicable. In case of alternate or additional security. For self-construction: Approved plans and clearance certificates along with estimates Post dated cheques for the EMIs. or rental manager.Photocopies of title deeds.• • Tripartite agreement from builder/developer Land documents indicating ownership. if applicable (Property bought from a development authority) Mortgage deed if the Bank opts for a registered mortgage. documents for the same depending upon the security details.g. 48 Prepared by: Prashant Srivastava . or a rental appraisal. • • • • • • • • • • • • • Confirmation of Rental Income Copy of the existing tenancy agreement. Certified true copy of approved plan. A certificate from builder's Chartered Accountant certifying that the builder has not mortgaged the property anywhere else. e.
Deposit or Investments
Evidence of your deposit or investment funds, i.e. a bank statement or term deposit receipt. For low equity loans (5-19% deposit), copy of your savings account statements over the last six months.
Sale and Purchase Agreement
If you are planning to buy a property, please provide a copy of the successful sale and purchase agreement signed by both you and the vendor. If you are planning to sell or have already sold your existing property, please provide a copy of that property's sales and purchase agreement.
New Customer to the banks of India
If you are refinancing from another bank please provide copies of your loan statements covering the last six months. Please provide copies of your account statements covering the last six months from your current bank. Please provide copies of your identification and if you have arrived in the country within the last 5 years, please provide a copy of your passport.
Government Valuation and rating System A copy of the latest Government or Ratings Valuation is to be provided. Depending on the age and value indicated in conjunction with the amount
49 Prepared by: Prashant Srivastava
required to borrow, the Bank may require a Registered Valuation and your Banker will advise you
New RBI Directive for Home Loans
The Reserve Bank of India (RBI) has in the latest directive asked the Indian banks to be more "fair and transparent" while signing their agreements with the consumers. This has come following complaints from various consumer sections regarding home loans. • It has emphasized on the fact that while giving a home loan, the banks should not tie their loans with their own prime lending rates (PLR) which often results in pro-bank and against consumer interest.
Households should get credit counseling before signing any loan agreement. In such case, banks should give credit counseling to customer before giving a loan. Any non-governmental organization can also give independent credit counseling to small borrowers.
Prepared by: Prashant Srivastava
Consumers often complain of not receiving benefits of falling interest rates as banks tie their floating rate loans with its PLR and even when rates fall, the banks kept the PLR unchanged. But when interest rates are hiked, the banks increase the benchmark rate, thus making customers pay a higher rate and consequently increase the number of EMIs too. The RBI has asked the banks to mend rules for the same.
Individual borrowers should ask for the exact tenure and EMI while taking a fixed rate loan. The RBI has also resolved to look into all consumer complaints if it is bought to the regulator's notice.
The IRDA (insurance regulator) has powers to take action against banks if a customer feels cheated while buying an insurance product. On its regulatory role, the RBI is trying to maintain a balance between the extent of freedom granted to the banks and the objectives of governance.
RBI has made it mandatory for all banks - including private and foreign banks - to offer a passbook to their customers with the address and telephone number of the nearest branch.
Prepared by: Prashant Srivastava
The RBI has directed the Indian Banks' Association to come out with a single "do not call" registry or when a customer adds his name to a single bank registry it should then stop unsolicited calls from all banks.• Customers have often been harassed by banks' call centers where there is no accountability of the query made. This way the RBI feels would inculcate more consumer friendly practices among Indian banks. • On rising credit card frauds and wrong statements given by the banks. the RBI has asked the customers to approach the ombudsman to redress their problems. 52 Prepared by: Prashant Srivastava . The "do not call" registry has also been flouted by banks as customers are bombarded with unnecessary product offerings.
Types of Home Loans Available: • • • • • • Home Equity Loans Home Extension Loans Home Improvement Loans Home Purchase Loans Land Purchase Loans Mortgage Loans Many banks and financial companies offer home loans. 53 Prepared by: Prashant Srivastava . consider few points as mentioned below. But before choosing any home loan option. There are various types of home loans offered by different financial institutions. you need to know about home loans processes.Choosing the right home loan If you are planning to buy home. You need to figure out which type of home loan is beneficial for you. troubleshooting and how to choose the right home loan for house that falls within your budget.
You need to choose between fixed and floating rate home loans. There are loan tenures available for upto 25 years. In this mode.Adjustable Rate Home Loan Bank of India . Loan Tenure: The loans provided by financial institution are offered in tenures or period of years. But you need to check out the facts first with the loan providing firm. There are loans offered by banks to Resident Indians and NRIs for ready property. under construction property.There are also no penalty option offered by few finance companies. you can opt to pre-pay up to 25% of your loan every year. 1961. No Penalty option . Tax Benefits . self-construction and home improvement.ICICI Bank Home Loan HDFC Bank .## List of Premium Banks Offering Home Loans: • • • ICICI Bank .Star Home Scheme Prepared by: Prashant Srivastava 54 .You should know the right of your tax benefits on home loans. Pre-payment is permitted after a minimum of 6 months following loan disbursal.Property Types: You should know more about type of property in lieu of which you seek loan. You should check out the tenure for loans available in the market. Repayment Options . Many banks and financial institutions will provide you with the option of switching from a floating rate home loan to a fixed rate home loan once a year at no extra cost. Resident Indians are eligible for certain tax benefits on principal and interest components of a housing loan under the Income Tax Act.
• ELIGIBILITY 55 Prepared by: Prashant Srivastava .Housing Offer Citibank.• • • • Standard Chartered .Building & Renovation of House Always check with a financial home loan expert or financing company to understand home loan processes and to avail the best bargain on your home purchase.Home Assist State Bank of India .SBI Unique Housing Scheme Bank of Baroda .
modification and even renovating of an already existing building or flat. repairing. and provide the policies accordingly.• DOCUMENTATION • EXTENT OF LOAN • RATE OF INTEREST • REPAYMENT & SECURITY • FEATURES & CONDITIONS OF PNB HOME LOAN PNB HOME LOAN Punjab National Bank provides its customers with various Home loan policies and features at highly competitive rates. the buyers get the opportunity of having a life insurance covered against him. They know the needs of the Indian customers that they have to deal with. when the PNB Home loans are being finalized and along with the loans. This period of time is determined. The basic grounds on which the PNB Home loans are provided are: • Extending. and have an even easier process of repayment that is given over a prearranged time period. The PNB Home Loan cater mainly to the requirement of the middle class individuals of India. The PNB Home loans are very easily available. on a regular basis. as Pnb itself is one of the leading public –sector banks of the nation. 56 Prepared by: Prashant Srivastava .
5%. The maximum amount of the loan amount sanctioned under PNB Home loans is need based. who is applying for the loan. must be greater than or equal to 1.• Purchase or building of a new house or flat. However there is a certain limitation of the loan amount that an individual may take from the bank. a person between the age group of 18 to 60 years may be qualified to apply for the PNB Home loans. it has also to be noted that the annual income of the individual. Along with this. Apart from all these details. from the day it has been finalized with the bank. and keep varying from one time period to another.2 Lac INR. Eligibility • Age of the applicant must be less than 60 years. and the time period may vary from a minimum of 5 years to a maximum of 25 years. account is regular and no IR irregularity persist. the PNB Home loans also enable us to choose between fixed and floating rates that may be applicable from time to time. As far as the eligibility is concerned. • Existing home loan borrower can also apply provided their loan Documents Needed 57 Prepared by: Prashant Srivastava . The basic interest of the PNB Home loans may be around 9. It generally takes around 7 days to process the PNB Home loans.
loan can be granted on the basis of power of attorney basis from original allotee where DDA/PUDA/HUDA permit conversion of leasehold into freehold property otherwise advance is not permitted against plot purchased on Power of Attorney basis. Proof of income 3. 11. Education Certificate 6. 2. 12. Photos 7. Income tax return last 3 years along with balance sheets.75% of the estimated cost subject to maximum of Rs. In case of leasehold.1. 9. 5. 20 lacs. Proof of identity 2. Assets liabilities statements. Salary slip & form 16 8. Proof of residence 4. Guarantor Freehold and Leasehold Property 1. 58 Prepared by: Prashant Srivastava . Extent of loan • For construction/purchased of house/flat 75% of the cost of construction or purchase of house/flat. Bank statement or Pass Book where salary or income is credited. Documents of property. 10. The loan can be granted both for freehold and leasehold property. • For carrying out repairs/renovation/additions/alternation: . Estimate of construction.
9. Margin Land/Plot Construction/repair/addition 40% 25% Rate of Interest (Effective from 1st May 2009 – BPLR 11.00% 10.50% 10. 20 lacs for purchase of land/plot • Loan is available maximum upto Rs. 2 lacs for furnishing.25% 10.25% 10.50% Above 20 Lacs.00% 9.75% 9. 8.50% 9.25% 9.75% 11.00%) Housing finance to Individuals including NRI’S /Flexible Housing Scheme Fixed option for loans Floating option for loans Upto 20 Lacs.00% 9.• Loan upto Rs.00% Upto 20 lacs.75% Prepared by: Prashant Srivastava . 10. (i) upto 5 years (ii) Above 5 years & upto 10 years (iii) Above 10 years & upto 20 years (iv) Above 20 years & upto 25 years 59 Above 20 Lacs.75% 10.00% 10.50% 9.
60 Prepared by: Prashant Srivastava . • Minimum 24 advance cheque should be obtained as and when.2006 Documentation charges Rs. 6 cheques remain. 23 cheques should be of the amount equal to the balance. • Installment can be fixed upto maximum age of 65 years. • The income of spouse and earning children can be taken into account provided they are made co-borrower. • Father/Mother can also be made co-borrower in cases property is in single name of his /her son and also clubbing of their income is permitted for determining eligibility criteria.• The interest rate can be fixed or floating • Option can be changed from fixed to floating and vice versa with flat charges of 2% fee on balance outstanding. • Fixed interest rate be reset after a block of 5 year in respect of loans disbursed on or after 1. fresh lot to be obtained out of 24.90% of the loan amount + Service Tax& Education Cess Repayment • Maximum 25 years. 1350 + Service Tax Upfront Fee 0.08.
• Tripartite agreement be executed amongst Housing Board/ Dev Authority / Coop Society / Builder the borrower and the bank where mortgage cannot be created immediately. Important Conditions Loan cannot be granted: 61 Prepared by: Prashant Srivastava . • Loan can be granted for 2nd house in the same city. Security • Equitable/Registered mortgage of immovable property. • Loan can be granted for purchase of house for rental purpose • For take over. • Loan can be sanctioned even if property is in the name of wife/parents provided that the owner is made co-borrower. permission of higher authority is not required.• Loan is to be repaid in EMI within a period of 25 years or before the borrower attains the age of 65 years. • Equitable mortgage of other immovable property or pledge of NSC etc. upto 125% of loan amount if property is being purchased from 1st P/A holder and where there is delay in the execution of Tripartite agreement. • Verification of security is required once in 2 years. Features • Loan can be sanctioned by branch/hub near to the present place of work/posting /residence of the borrower.
• If property is to be used for commercial purpose. • Without approved Map.• For construction in Un-authorized colonies. • SUGGESTIONS & RECOMMENDATIONS 62 Prepared by: Prashant Srivastava .
63 Prepared by: Prashant Srivastava . and then customers suffer many of the problems. which I would like to give the private banks. o In the bank premises front office executives are not co-operative with the customers. PNB should also be focus and aggressive about its home loan products. which I noticed in my project. terms & conditions regarding the product before making sale.• TROUBLESHOOTING TIPS FOR WOULD BE HOME LOAN BUYERS SUGGETIONS & RECOMMENDATIONS There are some suggestions. So. o Most of the private banks and public banks are much aggressive about home loan than PNB. banks should disclose all the fee structure. which are not informed to the customers at the first time. o In my project period I notice that many of the hidden costs are accumulate with the services. higher authority should keep control over theses types of activities. This areo Banks should improve the quality of their products (Specially Home loan). So. So.
which are more competitive. the picture has much changed now. there has been a great progress in the financial status of different income groups but there are many other hassles along the way to add to the woes of an interested home buyer. Real estate in India is going through its own boom.o Most the banks believe in large sales force than the quality sales force. However. Though. This has widened the gap between have and have not for a home loan consumer. Also. 64 Prepared by: Prashant Srivastava . with property prices going higher and higher as there is no tomorrow. No wonder that the dream for owning a home is on the verge of turning into a mirage for most middle class. This is a story with every next typical consumer in a metropolitan city. banks should improve their quality sales force. Property prices have been steady and the interest rates were at historic lows. things for the consumers were fairly good till mid-2004. Troubleshooting Tips for Would Be Home Buyers Past few years have witnessed a paradigm shift in the scenario for home loan seekers. it has been noticed that a consumer gives away a major portion of his increased income as the down payment and later as EMI. there is no sign that this rise in underlying property prices is going to slow down soon. Undoubtedly. With an increase in loan interest rates. which include the competitive sales personnel. So.
• • Let's view the top four problems faced by home loan consumers during the pre-disbursement process as well as troubleshooting tips: Problem I: Most times. If your dream house requires you to hunt a treasure to buy it. the desired home loan amount is not available or if available. 65 Prepared by: Prashant Srivastava . Meanwhile. you may consider a smaller property in the same area. Wait for the overheated property market to cool. Moreover.Get a promise that if you don't receive the home loan amount offered you can press for a refund of your processing fee. -The situation seems a little complex unless promised in writing or in advance. there are a few financial institutions that provide the home loan consumers with a promising interest rate. . then never fasten the process. then getting a fixed rate of interest is just like striving for impossible. But. Don't rely on words but take it in writing or by mail. work out your budget and advantages before treating the property as an investment. Problem II: Generally. then don't make your search a wild goose chase by trying and wasting time in the market. there is no guarantee that you will get your processing fee back if the loan is not sanctioned or if the loan is sanctioned then the individual does not want it. if you are deciding to buy a house with the intention of selling it for quick profits.So what are the options left with a prospective home loan consumer? • If you are planning to purchase a home for the purpose of your own residence.
loan amount gets restricted after being sanctioned due to lower valuation of the property by the bank. You are required to check with the concerned builder/ society/ authority about the format of the NOC that plays a critical role in the procedure. it is always recommend buying a property from a well known builder. Else.Most banks go through your legal documents with a discerning eye if they are submitted along with a home loan application form. get that cleared from the bank to avoid messy disputes and headaches later. .You may ask your lender to get a valuation done before the sanction of the loan so that this does not come as a surprise afterwards. .Problem III: At times. Or. If they have a different format. problems with any other legal/ title document. For that reason. Problem IV: Non availability of title documents and/ or NOCs in the format desired by the bank. the bank will evaluate it at one figure and you will be purchasing it at another. 66 Prepared by: Prashant Srivastava .
67 Prepared by: Prashant Srivastava .
com www.pnbindia. VARSHNEY NEELAMEGHAM .guide2homeloan.google.com Distance education is more popular than ever today.com www. you have likely heard of the name Sallie Mae. Sallie Mae College Loans If you have been researching your financial aid options for school. without having income protection to attend classes at a university. it can 68 Prepared by: Prashant Srivastava . S. Special Education Grants Special education generally refers to students who are differently-abled.N. It allows students to study remotely. WEB SITES: www. However.BIBLIOGRAPHY BANKING LAW AND PRACTICE INDIAN CASES IN MARKETING --- P.
This will ensure that you are not caught short of funds while at school. To do this. and entertainment. a number of loans are created especially for you. books and school supplies. you must add up tuition. special loans that are more flexible can help ensure that you get the funding you need. transportation. Financial Instituion Loans If you need loans for education. This simply means that you must decide how much money you need for school. because you're going to college. If you are returning to school as an adult student. it is generally better to err on the side of caution. and so do not qualify (because of your age) for many student loans. school fees. While you are determining how much you need. You must determine how much you will need each year you are in school and how much you will need overall for the entire length of your degree program. Continuing Education Student Loans If you are taking continuing education classes or certification programs to improve your job skills. living expenses. In many cases. you may use some of this money to pay for your expenses. If you have a job or savings. you may also want to note down your resources. university.” Some of these are meant mainly for undergraduate students. Which Types of Student Loans is Right for You? Depending on the program or school you attend. adult education loans may be for you. Adult Student Loans If you are taking part in adult education classes. for example. these loans can help you pay for your schooling. you may need one or more types of loans: Student Loans Many of the best private education loans are simply marketed as “student loans. 69 Prepared by: Prashant Srivastava . you need to run a need analysis. Higher Education Student Loans If you are a graduate student. these allow you to borrow larger sums. you may well want to consider private loans from financial institutions. Always estimate that you will need more not less. or some other form of school. medical insurance costs. as graduate school tends to be more expensive.also referred to students who require special education needs in other ways. When you are trying to decide how much you will need. Your Student Loans and Need Analysis Before you start applying for student loans and financial aid. while others are intended for any students who require money for school.
Be q Most students and parents today realize how expensive an education is. What Education Loans are? Educational loans work like any other debt. university. Your school's financial aid office can help you fill out forms for loans and can tell you about all the types of financial aid you qualify for. The Federal Stafford loans. Whether you hope to study at a private high school. a private lender. loans are simply specific money that you borrow from a bank. you 70 Prepared by: Prashant Srivastava . If you are worrying about the cost of school. or an overseas school. That is. lending companies. However. chances are excellent that there are educational loans that can meet your specific needs. college loans. credit unions. and private education loans -in fact. tuition costs plus the costs of books and living can quickly add up. There are special distance education loans. Perkins loans. The Federal Government The federal government makes a number of loans available to students.make loans available for students. government based loans. Even if you do not consult any other sources for financial aid. Banks and Financial Institutions Lenders -. banks and other financial institutions will often be able to help you even when other lenders cannot. To apply for federal government funding. so you either need a cosigner or an excellent credit score to qualify. need-based loans. That is. you should not feel that money has to decide your education. If you're looking for loans and other financial aid. These loans tend to be based on your credit history. or some other type of lender. Afterwards. and PLUS loans help students afforded their education. be sure to consult: Your School's Financial Aid Office Your school's financial aid office administers loans offered by the federal government in other sources.Sources of Education Loans There are several sources available to you for education loans. if you are attending a nontraditional school or have specific needs. a college. Some schools also offer their own loans and financial aid solutions. There are a number of financial aid options that can help you. you must fill out the FAFSA (Free Application for Student Aid) form online or at your school's financial aid office. and others -. you simply must visit your school's financial aid office if you wish to be able to afford your college education. these loans tend to be more flexible than other types of loans. Educational loans can be one important part of your overall financial aid package.including banks.
However. This gives students a chance to settle down and find a job before repaying their debts. There are loans created by private sources. unlike other types of loans. educational loans are different in several respects: Different Qualification Features Loans created for students recognize the fact that students have not had time to build up credit rating. many loans created for students allow students to pay back their debts very gradually and only after graduating. Generous Repayment Terms Loans designed to help students pursue an education recognize that students should spend their school time studying. For this reason. 71 Prepared by: Prashant Srivastava . each with separate needs.must repay your debts with interest. This means that students can focus on their studies rather than on their loans. most loans designed for students give students the opportunity to put off repaying their debt until six months after graduation. For this reason. Many feature very low interest rates. The qualifications for such loans are also usually more lenient. Many Various Student Loan Types are Available Since there are so many students. applications for student loans are simpler and more streamlined. Many of these loans are designed specifically to help students with their unique money issues. by the government. there are a number of loans designed to help students pay for their education. Some are need-based and some are not. there is likely a loan available that can help the student meet their educational goals. and by schools. No matter what a student's financial needs. not working to repay a loan. In fact.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.