A PROJECT REPORT

ON
CONSUMERS PERCEPTION TOWARDS STATE BANK OF
INDIA’S LOAN

Project report submitted in partial fulfillment of the requirement

of degree of BACHELORS OF BUSINESS
ADMINISTRATION
BY
YASHIKA JAIN
03091101721
UNDER THE GUIDANCE OF
MS. KULNEET KAUR

SRI GURU TEGH BAHADUR INSTITUTE OF

MANAGEMENT & INFORMATION TECHNOLOGY
AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY

0
 Declaration

I Yashika Jain hereby declare that following documented project titled

Customers Perception towards State Bank of India’s Loan (SBI) product
is an organized and authentic work done by me for the partial fulfillment
for Bachelors Business Administration.

All the endeavors put in the fulfillment of the task are genuine and
original to the best of my knowledge.

(Yashika Jain)
03091101721

1
 Acknowledgement

It is my proud privilege to release the feelings of my gratitude

to several persons who helped me directly or indirectly to conduct this
project work. I thank to my teacher and my faculty guide Prof. Kulneet
Kaur for their sincere guidance and inspiration in completing this project.
I am extremely thankful to the Director, and faculties of the
Institute for their coordination and cooperation.
I am also extremely thankful to all those persons who have
positively helped me and customers who responded my questionnaire,
around whom the whole project cycle revolves.

Thanking You

2
 CERTIFICATE

This is ti certify that Yashika Jain has completed her dissertation entitled
“CONSUMERS PERCEPTION TOWARDS STATE BANK OF
INDIA’S LOAN” submitted in partial fulfillment of the requirements of
the award of the degree of Bachelors of Business Administration.

Thanking You

3
 INDEX
1 Declaration, Acknowledgement & Certificate 1-3

2 Executive Summary 5

3 Company Profile 6-17

 Overview……………………………………………………..
 History………………………………………………………..
 Competitors………………………….……………………….
 Strength/Opportunity & weakness/Threats…………………..

 Different Products…………………………………………....

4  Loan
SBI Awards & Recognitions to SBI………………………………
Product 18-34

 Introduction to Advance Product……………………………...

 SBI Advance Product………………………………….............

5  Significance
Research and scope………………………………………...
methodology 35-39

 Statement the Problem………………………………………...

 Research objectives……………………………………………

6 Analysis of data 40-47

7 48-53

 Findings……………………………………………….…...….

 Suggestion & Recommendation………………………............

 Conclusion…………………………………………………….
8 Bibliography 54

9 Annexure 55-57

4
 Executive Summary

In the ever growing competition, the behavioral aspect of

consumers
Is the core concept & is also an essential aspect for any business concern.
This topic deals with the CUSTOMER’S PERCEPTION TOWARDS
THE LOAN PRODUCT OF STATE BANK OF INDIA (SBI BANK).
This project report includes five 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 Loan Product which

gives a brief idea regarding LOAN PRODUCTS of SBI BRANCH. It
also contains the objectives and limitations of the project.

The third chapter, methodology adopted in preparing this report is

mentioned. It covers the sample procedure, types of data used and the
data collection method.

The fourth chapter shows the analysis of data through tabulation,

computation and also graphical representation of data collected from
survey.

The fifth chapter deals with the findings, suggestion & conclusion
part after analysis is made.

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 presented in a manner so as to enable the reader to view the contents
easily. The report includes figures and data wherever necessary for the
reader to have good understanding of the topic.

5
CHAPTER-1

Company Profile:

Overview
History
Competitors
Strength/Opportunity & Weakness/Threats
Different Products
Awards & Recognitions by SBI

6
 OVERVIEW

State Bank of India is the largest and one of the oldest commercial
bank in India, in existence for more than 200 years. The bank provides a
full range of corporate, commercial and retail banking services in India.
Indian central bank namely Reserve Bank of India (RBI) is the major
share holder of the bank with 59.7% stake. The bank is capitalized to the
extent of Rs.646bn with the public holding (other than promoters) at
40.3%. SBI has the largest branch and ATM network spread across every
corner of India. The bank has a branch network of over 14,000 branches
(including subsidiaries). Apart from Indian network it also has a network
of 73 overseas offices in 30 countries in all time zones, correspondent
relationship with 520 International banks in 123 countries. In recent past,
SBI has acquired banks in Mauritius, Kenya and Indonesia. The bank had
total staff strength of 198,774 as on 31st March, 2006. Of this, 29.51%
are officers, 45.19% clerical staff and the remaining 25.30% were sub-
staff. The bank is listed on the Bombay Stock Exchange, National Stock
Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and
Ahmedabad Stock Exchange while its GDRs are listed on the London
Stock Exchange. SBI group accounts for around 25% of the total business
of the banking industry while it accounts for 35% of the total foreign
exchange in India. With this type of strong base, SBI has displayed a
continued performance in the last few years in scaling up its efficiency
levels. Net Interest Income of the bank has witnessed a CAGR of 13.3%
during the last five years. During the same period, net interest margin
(NIM) of the bank has gone up from as low as 2.9% in FY02 to 3.40% in
FY06 and currently is at 3.32%.

7
 Management

The bank has 14 directors on the Board and is responsible for the
management of the Bank’s business. The board in addition to monitoring
corporate performance also carries out functions such as approving the
business plan, reviewing and approving the annual budgets and
borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the
Chairman of the bank. The five-year term of Mr. Bhatt will expire in
March 2011. Prior to this appointment, Mr. Bhatt was Managing Director
at State Bank of Travancore. Mr. Bhatt has more than 30 years of
experience in the Indian banking industry and is seen as futuristic leader
in his approach towards technology and customer service. Mr. Bhatt has
had the best of foreign exposure in SBI. We believe that the appointment
of Mr. Bhatt would be a key to SBI’s future growth momentum. Mr. T S
Bhattacharya is the Managing Director of the bank and known for his vast
experience in the banking industry. Recently, the senior management of
the bank has been broadened considerably. The positions of CFO and the
head of treasury have been segregated, and new heads for rural banking
and for corporate development and new business banking have been
appointed. The management’s thrust on growth of the bank in terms of
network and size would also ensure encouraging prospects in time to
come.

8
 Key Areas of Operations

The business operations of SBI can be broadly classified into the

key income generating areas
Such as National Banking, International Banking, Corporate Banking, &
Treasury operations.

STATE
STATE BANK
BANK
OF
OF
INDIA
INDIA

Corporate
Corporate National
National International
International Treasury
Treasury Associates
Associates &
&
Banking
Banking Banking
Banking Banking
Banking Operations
Operations Subsidiaries
Subsidiaries

9
 HISTORY

The origin of the State Bank of India goes back to the first decade
of the nineteenth century with the establishment of the Bank of Calcutta
in Calcutta on 2 June 1806. Three years later the bank received its charter
and was re-designed as the Bank of Bengal (2 January 1809).

A unique institution, it was the first joint-stock bank of British

India sponsored by the Government of Bengal. The Bank of Bombay (15
April 1840) and the Bank of Madras (1 July 1843) followed the Bank of
Bengal. These three banks remained at the apex of modern banking in
India till their amalgamation as the Imperial Bank of India on 27 January
1921.

Primarily Anglo-Indian creations, the three presidency banks came

into existence either as a result of the compulsions of imperial finance or
by the felt needs of local European commerce and were not imposed from
outside in an arbitrary

Manner to modernize India's economy. Their evolution was, however,

shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of
both the local trading environment and those in the relations of the Indian
economy to the economy of Europe and the global economic framework.

The three banks were governed by royal charters, which were revised
from time to time. Each charter provided for a share capital, four-fifth of
which were privately subscribed and the rest owned by the provincial
10
government. The members of the board of directors, which managed the
affairs of each bank, were mostly proprietary directors representing the
large European managing agency houses in India. The rest were
government nominees, invariably civil servants, one of whom was elected
as the president of the board.

Group Photograph of Central Board (1921)

SBI provides a range of banking products through its vast network

of branches in India and overseas, including products aimed at NRIs. The
State Bank Group, with over 16,000 branches, has the largest banking
branch network in India. With an asset base of $260 billion and $195
billion in deposits, it is a regional banking behemoth. It has a market
share among Indian commercial banks of about 20% in deposits and
advances, and SBI accounts for almost one-fifth of the nation's loans.
SBI has tried to reduce over-staffing by computerizing operations and
"GOLDEN HANDSHAKE SCHEME" that led to a flight of its best and
brightest managers. These managers took the retirement allowances and
then went on to become senior managers in new private sector banks.

The State bank of India is the 29th most reputed company in the
world according to Forbes.

11
 BUSINESS

The business of the banks was initially confined to discounting of

bills of exchange or other negotiable private securities, keeping cash
accounts and receiving deposits and issuing and circulating cash notes.
Loans were restricted to
Rs.one Lakh and the period of accommodation confined to three months
only. The security for such loans was public securities, commonly called
Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a
perishable nature' and no interest could be charged beyond a rate of
twelve per cent. Loans against goods like opium, indigo, salt woolens,
cotton, cotton piece goods, mule twist and silk goods were also granted
but such finance by way of cash credits gained momentum only from the
third decade of the nineteenth century. All commodities, including tea,
sugar and jute, which began to be financed later, were either pledged or
hypothecated to the bank. Demand promissory notes were signed by the
borrower in favour of the guarantor, which was in turn endorsed to the
bank. Lending against shares of the banks or on the mortgage of houses,
land or other real property was, however, forbidden.

Indians were the principal borrowers against deposit of Company's

paper, while the business of discounts on private as well as salary bills
was almost the exclusive monopoly of individuals Europeans and their
partnership firms. But the main function of the three banks, as far as the
government was concerned, was to help the latter raise loans from time to
time and also provide a degree of stability to the prices of government
securities.

12
 First Five Year Plan

In 1951, when the First Five Year Plan was launched, the
development of rural India was given the highest priority. The
commercial banks of the country including the Imperial Bank of India
had till then confined their operations to the urban sector and were not
equipped to respond to the emergent needs of economic regeneration of
the rural areas. In order, therefore, to serve the economy in general and
the rural sector in particular, the All India Rural Credit Survey Committee
recommended the creation of a state-partnered and state-sponsored bank
by taking over the Imperial Bank of India, and integrating with it, the
former state-owned or state-associate banks. An act was accordingly
passed in Parliament in May 1955 and the State Bank of India was
constituted on 1 July 1955. More than a quarter of the resources of the
Indian banking system thus passed under the direct control of the State.
Later, the State Bank of India (Subsidiary Banks) Act was passed in
1959, enabling the State Bank of India to take over eight former State-
associated banks as its subsidiaries
(Later named Associates).

The State Bank of India was thus born with a new sense of social
purpose aided by the 480 offices comprising branches, sub offices and
three Local Head Offices inherited from the Imperial Bank. The concept
of banking as mere repositories of the community's savings and lenders
to creditworthy parties was soon to give way to the concept of purposeful
banking sub serving the growing and diversified financial needs of
planned economic development. The State Bank of India was destined to
act as the pacesetter in this respect and lead the Indian banking system
into the exciting field of national development.

13
 COMPETITORS

Competitors and other players in the field:-

Top Performing Public Sector Banks

 Andhra Bank
 Allahabad Bank
 Punjab National Bank
 Bank of Baroda
 Union Bank of India
Top Performing Private Sector Banks

 HDFC Bank
 ICICI Bank
 AXIS Bank
 UTI Bank
 Federal Bank

Top Performing Foreign Banks

 Citibank
 Standard Chartered
 HSBC Bank
 Barclays Bank PLC
 ABN AMRO Bank

14
 Strength/ Opportunities:

The growth for SBI in the coming years is likely to be fuelled by the
following factors:

• Continued effort to increase low cost deposit would ensure

improvement in NIMs and hence earnings.

• Growing retail & SMEs thrust would lead to higher business growth.

• Strong economic growth would generate higher demand for funds

pursuant to higher corporate demand for credit on account of capacity
expansion.

Weakness/ Threats:

The risks that could ensue to SBI in time to come are as under:

• SBI is currently operating at a lowest CAR. Insufficient capital may

restrict the growth prospects of the bank going forward.

• Stiff competition, especially in the retail segment, could impact retail

growth of SBI and hence slowdown in earnings growth.

• Contribution of retail credit to total bank credit stood at 26%.

Significant thrust on growing retail book poses higher credit risk to the
bank.

• Delay in technology up gradation could result in loss of market shares.

• Slow down in domestic economy would pose a concern over credit off-
take thereby impacting earnings growth.

15
 DIFFERENT PRODUCTS OF SBI:

DEPOSIT LOANS CARDS DIFFERENT

CREDIT CARDS

 Savings Home  Consumer  SBI

Account Loans Cards International

 Life Plus  Loan  Credit Card  SBI Gold

Senior Against cards
Citizens Property
Savings
Account

 Fixed  Personal  Travel Card  SBI Gold

Deposits Loans Master cards
 Security
 Car Loan  Debit Cards  Your City
Deposits Your Cards

 Recurring  Loans  Commercial

Deposits against Cards
Securities
 Salary  Two  Corporate  Partnership
Account Wheeler Cards Cards

 Advantage  Pre-  Prepaid Card

Woman approved
Savings Loans
Account

16
 Rural  Retail  Purchase Card  SBI
Savings Asset Employee
Account Cards

 People's  Farmer  Distribution

Savings Finance Cards
Account

 Freedom  Business  Business Card  SBI

Savings Installme Advantage
Account nt Cards
Loans

AWARDS & RECOGNITIONS

 On25th July 2009 SBI has been awarded under the

“Financial Express Best Banks” category
“The Best Banker of the year award 2008”.

 “Best use of IT for Customer Service in Semi-urban and rural

areas” category.

 Awarded the “Bank of the Year 2008 – India” by

The Banker Magazine, London.

 Ranked # 1 in Survey of top 5 companies in India in terms of

financial reputation by Wall Street Journal Asia.

 Economic Times announced on 17th June 2009, Brand Equity

Most Trusted Brand 2009.

 SBI wins the first AIMA - R K Swami High Performance Brand

Award 2009. (Announcement on February 16, 2010).

 SBI bags Business India Best Bank Awards 2009.

 State Bank has won the prestigious “Asian Banker Achievement

Award” for being the strongest bank in Asia Pacific region,

17
 instituted by the Qatar Financial Centre Authority and the
Asian Banker magazine.

CHAPTER-2

Introduction to Advance Product

SBI Advance Product

Significance and scope

18
 Introduction to Loan Product

In the current busy world people find difficult in fulfilling there

desires in addition to there basic needs. The earnings of the people are not
adequate to fulfill other wants. They are in need of much required finance
to secure some additional wants, that’s why they need help from others.
For this so many government & private sector bank provide them money
to fulfill their requirement, that’s call the Loan Product of the bank. All
the banks have so many different types of Loan Products product as per
the requirement of the people or customers. In Malad also there are so
many banks those provide loan to the people for different causes.

Types of Loan Product

 Home Loan
 Educational Loan
 Car Loan
 Personal Loan
 Property Loan
 Etc.

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

19
 SBI Loan Product

SBI Home Loans

Purpose: -

Purchase/ Construction of House/ Flat

Purchase of a plot of land for construction of House

Extension/ repair/ renovation/ alteration of an existing House/ Flat

Purchase of Furnishings and Consumer Durables as a part of the

project cost.

Takeover of an existing loan from other Banks/ Housing Finance

Companies.

Eligibility:

Minimum age 18 years as on the date of sanction

Maximum age limit for a Home Loan borrower is fixed at 70 years,

i.e. the age by which the loan should be fully repaid.

20
 Availability of sufficient, regular and continuous source of income
for servicing the loan repayment.

Interest Rates ;-

Loan Schemes 1st Year 2nd and 3rd year After 3rd Year
SBI HI-FIVE Loan 9.00% (p.a.)Floating9.00% (p.a.)Floating
Interest Rates
Interest Rates
Loan Amount up to 8.00% (p.a.) OR OR
Rs. 5 Lacs 10.50% (p.a.)
10.50% (p.a.)Fixed
Fixed interest rate Fixed Interest RatesInterest Rates
SBI Easy Home 9.00% (p.a.)Floating
Loan Interest Rate
8.00% (p.a.) 8.50% (p.a.) OR
Loan Amount up to 10.50% (p.a.)
Rs. 50 Lacs Fixed interest rate Fixed Interest Rate Fixed Interest Rate
Note: - Interest rate after three years may be Fixed or Floating as per the
borrower’s choice made at the time of sanction.

To enhance loan eligibility you have option to add:

1. Income of your spouse/ your son/ daughter living with you,

provided they have a steady income and his/ her salary account is
maintained with SBI.

2. Expected rent accrual (less taxes, cess, etc.) if the house/ flat being
purchased is proposed to be rented out.

3. Depreciation, subject to some conditions.

4. Regular income from all sources

21
 CAR LOAN

Purpose

You can take finance for:

A new car, jeep or Multi Utility Vehicles (MUVs)

A used car / jeep (not more than 5 years old). (Any make or model).

Take over of existing loan from other Bank/Financial institution.

(Conditions apply)

Eligibility
To avail an SBI Car Loan, you should be:

 Individual between the ages of 21-65 years of age.

 A Permanent employee of State / Central Government, Public
Sector Undertaking, Private company or a reputed establishment or
 A Professionals or self-employed individual who is an income tax
assessee or
 A Person engaged in agriculture and allied activities.
 Net Annual Income Rs. 100,000/- and above.

22
 SILENT FEATURES

Loan Amount

There is no upper limit for the amount of a car loan. A maximum

loan amount of 2.5 times the net annual income can be sanctioned. If
married, your spouse’s income could also be considered provided the
spouse becomes a co-borrower in the loan. The loan amount includes
finance for one-time road tax, registration and insurance!

No ceiling on the lo’n amount for new cars.

Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.

Type of Loan
1. Term Loan
2. Overdraft –

a) For New vehicles only

b) Minimum loan amount: Rs. 3 lacs.

23
 SBI EZEE CAR LOAN SCHEME
(w.e.f. 01.07.2010 (Base Rate 7.50 %)

S. PARAMETERS SCHEME DETAILS

NO.
1 Applicable to All New Car Loans to Public

2 Scheme Period From July 1, 2009 to September 30,

2010
Period Term Overdraft
Loan
First year 8% Fixed 8.5% fixed
For 2ND 10% 10.5% fixed
rd
&3 fixed
year
From 4th Year Onwards: The floating
interest rate will be reset to applicable
card rate contracted on the date of
sanction. Currently the rates are
3 Interest Rate
Period Term Loan Overdraft

For 4th & 3.75% 4.25%

5th year above above
Base Rate Base Rate
i.e. 11.25% i.e. 11.75%
For 6th & 4.00% 4.50%
7th year above above
Base Rate Base Rate
i.e.11.50% i.e. 12.00%

Base Rate 7.50 %

No other interest concession will be

given under any tie-up arrangement or
24
 otherwise below the offer rate.

4 Processing Fees 0.50% of loan amount

Documents required

You would need to submit the following documents along with

the completed application form if you are an existing SBI account
holder:

1. Statement of Bank account of the borrower for last 12 months.

2. 2 passport size photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
4. A copy of passport /voters ID card/PAN card.
5. Proof of residence.
6. Latest salary-slip showing all deductions
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years
for professional/self-employed/businessmen duly accepted by the
ITO wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.
If you are not an account holder with SBI you would also need to furnish
documents that establish your identity and give proof of residence.

1. Repayment

You enjoy the longest repayment period in the industry with us.
Repayment period:

For Salaried: - Maximum of 84 months

For Self-employed & Professionals: Maximum 60 months

Repayment period for used vehicles: Up to 84 months from the date

of original purchase of the vehicle (subject to maximum tenure as
above).

2. Used Vehicles :-

25
TENURE RATE OF INTEREST

Up to 3 years 7.25% above Base Rate i.e. 14.75%

p.a.
Above 3 yrs 7.50% above Base Rate i.e. 15.00%
p.a.

3. Prepayment Penalty:

Prepayment fee of 2% of the amount of the loan prepaid will be

levied subject to certain conditions

Repayment Period All Centers (SBAR -

12.25%)
Up to 3 years (for loans Rs. 7.5 lac & 0.75% below SBAR i.e.
above) 11.50% p.a.
Up to 3 years (for loans below Rs. 7.5 lac) 0.50% below SBAR i.e.
11.75%p.a.
Above 3 yrs up to 5 yrs (for all loans) 0.50% below SBAR i.e.
11.75% p.a.
0.25% below SBAR i.e.
Above 5 yrs up to 7 yrs (for all loans)
12.00% p.a.

26
 EDUCATION LOAN

A term loan granted to Indian Nationals for pursuing higher education

in India or abroad where admission has been secured.

Eligible Courses

All courses having employment prospects are eligible.

 Graduation courses/ Post graduation courses/ Professional courses

 Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

 Fees payable to college/school/hostel

 Examination/Library/Laboratory fees
 Purchase of Books/Equipment/Instruments/Uniforms
 Caution Deposit/Building Fund/Refundable Deposit (maximum
10% tuition fees for the entire course)
 Travel Expenses/Passage money for studies abroad
 Purchase of computers considered necessary for completion of
course
 Cost of a Two-wheeler up to Rs. 50,000/-

Any other expenses required to complete the course like study tours,
project work etc.

Amount of Loan

 For studies in India, maximum Rs. 10 lacs

 Studies abroad, maximum Rs. 20 lacs

27
 Interest Rates

Base Rate 7.50 % (w.e.f. 01.07.2010)

LOAN AMOUNT RATE OF INTEREST

For loans up to Rs.4 lacs 3.75% above Base Rate, currently

11.25% p.a.
Above Rs.4 lacs and up to Rs.7.50 5.25% above Base Rate, currently
lacs 12.75% p.a.
Above Rs.7.50 lacs 4.25% above Base Rate, currently
11.75% p.a.

(0.50% concession in interest for girl student)

Processing Fees
 No processing fee/ upfront charges
 Deposit of Rs. 5000/- for education loan for studies abroad which
will be adjusted in the margin money

Repayment Tenure

Repayment will commence one year after completion of course

or 6 months after securing a job, whichever is earlier.

28
Place of Study Loan Amount Repayment in Period
Years
Studies in India Rs. 10.0 lacs 5-7

Studies Abroad Rs. 20.0 lacs 5-7

Security

AMOUNT For loans up to Rs. 10.00 lacs for Studies in

India and up to Rs. 20.00 lacs for studies abroad

Up to Rs. 4 lacs No Security

Above Rs. 4 lacs to Rs. Collateral security in the form of suitable third
party
Guarantee. The bank may, at its discretion, in
exceptional cases, waive third party guarantee if
satisfied with the net-worth/means of parent/s
who
would be executing the documents as "joint
borrower"

Above Rs. 7.50 lacs. Tangible collateral security of suitable value,

along
with the assignment of future income of the
student
For payment of installments.

All loans should be secured by parent(s)/guardian of the student

borrower. In case of married person, co-obligator can be spouse or the
parent(s)/ parents-in-law
Margin

 For loans up to Rs.4.0 lacs : No Margin

 For loans above Rs.4.0 lacs:
 Studies in India: 5%
 Studies Abroad: 15%

29
Documentation Required

 Completed Education Loan Application Form.

 Mark sheets of last qualifying examination
 Proof of admission scholarship, studentship etc
 Schedule of expenses for the specified course
 2 passport size photographs
 Borrower's Bank account statement for the last six months
 Income tax assessment order, of last 2 years
 Brief statement of assets and liabilities, of the Co-borrower
 Proof of Income (i.e. Salary slips/ Form 16 etc)

SBI SARAL PERSONAL LOAN

Purpose
The loan will be granted for any legitimate purpose whatsoever
(e.g. expenses for domestic or foreign travel, medical treatment of self or
a family member, meeting any financial liability, such as marriage of
son/daughter, defraying educational expenses of wards, meeting margins
for purchase of assets etc.)

Eligibility
You are eligible if you are a salaried individual of good quality
corporate, self employed engineer, doctor, architect, chartered accountant,
MBA with minimum 2 years standing.

Salient Features:

Loan Amount
Your personal loan limit would be determined by your income
And repayment capacity.
Minimum: Rs.24, 000/- in metro and urban centers
Rs.10, 000/- in rural/semi-urban centers

Maximum: 12 times Net Monthly Income for salaried individuals

And pensioners subject to a ceiling of Rs.10 lacs in all centers

30
Documents Required
Important documents to be furnished while opening
A Personal Loan Account:

For existing bank customers

Passport size photograph

From salaried individuals

Latest salary slip and Form 16

Margin
We do not insist on any margin amount.

Interest Rates
16.00% PA

Repayment

The loan is repayable in 48 EMI. You are allowed to pay more

Than the EMI
If you wish to, without attracting any prepayment penalty.

Security
NIL

Processing Fee

Processing charges are 1-2% of the loan amount. This is amongst

The lowest fees in the industry. Processing fees have to
Be paid up front. There are no hidden costs or other
Administrative charges.

31
 PROPERTY LOAN

A dream comes true! An ALL PURPOSE LOAN for anything that

life throws up at you!! Do you need funds for a Marriage ceremony, want
to take your family to a well-deserved holiday or for a sudden medical
emergency? You have some property, but would rather not sell it? Then
why not avail of this ALL PURPOSE LOAN from SBI? SBI now makes
it very much possible for you to only keep your property but also have
liquid funds.

Enjoy the SBI Advantage;-

 Complete transparency in operations
 Access this loan from our wide network of branches
 Interest rates are levied on a monthly/daily reducing balance
method
 Lowest processing charges.
 Long repayment period of 60 months, up to 120 months for
salaried individuals with check-off facility
 No Hidden costs or administrative charges.
 No prepayment penalties. You can have surplus funds at any
time thereby conveniently reducing your loan liability and
interest burden.

Property Loan Scheme

32
Avail of an All-Purpose loan against mortgage of any of your property.
We offer you these loans at all our Personal Banking Branches and those
branches having Personal Banking Divisions amongst others.

Purpose
This is an all purpose loan, i.e., the loan can be obtained for any purpose
whatsoever. If amount of loan is Rs.25.00 lacs and above then purpose of
loan will have to be specified along with an undertaking that loan will not
be used for any speculative purpose whatever including speculation on
real estate and equity shares.

Eligibility

You are eligible if you are:

A. An individual who is;

a. An Employee or
b. A Professional, self-employed or an income tax assessee or
c. Engaged in agricultural and allied activities.

B. Your Net Monthly Income (salaried) is in excess of Rs.12, 000/- or

Net Annual Income (others) is in excess of Rs.1, 50,000/-.
The income of the spouse may be added if he/she is a co-borrower
Or a guarantor.

C. Maximum age limit: 60 years.

Silent Features

Loan Amount

Minimum: Rs.25, 000/-

Maximum: Rs.1 crore. The amount is decided by the following
calculation:
24 times the net monthly income of salaried persons (Net of all
deductions including TDS) OR

33
2 times the net annual income of others (income as per latest IT return
less taxes payable)

Margin
We will finance up to 60% of the market value of your property.

Interest
Term Loan 1.00% above SBAR. i.e.13.25% p.a. floating for loans up
to Rs.1.00 crore. In other cases 1.25% above SBAR i.e.13.50% p.a.
floating (w.e.f. 01.01.2009)

Repayment

Maximum of 60 equated monthly installments, up to 120 months for

salaried individuals with check-off facility. You could opt to divert any
surplus funds towards prepayment of the loan without attracting any
penalty.

Security

As per banks extant instructions.

Significance and scope

The geographical scope of the study is restricted to Malad(W),only

with sample size of 80 people.

All the analysis and suggestions are based on the analysis of the both
primary and secondary data.

There fore the scope of the study revolves around the following aspects:-

 Consumer perception towards loan Product

34
  Consumer awareness about loan Product scheme and its benefit.
 Aware the Bank about the customer problems, especially in case of
automobile sector.

CHAPTER-3

Research methodology

Statement the Problem

Research objectives

35
 Research methodology

Research methodology is a methodology for collecting all sorts of

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

 Sample Size:

Sample of 80 people was taken into study, and their data

was collected
36
 Sampling Technique:

To study the Project, a Simple Random Sampling

technique is used.

 Data Collection:

Collection of data is done by secondary Data & through

Questionnaire.

 Data Analysis:

After data collection, I’m able to analyze customer’s views,

ideas and opinions related to loan Product and about SBI loan Product
and from this, SBI will come to know the customer requirements.

 Data Interpretation:

Interpretation of data is done by using statistical tools like

Pie diagrams, Bar graphs, and also using quantitative techniques (by
using these techniques) accurate information is obtained.

 Classification & tabulation of data:

The data thus collected were classified according to the

categories, counting sheets & the summary tables were prepared. The
resultant tables were one dimensional, two dimensional.

 Statistical tools used for analysis:

Out of the total respondents, the respondents who responded

logically were taken into account while going into statistical details &
analysis of data. The tools that have been used for analyzing data &
37
 inference drawing are mainly statistical tools like percentage, ranking,
averages, etc.

As per questionnaire and market surveys I have find out

different responses from different people. According to their responses I
analyze the findings and draw certain remarks.

Statement of problem

 SBI Branch, Malad(W), Mumbai want to know about the customer

perception about the advance product provide by them to the

people.

 To find out what kind of service provide by the competitors in

advance product.

 To find out the need of the customer and hence formulate the

strategy to level the economy in the society.

 How the products are helping the customer.

 To know the utility of the product.

 To find out the need of the customer in Malad(W), region and

introduce new product or facilitate new service in existing product.

38
 Research objectives

 First and foremost objective is to find out the reasons for using of
loan Product from SBI.

 To generate the leads through the survey.

 To build the relationship with the customers and to follow up them,

make sure that they are satisfied with the product.

 To maintain good relationship with the corporate employees.

 To get more references from the customers and generate new leads
by following a chain process.

 To find out the customer awareness on booming loan Product

market and to find out the using patterns of the people

 To make the customer aware of the benefits of the product.

39
CHAPTER-4

Analysis of data

40
 GRAPHICAL REPRESENTATION OF DATA

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

SBI 60 % (48)
ICICI 33 % (26)
HDFC 5% (4)
OTHER 2% (2)
TOTAL NO. OF 80
PEOPLE

R E S P ONS E S OF P E OP L E IN %
5% 2%

33%

60%

41
 It has been observed that approximately 60% correspondents are
using the service of SBI for their daily transaction, around 33% of people
are using ICICI Bank for their transaction and only 5% & 2% of people
are using HDFC & other Bank service respectively in Malad. It also
shows that SBI have the highest market position in Malad as per my
sample.

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

YES 85% (68)

NO 15% (12)
Total No. of People 80

From the above data it is clear that most of the customers (around
85%) of Malad have the idea about the product & services of SBI, the rest
15% have the idea about the product they are using. In this 15% most of
the people are from typical rural area (Farmers).

42
Q3. If yes are you aware of the Loan products of SBI?

YES 95%(76)
NO 5% (4)
TOTAL NO. OF PEOPLE 80

It is clear that most of the people have the idea about the Loan
product of SBI. Almost all the 95% people who have the idea about the
Loan product are the user of SBI product & service.

43
Q4. Which bank you prefer for taking loans?

SBI 85% (68)

ICICI 12% (9)

HDFC 2% (2)
OTHER 1% (1)
TOTAL NO. OF PEOPLE 80

44
 According to my sample size 85% of people prefer SBI for loan
product, but some people prefer ICICI, HDFC or OTHER Bank for loan
because they are working with that bank & it is easier for them to get loan
from their bank & it easier for them to pay the interest because it is less as
compare to other bank because they are the employee of that bank.

Q5. If you prefer SBI for taking loan than what influence you to take
Loan from SBI?

Most of the people said that they prefer SBI for taking loan
because of the transparency and the lowest interest rate for any kind of
loan product. And it is easy to get loan from SBI as compare to other
bank because less paper work is require and as it is the largest govt. bank
in India and having partnership with RBI (Reserve Bank of India) and
other association, it is easier for SBI to give loan to people with a longer
repayment period.
Q.6 which loan product of SBI you have used?

HOME LOAN 47% (38)

EDUCATIONAL LOAN 20% (16)
CAR LOAN 15% (12)
PERSONAL LOAN 10% (8)
OTHER 8% (6)
TOTAL NO. OF PEOPLE 80

45
 From the sample size 85% of people are using the SBI loan product.
From the 1800 people 47% of people took home loan from SBI. 20% of
people took education loan for their children, 15% of people took car loan
from SBI. Some of the customer took 2 type of loan from SBI like both
car & educational loan and home & car loan. 10% of people took
personal loan.

Q7. What do you feel about the services providing by SBI in Loan
product

Bad 0% (0)
Satisfactory 2% (2)
Good 55% (44)
Excellent 43% (34)
TOTAL NO. OF PEOPLE 80

46
 From this it is clear that the service provide by SBI in its Loan
product is good in between the customer. All of them satisfy with the
product provide by SBI. 55% of people said that the service provide by
SBI is good & 43% said it is excellent & just 2% of people said that it is
satisfactory.

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

LESS PAPER WORK 3% (2)

ATTRACTIVE INTEREST 35% (28)

RATE
TRANSPARENCY 20% (16)
SIMPLE AND FAST 2% (2)
PROCESSING
LONGER REPAYMENT 40% (32)
PERIOD
TOTAL NO. OF PEOPLE 80

47
 Most of the people like the attractive interest rate & longer
repayment period. It’s easier for people to repay the whole loan amount
with its interest with low interest rate and with longer repayment period.

CHAPTER-5

48
Findings
Suggestion & Recommendation
Conclusion

PROJECT FINDINGS

 From this project it is found that SBI advance product having the
1st place in the market at Malad(W), Mumbai, there is a great
opportunity to compete with ICICI Bank & to retain its customer
by fulfilling the requirement of customer in SBI Loan product.
 It has been observed that approximately 85% correspondents are
using Loan product of SBI and 15% are not using any type of Loan

49
 product of SBI in Malad(W), All of SBI customers are satisfied
with the services provided by the bank.
 Many of these customers satisfied with the low interest rate and
longer repayment period of the Loan product.
 Most of the customers at Malad(W), prefer to take loan from SBI.
 Approximately 43% of Loan product users said that the service of
SBI in Loan product is excellent.
 A response from customer care is so clear & good.
 Many customers have no time to call customer care so that they are
not able to know about the service & features of SBI Loan product.
 Most customers are shifted from other bank’s Loan product to SBI
because of hidden charges, high interest rate, less repayment
period.
 Government employees are more concern than private employees
for Loan product.

REASON FOR HIGHLY USE OF SBI LOAN PRODUCT

 LESS PAPER WORK

 ATTRACTIVE INTEREST RATES
 TRANSPARENCY
 SIMPLE & FAST PROCESSING
 LONGER REPAYMENT PERIOD
 QUICK PROCESSING

50
 Suggestion & Recommendation

Recommendation:

 Customer awareness Programme is required so that more people

should attract towards Loan product.
 If there are any kind of hidden charges than that must disclose to
customer before giving loan to them.

51
 SBI must take some steps so that customers can get their loan in
time. Like phone verification by customer care that one customer is
got their loan on time or not .It must be before a certain date so
necessary steps can be taken.
 SBI should more concern about physical verification rather than
phone verification so it will avoid fraud or cheating.
 Loan product selling agents must not give any type of wrong
information regarding Loan product.
 For the better service new offers would be require.
 SBI customer care should more concern about the fastest
settlement of customer problems.
 Before deducting or charging any monetary charge SBI must consult
with customer.
 Agents should be trained, well educated & proper trained to
convince the people about different advance product.
 It is the duty of the bank to disclose all the material facts regarding
Loan product, like interest charged, repayment period, other types
of charges, etc.
 Special scheme should be implemented to encourage both
customer and agents.
 The bank should increase the period for repayment of loan.
 SBI should more focus on Retaining existing customers.
 SBI must focus on Segmentation based on customer knowledge
Product offering based on customer demand.
 SBI must take feedbacks of customers regarding features &
services.

52
Suggestions given by the consumers at the time of survey:

 There is more time period for repayment of education loan.

(Rajesh Amankar)
 Education loan should be providing to private college also which is
not under AICTE or any kind of University.
(Anand Shinde)
 SBI should take steps to solve customer problems immediately.
(Nimesh Shah)
 Agents should be trained, well educated & proper trained to
convince the people about different advance product.
(Alok Sharma)
 Loan sanction date should be according to customer convenient.
(Rahul Das)
 A customer awareness programmed should be taking place in rural
area.
(Anil Banerjee)

Conclusion

From the analysis part it can be conclude that customers have a

good respond towards SBI Loan products in Malad(W), SBI are in 1 st
position having large number of customers & providing good services to
them. The bank has a wide customer base, so the bank should concentrate
on this to retain these customers.

53
 In present scenario SBI is the largest Loan product issuer in India.
Within a very short period of time the achievement made by SBI is
excellent, what a normal bank cannot expect, but it is being done by SBI.
It happens due to employee dedication towards the organization, fastest
growing Indian economy, & brand image.

To be the largest Loan product issuer, SBI should focus on-

 Launch Innovative product

 Customized Loan products
 Better customer services
 Fastest customers problem solving techniques
 Customer retention
Apart from all the above, SBI believe in providing good customer
services to their customers which is a key factor for success in future.

Bibliography

Text Books:

Solomon, Michael R. (2002),

Consumer Behavior:
Buying, Having, and Being. 5th Ed.
New Jersey: Prentice Hall

Wilson A. (2003), Marketing Research: An Integrated Approach

54
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth
Edition

Internet:

 www.google.co.in

 www.sbi.com

 www.sbi.co.in

 www.bnet.com

ANNEXURE

Questionnaire

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

55
Q. On which bank you depend for your regular transaction?
a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

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

a) YES
b) NO

Q. If yes is you aware of the Loan products of SBI?

a) YES
b) NO

Q. Which bank you prefer for taking loans?

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

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

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
_________________________________________________________.

56
Q. Which loan product of SBI you have used?
a) Home Loan
b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans, Specify ( ______________ )

Q. What do you feel about the services providing by SBI in loan product?
a) Bad
b) Satisfactory
c) Good
d) Excellent

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

a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose an EMI base loan or an overdraft
f) Longer tenure lone for ease of repayment
g) Specially design product for self employed
h) Any other feature, specify ( _____________ )

Q. Any suggestion you want to give for the betterment of SBI Loan
product.

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
____.

57
58