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UNIVERSITY OF MUMBAI

RAYAT SHIKSHAN SANSTHAS

KARMAVEER BHAURAO PATIL COLLEGE


VASHI, NAVI MUMBAI.

COLLEGE CODE 33 PROJECT REPORT ON TYPES OF LOAN OFFERED BY STATE BANK OF INDIA

SUBMITTED BY SHILPA S. NIKAM.

PROJECT GUIDE ..

IN PARTIAL FULFILLMENT FOR THE COURSE OF BACHELOR OF COMMERCE (BANKING & INSURANCE) T.Y.B.Com. (Banking & Insurance) (SEMESTER V) ACADEMIC YEAR 2011-12

ACKNOWLEDGEMENT
I, Shilpa S. Nikam would take this opportunity to thank the University of Mumbai for providing me an opportunity to study on a project on Banking. This has been a huge learning experience for me. With great pleasure I take this opportunity to acknowledge people who have made this project work possible. First of all I would sincerely like to express my gratitude towards my Project Guide . for having shown so much flexibility, guidance as well as supporting me in all possible ways whenever I needed help. I am thankful for the motivation provided by my Project Guide throughout and helped me to understand the topic in a very effective and easy manner. I would also like to thank the Principal Dr. Arvind Burungale and the Coordinator of the course Prof. K.G.Tapase for his indirect support throughout. I would also like to thank other teaching faculties of the college, my colleagues, Library staff and other people for providing their help as and when required to complete this project. I acknowledge my indebtedness and express my great appreciation to all people behind this work.

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DECLARATION
I, Shilpa S. Nikam student of KARMAVEER BHAURAO PATIL COLLEGE, VASHI studying in T.Y.B.Com. (Banking & Insurance) in Semester V hereby declare that I have completed this Project on Types Of Loan Offered By SBI. as per the requirements of University of Mumbai as a part of the curriculum of B.Com. (Banking & Insurance) course and this project has not been submitted to any other university or Institute for the award of any degree, diploma etc. The information is submitted by me is true and original to the best of my knowledge.

Date: .. Place: Vashi, Navi Mumbai. .

CERTIFICATE
This is to certify that Shilpa S. Nikam. student of B. Com. (Banking & Insurance) Semester V has completed this project on Types of loan offered by SBI. and has submitted a satisfactory report under the guidance of in the partial fulfillment of B.Com. (Banking & Insurance) Degree Course of University of Mumbai in the academic year 2011-12.

Project guide (.) Burungale)

... Coordinator (Prof.K. G. Tapase) (Dr.

.. Principal Arvind

University Examiner

(Page for Certificate from Industry)

Index
No. Topic Name Page No. 1. Objective of study 2. Introduction 2.1 SBI loan policy 2.2 .Types of loan. 3. Personal loan 3.1 Saral Personal loan. 3.2 .Home loan. 3.3 .Education loan. 3.4. Car loan 3.5. Loan against property 3.6. loan to pensioners 3.7. Easy travel loan 3.8. Loan against share/ debenture 3.9. festival loan 4. SME Scheme 4.1 .SNE open term loan..... 4.2 .Cycber plus... 4.3 .Rice mile plus..... 4.4 .Dental Doctor plus.. 4.5.SBI shopee 4.6. School plus... ..... ..... ..... ..... ..... ..... ..... ..... ..... ....

5.

Aricutural loan..................................... 5.1 Agricultural gold loan.............................................. 5.2 Kisan credit card 5.3.Produce mktg. loan. 5.4. Land purchase scheme.. 5.5 Agricutural crop scheme. 5.6 Scorin model for tractor loan.......................................... ..... .....

6. 7.

Conclusion Bibliography

..... .....

1. OBJECTIVE OF STUDY
This project is based on the study of various types of loan offered by bank to our customer. everyone needs money at every stage of their lives. Sometimes it is so that they are willing to want to buy your favorite things, but are unable to buy due to lack of money. There is a question that someone who has a good amount of money at that time was not right to see dreams? Do not allow them to fulfill their desires on time? Should I stop dreaming? No, because it is the answer to these questions. Loans are available for these purposes only.

Loans are granted to individuals for such critical circumstances that may arise at any time. In the situation of anyone's life can come when you suddenly need cash. It can be any type of emergency if you need huge amount of money.

There are different types of loans as mortgages, personal loans, student loans, business loans, etc. You can take any type of loan you need. For each type of need, there are funds available. Housing loans are available for general home like buying a luxury car, going for a holiday trip, educational purposes, home improvement, etc. Many of your desires can be satisfied by the loan.

Whatever type of loans, all have full facilities of its own. All types of loans have their own importance. Above all, explains the need for monetary significance of the loan.

OBJECTIVES 1. To present various types of loan offered by SBI to our customer. 2. To explain the advantages and purposes of SBI loan policy 3. To present requirement, rate of interest, margin. 4. To show the schedule of repayment and proceeding fees. 5. To explain the SME scheme 6. To present the Agricultural loan are available for multitude of farming purpose.

2. INTRODUCTION
State Bank of India (SBI) is the largest Indian banking and Financial service company (by turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. The government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. SBI has 14 Local Head Offices and 57 Zonal Offices that are located at important cities throughout the country. It also has around 130 branches overseas. With an asset base of $352 billion and $285 billion in deposits, SBI is a regional banking behemoth and is one of the largest financial institution in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world. Also SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

The State Bank of India is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bankits main competitors.

Associate banks
Main Branch of SBI at Mumbai. SBI has five associate banks; all use the same logo of a blue circle and all the associates use the "State Bank of" name, followed by the regional headquarters' name

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore Earlier SBI had only seven associate banks that constituted t State Bank

Group. Originally, the then seven banks that became the associate banks belonged to princely states until the government nationalized them between October 1959 and May 1960. In tune with the first Five Year Plan emphasizing the development of rural India, the government integrated these banks into the State Bank of India system to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline operations.[8] The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI, reducing the number of state banks from seven to six. Then on 19 June 2009 the SBI board approved the merger of its subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in State Bank of Indore. The acquisition of State Bank of Indore added 470 branches to SBI's existing network of 12,448 and over 21,000 ATMs.

2.1 State Bank Of India Loans Policy

State Bank of Indias loan policy is directed towards fulfilling the Banks vision Customer first and first in customer satisfaction. Loan Policy aimed at accomplishing Banks mission to create products and services that help our customers achieve their goals. It will, inter-alia, facilitate service excellence to customers across the country as well as to those residing abroad.

The Loan Policy of the Bank, at a holistic level, is an embodiment of the Banks approach to sanctioning, managing and monitoring credit risk and aim at making the system and control effective. It is guided by the best practices of commercial prudence, the highest standard of ethical norms and requirement of national priorities.

State Bank of India loans come with truly affordable rates and flexible repayment terms. The terms and conditions are excellent and have been designed to suit the borrowers needs. Loan programs are available from State Bank of India to meet the requirements of individual customers, corporate clients, small and medium enterprises, Non resident Indians, export and import businesses and agriculturists. Given below are the different types of loan products offered by State Bank of India loans.

3. Personal Loan

SBI Personal Loan


Saral Personal Loan Loan to Pensioners

Home Loan

Teacher Plus Scheme

Education Loan

Loan Against Share & Debenture

Car Loan

Festival Loan

Loan Against Property

Tribal-Plus Scheme

Easy Travel Loan

Credit Khazana

3.1 SBI Saral Personal Loans


A personal loan is the one that establishes consumer credit that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay consumer loan. A personal loan is an unsecured loan, meaning the borrower does not put up any collateral or security to guarantee the repayment of the loan. A loan, whether a personal loan or another type of loan, is typically used to finance a large, one-time purchase or expense. The borrower is given all the money at once and agrees to pay back a certain amount per month until the debt is repaid. SBI provides SBI Saral personal loan to help you in meeting any kind of personal expenses whenever you need it to meet your requirements. Loan is provided at low interest rates, no hidden costs or administrative charges, no prepayment penalties and comfortable repayment tenure.

SBI Saral Personal Loan : Advantages


Low interest rates. Further, we charge interest on a daily reducing balance Low processing charges; only 2%-3% of loan amount No security required minimal documentation No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan (1% of the loan amount will be charged if you repay the loan before 6 months)

Long repayment period of up to 48 months

SBI Saral Personal Loan: Purpose


The loan will be granted for any legitimate purpose whatsoever like 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.

Highlights
Salaried
SBI Saral Personal Loan

Self Employed
SBI Saral Personal Loan

Loan Scheme

Loan Types

Term Loan

Term Loan

Loan Amount

Max. Loan: 12 times the Max. Loan: 12 times the monthly income Minimum 12 months. Maximum 48 months. monthly income Minimum 12 months. Maximum 48 months.

Tenure

Interest Rate

18.5% p.a

18.5% p.a

Time to Process Loan Processing Fees

2 days.

2 days.

2-3% of loan amount

2-3% of loan amount

Eligibility Criteria

Loan Amount Resident Indian National


2.50 lakhs in Non Metros 5 lakhs in Metros up to

Documents Required
1).Passport size photograph

10 lakhs where salaried 2).Proof of official address for or current account is with SBI. It is determined by your repayment capacity. self employed individuals and professionals. This can include shop and establishment certificate/ Minimum Income: Rs.24,000/- in metro and urban centres Rs.10,000 In rural/semi urban Centres. 3).Latest Salary clip and Form 16, in the case of salaried persons. Lease deed/Telephone bill

Max. Loan Amount: 12 times Net Monthly Income for salaried Individuals & pensioners Subject to a ceiling of Rs. 10 lakhs in all centres.

HOME LOAN

3.2 Home Loan


Now a day, as the country is developing, the standard of living is also improving. Through it is becoming difficult to afford luxury due to the heavy cost involved, still people are demanding for the same. The demand is usually fulfilled by the loan taken by them various blending institutions. Hence, all areas of expenditure of an individual can be financed by personal loan. The amount of loan borrowed is usually higher than the amount required for a particular project which is to cover other additional expenses. It can be a loan needed construction of homes buying of luxuries items or planning a trip abroad. Banks are giving tough competition to each other in this field by varying the interest rates and favorable term of loans. Hence attracting customers to avail his facility of loan, credit card etc.One such loan which is very common a day is home loan which is usually taken by the borrowers on behalf their salaries.

The State Bank of India, or SBI, is one of the earliest banks of our country and still respected by its competitive private counterparts. Like various other companies financing for your Home loans, the SB I has developed its own Home loan policies. The SBI Home loans have been formulated, especially with the knowledge of the basic needs of our nations people and are quite thrifty.

The SBI Home Loan is available under various schemes and offers attractive interest rates.

SBI Home Loan Process:

Initial Loan Application

Underwriting

Credit Report

Processing

Appraisal

Title

Loan Documents

Open Escrow

Funding
The first and foremost thing that comes in a home loan process is organizing your documents. It is highly recommended that you organize all

Your income statements before you buy or refinance your home loan. You are required to provide two years W -2 along with one month of paystubs if you are salaried. But if you are self employed, you need to provide two years tax returns along with YTD profit and loss statement.

The second most task which you should do in a home loan process is to get qualified. This step can help you in a great deal to understand the

amount which you can borrow before you start a home loan process. You should get a pre-approval rather than a pre-qualification before applying a home loan. Make sure that that you find the maximum house you can buy rather than wasting time by looking at properties which you can afford. This also helps you in getting a close quickly as your loan is already approved.

One more thing you should keep in mind while in a home loan process is to shop for loan programs and rates. You should compare different programs available with different banks. It is true that shopping for a home loan can be difficult because there are so many programs from which you have to choose. Each of the different programs has different interest rates, points and fees. You can take the help of an experienced loan officer who can help you to make a right decision which is best for you.

After the home loan gets approved, make sure to close the loan by properly signing the final loan documents and review them properly. Dont forget to check that the loan terms and interest rates are same on the final documents which you were promised.

Purposes:
1. Purchase/ Construction of House/ Flat 2. Purchase of a plot of land for construction of House 3. Extension/ repair/ renovation/ alteration of an existing House/ Flat 4. Purchase of Furnishings and Consumer Durables as a part of the Project cost. 5. Takeover of an existing loan from other Banks/ Housing Finance .

SBI Home Loan Unique Advantages:


1. Package of exclusive benefits. 2. Low interest Rate, further we charge interest on a daily reducing balance. 3. Low processing charges 4. No hidden costs or administrative charges. 5. No repayment penalties, reduce your interest burden and optimally utilize your surplus funds by prepaying the loan. 6. Over 13700 branches nationwide, you can get your home loan account parked at a branch nearest to your present or proposed residence.

FEATURES
1) Eligibility:
Minimum age: Minimum age 18 years as on the date of sanction

Maximum age: 70 years i.e. the age by which the loan should be
fully repaid, subject to availability of sufficient, regular and Continuous sources of income for servicing the loan repayment.

2) Loan Amount
Actual loan amount will be determined taking into consideration such factors as applicants income and repaying capacity, age, asset and liabilities, cost of the proposed house/ flats etc. to enhance loan eligibility you have option to

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 Expected rent accruals (less, taxes, cases, etc.) if the house/ flat being is proposed to be rented out. Depreciation, subject to some conditions. Regular income from all sources.

3) Security:
Equitable mortgage of the property

4) Margin/ LTV Ratio:

loan Amount Upto Rs. 20 Lakhs Above Rs. 20Lacs.

Margin (Min.) 10% 20%

Maximum LTV Ratio (Max.) 90% 80%

5) Interest rate:
All rate are floating only. (Base Rate = 10.00% p.a. )

Loan Amount

Linkage with Base Rate over the Effective Rate tenor of the loan

Upto Rs. 30 lakhs

0.75% above Base Rate

10.75% p.a.

Above Rs.30 lakhs 1.00% above Base Rate and upto Rs. 75 lakhs

11.00% p.a.

Above lakhs

Rs.

75. 1.25% above Base Rate

11.25% p.a.

No fixed rate option in any limit bracket.

6) Processing fees:
It is payable at the time of documentation only.

Loan Amount Upto Rs. 25 Lacs Above Rs. 25 Lacs and upto Rs. 75 Lacs Above Rs. 75 Lacs

Processing Fee 0.25% of loan amount Rs. 10,000/-

Rs. 20,000/-

NOTE 1) Actual charges for the following will be payable by the customer in addition to the processing fee: a) Pre-sanction (i) Advocate's fee for property search and the title investigation report. (ii) Valuer's fee for valuation report.

b) Post-sanction (i) Stamp duty payable for Loan agreement & mortgage. (ii) Property insurance premium. (iii) Processing fee recovered. Pre-closure / Pre-payment Penalty - NIL

7) Repayment:
Repayment period: Maximum 25 years (or) Up to the age of 70 years (the age by which the loan should be fully repaid) of the borrower, whichever is early. Moratorium period (Repayment holiday): The moratorium period is included within the maximum repayment period.

8) Document required:
list of papers/ documents applicable to all applicants: Completed loan application 3 Passport size photographs Proof of identify (photo copies of Voters ID card/ Passport/ Driving license/ IT PAN card) Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID card) Proof of business address for non-salaried individuals Statement of Bank Account/ Pass Book for last six months Signature identification from present bankers Personal Assets and Liabilities statement

For guarantor (wherever applicable): Personal Assets and Liabilities Statement 2 passport size photographs Proof of identification as above Proof of residence as above Proof of business address as above Signature identification from his/her present bankers

Additional documents required for salaried persons : Original Salary Certificate from employer TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Debt. Additional documents required for Professionals/self-employed / other Acknowledged copies of three years I.T. returns/ Assessment Orders. Photocopies of challans evidencing payment of Advance Income Tax.

3.2 Education Loan


EVER increasing demand for education loan can be analyzed from the fact that the expenses of higher education has become unbearable and which has now become a necessity. Due to this many institution have come forward with a view to provide financial help to students .These institutions provide better opportunities to students to avail the required finances .These finances enable the students to compete their education without any hindrance. Students even ensure a lucrative future for themselves as many companies are coming up these days which demand qualified students and offer them high position and handsome salaries and other benefits. Education loans covers a wide variety of expenses. It not only helps in meeting the tuition fees but also the others benefits like hostel fee, expenses of books and all other expenses related to education A term loan granted to Indian Nationals for purchasing 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 deposits/ Building fund/ Refundable deposit (maximum 10% tution 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 upto Rs. 50000 /-

Amount of Loan:
For studies in India, maximum Rs.10 lakhs. Studies abroad, maximum Rs. 20 lakhs.

Interest Rates:
Base Rate : 10.% p.a. ( 13. 08. 2011 )

SBI Student Loan Scheme Loan Amount Rate Of Interest

Loan upto Rs.4 lakhs

3.75% above base rate, currently 13.75% p.a.

Loan above Rs. 4 lakhs and upto Rs. 5.25% above base rate, 7.50 lakhs currently. 15.25% p.a.

Loan above Rs. 7.50 lakhs

4.25% above base rate, Currently 14.25% p.a.

An Interest Rate concession of 0.50% to Girl Student availing student loan.

Processing Fees:
No processing fees/ 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 month after securing a job, whichever is earlier. Place of Study Studies in India Studies in Abroad Loan Amount Rs. 10 lakhs Rs. 20 lakhs Repayment period in years 57 5-7

Security:
Amount For loan upto Rs. 10 lakhs for studies in India and up to Rs. 20 lakhs for studies abroad. Upto Rs. 4 lakhs No security Collateral security in the form of suitable third party Above Rs. 4 lakhs to guarantee. The bank may, at its discretion, in Rs. 7.50 lakhs exceptional cases, weive third party guarantee if satisfied with the networth/ means of parents who would be executing the documents as joint borrow Tangible collateral security of suitable value, along Above Rs. 7.50 lakhs 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 borrow, In case of married person, co-obligator can be either spouse or the parents/ parents-in-law.

Margin
For loans upto Rs. 4 lakhs : No margin For loan above Rs. 4 lakhs: o Studies in India : 5 % o Studies Abroad : 15%

Documentation Required:
1. Completed Education Loan Application Form. 2. Mark sheet of last qualifying examination. 3. Proof of admission scholarship, studentship etc. 4. Schedule of expenses for the specified course 5. 2 passport size photographs 6. Borrowers bank account statement for the last 6 months 7. Income Tax assessment order, of last 2 years 8. Brief statement of assets and liabilities, of the co-borrower 9. Proof of Income (I.e. Salary slips/ Form 16 etc.)

CAR LOAN

3.4 Car Loan


Car or Auto loan as the name signifies are various loans taken to buy your dream vehicle. Move ahead in life with SBI Car loans! If you have been putting off purchasing that car, we invent you to go through our Car Loan Scheme. Low interest rates, easy repayment options, total transparency. Finance to include vehicle registration charges, insurance, one-time road tax and accessories(subject to conditions).

Advantage of Car Loan


Excellent service and lower costs. A quick survey of similar schemes available elsewhere and you will find that SBI Car Loans for new and old vehicle offer you:

1. Lower interest rates 2. Longer repayment period of unto 84 months. 3. No hidden costs or administrative charges. 4. Finance for one-time road tax, registration fee, insurance premium and accessories. 5. No advance EMIs,(some banks/companies ask you to pay one or more EMIs at the of disbursement of loan, thereby effectively reducing your loan amount) 6. Complete transparency : We levy interest on daily reducing balance method. When you pay one instalment, the interest is automatically calculated on the reduced balance thereafter.when you pay interest on annual reducing balance ,as charged by many other companies/banks, the interest amount for the coming year is determined on the amount outstanding at the beginning of the you.You continue to pay interest even on the amounts you repay during the year.

Purpose
You can take finance for : 1. A new car, jeep or Multi Utility Vehicles (MUVs) 2. A used car / jeep (not more than 5 years old). (Any make or model). 3. Take over of exiting loan from other Bank/Financial Institution.

Eligibility
To avail an SBI Car Loan, you should be : 1. Individual between the age of 21-65 years of age. 2. A Permanent employee of State / Central Government, Public Sector 3. Undertaking, Private company or a reputed establishment or 4. A Professionals or self-employed individual who is an income tax assesses or 5. A Person engaged in agriculture and allied activities. 6. Net Annual Income Rs. 100,000/- and above.

Salient 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 loan amount for new cars.Loan amount for used car is subject to a maximum limit of Rs. 15 lakhs.

Type of Loan:
1. Term Loan 2. Overdraft -

Documents Required
You would need to submit the following documents along with the completed application form if you are an existing SBI account holder: Statement of Bank account of the borrower for last 12 months. 2 passport size photographs of borrower(s). Signature identification from bankers of borrower(s). A copy of passport /voters ID card/PAN card. Proof of residence. Latest salary-slip showing all deductions 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. 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.

Margin:
New / Used vehicles : 15% of the on the road price.

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

For Salaried Maximum of 84 months.

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).

Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions.

Interest Rate:
SBI Car Loan Scheme SL. No 1 PARAMETER SCHEME Applicable to DETAILS All New Car Loans to Public At present the following Interest rates are applicable: For Term Loan: 2 Interest Rate 1.25% above Base Rate, i.e. 11.25% p.a. For Overdraft: OD will attract 0.50% more than the existing rate for Term loans.

NRI Car Loan Tenure For all tenures Rate of Interest 1.25% above Base Rate i.e. 11.25% p.a.

Two- Wheeler Loan Tenure Up to 3 years Rate of Interest 8.25% above Base Rate i.e. 18.25% p.a.

Used Vehicles Tenure Up to 3 years Rate of Interest 7.25% above Base Rate i.e. 17.25% p.a.

Above 3 yrs

7.50% above Base Rate i.e. 17.50% p.a.

Certified Pre-owned Car Loan scheme Tenure Up to 3 years Rate of Interest 6.00% above Base Rate i.e. 16.00% p.a.

Above 3 yrs

6.50% above Base Rate i.e. 16.50% p.a.

Processing Fee
0.50% of Loan amount and to be paid up front. Minimum: Rs. 500/Maximum Rs. 10,000 25% of Processing fee will be retained if application is rejected after pre sanction survey.

3.4 Loan Against Property


A dream come 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 make s 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 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


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 Whatever. 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 assesses 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.

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

Margin:
We will finance upto 60% of the market value of your property.

Interest:
Size of Credit Limit (Term Loan) Upto Rs. 1,00,00,000/Rate of Interest 5.25% above Base Rate Floating, currently 15.25% p.a. Above Rs. 1,00,00,000/5.50% above Base Rate Floating, currently 15.50% p.a. No Overdraft against Mortgage of Property

Repayment:
Maximum of 60 equated monthly installments, upto 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.

Processing Fees:
2% of the loan amount [inclusive of the service tax]. Max of Rs. 50,000/-

Security:
As per banks extant instructions.

EASY TRAVEL LOAN


Travel Loan, Loan for tour

3.5 Travel Loan


Do you want funds readily available to you whenever you desire to go on a vacation that you plan with your family or friends? SBI's Easy Travel Loan is the Answer to your questions. Enjoy the SBI Advantages: 1. Low interest rate. Further, SBI charge interest on a daily reducing balance!! 2. Low processing charges, only 1% of loan amount. 3. Complete transparency. No hidden cost or administrative changes. 4. No security required which means minimal documentationsomething that you had always wanted. 5. No prepayment penalties. Reduce your interest burden and optimally utilize your Surplus funds by prepaying the Loan. 6. Long repayment period of up to 48 months.

The Scheme Purpose


To meet any kind of Travel expense such as cost of ticket, hotel stay, visa, Airport tax, purpose of Basic Travel Quota, etc.

Eligibility
You are eligible if you are: 1. A State/Central Govt. Employee, employee of public sector undertaking/ reputed profit making public limited company, reputed institutions, MNC with a minimum service experience of 2 years.

2. A self employed professional, with a minimum 2 years standing. You Should be 60 years of age or less.

3. A Pensioner of PSU/Govt. (Central/State)/Public Sector Bank who has taken premature voluntary retirement and is 60 years of age or less

4. Agent of insurance/KVP/Mutual funds etc. with 3-5 years standing who is a tax assesse and whose gross annual income exceeds Rs. 2 lacs.

5. A trader, who has cash flows to repay the loans and can provide suitable third party guarantee, you should restrict your banking requirements to the Branch where the loan is proposed to be taken.

Salient Features
Loan Amount:
Your personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24,000/- Maximum : 12 times Net Monthly Income for salaried Individuals and pensioners and 1 year's net annual income in case of self employed professionals with the under noted ceilings. For Salaried individuals and self employed professionals: Rs.2.5 lakhs (Rs.5 lakhs in New Delhi, Chennai, Bangalore, Hyderabad, Mumbai and Kolkata and can be further increased to Rs.10 lakhs if the self-employed professional maintains a satisfactorily conducted account with our branch or the salary of individual is regularly credited to their account with our Bank) For pensioners : Rs.1.5 lakhs For members of business community: Rs.3.0 lac or 1 years net annual profit During the preceding financial years, whichever is lower.

Documents Required
For existing bank customer: 1. Copy of the passport ( for overseas travelers ) 2. Copies of Rail-tickets/Bus tickets/Air tickets and visas(for overseas travellers) 3. Sundry charges etc. 4. Passport size photograph 5. For salaried individuals Latest salary slip and Form 16, for Self-employed 6. individuals and Professionals IT returns for the last two financial years. Proof of Professional Qualification (for self employed professionals) 7. Copy of the highest professional degree held.

For New Customer: Important documents to be furnished while opening a Personal Loan Account: 1. Proof of Identity. 2. Copy of passport 3. Copies of Rail-tickets/Bus tickets/Air tickets and visas. 4. Sundry charges, etc 5. Passport size photograph 6. For salaried individuals Latest salary slip and Form 16 for Self-employed 7. individuals and Professionals IT returns for the last two financial years. Proof of Residential address, this can include home and establishment certificate/Lease deed/Telephone Bill. 8. Proof of Professional Qualification (for self employed professionals) Copy of highest Professional degree held Proof of official address (for members of business community),this can include shop and establishment certificate/Lease deed/Telephone Bill.

Margin:
We do not insist on any margin amount.

Interest Rates:
3.25% above SBAR Floating i.e.17.00% p.a.

Repayment:
The loan is repayable in a maximum of 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty.

Security:
No security is needed except in the case of members of business community where suitable third party guarantee is required.

3.6 Teacher-Plus Scheme


The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires." ~ William Arthur Ward

Enjoy the SBI advantage :


1. Concessions in margin amounts, interest rates and processing charges!! 2. Lowest interest rates. Further, we charge interest on a daily reducing balance!! 3. Lowest processing charges; only 1% of loan amount - compare with 1-3% of others. 4. No hidden costs or administrative charges.. 5. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan. 6. Flexible repayment period.

The Scheme
SBI recognizes the special position sanctioned for teachers in our society and is proud to introduce Teacher Plus - a special scheme for teachers placed under State and Central Governments as also under the deemed universities. Through Teacher Plus, you can avail of concessions in the rates of interest, processing charges and margin amounts in the following schemes : Personal Loan Car Loan Festival Loan Housing Loan

Eligibility:
This scheme is open for all teachers placed under State and Central Governments as also under the deemed universities.

Documents Required:
As applicable to Personal loan, Car loan, Festival loan and Housing loan schemes.

3.7 Loan To Pensioners:


If you are a Central or State Government pensioner drawing your pension through one of our branches and are not more than 72 years of age, you can avail of a loan from your branch to meet your personal expenses. We understand you may have an urgent or unexpected need for funds or a family obligation to be fulfilled and appreciate your association with us.

You can avail a loan of up to a maximum of 12 months pension, subject to a ceiling of Rs.1,00,000. The documentation is easy.

There are no processing fees, no hidden costs and no prepayment penalties. Whenever you have some surplus funds, you can credit your loan account, thereby reducing your loan liability and interest burden.

Purpose:
To meet personal expenses .

Salient features of the Scheme:


Eligibility:
1. Pensioners: All Central and State Government pensioners, whose pension accounts are maintained by our branches. The pensioner should not be more than 72 years of age. 2. Family Pensioners: Family pensioner, i.e. spouse authorized to receive pension after the death of the pensioner, subject to condition that family pensioner should not be more than 65 years of age.

Loan Amount:
1. Pensioners: A maximum of 12 months pension with a ceiling of Rs.3 lakhs

2. Family Pensioners: A maximum of 9 months net family pension with a ceiling of Rs.1.50 lakhs. In no case the EMI should be more than 25% of the net pension drawn by the family pensioner.

Collateral Security:
Pensioners: Third party guarantee (TPG) of the spouse eligible for family pension. In the absence of the spouse, TPG of any other family member or a third party worth the loan amount. Family Pensioners: Third party guarantee of a person who has been maintaining a satisfactorily conducted account with the bank, preferably of the son/daughter of the family pensioner.

Repayment:
In EMIs commencing from the pension payable one month after disbursal of loan. Installment is deducted at the time of payment of pension: Age at the time of loan Repayment Period sanction Up to 70 years 70-72 years 36 months 24 months Age at the time of full repayment 73 years 74 years

Rate of Interest:
4.75% above SBAR Floating i.e. 14.75% p.a.

3.8 Loan Against Shares \ Debenture


Do you need urgent cash but you don't wish to sell or liquidate your holding of shares? Leverage your investments in shares, debentures, public sector bonds and Government securities for loans to meet unforeseen expenses!! You need not miss out on the next stock market boom!! Avail of loans up to Rs.20.00 lakhs against your shares/debentures to enable you to meet contingencies, personal needs or even for subscribing to rights or new issue of shares.

Enjoy the SBI Advantages:


Low interest rates. Further, we charge interest on a daily reducing balance Low processing charges; only 1% of loan amount - compare with 1-3% of others. No hidden costs or administrative charges.. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan.

THE SCHEME
Purpose
For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares/ debentures against the security of existing shares/debentures. Loan will not be sanctioned for (i) Speculative purposes (ii) Inter-corporate investments or (iii) Acquiring controlling interest in company / companies.

Loan Amount:
You can avail of loans up to Rs 20.00 lakhs against your shares/debentures.

Margin:
You will need to provide a margin amount of 50% of the prevailing market prices of the shares/ non-convertible debentures being offered as security. (The market prices refer to the prices in the Stock Exchanges as reported in the Economic Times.)

Interest Rate:

Scheme Equity Plus Scheme

Rate of Interest 6.50% above Base Rate, currently 16.50% p.a.

Repayment Schedule :
To be liquidated in maximum period of 30 months through a suitable reducing DP programme.

In case of a default or if the outstanding is over Rs.20.00 lakhs, the shares/debentures will be transferred in the name of the Bank.

Security:
Pledge of the demat shares/debentures against which overdraft is granted.

Eligibility:
This facility is available to our existing individual customers enjoying a strong relationship with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either or Survivor'/'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan. The facility is available at 50 select centers.

Documents Required
You will be required to submit a declaration indicating:

Details of loans availed from other banks/ branches for acquiring shares/ debentures.

Details of loans availed from other banks/ branches against security of shares/ debentures

3.9 FESTIVAL LOANS


It is the festive season is the unavailability of ready funds, dampening the celebrations? Avail of SBI's Festival Loan and bring back the cheer and celebrate in style Hurry, the gifts and the sweets are waiting. SBI offers the unique facility of Festival Loans to help you meet any kind of festival related expenses.

Enjoy the SBI Advantage :


Low interest rates, currently 15.50% p.a.(compare with the 18.00% - 30% p.a. charged by others for personal loans/credit card companies.) Low processing charges; 1.10% of loan amount(inclusive of service tax) per application. No hidden costs or administrative charges. No security required if check off is available.. which means minimal documentation. something that you had always wanted. No prepayment penalties. Repayment period of upto 12 months. Complete Transparency.

THE SCHEME
Purpose:
To meet any kind of festival related expenses.

Eligibility :

A net monthly income of Rs.3000/- and above. Spouses income can also be considered in calculating the loan amount provided he/she guarantees the loan or the loan is taken jointly.

An Employee of Govt., PSUs, profit making public/private limited companies/ institutions etc with a minimum of 2 years service OR Self employed person with minimum 3 years standing/experience OR

A person having regular source of income from verifiable channels like Pension and interest from TDRs/NSCs/Govt. Securities etc

Loan Amount
Your festival loan limit would be determined by your income and repayment capacity. Minimum Rs.5000/Maximum : 4 times your Net Monthly Income, subject to a ceiling of Rs.50,000/-.

Interest Rates:
6.75% above Base Rate, currently 16.75% p.a.

Repayment:
You can repay the loan over a period of 12 months through Equated Monthly Installments (EMI). Should you wish to deploy your surplus funds towards prepayment of the loan, feel free to do so without any prepayment penalty.

Security:
Personal guarantee of the spouse or any other person of adequate worth where check off facility is not available.

Processing Fee :
You need to pay only a nominal processing fee of 1.10% of the loan amount.

Documents Required:
Passport Size Photograph Proof of official address for self employed individuals and professionals. This can include shop and establishment certificate/Lease deed/Telephone Bill. Latest Salary Slip and Form 16, in the case of salaried persons IT returns for the last two financial years, in the case of self employed individuals and professionals

3.9 Tribal-Plus Scheme


The scheme is a special Housing finance scheme for Hill/ Tribal areas of North East India and areas around Chandigarh, Bhopal, Lucknow, Patna and Bhubaneswar.

Advantages:

Lowest interest rates. Further, we charge interest on a daily reducing balance!!

Lowest processing charges; only 1% of loan amount - compare with 1-3% of others.

No hidden costs or administrative charges.. No security required - which means minimal documentationsomething that you had always wanted.

No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan.

The Scheme
The Tribal Plus is a special to provide housing finance for Hill/Tribal areas without mortgage of land. Loans will be granted to individuals to:

Purchase or construct a new house or flat. Purchase an existing house or flat (old) that is not more than 10 years old. Repair or extend or renovate an existing house or flat.

Eligibility:
Individual(s) over 21 years of age (but not more than 60 years) who are permanent employees of Central or State Government or Public Sector undertakings (PSU) or reputed private sector units and have put in a minimum of 5 years service as Class I or Gazetted Officers or 10 years for other grades. Check-off facility should be available.

This scheme is open to tribals hailing from the hill states of North East India and areas around Chandigarh, Bhopal, Lucknow, Patna, and Bhubaneswar. They can avail this scheme from SBI branches in these areas.

If they are not currently living in these areas, they can still avail of the scheme for a housing loan to be used at their native village!\

Salient Features:
1. Loan Amount The maximum loan amount will be calculated on the basis of 24 times the net monthly income (NMI) of the applicant subject to a maximum of Rs.5.0 lacs. The income of the spouse can also be considered for this purpose provided he/she is a permanent employee of Government / PSU / Private Sector unit and is willing to guarantee the loan.

2. Margin A minimum margin of 25% is envisaged.

3. Disbursement Disbursements will be made in a phased manner in tune with the actual progress in the construction. However, in case of outright purchase of house, there could be a one-time disbursement of the loan amount.

4. Repayment Schedule: The loan is to be repaid over a period of 10 years through Equated Monthly Installments. The repayment period will include the moratorium or repayment holiday, at the option of the beneficiary, covering the construction period or 12 months from disbursement of the first instalment of the loan, whichever is earlier. As with all our schemes there is no prepayment penalty whatsoever!

5. Security: As per bank's extant instructions.

6. Processing Fess: 0.25% of the loan amount.

7. Document Required: In addition to the usual documents, under noted documents or papers will also be obtained: Affidavit sworn by the applicant that he/she is the owner of the plot of land. Post-dated cheques representing monthly installments may also be taken till the loan is liquidated. In specific cases, an agreement to mortgage the land may also be required.

3.10 Credit Khazana


The "SBI Credit Khazana" Scheme offers Housing Loan customers, concessions in interest rates and margins when they subsequently avail of any of the following loans: Car Loan, Scoom, Education Loan, Personal Loan, Tractor Loan. 1. Eligibility: Housing Loan customers who have serviced the loan regularly for at least one year and where Equitable Mortgage has been created. 2. Concession in Interest: There will be a concession of 0.25% in interest when any of the above mentioned loans are availed. 3. Concession in Margin: There will be a concession of 10% in case of Car Loan and 5% in case of Tractor Loan. Under the SCOOM Scheme, the margin has been maintained at 5%. 4. Security The security required to be taken under the individual schemes would be taken and additionally, the Equitable Mortgage taken for the Housing Loan would be extended to cover the new loan(s). 5. Insurance Free accident insurance cover (to cover death only) is available in case of Car Loan.

6. Other terms & Conditions: Other terms & conditions like Amount of Loan, Repayment,

Documentation will be the same as those laid down for the individual schemes.

SME SCHEME

4. SME SCHEME

Business loan
SME Open Term Loan Cyber Plus Rice Mile Plus Dental Doctor Plus SBI Shoppe School Plus

Small and medium-sized enterprises (SMEs) are the backbone of all economies and are a key source of economic growth, dynamism and flexibility in advanced industrialized countries, as well as in emerging and developing economies. SMEs constitute the dominant form of business organization, accounting for over 95%and up to 99% of enterprises depending on the country. They are responsible for between 60-70% net job creations in Developing countries. Small businesses are particularly important for bringing innovative products or techniques to the market. Microsoft may be a software giant today, but it started off in typical SME fashion, as a dream developed by a young student with the help of family and friends. Only when Bill Gates and his colleagues had a saleable product were they able to take it to the marketplace and look for investment from more traditional sources SMEs are vital for economic growth and development in both industrialized and developing countries, by playing a key role in creating new jobs. Financing is necessary to help them set up and expand their operations, develop new products, and invest in new staff or production facilities. Many small businesses start out as an idea from one or two people, who invest their own money and probably turn to family and friends for financial help in return for a share in the business. But if they are successful, there comes a time for all developing SMEs when they need new investment to expand or innovate further. That is where they often run into problems, because they find it much harder than larger businesses to obtain financing from banks, capital markets or other suppliers of credit State Bank of India is the forerunner in the field of SME financing .Majority of the loans to SMEs are been provided by SBI. SBI has introduced various schemes for SMEs. The various schemes are according to the sector in which a particular SME belongs. SBI has introduced SME financing for SME belonging to sectors like: Agriculture, Medical, Transport, Tourism, Education and many more.

Steps for SME loans by State Bank of India (SBI) Steps for SME loans by State Bank of India (SBI)
1. Application for loan by SME to local branch of a particular area.

2. Inspection/Survey of SME by the Executives of that Local branch.

3. Sending the Documents of survey by Local branch to SMEC branch

4. Preparing credentials of Promoters and firm by SMECC branch and investigating the same

5. Estimating the amount of loan to be sanctioned and forwarding the documents for sanctioning.

6. If the loan is been sanctioned by the central authority then disbursement of the loan amount into account of the SME.

The above figure shows the steps for availing finance through State Bank of India (SBI) using loans. Here is the brief description of the above shown procedure:

First of all the SME who wants to avail loan has to visit the local branch office of their area, where by the loan application is been filled by the SME. After that the executives of that branch check whether all the necessary documents are provided by the SME or not, then if all necessary documents are submitted the next step comes whereby the officials of that local branch go to the premises of that SME and just have a brief survey of promoter as well as the premises.

After they are satisfied they send the file of necessary documents to the SMECC branch, which is a special branch for SME loans. Where by the credit appraisal takes place, which consist of credit appraisal of promoter, financial appraisal, determining cost of project, understanding various means of finance used, profitability estimate, cash flow projections , marketing appraisal etc. ,which is explained in next section. This step brings out the clear picture whether the loan should be given to the SME or not?

If the SMECC branch is satisfied with the details then it forward the request of granting loan to the sanctioning authority. And finally after the verification by sanctioning authority, the disbursement of loan amount takes place in the account of that SME.

This whole procedure right from application to disbursement of loan amount takes approximately 20-25 days as the procedure involves analysis of documents by various branches and thus the movement of documents amongst them, if all this procedure would have taken place at single place then it would take only 10-12 days for disbursement.

4.1 SME OPEN TERM LOAN


Nature of Facility:
The product is a pre-approved term loan facility which can be disbursed over a period of 12 months depending on units request. The units get comfort of preapproved sanction to plan their capital expenditure and negotiate with suppliers of machinery to finalize the best possible terms and then get the loan disbursed.

Facility available for:


All units under manufacturing sector. Under Service sector: Educational Institution, Healthcare Industry (Hospital, Doctors, Pathological Labs, and Nursing Home), Hospitality Industry (Hotels, Restaurants, and Health Club etc), and Transport Operators with minimum 25 vehicles.

Purpose:
Any genuine commercial purposes in line with regular business activity of the customer. These would include Expansion and modernization. Substitution of high cost debts/ high cost term debts of other banks/FIs. Design and introduction of new lay-outs in the factory to enhance productivity. Up gradation of technology & energy conservation schemes/ machinery. Acquisition of software, hardware, consumable tools, jigs, fixtures, vehicles, equipment , furniture upholstery etc. Acquisitions of ISO & other similar certifications. Visits abroad for acquiring technology, finalizing business deals, participating in exhibitions/ fairs for market promotion etc.

Loan Amount:
Maximum Rs 2.50 crore for both manufacturing and services enterprises, subject to credit rating and purpose of the loan.

Repayment period:
Maximum 3 years, extendable up to 5 years.

Interest Rate:
Facility Term Loan (Based on Credit Risk Base Rate10% + 4.75% to Base Rate +6.50% Interest Rate for period upto 3 years

Assessment Model)

Collateral security
Personal Guarantee of promoters in all cases Pledge of Promoters equity in case of corporate.

Eligibility
Existing or new corporate/ Non corporate customers of SME segment with good rating.

4.2 CYBER PLUS


Eligibility
Individual entrepreneurs The kiosk operator should be a local person Educational qualification - Minimum Plus two Age between 20 and 45 years Should possess basic computer knowledge.

The operator will be interviewed, selected and trained by N -Logue.

Purpose:
To set up internet/cyber cafes especially at rural and semi -urban centers with potential for such a facility

Nature of facility
Composite loan

Amount of loan margin :


Rs. 9000

Tenure of Loan
36 to 40 monthly installments Moratorium period - 3 months

Primary security
Security for assets purchased from bank finance

Interest Rate:
Loan 9.5%

4.3 RICE MILE PLUS


Purpose:
Acquisition of machinery/ f actory building f or modernization or expansion. W orking capital needs.

Loan amount:
Based on project cost.

Amount of loan available:


Term loan 15 -25% W orking capital s stock: Paddy & rice - 15-75% Brokens 20% Gunny bags 40% Bran 30%

Repayment:
Term loan: Minimum -5 yea rs, Ma ximum -7 yea rs W orking Capital: 12 months can be extended to other 12 months under certain conditions.

Collaterals securit y:
Loan over 5 lakhs Equitable mortgage of property/ tangible Securit y belongin g to borro wer/ guarantor valued not less than 75% of the loan amount.

Eligibilit y:
Prof it making exit ing units and new units of good credit rating.

Interest Rate:
Loan amount Rs.50,000 Between Rs. 50000 & 2 lakhs Between Rs.2 lakhs & 5 lakhs Between Rs.5 lakhs & 25 lakhs above Rs.25 lakhs Interest rate 8.5 % 9.5% 10.25% 11 % 12.75 %

4.5 DENTAL DOCTOR PLUS


Purpose
To boost the financing to Dental equipment under tie -up arrangement. To finance qualified dentists For buying equipment Any other activities related to Dental profession

Loan amount;
Maximum of Rs.10 Lakhs

Amount of loan available:


Up to Rs. 25,000 NIL Over Rs. 25,000 and up to Rs. 5 Lakhs 10% Over Rs. 5 Lakhs and up to Rs. 10 lakhs 20%

Repayment:
Minimum- 3 years, Maximum period of 5 to 10 years Maximum moratorium period of 6 months .For construction

purposes the moratorium period is 12 months (can be relaxed upto 24 months at the discretion of an authority one level higher than the sanctioning authority)

Nature of facility:
Term loan

Primary security
Hypothecation of assets financed by the Bank

Eligibility
Individuals/Partnership firms/Ltd. Co/Trust Promoters should have minimum BDS and should be registered practitioners.

Interest Rate:

Loan amount
Rs.50,000 Between Rs. 50000 & 2 lakhs Between Rs.2 lakhs & 5 lakhs Between Rs.5 lakhs & 25 lakhs

Interest rate
8.5 % 9.0% 9.25% 10.25 %

4.5 SBI SHOPPE


Purpose
Purchase of new/old shops/establishments/offices. Modernization/expansion of establishments/shops, etc. All furniture/fixtures, electrical fittings and other accessories

required for shops/showrooms/offices.

Loan amount :
Maximum of Rs 20 lakhs.

Nature of facility :
Term loan (MTL).

Margin:
25% for purchase new shop 40% for purchase old shop.

Repayment:
Minimum- 3 years, Maximum- 7 years Maximum moratorium period - 6 months

Primary Security:
Hypothecation/ pledge/ mortgage/ assignment of property purchased out of bank's finances including non-industrial assets.

Rate of Interest :
As applicable to SIBTLs below Rs 25lakhs.

Processing fess:

Processing fess ranges from 1% to 1.50% of the loan amount.


Eligibility:
Eligibility Any of the following are eligible: Individuals Firms Partnership Firms Trusts Franchises.

4.6 SCHOOL PLUS


Purpose:
Construction of new buildings, repair and renovation of old building Purchase of electronic & lab equipment, books, manuals, furniture & fixture, etc.

Nature of facility :
Term loan with fixed repayment schedule based on repayment capacity and income streams

Margin:
15% of the project cost

Repayment:
Loan amount upto Rs. 2 ;lakhs Repayable in 36 equated monthly installment. Loan amount from Rs.2 lakhs to 5 lakhs Repayable in 60 equated monthly . Loan amount above Rs. 5 lakhs Repayable in 84 installment. monthly

Processing fess:
Processing fess ranges from 1% to 1.50% of the loan amount.

Security:

Primary security : Hypothecation of Assets financed by the bank


Collateral security: Tangible collateral in the form of immovable property, TDRs, NSCs, KVPs, LIC policies etc equivalent to 50% of the total loan amount may be obtained.

Eligibility:
Educational institutions with adequate source of income Educational institutions run by trusts, private management Institutions should have necessary approval from the Government agencies to run the school Building construction/alteration/renovation should have a proper approval from local bodies The promoters/Trustees/key persons of the school should be persons of good standing in the society.

Interest Rate:
Loan amount Rs.2,00,000 Between Rs. 2 lakhs & 5 lakhs Between Rs.5 lakhs & 25 lakhs Interest rate 9.25 % 10.25% 10.00%

State Bank of India Caters to the needs of agriculturists and landless agricultural labourers through a network of 8750 rural and semi-urban branches. Apart from the branches, there are 428 Agricultural Development Branches (ADBs) which also cater to agriculturists. They are the leaders in agri finance in the country with a portfolio of Rs. 64,000 crs in agri advances covering around 80 lakhs accounts. State Bank of India's branches have covered a whole gamut of agricultural activities like crop production, horticulture , plantation crops, farm mechanization, land development and reclamation, digging of wells, tube wells and irrigation projects, forestry, construction of cold storages and godowns, processing of agri-products, finance to agri-input dealers, allied activities like dairy , fisheries, poultry, sheep-goat, piggery refurbished second hand tractors, loans against pledge of warehouse receipts, loans against produce stored by the farmer at his own premises, loans against book debts of Arthias, mulberry cultivation, rearing of silk worms and grainages. Infact Bank can cover any other agricultural related activities undertaken. State Bank of India are setting up Agri Commercial Branches (ACBs) which will handle high value agri financing involving large investments. It envisages lending through corporate partnerships and other large enterprises for commodity financing, investment credit, other high value agriculture segments like horticulture, floriculture & food processing etc. It also focuses on Agri related SME including setting up of Rice and Dhal mills, seed processing industry, food processing industry, large and small scale dairy units, etc.

5. Agricultural Loan

SBI LOAN RURAL BANKING Agricultural finance


Agricultural gold loan Kisan credit card Produce marketing loan Land purchase scheme Land development scheme Agricultural Crops loan Scoring model for tractor loan

5.1 Agricultural Gold Loans


Purpose:
Bank extends hassle free finance to farmers / agriculturists against Gold Ornaments / gold wares to increase their liquidity to meet crop production expenses, Investment expenses related to agriculture and / or allied agricultural activities.

Eligibility
Any person engaged in agriculture or allied activities as well as persons engaged in activities permitted to be classified under agriculture.

Quantum of Loan
Up to 70% of the value of the ornaments .Value will be as advised by the bank to the branches periodically.

Security
Pledge of gold ornaments.

How do you repay


Credit / Overdraft: Like KCC, it is a running account for a period of 3 years.

Demand Loan / Term Loan :


The repayment period of the loan should be fixed so as to coincide with the harvesting and marketing season / generation of income from the activity, allowing 2 to 3 months time after harvesting to market the produce and realize the proceeds. However, the total period will not generally exceed one year from the disbursement of the loan in the case of short-term loan / production credit and 36 months in other cases.

5.2 Kisan Credit Card (KCC)


Purpose:
To provide timely and adequate credit to farmers to meet their production credit needs(cultivation expenses) besides meeting contingency expenses, and expenses related to ancillary activities through simplified procedure facilitating a ailment of the loans as and when needed.

Who are eligible for the loan?


Owner cultivators, tenant cultivators and Share croppers. Agricultural borrowers having good track record for the last 2 years (i.e., Maintaining standard loan accounts). Creditworthy new borrowers can also be financed.

Loan amount
Loan amount is based on operational land holding ,cropping pattern and ancillary and contingency needs of the farmer for the full year 100% of the cultivation cost available as loan upto Rs 50000/ and 85 % of the cost as loan above Rs 50000/. Expenses to meet important ancillary activities to production can also be financed in addition to the above The total limit is inclusive of 20% of production credit, which includes crop production expenses and working capital for allied agricultural activity,as contingency credit /consumption loan.

Disbursement of the Loan


As per the cultivation requirements of the crop, the loan will be disbursed in cash .

Security

Loan amount up to Rs 50000

Hypothecation of Crops

Above Rs 50000/ up to Rs 100000

(1) Hypothecation of crops. (2) Mortgage of land or third party guarantee *

Above Rs 100000/ (1) Hypothecation of crops (2) Mortgage of lands

*For loans up to Rs 1 lakhs to farmers having legal ownership of agricultural lands with good rack record for last 2 years, no collateral is required

How do you repay


It is a revolving cash credit limit with any number of withdrawals and repayments and Limit is valid for 3 years.

5.3 Produce Marketing Loan


Purpose:
To help farmers avoid distress sale of their produce To enable prompt repayment of crop loan dues and provide liquidity to farmers to meet contingency needs.

To offer the facility of loan against the stocks stored in farm houses, in addition to loan against warehouse receipts.

Who are eligible for the loan?


1. All non-defaulter borrowers of our branches, who can store the produce either in their own farm/premises itself or in a Warehouse / cold storage. 2. Crop loan borrowers of other Banks and also Non-Borrower Farmers, who store their produce/ stocks in a Warehouse / cold storage.

Loan amount:
60 to 80% of value of produce depending upon the place of storage subject to a maximum of Rs.10 lakhs.

Documents you need to produce:


Stock statement for valuation and evidence of stocks at your residence/ godown Warehouse receipt, duly endorsed , if stocked at warehouse.

Security :
1. Loan sanctioned against goods stored in Farmers godown: Primary : Hypothecation of stocks.

Collateral : Mortgage / Charge over Land or Third Party guarantee for loans \above Rs. 50,000/-.

2. Loans sanctioned against Warehouse Receipts (WHR) : Primary : Pledge of stocks.

Collateral : No collateral is required for loans up to the maximum permitted limit of Rs.10 lakhs under the scheme.

Disbursement:
After liquidating the crop loan ,surplus will be disbursed in cash.

How to repay?
Loan has to be repaid within a maximum period of 12 months depending upon the crop.

5.4 Land Purchase Scheme


Purpose:
To assist Small & Marginal farmers and landless agricultural labourers for purchase of Land, who are our existing borrowers to consolidate land holdings & development of Wasteland & fallow lands.

Who are eligible?


Small & Marginal Farmers owning less than 5 acres of un irrigated / 2.5 acres of irrigated land in their own names , landless agricultural labourers. The borrowers should have a record of prompt repayment of the loan for at least two years. Good borrowers of other Banks are also eligible provided they liquidate their Outstanding to other banks.

Loan amount:
Loan may be considered for: Cost of land Provision of irrigation facilities & land development (shall not exceed 50% of the cost of the land). Purchase of farm equipments. Registration charges & stamp duty.

Loan amount will be 85 % of the cost of the land, as assessed by the bank, subject to the maximum of Rs 5 lakhs

Security
Mortgage of land to be purchased

How to repay the loan


Max. 9-10 years beginning after the expiry of gestation period, with half-yearly installments.. .Gestation period will be maximum of 1 year for the developed land and 2years for the land to be developed..

5.5 Scoring Model For Tractor Loan


Purpose:
Agricultural term loans are sanctioned for purchase of new tractors, accessories and implements

Who are eligible for tractor loan?


Agriculturists (individually or jointly ) and Persons offering security like NSCs, KVPs, the Banks Fixed Deposits, surrender value of LIC policy, gold ornaments etc. to cover more than 60% of the loan amount are eligible for the loan .The applicants should score minimum score of 40 under the Scoring model of the bank.

Loan amount:
Up to 95 % of the cost of the Tractor, trailer and accessories. (Depending on the scores in the scoring model).The cost includes the Registration charges and insurance premium not exceeding Rs 15,000/-. Additional loan equal to 10% of tractor loan for repairs may be provided for at the time of sanction. Bank will finance only for those models of tractors which have completed the commercial test from organizations viz. Central Farm Machinery Training and Testing Institute (CFMTTI) Budni (Madhya Pradesh) or Farm Machinery Training and Testing Institute (FMTTI), Hissar

Security:
1. Hypothecation of the tractor, accessories and implements. Noting of Banks hypothecation charge in the RC Book of the tractor is compulsory in all the cases. 2. Collateral Security like NSCs, KVPs, Banks Fixed Deposits ,Surrender value of LIC policy etc OR Mortgage of agricultural lands .However no collateral security is required, if the score is 70 and above on the scoring model of the bank

How to repay the loan Within a maximum period of 9 years, including a grace period not exceeding 12 months. The installments shall be payable half-yearly / yearly, coinciding with the harvesting and marketing period of the crops proposed to be grown by you .

5.6 Scheme for financing seed processors


Purpose:
To extend financial assistance to the seed processors against their receivables due to them from the seed growers.

Who are eligible?


Seed processors / units Enjoying good reputation & credit worthiness. Holding a valid license from the concerned State Department of Industries for Installation of Seed Processing Plant. Having valid certificate from Seed Certification Department. Doing business for the last 3 years. Having receivables from the farmers. Who have posted profits during the past two years of operation are eligible to avail credit limits under the scheme.

Loan amount:
60 % of the value of the receivables. Minimum Rs 2.00 lacs. No upper limit

Security:
(1) Assignment/hypothecation of receivables from the farmers. (2) Equitable mortgage of residential/ commercial property worth 1.5 times of the Limit sanctioned belonging to either the applicant or the guarantor.

How to repay the loan?


Loan to be liquidated within a maximum period of 6 months for each crop season i.e., Rabi & kharif.

CONCLUSION
State Bank of India, a major public sector bank in India, is providing a host of loan products to cater to the various needs of the customers. State Bank of India loans come with truly affordable rates and flexible repayment terms. The terms and conditions are excellent and have been designed to suit the borrowers needs. Loan programs are available from State Bank of India to meet the requirements of individual customers, corporate clients, small and medium enterprises, Non agriculturists. resident Indians, export and import businesses and

BIBLIOGRPY
While working on this project, I have done some research work from the following text books Credit Management Financial Service Management

News-paper DNA Hindustan Time

Various Websites were also visited such as, http://www.sbi.co.in http://www.google.com