A PROJECT SUBMITTED IN PARTIAL FULFILLMENT
FOR
THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION ADMINISTRATION (B.B.A.)
IN FACULTY OF COMMERCE
RASHTRASANT RASHTRASANT
TUKADOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR SPECIALIZATION IN FINANCIAL MANAGEMENT
SUBMITTED BY: BY: Mr. MAHENDRA L.LENDE
UNDER THE GUIDANCE OF:
1
Dr. SHRIKANT.R.PAJANKAR
CO-GUIDE BY Prof.N.K.GHOLASE
DEPARTMENT OF COMMERCE & MANAGEMEN M ANAGEMENT T SANTAJI MAHAVIDYALAYA, WARDHA ROAD, NAGPUR. (2009-10)
SANTAJI MAHAVIDYALA MAHAVIDYALAYA, YA, NAGPUR
2
This is to certify that this project STUDYOF CAR LOAN SCHEME OF is a benefited work carried out & developed by
STATE BANK OF INDIA
MAHENDRA.L.LENDE in partial fulfillment for the award of degree of Bachelor
of Business Administration, during the academic session 2009-10 submitted to RTM Nagpur University, Nagpur under my guidance and supervision. This is also to certify that project is the result of candidate’s own work and is of sufficiently high standard to warrant its submission to the University for the Award of the said degree. To the best of my knowledge the matter presented in this project report has not been submitted earlier for any other degree/diploma to any university. The assistance and help rendered to him during the course o f his project work in form of basic source material and information have been duly knowledge.
CO-GUIDE Prof.N.K.Gholase
PROJECT GUIDE Dr.Shrikant R.Pajankar
Internal Examiner
External Examiner
Place: Nagpur Date: ___/___/_____
SANTAJI MAHAVIDYALAYA, NAGPUR
3
I hereby declare that this project titled STUDY OF CAR LOAN SCHEME OF STATE BANK OF INDIA is benefited and authentic record of work done by m e
under
supervision
of Dr.SHRIKANT.R.PAJANKAR
during
academic
session
(2009-10)
The work presented here is not duplicated from any other source & also not submitted earlier for any other degre e/diploma to any university.
I understand that any such duplication is liable to be punished in accordance with the university rules.
Place: Nagpur
MAHENDRA.L.LENDE
4
Date: ___/___/_____
This endeavor has the benefit of benefacto rs whom I wish to acknowledge and thanks in large measures and my gratitude to head of department Dr.P.D.WANJARI & principle Shri.M.B.BUTE .
I take this opportunity to express my immense sense of gratitude to my Pro jec t Guide Dr.SHRIKANT.R.PAJANKAR & Prof .N.K.GHOLASE (Santaji Mahavidyalaya, Nagpur) . who has been so much instrumental in materializing this work by
Sharing his knowledge and experience with me ove r the topic by way of Discussion and suggestion throughout.
I am also thankful to my sir Prof.SUMANTRA.DUTTA & Prof.S.M.SHARMA who helped me and also guides me to make this project.
And I am personally thankful to my de ar friends LOKESH & SNENAL, LEKHRAJ who helps me in my project.
5
Place: Nagpur
MAHENDRA.L.LENDE
Date: ___/___/_____
1
INTRODUCTION
6-14
2
PROFILE OF SBI
15-24
a) OVERVIEW b) HISTORY c) MANAGEMENT
3
RESEARCH METHODOLOGY
25-34 6
a) OBJECTIVE b) HYPOTHESIS c) MARKETING STRATEGY
4
DATA ANALYSIS
35-63
a) COMPETITOR b) DOCUMENTATION c) SERVICE CHARGES d) FAQ’S
5
FINDING & OBSERVATION
64-66
6
CONCLUSION & SUGGESTION
67-68
BIBLIOGRAPHY
QUESTIONNAIRE
7
8
Consumer Behavior Note: The issues discussed below are covered in more detail at consumer behavior section of this site. Consumer behavior involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a product). Sources of influence on the consumer. The consumer faces numerous sources of influence.
Often, we take cultural influences for granted, but they are significant. An American will usually not bargain with a store owner. This, however, is a common practice in much of the World. Physical factors also influence our behavior. We are more likely to buy a soft drink when we are thirsty, for example, and food manufacturers have found that it is more effective to advertise their products on the radio in the late afternoon when people are getting hungry. A person’s self-image will also tend to influence what he or she will buy — an upwardly mobile manager may buy a flashy car to project an image of success. Social factors also influence what the consumers buy — often, consumers seek to imitate others whom they admire, and may buy the same brands. The social environment can include both the mainstream culture (e.g., Americans are more likely to have corn flakes or ham and eggs for breakfast than to have rice, which is preferred in
9
many Asian countries) and a subculture (e.g., rap music often appeals to a segment within the population that seeks to distinguish itself from the mainstream population). Thus, sneaker manufacturers are eager to have their products worn by admired athletes. Finally, consumer behavior is influenced by learning — you try a hamburger and learn that it satisfies your hunger and tastes good, and the next time you are hungry, you may consider another hamburger. Consumer Choice and Decision Making: Problem Recognition. One model of consumer decision making involves several steps. The first one is problem recognition — you realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. The second step is information search — what are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be ill-suited for long distances and for rainy days. Finally, we have the purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory). In reality, people may go back and forth between the stages. For example, a person may resume alternative identification during while evaluating already known alternatives.
Consumer involvement will tend to vary dramatically depending on the type of product. In general, consumer involvement will be higher for products that are very expensive (e.g., a home, a car) or are highly significant in the consumer’s life in some other way (e.g., a word processing program or acne medication). It is important to consider the consumer’s motivation for buying products. To achieve this goal, we can use the Means-End chain, wherein we consider a logical progression of consequences of product use that eventually lead to desired end benefit. Thus, for example, a consumer may see that a car has a large engine, leading to fast acceleration, leading to a feeling of performance, leading to a feeling of power, which ultimately improves the consumer’s self -esteem. A handgun may aim bullets with precision, which enables the user to kill an intruder, which means that the intruder will not be able to harm the consumer’s family, which achieves the desired end-state of security. In advertising, it is important to portray the desired end-states. Focusing on the large motor will do less good than portraying a successful person driving the car.
10
Information search and decision making. Consumers engage in both internal and external information search. Internal search involves the consumer identifying alternatives from his or her memory. For certain low involvement products, it is very important that marketing programs achieve “top of mind” awareness. For example, few people will search the Yellow Pages for fast food restaurants; thus, the consumer must be able to retrieve one’s restaurant from memory before it will be considered. For high involvement products, consumers are more likely to use an external search. Before buying a car, for example, the consumer ma y ask friends’ opinions, read reviews in Consumer Reports, consult several web sites, and visit several dealerships. Thus, firms that make products that are selected predominantly through external search must invest in having information available to the consumer in need — e.g., through brochures, web sites, or news coverage.
A compensatory decision involves the consumer “trading off” go od and bad attributes of a product. For example, a car may have a low price and good gas mileage but slow acceleration. If the price is sufficiently inexpensive and gas efficient, the consumer may
11
then select it over a car with better acceleration that costs more and uses more gas. Occasionally, a decision will involve a non-compensatory strategy. For example, a parent may reject all soft drinks that contain artificial sweeteners. Here, other good features such as taste and low calories cannot overcome this one “non-negotiable” attribute. The amount of effort a consumer puts into searching depends on a number of factors such as the market (how many competitors are there, and how great are differences between brands expected to be?), product characteristics (how important is this product? How complex is the product? How obvious are indications of quality?), consumer characteristics (how interested is a consumer, generally, in analyzing product characteristics and making the best possible deal?), and situational characteristics (as previously discussed). Two interesting issues in decisions are:
Variety seeking (where consumers seek to try new brands not because these brands are expected to be “better” in any way, but rather because the consumer wants a “change of pace,” and “Impulse” purchases —unplanned buys. This represents a somewhat “fuzzy” group. For example, a shopper may plan to buy vegetables but only decide in the store to actually buy broccoli and corn. Alternatively, a person may buy an item which is currently on sale, or one that he or she remembers that is needed only once inside the store.
A number of factors involve consumer choices. In some cases, consumers will be more motivated . For example, one may be more careful choosing a gift for an in-law than when buying the same thing for one self. Some consumers are also more motivated to comparison shop for the best prices, while others are more convenience oriented. Personality impacts decisions. Some like variety more than others, and some are more receptive to stimulation and excitement in trying new stores. Perception influences decisions. Some people, for example, can taste the difference between generic and name brand foods while many cannot. Selective perception occurs when a person is paying attention only to information of interest. For example, when looking for a new car, the consumer may pay more attention to car ads than when this is not in the horizon. Some consumers are put off by perceived risk . Thus, many marketers offer a money back guarantee. Consumers will tend to change their behavior through learning — e.g., they will avoid restaurants they have found to be crowded and will settle on brands that best meet their tastes. Consumers differ in the values they hold (e.g., some people are more committed to recycling than others who will not want to go through the hassle). We will consider the issue of lifestyle under segmentation.
12
State Bank, the largest bank in India, offers attractive auto loans. State Bank Auto Loan has low interest rates, easy repayment options, and total transparency. Finance package includes vehicle registration charges, insurance, one-time road tax and accessories. And as State Bank branches are located even in remote areas, it is easy to apply. Loan can be availed for new or old car, jeep or Multi Utility Vehicles.
Low interest rates
Repayment period of up to 84 months
No administrative charges
Expenses for one-time road tax, registration fee, insurance premium and accessories included in finance
One need not pay any advance EMI
Interest is levied on daily reducing balance method. When a customer pays one installment, the interest is automatically calculated on the reduced balance thereafter.
13
Anyone with net annual income of Rs One Lakh is eligible for auto loan of SBI. The individual must be between the age of 21-65 years of age. He must be a permanent employee of State / Central Government, Public Sector Undertaking, Private Company or a reputed establishment or a professional or self-employed individual who is an income tax assessed. People engaged in agriculture and allied activities can also avail SBI loan.
The upper limit for car loan amount is not fixed. The bank could sanction a maximum loan amount of 2.5 times the net annual income. Spouse's income could also be considered if the spouse becomes a co-borrower. The sanction amount includes finance for one-time road tax, registration and insurance. Loan amount for used car has the maximum limit of Rs 15 lakhs.
Applicants need to furnish residence proof, identity proof and income proof besides the copy of PAN card. SBI account holders need not produces proof regarding residence and identity.
Once you have zeroed in on the car that you want to purchase, the next step is apply for car loan. There is a lot less paper work involved than a home loan sine the bank does not have to varify any asset as in the case of home loans. It takes about 3-6 days for you to get a car loan a lot less time than a home loan. Here is a step by step break up of the car loan application process:
14
The 1st step is to get in touch with a lender. You need to get in touch with as many lender as possible and get them to make loan offers for you. Then negotiate with them to get the best interest rate. Check if there are any especial offers. After you have got all the banks to make their offers to you, select your lenders based on the information you have in front of you.
After you finalize your lender, the lender’ s direct selling agent will wisit you and collect
document supporting proof of income, residence proof, and identity. You may be re quired to produce copies of IT return, salary sleep,banks statement,passport, driving licence and other relevent document. These requirement vary from lender to lender.
After submiting the documents, a field investigator will visit you your home to double check the facts provided in the documents, such as your place of residence, tenure at work place, and so on. It is essential that you are present during this visit to clarify any query that the investigator might have. Otherwise, the investigator might not get all the facts clearly and could report that the facts you provided do not actually add up- thus forcing the lender to reject your loan application.
15
Once the lender is satisfied with the veracity of your document, the loan is approved. The lender then disburses the amount through cheques or demand drafts
16
For construction, purchase/repair/renovation/alteration of a house or for purchase of a plot for the construction of a house for self occupation on return to India.
A. All Non Resident Indians holding Indian Passports with a regular monthly income of not less than Rs. 10000/b. Spouses and close relatives of Non-Residents, who are residents jointly with the nonresident Indian.
60 times the Net Monthly Income (NMI) / Average Monthly Income (AMI) for p ersons up to 45 years and 48 times for persons above 45 years of age. However, the repayment obligation is restricted to Maximum 60% of the NMI/AMI.
Upton Rs.30 lac - 20% Above Rs.30 lac and up to Rs.3 crore - 25%
Linked to our Prime Term Lending Rate and subject to change click on the link for present interest rates
17
a. Construction of new building. b. In three stages, 30%. 40% and 30% of the loan amount. The last installment will
be disbursed three or four weeks prior to the completion of the building. c.
Outright purchase 100% to the seller, after payment of the margin by the applicant.
d. Purchase of plot and construction of the building. e. The loan component for purchase of the plot will be only 30 % of the total project
coat.
180 months including the repayment holiday of a maximum of 18 months. Repayment will begin on completion of the house or 18 months from the disbursement of the first installment of the loan, whichever is earlier. Repayment can be made either through remittance from abroad or transfer from NRE/FCNR/NRO A/c or by resident relatives. Rental income if any received should go towards repayment of loan. Repayment can be from local sources after returning to India permanently. Premature closure of loan permitted subject to conditions/penalty
Mortgage of property by deposit of title deeds.
18
Limit upto Rs.25,000/-
Nil
Limits above Rs.25,000 to Rs.
0.55% of the loan amount
2 lacs
(Max. Rs.500/-)
Limits above Rs.2 lacs
0.55% of the loan amount (Max.Rs.10,000/-)
Insurance is to be arranged for the total cost of the building.
In addition to the application form (in duplicate) two copies of the passport and two passport size photographs, a declaration-cum-Affidavit in the Bank's approved format, the following papers are to be submitted to the Bank.
19
(a) In the case of salaried persons:
i.
Salary certificate issued by the employer and duly attested by an embassy official
ii.
Average monthly remittance into NRE A/c. in case of others.
iii.
Authorizations to deduct monthly installments from NRE/NRO A/c.
11.2 Documents to be submitted for construction/improvement of houses i.
A copy of the plan inclusive of site plan approved by the Corporation/Municipality /Development Authority /Panchayat as required.
ii.
A copy of the building permit issued by the Corporation/ Municipality/ Panchayat as required. In areas where building permit is not required a no Objection Certificate from the authority concerned.
iii.
Estimate approved by an official not below the rank of Asst.Engineer (Civil)/ Registered Architect / Chartered Egg.
iv.
Original and prior title deeds
v.
Latest tax receipts
vi.
Possession certificate
vii.
Encumbrance certificate from the Sub Registrar for the last 15 years.
20
1)
Purpose :
To finance purchase of new Cars or Jeeps
2)
Persons
NRIs or spouse of NRIs who have regular Net Monthly Income (NMI)
Eligible :
3)
Loan amount :
of not less than Rs 10000.
Up to 30 times the NMI for Cars and Jeeps (The Net Monthly Income of spouse (resident or nonresident) can also be included provided the spouse would also guarantee the loan. In the case of resident employed person, he/she should have permanent employment or be a self employed professional of good standing.) Max 12 lacs
4)
Security:
a) The vehicle should be hypothecated to the bank and the lien noted in the registration certificate book. b) Guarantee of spouse where her / his income is also taken into account for NMI and Loan amount. c) Equitable mortgage of property or third party guarantee of two persons each worth the loan amount.
5)
Margin :
a) 15 % of the cost of the vehicle b) Second hand car upto 2years old 25% of the cost c) Second hand car above 2 years upto 5 years old 40%of the cost
21
6)
Interest :
current interest rate
7)
Repayment :
In 84 Equated Monthly Installments [EMI]
8)
Insurance:
Comprehensive insurance is compulsory for all vehicle loans at your cost with suitable bank clause.
9)
Processing Charges :
10) Papers to be submitted :
0.50% of the loan amount subject to a minimum of Rs.500/- and maximum of Rs.10000/-
a) Invoice in duplicate from dealer b) Application in duplicate c) Two passport size photographs d) Salary certificate of employed persons OR evidence of average remittance into bank (NRE) account for past 12 mo nths e) Details of guarantors and property to be mortgaged, if any
22
23
State bank of India is the largest and on e of the oldest commercial bank in India. In existence 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 is the major share holder of the bank with 59.7% stake. The bank is capitalized to the extent of Rs.647bill.with a public holding 40.3%. SBI has a largest branch and ATM network spread of cross every corner of India. The bank has a branch network of over 14000 branches apart from Indian network it also has a network of 73 overseas offices in 30 country in all time zone , correspondent relationship with 520 international banks in 123 country. In rece nt past SBI has acquired banks in Mauritius, Kenya, and Indonesia. The bank is listed on the Bombay stock exchange, national stock exchange, Chennai, Kolkata and Ahmadabad stock exchange.
SBI groups accounts for around 25% of the total business of the banking industry while it accents for 35% of the total foreign exchange in India. With this types of strong base SBI has displayed a continued performance in the last few years in scaling up it efficiency level.
The bank has 14 directors on the board and is responsible for the management of the banks business. The board in addition to monitoring corporate also carries out function such as approving the business plan, reviewing &approving the annual budgets &borrowing 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 year of experience in the in din banking industry & is seen as futurist leader in his approach towards technology & customer services.
24
Mr. Bhatt would be a key to SBIs future growth momentum. Mr. T.S Bhattacharya is the managing director of the bank & known as for his vast experience in the banking industry. Recently, the senior management of the bank has been broadened considerably. The position of CFO & the head of treasury have been segregated, & new heads for rural banking & for corporate development & new business banking have been appointed. The managements thrust on growth of the bank in term of network & size would also ensure encouraging prospects in time to come.
Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed by
Overseas investors including GDRs with 19.78% stake as on September 06. Indian financial
Institutions held 12.3% while Indian public held just 8.2% of the stock. RBI is the monetary
Authority and having majority shareholding reflects conflict of interest. Now the government is
25
Rectifying the above error by transferring RBI’s holding to itself. Post this, SBI will have a further
Headroom to dilute the GOI’s stake from fr om 59.7% to 51.0%, which will further improve its CAR
And Tier I ratio.
26
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.
27
The origin of the state bank of o f India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta on 2june 1806.Three years later the bank received its charter and was re-designed as the Bank of Bengal (2January1809).A unique Institution, it was the first joint –stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15April1840) and the Bank of Madras (1July1843) 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
28
commerce and were not imposed from outside in an arbitrary manner to modernize India economy .their evolution was ,however ,shaped by ideas culled from similar development 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 frame work.
Group Photograph of Central Board (1921) Business
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
29
the rest owned by the provincial govt. the members of board of directors, which managed the affairs to each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were govt. nominees, invariably civil servants, one of whom was elected as the president of the board.
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. 1lakh and the period of Indian banking system in to the exciting field of national development.
30
Andhra bank Allahabad bank Punjab national bank Dena bank Vijaya bank
31
HDFC bank ICICI bank AXIS bank Kotak Mahindra bank Centurion bank of Punjab
Standard chartered HSBC bank ABN AMRO bank American express
32
The growth of SBI in the coming years is likely to be fueled by the following factor:
Continued effort to increase low cash deposit would ensure improvement in NIMs & hence earning.
Growing retail & SMEs thrust would lead to higher growth.
Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion..
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
33
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.
• Management indicated a likely pension shortfall on account of AS -15 to be close to
Rs50bn.
• Slow down in domestic economy would pose a concern over credit off -take thereby
34
Deposit
Loans
Cards
Different credit cards
Saving account
Home loans
Consumer cards
SBI international cards
Life plus senior
Loan against
citizens saving
property
Credit cards
SBI gold cards
Travel cards
SBI gold master
account Fixed deposit
Personal loans
cards Security deposit
Car loans
Debit cards
Your city your cards
Recurring
Loan against
Commercial card
Your city your cards
deposit
security
Tax-saver fixed
Two
Corporate cards
Partnership card
deposit
Wheeler
35
Salary account
Preapproved
Prepaid card
Loan Advantages
Retail assets
Purchase card
Farmer finance
Distribution card
People’s savings
Business
Business cards
accounts
installment loans
freedom
Flexi cash
SBI employee cards
Woman saving account Rural saving account
SBI advantages cards
merchant
36
37
RESEARCH METHODOLOGY
Research is a systematic gathering; recording and analysis of data collected by various parameters related to give project and accordingly prepared report base on which company can take correct decision.
The source including primary data and secondary data.
Primary data consist of original information gather for the purpose. Primary data co llected through questionnaire.
Web site & company broacher.
38
The primary data was collected through survey. For the survey personal interview technique was adopted. Survey was undertaken to find out t he information needed for the study.
Sampling was done in order to cover the major car showrooms of Nagpur city such as Maruti (Kamptee road), Toyota (Kamptee road), Chevrolet (Kamptee road), Mahindra Kamptee road), Skoda (Amravati road), Hundai (Amravati road), Tata (V.C.A. stadium old), Honda (Khamla road), any many more to Explore the potential market.
: The research instrument use for collecting a primary data was questionnaires Prepared.
First and foremost objective is to find out the reasons for using of advance product form STATE bank of India.
To find out the services that other bank given to their customer.
To generates the leads through the survey.
To sort out the prospective leads from the data I have collected through the survey.
39
To build the relationship with the customers and to follow of them, make sure that they are satisfied with the product.
To maintain good relationship with the corporate employees.
To get more references from the customer and generate new leads by following a chain process.
To place SBI Advance Product ahead of the competitors.
To find out the customer awareness on booming Advance Product market and to find out the using patterns of the people.
To make the customer aware of the benefit of the Product convince in to go for SBI Advance Product.
40
State bank of India is the only bank which is providing the widest rang of products i.e. various type of loan schemes such as margin money scheme, advance EMI’S schemes and deposit payment schemes etc. as compared to other financial institute.
State bank of India is offering the lowest interest rates in comparison to the banks providing CAR Loans.
With the appointment sales manager it has managed to approach the customer directly at their showroom and hence providing a bette r services to their customer which, only a few other institutions have managed to do.
Car loan are the best option you can go for to finance a new finance a new Car. State bank of India offers you the most convenient and practical Car loan plans to suit your needs. With so many attractive features in every type of Car loans we offer.
State bank of India Car loan insure that you get the best deal, in terms of interest rate and other facilities also, in the most convenient way. W ith our varied offering Car loan and Home finance, State bank of India give an opportunity to select the perfect Car loan as per our need.
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 vehicles offer you:
41
Lowest interest rates
Longer repayment period of upto 84 months.
No hidden costs or administrative charges.
Finance for one-time road tax, registration fee, insurance premium and accessories
No advance EMIs. (Some Banks/companies ask you to pay one or more EMIs at the time of disbursement of loan, thereby effectively reducing your loan amount.)
Complete transparency: We levy interest on daily reducing balance method. When you pay one installment, the interest is automatically calculated on the reduced balance thereafter. When you pay interest on an 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 year. You continue to pay interest even on the amounts you repay during the year.
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 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! Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
42
43
1. PREAMBLE
Scope: l(a)
FAIR LENDING PRACTICES CODE (FLPC for short) is a voluntary code adopted by our Bank, which aims to achieve synchronization of best practices while dealing with Customers in India. It aims to provide valuable inputs to Customers and facilitates effective interaction of customers with the Bank. Extent:
l(b) FLPC would be applicable in the Bank from the date it is placed in the Bank's web site or is otherwise publicised through the media. FLPC contains 8 important declarations from us, the spirit of which pervades the entire FLPC provisions.
2. Important declarations: The Bank declares and undertakes
To provide in a professional manner, efficient, courteous, diligent and speedy services in the matter of retail l ending.
Not to discriminate on the basis of religion, caste, sex, descent or any of them.
To be fair and honest in advertisement and marketing of Loan Products.
To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions. If sought, to provide such assistance or advice to customers in contracting loans. To attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal cells within the organization.
44
To comply with all the regulatory requirements in good faith. To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice and not act only on representations from banks.
3. FAIR PRACTICES: 3.1.
Product Information:
(a) A prospective customer would be given all the necessary information adequately explaining the range of loan products available with the Bank to suit his / her needs. (b) On exercise of choice, the customer would be gi ven the relevant information about the loan product of choice. (c) The Customer would be explained the processes involved till sanction and disbursement of loan and would be i nformed of timeframe within which all the processes will be completed ordinarily at our bank. (d) The Customer would be informed of the names and phone numbers of branches and the persons whom he can contact for the purpose of loan to suit his needs. (e) The Customer would be informed the procedure involved in servicing and closure of the loan taken.
3.2. Interest Rates
3.2.1. Interest Rates for different loan products would be made available through and in anyone or all of the following media, namely: (a) In the Bank's Web site (b) Over phone, if Tele Banking services are provided (c) Through prominent display in the branches and at other delivery points
45
(d) Through other media from time to time
3.2.2 Customers would be entitled to receive periodic updates on the interest rates applicable to their accounts.
3.2.3 On demand, Customers can have full details of method of application of interest
3.3 Revision in Interest Rates:
(a) The Bank would notify immediately or as soon as possible any revision in the existing interest rates and ranked them available to the customers in the medi a listed in Para 3.2.1. (b) Interest Rate revisions to the existing customers would be intimated within 7 working days from the date of change through notifications in the Bank’s Website / media/ notice board at branches.
3.4. Default Interest/Penal Interest:
(a) The Bank would notify clearly about the default interest/penal interest rates to the prospective customers.
3.5. Charges:
(a) The Bank would notify details of all charges payable by the customers in relation to their loan account. (b) The Bank would make available for the benefit of prospective customers all the details relating to charges generally in respect of their retail products in the media specified in Para 3.2.1. (c) Any revision in charges would be notified in advance and would also be made available in the media as listed i n Para 3.2.1.
46
3.6. Terms and Conditions for Lending:
(a) The Bank would ordinarily give an acknowledgement of receipt of loan request and if demanded by the customer, a copy of th e application form duly acknowledged would also be given, as soon as the customer chooses to buy a product of or service of his choice. (b) Immediately after the decision to sanction the loan, the Bank would show draft of the documents that the customer is required to execute and would explain, if demanded by the customer, the relevant terms and conditions for sanction and disbursement of loan. (c) Loan Application forms, Draft documents or such other papers to be signed by a customer shall comprehensively contain all the terms and conditions relating to the product or service of his choice. (d) Reasons for rejection of loan applications would be conveyed to all barrowers irrespective of the size of the l oan. (e) Before disbursement of loan and on immediate execution of the loan documents, the Bank shall deliver a copy of the documents to the customers.
3.7. Accounting Practices:
(a) The Bank would provide regular statement of accounts, unless not found necessary by the customers. (b) The Bank would notify relevant due dates for appli cation of agreed interest, penal interest, default interest, and charges if they are not mentioned in the Loan applications, documents or correspondence.
47
(c) The Bank would notify in advance any change in accounting practices which would affect the customer before i mplementation.
3.8. Information Secrecy
(a) All personal information of the customer would be confidential and would not be disclosed to any third party unless agreed to by customer. The term 'Third party' excludes all Law enforcement agencies, Credit Information Bureaux, Reserve Bank of India, other banks/ financial and lending institutions. (b) Subject to above Para, customer information would be revealed only under the following circumstances;
If our Bank is compelled by law.
If it is in the Public Interest to reveal the information.
If the interest of the Bank require disclosure.
3.9. Financial Distress:
a) The Bank would sympathetically reckon cases of customer's financial distress. b) Customers would be encouraged to inform about their financial distress as soon as possible. c) The Bank would adequately train the operational staff to give patient hearing to the Customers in financial distress and would try to render such help as may b e
48
possible in their view.
3.10. Grievance Redressal
a) The Bank would have in place a Grievance Redressal Cell/ Department/ Centre. b) The Bank would make available all details, namely;
Where a complaint can be made
How a complaint should be made
When to expect a reply
Whom to approach for redressal of grievance etc., to the customers individually on demand and through the media li sted in Para 3.2.1.
c) Response to a complaint whether positive or negative or requiring more time for redressal would generally be given within a maximum period of four weeks from the date of receipt of complaint, unless the nature of complaint is such that requires verification of voluminous facts and figures.
49
50
51
16 14 12
4.87
4.4
4.44
4.33
10
tire-2
8
tire-1 6 4
8.01
9.38
9.14
8.53
2007-2008
2008-2009
2 0 2006-2007
2008-2009
Highlights FOR THE YEAR Total Income (Rs.
2007-2008
2008-2009
% change
57645
76497
32.67
44538
58564
31.49
6729
9.121
35.56
126.62
143.77
13.54
crores) Total Expenditure (Rs. crores) Net Profit (Rs. crores) Earnings per Share
52
(Rs.) (Basic)
1.01
1.04
2.97
Return on Equity (%)
17.82
15.73
(-) 11.73
Profit per Employee
372.57
473.77
27.16
Return on Average Assets (%)
(Rs. thousands)
53
March
March
% change
AT THE END OF
2008
2009
Paid-up capital
49,033
57,948
18.18
5,73,404
7,42,073
38.08
4,16,768
5,42,503
30.17
10,186
11,448
12.39
84
92
9.52
12.64
14.25
12.74
1.78
1.76
(-) 1.12
and reserve & surplus (Rs. Crores) Deposit (Rs. Crores) Advance (Rs. Crores) Number of domestic branches Number of foreign branches/offices Capital adequacy ratio (%) Net npa (%)
54
60000
55600
50000
40000
45800
35700 2006-2007
30000
2007-2008 2008-2009
20000
10000
0 Series 1
55
56
Series 1 500 450 400 350 300
Series 1
250 200 150 100 50 0 2006-2007
2007-2008
2008-2009
57
Series 1 1.2 1 0.8 Series 1
0.6 0.4 0.2 0 2006-2007
2007-2008
2008-2009
58
59
Series 1 1.8 1.78 1.76
1.75 1.7 1.65
Series 1
1.6 1.57 1.55 1.5 1.45 2006-2007
2007-2008
2008-2009
60
800000
742073
700000 600000 500000 400000
542503
537404 435521
416758 deposits
337336
advances
300000 200000 100000 0 2006-2007
2007-2008
2008-2009
During the year, India continued to remain the second fastest growing economy in the world, because of large domestic demand, especially from rural India, Govt. investments, a stable financial services sector, Fall in inflation and prompt coordinated policy action on multiple fronts. This is despite the fact that the scenario of global economy
61
during the year gone by was one of the most challenging. Its effects are not going to be completely wiped out even in the current year.
Its impact on India, however notwithstanding today’s globalised world, has not been very
severe, though it did somewhat affect industrial production, GDP growth and exports. On the macro-economic front, we believe that the worst is over. The Indian economy is showing signs of revival with growth reviving across sectors like cement, steel, auto, telecom, banking and FMCG. Further, demand from the rural sector which was the mainstay of the economy last year is expected to continue to propel growth in the current year. With a new, stable Government in place, our expectation for the GDP growth in 2009-10 is in excess of 7%. Even in this slowdown, both global and domestic, your Bank has turned in a brilliant performance with a splendid growth of Rs. 3,30,404 crores in total business, impressive rise in profits and containment of NPAs. At the same time, your Bank continued to be on the growth trajectory during FY-09 in respect of branch expansion with as many as 807 new branches being opened, a majority of which (481) were in rural And semi-urban areas. The Bank also increased its ATM network by An impressive 44% to 8581 by the end of FY-09. Another important milestone achieved by your Bank during the year was the extension Of coverage under the Core Banking Platform to cover all its 11448 Branches. This is one of the largest core banking networks in the world and growing, and is no small achievement. Another significant event during the year was acquisition of State Bank of Saurashtra, a wholly owned Associate of your Bank, by your Bank. You will be happy to note that your Bank showed an impressive growth of 35.55% in Net Profit from Rs.6, 729 crores in FY-08 to Rs. 9,121 crores in FY-09. Operating Profits too posted a smart growth of 36.68% to Rs. 17,915 crores in FY-09 on the back of a healthy increase of 22.63% in Net Interest income to Rs.20, 873 crores in FY-09, driven by growth in advances and increase in yields as also an increase of 45.96% to Rs.12,691 crores in o ther income.
Notwithstanding the economic slowdown evidenced in the FY-09, your Bank r egistered an impressive increase in interest income which rose by 30.31% as also a significant increase in core fee income which showed a growth of 28.7%. Even though operating expenses rose by 24.11%, attributable primarily to increase in staff costs on account of additional provisions for pension and wage revision and recruitment of additional staff during the ye ar; cost to income
62
ratio was brought down significantly (2.41%) from 49.03% in FY-08 to 46.62% in FY-09. Despite pressure on interest spreads and intense competition, your Bank could still record a Net Interest margin (NIM) of 2.93% in FY-09. During the year 2008-09, your Bank saw excellent growth in all businesses/market segments in which it operates. A significant feature during the year was your Bank’s high growth in both Advances and Deposits which excee ded the industry average,
leading to a significant increase in its market share.
Deposits of your Bank grew by 38.08% in 2008-09 against Other Scheduled Commercial Banks (OSCB) growth of 16.55%, leading to a spurt in its market share in deposits by 2.31% to 17.72% by March 2009. With continued focus on low cost CASA deposits which registered a growth of 23% during the year, your Bank’s market share
in demand deposits also rose sharply by 3.67% to 17.53%. As a part of strategy, your Bank reduced its reliance on bulk deposits as a percentage of total deposits to 10.81% from 14.13% in FY-08. Similarly, the Bank’s advances portfolio witnessed a robust growth (30.17%) of Rs.1,25,735 crores. This growth of 30.17% in advances as against OSCB growth of 16.13% pushed up your Bank’s market share in advances by 0.83 % to 16.03% by the year end. The
growth in advances was well rounded with every Segment (Large advances – 47%, Mid Corporate advances – 23%, SME advances – 20%, Retail advances – 18%, Agri. advances – 19%, International advances – 54%), contributing to the overall growth in advances. Retail lending continued to occupy centre stage with a growth in Education Loans (50%), Auto Loans (36%) and Housing Loans (21%) during the year. This also helped improve market share from 17.48% to 19.74% in respect of Home Loans and from 10% to 12% in respect of Auto Loans for new vehicles. To offer timely help to SMEs, which were reeling under the impact of slow down in the economy particularly exports, your Bank launched two new schemes – SME CARE and SME HELP – offering the affected SMEs, finance on liberalized terms at a concessional rate of interest of 8%.
In advances to the Agriculture segment, your Bank continued to be above the 18% benchmark stipulated by RBI for the second time consecutively. It also surpassed the targets set by t he Govt. of India in respect of credit flow by way of fresh disbursements as also the number of new farmers financed. In pursuit of its desire to be the “Banker to every Indian”, your Bank has gone in for aggressive expansion in the number of Customer Service Points/BCs/BFs to 17,979which now cater to 52,782 previously un-banked villages, with plans to cover additional 50,000 unbanked villages in the current year. Your Bank is firm in its resolve to achieve total financial inclusion
63
through the use of the latest and best technology. As at the end of 2008-09, as many as 23.61 lakh Smart Cards, which work on biometric validation of the customers, had been issued. In the international arena too, your Bank, despite the global meltdown, achieved a significant growth of 17.7% (in USD terms) in credit to USD 17.07 billion and continued to focus on its core strategy of Capturing India related business in high potential countries. While two of the Bank’s subsidiaries in Mauritius were merged during the Year to create a new entity called SBI (Mauritius) Ltd., your Bank along with its subsidiaries and Joint Ventures abroad opened 9 new Offices, including full-fledged retail operations in Singapore, taking the total network of overseas offices to 92 spread over 32 countries. Amidst turmoil in global markets, your Bank’s foreign offices maintained
a comfortable liquidity position and could raise US $ 686 million under Bank’s Medium Term Notes (MTNs) programme and bilateral loans.
Another noteworthy feature of your Bank’s performance during the year 2008-09 has been in
the area of controlling NPAs. While Gross NPAs declined marginally to 2.84% in FY-09 from 3.04% in FY-08, Net NPA level too was practically stable at 1.76% as against 1.78% in FY-08. Similarly, your Bank’s Capital Adequacy Ratio (CAR) in terms
of prescriptions of BASEL-II increased to 14.25% in FY-09. This healthy ratio not only meets the requirements of the regulators worldwide but is also comparable to the best banks globally. You will be happy to know that the performance of the Associates of your Bank during FY-09 has also been noteworthy with an increase of 24.7% in net profit to Rs.2774 crores and 18.95% in total assets. The non-banking subsidiaries, too, put up a good show with consolidation of their position/ranking in their space in the financial services arena. Your Bank embarked on several new business initiatives during the last two years which have started bearing fruit? During the year
64
If you are looking for flexible scheme, quick processing of your loans, attractive interest rates at the click of a mouse, then your search ends here. SBI bank car loans is the most preferred financier for car loan in the country and offers you all the with unbelievable ease.
Our car loan interest charges differ according to the car model, the tenure of the loan, the customer and his location
Loan Tenure (in years)
Bank/product name Interest rate type
Action 1
2
3
4
5
6
7
Sponsored Results South Indian Bank
Fixed
14.25
14.25
14.25
14.25
14.25
NA
NA
Saraswat Bank
Fixed
10.0
10.0
10.0
10.5
10.5
11.0
11.0
The Ratnakar Bank
Fixed
12.5
12.5
12.5
12.5
12.5
NA
NA
J&K Bank
Floating
11.0
11.0
11.0
11.0
11.0
11.5
11.5
Fixed
8.0
8.0
8.0
8.0
8.0
8.0
8.0
SBT- EZEE Car Loan Scheme
65
Karur Vysya Bank
Fixed
11.5
11.5
11.5
11.5
11.5
NA
NA
ABN Amro
Fixed
15.0
15.0
15.0
15.0
15.0
NA
NA
Fixed
11.5
11.5
11.5
11.5
11.5
NA
NA
Fixed
14.0
14.0
14.0
14.0
14.0
14.0
14.0
Floating
11.0
11.0
11.0
11.25
11.25
11.5
11.5
10.75
10.75
11.0
11.0
11.0
NA
Indian Overseas Bank HDFC Bank State Bank of Patiala Dena Bank Corporation Bank State Bank of Travancore Syndicate Bank Oriental Bank of Commerce United Bank of India Bank of Maharashtra Punjab National Bank Central Bank of India ICICI Bank Bank of Baroda Tamilnad Mercantile Bank Ltd Abhyuday Co-op
Floating 10.75 Fixed
10.5
10.5
10.5
11.0
11.0
11.25
11.25
Fixed
11.0
11.0
11.0
11.0
11.0
11.25
11.25
Floating
12.0
12.0
12.0
12.0
12.0
12.0
NA
Floating 10.25
10.25
10.25
10.75
10.75
10.75
10.75
10.0
10.0
10.0
10.0
10.0
NA
Floating 10.75
10.75
10.75
11.25
11.25
11.25
11.25
Fixed
10.5 11.0
10.5 11.0
10.5 11.0
10.5 11.0
10.5 11.0
10.5 11.0
10.5 11.0
Floating
10.0
10.0
10.0
11.0
11.0
11.0
11.0
Floating 14.25
14.25
14.25
14.25
14.25
14.25
14.25
9.75
9.75
10.25
10.25
10.25
10.25
11.75
11.75
12.25
12.25
NA
NA
11.0
11.0
11.0
11.0
NA
NA
Fixed
Floating
10.0
9.75
Floating 11.75 Fixed
11.0
66
Bank Ltd IDBI Bank
Floating
8.5
8.5
8.5
8.5
8.5
NA
NA
Fixed
14.0
14.0
14.0
14.0
14.0
NA
NA
Floating
13.5
13.5
13.5
13.5
13.5
13.5
13.5
State Bank of Indore Floating
11.5
11.5
11.5
11.5
11.5
11.75
11.75
Floating 10.25
10.25
10.25
10.5
10.5
10.75
10.75
Apna Sahakari Bank Ltd Dhanalakshmi Bank Ltd
State Bank of Hyderabad Bank of India
Floating
9.75
9.75
9.75
10.25
10.25
10.25
NA
Lakshmi Vilas Bank Floating
14.0
14.0
14.0
14.0
14.0
NA
NA
Floating
10.0
10.0
10.0
10.0
10.0
10.0
10.0
Catholic Syrian Bank
Fixed
13.75
13.75
13.75
13.75
13.75
NA
NA
Federal Bank
Fixed
10.5
10.5
10.5
11.0
11.0
NA
NA
11.75
11.75
11.75
11.75
11.75
NA
NA
Floating
10.5
10.5
10.5
10.75
10.75
11.0
11.0
Fixed
8.5
8.5
8.5
8.5
8.5
8.5
NA
Floating 11.25
11.25
11.25
11.25
11.25
11.5
11.5
UCO Bank
Floating
11.5
11.5
11.5
11.5
11.5
NA
NA
J&K Bank
Fixed
11.0
11.0
11.0
11.5
11.5
12.0
12.0
Andhra Bank
Floating 11.25
11.25
11.25
11.5
11.5
NA
NA
Vijaya Bank
Floating 11.25
11.25
11.25
11.25
11.25
11.25
NA
10.0
10.0
10.5
10.5
NA
NA
State Bank of Bikaner& Jaipur
Punjab & Sind Bank Floating State Bank of Mysore Canara Bank SBI
Union Bank of India
Fixed
10.0
67
The Kapol Co-op
Fixed
12.5
12.5
12.5
12.5
12.5
NA
NA
Indian Bank
Fixed
11.0
11.0
11.0
11.25
11.25
NA
NA
Allahabad Bank
Floating
10.5
10.5
10.5
10.5
10.5
10.5
10.5
Axis Bank
Fixed
9.5 15.5
9.5 15.5
9.5 15.5
9.5 15.5
9.5 15.5
9.5 15.5
9.5 15.5
Kotak Bank
Floating
12.5
12.5
12.5
12.5
12.5
NA
NA
Bank Ltd
Full Results South Indian Bank
Fixed
14.25
14.25
14.25
14.25
14.25
NA
NA
Saraswat Bank
Fixed
10.0
10.0
10.0
10.5
10.5
11.0
11.0
The Ratnakar Bank
Fixed
12.5
12.5
12.5
12.5
12.5
NA
NA
Karur Vysya Bank
Fixed
11.5
11.5
11.5
11.5
11.5
NA
NA
10.75
10.75
11.0
11.0
11.0
NA
Dena Bank State Bank of Travancore United Bank of India Oriental Bank of Commerce Bank of Maharashtra Punjab National Bank Central Bank of India Bank of Baroda
Floating 10.75 Fixed
11.0
11.0
11.0
11.0
11.0
11.25
11.25
Fixed
10.0
10.0
10.0
10.0
10.0
10.0
NA
Floating 10.25
10.25
10.25
10.75
10.75
10.75
10.75
Floating 10.75
10.75
10.75
11.25
11.25
11.25
11.25
Fixed
10.5 11.0
10.5 11.0
10.5 11.0
10.5 11.0
10.5 11.0
10.5 11.0
10.5 11.0
Floating
10.0
10.0
10.0
11.0
11.0
11.0
11.0
Floating
9.75
9.75
9.75
10.25
10.25
10.25
10.25
68
Tamilnad Mercantile Bank Ltd Abhyuday Co-op
Floating 11.75
11.75
11.75
12.25
12.25
NA
NA
Fixed
11.0
11.0
11.0
11.0
11.0
NA
NA
Fixed
14.0
14.0
14.0
14.0
14.0
NA
NA
Floating
8.5
8.5
8.5
8.5
8.5
NA
NA
Floating
13.5
13.5
13.5
13.5
13.5
13.5
13.5
State Bank of Indore Floating
11.5
11.5
11.5
11.5
11.5
11.75
11.75
Floating 10.25
10.25
10.25
10.5
10.5
10.75
10.75
14.0
14.0
14.0
14.0
14.0
NA
NA
10.0
10.0
10.0
10.0
10.0
10.0
10.0
11.75
11.75
11.75
11.75
11.75
NA
NA
Floating 11.25
11.25
11.25
11.25
11.25
11.5
11.5
Bank Ltd Apna Sahakari Bank Ltd IDBI Bank Dhanalakshmi Bank Ltd
State Bank of Hyderabad
Lakshmi Vilas Bank Floating State Bank of Bikaner& Jaipur
Floating
Punjab & Sind Bank Floating SBI Canara Bank
Fixed
8.5
8.5
8.5
8.5
8.5
8.5
NA
City Union Bank
Fixed
13.5
13.5
13.5
13.5
13.5
NA
NA
J&K Bank
Fixed
11.0
11.0
11.0
11.5
11.5
12.0
12.0
Floating 11.25
11.25
11.25
11.5
11.5
NA
NA
Andhra Bank The Kapol Co-op
Fixed
12.5
12.5
12.5
12.5
12.5
NA
NA
Union Bank of India
Fixed
10.0
10.0
10.0
10.5
10.5
NA
NA
Allahabad Bank
Floating
10.5
10.5
10.5
10.5
10.5
10.5
10.5
Bank Ltd
69
Axis Bank
Fixed
9.5 15.5
9.5 15.5
9.5 15.5
9.5 15.5
9.5 15.5
9.5 15.5
9.5 15.5
Kotak Bank
Floating
12.5
12.5
12.5
12.5
12.5
NA
NA
J&K Bank
Floating
11.0
11.0
11.0
11.0
11.0
11.5
11.5
Fixed
8.0
8.0
8.0
8.0
8.0
8.0
8.0
Fixed
11.25
11.25
11.25
12.25
12.25
NA
NA
Fixed
11.5
11.5
11.5
11.5
11.5
NA
NA
Fixed
15.0
15.0
15.0
15.0
15.0
NA
NA
Floating
11.0
11.0
11.0
11.25
11.25
11.5
11.5
HDFC Bank
Fixed
14.0
14.0
14.0
14.0
14.0
14.0
14.0
Corporation Bank
Fixed
10.5
10.5
10.5
11.0
11.0
11.25
11.25
Syndicate Bank
Floating
12.0
12.0
12.0
12.0
12.0
12.0
NA
Floating 14.25
14.25
14.25
14.25
14.25
14.25
14.25
SBT- EZEE Car Loan Scheme Karnataka Bank Indian Overseas Bank ABN Amro State Bank of Patiala
ICICI Bank Bank of India
Floating
9.75
9.75
9.75
10.25
10.25
10.25
NA
Catholic Syrian Bank
Fixed
13.75
13.75
13.75
13.75
13.75
NA
NA
Federal Bank
Fixed
10.5
10.5
10.5
11.0
11.0
NA
NA
Floating
10.5
10.5
10.5
10.75
10.75
11.0
11.0
Floating
11.5
11.5
11.5
11.5
11.5
NA
NA
Floating 11.25
11.25
11.25
11.25
11.25
11.25
NA
11.0
11.0
11.25
11.25
NA
NA
State Bank of Mysore UCO Bank Vijaya Bank Indian Bank
Fixed
11.0
70
71
*2 YEARS INCOME STATEMENT
* ADDRESS PROOF
* BANK STATEMENT
* PHOTOGRAPH
* SALARY CERTIFICATE (FROM 16 IF EMPLOYED)
*2 years computation of income along with IT returns.
* audited balance sheet and profit & loss account. * Partnership deed * Partnerships authority later * address proof *bank statement for 6 month
72
*
Loan Type
New Car
Used Car
Ex-Showroom/On
Term Loan
Term Loan
Road
On Road
Ex-Showroom
Loan Amount
Min. - Rs 50000
Min. - Rs 25000
Max. - Rs 85
Max. - Rs 60
Min. - 12 Yrs.
Min. - 12 Yrs.
11.75 %
15.25 %
Time to Process Loan
4 days
7 days
Preferred
Chevrolet, FIAT, Ford,
Chevrolet, FIAT, Ford,
Manufacturers
GENERAL MOTORS INDIA,
GENERAL MOTORS INDIA,
HINDUSTAN MOTORS,
HINDUSTAN MOTORS,
Honda, Hyundai, Mahindra,
Honda, Hyundai, Mahindra,
Marti, Mercedes-Benz,
Marti, Mercedes-Benz,
Mitsubishi, Nissan, Riva,
Mitsubishi, Nissan, Riva,
SAN Engineering, Skoda,
SAN Engineering, Skoda,
Tata Motors, Toyota
Tata Motors, Toyota
Tenure Interest Rate
*2 years IT return (audited balance sheet & p& L account) * Board resolution * Memorandum & articles of association
73
Stamp Duty
New Car
Used Car
Pre-Payment
As Per Actual
As Per Actual
2%
2%
As Per Actual
As Per Actual
Charges Legal, Repossession and Incidental Charges
74
Income
Rs 12000
Age
Min.: 21 Yrs. Max.: 58 Yrs.
Current Employment Years
1 Yrs.
Total Employment Years
2 Yrs.
: ID Proof
Yes
Residence Proof
Yes
Income Proof
Yes
Telephone
Yes
Photograph
Yes
Bank Statement
Yes
Signature Proof
Yes
75
76
Income
Rs 10000
Age
Min.: 21 Yrs. Max.: 65 Yrs.
Total Employment Years
3 Yrs.
:
ID Proof
Yes
Residence Proof
Yes
Income Proof
Yes
Telephone
Yes
Photograph
Yes
Bank Statement
Yes
Signature Proof
Yes
The first financier for car loans in the country 77
Network of more than 1800 channel partner in over 1000 locations.
Tie-up with all leading automobile manufacturers to ensured the best deals.
Flexible schemes and quick processing.
Hassle-free application process.
PARTICULARS SALARIED INDIVIDUAL
SELF
PARTENERSHIP PRIVATE &
EMPLOYED
FIRM
PUBLIC LTD
INDIVIDUAL
CO.
The applicant
Any proprietor,
Limited
should be at
partner,
companies
least 21 years
professional or
should have
old at time of
director above
been in
application, and
21 years of age
existence for at
AGE
bellow 60 years
but bellow 65 at
CRITERIA
of age of time
the time of
maturity of the
loans maturity.
-
least 2 years
loan
INCOME CRITERIA
Gross annual
Gross annual
Firm should have a
Minimum PAT (
salary above
income above
minimum PAT
profit after tax)
Rs.100,000 /
Rs.60,000
(profit after tax)
of Rs.60,000
annual
income of Rs.60,000
78
First, shop around for all the various finance schemes on Auto Loans available in the market • by applying on deal4loans.com. You can then decide from margin money schemes,
advance EMI's schemes and deposit payment schemes. Usually margin money schemes offer the best terms, but at the end of the day, effective interest rate of the loan is what essentially matters. This method provides a common podium for assessment of different schemes by discounting on the basis of cash flows.
The amount of the loan depends upon: 1. The cost of the vehicle. 2. The type (standard/premium). 3. The percentage financing offered. If you are buying a new car, you can get up to 90% financing but some banks have a limit beyond which they do not offer loans. Also different banks have different te rms for different models (standard/premium, new/old) The percentage of finance the banks give on car s is also determined on the basis of second-hand market value of that particular car. This is for cases, if default by any chance, the banks can get a higher resale value for the car. This makes the banks comfy enough to give higher percentage finance.
79
? For income proof, most banks look at your IT returns for the last two years and also at the nature of income. However some banks do not consider speculative income - from the stock market, rental or agricultural income. Some banks discount such income by up to 50% in their workings.
? For income proof, most banks look at your IT returns for the last two years and also at the nature of income. However some banks do not consider speculative income - from the stock market, rental or agricultural income. Some banks discount such income by up to 50% in their workings
There is no such compulsion for you to have an acc ount with the bank. Normally banks have no problem in giving auto loans to people who do not have an account with them. However there may be certain privileges you may enjoy with having an account of the same bank you take a loan from
Well if you have a good repayment record for an earlier transaction, YES! You are also most likely to get a lower lending rate and your process is sure to move faster. However, do check out some other offers from other banks as well, before taking a final decision.• And this is where deal4loans.com can assist in getting you multiple quotes from various banks really fast.
80
To banks, your credit profile is the most important factor they will consider before funding you. Your credit profile tells banks if one is able to and intend to pay back the loan.
The components of credit profile are age, profession/occupation, income/financials, previous credit history etc
If your credit profile does not match the banks requirement you can reinforce it by bringing in a co-applicant/guarantor who would be able to match the requirement
Yes you can, under the No Income Proof scheme offered by some banks.
Yes, you can. You can increase the amount of loan sanctioned by clubbing your spouse's income. The spouse then becomes the co-applicant
Yes, you need a guarantor. The guarantor could be your father, mother, son, daughter, husband, brother, sister, son's wife etc et cetera. However for consideration of these relatives as guarantors for the loan, they should comply with the age and other such norms of the company
A co-applicant has as much responsibility as the primary applicant and is equally liable to the banks from which the loan is taken. The guarantor however, promises to pay the bank in case the applicant(s) default on the payment. Both the co-applicant and the guarantor are liable for re-payment and the banks have the right to collect from either or them.
Not really. There are other charges like processing fees, advance EMI's, other up-front
81
payments (stamp charges), registration charges, insurance which need to be factored in before comparing the various deals.
In an annual reducing basis, the outstanding principal gets adjusted once a y ear while in the monthly reducing balance; the principal gets adjusted on a monthly basis. Therefore, more o f your principal gets repaid in monthly reducing basis than in annual basis. However, some banks, calculate EMI's on a daily or a quarterly basis too.
A loan taken on floating rate of interest is a better option when the interest rates are falling, but when the interest rates are rising, opt for a fixed rate loan. Also if you go for a fixed rate loan, you will know in advance what your EMI's will be like and this will help you in your financial budgeting. If you choose a floating rate, you may not be able to budget properly. So do the math and choose wisely.
Suppose you have taken a loan of Rs.10 lac at 5% interest. You repay Rs.50,000 in the first installment. If the 5% interest continues to be applicable on Rs.10 lac after your first repayment, you are paying a Flat Interest Rate. But, if 5% interest is applicable now on Rs.9.50 lac, you are paying a Reduced Balance Interest Rate
Yes you can pay-off your car loan before the tenure is up by pre-paying your loan amount. But there may be certain rules regarding the pre-payment that your bank may have. Also you may have to pay a small penalty, normally, a percentage of the loan amount that remains outstanding. Some banks however do not penalize you if you decide to pre-pay. Take this aspect into consideration when you choose a bank to take loans from because if later on, you can get a loan at a lower rate of interest, this penalty could compensate whatever you could save through the interest rate differential.• Apply for a Car loan now
82
Yes you can change the tenure and amount of the loan. But this would imply that the interest rate and the amount of installment will change accordingly.
Yes, in some cases you can. You need to inform your bank in advance. This should only be for a few days and you will have to pay delayed payment charges Upgraded to a new one. The dealer will purchase your car at a price depending on the model, year and the condition of the car. The value of your old car is then adjusted against the purchase price of the new car. You could also get the balance amount financed.
Zero Interest Scheme is just that, Zero Interest Scheme. In this scheme you are not charged any interest and you only pay back the principal amount. But under such scheme, the amount financed is low and the tenure is short. However there are hidden costs involved under this scheme as well.
After the last payment is made, get the lien of the bank on your car cancelled. The bank will issue Form 35 with a covering letter (NOC) to the RTO for canceling their name from the R/C book. A similar NOC will also be issued to the insurance company requesting for the deletion of their name from the policy .
Most financiers do not cover Insurance and registration. The ex-showroom price is considered which does not cover insurance and registration charges.
83
In the event of an accident, the first step is to inform the insurance company. The company then sends a surveyor to assess the extent of damages to the car. Your claim is then processed and paid directly to the banks, unless you have taken an NOC from the banks, in which case the payment will be made by the insurance company in your favor. The bank normally gives you an NOC if you are regular in your payments. In case of a complete loss, the bank would receive the payment directly from the insurance company.
Most banks have compiled a list of defaulters. It has compiled defaulters from its own bank and also from other available sources from other banks. Details of all clients are run through this list to check if the same client had applied for a loan. If the client is the same, the file is rejected. Read more about car loan!
84
w.e.f. 29.06.2009 (SBAR 11.75%)
SL. No
PARAMETER SCHEME
DETAILS
1
Applicable to
All New Car Loans to Public
2
Scheme Period
From July 1, 2009 to September 30, 2009 Interest Rate will be reset on th e anniversary
4
Reset Period
date of the loan to the applicable card rate contracted as on the date of sanction under the
85
respective new car loan schemes i.e. Spreads below/above SBAR as applicable on the date of Sanction as per the agreement. 5
Processing fee
Fully waived up to 30th September 2009
Tenure
Rate of Interest
Up to 3 years (for loans Rs. 7.5 lac & above) 0.75% below SBAR i.e. 11.00% p.a. Up to 3 years (for loans below Rs. 7.5 lac)
0.50% below SBAR i.e. 11.25% p.a.
Above 3 yrs up to 5 yrs (for all loans)
0.50% below SBAR i.e. 11.25% p.a.
Tenure
Rate of Interest
Up to 3 years (for loans Rs. 7.5 lac & above) 0.25% below SBAR i.e. 11.50% p.a. Up to 3 years (for loans below Rs. 7.5 lac)
At SBAR i.e. 11.75% p.a.
Above 3 yrs up to 5 yrs (for all loans)
At SBAR i.e. 11.75% p.a.
Above 5 yrs up to 7 yrs (for all loans)
0.25% above SBAR i.e. 12.00% p.a.
86
NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE.
Tenure
Rate of Interest
Up to 3 years
3.00% above SBAR i.e. 14.75% p.a.
Above 3 yrs up to 7 yrs
3.25% above SBAR i.e. 15.00% p.a.
87
88
89
From this project it is found that SBI advance product having the 1st place in the market At Bhubaneswar, there is a great opportunity to compete with ICICI Bank & to retain its Customer by fulfilling the requirement of customer in SBI advance product. It has been observed that approximately 85% correspondents are using advance Product of SBI and 15% are not using any type of advance product of SBI in Bhubaneswar. All of SBI customers are satisfied with the services provided by the bank.
90
Many of these customers satisfied with the low interest rate and longer repayment Period of the advance product. Most of the customers at Bhubaneswar prefer to take loan from SBI. Approximately 43% of advance product users said that the service of SBI in advance 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 advance product. Most customers are shifted from other bank’s advance product to SBI because of Hidden charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance product.
91
➢
LESS PAPER WORK
➢
ATTRACTIVE INTEREST RATES
➢
TRANSPARENCY
➢
SIMPLE & FAST PROCESSING
LONGER REPAYMENT PERIOD ➢
QUICK PROCESSING
92
93
94
From the analysis part it can be conclude that customers have a good respond towards SBI advance products in Bhubaneswar. SBI is in 1st 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 .
In present scenario SBI is the largest advance 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 advance product issuer, SBI should focus on-
Launch Innovative product Customized advance products
Better customer services
Fastest customer’s 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.
95
Customer awareness programmed is required so that more people should attract towards Advance product. if there is any kind of hidden charges than that must disclose to customer before Giving loan to them. 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. Advance product selling agents must not give any type of wrong information regarding Advance product.
96
for the better service new offers would be requiring. SBI customer care should more concern about the fastest settlement of customers 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 advance 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.
97
There is more time period for repayment of education loan. (Namrata Das)
Education loan should be providing to private college also which is not under AICTE or Any kind of University. (Pinky BAL)
SBI should take steps to solve customer problems immediately. (Gopinath Mahapatra)
Agents should be trained well educated & proper trained to convince the people about Different advance product. (P.Anish Nath)
Loan sanction date should be according to customer convenient. (Joytirmaya Behera) A customer awareness programme should be taking place in rural area.
98
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, and Being. 5th Ed.
New Jersey: Prentice Hall
Wilson A. (2003), Marketing Research: An Integrated Approach
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition
www.google.co.in www.sbi.com www.sbi.co.in
99
www.bnet.com
-_______________________________
Q. On which bank you depend for your regular transaction? a) SBI
100
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 are you aware of the advance products (Loan segments) 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? ______________________________________________________________________ __________
101
______________________________________________________________________ __________ ______________________________________________________________________ __________ _____________________________________________________.
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 advance 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
102
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 advance Product. ______________________________________________________________________ __________ ______________________________________________________________________ __________ ______________________________________________________________________ __________ ___________________________________________________________.
103
104
