THEORETICAL FRAME WOREK

MEANING OF LOAN The extension of money from one party to another with the agreement that money will be repaid .All loans are made at interest, meaning that borrowers pay a certain percentage of interest on principal amount to the lender as compensation for borrowing .A loan may be guaranteed by collateral meaning that lender either keeps an asset belonging to the borrower until the loan is repaid or has the right to seize such an asset in the event of default. DEFINATION OF HOME LOAN There are different types of loan present in the market & home loan is one of them.In layman language a homeloan a homeloan is simply taking money from a bank or a financial institution for buying a new house at a fixed interest rate & for a pecific period of time.Few year back this definition was enough to define the meaning of home loan but now as the competition has increased in the banking sector.The definition & meaning of homeloan has changed completely,now homeloan has boarder meaning & offer you loan for your even small needs regarding your home loan. To understand this concept better, let us have a look on the different types of home loan available in the market.

THE TYPES OF HOME LOAN PRODUCT OF SBI BANK ARE AS FOLLOWS :

Name of the home loan product 1.HBl Brief description THIS home loan is provide to by a flat / built a residential house on plot of land with a moratorium period SBI Realty provides an opportunity to the customer to purchase a plot of land for construction of house. The construction of house should commence within 2 years from the date of availment of SBI Realty Loan. Customers are also eligible to avail another Home Loan for construction of house on the plot financed under the SBI Realty with the benefit of running both the loans concurrently. An innovative and customer-friendly product enabling the customers to earn optimal yield on their savings by reducing interest burden on Home Loans, with no extra cost.

2.SBI REALTY

3.SBI MAXGAIN

The loan is sanctioned as an Overdraft with added flexibility to operate the Home Loan Account like SB or Current Account. Bank also provides Cheque Book/ATM-cum-Debit Card/Net Banking facility for the purpose. SBI YUVA Home Loan provides 20% higher loan amount than that of normal Home Loan eligibility to Salaried employees of Private Sector Companies/MNCs/Government Undertakings/PSUs & the Government employees. Eligibility Age between 21 years to 45 years.

SBI YUVA

NRI HOME LOAN

Minimum Net Monthly Income of applicants should be Rs. 30,000/- (expected rental income from the proposed property should not be included in the monthly income of the borrower). Non Resident Indians (NRIs) or Persons of Indian Origin(PIOs) The applicants should have a regular source of income. Minimum employment tenure in India/Abroad should not be less than 2 years.

SBI PAL

The SBI PAL provides sanction of Home Loan limits to the customers before finalization of the property which enables them to negotiate with the Builder/Seller confidently. The loan eligibility will be assessed on the basis of income details of the applicant. Non-refundable processing fee as applicable to the Home Loan will be collected at the time of sanction. Pre-approved loan arrangement letter (PLAL) will be valid for a period of 4 months. 'SBI Tribal Plus' is a Special Home Loan Scheme designed for Hill/Tribal areas (where mortgage of the property is not possible) for extending financial assistance to individuals. Loan is sanctioned for Purchase or construction of a new house / flat (without mortgage of land). Purchase of an existing (old) house / flat which is not more than 10 years old. Repair /Renovation/extension of an existing house or flat. Here PF is mortgage

SBI TRIBAL PLUS

GRAM NISWAS

Scheme covers all Rural and Semi-urban centres having population upto 50,000 as per 2001 census. Home Loans under Gram Niwas Scheme are sanctioned for purchase/ construction/repair and renovation of house and purchase of plot for construction of a house/shed etc. The Sahyog Niwas Scheme provides Home Loan to Self help groups, having good payment record of 2 years, for on lending to their members for: v Purchase or construction of a house exclusively or including the housing needs of activities carried by them (Dairy shed, tailoring shed/shop, grocery stores etc.) v Renovation or repair of an existing house / shed v Purchase of a plot for the construction of house v Extension of existing house / work space to existing house / shed.

SAHYOG NISWAS

FEATURES OF HOME LOANS PRODUCT

Eligibility:

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 source of income for servicing the loan repayment.

Loan Amount
Actual loan amount will be determined taking into consideration such factors as applicants income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc. To enhance loan eligibility you have option to add: 1) Income of your spouse/ your son/ daughter living with you, provided they have a steady income and his/ her salary account is maintained with SBI. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out. Regular income from all sources.

2)

3)

4)

Security:
Equtable mortgage of property

Margin/ LTV Ratio:

Loan Amount Upto Rs. 20 Lacs Above Rs. 20 Lacs. Margin (Min.) Maxim 10% 20% Maximum LTV Ratio (Max.) 90% 80%

FEES
The processing fee structure (including service tax) is as under : Loan Amount Processing Fee Upto Rs. 25 Lacs 0.25% of loan amount, minimum Rs. 1,000/ Above Rs. 25 Lacs and Rs. 6,500/ upto Rs. 75 Lacs Above Rs. 75 Lacs Rs. 10,000/ In case of Take Over of Home Loans, processing fee is Rs 1,000/- per account, irrespective of loan amount and it is valid upto 30.09.2013.

in case of Take Over of Home Loan with Top-Up loan , the Processing fee will be 0.25 % of the consolidated loan amount taken over subject to Minimum of Rs 1,000/- and Maximum Rs 10,000/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

DOCUMENTS REQUIRE FOR HOME LOAN:

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/ Drivinlicence/ 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 Deptt.

Additional documents required for Professionals/self- employed/ other IT assesses:

Acknowledged copies of three years I.T. returns/ Assessment Orders. Photocopies of challans evidencing payment of Advance Income Tax

BENEFITS OF HOME LOAN OF SBI BANK:

1) 2) 3) 4) Low rate of interest i.e. 9.95% Low processing fees No hidden cost/ administration charges No prepayament penalties

OBJECTIVE OF STUDY
1) TO increase the sourcing of homeloan portfolio by HLST & HLCs in Bengal circle 2) TO improve the methodology followed for sourcing of homeloan 3) TO know the comsumer feedback about sourcing of home loan

SCOPE OF STUDY
1) How to improve the home loan port folio 2) TO know the no of leads attain & sourcing done per month by HLST ,HLCs & BPR segment branches 3) How the homeloan product are marketing & sourcing

LIMITATION OF STUDY
1) WE cannot get the data of other bank /financial institution how they are marketing their home loan products 2) WE cannot get the data of other bank how their leads are generated & how they are sourcing their home loan product