A Comparative Study of Home Loan Finance Facilities in Shegaon

A Comparative Study of Home Loan Finance Facilities in Shegaon
CHAPTER 1
INTRODUCTION
What is a Home loan? Home Loan is a Secured Loan offered against the security of a house/property which is funded by the banks loan, the property could be a personal property or a commercial one. The Home Loan is a loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower is failed to pay back the loan, the banker can retrieve the lent money by selling the property. 1.1 DIMENSIONS OF HOUSING REQUIREMENT A) To meet the housing:The dream of every person is to own a house. 30 year ago there were very few people who used to construct house with their own money. There were people who constructed the house by taking the loan. The people are interested in constructed house and buying the flats, they are aided financing for constructing their dream home. Most of the people in India are from salary class, so that they are not able to spend lump-sum amount at a time. But they are ready to pay installment for the loan taken. Hence the loan, which is going to complete the dream home of the people, is introduced. B) Tax benefit:Interest paid on capital borrowed for the acquisition, Construction, repair, renewal or reconstruction of property is entitled to a deduction. That means applicants are allowed to deduct an amount equivalent to the total interest payable on the housing loan from applicant taxable income within the same financial year. This is now a substantial amount. It started off with the income tax department offering Rs 15,000 as the maximum amount eligible for deduction in the case of self-occupied property. This later got doubled to Rs 30,000.It did not stop there. After getting enhanced to Rs 75,000, It was then taken to a limit of Rs 1lakh. Presently, the limit stands elevated to Rs 1.5 lakh.
D.B.A.R., S.S.G.M.C.E., Shegaon
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Once get a 20% rebate on repayment of principal during a financial year. Once again, over the year, the principal repayment eligible for rebate has been enhanced from 10,000 to the current limit of Rs20, 000. Stamp duty, registration fee or other such expenses paid for the purpose of transfer of such house property to the assesses is also considered under this amount. C) Property appreciation:Most of the people in India are from salary class, s they are not able to spend lump-sum amount at a time. Maximum middle class taking loan not only purchase or construction of new house or flat but also they are taking loan for appreciation of property. Now various schemes provide loan for land purchase. Home loan scheme are one of the important source of finance for appreciation of property, regarding the condition of the flat/house as well its remaining life.
1.2 IMPLICATIONS OF HOUSING FINANCE A) Insurance of the property:Applicants responsibility to ensure that the title to the property is absolutely clear and marketable and free from any encumbrances. The Property being financed would have to be insured for an amount not less than the cost of the property and for a minimum period equivalent to the tenure of the loan and the policy. B) Loan amount:The loan amount sanctioned under each scheme near about 85% by nationalize bank, value of existing home. Which is not sufficient for customer .The loan amount is determined by assessing applicant repaying capacity with references to applicant income documents and other factor such as the profile of them employer, stability of applicant business, number of dependents ,credit history and the position of applicant assets and liabilities. C) Recovery Pattern:All these institutions apply only equated monthly installment (EMI) pattern for recover the loan Amount. Annual installment facility is also required for some customer.
D.B.A.R., S.S.G.M.C.E., Shegaon Page 2

D) Delayed Payment:In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. E) Unnecessary documentation:All these institution demanded large number of document for loan sanctioned and which are very difficult and time consuming activity. Some of this document is unnecessary. e.g. In the case of an old existing house, applicant will need to get a valuation certificate from approved values as well as a certificate from a government approved architect/structural engineer regarding the condition of the flat/house as well s its remaining life.
1.3 Problem Formulation:In Shegaon there are 2 nationalize and other Co operative bank are available to provide home loan finance facility to the people. But some different problem are come in home loan as related to the rate of interest co-op bank having more EMI as compare to the Nationalize bank, but in condition of availability in co-op bank is very few time or within short time provide home loan to the people as camper to the other nationalize Bank.
1.4 Utility of the study:In my study first I will suggest to the people which bank is suitable in categories wise people. In village people should be aware or all the various scheme of Home loan can be introduce and which scheme is suitable for that purpose my study is helping to the people.
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CHAPTER 2 HOME LOANS SCHEMES A THEORETICAL REVIEW
2.1 MEANING AND CONCEPT Home loans do not include only the loan for construction of house or purchasing the flat .But home loan includes all the related working with the home. Home loan includes the loan for renovation of the house, purchasing the resale house or a flat, loan for repayment of the home loan from the other banks. Regarding the home loan any financial institution does not provide more than 85% of the total amount required. The reason behind this is that, if any bank provides 100% loan to the person then his personal interest does not get involved in it so that there is possibility of non-repayment of the loan by the customer. So for the safety purpose no institution provides 100% finance to the customer. Housing is one of the basic necessities of man, and the capital required per dwelling is so large that few individuals can raise it from their own savings. There is therefore a great need and scope for the development of arrangement for supplying loans or finance for the purpose of house construction. However for some reasons or other, the shelter sector of the Indian financial system has remained utterly underdeveloped so far, although it is hoped that there would be improvements in the near future. The lakh of adequate institution supply of credit for house building has been stressed by many as an important gap in the process of financial development in India. in the recent past, the authorities have initiated certain steps to bridge this gap. In this sec. we briefly describe the existing and changing arrangement in India for providing financial for housing. Finance for housing is provided in the form of mortgage loans, i.e it is provided against the security of immovable property of land and buildings. The suppliers of house mortgage loans in India are the following : the Housing and urban development corporation (HUDCO), the apex Co-operative Housing Fianc Societies and Housing Boards in different States, Central and State Government, LIC,
Commercial banks, GIC and a few private housing finance companies and nidhis .The government provide direct loans mainly to their employees. The participation of commercial and urban co-operative banks in direct mortgage loans has been marginal till recently. LIC has been a major supplier of mortgage loans in indirect direct forms.

It has been giving major supplier of mortgage loans indirect and direct forms. It has been giving loans for house buildings to the State Governments ,apex Co-operative Housing Finance Societies, HUDCO, and so on .In addition ,It has been providing mortgage loans directly to individuals under its various mortgage schemes. Its outstanding loans for housing development including by way of mortgage of properties were of the order of Rs.1998 corers in 1988-89.
2.2 SCHEME CHARCTERISTICS A) Repayment Repayment facility is to provide the customer with a repayment schedule, which is linked to his expected growth in income .It, also helps a customer get a larger amount of loan as compared to the loan under the normal housing loan. The customer can avail of a higher amount of loan and pay lower EMIs in the initials years. Subsequently, the repayment is accelerated proportionately with the assumed increase in his income. The EMIs will be increased in stages .For eg: For a 15-year loan, the repayment schedule, divided into 3 tranche would give a step up in the EMI at the end of the 3rd and 7th year. The EMIs for the first seven years constitute a large part of interest and a nominal sum of the principal portion. For the balance 8 years, the EMIs are stepped up to recover the outstanding principal and interest for the remaining term of the loans, this product can be used to maximize the tax benefit as it defers the payment of principal.
B) Balloon Payment Balloon Payment is an enhancement tool, which helps in increasing the loan eligibility of the customer without increasing the EMI by assigning securities like National Savings Certificate (NSC), LIC policies etc. The present value of the maturity amount of assigned securities is combined with the loan amount to arrive at the enhanced loan eligibility. Under this facility, the EMI is calculated on the net loan amount (i.e total loan less the present value of the maturity value of the securities).
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C) Flexible Loan Installment This product offers a customized solution to suit the needs of customers whose repayment capacity is likely to alter during the term of the loan. The loan is structured in such a way that the EMI is higher during the initial years and subsequently decreases in the latter part proportionate to the reduced income of the customer. For eg: If Husband has 10 years of service left and wife has 15 years to retire then a 15 years loan can be structured such that a higher EMI (serviced out of both the incomes ) is paid for 10 years and a lower EMI (serviced out of only wifes income) is paid for next 5 years. D) Equal Monthly installment EMI stands for Equated Monthly Installments. This installment comprises both principal and interest companies .EMI calculated to find out applicant monthly payments based on the loan amount ,the rate of interest and the repayments periods .Choose the combination that the best meets applicants financial resources and requirements.
2.3 REGULATORY PROVISION A Study Group on finance intuitions was appointed by the Reserve Bank of India in sep 1987 , under the Chairmanship of Dr. C. Rangarajan, then Deputy governor of Reserve Bank of India (now Governor of RBI) , to make suggestions regarding , inter alia ,the role that could be played by commercial banks in housing finance. In the light of deliberations of the Study Group and keeping in view the objectives of the national housing policy , the Reserve Bank of India has modified the existing guidelines(issued in Oct 1988) as, indicated in the following paragraphs. 1. Direct Lending i) Terms and condition Governing Housing Loans a) Eligibility Criteria for Treatment as Housing Finance: Construction activity eligible for bank credit a housing finance will continue to be as set out in Annexure I (reproduced below) to the RBI circular DBOD No.CAS. BC71/C 446 (HF-P) 79 dated 31 May, 1979.
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b) Rate of interest, Margin, etc .: Housing finance is subject to usual lending rate except in the case of finance to intermediary lending agencies which are provided funds at 3% below the minimum rate applicable for credit limits in the category of over Rs.2 lakhs. Loans upto Rs.5, 000 to SC/ST beneficiaries continue to be at 4 % interest per annum, but effective from May 14,1991 these loans would be covered under DRI scheme, subject to such beneficiaries fulfilling the incoming criterion under the scheme. c) Ceiling on amount of Loan: For the purpose of financing, the cost should be estimated the current cost of construction, at the same time ensuring almost economy in the use of land, built-up space and building materials. The RBI advised scheduled commercial banks that National Housing Bank would, in due course, make cost studies and issue necessary guidelines for the purpose. The amount of bank loan per individual should not exceed Rs.3 lakh , but this ceiling stands withdraw with effect from 11th October 1989. It was felt that while the present thrust for financing smaller houses must continue, there may be cases with genuine needs of loans for over Rs.3 lakh further banks will have discretion to change a higher interest rate of 16% p.a. on housing loans exceeding Rs.3 lakh . However, such housing loans exceeding on housing loans exceeding Rs. 3 lakh . However, such housing loans exceeding Rs. 3 lakh per individual will not form part of housing finance allocation stipulated by the reserve bank d) Security: the security for the advance should be mortgage of property or government guarantee as per the existing guidelines. Where neither is feasible, banks can accept, at their discretion, security of adequate value I the form of life insurance policies, government promissory notes, shares, debentures, gold ornaments or such other security as they deem appropriate. e) Repayment Schedule: The repayment period should not exceed 15 years (including a moratorium or repayment holiday, at the option of beneficiary, till completion or 18 months from the disbursement of the loan, whichever may be earlier). The repayment should be fixed on a realistic basis taking into account the repayment capacity of the borrower which should not normally exceed30% of his income. f) Graduated installments: In order to make housing finance affordable for the lower income groups, banks may consider fixing the monthly/quarterly installments on a graduated basis , if there is reasonable expectation of growth I the income of the borrower In the coming year. Under the repayment schedule smaller amount of

installment will be payable in the earlier years and larger one in the latter years, so that they become more affordable by the lower income group.
ii) Housing fianc to persons affected by natural calamities, Riot, Etc: Provision of relief and rehabilitation assistance by banks to persons affected by natural calamities, riots, etc., including grant of loans to victims for house
repairs/construction is governed by guidelines issued by Rural Planning and Credit Department vide their circular RPCD No.PS. BC6/PS-126-86 dated 2nd August 1984 and RPCD No. PL.PS-BC 28 /PS. 126-86 dated 5th December 1986. Banks should ensure effective implementation of the guidelines at the field level and render financial assistance to the affected people, keeping in the view the terms and condition stipulated above.
2. Indirect Lending:(i)Terms Loans to Housing Finance Institutions a) Banks may grant term loans to housing finance institution, taking into consideration their (long-term) debt equity ratio, track record, recovery performance and other relevant factor. While the quantum of term loans to the Housing and Urban Development Corporation Ltd.(HUDCO) would have to be decided in relation to the housing projects to be financed, funds available from other sources ,etc. b) The rate of interest to be charged on term loans to housing finance institutions may be 12.5% per annum, barring in the case of housing loans upto to Rs.5, 000 to SC/ST in respect of whom the concessional interest of 4% per annum is applicable. The rate 12.5% per annum will be subject to the condition that (i) not less than 75% of the units financed are meant for Economically Weaker Section (EWS) and Lower Income Group (LIG) and (ii)The rate of interest charged to ultimate beneficiaries and other terms are as stipulated in paragraph (i)(a) to (e) under Direct Lending above. If the condition at(i) is not satisfied banks may fix appropriate higher rates of interest on their lending to housing finance institutions, subjects, however, to compliance with condition (ii).There payment period of the term loan should not exceed 15 years .
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(ii) Lending to Housing Board and other Agencies Banks may extend term loans to state level Housing Boards and other public agencies on the same terms and conditions as indicated at (i) (b) above. In order to develop a healthy housing finance system, while performance of those agencies in the matter of recovery from the beneficiaries but they should also stipulated that the Board will ensure prompt and regular recovery of loan installments from the beneficiaries.
(iii) Financing of Land Acquisition In view of the need to increase the availability of land and housing sites for increasing the housing stock in the country, banks may extend finance to public agencies for acquisition and development of land provided it is a part of the complete project including development of infrastructure such as water system, drainage, roads, provisions of elasticity, etc such credit may be extended by banks by away of term loan at maximum rate of interest of 15 %per annum. However the project may be completed as early as possible, in case within 3 years, as to ensure quick recycling of bank funds for optimum results. This project also covers construction of houses credit extended therefore in respect of individual beneficiaries should be on the same terms on conditions as stipulated under (i) Direct Lending.
(iv) Private Builders:There are at present no restrictions on commercial banks financing private builders but commercial bank credit has not been flowing to them in any significant measure. In view of the important role which professional builders as providers of constructions services have to play in the housing field especially where land is acquired and developed by state Housing Boards and other public agencies, commercial banks may extend credit to them on commercial basis(i.e., not less than 16% annual rate of interest ) by way of demand loan linked to each specific periods for a maximum periods up to 18 months subject to usual safeguard and after obtaining such security as they them appropriate. Such credit may be extended to builders of repute and employing professionally qualified personnel. It should be ensured through close monitoring that no part of such funds is used for any speculation in land. Care should also be taken to see that prices charged from the ultimate beneficiaries do not

include any speculative element that is, they should be based only on the documented price of land, the actual cost of construction and a reasonable profit margin. 2.4 Types of Home Loan There are different types of home loans available in the market to cater borrowers different needs. Home Purchase Loan: This is the basic type of a loan which has the purpose of purchasing a new house. Home Improvement Loan: This type of loan is for the renovation or repair of the home which is already bought. Home Extension Loan: This type of loan serves the purpose when the borrower wants to extend or expand an existing home, like adding an extra room etc Home Conversion Loan: It is that loan wherein the borrower has already taken a housing loan to finance his current home, but now wants to move to another home. The Conversion Housing Loan helps the borrower to transfer the existing loan to the new home which requires extra funds, so the new loan pays the previous loan & fulfills the money required for new home.
Bridge Loan: This type of loan helps finance the new home of the borrower when he wants to sell the existing home, this is normally a short term loan to the borrower & helps during the interim period when he wants to sell the old home & want to buy a new one, It is given till the time a buyer is found for the old home. Home Construction Loan: This type of loan is taken when the borrower wants to construct a new home. Land Purchase Loan: It is that loan which is taken to purchase a land for construction & investment purposes.
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2.5 Needs and Limitations:The present study is conducted aim at knowing the various home loans financing schemes available in Shegaon city and offered by different housing finance institutions along with different characteristics, details of regulatory provision. The study is useful for financial institutional in Shegaon city. The data collected from these institutions is in guessing figure. It is not actual figure because they have to maintain trade secrete. 2.6 Home Loan Documentation:Owing a home loan is probably one of the most precious and cherished dreams of any person; especially when he or she has to earn his or her living from a fixed quantum of salary. For that you basically have two options either save or invest in a planned way, or take a home loan. Numerous banks now days have tailored -made packages to serve you, with lots of promises to disburse your loan. The only precondition is your home loan documentation should be ok. After the entire credit appraisal officer is also a salaried person! He has to document the papers in a proper way so that if tomorrow you fail to pay the money, he has got enough piles of papers to save e his back! Jokes apart, home loan documentation is the first and foremost hurdle for a salaried individual in the way of getting a home loan .so here is checklist for every salaried individual in the way of getting a home loan. So here is checklist for every salaried person to comply before the proceeds to any bank of his choice to apply for a home loan. The Banks normally try to assure themselves of three things:a) Income / employment proof of the applicant so that he can repay the Loan. b) Identity and address proof of the applicant so that he can easily traceable c) Authenticity proof of the house property so that the applicant doesnt come after few days seeking a personal loan for litigation with the promoter. Each of the aforesaid issues are dealt in below, listing each individual documents, generally sought after, by both the nationalized and private banks A. Income Proof:1) Salary slips for the last three months. 2) Appointment letter. 3) Salary Certificate.

4) Retainer Ship agreement, if appointed as a consultant. 5) Form 16 issued by the employer in your name. 6) Last three years Income Tax Returns duly filed and certified by the Income Tax authorities. 7) Similar documents separately for each co-applicant. Additional Note:Co-applicants income can be considered for enhancing your loan eligibility or increasing your loan amount. Please ensure that all financial documents of coapplicants (s) are attached with yours India Home Loan application. B. Employment Proof:1) Identity card issued by your employer. 2) Visiting card. C. Age Proof:1) Passport 2) Voters ID card 3) PAN card 4) Ration card 5) Employers Identity card 6) School Leaving certificate. 7) Birth Certificate. D. Residence Proof:1) Ration card. 2) Passport 3) PAN card 4) Rent agreement, if you are staying currently on rent. 5) Bank pass book. 6) Allotment letter from your company if you are residing in company quarters. .
E. Name Change Proof: (If Applicable) 1) A copy of the official gazette. 2) A copy of newspapers advertisement publishing the name change. 3) Marriage Certificate.
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F. Investment Proof:1) Bank statement for the last six months of all operating and salary accounts. 2) Banks statements for the last six months of all current accounts, if self-employed. 3) Any other photocopies of investment held, if required by the bank.
G. Property Title Proof:1) Original sale agreement with builder or developer duly registered registration receipt. 2) Tripartite agreement from builder or developer. 3) Land documents indicating ownership, e.g photocopies of title deeds, if applicable. 4) A certificate by the legal adviser of the builder to the effect that the builder has a good reputation and it is free from encumbrance and other charges. 5) A certificate from builders chartered accountant certifying that the builder has not mortgaged the property anywhere else. 6) Certified true copy of approved plan. 7) Copies of receipts of payments made to builder or developer. 8) Allotment letter. 9) Possession letter. 10) Lease agreement, if applicable (property bought from a development authority) 11) Mortgage deed if the bank for a registered mortgage.
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CHAPTER 3 COMPANY PROFILE
3.1 State bank of India A. Nationalized Banks: I) Introduction:The SBIs powerful corporate banking formation deploys multiple channels to deliver integrated solutions for all financial challenges faced by the corporate universe. The Corporate Banking group and the National Banking group are the primary delivery channels for corporate banking products .State Bank of India proudly stands as one of the nationalized bank catering to the needs of common mass since long. The Bank is actively involved since 1973 is non-profit activity called community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways. The Bank is forging ahead with cutting edge technology and innovative new banking models, to expand its rural banking base, looking at the vast untapped potential in the hinterland and proposes to cover 100,000 villages in the next two years. Branches:The corporate center of SBI is located in Mumbai. In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India.
ATM Services SBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which includes the ATMs of State Bank of India as well as the Associate

Banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.
Subsidiaries The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries. Through the establishments, it offers various services including merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards andinsurance. The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT)
Personal Banking

SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme
Other Services

Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques
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In Shegaon city there is one branch of State Bank of India is stand on the middle of the city. There 3ATM service provider located in different place at shegaon II) History:The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India,on27January1921.
The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development. III) Awards and Recognitions:a) Only Indian Bank to find a place in the fortune global 500 list improved Ranking from 495 last year to 380 this year. b) Improved ranking from 219th position last year to 150th this year in the Forbes 2000 list of largest companies in the world.

c) Reputation institute US has ranked SBI 29th . d) Awarded the Bank of the year 2008-India by the Banker Magazine , London. e) Ranking in the The Banker top 1000 World Bank improved to 57 from 70 in 2007. Only Indian Bank among the top100 banks in the world. Rank 8th in top 25 Banks in Asia. f) Ranked 1 is survey of top 5 companies in India in terms of financial Reputation by wall street journal.
3.2 Central Bank of India

Mission Statement Develop into a top rate, nimble footed banking institution committed to excellence inservices to its customers, enhancing stakeholders value though care and competence and fulfilling obligations to the community at large.
Vision Statement a) Attain high standards of efficiency and professionalism and core institutional values comparable to the best in the field. b) Possess world-class standards of efficiency and professionalism rooted in the core institutional values of the State Bank Group. c) To be a committed, caring and responsible corporate citizen d) To provide a satisfying work environment with opportunities for learning, selfdevelopment and self-actualization.
History of the Bank Established in 1911, Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. The establishment of the Bank

was the ultimate realization of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of the nation and the country's asset'. He also added that 'Central Bank of India lives on people's faith and regards itself as the people's own bank'. During the past 99 years of history the Bank has weathered many storms and faced many challenges. The Bank could successfully transform every threat into business opportunity and excelled over its peers in the Banking industry. A number of innovative and unique banking activities have been launched by Central Bank of India and a brief mention of some of its pioneering services are as under: 1921 Introduction to the Home Savings Safe Deposit Schemeto build saving/thrift habits in all sections of the society. 1924 An Exclusive Ladies Department to cater to the Bank's women clientele. 1926 Safe Deposit Locker facility and Rupee Travellers' Cheques. 1929 Setting up of the Executor and Trustee Department. 1932 Deposit Insurance Benefit Scheme. 1962 Recurring Deposit Scheme. Subsequently, even after the nationalization of the Bank in the year 1969, Central Bank continued to introduce a number of innovative banking services as under: 1976 The Merchant Banking Cell was established. 1980 Central card, the credit card of the Bank was introduced. 1986 'Platinum Jubilee Money Back Deposit Scheme' was launched. 1989 The housing subsidiary Cent Bank Home Finance Ltd. was started with its headquarters at Bhopal in Madhya Pradesh. 1994 Quick Cheque Collection Service (QCC) & Express Service was set up to enable speedy collection of outstation cheques.
Further in line with the guidelines from Reserve Bank of India as also the Government of India, Central Bank has been playing an increasingly active role in promoting the key thrust areas of agriculture, small scale industries as also medium and large industries. The Bank also introduced a number of Self Employment Schemes to promote employment among the educated youth.

Among the Public Sector Banks, Central Bank of India can be truly described as an All India Bank, due to distribution of its large network in 27 out of 29 States as also in 3 out of 7 Union Territories in India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3967 branches and 27 extension counters at various centers throughout the length and breadth of the country. Customers' confidence in Central Bank of India's wide ranging services can very well be judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also almost all major corporate houses in the country. Key Attributes Central Bank of India claims to be the first bank to be conferred with the National Award for Excellence in Micro and Small Enterprises (MSE) Lending for the year 2007-08. The bank entered a partnership with Kotak Mahindra Assets Management Company in December 2008, under which all the Kotak Mutual Fund products will be made available through Central Bank of India branches.
Products and Services Central Bank of India offers a host of banking services to its customers including Regular Banking Services such as Deposits and Loans, International Banking Services, and other services including Central card Electronic Cards, Debit Cards, NoFrills Savings Deposit Account under the name Cent Bachat Khata, and Finance options for domestic and international tours under the name Cent Safar.
Presence in India Central Bank of India has a strong presence in the country with over 3000 branches and more than 250 extension counters nationwide as of April 2009. The headquarters of the bank are located in Mumbai, the financial capital of India, along with 16 other zonal offices established in different cities of the nation, including Agra, Ahmadabad, Bhopal, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata, Lucknow, Mumbai Metro Zonal Office, Muzaffarpur, Nagpur, New Delhi, Patna, Pune and Raipur.
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A. Non Nationalized Bank
3.3 The Shegaon Urban Credit Co-operative Society in Shegaon Introduction:The Shegaon urban is the Non-nationalized bank it is just located in centre of the city when there are number of borrower is in the locally or the person is account in that bank are known well manner transaction of that bank, A number of innovative and unique banking activities have been launched by Shegaon urban Bank of India and a brief mention of some of its pioneering services are as under: History of the bank:Shegaon urban Credit Co-operative Society bank is established in the year of 1992. In that period only is working on manual manner like as register manner after that the number of account open or response of bank is much more so it should be development our bank in computerized manner. Firstly is only to taking the saving money account only for few year for the survival of the bank in city. After that bank improve there characterized year by year in well manner. When the period of modern like so it will be going to firstly step on loan schemes started in year 2005. In Shegaon is the 80% people is business depend so they towards preferred the urban bank mostly because of the process is fast and easy to work out. Branches:When the Number of people open the account in that bank or mostly happen to easy the service of people Shegaon urban credit bank in Shegaon newly open there 2. Sub-branches in different area of Shegaon to operate there service easily and move the number of people towards there bank to open there account. On that period is not stop outside the Shegaon also response people to that bank for that condition they can be open there branches in also on Khamgaon and Paturda khamgaon is the very income source or daily lot of transaction is done . Manager meeting with the under bodies member yearly:In the balance sheet purpose all the transaction are front of the chairperson of the bank and the under meeting all the employs of bank in all braches are to be present in that meeting under all the annual problem should be discussed with each other and correct solution find it .Any new plan should be conducted. In future care taking

purpose all the data is legally formed in well organized manner and annual balance sheet is correctly tally. Other Activities:In Bank is working on a period is not work for there own purpose so some time should be the organized some like social programmed like, Tree plantation, Blood donation champ ,Adult literacy programmed.etc. 3.4 Shri Keshav Urban Credits Co-operative Society Shegaon:Shri keshav urban Credit Co-opp society is the bank is also indicated by the name is Keshavardhini working for that necessary need of loan is the main purpose of that bank. In Shegaon when limited number of people is salary based for that according the condition is work for the person. The bank is major role in saving account, or a credit account of the people. History of the bank:The Keshavardhini bank i.e Keshav bank is established in the year of 19951996 firstly this bank is open in shegaon city and offering to open a new account of the customer i.e saving a/c or current fixed deposit a/c on that way bank ways go there ways in positively manner after in shegaon same period like most of the people is purchase the land in more in nature in that period keshav bank openly there Home loan schemes and full filament of need people to acquired and getting the land very easy manner . The home loan scheme is nearly established in 2000-2002 year from to updates. In that bank are having general nature is to maximum of borrower are satisfaction and happy to tells the nature of the bank, so easily increasing there customer. Branches:The shegaon Keshav urban are yearly in progress in nature and outside the people are come so the time of that bank open there new branches in other city or villages. So there are 2 branches is outside from shegaon is 1 in near Tunki another one in Nandura. This bank is also working in progress in well manner , after that bank are taken a role to improve there various schemes under at so in future bank is come in front from all of us.
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Other activities:In shegaon is the city of Sant shri Gajanan maharaj so in any festival of maharaj near villages come up with there palkhi in maharaj palkhi so in that activities Bank play very vital role i.e bank distribute voluntarily Tea, Water, Mahaprasad, etc. Another activities is the play in social purpose i.e in Government hospital with in year 2 times goes there employs and needy people to distribute the some fruits, basic need, etc. 3.5 The Shegaon Shri Agrasen Credit Co-operative society
The Shegaon shri Agrasen sahakari bank is towards under there name for the identify is Agravardhini .In the bank under the road ways of Shri Shatrapati Agrasen Maharaj in there behavior in front of there eyes in travel the bank in all over the Maharashtra. The name suggests that Agrasen so the it is more or large number of is related to the caste of Agrasen marvadi it is observation in that bank data collection period. The Agrasen bank is very rapidly growing bank in condition in todays. History of bank:The Shegaon Agrasen sahakari bank is open in 1988 in shegaon. In fist the started the bank so limited number of account is open and in that period all the work of the employs work are perform in manual manner and registered it . when after that some year goes and number of response is increasing so all the working is need to computerized and changing there infrastructure in the year of 2000-2001 . In the latest 2011-2012 annual schedule or balance sheet under that is very happy tails us there employs loan distribute, loan borrower is not a strong point so it will be kindly take care of customer so changing there behavior , and very fast service to the customer so the customer should be satisfaction is the main purpose of the bank.
Annual Transaction:In the current balance sheet is observe that the bank are crossing the limit of 5577 cores in year.
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Branches:The Shegaon Agrasen Sahakari Bank is not only in shegaon there are number of branches in surrounded to shegaon .there is main office in shegaon. There are 17 branches is outside from shegaon is Murtijapur, Khamgaon, Akot, Vamannagar, Latur, Malkapur, Shahada, Deoulgaon raja, Pune, Jalgaon jamod, Hingoli, Buldhana, Washim, Akola. In shegaon branch name like Agravardhini so in khamgaon branch gives name also like as Agravijay. When the number of customer is increasing so the more number of branches is also increasing the bank goes towards in positively manner and in profit condition.
Awards and Recognition:1) When the bank is crossing there amount in balance more than 112 crores in that period Chairperson of the bank is Mr. Bhikarilalji Agraval is to awarded by the Ankur Sahitya groups in Jeevangaurao Awards . 2) In that bank also the vice-chairperson of Mr. Ramesh Bagdiya and there family is to awarded by the maharasthra agrawal groups in awards of Agrashri
Other Activities:1) In the Organization of all the employs is to be literate or educated by the some other senior guidance to tails some and improve there transaction well organized manner or some time employs is to outside there branches also travel and educated well them. From the employs hard work and help the bank is very strong position in the market. 2) In Sheaon There are the number of people are come for the maharaj darshan for that care of people Water distribute in near railway station road. 3) In the Narayan help organization udyapur in that handicapped people for that purpose Agrasen organization gives the sponsorship, and distributes the instruments which are necessary for the handicapped person.
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3.6 Buldana urban co-operative credit society ltd. Buldana in Shegaon
3.6 Buldana urban co-opp credit society ltd. Buldana in Shegaon..:Buldana Urban initiated micro finance, a facility that supported and transformed countless common lives. It went beyond just finance to enrich and empower the common man, with an array of socio-economic activities. It took co-operative movement to the grass root level and utilized it to uproot problems. By procuring secured finance to the farmers and offering solutions to their problems such as storage and distribution of their products, Buldana Urban gave them economic stability and confidence. Passion for people and their lives, compassion for their adversities and needs, respect for values and discipline, focus on humanity, concern for society, an unwavering faith in the principle of co-operation, all this and much more is at the root of Indias largest co-operative credit society, the Buldana Urban Co-operative Credit Society. Shree Gajanan Maharaj at Shegaon is the much worshipped figure in Maharashtra. Last year was the centenary year marking the profound meditation of this great saint. Buldana Urban had supplied free lunch services during the period 9th to 13th September at Shegaon. More than 60000 devotees were served through this. We at Buldana Urban are feeling positive as we could offer at least some comfort to the devotees of Shree Gajanan Maharaj.
It is true that the Society is receiving recognition throughout India. Many a great personalities have visited the Head Office to see the working of Buldana Urban and to master the art of banking. I am very much thankful to all the followers of the cooperative movements who have always considered the working of Buldana Urban as worthwhile. I am also thankful to the eminent personalities who have found time from their busy schedules to visit the premises of Buldana Urban.
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History of the bank:Buldana Urban Co-Operative Credit Society Ltd. was established on 19th June 1986 at Buldana, India. At the time of establishment, account holders of the society were only in a number of two digits and now this number has grown up to six digits i.e. 1,95,000. Today, Buldana Urban Co-Operative Credit Society Ltd., Buldana having 172 branches in major cities cross the India. We have been able to achieve this only with the co-operation and co-ordination of our valued account holders. Buldana Urban Co-Operative Credit Society Ltd.is committed to create member centric organization with a deep and high sense of social responsibility and to continuously leverage technology to attain world class standards of performance. Co-operation leads to prosperity and prosperity are committed to the welfare of the society. With this belief, Buldana Urban was established way back in 1986, by Mr. Radheshyamji Devkisanji Chandak. It was a time when people viewed cooperation with distrust. Buldana Urban was a pioneering credit society that reinstated the trust by connecting itself to people in more ways than one. Being run and regularized by people, it worked flawlessly and relentlessly for the benefit of the people and their day-to-day problems. The great saint Samarth Ramdas has revealed in the Dasbodh that, one must speak less but concentrate more on work, as also one must try to inculcate the best in his or her working and should make it known to others by deeds and not by words.
Consistently, in this twenty-fifth year, the Society is advancing rapidly towards progress with more and more deposits in terms of monitory gain as well as customer reliance and approval. This year there was an increase of 26% in the deposits. The more the deposits the more is the action-oriented awareness towards social commitments. Consequently, the Society has given more importance to the contentment gained through the social banking than the happiness achieved through the profits made by the book banking.
India for its continuous and concrete support. Yes Bank has also allotted a loan of Rs. 150 crore to the Society, to extend the loan facility for Agricultural Projects.

Sub-branches:Today Buldana Urban stands tall with a well connected network of 220 Branches across Maharashtra and a number of firsts to its credit. Buldana Urban is the first credit society to do core banking. Its deposits have exceeded 1900 crores and loan recovery is at 97% to 98%. Facilities 1. 365 days, 8.00 AM to 8.00 PM (12 Hrs.) Main Branch only. 2. Locker facility. 3. SMS facility for account balance enquiry. 4. TT & DD facility ( All over India) 5. LIC 6. Western union money transfer. 7. Home delivery Withdrawal on just one phone call. 8. Ambulance 9. Higher level education loan. 10. 224 branches in Maharashtra, MP, Rajasthan, Chatisgad. 11. All branches computerized.
Other activities:-
1) Buldana urban sponsorship society is to development it is the all over the India when awarded by the kopkon-2007. 2) In the Buldana main manager Mr. Bhaiji is to be awarded by the in Nagpur Buldana Dist society through Goarao Puraskar in the hand of Dr. Rajendra Shingne. 3) Buldana urban khamgaon branch on the occasion of New Year it is to celebrate of camp of mobile van in eyes check-up.
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CHAPETR-4 RESEARCH METHODOLOGY 4.1:- INTRODUCTION:Research is commonly referred to search for knowledge. It is also defines Research as a scientific search for the pertinent on specific topic. It is also an art of scientific investigation. Research is a systematic method of collecting, recording facts, tabulating and analyzing the fact in the form of objective set as through conclusion over the problem based on the collected data.
4.2:- Definitions:The word research is derived from Latin word meaning to know. It is a systematic and a replicable process which identifies and defines problems, within specified boundaries. It employs well designed method to collect the data and analyses the results. It disseminates the findings to contribute to generalize able knowledge. Research methods are the particulars strategies researches use to collect the evidence necessary for building and testing theories Research is purposive analysis tries to establish a basis for prediction and control behavior of its studies Research methodology has many dimensions and research methods are integral part of it. Research methodology has a wider scope that the research methods. Research methodology is systematic way for solving research problem. It is a science of study how research is done scientifically. It is essential for any research to know not only research technologies but also research methodology. In research methodology we study the various steps that are generally adopted by researcher in studying his research problem along with logic behind them so that research result are capable of being evaluated either by the researcher himself or by any other person.
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Scope of the study:1. This study is analysis and comparison of home loan provided by nationalized banks and private 2. It is helpful in analysis and comparison of home loan provided to the customer 3. Most of peoples are issuing home loan. 4.3 OBJECTIVES: 1) To study the role of financial institution. 2) To study home loan scheme of various bank & financial institution. 3) To evaluate the home loan scheme of various bank & financial institution. 4) To identify the best home loan financing bank. 4.4 Research Process:In the words of Albert Einstein formulation of a problem is far more essential than its solution, which may be merely a matter of mathematical or experimental skill. To raise new possibilities, to regards old problem form a new angle requires creative imagination and market real advance in science. Research process consist of the steps of action to carry out which are closely related. All research problems require their own special emphases and approaches since every research problem is unique in some ways. There is a sequence of step called the marketing research process the following figure shows the different stages in research process. Research process:FORMULATE PROBLEM
DETERMINE RESEARCH DESIGN
DETERMINE DATA COLLECTION
DESIGN DATA COLLECTION FORM
DESIGN SAMPLE AND COLLECTION
ANALYSE AND INTERPRET THE DATA


4.4.1 Formulating Research Problem:At the very outset the research must decide the general area of interest. Initially the problem may be stated in a broad general way and then narrow it down to specific problem. Problem definition involves in understanding the problem thoroughly and rephrasing the same in a suitable way in operation terms for the analysis. The researcher must examine all available literature to get familiarity with the problem. Literature, both, conceptual and empirical, must be reviewed properly. The outcome of which is useful in finalizing the data and other material available for operational purpose to specify the research problem. The problem to be investigated must be defined unambiguously that will help in discriminating the relevant data with irrelevant data. Once the problem is formulated a brief summary may be written down which is called as research plan. As I wanted to study the different loan facilities available in shegaon, I have formulated the problem for my study as-Comparative study of Home loan finance facilities in Shegaon
4.4.2:- Research Method:Exploratory Research: Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist. Exploratory research often concludes that a perceived problem does not actually literature and/or data, or qualitative approaches such as informal discussion with consumer, employees, management or competitors, and more formal approaches such as informal discussion with consumers, employees management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies. The internet allows for research methods that are more interactive in nature: The results of exploratory research are not usually for decision making by themselves , but they can provide significant insight into a given situation. Although the results of qualitative research can give some induction as to the why, how and when something occurs ,it cannot tell us how often or how many
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4.4.3 Research (Design) Approach:It is the blue print of research. It is the conceptual structure within which research would conduct. A flexible research design ,which provides opportunity for considering ,many different aspects of problem and a suitable design will be one that minimizes bias and maximizes the reliability of the data collected and analyzed . The experimental and no experimental hypothesis testing are a few examples of research design. All research approach can be classified into one of two general categories of research : exploratory, descriptive and casual( conclusive) differ significantly in terms of research purpose, research questions the precision of the hypothesis that are formed, and the data collection methods that are used.
4.4.4: Research Tactics:A] Collection of Data:Good inference depends heavily on the appropriateness of the data. There are several ways of collection the appropriate data such as, by observation ,through personal interviews ,telephone interviews ,by mailing questionnaires, through schedule etc, the research should select one of these methods of collection of data taking into consideration the nature, scope and objective. Data collection looks forward to data analysis, so the data requirement is to be well anticipated in advance. Special care must be taken in the collection phased to avoid the source of under or over statement for the various characteristics; the research should not ignore the already available relevant data that is secondary data. The usefulness of the research project depend on the overall quality of the research design, the data collected and analyzed based on the design.
B] Analysis of Data:Once the data is collected, the analysis of the data is an important task. The analysis of data requires the number of operations, such as establishment of category codification of data, tabulation of data and then deriving the inference. A research can analyze the collected data with the help of various statistical measures such as various percentages and analysis of variances.

The data analysis can be classified as univariate analysis where a single characteristic of interest is analyzed and in vicariate analysis and multivariate analysis deals with two and more than two characteristics of interest. 4.4.5 Methods used while doing the project:Sources of Data: Primary Data Secondary Data I ] Primary Data:Primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. Information regarding the company was collected through various discussions held with the concerned company executives Data regarding company history and profile were also gathered through the website. Data collected by structured questionnaire.
II] Secondary Data:Data which are not originally collected but rather obtained from published or unpublished sources are known as secondary data. It is second hand information. When an investigator uses the data, which has been already collected by others, such data is called as secondary data. This data for someone else who uses this data for his own purpose. The secondary data can be obtained from journal, reports and government. Publication, publications of professional & research organizational & so on. 4.4.6: Sample Size and Selection Process:The sample selection process requires the form of sample be specified. For this purpose, researcher has subjectively decided which particular group will be part of the study. In a sample survey a small part of the entire Bank is subjected to the research. The sample size has been kept to 2 Nationalized Bank i.e (State Bank of India & Central bank of India) and 10 Non - Nationalized Bank. The sampling procedure is simple random sampling .After the sample size is decided, the next step was to meet the respondent personally and to collect data from them through personal interviews. Data was collected in the form of response to the well framed

questionnaire from employs of bank they was taken home loan with respective bank. The research area is only Shegaon city.
Literature study:This data were collected from following sources, Company websites Books
4.4.7 Limitations of study: Every research has its own limitations likewise this study is having some of them. 1) This study aim to know the various Home Loan schemes of Private Bank and Nationalize Bank in Shegaon city. 2) The information is obtained from employs and thus findings are based on that information only. 3) The sample size was small that is of 10 Non-nationalize bank and 2 nationalize bank due to the considerable limitations of time factor and economy. 4) This survey was based on random sampling technique. It is believed that responses in such type of research cannot be taken granted heavily.
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Chapter-5 HOME LOAN SCHEMES
A new home brings with it new hopes, joys and emotions. Every customer has a specific and unique concern. There are different schemes for home loan. All Nationalized and Private Bank focus on variable interest rate. 5.1 State Bank of India:State Bank of India home loan is one of the best loan products that you will come across in the market. The bank has designed a range of loan products to satisfy various requirements of the customers. State Bank of India home loan is available with alternative interest rates and repayment terms that are suitable for the borrowers. These loans are offered by the personal banking division of State Bank of India. The bank has been recognized as the . most favored home loan provider in Awaaz Consumer Awards.
SBI home loan are now available with attractive discounts on green
homes in line with the vow of State Bank of India to Environment Safety 'SBI-Home Loans' Unique features:

No cap on maximum loan amount for purchase/ construction of house/ flat Option to club income of spouse and children to compute eligible loan amount Provision to club expected rent accruals from property proposed to compute eligible loan amount
Provision to finance cost of furnishing and consumer durables as part of project cost

Repayment permitted upto 70 years of age Free personal accident insurance cover Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost)
Interest applied on daily diminishing balance basis 'Plus' schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers, Employees in Public Sector Oil Companies.
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Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat
No Administrative Charges or application fee Prepayment penalty is recovered only if the loan is pre-closed before half of the original tenure (not recovered for bulk payments provided the loan is not closed)
Provision for downward refixation of EMI in respect of floating rate borrowers who avail Housing Loans of Rs.5 lacs and above, to avail the benefit of downward revision of interest rate by 1% or more
In-principle approval issued to give you flexibility while negotiating purchase of a property
Option to avail loan at the place of employment or at the place of construction Attractive packages in respect of loans granted under tie-up with Central/ State Governments/ PSUs/ reputed corporates and tie-up with reputed builders (Please contact your nearest branch for details)
Purpose Purchase/ Construction of new House/ Flat

Purchase of an existing House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost Takeover of an existing loan from other Banks/ Housing Finance Companies
Eligibility

Minimum age 21 years as on the date of sanction Steady source of income
Loan Amount
Applicant/ any one of the applicants are aged over 21 years and upto 45 years 60 times Net Monthly Income (NMI) or 5 times Net Annual Income (NAI), subject to aggregate repayment obligations not exceeding 57.50% of NMI/ NAI
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Applicant(s) aged over 45 years of age- 48 times NMI or 4 times NAI, subject to aggregate repayment obligations not exceeding 50%of NMI/ NAI
To enhance loan eligibility you have option to add:

Income of your spouse Income of 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
Regular income from all sources
A. Home Loan Interest Rate:State Bank of India home loan interest rates are one of the most competitive rates that you will get in the market. The rates are subject to change as per the sole discretion of SBI. The tables given below will help you understand State Bank of India home loan better. i) SBI Easy Home Loan Loan Amount Facility type Interest for 1st year Interest for 2nd & 3rd year Interest for 4th year on wards No fixed rate option Table No. 5.1 SBI Easy Home Loan ii) SBI Advantage Home loan: Loan Amount Facility type Interest for 1st year Interest for 2nd & 3rd year Interest for 4th year on wards No fixed rate option Table No. 5. SBI advantage Home Loan Interest rate for loan Above Rs. 30 lakh and upto Rs.75 lakh Term Loan 11 % per annum 11.25 % per annum 1.75 % higher than the base rate, presently rate in force being 11.75 % per annum Interest rate for loan Upto Rs.30 lakh Overdraft (Max gain) or Term Loan 10.75 % per annum( Fixed) 11 % per annum (Fixed) 1.50 % higher than the base rate, presently rate in force being 11.50 % per annum
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When youre searching for the most affordable home loan interest rates from the market, you should give state bank of India a thought. State Bank of India home loan interest rates are one of the best rates that are available to you in India.
B. SCHEMES OF HOME LOAN:A) SBI FLEXI HOUSING LOAN:In wake of intense market competition & with view to meeting emerging market demand to build in value added & customer friendly features to our Home Loan. To increase our H L product profile. All HL borrowers who avail loans of Rs. 5 lakh and above.
B) SBI REALTY: To tap effectively the market potential for home loan for purchase of land for housing construction more appealing & customer friendly approach. Eligibility:- Individuals over 18 years of age with steady source of income, including persons engaged in allied activities.
C) SBI FREEDOM HOME LOANS: To extend value added option to meet the latent needs of the niche customer group comprising HNIs, Affluent, NRIs, Highly paid executives, leading professional etc. Background:- In wake of enhanced IT incentives for HL ( U/S 80 C up to Rs 1 lakh of principle repayment as against the earlier cap of Rs 20000 only ), Many
prospective HNI & mass affluent borrowers are keep to avail HL to the Max extent to draw optional IT Benefit. Repayment:Normal repayment as in regular HL , subject to renewal of the out
securities pledged on maturity till liquidation of loan or Repayment of the loan
of the proceeds of the securities offered , as and when they mature . Borrowers to arrange to pay monthly interest.
D) SBI OPTIMA ADDITIONAL HOME LOAN:Purpose: - To meet expenses towards major repair, renovation & addition to their house/flat as also for purchase of furniture, fixture, consumer durable etc.

Rationales:a. To maintain long term relationship with home loan borrowers. b. Ensure continued customer loyalty. c. Make of HL scheme more customers friendly by extending value added facilities d. Improve our competitive edge in the market. e. To take over of home loan by optimally tapping the significant potential.
Repayment:- Max up to residual period of HL by clerk off/ PDC from2 months after final disbursement or completion of work which ever is earlier . Processing fee: 0.25% of the loan amt max Rs.10000
E) SBI- Home Line:Purpose:- General purpose loan against mortgage of immovable property. Rationales:1. To reinforce the loyalty of existing Home loan borrowers. 2. To tap the potential for take over of home loans. 3. To give a discernible boost to the off take of personal loans. 4. To improve net interest Margin (NIM)
F) SBI HOME CASH now renamed: SBI HOME PLUS A vale added personal loan to our existing home loan customers on attractive & easy terms especially in views of the comfort of security as house property. Eligibility:-All HL customers with satisfactory repayment records of at least one year and maintaining SB/CA with us. Loan amount :Minimum Rs.25000, maximum Rs.10 lakh subject to present value of house property (-) 25% margin on property value & (-) present outstanding in home loan a/c .The present market value of the property to be decided by approved panel velour. Purpose: - any purpose extension /repair of house, purpose of car / consumer durables, education / medical expenses of family, personal expenses etc.
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Repayment:- Not beyond the existing period of HL convenient to borrower ,starting one month after disbursal. Prepayment: Penalty of 1% amount prepaid. No Penalty if HL & TL prepaid simultaneously.
G) SBI YUVA HOME LOAN:PURPOSE:- Consequent upon nuclearization of families and young affluent workforce intend to purchase properties at a young age , gap between the available funds and property prices is wide , to bridge this gap it has been decided to launch this product. Eligibility:- Salaried employees of private sectors, MNCs, PSUs, Government employees .Age- YUVA :> =21 years and <= 35 years , YUVA COUPLE : less 40 yrs min contribution (NMI) of one is 25% , YUVA FAMILY :Where parents join ,min contribution by YUVA or YUVA Couple 75% . Min NMI : Rs 50000 Not to include future rental ,as purpose is self use). Facility: Term Loan. Fixed Loan Term: 240 months (shorter / longer period not permitted). Maximum permissible loan amount: 20 % extra i.e 1.2 times of loan quantum as per EMI/NMI ratio. Repayment:- 1st 36 months only the interest applied during the month will be recovered. 37th month onwards -204 EMIs. Other features: 1 Benefits under corporate salary package (CSP) .2. If not under CSP, Festival Loan (=3 NMI) for 36 EMIs.3. cross selling opportunities like new pension system, SBI Life Dhanraksha, SBI General property Insurance . Other features are same as in SBI Home loan Scheme. (
H) SBI ADVANTAGE HOME LOAN:The product is designed to address the customerss need for HL at affordable interest rates & a fair amount of certainty about repayment obligation over a period of time. Facility: Term Loan. Loan amount: More than 50 lakh Interest Rates:- 1st year -10.75 % fixed ,2nd year 11% after 3yr floating :-1.75% < SBAR ,fixed :0.75% < SBAR with reset frequency of 5 year. Repayment:- EMI to be adjusted as per rate of interest applicable in 1st ,2nd & afterwards features other than mentioned above will be as in case of SBI Home Loan scheme.
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I) SBI Happy Home Loan:Rationale:- For stimulating growth in residential real estate and related sectors in the economy, it has been decided to provide to the genuine needy buyers to buy dwelling units by freezing interest at 8% p.a for a period of 1 year on all new Home loan.
Eligibility:- All Home Loan to public include take-over sanctioned on or after 02.02.2010 and at least partially disbursed on or before 30.09.2010 include SBI special Home loan.
Interest Rate:- Freezed at 8% (fixed) up to 30.09.2010 after that interest will reset as per regular contract rate.
Repayment:- EMI set at 8% in first 12 months ; EMI will be reset on outstanding balance after 12 months .
Loan amount:- To be worked on regular contracted rate after 12 months.
J) SBI Lifestyle Loan:For existing HL Customers. Rationale: - To meet any short-term expenditure, except speculative investment, which adds comfort to the life style of the borrower (like vacation travel, purchase of gold & lifestyle goods etc) with satisfactory repayment record?
Eligibility:- Satisfactory repayment of HL, minimum 5 EMIs repaid ,standard asset . This loan may be availed by HL borrower or spouse guaranteed by HL Borrower.
Loan Amount:- 10% of HL, min Rs 10000 max Rs 5 lakh .
Interest: 8 %( fixed). Tenor: 24month Type: Demand Loan.
Repayment:- In 24 EMIs. Modality Offer letter to be sent to eligible HL Borrower.
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5.2 Central Bank of India:-
A central bank is the term used to describe the authority responsible for policies that affect a countrys supply of money and credit. More specifically, a central bank uses its tools of monetary policyopen market operations, discount window lending, changes in reserve requirementsto affect short-term interest rates and the monetary base (currency held by the public plus bank reserves) and to achieve important policy goals. A. Home Loan Interest Rate:Central Bank of India home loan interest rates are one of the most competitive rates that you will get in the market. The rates are subject to change as per the sole discretion of CBI. The tables given below will help you understand Central Bank of India home loan better. Floating Rate option Repayment Period Upto 5 years Over 5 years & up to 10 years Over 10 years & up to 15 yrs Up to Rs. 30 Lacs 10.75% 10.75% 10.75% Above Rs. 30 Lacs and below Rs. 75 Lacs 11% 11% 11% 75 Lacs and above 11.25% 11.25% 11.25%
B. SCHEMES OF HOME LOAN:I) Direct Housing Finance Scheme (DHFS) 1 Purpose (a) For construction / acquiring of new or existing house/flat not than 30 years. (b) For extension in the existing house/flat. (c) For repairs/renovation/alteration of existing house/flat. older
(d) Finance (Maximum Rs.25.00 lakh) may be granted for purchase of plot subject to condition that construction shall start within two years. 2 Eligibility a. Individual salaried employees, self-employed persons, professional,
any other person having a legal, identified and regular source of income.
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b. The applicant/s must be 18 years old (completed) as on the date of application. c. In case of salaried individuals, applicants must submit original salary certificate/Form 16/income tax return. d.In case of self-employed person, professional, any other person : i. Loan amount upto Rs.5.00 lakh: Satisfactory evidence of sufficient monthly/annual income to be produced by the borrower. ii.Loan amount above Rs.5.00 lakh: The borrower should produce Income Tax Return for preceding two years as evidence of income.
3 Quantum of loan
90% (for loans upto Rs.25 lakh) and 75% (for loans above Rs.25.00 lakh) of the cost of construction / purchase of new / existing flat/house or cost of extension of existing house/flat (including cost of land, stamp duty, registration charges and cost of life insurance cover on the life of borrower for entire tenure of housing loan if taken by the borrower on single premium basis).
75% of the cost of repairs/renovations/alterations of existing house/flat subject to a maximum of Rs.10.00 lakh.
75% of the cost of purchase of plot subject to a maximum of Rs.25.00 lakh. Plot on standalone basis should not be financed. Cost of the plot should not exceed 50% of the total cost of housing unit.
4 Margin
Loan up to Rs. 25 lakhs- 10% Loan above Rs. 25 lakhs- 25%
5 Security
Equitable/Registered mortgage of the property being financed. Where mortgage of the property being financed is not possible, for instance, in case of purchase of house/flat on first power of attorney, other tangible securities such as mortgage of some other property, pledge of bank's FDR/ LIC policy/Govt. Securities, NSCs, KVPs, IVPs, Bonds, etc. equal to 125% of the loan amount may be taken as security.
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6 Guarantee
Condition of Guarantee is waived for salaried individuals irrespective of loan amount. In case of self-employed /others for loans up to Rs.20.00 lakh, no guarantee is required. However, wife, husband, father, mother, sister, brother may be taken as coapplicant instead of insisting for guarantor for loans above Rs.20.00 lakh to self-employed/others.
7 Repayment a)
For construction/acquiring of new or existing house/flat not older
than 10 years, maximum period of 25 years or on borrower reaching the age of 70 years whichever is earlier. b) For purchase of house/flats older than 10 years, maximum period of
20 years or on reaching the age of 65 years whichever is earlier. c) In the case of new construction, installments will start after 18
months from the date of first disbursement or 6 months, after the date of completion whichever is earlier. In other cases, installments will start from second month of disbursement. In case of extension of existing house / flat, repairs/ renovation / alteration of existing house / flat repayment should be made within a maximum period of 10 years. The installment will start from the second month of disbursement. 8 Rate of Interest Rate of Interest on Housing Loan is as under (Festive Season offer till 31.03.2012): Loan upto Rs.30 Above Rs.30 Loan above Rs. 75 lakh lakh lakhs upto Rs.75 lakh Tenure Floating Floating Up to 5 years BR+0 =10.75% BR+0.25=11.00 BR+0.75=11.50% % Over 5 yrs and BR+0 =10.75% BR+0.25=11.00 BR+0.75=11.50% less than 10 yrs % 10 years and BR+0.25=11.00 BR+0.75=11.50 BR+1.00=11.75% above % % Complete waiver of processing charges during Festive Offer Season till 31.03.2012. No prepayment charges in case of floating rate housing loans.In case of fixed rate housing loans no prepayment charges in case borrower repays entire loan amount out of his/her own sources and 1% of outstanding amount if account is taken over by other Bank/FIs.
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9 Processing Charges Prepayment 10

Charges

11 Take over Take over of loan from other Bank/FI is allowed on certain terms and conditions of loan
12 Net Take For borrowers with annual income upto Rs.5.00 lakh, the Net Take Home Home Pay Pay/Income should not be less than 35% of Gross Monthly Salary/Income after including the income of the co-borrower/s. This can be relaxed up to 30% for borrowers with annual income above Rs.5.00 lakh but upto Rs.10.00 lakh and 25% for borrowers with annual income above Rs.10.00 lakh.
Purpose
Refurbishment / renovation /furnishing of house or buying furniture /LCD TV/ Home theatre etc.
Eligibility
Existing Borrowers under Direct Housing Finance Scheme having completed minimum 3 (three) years of repayment schedule without any default. In case Housing loan is in Joint Name, Both the Joint borrowers should join as borrower for the loan or consent / no objection for extending charge of house property created out of Housing loan should be obtained.
3 4
Quantum of Loan Margin
Maximum of Rs.10.00 lakhs 25% on the Present Market value of the property for aggregate loan up to Rs.30 lakhs including the proposed limit under this scheme. 35% on the Present Market value of the property for aggregate loan above Rs.30 lakhs including the proposed limit under this scheme
Security
Extension of mortgage on the House property for which Housing Loan was sanctioned
6 7
Repayment Rate of Interest & Processing Charges
The loan has to be repaid in 120 equal monthly installments Rate of Interest as applicable to Bank's Existing Housing Loan Scheme in case of renovation.
The rate of interest will be 1% more than the rate of existing


housing loan in case of refurbishment , buying of furniture, television, home theater etc
II) Central Home Loan Plus
5.3 Shri Keshav Urban Credit Co-operative Society Shegaon Reg. No 955/94 :The Keshav urban Credit it is non-nationalized bank when bank offering the Home loan schemes. In shegaon there are number of people are working one the there own business for that purpose Keshav urban play a very vital role in home loan schemes. A. Home Loan Interest Rate:In the Keshav urban bank the home loan rate of Interest is compare to the nationalized bank is much more also the other co-opp bank but the condition is bank in home loan is sanctioned very few days with in weak and needy people give there loan and people money are want in there need time this is the most important. Rate of Interest:Interest rate for loan Above Rs. 05 lakh and upto Rs.10 lakh Term Loan 15 % per annum 15.25 % per annum 1.75 % higher than the base rate, presently rate in force being 15.75 % per annum
Loan Amount Facility type Interest for 1st year Interest for 2nd & 3rd year Interest for 4th year on wards No fixed rate option
B. Home loan schemes:In Keshav urban only 2 home loan schemes are sanctioned:a) Home improvement loan. b) Land purchase loan. a) Home improvement loan.i) Keshav urban bank provides Home improvement loan facility to make those much needed improvement to applicant house. Be it that paint job for the exteriors, a new style flooring for the bathroom, or even a new look to applicant kitchen, Keshav urban

home improvement loan will facilitate applicant plans with comfortable re-payment options. Applicant can avail of this loan even if applicants are an existing customer of Keshav urban. ii) Keshav urban home improvement loan will provide applicant loans to finance any improvement that will increases the value of applicant home, contribute to a better living environment and improvements that applicant could undertake with keshav urban home improvement loan. External repairs, waterproofing and roofing ,internal and external painting ,plumbing and electrical work ,tilling and flooring , grills and aluminum windows, waterproofing on terrace ,construction of underground /overhead water tank, paving of compound wall ( with stone /tile/etc)., Borewell. iii) Home improvement loan either individually or jointly. All the owner of the
property for which the improvement loan is being sought, will have to be coapplicant. However, the co-applicants need not be co-owners. iv) If applicants are an existing client of keshav urban, applicant ca finance the entire cost of improvement of the property already financed by Keshav urban. v) Applicant can avail 100% finance even for improvement to rented properties. However, this is subject to providing as security an extension of the mortgage of the property already created in favor of keshav urban. vi) New customers can borrow upto 60% of the cost of improvement keshav urban lends upto a maximum 10 lakh on a home improvement loan to applicant. Applicant can repay the loan over a maximum period of 5 year. vii) Keshav urban will determine the loan amount after evaluating applicant repayment capacity. Keshav urban main concern is to be help applicant comfortably repay the borrowed amount. b) Land Purchase loan:i) Keshav urban land purchase loan is a convenient loan facility to purchase applicant land. Be it the land for applicant dream house, or just an investment for the future, the keshav urban land purchase loan will facilitate applicant plans with the loan applicant need. Above all, the keshav urban land purchase loan comes gives applicant a comfortable re-payment options. ii) The terms of keshav urban land purchase loans offers applicant various unique benefits and are easy to arrange and repayable in easy monthly installment the loan can be structured according to applicant unique requirement.

iii) Land purchase loan can be applied for by either individually or jointly. iv) Proposed owner of the property, in respect of which the loan is being sought, will have to be co-applicants; however, the co-applicants need not be co-owner. v) Loans can be availed upto a maximum of 60% of the cost of the land (condition apply).Keshav urban lends upto a maximum of Rs.10 lakh on a land purchase loan to an individual. vi) Applicant can repay the loan over a maximum period of 10 years. Keshav urban will determine the loan amount after evaluating the repayment capacity of the individual. Keshav urban main concern is to help individuals comfortably repay the borrowed amount.
Documentation under schemes:For New customer:A. Common for all applicants:1) Allotment letter of the co-operative society/association of apartment owners 2) Copy of approved drawing of proposed construction /renovation. 3) Detailed cost estimate from architect /engineer for the property to be constructed / renovated. 4) If applicants have been in applicant present employment /business or profession for less than a year, mention details of occupation for previous 5 year, giving position held reasons for change and period of the same. 5) Applicable processing fees. 6) Any other information regarding applicant repayment capacity that is necessary and will assist Keshav urban in appraising the case. B. If once is employed:1) Latest salary slip/salary certificate showing all deductions. 2) If applicant job is transferable, permanent address where correspondence relating to the application can be mailed. 3) A letter from applicant employer agreeing to deduct the monthly installment towards repayment of the loan from applicant salary. This will expedite the processing of applicant loan application.
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C. If once is self-employed:1) Balance sheets and profit & loss accounts of the business / profession along with copies of individual Income tax returns for the last three years certified by a chartered accountant. 2) A note giving information on the nature of applicant business/profession, form of organization, clients, suppliers, etc. D . For existing Customers:1) Detailed cost estimate from architect /engineer for the property to be constructed /renovated. 2) Applicable Processing fees. 3) Any other information regarding applicant repayment capacity that is necessary and will assist keshav urban in appraising the case. Security Purpose:a)Home improvement loan :For an existing customer of Keshav urban, security for the loan is an extension of the mortgage already created on the property financed and /or other security as may be required by keshav urban. For other, security for the loan is an mortgage on the entire property being improved and /or other security as may be required by keshav urban bank. b) Land purchase loan:Security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and /or such other collateral security as may be necessary. 5.4 The Shegaon urban Credit Co-operative society Shegaon:The Shegaon urban Credit it is non-nationalized bank when bank offering the Home loan schemes. In shegaon there are number of people are working one the there own business for that purpose Shegaon urban play a very vital role in home loan schemes.
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A. Home Loan Interest Rate:In the Shegaon urban bank the home loan rate of Interest is compare to the nationalized bank is much more also the other co-opp bank but the condition is bank in home loan is sanctioned very few days with in weak and needy people give there loan and people money are want in there need time this is the most important. Rate of Interest:Loan Amount Facility type Interest for 1st year Interest for 2nd & 3rd year Interest for 4th year on wards No fixed rate option Interest rate for loan Above Rs. 05 lakh and upto Rs.10 lakh Term Loan 16 % per annum 16.25 % per annum 1.75 % higher than the base rate, presently rate in force being 17.25 % per annum
B. Home loan schemes:In shegaon urban only 2 home loan schmes are sanctioned:a) Home construction loan. b) Land purchase loan. a) Home construction Loan:Purpose:- The bank gives the home loan for the purpose of 1 2 Purpose Eligibility construction loan schemes
a) Individual salaried employees, self-employed persons, professional, any other person having a legal, identified and regular source of income. b) In case of salaried individuals, applicants must submit original salary certificate/Form 16/income tax return.
3 4
Quantum of Loan Margin
Maximum of Rs.10.00 lakhs 25% on the Present Market value of the property for aggregate loan up to Rs.30 lakhs including the proposed limit under this scheme.
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5 Security Extension of mortgage on the House property for which Housing Loan was sanctioned 6 7 Repayment Rate of Interest & Processing Charges The loan has to be repaid in 120 equal monthly installments Rate of Interest as applicable to Bank's Existing Housing Loan Scheme in case of renovation. Current rate of interest is 16% .
b) Land Purchase Loan:1 2 Purpose Eligibility Purchase of land a) Individual salaried employees, self-employed persons, professional, any other person having a legal, identified and regular source of income. b) In case of salaried individuals, applicants must submit original salary certificate/Form 16/income tax return. 3 4 Quantum of Loan Margin Maximum of Rs.10.00 lakhs 25% on the Present Market value of the property for aggregate loan up to Rs.30 lakhs including the proposed limit under this scheme. 5 Security Extension of mortgage on the House property for which Housing Loan was sanctioned. Engineer housing diagram map. Bank to be deposited cheques for the future purpose. 6 Repayment The loan has to be repaid in 120 equal monthly installments. When some customer is farmer so it directly paid in every 6 month installment. 7 Rate of Interest & Processing Charges Legal action Bank offering the 16% in current year ,after the loan rate of interest is depend on proceeding fees paid in EMI. When EMI are not paid in due date after that bank gives the 2 to 3 notice after that bank take according to the act bank file the case on that borrower of loan.
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Documentation:- For both of the home loan schemes 1) Income Proof:1) Salary slips for the last three months. 2) Salary Certificate. 3) Last three years Income Tax Returns 2) Employment Proof:3) Age Proof:1) Identity card issued by your employer. 1) Passport 2) Voters ID card 3) PAN card
4) Ration card 5) Employers Identity card
4. Residence Proof
1) Ration card. 2) PAN card 4) Rent agreement, if you are staying currently on rent. 5) Bank pass book.
5) Investment Proof
1) Bank statement for the last six months 2)Banks stmt for the last six months of all current a/c,
6) Property Proof
1) Original sale agreement with builder 2) Land documents indicating ownership , e.g photocopies of title deeds ,if applicable. 3)A certificate from builder s chartered accountant 4) Copies of receipts of payments made to builder or developer.
5.5 The Shegaon Agrasen Credit Co-operative society Shegaon Reg.No 104 A. Home Loan Interest Rate:In The Shegaon Agrasen credit co-opp society In the most loan pattern is when the number of borrower are the businessman in there own business is will say in history the most of the people belonging to the caste of agrasen so the relation should be maintained in that organization. And there rate of interest are much higher than the nationalized bank or some credit society.
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Rate of Interest:Interest rate for loan Above Rs. 01 lakh and upto Rs.10 lakh Term Loan 16 % per annum 16.25 % per annum 1.75 % higher than the base rate, presently rate in force being 16.75 % per annum
Loan Amount Facility type Interest for 1st year Interest for 2nd & 3rd year Interest for 4th year on wards No fixed rate option
B. Home loan schemes under the The Shegaon Agrasen Credit co-opp society there are the 2schemes is followed a) Home extension loan. b) Short term Bridging loan (STBL):a) Home extension loan:1) The Shegaon Agrasen Credit co-opp society is a convenient loan facility to extend or add space to applicant house. Be it an additional room on the same floor or the terrace, a larger bathroom, or even enclosing an open balcony, the home extension loan will facilitate applicant home extension plans with appropriate loans and comfortable re-payment options. Home extension loans are quick to arrange and repayable in easy monthly installments. Applicant can avail of this loan even if applicants are an existing customer of The Shegaon Agrasen Credit co-opp society Shegaon. 2) The Shegaon Agrasen Credit co-opp society Shegaon Home extension loan offers applicant various unique benefits and are easy to arrange and repayable in easy monthly installments . The terms of the loan can be structured according to applicant unique requirements. 3) Home extension loan can be applied for by either individually or jointly. Proposed owners of the property, in respect of which the loan is being sought, will have to be co-applicants; however, the applicant need not be co-owners. 4) Loan can be availed upto a maximum of 60% of the cost of the Home extension. Shegaon Agrasen society lends upto a maximum of Rs.10 lakh on a Home extension loan to an individual can repay the loan. Over a maximum period of 20 year. We will determine the loan amount after evaluating the repayment capacity of the individual.

Comfortably repay the Shegaon Agrasen Credit co-opp society main concern is to help individuals comfortably repay the borrowed amount. b) Short Term Bridging loan (STBL):1) The short-term bridging loan will help applicant in the interim period between the sale of applicant old house and the purchase of a new house. Applicant can avail of this loan even if applicants are an existing customer of Shegaon Agrasen society 2) Short-term bridging loans are easy to arrange and repayable in either lump sum payment of principal or installments. 3) Shegaon Agrasen society STBL offers applicant various unique benefits and are easy to arrange and repayable in easy monthly installment. The terms of the loan can be structured according to applicant unique requirements. 4) STBL can be applied for by either individually or jointly. Proposed owner of the property, in respect of which the loan is being sought, will have to be co-applicants. Moreover, owners of the existing property will also have to be co-applicants. However, the co-applicants need not be co-owners. 5) Loans can be availed upto a maximum of 65% of the value of applicant existing home. Shegaon Agrasen society lends upto a maximum of Rs 10 lakh STBL to an individual. Applicant can repay the loan over a maximum period of 2 years. Documentation:a) Home extension loan:Employment /Residence a) Photocopies of employment contract. document b) Latest salary slip c) Latest work permit d) Identity card issued by current employers. e) Overseas bank a/c stmt of the last 4 month.. Property document Related a) Allotment letter from the co-operative society. b) Copy of approved drawings of proposed construction. Details cost estimate from architect /engg for the property to be extended.
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b) Short- term bridging loan:a) Allotment letter of the co-operative society. b) Copy of approved drawings of proposed construction / purchase. c) Agreement for sale /sale deed/detailed cost estimate from architect /engineer for the property to be purchased / constructed. d) Irrevocable power of attorney authorizing Shegaon Agrasen society to sell applicant existing home. e) Documentary proof of insurance cover on both existing and proposed properties. f) If applicants have been in applicant present employment /business or profession for less than a year, mention details of occupation for previous 5 year, giving position held reasons for change and period of the same. g) Applicable processing fees.
5.6 Buldana urban Co-operative credit society ltd. Buldana in Shegaon:A. Home Loan Interest Rate:In Buldana urban co-opp credit society ltd. Buldana in shegaon In the Buldana urban credit society in that under there are number of cases in there other branches In Shegaon branch all the schemes are present but people are not take there advantage there rate of interest is nationalize bank much more but in the comparison of other credit society is lower and most beneficial. Rate of Interest:Loan Amount Facility type Interest for 1st year Interest for 2nd & 3rd year Interest for 4th year on wards No fixed rate option B. Home loan schemes:In Buldana urban in the field of home loan schemes so there is 3 types a) Home Equity Loans b) Bridge loans c) Mortgage Loans
Interest rate for loan Above Rs. 01 lakh and upto Rs.15 lakh Term Loan 14 % per annum 14.25 % per annum 1.75 % higher than the base rate, presently rate in force being 14.75 % per annum

a) Home Equity Loans:Home equity loans helps customer to encash the market value of the commodity by taking a loan by mortgaging the property. So, Home equity loans are availed by customers, who wish to mortgage his/her property to the bank for taking some loan for some other purpose. Then, it's up to the bank's discretion to consider the market value of the property and accordingly decide how much to pay to the customer. Both the residential as well as non residential property can be considered for the approval of the loan, provided the mortgager is a licensed title holder and the land is free form any kind of dispute. Home equity loans don't restrict one to use the loan money in specific investments. It might also be used in marriage, higher education, medical expenses, etc. However it should not be used in any illegal or speculation purposes. Conditions of Home Equity Loans:
Applicants: An individual or someone with joint account can apply for the Home equity loans. However the co-applicants need not be co owners of the property.
Amount of Loan: About 60-65% of the actual value of the property can be had had from the bank in the form of loan, which may go as higher as 10-lacs for commercial and residential property and it's repayment period may range from 10 to 15 years, depending on individual bank policies.
Types of Interest: The rate of interest in the Home equity loans can both be fixed as well as fluctuating, according to the requirement of the customer.
Home Equity Loans Application: Nowadays an individual, a professional or a company can apply for home equity loan by filling in the application form available in as online forms for customer convenience. There is certain information that one must furnish in order to qualify to approval of home loan. Documents Required by Banks for the approval of Home Equity loans: Salaried customers: 1. Application form with photograph 2. Identification and Residence proof 3. Latest salary slips 4. Form16

5. Last 6 months bank's statement 6. Processing fee cheque. Businessman/ Self employed professional: 1. Application form with photograph 2. Educational qualification 3. Identity and residence proof 4. Proof of business existence with business profile and last three years income tax return 5. Last 3 years income statement and balance sheet. 6. Last 3 month's personal and business bank statements. 7. Processing fee check
b) Bridge loans :Bridge loans are used by customers as an effective vehicle to capitalize on a purchase opportunity. It can be considered as a short term financing scheme which is generally expected to be paid back, within the range of 6-36 months, till the time the borrower gets more permanent and lower cost financing. So, bridge loans, (or swing loans as they are otherwise said) is a short term loan provided by various banks like Bank of India, Citibank, ICICI etc. often used for commercial real estate purchases, retrieve real estate from foreclosure. Types of Bridge Loans There are a couple of types of bridge loans.
The consumer borrows the money to pay off his/her existing mortgage and enough to make his/her desired down payment on the new home. Usually the consumer is not required to make monthly payments on bridge loan but has to make only the monthly mortgage payment on the new home, and when the old home sells the accrued interest and the outstanding balance on the bridge loan is paid back.
The consumer keeps his current mortgage, but borrows against the equity in the
current home and uses that money as the down payment on the new home. Let us illustrate that with an example: Say your new home costs Rs 5000000. You've built up Rs. 1750000 in equity in your current home, which today is worth Rs. 3000000 and has an outstanding mortgage balance of Rs1250000. You want to make a down

payment of Rs1000000 on your new home and you've earmarked Rs500000 in savings to cover part of the cost. A bridge loan would let you borrow against that Rs1750000 in equity to help make up the difference. How Bridge Loans Works? Bridge loan or swing loans pays off the old mortgage and goes toward the down payment on the new home. When the old home gets sold, you pay off the bridge loan and continue paying the traditional mortgage on the new home. Before considering a bridge loan, it is advisable to check with your local realtor to see how long homes in your area and their corresponding price range are sitting on the market. While it's always nice to have the option of a bridge loan, it's always better to wrap up the sale of your existing house or property before you commit to purchase a new c) Mortgage Loans Balance transfer loans are used by customers who wish to mortgage their property on an attractive rate of interest from the banks like Dena Bank, Bank of India, Citibank etc.. The mortgage loan allows the borrower to apply for loan against a fixed asset of his/her.
Eligibility:

Business Men Self Employed Professional Salaried Customers
Maximum Loan: The maximum amount of the loan depends on few factors that include: customer's profile, financial background, repayment capacity, and of course the home loan tenure which takes into calculation the retirement age as well. The repayment is generally done in EMIs. Type of Interest: Floating or Fixed. The mortgage loan is calculated on those two interest types. Interest rates can be reduced as well, for existing clients or in special cases, according to the policies of the bank. Process of Home Extension Loans Application:
Customers can fill online application forms or personally visit the bank for approval of loan. A nominal fee of 1-2% is charged as processing by the banks.

Documents Required by Banks for the approval of Mortgage loans: Salaried customers: 1. Application form with photograph 2. Identification and Residence proof 3. Latest salary slip 4. Form16 5. Last 6 months bank's statement 6. Processing fee cheque. Businessman/ Self employed professional: 1. Application form with photograph 2. Educational qualification 3. Identity and residence proof 4. Proof of business existence with business profile and last three years income tax return 5. Last 3 years income statement and balance sheet. 6. La`st 3 month's personal and business bank statements. 7. Other Mandatory Documents (Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed, Cert. Copy of MOA, AOA & Board resolution.) 8. Processing fee check
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Chapter -6:- Data Analysis and Interpretation:-
6.1 Bank wise Beneficiary of Home loan for 2010-2011
Bank Name
SBI
CBI
Shegaon Urban 7
Keshav Urban 4
Buldana Urban 2
No. of Respondent
500
200
Agrasen Credit Co-opp 5
Total
718
Table No. T 6.1 Bank wise Beneficiary of Home loan for 2010-2011
No. of Respondent
7 200 4 25 SBI CBI Shegaon Urban 500 Keshav Urban Buldana Urban Agrasen Credit Co-opp
Graph No. G 6.1 Bank wise Beneficiary of Home loan for 2010-2011
Interpretation:From the above table and Pie- chart, it is seen maximum respondents are taken Home loan from SBI i.e 500/yr. It is a also seen that the minimum respondents are taken home loan from Buldana urban 2/yr
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6.2 Types of Home loan schemes wise profile of Respondents in particular bank. Bank name SBI CBI Shegaon Urban 0 0 3 Keshav Urban 0 0 2 Buldana Agrasen Per Urban Credit Co-opp 0 0 4 0 0 6 1 1 34
Mortgage Loan Home Extension Loan Home Construction Loan Home Improvement Loan Land purchase Loan % of respondent
2 3 15
2 3 12
13
11
28
12 45
12 40
1 6
1 5
1 2
1 2
28 100
Table No. T 6.2 Types of Home loan schemes wise profile of Respondents in particular bank
16 14 12 12 10 8 6 4 2 0 SBI CBI Shegaon Urban Keshav Urban Buldana Agrasen Urban Credit Coopp 3 2 1 1 Mortgage Loan Home Extension Loan Home Construction Loan Home Improvement Loan Land purchase Loan 15
Bank Name
Graph No.6. 2 Types of Home loan schemes wise profile of Respondents in particular bank Interpretation:In the above table No.6.2 and graph no.6.2 it is find out the maximum people prefer the home loan for the purpose of Home construction loan in SBI bank i.e 15% and minimum no. in Mortgage loan through the buldana and agrasen credit society 0%i.e .
6.3 Criteria wise profile of the of Respondents in each bank Bank Name SBI CBI Shegaon Urban Keshav Urban Buldana Urban Agrasen Coopp Percentage Govt. Servant 30 25 3 2 1 1 62 Salary Employs 10 10 1 2 1 0 24 Business Employs 4 3 1 1 0 1 10 Farmer & Other 1 2 1 0 0 0 4 Percentage 45 40 6 5 2 2 100
Table no. T 6.3 Criteria wise profile of the of Respondents in each bank
Criteria wise profile of the home loan

35 30 % of Respondent 25 20 15 10 5 0 SBI CBI Shegaon Urban Keshav Urban Buldana Agrasen Urban Co-opp 3 2 1 1 Govt. Servant Salary Employs Business Employs Farmer & Other 30 25
Bank Name
Graph No. G 6.3 Criteria wise profile of the of Respondents in each bank Interpretation: From the above table and column chart, it is seen the Maximum no. of respondent towards the home loan is Govt. servant in SBI bank i.e 30% and also seen the Minimum number is farmer respondent 0% in agrasen and buldana Cooperative society.
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6.4 Maximum home loan schemes allowed by banks:
Bank Name No. Schemes
SBI
CBI
Shegaon Urban 5 2
Keshav Urban 2
Buldana Urban 3
10
Table no. T 6.4 Maximum home loan schemes allowed by banks:
No. Schemes
12 10 10 8 6 4 2 2 0 SBI CBI Shegaon Urban Keshav Urban Buldana Urban Agrasen Credit Coopp 2 5 3 2 No. Schemes
Bank Name
Graph No G 6.4 Maximum home loan schemes allowed by banks:
Interpretation:In the above table and graph showing the maximum number of home loan schemes gives by the SBI bank i.e 10 and minimum no. home loan schemes gives Buldana & Agrasen Co-opp society i.e 2.
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6.5 :- Document wise profile of each bank in all home loan schemes:Sr. no 1 Document Name Income Proof Salary Slips for the last 3 mth Salary certificate Last 3mth IT returns Employment Proof ID card issued Visiting card Age Proof Passport Voters ID card PAN card Ration card Employer ID School TC Birth Certificate Residence Proof Ration card Passport PAN card Rent agreement Bank Passbook Investment Proof Bank stmt for last 6 mth Property Proof Original Sale agreement with builder Land Document A certificate of CA Allotment Later Possession Later Copies of receipts of paymentmade by builder Total SBI 24 CBI 15 SBI 24 CBI Sheg Urban Kes Bul Urban Urban Agr Co-opp
15
5 6
10
7 Agrasen Co-opp 7
Bank Name No.Doc
Shegaon ur 10
KeshavUrban Buldana Ur 8 8
Table No. 6.5 Document wise profile of each bank in all home loan schemes:-
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No.Document required
24 25 20 15 10 15
10 Graph No. 6.5 Document wise profile of each bank in all home7loan schemes 8 8
Int
5 0
No.Doc
Graph No.6.5 Document wise profile of each bank in all home loan schemes
Graph No. 6.5 Document wise profile of each bank in all home loan schemes:-
Interpretation:In the above table and graph no 6.5 it is observe that maximum document required by the SBI bank i.e 24 Document and other minimum document required by the Shegaon Agrassen bank i.e 7 Document wise profile of each bank in all home loan schemes
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6.6 Maximum amount sanctioned by each bank Bank Name Max Amount (Lakh) SBI CBI Shegaon Urban 15 Keshav Urban 15 Buldana Urban 10 Agrasen Credit Co-opp 5
30
25
Table no. T 6.6 Maximum amount sanctioned by each bank
Max Amount
10 15
5 30 SBI CBI Shegaon Urban
15
Keshav Urban 25 Buldana Urban Agrasen Credit Co-opp
Graph No G 6.6 Maximum amount sanctioned by each bank
Interpretation:In the above table and graph showing the maximum amount of home loan schemes is sanctioned given by the SBI bank i.e 30 lakh & more and minimum amount also sanctioned by co-operative society bank i.e 1 lakh to 5 lakh..
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6.7 How much % of the loan is sanctioned by the bank.
Bank Name
SBI
CBI
Shegaon Urban 70
Keshav Urban 60
Buldana Urban 50
Percentage 85
75
Table no.T 6.7 How much % of the loan is sanctioned by the bank
Percentage of loan santioned

90 80 70 60 50 40 30 20 10 0 SBI CBI Shegaon Urban Keshav Urban Buldana Urban Agrasen Credit Coopp Percentage 85 75 70 60 50 50
Bank Name
Graph no. G 6.7 How many % is sanctioned by the bank in Home loan schemes.
Interpretation:In the above table and graph is shown that the maximum % home loan is sanctioned by SBI bank i.e 85% and minimum % home loan sanctioned by buldana and shegaon agrasen bank i.e 50%
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6.8 The duration required to sanction loan (in days) Bank Name SBI CBI Shegaon Urban Keshav Urban Buldana Urban Agrasen Co-opp Land purchase 30 20 15 13 12 10 Home Improvement 25 20 15 15 10 10 Home construction 45 30 20 15 15 10 Home extension 30 30 20 20 15 15
Table No.6.8 The duration required to sanction loan (in days)

50 45 40 35 30 25 20 15 10 5 0 SBI CBI Shegaon Urban Keshav Urban Buldana Urban Agrasen Co-opp 20 15 15 10 Land purchase Home Improvement Home construction Home extension 30
45
Sanctioned duration of time
Bank Name
Graph No. 6.8 The duration required to sanction loan (in days)
Interpretation:In the above table and graph it is found that when sanctioning the home loan SBI bank taking more time for home loan sanctioned to the respondent, whenever the co-operative credit bank are sanctioned the home loan in with in a few days are sanctioned the home loan schemes.
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6.9 Most demanded schemes in home loan: Bank name Scheme Mortgage Loan Home Extension Loan Home Construction Loan Home Improvement Loan Land purchase Loan SBI CBI Shegaon Urban 0 0 3 Keshav Urban 0 0 2 Buldana Agrasen Total Urban Credit Co-opp 0 0 4 0 0 6 1 1 34
2 3 15
2 3 12
13
11
28
12
12
28
Table No. 6.9 most demanded schemes in home loan
35 30 25 20 15 10 5 0
Bank gives the maximum response
Mortgage Loan
Graph No.6.9 to maximum response
Home Home Extension all the banks which Loan Construction comparison of Loan
Home Land purchase Improvement Home loan schemes Loan the gives Loan
Home loan Schemes
Interpretation:- In the above table and graph no.6.9 it is found that the maximum response in home construction purpose and people also prefer the home loan construction purpose in a all other home loan schemes as camparison.
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6.10 Bank wise Rate of Interest on home loan:
Bank Name Rate of Interest
SBI
CBI
Shegaon Urban 13
Keshav Urban 16
Buldana Urban 14
10.75
11
Table no. T 6.10 Bank wise Rate of Interest on home loan
Rate of Interest
18 16 14 12 10 8 6 4 2 0 SBI CBI Shegaon Urban Keshav Urban Buldana Urban Agrasen Credit Coopp
Rate of Interest
Bank Name
Graph no.6.10 Bank wise Rate of Interest on home loan Interpretation:In the above table and graph it is observe that SBI & SBI are minimum rate of interest i.e 10.75% and CBI are 11% when the other are Keshav and shegaon agrasen bank rate of interest is 16%
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6.11:- Repayment period of Home loan schemes from the respondent taken by the each bank. Bank Name SBI CBI Shegaon Urban Keshav Urban Buldana Urban Agrasen Co-opp 5 yr 3 3 2 2 1 1 5-10yr 10 8 5 4 3 3 10-15 yr 15 12 10 8 8 6 15-20 yr 2 1 1 2 1 0
Table No. 6.11 Repayment period of Home loan schemes from the respondent taken by the each bank.
Repayment of Home loan period

16 14 12 No. of year 10 8 6 4 2 0 SBI CBI Shegaon Urban Keshav Urban Buldana Urban Agrasen Coopp 15 12 10 8 8 6 5 yr 5-10yr 10-15 yr 15-20 yr
Bank Name
Graph No. 6.11 Repayment period of Home loan schemes from the respondent taken by the each bank Interpretation:In the above table and graph no. 6.11 it is find that the maximum repayment period 10-15 yr in 15 respondents by the SBI bank and minimum repayment period in between 15-20 yr by the entire bank.
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CHAPTER- 7 CONCLUSSIONS 1) SBI is a most leading bank in home loan.CBI has also got good response in shegaon city. 2) Government servant, self employed prefer a nationalized bank i.e SBI & CBI for home loan. On the other hand farmer and some businessman prefer the loan from credit Co-operative bank. 3) It is also found that the numbers of Home loan schemes given by the SBI bank are maximum. 4) It is found that the maximum number of bank is providing the home loan schemes to the people for the purpose of Home construction loan. 5) On the basis of rate of Interest, all bank are having there own different rate of inertest generally the nationalize bank are having the minimum rate of interest on a home loan but they are taking lot of time taken for sanctioning the home loan. i.e SBI charged the interest 10.75% and other co-opp &urban bank are charging 15 or 16% of rate of interest 6) It is also found that the sanctioned amount of home loan is depend on there bank, generally in nationalize bank the amount sanctioned is 80% against the property agreement. On other side co-operative credit society bank & urban bank are sanctioning only 50%-60% of the total amount. 7) In urgent cases of home loan people gives more preference to credit bank society and urban bank because of there minimum documents are demanded. The time required to sanction the loan is also minimum in these banks.
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CHAPTER- 8 Suggestions
1) As there are minimum numbers of respondents of urban & credit bank. They should build their good will in the mind of respondents. They should come in market with good home loan schemes.
2) SBI & CBI banks should attract the youngster towards the most profitable product in home loan.
3) Credit bank &urban bank should encourage more respondents towards home loan.
4) All bank should be encourage the self employed professional.
5) Credit bank and urban bank should encourage the respondent with low & high income group.
6) Credit bank and urban bank encouraged for taken different home loan. SBI & CBI should be give specific scheme for home extension loan and home improvement.
7) Credit bank and urban bank should be encouraged to those respondents who wants home loan amount below 200000 & above 500000.
8) Credit bank and urban bank should give new schemes in low interest rate. It can also take care of sanctioning more amount.
9) Looking for the growing competition and computerization all these institutions should minimize paper work and reduce complexity in the procedure of sanctioned loan.
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BIBLIOGRAPHY:Books refferd: Jeevanandam C. (1992) Management of Bank Advances 4th Edition, Published by Sultan Chand & Sons, New Delhi, May 1992 H.R.Suneja, Merchant Banking, By the published of Himalaya Publication.
Web sites: www.sbi.co.in www.apnapaisa.co.in www.apnaloan.com www.cbi.co.in www.homeloanhub.com www.buldanaurban.co.in
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A Comparative Study of Home Loan Finance Facilities in Shegaon Annexure Questionnaire

Dear sir/madam, I am conducting this survey as a part of dissertation work in my MBA program from SGBA University. The purpose of this survey is to study the Comparative study of Home loan finance facility in Shegaon . So I will be grateful if you could spend some of yours precious time in filling up this Mr.Gajanan Sonone MBA (Final Year) 1) Name of Bank :-_________________________________________ 2) Bank Type :- a) Nationalize Bank b) Non-Nationalize Bank b) No
3) Bank gives the home loan scheme? a) Yes 4) Which home loan schemes gives by bank? a) Home improvement Loan c) Home construction Loan e) Any other
b) Bridge Loan d) Land Purchase Loan
5) Particular home loan schemes which is the maximum amount is sanctioned a) 1 to 5 lakh c) 10to 30 lakh b) 5 to 10 lakh d) more than 30 lakh
6) How many % loans is sanctioned by the bank? a) 80 % b) 85% c)90% d) 100% e) Any .
7) Bank Rate of Interest on loan upto 30 lakh ? a) 10.75% b) 10.80% c)11% d) 11.75 % e) any .
8) Eligible criteria for Bank offering Loan ? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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9) Which Document required by the bank? Sr.no Document Name 1 Income Proof a)Salary Slips for the last 3 mth b)Salary certificate c)Last 3mth IT returns Employment Proof a)ID card issued b)Visiting card Age Proof a)Passport b)Voters ID card c)PAN card d)Ration card e)Employer ID f)School TC g)Birth Certificate Residence Proof a) Ration card b) Passport c) PAN card d) Rent agreement e) Bank Passbook Investment Proof Bank stmt for last 6 mth Property Proof Original Sale agreement with builder Land Document A certificate of CA Allotment Later Possession Later Copies of receipts of paymentmade by builder
Yes or No
5 6
10) Which pattern of recovery is taken by bank ?

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------11) Number of Respondents for home loan in particular schemes? -----------------12) Bank take a legal action on those people they are paid EMI in particular manner? a) yes b) No
13) Any Comment :--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Page 74

A Comparative Study of Home Loan Finance Facilities in Shegaon

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D.B.A.R., S.S.G.M.C.E., Shegaon