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COMPARATIVE STUDY OF HOME LOANRATES BETWEENSTATE BANK OF INDIA & ICICI BANK
CHAPTER-1
INTRODUCTION
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INTRODUCTION OF TOPIC
1. A "home loan" is a credit to a consumer for the purchase or transformation of the

private immovable property he owns or aims to acquire secured either by a mortgage
on immovable property or by a surety commonly used in a Member State for that
purpose.
2. A home loan requires you to pledge your home as the lender's security for repayment
of your loan. The lender agrees to hold the title or deed to your property until you
have paid back your loan plus interest.
Thus in the simplest terms home loan is the loan taken from any financial institution
for the purchase of newly home by paying interest as agreed during the deal. Thus
the rate of interest depends on the bank as also it differs from banks to banks. Some
banks may charge higher price where as some banks charge low price.
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Home loan type
Owning a piece of land or property is a life time dream for every individual.
There are many home loans provider in the market to make your dream come true.
But before you opt for any home lone provider, you need to consider factory related
to property that your are interested in buying and also but the salient feature
offered by a home lone provider and also study some home loans and home
insurance FAQs which helps in applying a home loan in India.
And the most important thing is you should know about each and every term related
with home loan before applying for alone .It is always advisable to consult a home
loan expert or consultant before applying for a home loan or purchasing a property.
You can take different type of home loans like Bridge loans, Home construction
Loans , Home equity loan , Home extension loan ,Home Improvement loans, land
purchase Loans etc for different schemes available in market .There is different type
of loans tailored to meet your needs.
HOME LOANS
To have one‟s own is the dream of every person. Now that getting a home loan is so
it seems everyone can fulfill his/her long cherished dream. There is different type of
home loan tailored to suit your requirement. These are:
Home Purchase loan: This is the basic home loan for the purchase of a new home.
Home Improvement Loan: These loans are given for implementing repair works
and renovation in home that has already been purchased by you.
Home construction Lone: this loan is available for the construction of a new home.
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Home Extension loan: This is given for expanding or extension home an existing
home for e.g.: addition of extra room etc.
Home conversion Loan: This is available for those who have financed the present
home with a loan and home loan and wish to purchase and move to another home for
which some extra funds are required. Through home conversion loan is transferred to
the new home including the extra amount required, elimination the need of pre –
payment of the previous.
Land Purchase Loan: This loan is available for purchase for land for construction
and investment purposes.
Bridge Loan: Bridge Loan are designed for people who wish to sell the existing
home and purchase another one. The bridge loan help finance the new home, until a
buyer is found for the home.
Balance Transfer Loan: Balance transfer loan help to pay off an existing home loan
and avail the option of a loan with a lower rate of interest.
Refinance Loan: This loan help you pay the debt you have incurred from private
sources such as relatives and friends, for the purchase of your present home.
Stamp duty Loans: This loan is sanctioned to pay the stamp duty amount that needs
to be paid on the purchase of property.
Home loan are available on fixed rate of interest and floating rate of interest. In
fixed rate loan, the interest rate remains fixed over the life of the loan, irrespective of
the interest rate in the open market. The plus point of fixed rate loan is that they
remain steady over the open the years, making at least one aspect of your monthly
cash flow predictable. But the flip side is that the lenders charge a higher rate of
interest for fixed-rate loan because if interest rate shoot up, they lose the opportunity
to make more money on the on the funds they are lending.
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In floating rate loan, the rate of interest changes according to a set formula as
interest rate fluctuates in the open market. The plus point is that lender charges a
lower rate for such loans because you are taking on some of the interest –rate risk.
The downside is that interstate may raise anything and you can end up paying more
than fixed rate loans.
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State Bank of India (SBI) is India‟s largest commercial bank .SBI has a vast
domestic network of over 9000 branches (approximately 14% of all bank branches)
and commands one-fifth of deposit and loan s of all scheduled commercial bank in
India.
The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries offering merchant banking services, fund management,
factoring services, primary dealership in Government securities, credit card and
insurance.
The eight banking subsidiaries are:
1. State Bank of Bikaner and Jaipur(SBBJ)

2. State Bank of Hyderabad(SBH)
3. State Bank of India(SBI)
4. State Bank of Indore(SBIR)
5. State Bank of Mysore(SBM)
6. State Bank of Patiala(SBP)
7. State Bank of Saurashtra(SBS)
8. State Bank of Travancore(SBT)
The origins of State Bank of India date back to1806 when the Bank of Calcutta (later
called the bank of Bengal) was established. In 1921, the bank of Bengal and two
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other Presidency bank (Bank of Madras and Bank of Bombay) were amalgamated to
form the Imperial Bank of India .In 1955, the controlling interest in the Imperial
Bank of India was acquired by the Reserve Bank of India and the State Bank of India
(SBI) came into existence by an act of Parliament as successor to the Imperial Bank
of India.
Today , State Bank of India(SBI) Has spread its arms around the world and has a
network of branches spanning all times zone SBI „s international Banking group
deliveries the full range of cross-border finance solution through its four wings –the
Domestic division ,the Foreign Offices division, the Foreign Department and the
International services division .
BEST POLICIES FOLLOWED BY SBI
1. People dealing with customer

2. Place
3. Price
4. Repayment changes
5. Cost hidden and fine print
6. Transparency
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‘SBI-Home Loans’
Unique features
No cap on maximum loan amount for purchase/ construction of
house/flat
Option to club income of your 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 durable as part
of project cost.
Repayment permitted up to 70 years of age
Free personal accident insurance over
Optional Group Insurance from SBI Life at concessional EMI per
annum (Upfront EMI per annum financed as part of project cost)
Insert applied on daily diminishing balance basic
„Plus schemes‟ which offer attractive packages with concessional
insert rates to Govt. Employees, Teachers, Employees in Public sector
oil companies.
Special scheme to grant loan to finance Earnest Money Deposit 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 recover only if the loan is pre-closed before
half of the original tenure(not recover for bulk payments provided the
loan is not closed)
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Provision for downward refutation of EMI is respect of floating rate

borrowers who avail Housing Loans rs.5 lacks and above, to avail the
benefit of downward revision of insert rate by1% 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 grant under tie-up with Central/State

Government/PSUs/reputed corporate and tie up with reputed builder (Please contact
you nearest branch for details)
Package of exclusive benefits:-
Complimentary international ATM-Debit card

Complimentary SBI classic /International Credit Card with waiver of joining
and first year‟s fees
Option for E-banking
Concession package under „Credit Khazana‟ for prospective car loan
borrowers whose account are conducted satisfactorily
50% concession in charges in respect of all personal EMI rates/collection of
outstation cheques
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Purpose
Purchase /construction of House /Flat

Purchase of an existing House /flat
Purchase of a plot of land for construction of House
Extension /repair /renovation/alteration of existing House /Flat
Purchase of Furnishing and consumer Durable as part of the project cost
Takeover of an existing loan other Bank/Housing Finance Companies
Eligibility
Minimum age 18 years as on the date of sanction
Steady source of income
Loan Amount
Applicant/any one of the applicant are aged over 21 years and up to 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
Application (s) aged over 45 year of age times NMI or 4 times NAI, subject
to aggregate repayment obligations not exceeding 57.50% of NMI/NA
To enhance lone 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 texts, cases , etc.)if the house / flat being
purchased is proposed to be rented out
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Regular income from all sources.
Interest rate with EMI
Introduction
SBI has been awarded “The Most Preferred Home Loan Provider” by AWAAZ
Consumer Awards. SBI home lone give concession on interest rates on GREEN
HOMES under its environment protection program. SBI has different options for
loan borrower such as SBI -Flexi. Home loans provides borrowers one time
irrevocable option to choose one of the three combination of fixed and floating
interest rates and also to choose the order in which the fixed and floating rate
will be availed . The other is „SBI- Maxgain‟ home loans –earn optimal yield on
savings and minimize interest burden on home loans, with no extra cost . „SBI -
Realty‟ Home lone –purchase a plot of land for house construction . „SBI -
freedom‟ Home lone –who want to invest in a property without mortgaging the
same . SBI –optima‟ addition home lone and „SBI-Home line‟ special personal
for existing lone borrows who have a repayment record of 3 years, etc .
Highlight
Interest Rate 8%
Loan Amount Min.- Rs1,00,000 Lakh
Max.-Rs2,00,000,00 Crores.
Tenure Min.-5yrs. Max.-20yrs.
Time to Process Loan 7days
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ICICI Bank is India‟s second-largest bank .the bank has a network of a about 573
branches and extension counter and over 2,000 ATMs, ICICI Bank was original
promoted in1994 by ICICI Bank limited, an India financial institution. And was it
wholly-owned subsidiary.
ICICI Bank was formed in 1955 at the initiative of the World Bank, the Government
of India an representatives of Indian industry .the objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses
In the 1990s, ICICI transformed its business from a development financial

institution offering only project finance to a diversified financial services group
offering a wide variety of products and services, both directly and through a number
of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.IN 2001, ICICI bank
acquired Bank of Madura Limited.
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ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross
border needs of clients and leverage on its domestic banking strengths to offer
products internationally. ICICI Bank currently has subsidiaries in the United
Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative
offices in the United States, China, United Arab EMI rates, Bangladesh and South
Africa.
Today, ICIC Bank offer a wide range of banking product and financial services to
corporate and retail customer through a variety of delivery channel and through its
specialized subsidiaries and affiliates in the area of investment banking , life and
non-life insurance , venture capital and asset management.
Loans:
One of the reasons for boom in Indian economy is that now a day loans are easily
available and the rate of interests at which they are available are very reasonable
.Banks are giving loan for and loan against anything. Government too is encouraging
people to take loans for certain purpose For example; Government is encouraging
people to take housing loans by giving tax concession.
In view of the deluge of loans that are available in the market today, we have come
up with useful information about variety of loans that are available in India. These
include:
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WHAT IS AN EMI
EMI or Equated monthly Installment refers to the fixed sum of money that you will
be paying to the bank every month. The EMI comprise of both interest and principal
repayment. The amount of the EMI depends on the quantum on the loan, interest rate
applicable and the term of the loan
EMI is calculate using the formula
I X r [(1+r) n / (1+r) n-1) X 1/12
WHERE
L=loan amount
R= rate of interest
N=loan tenure
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CHAPTER-2
OBJECTIVES
Page No. 16
OBJECTIVES:-
To carry study of home loan offered by State Bank of India and ICICI bank on basis
of following.
Interest rate
Documents required
eligibility criteria
sanctioning period
To study EMI of both the banks
To study which financial institution is most preferred by the customers while
opting for hone loan.
To determine factor which holds outmost importance for the customer while
deciding on a particular home loan schema.
To give suggestions and recommendations in the matters related to home loan
schemes offered by the bank.
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SCOPE AND SINGNIFICANCE
Geographically the scope of project was restricted to Nagpur the scope of the study
includes banking operation that provides home loan schemes in the geographically
area of Nagpur.
The banking organization are divided into two sectors
1. Nationalized bank
2. Private bank
Two leading bank were considered for the study of home loan schemes
within Nagpur city.
NATIONALISED BANK: - STATE BANK OF INDIA (SBI)
PRIVATE BANK: - INDUSTRIAL CREDIT AND INSURANCE

CORPORATION O9F INDIA (ICICI)
HOME LOAN
Owning a home loan is dream of every person and various bank financial institutions
provides home loans so that they could fulfill their dream.
Housing finance institution general finance up to 75 to 85 % of the asset value
depending upon the institution the home loan may vary from rupees 1 lakh to rupees
1 crores.
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SECURITIES:-
Bank usually takes some addition securities which are called collateral securities.
Collateral could be in the form of guarantee from one or two person, assignment of
life insurance policies, the surrender value of which should be equal to the loan
amount, deposit of shares and units or other securities .These additional securities are
taken just in case a loan is not paid back; recourse may be taken to such securities
instead of depending upon the mortgage the property which is the last resort.
LOAN TENURE:-1 to 25 YEARS
ELIGIBILITY: - On the basis of repayment capacity
OTHER COST: - processing fee repayment penalties, commitment fees,

and miscellaneous cost.
Tax rebate is an amount that reduces the tax to be paid by the full amount of the
rebate. Tax rebates treat all taxpayers equally by giving the same amount of rebate
regardless of income level.
The income tax act of India has a provision of tax rebate for all people home loan
.Accordingly, the maximum limit of this rebate is 1.5 lakh per financial year. The
income tax act of 1961 state that one can gain tax benefit on the principal and
interest components of a loan if she/he borrows it to punches a home. These benefits
have been discussed under Section 24 (b) of the act which assesses who has taken a
loan to buy real estate personal use.
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The insert on browed capital is deductible up to the limit of Rs. 1.5 lakhs per annum
.Howe ever, only that capital which has been borrowed, on or before April 1, 1999,
to construct or acquire a residential property is applicable for the special tax benefit
.These is an additional clause which calls for the completion of acquisition or
condition of the residential of the property within 3 years of borrowing of that loan.
Only if this condition is met, the benefits can be availed. Also ,as specified by the
banks that the insert for home loan are payable on the amount advanced for
acquisition or of the house , or as refinance of the principal amount outstanding
under any previous loan .If these conditions are not met , then insert on borrowed
capital can be deductible up to only Rs.30,000.
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CHAPTER-3
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY:-
RESEARCH:
Generally research I considered as an endeavor to arrive at the answer to intellectual

and practical problem through the application of scientific method to the knowledge
universe .it is a movement from known to unknown.
According to Clifford woody “research comprise defining and redefining problem ,

formatting hypothesis or suggested solution, organizing and evaluating data , making
deduction and reaching conclusion ,and a last carefully testing the conclusion to
determine whether mine they fit the formulating hypothesis.”
METHODS OF DATA COLLECTION
Collection of data refers to a purposive gathering of information relevant to the

subject matter under study and method used depend mainly on the nature, purpose
and scope of enquiry to be undertaken , as well as on the availability resource and
time.
The data collection can be grouped under two types
Primary data
Secondary data
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Primary data:-
Primary data are those which are the first time. They are original in character. They
are collection by the research for the first time for his own use.
The source of primary data includes:
1) Direct personal investment
2) Interview
3) Drafting
4) Indirect method.
5) Indirect Oral investigation.
6) Information received through local agents.
7) Drafting a schedule
DIRECT PERSONAL INVESTIGATION:-
This implies the situation where the researcher goes into the field of study in person
for the collection of required data. Also the investigation of this nature is normally
confirmed to a single locality and information gathered is capital in nature.
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INTERVIEW METHOD:-
Every interview has got its own balance of revelation and has withheld information.
An interview can be effective verbal or non verbal conversation initiated for the
specific purpose and focused on certain planned content areas.
A method of interview consists of Direct Personal Interview requires face to face

contact with the respondent. Other types of interviewing Techniques are structured
and unstructured method. The interview based on pre-determined questioned
standardized technique is called Structured Interview. Here the number and nature of
questioned, order of asking wording of question etc and respond pattern are highly
standardized.
The wording, the order of question etc. can be changed depending on the response
rates.
Telephone interview can be used as follow-up of a mailed questioned and is fairly

used to carry out the actual interview.
QUESTIONNAIRE METHOD;-
Yet another method of data collection is a survey that consists of asking question
instead to cover a cross-section of population. A Questionnaire is generally mailed or
handed to the respondent and filled by him without the help of the interviewer. The
researcher has to ensure the Questionnaire is relevant. It should be relevant both to
study‟s goal. To the individual respondent and relevance to the study. Questionnaire
should not be ambiguous. But generally the questions are kept simple enough.
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Questionnaire‟s can group into open or closed response categories. Closed ended
question have standard answer that can help answer that are easy to code and analyze
and something‟s this can be done right questionnaire, thereby saving time and
money. It helps respondents to be sure and clear about meaning of the question.
Closed questionnaire‟s answers are one relatively complete with minimum of
irreverent responses. Also in a closed ended question the respondent finds it easy to
answer since he/she has to merely choose a category that suits his/her knowledge of
the question. Open –ended question can be used when all the possible answer
categories are not known or where the investigators wish to known the respondents
opinion. The respondent is expected to answer adequately, in detail or to
clarify/qualify an answer. There are too many potential answer categories when
Answering complex issues that are difficult to compress into a few categories and, to
allow more opportunity for creativity or self-expression that part of the respondents.
OBSERVATION METHOD:-
The methods of observation primarily help to collect data on non-verbal which

commonly involve sight or visual data. There are two main types of observation and
these are participant in the activities being observed. While he/she is a regular
participant other do not his/her role. On the other hand a non- participant does not
pretend to become a member.
Direct observation can be in a structured measurement instrument. Unstructured

form of observation also takes place in a natural setting and does not quantify data.
Structured observation also takes place in a laboratory rather than in a meeting.
Indirect observation, unlike direct observation, does not require person directly. In
this case behavior is observation only after it has already occurred and the researcher
has no way to learn the identification of persons involved.
SECONDARY DATA:-
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Secondary data are those which have already been collected by others. When it is not
possible to collect data in primary from, the researcher may take the help of
Secondary data they are those which have already been collected with some other
view in mind. They are collected for serving the objects other then what the
researcher might have in his mind.
The source of secondary data includes:
1) Books
2) Websites
3) Journals
4) Magazines
BOOKS:-
A Book is a collection of paper or other material with text, picture, or both written on
them, bound together along one edge, usually with cover. In library and information
science, o book is called a monograph to distinguish it from serial periodicals such as
magazines, journals or newspaper.
WEBSITES:-
A website may be the work of an individual, a business or other organization and is

typical delicate to some particular topic or purpose. Any website can contain
hyperlink to any other website, so the distinction between individual sites , as
presided by the user ,may sometime be blurred Website are written in ,or
dynamically converted to HTML and are accessed using a software program called a
web browser also known as an HTTP Clint
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JOURNALS:-
Many publications issued at stated intervals, such as magazines or he record of the

transaction of a society, are often called Journals. In academic use, a Journals Refers
to serious, scholarship publication most often peer-reviewed. Anon-scholarly
magazines written for an educate audience about a industry or an area of professional
Journals. The purpose of Journals is to provide a place for the introduction and
security of a new research, and often a forum for the critique of existing research.
MAGAZINES:-
A Magazines is a periodical publication containing of article ,generally financed by

advertising by reader ,or both .in practical ,magazines are a subset of periodicals ,
distinct from those periodical produced by scientific, artistic , academic are special
insert publisher.
DATA COLLECTION METHODS USED FOR PROJECT WORK:
The data to choose secondary data and collect information from various sources like
books magazines, journal, and internet. I have to search financial statement and
annual statement of the company from yahoo.com and other information related to
company from google.com and also we have to collect other information from
books. Historical back grounds of the company is taken from internet and finally
collects information from various sources and make appropriate data which I have to
use in project.
The secondary data was also collected by referring to the following:-
Websites of yahoo-www.yahoo.com
Websites of Google- www.google.com
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CHAPTER -4
DATA ANALYSIS AND
INTERPRETATION
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Details of ICICI Home Loan. Use our calculator to compare offers from
multiple banks
Interest Rate (Monthly reducing balance)

8.25% fixed till March 2011
9.25% fixed from April 2011 to March 2012
From April 2012, 9% floating for loans up to 30 lakhs. 9.25% floating for loans over
30 lakhs
Base Rate is currently 7.5%
Processing Fees Higher of 0.5% of loan amount or Rs. 2,000

Loan Tenure 1 year to 20 years
Amount Funded Up to 80% of property value
Partial Pre-payment Charges Nil
Pre-closure Charges 2% of pre-closed amount including amount
pre-paid in prior one year.
Guarantor Requirement No guarantor required.
Documents
1. Identity proof
Voter card
Driving license
Indian Passport and a photograph.
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2. Residence Proof
Ration card
latest electricity bill
telephone bill
credit card bill
3. Last 6 months bank statements

4. Processing fee cheque
5. Form 16 and Latest Salary (Only for Salaried)
6. Last 3 years Profit /Loss Balance Sheet, IT returns and educational
qualification certificates (Only for Self Employed.
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Recently made loan offers

Rs.29.70 lakhs for Rs.25, 306 EMI 8.25% Rate 20 years Tenure
Total Interest Payable Rs. 34, 33,576
Total Tax + Fees Rs. 11,030
Total Interest + Fees Rs. 34, 44,606
Rs.28.50 lakhs for Rs.24,284 EMI 8.25% Rate 20 years Tenure
Total Interest Payable Rs. 32,94,846
Total Interest + Fees Rs. 33, 05,876
Rs.38.10 lakhs for Rs.32,464 EMI 8.25% Rate 20 years Tenure
Total Interest Payable Rs. 45,32,410
Total Interest + Fees Rs. 45,43,440
ICICI Home Loan 8.25% fixed till Mar 2011. 9.25% fixed from Apr 2011 to
Mar 2012. 9% to 9.25% floating afterwards monthly reducing Base rate
- 7.5%
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Page No. 33
(Interest Rate (Monthly reducing balance)
SBI Home Loan 8% fixed for year
1. 9% fixed for year 2 & 3.
9.25% to 9.75% floating afterwards daily reducing
Base rate is - 7.5%
SBI
Eligibility
1. Minimum age 18 years as on the date of sanction

2. Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the
age by which the loan should be fully repaid.
Availability of sufficient, regular and continuous source of income for servicing the
loan repayment.
Loan Amount
• 40 to 60 times of NMI, depending on repayment capacity as % of NMI as under –
Net Annual Income EMI/NMI Ratio
Upto Rs.2 lacs 40%
Above Rs.2 lac to Rs. 5 lac 50%
Above Rs. 5 lacs 55%
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Pre-closure Penalty
No penalty if the loan is reclosed from own savings/windfall gains for which
documentary evidence is produced by the customer.
In case, such proof is not produced by the borrower, penalty @2% on the amount
prepaid in excess of normal EMI dues shall be levied if the loan is precluded within
3 years from the date of commencement of repayment.
Maximum Repayment Period
• For applicants up to 45 years of age: 20 years
• For applicants over 45 years of age: 15 years
Documents
1. Completed application form

2. Passport size photograph
3. Proof of Identity
 PAN Card
 Voters ID
 Passport
 Driving License
4. Proof of Residence
 Recent Telephone Bill
 Electricity Bill
 Property tax receipt
 Passport
 Voters ID
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5. Proof of business address in respect of businessmen/ industrialists

6. Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance
certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to
satisfaction report from our empanelled lawyer)
7. Copy of approved plan and approval from the Local Body
8. Statement of Bank Account/ Pass Book for last 6 months.
Loan Feature
Loan Amount 80% of the cost of the property

Interest Rate N.A.
Tenure Maximum 20 years
Pre Payment Charges 2% on the principal outstanding
Service Charges 0.5% - 1%
Eligibility Criteria : Home Loan
Salaried Self
Age Minimum 21 Minimum 21
Income Income criteria not provided Income criteria not provided
Job Experience Job experience not provided Job experience not provided
Residence Residence proof not provided Residence proof not provided
Proof
Docs Required : Home Loan
Salaried Self
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ID Proof Passport/PAN card Passport/PAN card

Address Proof Electricity bill/telephone bill Electricity bill/telephone bill
DOB Proof 10th class certificate/certificate 10th class certificate/certificate
of birth of birth
Financial Docs Last 3 months Salary Income Tax Return /
Slip Computation of Total
Form 16 Income / Auditors
Bank Statement for last Report / Balance Sheet /
6 months from Salary Profit & Loss Account
Account certified by Chartered
Repayment Track Accountant for last 2
record of existing loans years (3 years for Home
/ Loan closure letter Equity) (both for
business and personal
of partners/directors)
Bank Statement for last
6 month from operating
account
Repayment Track
record of existing loans
/ Loan closure letter
Board Resolution in
case of a company
Proof of existence
Office Address Proof
Photo Identity Proof,
Residence Address
Proof, Signature
Verification is required
to be provided for all
the main partners /
directors.
Home Loan Rate of interest of SBI Bank
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Rate of interest 8% - 10%
Prepayment 2%
Floating Interest rate
8% (1st yr), 9%(2nd and 3rd yr),10%(after 3 years)
Processing Fee
0.50% of loan amount with a cap of Rs.10,000 + service tax
Prepayment Charges
N.A
Home Loan Rate of Interest of ICICI Bank
Rate Of Interest 9.50% - 9.75%
Prepayment Charges 2%
Floating Interest rate
9.50%
Processing Fee
0.50% of loan amount up to 1 crore0
Prepayment Charges
Rs.10,000/- above 1 crore If Full Payment - 2% of outstanding amount If Part

Payment - No Penalty
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The Most Preferred Home Loan provider SBI Bank offers a Home Loan with
Attractive Interest Rates with Latest Schemes and Benefits. SBI also provides a
Housing loan with different schemes. Schemes Are:-
1. SBI Easy Home Loan
2. SBI Advantage Home Loan
3. SBI Housing Finance Scheme
4. SBI Happy Home Loans
5. SBI Life Style Loan
6. SBI Green Home Loan
7. SBI Home Plus
8. SBI Home Line
9. SBI MY HOME CAMPAIGN
ICICI Bank Home Loan offers you Home Loan for following purposes
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1. Home Loan- If you want to purchase a new home then you can apply individually
or jointly.
2. Home Improvement Loan- For your home improvement you can take the Home
Improvement Loan from ICICI Bank.
3. EMI Under Construction- EMI Under Construction helps you to make payments
in EMI, in a partly sanctioned loan for an under construction project.
4. Balance Transfer-ICICI Bank Home Loan gives you facility to transfer your
running loan from another Bank .
5. Top-Up Loan- ICICI Bank Home Loan facilitates the Top-Up Loan, an additional
funding against the security of your property.
Page No. 40
Current Rate of Interest
Loan Schemes 1st Year 2nd and 3rd After 3rd Year
year
SBI HI-FIVE Loan 8.00% (p.a.) 9.00% (p.a.) 9.00% (p.a.)
Loan Amount up to Rs. 5 Fixed interest Floating Interest Floating Interest
Lacs rate Rates Rates
OR OR
10.50% (p.a.) 10.50% (p.a.)
Fixed Interest Fixed Interest
Rates Rates
SBI Easy Home Loan 8.00% (p.a.) 8.50% (p.a.) 9.00% (p.a.)
Loan Amount up to Rs. 50 Fixed interest Fixed Interest Floating Interest
Lacs rate Rate Rate
OR
10.50% (p.a.)
Fixed Interest Rate
SBI Advantage Home 8.00% (p.a.) 9.00% (p.a.) 10.00% (p.a.)
Loan Fixed interest Fixed Interest Floating Interest
Loan Amount Above Rs. rate Rates Rate
50 Lacs OR
11.00% (p.a.)
Fixed Interest Rate
Current Home Loan Interest Rates of ICICI Bank Home Loan

Loan Schemes Up to 30 Lacs From 30 Lacs to 75 Lacs Above 75 Lacs
ICICI Bank 9.50% 9.75% 9.75%
Home Loan
Page No. 41
Eligibility Criteria & Documentation required for SBI Home Loan

Salaried Self employed
Age 21years to 60years 21years to 70years
Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)
Loan Amount 5,00,000 - 1,00,00000 5,00,000 - 2,00,00000
Offered
Tenure 5years-20years 5years-20years
Current 2years 3years
Experience
Documentation 1) Application form with 1) Application form with photograph
photograph 2) Identity & residence proof
2) Identity & residence 3) Education qualifications certificate
proof & proof of business existence
3) Last 3 months salary 4) Business profile,
slip 5) Last 3 years profit/loss & balance
4) Form 16 sheet
5) Last 6 months bank 6) Last 6 months bank statements
salaried credit statements 7) Processing fee cheque
6) Processing fee cheque
Page No. 42
Eligibility Criteria & Documentation required for ICICI Bank Home Loan
Salaried Self employed
Age 21years to 65years 21years to 65years
Income Rs.1,44,000 (p.a) Rs.1,50,000 (p.a)
Loan Amount 2,00,000 - 1,00,00000 2,00,000 - 2,00,00000
Offered
Tenure 5years-20years 5years-20years
Current 1years 3years
Experience
Processing Fee 0.5% of loan amount as 0.5% of loan amount as
Administrative Fee or Rs. Administrative Fee or Rs.
2,000, whichever is higher 2,000, whichever is higher
Documentation 1) Application form with 1) Application form with
photograph photograph
2) Identity & residence proof 2) Identity & residence proof
3) Latest salary slip 3) Proof of business existence
4) Form 16 4) Profile of the Business
5) Last 6 months bank 5) Last 3years ITR
statements 6) Last 6 months bank
6) Processing fee cheque statements
7) Processing fee cheque
Page No. 43
CHAPTER -5
CONCLUSION
Page No. 44
CONCLUSION
FINDINGS
All the housing schemes offered by the bank considered as sample have been
compared and analysed carefully.it gives the clear indication that,financing a
borrower for housing purpose is considered as business as well as service of society
by the bank housing finance schemes can be basically categorized as
Construction of house/flat
Purchase of house/flat
Repairs/renovation of house/flat
Based on study it can be concluded that both government and private banks provide
good housing loan schemes.
Further it is found that with few exeption like slight variation in EMI, roi and
documentation, housing loan schemes offered by all the bank are more or less
competititve.
So far documentation is concerned it is found quite rigid in private banks where rate
of interest and EMI are also higher even then these schemes are surviving only
because of their liberal approach in determining the income eligibility of an
applicantno doubt,as their respresentative said, they are facing a srrious problem in
managing NON PERFORMING ASSETS(NPAs)
It is good beginning that after arrival of private banks, nationalized banks have also
started finalizing the loan application quickly.
Respondents answer gives clear indication that they prefer EMI on the first rank and
tax saving on the second rank while applying for a home loan.
Page No. 45
CHAPTER -6
RECOMMENDATIONS
Page No. 46
RECOMMENDATIONS
The researchers after analyzing the housing loan schemes and having an in depth
study of housing finance segment recommends the following suggestion to be
concerned.
 Documentation required shall doubtless be rigid but not complicated. It is

found that, for the some reason, number of document are required, which can
avoided easily.
 Customer preferences are EMI and tax savings. No doubt, these are not
under the control of the bank. Therefore, they will always be competitive.
Bank should prefer to concentrate on quicker disbursement and customer
relationship management.
 It is further recommended that banks shall introduce some additional
features, like free insurance of the property, repayment through credit card
etc. In their home loan schemes to make them more popular.
 Specifically private banks will have to curtail their hidden cost to compete
with nationalized banks in home finance segment.
 It is observed that now a day, private banks are to attract more customers and
the banks are becoming more popular in the customer mind government
banks should launch few new schemes to attract more customers.
 Last but not the least, it is recommended that, there is a scope in matching
the interest rates, EMI and other cost as the government banks.
Page No. 47
CHAPTER-7
BIBLOGRAPHY
BIBLOGRAPHY
Page No. 48
HOME LOAN BROCHURES OF:
STATE BANK OF INDIA

ICICI BANK
BOOKS:
RESEARCH METHODOLOGY-DR.B.D.KULKARNI
WEBSITES:
www.google.com
www.bazarbank.com
www.sbi.com
www.icici.com
Page No. 49

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FOR PROJECT CONTACT ON

1. A "home loan" is a credit to a consumer for the purchase or transformation of the

Home loan type

The eight banking subsidiaries are:

1. State Bank of Bikaner and Jaipur(SBBJ)

BEST POLICIES FOLLOWED BY SBI

1. People dealing with customer

Provision for downward refutation of EMI is respect of floating rate

Attractive packages in respect of loans grant under tie-up with Central/State

Package of exclusive benefits:-

Complimentary international ATM-Debit card

Purchase /construction of House /Flat

To enhance lone eligibility you have option to add

Income of your spouse

Regular income from all sources.

Interest rate with EMI

Loan Amount Min.- Rs1,00,000 Lakh

Tenure Min.-5yrs. Max.-20yrs.

Time to Process Loan 7days

In the 1990s, ICICI transformed its business from a development financial

EMI is calculate using the formula

I X r [(1+r) n / (1+r) n-1) X 1/12

SCOPE AND SINGNIFICANCE

The banking organization are divided into two sectors

NATIONALISED BANK: - STATE BANK OF INDIA (SBI)

PRIVATE BANK: - INDUSTRIAL CREDIT AND INSURANCE

LOAN TENURE:-1 to 25 YEARS

ELIGIBILITY: - On the basis of repayment capacity

OTHER COST: - processing fee repayment penalties, commitment fees,

Generally research I considered as an endeavor to arrive at the answer to intellectual

According to Clifford woody “research comprise defining and redefining problem ,

METHODS OF DATA COLLECTION

Collection of data refers to a purposive gathering of information relevant to the

The data collection can be grouped under two types

The source of primary data includes:

1) Direct personal investment

5) Indirect Oral investigation.

6) Information received through local agents.

DIRECT PERSONAL INVESTIGATION:-

A method of interview consists of Direct Personal Interview requires face to face

Telephone interview can be used as follow-up of a mailed questioned and is fairly

The methods of observation primarily help to collect data on non-verbal which

Direct observation can be in a structured measurement instrument. Unstructured

The source of secondary data includes:

A website may be the work of an individual, a business or other organization and is

Many publications issued at stated intervals, such as magazines or he record of the

A Magazines is a periodical publication containing of article ,generally financed by

DATA COLLECTION METHODS USED FOR PROJECT WORK:

The secondary data was also collected by referring to the following:-

Websites of Google- www.google.com

Interest Rate (Monthly reducing balance)

Processing Fees Higher of 0.5% of loan amount or Rs. 2,000

3. Last 6 months bank statements

Recently made loan offers

Total Interest Payable Rs. 34, 33,576

Total Tax + Fees Rs. 11,030

Total Interest + Fees Rs. 34, 44,606

Rs.28.50 lakhs for Rs.24,284 EMI 8.25% Rate 20 years Tenure

Total Interest Payable Rs. 32,94,846

Total Tax + Fees Rs. 11,030

Total Interest + Fees Rs. 33, 05,876

Rs.38.10 lakhs for Rs.32,464 EMI 8.25% Rate 20 years Tenure