ACKNOWLEDGEMENT

It gives me immense pleasure and privilege to acknowledge my deepest sense of gratitude towards all those who helped me in the successful execution of this project.

I would like to thanks Chairman Sir, Mr. Suresh Jain, Vice Chairman Mr. Manish Jain, Executive Director Prof. A.K. Garg for their able guidance. I also extend my gratitude towards the H.O.D. Mr. M.P. Singh and my course co-ordinator Mr. Abhinav Srivastava who entrusted me for the completion of this project. I am highly indebted to my project guide, Dr. Chanchal Chawla whose constructive counseling and able guidance helped me immensely in bringing out this project in the present form. And lastly the entire faculty member and Mr. Sanjeev Singh (Librarian) & the entire Lab staff for providing me this opportunity and expose me to industrial culture.

The acknowledgement would be incomplete without thanking my family and friend who were a big support throughout.

NISHANT TYAGI

EXECUTIVE SUMMARY
Over the years, home loan have undertaken several initiatives which have met with unprecedented success and really made people really sit up and take notice of the brand. There are many banks in the market are providing home loan facility. With the minimum interest rate, additional features and a competitive price. In this report two major have been undertaken for the comparative market study. SBI bank in Public sector Bank and ICICI in private sector bank. My above comparative study of the attitude of customer of home loan will definitely be useful to those bench markers who are trying to take amongst the best product give a new dimension to further strengthen.

TABLE OF CONTENTS
Acknowledgement Executive Summary 1. Introduction of Problem 2. Company Profile 3. Importance & Scope 4. Research Objectives 5. Hypothesis 6. Research Methodology 7. Data Analysis 8. Findings 9. Suggestions 10. Limitations 11. Bibliography 12. Annexure

INTRODUCTION
This project report is based on survey. In this report we study the various kind of home loan available in private and public sector bank - a comparative analysis. The data have been collected by filling up the questionnaire. Then the data have been tabulated and interpreted and shown in the form of a graph and on that basis conclusion have been made. In this project report we have taken two major banks i.e. SBI and ICICI. In this project report we have covered the various aspects of marketing strategies of paint companies. Home loans work like any other debt. That is, loans are simply specific money that we borrow from a bank, a private lender, or some other type of lender. Afterwards, we must repay our debts with interest. However, unlike other types of loans, home loans are different in several respects. Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market. There are different types of home loan i.e. Home Purchase Loans Home Improvement Loans Home Construction Loans

 Home Extension Loans Home Equity Loans Land Purchase Loans Bridge Loans

COMPANY PROFILE

Company Profile of SBI: 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 deposits and loans of all scheduled commercial banks 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 cards 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 to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks (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 time zones. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings - the Domestic division, the Foreign Offices division, the Foreign Department and the International Services division. State Bank of India (SBI) (LSE: SBID) is the largest bank in India. If one measures by the number of branch offices and employees, SBI is the largest bank in the world. Established in 1806 as Bank of Calcutta, it is the oldest commercial bank in the Indian subcontinent. SBI provides various domestic,
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international and NRI products and services, through its vast network in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking behemoth. The government nationalized the bank in 1955, with the Reserve Bank of India taking a 60% ownership stake. In recent years the bank has focused on three priorities, 1), reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme, which saw many of its best and brightest defect to the private sector, 2), computerizing its operations and 3), changing the attitude of its employees (through an ambitious programme aptly named 'Parivartan' which means change) as a large number of employees are very rude to customers. Roots: The State Bank of India traces its roots to the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The government amalgamated Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921, and named the reorganized banking entity the Imperial Bank of India. All these Presidency banks had been incorporated as joint stock companies, and were the result of the royal charters. The Imperial Bank of India continued as a

joint stock company. Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as India's central bank, at least in terms of issuing the currency. The State Bank of India Act 1955, enacted by the Parliament of India, authorized the Reserve Bank of India, which is the central banking organization of India, to acquire a controlling interest in the Imperial Bank of India, which was renamed the State Bank of India on 30 April 1955. Timeline:

June 2, 1806: The Bank of Calcutta established. January 2, 1809: This became the Bank of Bengal. April 15, 1840: Bank of Bombay established. July 1, 1843: Bank of Madras established. 1861: Paper Currency Act passed. January 27, 1921: all three banks amalgamated to form Imperial Bank of India.

July 1, 1955: State Bank of India formed; becomes the first Indian bank to be nationalized.

1959: State Bank of India (Subsidiary Banks) Act passed, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries.

1980s When Bank of Cochin in Kerala faced a financial crisis, the government merged it with State Bank of India.

June 29, 2007: The Government of India today acquired the entire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI), consisting of over 314 million equity shares at a total amount of over 355 billion rupees.

Associate banks: There are seven other associate banks that fall under SBI. They all use the "State Bank of" name followed by the regional headquarters' name. These were originally banks belonging to princely states before the government nationalized them in 1959. In tune with the first Five Year Plan, emphasizing the development of rural India, the government integrated these banks with the State Bank of India to expand its rural outreach. The State Bank group refers to the seven associates and the parent bank. All the banks use the same logo of a blue keyhole. Currently, the group is merging all the

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associate banks into SBI, which will create a "mega bank", and one hopes, streamline operations and unlock value.

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore

Foreign Offices: State Bank of India is present in 32 countries, where it has 84 offices serving the international needs of the bank's foreign customers, and in some cases conducts retail operations. The focus of these offices is India-related business. Group companies:

SBI Capital Markets Ltd SBI Mutual Fund (A Trust) SBI Factors and Commercial Services Ltd

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SBI DFHI Ltd SBI Cards and Payment Services Pvt Ltd SBI Life Insurance Co. Ltd - Banc assurance (Life Insurance) SBI Funds Management Pvt Ltd SBI Canada

Corporate Details: State Bank of India is actively involved since 1973 in non-profit activity called Community Services Banking. State Bank of India is India's largest bank amongst all public and private sector banks operating in India. State Bank of India owns and operates the following subsidiaries and Joint Ventures State Bank Of India Credit Card State Bank Of India Online State Bank Of India USA State Bank Of India Services State Bank Of India Mutual Funds State Bank Of India Branch State Bank Of India NRI Account

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Banking Subsidiaries:

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

Foreign Subsidiaries:

State bank of India International (Mauritius) Ltd. State Bank of India (California). State Bank of India (Canada). INMB Bank Ltd, Lagos.

Non- banking Subsidiaries.

SBI Capital Markets Ltd (SBICAP) SBI Funds Management Pvt Ltd (SBI FUNDS) SBI DFHI Ltd (SBI DFHI) SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)

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Joint ventures:

SBI Life Insurance Company Ltd (SBI LIFE).

Activities: State Bank of India administrative structure is well equipped to oversee the large network of branches in India and abroad. The State Bank of India 14 Local Head Offices and 57 Zonal Offices are located at important cities spread throughout the country. State Bank of India has 52 foreign offices in 34 countries across the globe. The Corporate Accounts Group is a Strategic Business Unit of the Bank set up exclusively to fulfill the specialized banking needs of top corporate in the country. The main activities of are into

Personal Banking. NRI Services. Agriculture. International. Corporate. SME. Domestic Treasury.

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State Bank of India offers the following services to its customers

Domestic Treasury. SBI Vishwa Yatra Foreign Travel Card. Broking Services Revised Service Charge. ATM Services. Internet Banking. E-Pay. E-Rail. RBIEFT. Safe Deposit Lockers. Gift Cheques. MICR Codes. Foreign Inward Remittances.

Moreover, State Bank of India has Colleges/Institutes/Training Centers that are the seats of learning and research and development. It caters not only to the employees of State Bank of India but also other banks/establishments in India and abroad.

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Performance: SBI Bank India had Total Income of Rs 68376.83 crore for the financial year 2006 -07. State Bank of India has posted Net Income to the tune of Rs 6364.38 crore or the financial year 2006 -07. Organization: State Bank of India is headed by Mr. Shri O. P. Bhatt, Chairman.

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COMPANY PROFILE

ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion (US$ 82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billion for the half year ended September 30, 2008. The Bank has a network of about 1,400 branches and 4,530 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

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ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). History: ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal 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

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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. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning feebased income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
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Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. Personal Banking: Deposits Loans Cards Investments Insurance Demat services Wealth management NRI Banking:

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 Money Transfer Bank accounts Investments Property Solutions Insurance Loans Business Banking: Corporate net banking Cash Management Trade services FXonline SME services Online taxes Custodial services

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SBI HOME LOAN PRODUCT REVIEW

I.

SBI HI-FIVE LOAN Maximum Rs.5 Lacs Maximum 120 months (i.e. 10 years) including moratorium period. 8% p.a. Fixed interest rate during first 60 months. 61st month Onwards - floating at 2.75% below SBAR Or Fixed interest at 1.25% below SBAR

Amount Term Interest Rates

Processing Fee The revised processing fee structure (including service tax) from 9th November 2009 is as under : Loan Amount Up to Rs.5 Lac Processing Fee(Revised) Rs.1000/-

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I.

SBI EASY HOME LOAN FOR LOAN AMOUNT UPTO Rs. 50 Lacs

Getting your dream home has become easier with SBI Easy Home Loan. With low interest rates for home loan under Rs. 50 lakhs category, SBI Easy ensures that you are not burdened with high interest for your home loan. Plus with over 12000 SBI branches nationwide you can get your Home Loan account parked at a branch nearest to your present or proposed residence. Interest Rate Interest rate during the first year (i.e. till first anniversary date from the date of first disbursement) is fixed at 8% p.a. Interest rate during next two years is fixed at 9% p. a

Interest rate after three years may be Fixed or Floating as per the borrowers choice made at the time of sanction. If floating rate option is chosen, then the rate will be 2.5% below SBAR. If fixed rate option is chosen, then the rate will be .75% below SBAR prevailing on the third anniversary date from the date of first disbursement, and shall have a reset frequency of 5 years from the third anniversary date of

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the loan. Fixed interest rate shall be subject to force-majeure clause. (SBAR = 11.75% p.a.) Processing Fee The revised processing fee structure (including service tax) from 9th November 2009 is as under: Processing Fee(Revised) Rs.1000/Rs.2000/Rs.5000/Rs.7,000/-

Loan Amount Up to Rs.5 Lac Above Rs.5 Lac and up to Rs.10 Lac Above Rs.10 Lac and up to Rs.20 Lac Above Rs.20 Lac and up to Rs.50 Lac

II.

SBI ADVANTAGE HOME LOAN FOR LOAN AMOUNT ABOVE Rs. 50 Lacs

SBI Advantage Home Loan with competitive rates of interest is available for home loans above Rs.50 lakhs. Plus with over 12000 SBI branches nationwide you can get your Home Loan account parked at a branch nearest to your present or proposed residence.

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Interest Rate Interest rate during the first year (i.e. till first anniversary date from the date of first disbursement) is fixed at 8% p.a. Interest rate during next two years is fixed at 9% p. a Interest rate after three years may be Fixed or Floating as per the borrowers choice made at the time of sanction. If floating rate option is chosen, then the rate will be 1.75% below SBAR. If fixed rate option is chosen, then the rate will be 0.75% below SBAR prevailing on the third anniversary date from the date of first disbursement, and shall have a reset frequency of 5 years from the third anniversary date of the loan. Fixed interest rate shall be subject to force-majeure clause. Processing Fee : The revised processing fee structure (including service tax) from 9th November 2009 is as under:
Loan Amount Above Rs.50 Lac and up to Rs.1 Cr Above Rs.1 Cr and up to Rs.5 Cr Above Rs.5 Cr Processing Fee(Revised) Rs.8,000/Rs.10,000/Rs.20,000/-

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INTEREST RATES Interest will be charged at the rates prescribed by the Bank from time to time. Borrowers availing loans up to Rs. 75 lacs can opt for paying interest either at fixed rate or floating rate. Interest on individual loans for over Rs. 75 lacs must be charged only at the floating rate interest linked to SBAR. HOME LOANS - INTEREST RATES (Revised SBAR w.e.f from 29.06.2009 = 11.75% p.a.) 1 . SBI HI-FIVE LOAN - FOR LOAN AMOUNT UPTO Rs. 5 Lacs (available up to 31st March 2010) Interest Rates 8% p.a. Fixed interest rate during first 60 months. 61st month Onwards - floating at 2.75% below SBAR (OR)
Fixed interest at 1.25% below SBAR

2.

SBI EASY HOME LOAN FOR LOAN AMOUNT UPTO Rs. 50 Lacs (AVAILABLE UP TO 30th June 2010 ) Interest Rates Interest rate during the first year (i.e. till first anniversary date from the date of first disbursement) is fixed at 8% p.a. Interest rate during next two years is fixed at 9% p. a Interest rate after three years may be Fixed or Floating as per the borrowers choice made at the time of sanction. If floating rate option is chosen, then the rate will be 2.5% below SBAR. If fixed rate option is chosen, then the rate will be .75% below SBAR prevailing

26

on the third anniversary date from the date of first disbursement, and shall have a reset frequency of 5 years from the third anniversary date of the loan. Fixed interest rate shall be subject to force-majeure clause.(SBAR = 11.75%p.a.)

3.

SBI ADVANTAGE HOME LOAN FOR LOAN AMOUNT ABOVE Rs. 50 Lacs available up to 31st March 2010) Interest Rates Interest rate during the first year (i.e. till first anniversary date from the date of first disbursement) is fixed at 8% p.a. Interest rate during next two years is fixed at 9% p. a Interest rate after three years may be Fixed or Floating as per the
borrowers choice made at the time of sanction. If floating rate option is chosen, then the rate will be 1.75% below SBAR. If fixed rate option is chosen, then the rate will be 0.75% below SBAR prevailing on the third anniversary date from the date of first disbursement, and shall have a reset frequency of 5 years from the third anniversary date of the loan. Fixed interest rate shall be subject to force-majeure clause.

DOCUMENTS List of papers/ documents applicable to all applicants: Completed loan application 3 Passport size photographs Proof of identify (photo copies of Voters ID card/ Passport/ Driving license/ IT PAN card) Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID card) Proof of business address for non-salaried individuals Statement of Bank Account/ Pass Book for last six months Signature identification from present bankers Personal Assets and Liabilities statement
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For guarantor (wherever applicable): Personal Assets and Liabilities Statement 2 passport size photographs Proof of identification as above Proof of residence as above Proof of business address as above Signature identification from his/her present bankers Additional documents required for salaried persons : Original Salary Certificate from employer TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Deptt. Additional documents required for Professionals/self- employed/ other IT assesses: Acknowledged copies of three years I.T. returns/ Assessment Orders. Photocopies of challans evidencing payment of Advance Income Tax

SBI Home Loans Unique Advantage

Package of exclusive benefits.

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

Low processing charges. No hidden costs or administrative charges. No prepayment penalties. Reduce your interest burden and

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optimally utilize your surplus funds by prepaying the loan. Over 12000 branches nationwide, you can get your Home Loan account parked at a branch nearest to your present or proposed residence.

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ICICI HOME LOANS PRODUCT REVIEW

Eligibility Home Loans can be availed by Resident Indian whether salaried or SelfEmployed and also by Non- Resident Indian who are Salaried. For resident Indians the following are the eligibility norms:

You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier.

You must be employed or self-employed with a regular source of income

Loan Amount With ICICI Bank Home Loans, you can get a home loan suited to your needs. The home loan amount depends on your repayment capability and is restricted to a maximum of 80% of the cost of the property or the cost of construction as applicable. A number of factors are taken into account when assessing your repayment capacity. Repayment capacity takes into consideration factors such as income, age, qualifications, number of

30

dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history. However, there are ways by which you can enhance your eligibility.

If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. In case of any co-owners they must necessarily be co-applicants.

The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to conform within the limits fixed for each loan.

Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included

Documents required for the Sanctioning of Home Loan ICICI Bank offers attractive interest rates and unbeatable benefits to ensure that you get the best deal without any hassles. Keeping your convenience in consideration, we ask you for minimal mandatory documents for the sanctioning of your Loan against Property. We require the following documents to sanction your Loan Against Property:

Duly Completed Application Form

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Photograph Fee cheque Photo Identity Proof Signature Verification Proof Residence Address Proof Property documents as required

Document specific for Salaried

Last 3 months' salary slips Form 16 Bank Statement for last 6 months from salary account Repayment details on any existing loans or loan closure letter

Document specific for Self Employed

Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for business and personal of partners/directors)

Bank Statement for last 6 months from operating account

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Repayment details on existing loans or loan closure letter Board Resolution in case of a company Proof of existence of the business entity Proof of Office Address Photo Identity Proof, Residence Address Proof, Signature Verification must be provided for all the main partners / directors

Disbursement of ICICI Bank Home Loan ICICI Bank Home Loans disburses the loan amount after you identify and select the property or home that you are purchasing and submit the requisite legal documents. While one may be under the impression that the list of documents asked for is rather extensive, please note that it is for customers good. Each and every single document asked for will be verified and checked to ensure your safety. This may take some time but will complete all the legal and technical verifications to ensure that one has full rights to his home.

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Your loan will be disbursed after you identify and select the property or home that you are purchasing and on your submission of the requisite legal documents. On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by ICICI Bank.

Property documents (as per P&D for respective states and as asked by empanelled lawyers for individual cases).

Facility Agreement. Disbursal Request Form. Cheque Submission Form - for Pre EMI and EMI cheques. ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for EMI / Pre EMI.

Personal Guarantor's Documents (PG Form, Photograph, Identity Proof, Address Proof, Signature Verification and Income documents, if applicable)

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Repayment Terms of Home Loan In order to make taking a home loan an easy process for you, ICICI Bank Home Loans address all your queries about the repayment terms of Home Loans with respect to tenure, home loan EMIs, methods of home loans EMI payments and pre-EMI interest. What is the repayment tenure? Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of options for the tenure of the loan. You can take a home loan for up to 20 years provided you do not reach the age of 65 years or retire within that period. How is the loan repaid? All loan repayments are done via equated monthly installments (EMI). What is an EMI? An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.

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When does the repayment start? EMI payments start from the month following the month in which the full disbursement has been made. How is the EMI paid? The EMI is to be paid every month through post-dated cheques (PDCs) or Electronic Clearing System (ECS)*. If you are opting for PDCs, then you will have to provide 36 PDCs upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, we provide the flexibility of dating the cheques for the 10th of the month. In case you have an ICICI Savings account you can also go in for the facility of Auto Debit. What if a PDC bounces? In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 - 7 working days.

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What is pre-EMI interest? In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence. When do I pay PEMIs? The first PEMI is payable by cheque by the end of the month in which the disbursement is made and each subsequent PEMI at the end of every month till the commencement of EMI. In case you have an ICICI Savings account you can also go in for the facility of Auto Debit Application Process of Home Loan The moment you decide to buy a home, you can put in your application for a home loan. Yes, you can apply for a home loan even before you have selected the property. The property need not even be in the same city where you are residing. The only condition being that ICICI Bank has Home Loans operations in both the cities.

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Should there be a change in your financial status or plans, you can withdraw your sanction within 6 months of approval of your home loan. However bank is always ready to assist its customers in the event of legitimate problems. And, we might reconsider this if we find that there are satisfactory reasons for the delay. If it is refinancing you are interested in, it is possible within 6 months from the date of purchase of property. Insurance Plans for Home Loan Introducing exclusive Home Insurance plans, that can provide cover to your Home loan in the face of any unforeseen event happening to your life. In case of any of these happenings, your family will have the support of the insurance cover to pay for the outstanding Home loan, without being burdened by the loan EMI's. ICICI Bank Home Loans presents "HomeSafePlus" & "Home Assure/Health Assure" two exclusive and innovative insurance plans to insure your Home Loan.

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HomeSafePlus Key Benefits of HomeSafePlus:

No medical checkup Comprehensive insurance plan for individual, home and its contents Single premium long-term insurance plan Premium paid for the Critical Illness cover is eligible for tax benefits u/s 80D of the Income Tax Act

Sum Insured remains constant throughout the policy period (loan O/S amount to come to bank, rest goes to individual)

Multiple applicants can be covered under the same loan Simple application form

Home Assure/Health Assure Key Benefits of Home Assure/Health Assure:

Life Cover from Home Assure for the entire home loan tenure Critical Illness cover from life threatening illnesses like cancer, coronary artery bypass, heart attack, kidney failure, stroke, major organ transplant

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Special non-medical limits only for ICICI Bank Home Loans customers

Dual benefit to customers, Life Cover from Home Assure and Critical Illness Cover from Health Assure

Dual tax benefits, Section 80C benefits under Home Assure, Section 80D benefits under Health Assure

Simplified claim procedure

Home loan Schemes As one of the leading home loan provider, ICICI Bank understands how special building a new home is for you and our Home Loan help you lay the foundation for your dream home. ICICI offers you the most convenient home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer a distant dream. Some of our key benefits are:

Guidance throughout the process Home loan amounts suited to your needs Home Loan tenure up to 20 years

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Simplified documentation Doorstep delivery of home loan papers Sanction approval without having selected a property. Free Personal Accident Insurance (Terms & Conditions) Insurance options for your home loan at attractive premium

No matter what the requirement, we have an appropriate plan for you.Get the best deals, and finance your perfect home, only from ICICI Bank. Changes in Floating Reference Rate (FRR) Interest rate on ICICI Bank Home Loans is linked to the ICICI Bank Floating Reference Rate (FRR/PLR). ICICI Bank FRR has been reduced by 50 basis points (i.e. 0.50%) with effect from June 04, 2009. Thus the FRR has been reduced from 13.25% to 12.75%. ICICI Bank PLR has also been reduced by 50 basis points (i.e. 0.50%) with effect from June 04, 2009. Thus the PLR has changed from15.25% to 14.75%.

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SCOPE AND IMPORTANCE

This study is analysis and comparison of home loans provided by the SBI and ICICI banks. It is helpful in analyzing the home loan service provided to the customer and their comparison. In todays globally competitive environment where survival of fittest theory is being proved true. It has become mandatory to fulfill the needs of the human society because whitewash is one of the prime needs of the society. Now a day the life style of the society is going to the change, and the needs are increasing. To provide the home loan services, different banks are present in the market. They are adopting different schemes, services, and promotional scheme. In this field, in my research, I have selected leading banks. My above comparative study of the marketing strategies by the banks will definitely be useful to those bench markers who are trying to best home loan amongst the best and will certainly give a new dimension to further strengthen.

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OBJECTIVES OF THE STUDY

Aims and objectives set forth the conduct this survey which help to evaluate the findings of the survey are following : To study the cost of home loans provided by the bank. To know that which bank provide batter loan schemes.

To analyze the home loan scheme by ICICI and SBI banks.

To know the consumer perception about the home loan of ICICI and SBI.

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HYPOTHESIS
A hypothesis consists either of a suggested explanation for an observable phenomenon or of a reasoned proposal predicting a possible causal correlation among multiple phenomena. The term derives from the Greek, hypotithenai meaning "to put under" or "to suppose." The scientific method requires that one can test a scientific hypothesis. Scientists generally base such hypotheses on previous observations or on extensions of scientific theories. Even though the words "hypothesis" and "theory" are often used synonymously in common and informal usage, a scientific hypothesis is not the same as a scientific theory. Hypothesis may be defined as a proposition or a set of proposition set forth as an explanation for the occurrence of some specified group of phenomenon either asserted merely as a provisional conjecture to guide some investigation or accepted as highly probable in the light of established facts. Quite often a research hypothesis is a predictive statement, capable of being tested by scientific methods, that relates an independent variable to some dependent variable.

44

NULL HYPOTHESIS A null hypothesis is a hypothesis (within the context of statistical hypothesis testing) that might be falsified on the basis of observed data. The null hypothesis typically proposes a general or default position, such as that there is no relationship between two quantities, or that there is no difference between a treatment and the control. The term was originally coined by English geneticist and statistician Ronald Fisher. The null hypothesis (often denoted by

H0) formally describes some aspect

of the statistical "behaviour" of a set of data. The Null Hypothesis is of this project report is that customers are highly satisfied. ALTERNATE HYPOTHESIS Alternative hypothesis is the "hypothesis that the restriction or set of restrictions to be tested does NOT hold." Often denoted H1. Synonym for 'maintained hypothesis.' The Alternate Hypothesis of this project report is that customers are not satisfied.

45

RESEARCH METHDOLOGY
STEPS IN RESEARCH 1. 2. 3. Understanding the nature and scope of the existing environment. Study the existing system of the various companies. To collect the information from various websites and self constructed questionnaire. 4. Meeting with different customers of different places to incorporate their views. 5. Obtaining the opinion and suggestions of customers at different levels of the society. 6. 7. Prepare questionnaire on the basis of above information. Gather information from different source like books Internet magazines etc. 8. On the basis of the answers from the customers and the information gathered from other sources prepare the report, mentioning the necessary changes require in the existing environment.

46

RESEARCH DESIGN
The research design is the conceptual structure with in which research is conducted it consist the blue print of the collection measurement and analysis of data. In that project the research design was adopted for the Descriptive research study the exploratory research studies are also termed as formulative research studies. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view. The main purpose of the study was to tell the consumer perception in A. The major emphasis was on the discovery of the ideas and opinions of the consumers at different levels in the existing environment. Two methods that are used for the study are : 1. 2. The survey of concerning literature. The experience study.

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SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population. If refers to the technique or the procedure the researcher would adopt in selecting items for the sample. The sample design is determined before data are collected. The sampling used for the study is Convenience Sampling. Under this sampling design every item or the universe has equal chance or inclusion in the sample because this is Consumers Perception survey, so we give each person at any place an equal probability of getting into the sample. The implications of random sampling are : 1. It gives each element in the population an equal probability of getting into

the sample; and all choices are independent of one another. 2. It gives each possible sample combination an equal probability of being

chosen.

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RESEARCH PLAN
* Sampling Unit

The units chosen for survey were related advisor consultant & customers. * Sample size

Approximate 50 * Sample Selection Method

Stratified Random Probability Sample Selection Method. * Research Instrument

Questionnaire * Contact Method

Direct Personal Interview

TYPES OF DATA
In the survey two types of data are collected : 1. Primary data : These datas are those which are collected for the first time and therefore original in nature. 2. Secondary data : Data, which have already been collected by someone else and hence passed through the statistical process.

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DATA COLLECTION
* PRIMARY DATA COLLECTION

For the collection of the primary data following methods were used : 1. Interview method : Personal interviews of the customers are taken at different levels to get their opinions and suggestions. And the interview was structured in nature. 2. Questionnaire method : Structured questionnaire on the basis of information collected from different sources. The questionnaire contains both open and ended questions. * SECONDARY DATA COLLECTION

Secondary data were collected from the following sources : 1. 2. 3. 4. * Books related to topic Organization documents Magazines Websites STATISTICAL TOOLS USED

Statistical` tools used in the project study are : Graph.

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DATA ANALYSIS SBI : 50 1) What is your occupation? Business Man Student Government Employees Other House Wife 15 0 22 0 9

Interpretation:
o Total

Number of Respondents was 46. :-

o 0 of our Respondents was Students. o 22 of the Respondents were into government employees o 15 of our Respondents were Businessman. o 9 of our Respondents were Housewives. o None of our Respondent belonged to the category of others. o 4 respondents did not answer.

2) From how many years you are associated with this bank?
51

Less than 1year 1-5 years More than 5 years

10 24 12

Interpretation
o Total o 10 o 24 o 12

Number of Respondents was 46

persons are associated less than 1 year persons are associated from 1-5 years. persons are associated from more than 5 years.

3) How do you come to know about the home loan schemes of that bank?
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Newspaper Television Internet Other sources

18 14 10 4

Interpretation
o Total o 18 o 14 o 10 o4

Number of Respondents was 46

persons came to know from newspaper persons came to know from television persons came to know from internet

persons came to know from other resources

4) Are you aware of these type of home loans? Home purchase loan Home construction loan 9 18

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Home improvement loan Home equity loan Land purchase loan

6 4 9

20 18 16 14 12 10 8 6 4 2 0 Hom e Home Home purchase loan construction improvem ent loan loan Home equity Land purchase loan loan

Interpretation
o Total o Only

Number of Respondents was 46 4 persons know home equity loan. of peoples know home construction loan.

o Many o9 o6

peoples know home purchase loan. peoples know home improvement loans.

5) Are you aware all terms and conditions of home loans? Yes NO 40 6

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45 40 35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total o Many o6

Number of Respondents was 46. of persons know all terms and conditions of home loan i.e. 40.

persons had not know properly about all terms and conditions.

6) Are you satisfied with the interest rate charges by your bank? Strongly agree Agree Disagree
55

12 30 4

Strongly disagree

35 30 25 20 15 10 5 0 Strongly agree Agree Disagree Strongly disagree

Interpretation
o Total o 12 o 30 o4 o0

Number of Respondents was 46

among all consumers are strongly agreed by interest rate of the bank. among all consumers are agreed by interest rate of the bank

among all consumers are disagreed by interest rate of the bank among all consumers are strongly disagreed by interest rate of the bank

7) Your bank offers which type of services? Mobile Banking Net Banking Forex Banking
56

24 15 7

30 25 20 15 10 5 0 Mobile banking Net banking Forex banking

Interpretation
o Total Number of Respondents was 46. o 24 persons said that bank offer mobile banking services. o 15 said that bank offer net banking services. o Only 7 persons said that bank offer Forex banking services.

8) Do you agree that your bank loan processing is fast? Strongly Agree Agree Disagree Strongly Disagree 8 26 9 3

57

30 25 20 15 10 5 0 Strongly Agree Agree Disagree Strongly Disagree

Interpretation:o Total Number of Respondents was 46. o 8 persons strongly agree that bank home loan processing is fast. o 26 persons agree that bank home loan processing is fast. o 9 persons disagree that bank processing is fast. o 3 persons strongly disagree that bank processing is fast.

9) Are you satisfied with the after home loan services provided by your bank as compared to other banks? Strongly Agree Agree Disagree
58

12 30 4

Strongly Disagree

35 30 25 20 15 10 5 0 Strongly Agree Agree Disagree Strongly Disagree

Interpretation
o Total Number of Respondents was 46 o 12 among all consumers are strongly agreed by after sale services of the bank. o 30 among all consumers are agreed by after sale services of the bank o 4 among all consumers are disagreed by after sale services of the bank o 0 among all consumers are strongly disagreed by after sale services of the bank

10) Does the cost of home loan is appropriate, according to your demand? Yes No 33 13

59

35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total Number of Respondents was 46. o 33 persons said that home loan is appropriate according to their demand. o 13 persons said that home loan is not appropriate according to their demand.

11) Are you satisfied with the employee behavior at the bank?

Strongly Agree Agree Disagree

19 23 4

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Strongly Disagree

25 20 15 10 5 0 Strongly Agree Agree Disagree STRONGLY Disagree

Interpretation
o Total o 19 o 23 o4

Number of Respondents was 46.

persons very satisfied with the employee behavior of the bank. persons satisfied with the employee behavior of the bank. one disagrees with the employee behavior of the bank.

persons disagree with the employee behavior of the bank.

o No

12) Does the bank give any discount upon loan services? Yes No 40 6

61

45 40 35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total Number of Respondents was 46. o 40 persons said that bank give discount upon loan services. o Only 6 persons said that bank does not give any discount upon loan services.

13) Are you satisfied by the time taken in sanctioning the loan?

Yes No

34 12

62

40 35 30 25 20 15 10 5 0 Yes No

Interpretation:O Total Number of Respondents was 46. o 34 persons are satisfied by the time taken o 12 persons are not satisfied by the time taken

14) Have you faced any difficulty during taking the loan?

Yes No

39 7

63

45 40 35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total o 39

Number of Respondents was 46. 7 persons does not face any difficulty during taking the loan.

persons face difficulty during taking the loan.

o Only

15) Which grade you want to give of home loan schemes of the bank? Excellent Good Average Below average 24 18 4 0

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30 25 20 15 10 5 0 Excellent Good Average Below Average

Interpretation
o Total Number of Respondents was 46. o 24 persons give excellent grade of the bank. o 18 persons gave good grade to the bank. o Only 4 persons give average grade to the bank. o No none give below average grade to the bank.

ICICI: NO.50 1) What is your occupation? Business Man Student Housewife Government Employee Other 17 0 7 23 0

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25 20 15 10 5 0 Business Man Student House wife Government Employee Other

Interpretation:o Total Number of Respondents was 47. o 0 of our Respondents was Students. o 23 of the Respondents were into government employees o 17 of our Respondents were Businessman. o 7 of our Respondents were Housewives. o None of our Respondent belonged to the category of others. o 3 respondents did not answer.

2) From how many years you are associated with this bank? Less than 1 year 1-5 years More than 5 years 17 19 11

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20 18 16 14 12 10 8 6 4 2 0 Less than 1 year 1-5 years More than 5 years

Interpretation:o Total Number of Respondents was 47 o 17 persons are associated less than 1 year o 19 persons are associated from 1-5 years. o 11 persons are associated from more than 5 years.

3) How do you come to know about the home loan schemes of that bank? News Paper Television Internet Other
67

12 22 9 4

25 20 15 10 5 0 News Paper Television Internet Other

Interpretation:o Total Number of Respondents was 47 o 12 persons came to know from newspaper o 22 persons came to know from television o 9 persons came to know from internet. o 4 persons came to know from other resources.

4) Are you aware of these types of home loans? Home Purchase Loan Home Construction Loan Home Improvement Loan 9 19 9

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Home Equity Loan Land Purchase Loan

2 8

20 18 16 14 12 10 8 6 4 2 0 Hom e Home Home Purchase Loan Construction Improvement Loan Loan Home Equity Land Purchase Loan Loan

Interpretation o Total Number of Respondents was 47. o Only 2 persons know home equity loan. o Many of peoples know home construction loan. o 9 peoples know home purchase loan. o 9 peoples know home improvement loans.

5) Are you aware all terms and conditions of home loans? Yes NO 34 13

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40 35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total Number of Respondents was 47. o Many of persons know all terms and conditions of home loan i.e. 34. o 13 persons had not know properly about all terms and conditions

6) Are you satisfied with the interest rate charges by your bank?

Strongly agree Agree Disagree Strongly disagree

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11 34 2 0

40 35 30 25 20 15 10 5 0 Strongly Agree Agree Disagree Strongly Disagree

Interpretation o Total Number of Respondents was 47. o 11 among all consumers are strongly agreed by interest rate of the bank. o 34 among all consumers are agreed by interest rate of the bank o 2 among all consumers are disagreed by interest rate of the bank o 0 among all consumers are strongly disagree by interest rate of the bank

7) Your bank offers which type of services? Mobile Banking Net Banking Forex Banking 26 13 8

71

30 25 20 15 10 5 0 Mobile Banking Net Banking Forex Banking

Interpretation
o Total Number of Respondents was 47. o 26 persons said that bank offer mobile banking services. o 13 said that bank offer net banking services. o Only 8 persons said that bank offer Forex banking services.

8) Do you agree that your bank loan processing is fast? Strongly Agree Agree Disagree Strongly Disagree 4 21 13 9

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25 20 15 10 5 0 Strongly Agree Agree Disagree Strongly Disagree

Interpretation
o Total Number of Respondents was 47. o 4 persons strongly agree that bank home loan processing is fast. o 21 persons agree that bank home loan processing is fast. o 13 persons disagree that bank processing is fast. o 9 persons strongly disagree that bank processing is fast.

9) Are you satisfied with the after home loan services provided by your bank are best as compare to other bank? Strongly Agree Agree Disagree Strongly Disagree 14 29 4 0

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35 30 25 20 15 10 5 0 Strongly Agree Agree Disagree Strongly Disagree

Interpretation
o Total Number of Respondents was 47. o 14 among all consumers are strongly agreed by after sale services of the bank. o 29 among all consumers are agreed by after sale services of the bank o 4 among all consumers are disagreed by after sale services of the bank o 0 among all consumers are strongly disagreed by after sale services of the bank

10) Is the cost of home loan is appropriate, according to your demand? Yes No 29 18

74

35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total Number of Respondents was 47. o 29 persons said that home loan is appropriate according to their demand. o 18 persons said that home loan is not appropriate according to their demand.

11) Are you satisfied with the employees behavior of the bank? Strongly Agree Agree Disagree Strongly Disagree 16 25 4 0

75

30

25

20

15

10

0 Strongly Agree Agree Disagree Strongly Disagree

Interpretation
o Total Number of Respondents was 47. o 16 persons very satisfied with the employee behavior of the bank. o 25 persons satisfied with the employee behavior of the bank. o 6 persons disagree with the employee behavior of the bank. o No one is disagree with the employee behavior of the bank.

12) Does the bank give any discount upon loan services? Yes No 35 12

76

40 35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total Number of Respondents was 47. o 35 persons said that bank give discount upon loan services. o Only 12 persons said that bank does not give any discount upon loan services.

13) Are you satisfied by the time taken in sanctioning the loan?

Yes No

30 17

77

35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total Number of Respondents was 47. o 30 persons are satisfied by the time taken o 17 persons are not satisfied by the time taken

14) Have you faced any difficulty during taking the loan? Yes No 43 4

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50 45 40 35 30 25 20 15 10 5 0 Yes No

Interpretation
o Total Number of Respondents was 47. o 43 persons face difficulty during taking the loan. o Only 4 persons does not face any difficulty during taking the loan.

15) Which grade you want to give of home loan schemes of the bank? Excellent Good Average Below average 18 20 8 1

79

25

20

15

10

0 Excellent Good Average Below Average

Interpretation
o Total Number of Respondents was 47. o 18 persons give excellent grade of the bank. o 20 persons gave good grade to the bank. o Only 8 persons give average grade to the bank. o 1 person give below average grade to the bank

FINDINGS All the people are availing loan facility from both the banks. No. of respondents of SBI were 46 and 47 of ICICI Bank. People related with SBI are more satisfied with the interest rate as compared to ICICI. SBI people much know about home loans then ICICI. Both ICICI and SBI mostly offer mobile banking services. Processing of SBI is fast then ICICI. After home

80

loan services of ICICI is good as compare to SBI. Peoples related with SBI is more satisfy with the employee behavior as compared to ICICI. People are more satisfied by SBI for time taken for sanctioning the loan. From all this I conclude that SBI bank provide good home loan services as compared to ICICI and many people are very much satisfied with SBI.

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SUGGESTIONS The customer should be well known about the scheme and promotional

strategy offered by the company. Creation about the products and services among the customers. Charges: The Company has to reduce the mortality and administration charges. The process is some what late to sanction a loan. The company has to reduce their interest rates on home loan products and services. The company has to identify the potential customers. Production promotion strategies should be improved. Company should consider the present competition and should act according to the customer needs.

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LIMITATIONS OF SURVEY

Although best of the efforts were made to conduct a prefect survey but still it faces certain limitation. Following were certain limitation of this project. The survey was conducted only on 50 respondents. Some of the respondents did not answer all the questions, which could hamper the final results to a certain extent. The study confines itself to the respondents of MORADABAD region only. Hence findings would not be relevant to other cities.

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BIBLIOGRAPHY BOOKS : * * Marketing Management by : Kotler Philip Research Methodology by : Kothari C.R.

WEBLIGRAPHY

www.sbi.co.in www.icicibank.com

84

ANNEXURE : QUESTIONNAIRE

Dear Respondent I am a student of BBA (3 year) and as a part of my curriculum I am conducting a survey and would be grateful if you could spare some of your precious time to fill this questionnaire for the same. Please (/) where appropriate. COMPARITIVE STUDY OF HIME LOANS OF SBI & ICICI IN MORADABADF QUESTIONNAIRE: Name____________ Qualification_________ Age 18-25 25-35 35-40 above Gender_________ 1) What is your occupation? Business man Other Government employee House wife Student

2) From how many years you are associated with this bank? Less than 1 year 1-5 More than 5 year 3) How do you come to know about the home loan schemes of this bank? News paper Television Internet Other resources

4) Are you aware of these types of home loans? Home purchase loan Home construction loan loan
85

Home improvement

Home extension loan

Home equity loan

Land purchase loan

5) Are you aware all terms and conditions of home loans? Yes No

6) Are you satisfied with the interest rate charges by your bank? Strongly agree Strongly disagree 7) Your bank offers which type of services? Mobile banking Net banking Forex banking Agree Disagree

8) Do you agree that your bank loan processing is fast? Strongly agree Strongly Disagree Agree Disagree

9) Do you satisfy with the after home loan services provided by your bank are best as compare to other bank? Strongly agree Agree Strongly disagree Disagree

10) Does the cost of home loan is appropriate, according to your demand? Yes No

11) Are you satisfied with the employees behavior at the bank? Strongly agree Agree Strongly disagree
86

Disagree

12) Does the bank give any discount upon loan services? Yes No

13) Are you satisfy by the time taken in sanctioning the loan? Yes No

14)Have you face any difficulty during taking the loan? Yes No If yes then specify___________________________ 15) Which grade you want to give of home loan schemes of your bank? Excellent Average Good Below average

16) Any suggestions that you want to give_________________________________ Thank You Some information about yourself a. Name ...............................................b Age..................................................... c. Occupation : Business Service d. Address: ......................................................................................................... ......................................................................................................... e. Contact No........................................................................................................

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