ASUMMERE TRAINING PROJECTONPUNJAB NATIONAL BANK HOME LOAN

Submitted to: Dr. B.R. Ambedkar University, Agra

In the partial fulfillment of the requirement for the degreeOf
Master of Business Administration
(Banking and Investment)
(2008-10)
U n d e r t h e
g u i d a n c e
o f : S u b m i t t
e d b y :
Mr. R.K. Verma
P
rashant
S
rivastava(Chief Manager)
M.B.A. (B.I.) IIIrdSemester Roll No. 17
SETH PADAM CHAND JAIN INSTITUTE OF COMMERCE BUSINESS MANAGEMENT & ECONOMICS
1 P r
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Prashant Srivastava
2 P r
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Prashant Srivastava
ACKNOWLEDGEMENT
T h i s r e p o r t b e a r s t h e i m p r i n t o f m a n y
p e r s o n s , w h o h a v e h e l p e d m e i n
n u m e r o u s w a y s i n w r i t i n g t h i s
r e p o r t . I t g i v e s m e g r e a t p l e a s u r e
i n p r e s e n t i n g t h i s r e p o r t t o t h e
D r . B . R . A m b e d k a r U n i v e r s i t y , A g r a
v i a
S e t h P a d a m C h a n d J a i n I n s t i t u t e o f
C o m m e r c e B u s i n e s s M a n a g e m e n t &
E c o n o m i c s
.I w o u l d l i k e t o t a k e t h i s
o p p o r t u n i t y t o e x t e n d m y
h e a r t f u l g r a t i t u d e t o a l l t h o s e w h o
h e l p e d m e i n p r e s e n t i n g t h i s
r e p o r t . T h e i r c o n t r i b u t i o n n o
m a t t e r b i g o r s m a l l h a s
c o n t r i b u t e d i m m e n s e l y t o w a r d s
c o m p l e t i o n o f t h i s r e p o r t . I f a l l s h o r t
o f w o r d s t o e x p r e s s m y g r a t i t u d e
t o a l l t h e r e s p o n d e n t s w h o g i v e s m e
t h e i r v a l u a b l e t i m e a n d
u n b i a s e d r e s pons es
f or my
ques t i onna i
r e of t hi s
pr oj ec t
r epor t .
I acknowl edg
e my deep
sense of
gr at i t ude t o
MR. R. K. V e r m a
(
C h i e f M a n a g e r
) f o r h i s g e n e r o u s g u i d a n c e &
a d v i c e b e f o r e & d u r i n g t h e
c o u r s e o f t h i s w o r k & a l s o i n
a n a l y z i n g t h e w o r k . I a m a l s o
e x t r e m e l y g r a t e f u l t o m y f a c u l t y
m e m b e r s M r . P . N . A g a r w a l , M s .
G u n j a n D i x i t a n d M s . S w a t i
M a t h u r , w h o e n c o u r a g e s m e f o r
c o m p l e t i n g m y p r o j e c t r e p o r t . I a m
e q u a l l y t h a n k f u l t o S r i . A . K . S a x e n a
( C o - o r d i n a t o r ) . M y o v e r r i d i n g
d e b t i s t o m y p a r e n t s a n d m y
s i b l i n g s w h o p r o v i d e m e w i t h t h e
m o r a l s u p p o r t & i n s p i r a t i o n
n e e d e d t o p r e p a r e t h i s r e p o r t .
PRASHANT SRIVASTAVA
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P R E F A C E
Modern organizations are highly complex ad dynamics systems. Theyoperate
under very turbulent social economic and political environment. They are
required to reconcile several incompatible goals. Conflicting rolesa n d
d i v e r g e n t i n t e r e s t t h e y a r e a l s o f r a u g h t w i t h t h e
u s e r i s k a n d uncer t ai nt i es, hence t act f ul management of such
or gani zat i on t o pl an t oe x e c u t e g u i d e , c o o r d i n a t i o n a n d
c o n t r o l t h e p e r f o r ma n c e o f p e o p l e t o achi eve pr edet er mi ned
goal s. Management has t o keep t he or gani zat i on vibrant moving and in
equilibrium. It has to achieve goal which themselvesare changing it is therefore a
problem highly complex and ticklish.T h i s i n f o r m a t i o n
w i l l b e a s s e t t o m a r k e t i n g
m a n a g e r i n m a k i n g e f f e c t i v e
d e c i s i o n s . T h e r e s e a r c h e s a r e
u s e d t o a c q u i r e a n d a n a l y s e
i n f o r m a t i o n a n d t o m a k e
s u g g e s t i o n s t o m a n a g e m e n t a s t o
h o w m a r k e t i n g p r o b l e m s s h o u l d b e
s o l v e d . T h e m a r k e t i n g r e s e a r c h
i s t h e p r o c e s s w h i c h l i n k s
t o m a n u f a c t u r e r , d e a l e r s a n d
i n d i v i d u a l s t h r o u g h i n f o r m a t i o n
i n i m p o r t a n t p a r t o f c u r r i c u l u m o f
M . B . A . p r o g r a m m e i s p r o j e c t t a k e n
b y t h e s t u d e n t s t o i n s t i t u t e
u n d e r w h i c h h e o r s h e
i s s t u d y i n g , a f t e r
c o m p l e t i o n o f t h i r d
s e m e s t e r o f
t h e p r o g r a m m e . T h e o b j e c t i v e o f
t h i s p r o j e c t i s t o e n a b l e t h e
s t u d e n t s t o u n d e r s t a n d t h e
a p p l i c a t i o n o f t h e a c a d e m i c s
i n t h e r e a l b u s i n e s s l i f e . I a m
f u l l y c o n f i d e n t t h a t t h i s p r o j e c t
r e p o r t w i l l b e e x t r e m e l y u s e f u l t o
t h e m a n a g e m e n t .
5 P r
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TABLE OF CONTENTSAcknowledgementPrefaceCHAPTER 1: Overview
of banking industry in IndiaCHAPTER 2: A Saga of Banking Excellence in
Banking(P
UNJAB
NATIONA
L
BANK)CH
APTER 3:
Performan
ce of the
PNBCHAP
TER 4:
Organisati
onal
StructureC
HAPTER
5: Home
LoanCHA
PTER 6:
PNB
Home
LoanCHA
PTER 7:
Suggestio
ns &
Troublesh
ooting
TipsCHAP
TER 8:
Bibliograp
hy
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TYPES OF
BANKS

BANKS IN
INDIA
OVERVIE
W OF
BANKING
INDUSTR
Y IN
INDIA
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The major
participants of
the Indian
financial
system are
thecommercial
banks, the
financial
institutions
(FIs),
encompassing
term-lending
institutions,
investment
institutions,
specialized
financial
institutionsand
the state-level
development
banks, Non-
Bank Financial
Companies(NB
FCs) and other
market
intermediaries
such as the
stock brokers
andmoney-
lenders. The
commercial
banks and
certain variants
of NBFCs
areamong the
oldest of the
market
participants.
The FIs, on the
other hand,
arerelatively
new entities in
the financial
market
place.Bank of
Hindustan, set
up in 1870,
was the earliest
Indian Bank
.Banking in
India on
modern lines
started with the
establishment
of
three presidenc
y banks under
Presidency
Bank's act 1876
i.e. Bank of
Calcutta,Bank
of Bombay and
Bank of
Madras. In
1921, all
presidency
banks
wereamalgamat
ed to form the
Imperial Bank
of India.
Imperial bank
carried
outlimited
central banking
functions also
prior to
establishment
of RBI.
Itengaged in all
types of
commercial
banking
business except
dealing
inforeign
exchange.Reser
ve Bank of
India Act was
passed in 1934
& Reserve
Bank of India
(RBI) was
constituted as
an apex bank
without major
governmentow
nership.
Banking
Regulations Act
was passed in
1949. This
regulation brou
ght Reserve
Bank of India
under
government
control. Under
the act,RBI got
wide ranging
powers for
supervision &
control of
banks. The
Actalso vested
licensing
powers & the
authority to
conduct
inspections in
RBIIn 1955,
RBI acquired
control of the
Imperial Bank
of India, which
wasrenamed as
State Bank of
India. In 1959,
SBI took over
control of
eight private
banks floated in
the erstwhile
princely states,
making them as
its100%
subsidiaries.RB
I was
empowered in
1960, to force
compulsory
merger of
weak banks
with the strong
ones. The total
number of
banks was thus
reduced
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from 566 in
1951 to 85 in
1969. In July
1969,
government
nationalised
14 banks
having
deposits of
Rs.50 crores &
above. In
1980,
governmentac
quired 6 more
banks with
deposits of
more than
Rs.200
crores. Nationa
lisation of banks
was to make
them play the
role of catalytic
agentsfor
economic
growth. The
Narsimham
Committee
report
suggested
wideranging
reforms for the
banking sector
in 1992 to
introduce
internationallya
ccepted banking
practices.The
amendment of
Banking
Regulation Act
in 1993 saw the
entry of new
private sector
banks.Banking
Segment in
India functions
under the
umbrella of
ReserveBank of
India - the
regulatory,
central bank.
This segment
broadly
consistsof:Com
mercial;
BanksCo-
operative Banks
Commercial
Banks
The commercial banking structure in India consists of:

Scheduled Commercial Banks

Unscheduled BanksScheduled commercial Banks constitute those banks which
have beenincluded in the Second Schedule of Reserve Bank of India(RBI) Act,
1934.RBI i n t ur n i ncl udes onl y t hose banks i n t hi s schedul e whi ch
sat i sf y t hecriteria laid down vide section 42 (60 of the Act. Some co-
operative banksare scheduled commercial banks albeit not all co-operative banks
are. Beinga part of the second schedule confers some benefits to the bank
in terms of access to accomodation by RBI during the times of liquidity
constraints. Atthe same time, however, this status also subjects the bank certain
conditionsand obligation towards the reserve regulations of RBI. This sub
sector can broadly be classified into:1 . P u b l i c s e c t o r
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2 . P r i v a t e s e c t o r 3 . F o r e i g n
b a n k s .
CO-OPERATIVE BANKS
T h e r e a r e t w o m a i n c a t e g o r i e s o f t h e c o - o p e r a t i v e
b a n k s . (a)
Short term lending oriented co-operative Banks
- wi t hi n t hi scategory there are three sub categories of banks viz state co-
operative b a n k s , Di s t r i c t c o - o p e r a t i v e b a n k s a n d Pr i ma r y
Ag r i c u l t u r a l c o -
o p e r a t i v e
s o c i e t i e s
. (b)
Long term lending oriented co-operative Banks
- wi t h i n t h e second category there are land development banks at three levels
statelevel, district level and village level.The co-operative banking structure in
India is divided into followingmain 5 categories:
(Visit us again for details of each category)
1. Primary Urban Co-op Banks:2. Primary Agricultural Credit Societies:3. District
Central Co-op Banks:4, State Co-operative Banks:5. Land Development Banks:
BANKS IN INDIA
s
S. N.
Public Sector Banks
Private SectorBanksForeign Banks
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1.2.3.4.5.6.7.8.9.10.1112.13.14.15.16.17.18.19.20.21.Allahabad Bank Andhra
Bank Bank of BarodaBank of IndiaBank of MaharashtraCanara Bank Central Bank
of IndiaCorporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental
Bank of CommercePunjab and Sind Bank
Punjab National Bank
Syndicate Bank UCO Bank Union Bank of IndiaUnited Bank of IndiaVijaya
Bank IDBI Bank Bank of Punjab Ltd.Centurion Bank Ltd.Development Credit
Bank Ltd.HDFC Bank Ltd.ICICI Bank Ltd.IndusInd Bank Ltd.Kotak Mahindra
Bank Ltd.UTI Bank Ltd.Yes Bank LtdBank of Rajasthan Ltd.Dhanalakshmi Bank
Ltd.Federal Bank LtdING Vysya Bank Ltd.Jammu and Kashmir Bank
Ltd.Karnataka Bank LtdKarur Vysya Bank LtdRatnakar Bank LtdSBI Commercial
andInternational Bank LtdSouth Indian Bank LtdUnited Western Bank LtdABN-
AMRO Bank N.VAbu Dhabi Commercial Bank LtdAmerican Express Bank
Ltd.BNP ParibasCitibank N.ADBS Bank LtdHSBC Ltd.Standard Chartered
Bank 1 1 P
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ABOUT PUNJAB NATIONAL BANK

HISTORY OF PNB

VISION & MISSIONA SAGA OF EXCELLENCE IN BANKING
E
st abl i shed i n 1895 at Lahor e, undi vi ded I ndi a, Punj ab Nat i onal
Bank (PNB) has the distinction of being the first Indian bank to have been
startedsolely with Indian capital. The bank was nationalized in July 1969
along
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with 13 other banks. From its modest beginning, the bank has grown in sizeand
stature to become a front-line banking institution in India at presentA
professionally managed bank with a successful track record of over
110years.Largest branch network in India - 4668 Offices including 238
ExtensionCounters spread throughout the country.S t r a t e g i c b u s i n e s s
a r e a c o v e r s t h e l a r g e I n d o - Ge n e t i c b e l t a n d
t h e metropolitan centres.Ranked as 248th biggest bank in the world by Bankers
Almanac, London.Strong correspondent banking relationships with more than 217
international banks of the world.More than 50 renowned international banks
maintain their Rupee Accountswith PNB.Well equipped dealing rooms; 20
different foreign currency accounts aremaintained at major centres all over
the globe.Rupee drawing arrangements with M/s UAE Exchange Centre,
UAE,
M/s AlFardan Exchange Co. Doha,
Qatar
, M/s Bahrain Exchange Co,
Kuwait,
M/sBahrain Finance Co,
Bahrain
, M/s Thomas Cook Al Rostamani Exchange
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Co.
Dubai, UAE,
and M/ s Musandam Exchange,
Ruwi , Sul t anat e of Oman.
ABOUT PUNJAB NATIONAL BANK
Wi t h o v e r 3 8 mi l l i o n s a t i s f i e d c u s t o me r s a n d 4 6 6 8 o f f i c e s ,
PNB h a s continued to retain its leadership position among the nationalized
banks. The
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bank enj oys st r ong f undament al s, l ar ge f r anchi se val ue and good
br andimage. Besides being ranked as one of India's top service brands,
PNB hasr emai ned f ul l y commi t t ed t o i t s gui di ng pr i nci pl es of
sound and pr udent banking. Apart from offering banking products, the bank
has also entered thec r e d i t c a r d & d e b i t c a r d b u s i n e s s ; b u l l i o n
b u s i n e s s ; l i f e a n d n o n - l i f e i n s u r a n c e b u s i n e s s ; Go l d c o i n s &
a s s e t ma n a g e me n t b u s i n e s s , e t c . Since its humble beginning in
1895 with the distinction of being the first I ndi an bank t o have been
st ar t ed wi t h I ndi an capi t al , PNB has achi eved significant growth in
business which at the end of March 2009 amounted toRs 3, 64,463 crore. Today,
with assets of more than Rs 2, 46,900 crore, PNBis ranked as the 3rd largest
bank in the country (after SBI and ICICI Bank)and has the 2nd largest
network of branches (4668 including 238 extensioncounters and 3 overseas
offices).During the FY 2008-09, with 39% share of l o w c o s t d e p o s i t s ,
t h e b a n k a c h i e v e d a n e t p r o f i t o f R s 3 , 0 9 1
c r o r e , maintaining its number ONE position amongst nationalized banks. Bank
hasa strong capital base with capital adequacy ratio as per Basel II at
14.03%with Tier I and Tier II capital ratio at 8.98% and 5.05%
respectively as onMarch09. As on March09, the Bank has the Gross and
Net NPA ratio of only 1.77% and 0.17% respectively. During the FY
2008-09, its ratio of priority sector credit to adjusted net bank credit at
41.53% & agriculturec r e d i t t o a d j u s t e d n e t b a n k c r e d i t a t
1 9 . 7 2 % wa s a l s o h i g h e r t h a n t h e r e s p e c t i v e
n a t i o n a l g o a l s o f 4 0 % &
1 8 % . PNB has always looked at technology as a key facilitator to
provide better cust omer ser vi ce and ensur ed t hat i t s I T st r at egy
f ol l ows t he Busi ness strategy so as to arrive at Best Fit. The bank has
made rapid strides in thisdirection. Along with the achievement of 100% branch
computerization, oneof the major achievements of the Bank is covering all
the branches of the
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Bank under Cor e Banki ng Sol ut i on ( CBS) , t hus cover i ng 100% of
i t s b u s i n e s s a n d p r o v i d i n g An yt i me An ywh e r e b a n k i n g
f a c i l i t y t o a l l customers including customers of more than 2000 rural
branches. The bank has also been offering Internet banking services to the
customers of CBS branches like booking of tickets, payment of bills of
utilities, purchase of airline tickets etc. Towards developing a cost effective
alternative channelsof del i ver y, t he bank wi t h mor e t han 2150 ATMs
has t he l ar gest ATMnetwork amongst Nationalised Banks.With the help of
advanced technology, the Bank has been a frontrunner inthe industry so
far as the initiatives for Financial Inclusion is concerned.With its policy
of inclusive growth in the Indo-Gangetic belt, the Banksmission is
Banking for card based technology enabled Financial Inclusionwith the help of
Business Correspondents/Business Facilitators (BC/BF) soa s t o r e a c h
o u t t o t h e l a s t mi l e c u s t o me r . Th e BC/ BF wi l l a d d r e s s
t h e outreach issue while technology will provide cost effective and
transparentservices. The Bank has started several innovative initiatives
for marginalgroups like rickshaw pullers, vegetable vendors, diary farmers,
constructionworkers, etc. The Bank has already achi eved 100% financial
inclusion in21,408 villages.Backed by strong domestic performance, the
bank is planning to realize itsglobal aspirations. In order to increase its
international presence, the Bank continues its selective foray in international
markets with presence in HongKong, Dubai, Kazakhstan, UK, Shanghai,
Singapore, Kabul and Norway. Asecond branch in Hong Kong at Kowloon
was opened in the first week of April09. Bank is also in the process of
establishing its presence in China, Bhut an, DI FC Dubai , Canada and
Si ngapor e. The bank al so has a j oi nt
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venture with Everest Bank Ltd. (EBL), Nepal. Under the long term
vision,Bank proposes to start its operation in Fiji Island, Australia and
Indonesia.Bank cont i nues wi t h i t s goal t o become a househol d
br and wi t h gl obal expertise.Amongst Top 1000 Banks in the World, The
Banker listed PNB at 250th place. Further, PNB is at the 1166th position
among 48 Indian firms makingit to a list of the worlds biggest companies
compiled by the US magazineForbes.
HISTORY OF PUNJAB NATIONAL BANK
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1895-
PNB established in Lahore by
Lala Lajpat Rai
.
1904-
PNB established branches in Karachi and Peshawar.
1939-
PNB acquired Bhagwan Dass Bank Limited.
1947-
Partition of India and Pakistan at Independence. PNB lost its premises in Lahore,
but continued to operate in Pakistan.
1960-
PNB amalgamated Indo-Commercial Bank Limited(established in 1933) in a
rescue.
1961-
PNB acquired Universal Bank of India.
1963
- The Government of Burma nationalized PNB's branch inRangoon (Yangon).
1965
- After the Indo-Pak war the government of Pakistan seized allthe offices in
Pakistan of Indian banks, including PNB's heado f f i c e , wh i c h ma y
h a v e mo v e d t o Ka r a c h i . PNB a l s o h a d branches in East Pakistan
(Bangladesh).
1969-
The Government of India nationalized PNB and 13 other major banks on 19th July,
1969.
1978-
PNB opened a branch in London.
1988-
PNB acqui r ed Hi ndust an Commer ci al Bank Li mi t ed i n arescue.
1993-
PNB acquired New Bank of India, which the Government of India had nationalized
in 1980.
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1998-
PNB set up a representative office in Almaty, Kazakhstan.
2003
- P N B t o o k o v e r N e d u n g a d i B a n k ( e s t a b l i s h e d
t h e b a n k i n 1899), the oldest private sector bank in Kerala. It
wasincorporated in 1913 and in 1965 had acquired selectedassets and deposits of
the Coimbatore National Bank. At thetime of the merger with PNB, Nedungadi
Bank's shares hadzero value, with the result that its shareholders received
no payment for their shares.
VISION
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"To be a Leading Global Bank with Pan India footprints and become
ahousehold brand in the Indo-Gangetic Plains providing entire range
of financial products and services under one roof"

MISSION
"Banking for the unbanked
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FINANCIAL PERFORMANCE OF PNB

AWARDS & RECOGNITION

PEST ANALYSIS

SWOT ANALYSISFinancial Performance of the Bank
Punjab National Bank continues to maintain its frontline position retained its
NUMBER ONE
position among the nationalized banks in terms of number
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of branches, Deposit, Advances, total Business, operating and net profit
inthe year 2008-09. The impressive operational and financial performance
has been brought about by Banks focus on customer based business with thruston
SME, Agr i cul t ur e, mor e i ncl usi ve appr oach t o banki ng; bet t er
asset liability management; improved margin management, thrust on recovery
andi n c r e a s e d e f f i c i e n c y i n c o r e o p e r a t i o n s o f t h e Ba n k . Th e
p e r f o r ma n c e highlights of the bank in terms of business and profit are shown
below:P a r a m e t e r s M a r
' 0 7 M a r ' 0 8 M a r ' 0
9 C R A R O p e r a t
i n g
P r o f i t * 3 6 1 7 4
0 0 6 5 7 4 4 2 6 . 0 2
N e t
P r o f i t * 1 5
4 0 2 0 4 9 3 0 9
1 4 1 . 6 7 D e p
o s i t 1 3 9 8 6 0
1 6 6 4 5 7 2 0 9 7
6 0 2 2 . 4 7 A d v
a n c e 9 6 5 9 7 1
1 9 5 0 2 1 5 4 7 0
3 2 6 . 5 5 T o t a l
B u s i n e s s 2 3 6 4 5 6
2 8 5 9 5 9 3 6 4 4 6 3 2 4
. 1 5 (Rs.Crores)

Respective figure for the corresponding financial year
AWARDS & RECOGNITIONS
"Best IT Team of the Year Award"-
At the IDRBT Banking Technology awards for the year 2005-06.
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SKOTCH Challenger Award-
For Change Management for the year 2005-06
Best IT User in Banking & Financial Services Industry 2004
By NASSCOM in partnership with Economic Times.
Golden Peacock Award-
For Excellence in Corporate Governance - 2005 by Institute of Directors.
FICCI's Rural Development Award-
For Excellence in Rural Development 2005
Skotch Challenger Award for Exemplary use of Technology
For becoming a pioneer in Public Banks 2005
Golden Peacock National Training - 2004 & 2005
By Institute of Directors
National Award for Excellence in SSI Lending
Ranked 2nd for 4 consecutive years - 2002, 2003, 2004 & 2005
Banking Technology Awards 2004 Runner up in 'Best IT Team of theYear Award
2005'
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Jointly Adjudged by IBA, Finacle & TFCI
Money Outlook Award - 2004Runner up in 'Best Bank (public Sector) of the year
Award' 2005Niryat Bandhu Gold Trophy
For excellence in export performance for 3 consecutive years 2001, 2002 &2003
by Federation of Indian Exporters Organization (FIEO)
21st Amongst Top 500 Companies
By the leading Financial Daily the Economic Times, June 2005
9th amongst India's Top 50 Most Trusted
A.C Nielson Survey, The Economic Times Dec 2004
Service Brands 3rd Rank amongst Banking Sector in India 323rd Rank in the
World
The Bankers' Almanac, January 2006
368 amongst Top 1000 Global Banks
The Banker, London July 2005
PEST ANALYSIS
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SWOT ANALYSIS
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Objective
Analysis of
PNBStrength
s

Wide network

Large no. of customers

Fast adaptability totechnology

Brand recognition

Excellent Training
Weaknesses

Opportunities

Fast growingIndianeconomy

High growth in bankingsector

Liberal markets

Micro financing

Home to home banking services

Diversificationtowards other field

Globalization

Decentralizeddecision making

Awards &Incentives
Threats

Large no. of market players

Providing better services

Building long termcustomer relationships

Fast Decision making

Competitive edge

Changing
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STRUCTURE OF THE ORGANISATION

HIERARCHY

MANAGEMENT OF PNB

ABOUT M.D. & CHAIRMAN SINCE INCEPTIONORGANISATIONAL
STRUCTURE
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Bank has its Corporate Office at New Delhi and supervises 58
CircleOf f i ces under whi ch t he br anches f unct i on. The del egat i on
of power s i s decentralised upto the branch level to facilitate quick decision
making.
HIERARCHY
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HEAD OFFICE
7 Bhi khai Cama Pl ace New Del hi - 110026CGM OFFICESCIRCLE
OFFICESBRANCHES

MANAGEMENT OF PNB
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Executive Director(ED)Chief General Managers (CGM)General Managers
(GM)Deputy GMAssistant GMChief ManagersSenior
ManagersManagersOfficersClerical/ SubordinatesChairman
Name DesignationM V Tanksale
Executive Director
Nagesh pyadh
Executive Director
Smt. Ravneet kaur
Govt. of India Nominee Director
L.M Fonseca
RBI Nominee Director
S. R. Khurana
Director rep. C.A. Category
P.K. Nair
Officer Employee Director
Mohan Lal Bagga
Workmen employee Director
Mushtaq A Antulay
Part time non Official Director
Gautam P. Kandelwal
Part time non Official Director
Vinod Kumar Mishra
Part time non Official Director
Tribhuwan Nath Chaturvedi
Share Holder Director
Devinder Kumar Singla
Share Holder Director
G R Sundaravadivel
Share Holder Director
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2 4 S . S .
K o h l i 2 0
0 0
2 0 0 5 2 5 S
. C .
G u p t a 2 0
0 5 -
2 0 0 7 2 6 D r .
K . C .
C h a k r a b a r t y 2 0 0
7 2 0 0 9

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FEATURES OF HOME LOAN

HOME LOAN INDIA

TYPES OF HOME LOAN

WHY TAKE A HOME LOAN

CHECK LIST FOR HOME LOAN

RBI DIRECTIVES FOR HOME LOAN
HOME LOAN
Home l oans ar e pr ovi ded based on t he mar ket val ue, mai nl y
est i mat i ongiven by banks or the registration value of the property.
Availing varioustypes of house loans to suit your individual needs at the lowest
rates & easyf i n a n c i n g c a n n o w f u l f i l l t h e n e e d
f o r a h o u s e o f y o u r o w n . Home loan is not a one-time
decision; do review the market periodically before availing them. Today
there are unlimited numbers of banks in the
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country wanting to give out Home loans. Given this scenario, it may
seemeasy getting yourself a loan. But is it really??Buyers tend to make
mistakes while entering into deals, which may not be beneficial for them, so
better compare all the variables before signing a loana g r e e me n t b y
d i f f e r e n t b a n k s . Ho we v e r t h e l o a n a g r e e me n t s h o u l d
b e finalized only after reading the terms and conditions carefully.You can apply
for a Home loan even before you select your property. Thel o a n a mo u n t
wo u l d b e s a n c t i o n e d o r a p p r o v e d f o r yo u , b a s e d o n
yo u r repayment capability.
Features of house loan:
Purpose: For purchase of house from builder / resale and construction /extension
of existing house. Loan amount: You can avail for Home loans need based
depending onyour eligibility, income and repayment capacity. Security: Home
loan is a secured loan wherein collateral are required.
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Loan tenor: The maximum loan tenure is 25 years.
Pl anni ng t o avai l a home l oan, you must adhere underneat h
poi nt s:
Fi r st l y, t ake your own t i me and eval uat e your expenses and do a
mar ket survey about the property buying process. Buying a house, which
is way beyond your range, could affect you financially; banks help in financingyour
dream home via home loans.1.
Eligibility
Banks det er mi ne your el i gi bi l i t y bas ed on your r epa yment capaci t y
anddiscuss about the loan amount up front. The eligibility for acquiring a homeloan is
augmented by clubbing income of your father/spouse/mother/son, byclearing your
outstanding debts, by stretching your loan tenure, Salariedindividuals can increase their
eligibility by showing their performance linkedincome or bonus earned.Secondly, Do your own
analysis and check the impact of your repayment of home loan on your monthly expenditure, as
a thumb rule, it

s recommendedto make sure the EMI of your home loan do not exceed more than 50%
of your gross monthly income.2.
Interest rates
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An i mpor t ant f act or t hat goes i nt o your EMI cal cul at i ons i s t he
i nt er es t rates, which may vary from bank to bank, so do compare them. Also
do acomplete and detailed analysis of the various options like the interest
ratesi.e. fixed and floating rate of interest.Thi r dl y, i f t wo banks gi ve you
t he same amount of l oan but at di f f er ent i n t e r e s t r a t e s d o
y o u r m a t h a n d w o r k o u t w h a t ' s b e s t f o r
y o u . a)
Fixed interest loans
Charge an interest, which remains the same through out the tenure of
theloan. This means that the consumer is immune to market risk or the
possibleupward movement in the interest rates.Hence, fixed rate is a good
option when the interest rates are expected tomove up in the future. b)
Floating rate loans
A consumer is exposed to market risk and his gain or loss depends on
theinterest rate condition prevailing in the market. Floating rate is beneficial
if t h e i n t e r e s t r a t e f a l l s i n t h e f u t u r e . A f l o a t i n g r a t e i s
c o n s i d e r e d n o n - transparent and is also known as 'adjustable rate'.Fourthly,
if you decide to opt for a fixed rate loan, you can still switch to afloating
rate loan in the future and vice versa as and when rates go in your favour
and if you do decide to switch, you should take into account the costof doing so
and the interest rate benefits of switching.
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For a given interest rate, loan with a daily or monthly reducing balance
is better than an annual reducing balance loan. Interest rates vary depending onthe
tenure of the loan, the amount of the loan and your personal profile. 3.
Insurance covers (an added cost)
Also, many banks may insist on getting your home insured to safeguard
their interest. There are various kinds of insurance covers available for you.
Apartfrom getting the mandatory ones you should try to get insurance as per
your ci r cumst ances. You al so have a choi ce of get t i ng i nsur ed
f r om anot her company without any objection from your bank.4.
Other costs
T h e i n t e r e s t r a t e s a n d E MI s a r e n o t t h e o n l y c o s t
f a c t o r . R s . 1 3 5 0 / documentation charges and 0.90% + service tax.
Processing fees, administrationfees, valuation fee, legal fee, is to be paid when you
apply for a loan and other fees paid at closing.Make sure you work out as to
how much these other costs add up to. So eventhough the interest rate may
be lower, it usually adds up to being expensive. If t he EMI s may come out a
l ot mor e t han what you can af f or d on a mont hl y basi s; t r y t o r edo
t he mat h wi t h changes i n t he t enur e and l oan amount ( i f possible).
5. Advance EMI
Advanced EMI is the number of equated monthly installments in the form of post
dated cheques, paid out in advance at the time of disbursement of loan.
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6. Document required
Most importantly, all deals and offers agreed upon are supported by
relevant papers. Self employed and salaried require different documents to
supportthe deal.So make sure you always ask for a letter on the banks letterhead
mentioningt he l i kes of , exact r at e of i nt er est , pr ocessi ng f ees, pr e -
payment char ges along with interest-schedule.Be f o r e s i g n i n g t h e
d o c u me n t s , ma k e s u r e yo u r e c h e c k a l l t e r ms a n d conditions.Do
make sur e you under st and and agr ee wi t h each of t he cl auses i n
t hedocuments. Do not sign any blank documents. Even if it takes you a
fewhours to fill-up the form, please do so.Do not leave anything for the executive
to fill-up. It's always better to get al e g a l o p i n i o n f r o m s o me o n e o n
y o u r l o a n p a p e r s . Do n o t u n d e r a n y ci r cumst ance gi ve any
f al se i nf or mat i on. Thi s may amount t o f r aud and could land you in
trouble.
7. Penalties
Once you have received the loan do your best to pay it back asqui ckl y as
possi bl e. But t hi s ear l y payment mi ght i nvi t e a pr e -
payment clause.Banks make their money off the interest they charge and the
sooner you pay back a loan the less money you will have to pay in interest.
When it comes
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to Home loans, penalties are binding, like if you chose to pay up your entiremoney
before the tenure, a Pre-payment penalty is charged. So you shouldknow
about such penal t i es bef or ehand t o avoi d f ut ur e
mi sunder st andi ng between you and the bank.
8. Home loan glossary
Confused in the
Home Loan
jargon? Our glossarywill help you in understanding the basic home loan
related terms. Browsethrough the glossary or search for a term through
the menu to resolve anydoubts.
Glossary of Home Loan termsABCDEFGHIJK LM
NOPQR STUVW X Y Z 9. Acceptance
Letter
Accept ance l et t er i s t he l et t er t hat a bor r ower or appl i cant
pr ovi des onreading the terms of the issue; and communicate his willingness to
accept theloan by way of an acceptance letter within a particular time
frame whichvaries between 1-3 months from the date of the sanction letter and
also paythe requisite administrative fee.
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HOME LOAN IN INDIA
It is definitely one of the major things that you can board on in
your lifetime. The bad news is: however is that not everyone in this globe is
likeyou, loaded enough (financially, of course) to be able to build a house
assoon as he wants to.Whether you are Non Resident Indian or Resident of
India, and you arethinking to start your journey of buying a new house,
looking to move to an e w h o u s e , i n v e s t i n g i n p r o p e r t y o r a r e
l o o k i n g f o r wa r d t o r e f i n a n c e , Consider answering these questions to
yourself:
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partly in your hands, the greater part relies on the efficiency of your
chosenmortgage company.
TYPES OF HOME
LOAN
Owni ng a pi ece of l and or pr oper t y i s a l i f et i me dr eam f or
ever yindividual. There are many home loans provider in the market to make
your dream come true. But before you opt for any home loan provider,
you needt o consi der cer t ai n f act or s r el at ed t o pr oper t y t hat you
ar e i nt er est ed i n buying and also about the salient features offered by a
home loan provider and also study some Home Loans and Home Insurance
FAQs which helps inapplying a Home Loan in India.
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And the most important thing is you should know about each and every termrelated
with Home Loans before applying for a Loan. It is always advisableto consult a
home loan expert or consultant before applying for a home loanor purchasing a
property.Yo u c a n t a k e d i f f e r e n t t yp e s o f h o me l o a n s l i k e
Br i d g e Lo a n s , Ho me const r uct i on Loans, Home Equi t y Loans,
Home Ext ensi on Loans, Home I mp r o v e me n t Lo a n s , La n d
Pu r c h a s e Lo a n s e t c f o r d i f f e r e n t s c h e me s available in the
market. There are different types of home loans tailored tomeet your needs.

Home Purchase Loans:
These ar e t he basi c f or ms of home l oansused for purchasing of a new
home.

Home Improvement Loans
: These loans are given for implementingrepair works, healing and renovations in a
home that has already been purchased.

Home Const ruct i on Loans:
T h e s e l o a n s a r e a v a i l a b l e f o r t h e construction of a new home.

Home Extension Loans:
These l oans ar e gi ven f or expandi ng or extending an existing home. For
e.g.: addition of an extra room etc.

Home Conversion Loans:
These loans are available for those whoh a v e f i n a n c e d t h e
p r e s e n t h o me wi t h a h o me l o a n a n d wi s h t o purchase and
move to another home for which some extra funds arer e q u i r e d .
T h r o u g h h o me c o n v e r s i o n l o a n , t h e e x i s t i n g l o a n i s
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t r ansf er r ed t o t he new home i ncl udi ng t he ext r a amount
r equi r ed, eliminating the need of pre-payment of the previous loan.

Land Purchase Loans
: These loans are available for purchasing landfor both construction and investment
purposes.

Bridge Loans:
Bridge loans are designed for people who wish to sellthe existing home and
purchase another one. The bridge loans helpfinance the new home, until a
buyer is found for the home.
Why take a Home Loan?
What's an average middle class Indian's most cherished dr eam? A date
inworld trips in islands with Aishwarya Rai in complete solitude. This wouldseem
t o be t he answer f r om t he maxi mum number of epi sodes of
KaunBanega Crorepati (KBC), despite recently of course, when she has
decidedto change her fortunes first with Abhishek!Jokes apar t , pur chasi ng
and movi ng i nt o a dr eam house woul d gener al l yrank among the top
three things on the wish list of most people. After all itswhat been proved by
Maslows Law of Hierarchy as well. That entire househunting every few years,
grumpy landlords, killing rents would be a thing of
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the past. Hey, you even get to use nails to hang your favorite paintings
and pictures. Dont you???Taking a home loan nowadays has become very
simpler. The RBI has beenregularly slashing interest rates, with the result
that housing finance loanst h a t c a me a t a n i n t e r e s t r a t e o f 1 6 . 5 %
t o 1 8 % f o u r ye a r s a g o a r e n o wa v a i l a b l e a t 1 1 . 5 % t o 1 3 % o r
l o we r . Ea c h y e a r t h e Fi n a n c e Mi n i s t e r ' s generosity during the
Budget seems to be solely concentrated for the housingsector and construction
sector. The Budget 2000's allowed interest paymentup to Rs 1 lakh and
principal payment of Rs 20,000 to be exempted fromi n c o me t a x . To
t o p i t a l l , t h e Ho u s i n g Fi n a n c e Co mp a n i e s ( HFCs )
a r e aggressively wooing customers. Now, when the sun shines, its the best timeto
make hay. Isnt it?
Check list for Home Loans
If you have arrived here by the help of search engine, we pre assume
thatyou are seeking some home loans to purchase a home or on the look out
for some information related to Home loans or Home Loan Types or you
mustread some Home Loan Articles. Hereby, we present to you the
home loandocuments checklist
that you need to ensure is with you, before you applyfor a home loan. A
basic checklist for home buyers like proper and clear titleand correct
proposition will help you make a safe and informed purchase.There are
other
home loan tools
like
calculators
suitably devised to assistyou.
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Confirmation of Income

If you are a salaried person, please provide two recent consecutive paysl i ps or a
copy of your empl oyment cont r act or a l et t er f r om your employer.

I f yo u a r e s e l f - e mp l o ye d , p l e a s e p r o v i d e c o p i e s o f yo u r l a s t
t wo Financial Accounts as prepared by your accountant.

Appointment Letter

Salary Certificate

Retainer ship Agreement, if appointed as a consultant

FORM 16 issued by the employer in your name.

Last t hr ee year s i ncome t ax r et ur ns dul y f i l ed and cer t i f i ed by
t heIncome Tax Authorities

Similar Document -separately for each co-applicant.
Employment Proof


Identity card issued by your employer

Visiting card
Age Proof


Passport

Voter's ID card

PAN card

Ration card

Employer's Identity card

School leaving certificate
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Birth certificate
Residence Proof


Ration card

Passport

PAN card

Rent agreement, if you are staying currently on rent

Bank Pass book

Allotment letter from your company if you are residing in
companyquarters.
Name Change Proof (If Applicable)
A copy of t he of f i ci al gazet t e b. A copy of a newspaper
adver t i sement publicizing the name change c. Marriage certificate
Investment Proof (If Applicable)


Bank st at ement f or t he l ast si x mont hs of al l oper at i ng and
sal ar yaccounts

Bank statements for the last six months of all current accounts, if self-employed.

Any other photocopies of investments held, if required by the Bank
Property Title Proof


Or i gi nal Sal e agr eement wi t h Bui l der / Devel oper dul y
r egi st er ed, Registration receipt
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Tripartite agreement from builder/developer

Land document s i ndi cat i ng owner shi p, e. g. - Phot ocopi es of
t i t l edeeds, if applicable

A certificate by the legal advisor of the builder to the effect that
the bui l der has a good r eput at i on and i t i s f r ee f r om encumbr ance
andother charges.

A certificate from builder's Chartered Accountant certifying that
the builder has not mortgaged the property anywhere else.

Certified true copy of approved plan.

Copies of receipts of payments made to builder/developer.

Allotment letter

Possession letter

Lease agreement, if applicable (Property bought from a
developmentauthority)

Mortgage deed if the Bank opts for a registered mortgage.

No Objection Certificate from the developer, society or developmentauthority as
applicable

Personal Guarantees, if applicable.

I n case of al t er nat e or addi t i onal secur i t y, document s f or t he
samedepending upon the security details.

For self-construction: Approved plans and clearance certificates alongwith
estimates

Post dated cheques for the EMIs.
Confirmation of Rental Income
Copy of the existing tenancy agreement, or a rental appraisal, from a
localreal estate agent signed by branch manager, or rental manager.
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Deposit or Investments

Evidence of your deposit or investment funds, i.e. a bank statement or term deposit
receipt.

For low equity loans (5-19% deposit), copy of your savings
accountstatements over the last six months.
Sale and Purchase Agreement

If you are planning to buy a property, please provide a copy of
thesuccessful sale and purchase agreement signed by both you and
thevendor.

If you are planning to sell or have already sold your existing property, please
provide a copy of that property's sales and purchase agreement.
New Customer to the banks of India


I f you ar e r ef i nanci ng f r om anot her bank pl ease pr ovi de copi es
of your loan statements covering the last six months.

Please provide copies of your account statements covering the last sixmonths from
your current bank.

Please provide copies of your identification and if you have arrived int he
count r y wi t hi n t he l ast 5 year s, pl ease pr ovi de a copy of
your passport.
Government Valuation and rating System
A copy of the latest Government or Ratings Valuation is to be
provided.Depending on the age and value indicated in conjunction with the amount
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required to borrow, the Bank may require a Registered Valuation and your Banker
will advise you
New RBI Directive for Home Loans
The Reserve Bank of India (RBI) has in the latest directive asked the Indian banks
to be more "fair and transparent" while signing their agreements withthe
consumers. This has come following complaints from various consumer sections
regarding home loans.

It has emphasized on the fact that while giving a home loan, the banksshould not
tie their loans with their own prime lending rates (PLR) which often results
in pro-bank and against consumer interest.

Househol ds shoul d get cr edi t counsel i ng bef or e si gni ng any
l oana g r e e me n t . I n s u c h c a s e , b a n k s s h o u l d g i v e c r e d i t
c o u n s e l i n g t o customer before giving a loan. Any non-governmental
organizationcan also give independent credit counseling to small borrowers.
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Consumers often complain of not receiving benefits of falling interestrates as
banks tie their floating rate loans with its PLR and even whenrates fall, the banks
kept the PLR unchanged. But when interest ratesa r e h i k e d , t h e b a n k s
i n c r e a s e t h e b e n c h ma r k r a t e , t h u s ma k i n g customers pay a higher
rate and consequently increase the number of EMIs too. The RBI has asked the
banks to mend rules for the same.

Individual borrowers should ask for the exact tenure and EMI
whilet aki ng a f i xed r at e l oan. The RBI has al so r esol ved t o l ook
i nt o al l consumer complaints if it is bought to the regulator's notice.

The I RDA ( i nsur ance r egul at or ) has power s t o t ake act i on
agai nst banks if a customer feels cheated while buying an insurance product.On
its regulatory role, the RBI is trying to maintain a balance betweent h e e x t e n t
o f f r e e d o m g r a n t e d t o t h e b a n k s a n d t h e o b j e c t i v e s
o f governance.

RBI h a s ma d e i t ma n d a t o r y f o r a l l b a n k s - i n c l u d i n g p r i v a t e
a n d foreign banks - to offer a passbook to their customers with the addressand
telephone number of the nearest branch.
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Customers have often been harassed by banks' call centers where thereis no
accountability of the query made. The "do not call" registry hasa l s o b e e n
f l o u t e d b y b a n k s a s c u s t o me r s a r e b o mb a r d e d
wi t h unnecessary product offerings. The RBI has directed the Indian
Banks'Association to come out with a single "do not call" registry or when
acustomer adds his name to a single bank registry it should then
stopunsolicited calls from all banks.

On rising credit card frauds and wrong statements given by the banks,t h e RBI
h a s a s k e d t h e c u s t o me r s t o a p p r o a c h t h e o mb u d s ma n
t o redress their problems. This way the RBI feels would inculcate
moreconsumer friendly practices among Indian banks.
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Choosing the right home loan
I f yo u a r e p l a n n i n g t o b u y h o me , yo u n e e d t o k n o w a b o u t
h o me l o a n s processes, troubleshooting and how to choose the right home loan
for housethat falls within your budget. There are various types of home loans
offered by different financial institutions. You need to figure out which type of
homeloan is beneficial for you.
Types of Home Loans Available:


Home Equity Loans

Home Extension Loans

Home Improvement Loans

Home Purchase Loans

Land Purchase Loans

Mortgage LoansMany banks and financial companies offer home loans. But before
choosingany home loan option, consider few points as mentioned below.
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Property Types:
You should know more about type of property in lieu of which you seek
loan. There are loans offered by banks to Resident Indiansand NRIs for
ready property, under construction property, self-constructionand home
improvement.
Loan Tenure:
The l oans pr ovi ded by f i nanci al i nst i t ut i on ar e of f er ed i n t e n u r e s
o r p e r i o d o f ye a r s . Yo u s h o u l d c h e c k o u t t h e t e n u r e f o r
l o a n s available in the market. There are loan tenures available for upto
25 years.
Repayment Options
- You need to choose between fixed and floating ratehome loans. Many
banks and financial institutions will provide you with theoption of switching from
a floating rate home loan to a fixed rate home loanonce a year at no extra cost. But
you need to check out the facts first with theloan providing firm.
No Penalty option
- There are also no penalty option offered by few financecompani es. I n t hi s
mode, you can opt t o pr e - pay up t o 25% of your l oanevery year. Pre-
payment is permitted after a minimum of 6 months followingloan disbursal.
Tax Benefits
- You shoul d know t he r i ght of your t ax benef i t s on home loans.
Resident Indians are eligible for certain tax benefits on principal andinterest
components of a housing loan under the Income Tax Act, 1961.##
List of Premium Banks Offering Home Loans:


ICICI Bank - ICICI Bank Home Loan

HDFC Bank - Adjustable Rate Home Loan

Bank of India - Star Home Scheme
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Standard Chartered - Home Assist

State Bank of India - SBI Unique Housing Scheme

Bank of Baroda - Housing Offer

Citibank- Building & Renovation of HouseAlways check with a financial
home loan expert or financing company tounderstand home loan processes
and to avail the best bargain on your home purchase.

ELIGIBILITY
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DOCUMENTATION

EXTENT OF LOAN

RATE OF INTEREST

REPAYMENT & SECURITY

FEATURES & CONDITIONS OF PNB HOMELOANPNB HOME LOAN
Pu n j a b Na t i o n a l Ba n k p r o v i d e s i t s c u s t o me r s wi t h v a r i o u s
Ho me l o a n policies and features at highly competitive rates. They know the
needs of theIndian customers that they have to deal with, on a regular basis, and
providet h e p o l i c i e s a c c o r d i n g l y . T h e P NB H o me L o a n
c a t e r ma i n l y t o t h e requirement of the middle class individuals of
India, as Pnb itself is one of the leading public sector banks of the nation.The
PNB Home l oans ar e ver y easi l y avai l abl e, and have an even
easi er pr ocess of r epayment t hat i s gi ven over a pr ear r anged t i me
per i od. Thi s period of time is determined, when the PNB Home loans are being
finalizedand al ong wi t h t he l oans, t he buyer s get t he oppor t uni t y of
havi ng a l i f einsurance covered
against him.
The basic
grounds on
which the PNB
Homeloans are
provided are:

Extending,
repairing,
modification
and even
renovating of an
alreadyexisting
building or flat.
5 6 P
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Purchase or
building of a
new house or
flat.The basic
interest of the
PNB Home
loans may be
around 9.5%,
and the
time period
may vary from
a minimum of
5 years to a
maximum of
25
years.However
there is a
certain
limitation of the
loan amount
that an
individualmay
take from the
bank. The
maximum
amount of the
loan
amountsanction
ed under PNB
Home loans is
need based. It
generally takes
around7 days to
process the
PNB Home
loans, from the
day it has been
finalizedwith
the bank.Apart
from all these
details, the
PNB Home
loans also
enable us to
choose between
fixed and
floating rates
that may be
applicable from
time to
time,and keep
varying from
one time period
to another. As
far as the
eligibility
isconcerned, a
person
between the
age group of
18 to 60 years
may
bequalified to
apply for the
PNB Home
loans. Along
with this, it has
also to benoted
that the annual
income of the
individual, who
is applying for
the loan,must be
greater than or
equal to 1.2 Lac
INR.
Eligibility

Age of the
applicant must
be less than 60
years.

Existing home
loan borrower
can also apply
provided their
loanaccount is
regular and no
IR irregularity
persist.
Documents
Needed
5 7 P
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1.

Proof of identity

2. Proof of
income3. Proof
of residence4.
Bank statement
or Pass Book
where salary or
income is
credited.5.
Education
Certificate6.
Photos7. Salary
slip & form
168. Income tax
return last 3
years along with
balance
sheets.9. Assets
liabilities
statements.10.
Documents of
property.11.
Estimate of
construction.12.
Guarantor
Freehold
and
Leasehold
Property
1.The loan can
be granted
both for
freehold and
leasehold
property.2.In
case of
leasehold, loan
can be granted
on the basis of
power
of attorney
basis from
original allotee
where
DDA/PUDA/H
UDA
permitconversi
on of leasehold
into freehold
property
otherwise
advance is
not permitted
against plot
purchased on
Power of
Attorney basis.
Extent of
loan

For
construction/pur
chased of
house/flat 75%
of the cost
of construction
or purchase of
house/flat.

For carrying out
repairs/renovati
on/additions/alt
ernation: - 75%
of theestimated
cost subject to
maximum of
Rs. 20 lacs.
5 8 P
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Prashant
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Loan upto Rs.
20 lacs for
purchase of
land/plot

Loan is
available
maximum upto
Rs. 2 lacs for
furnishing.
Margin
L a n d
/ P l o
t 4 0 %
Const ruct i on
/ repai r/ addi t i
on25%
Rate of
I nterest
(Effective from
1
st
May 2009
BPLR 11.00%)
Housing
finance
toIndividuals
includingNRIS
/Flexible
HousingSchem
eFixed
option for
loansFloatin
g option for
loansUpto
20Lacs.Above
20Lacs.Upto
20lacs.Above
20Lacs.
( i )
u p t o 5
y e a r s 9 .
2 5 % 1 0 .
0 0 % 8 . 7
5 % 9 . 5 0
% (ii) Above 5
years & upto10
years1 0 . 0
0 % 1 0 . 2
5 % 9 . 0 0
% 9 . 5 0 % (
iii) Above 10
years &upto 20
years1 0 . 5
0 % 1 0 . 7
5 % 9 . 2 5
% 9 . 7 5 % (
iv) Above 20
years &upto 25
years1 0 . 7 5
% 1 1 . 0 0
% 9 . 5 0 %
1 0 . 0 0 %
5 9 P
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Loan is to be
repaid in EMI
within a period
of 25 years or
beforethe
borrower attains
the age of 65
years.
Security

Equitable/Regis
tered mortgage
of immovable
property.

Tripartite
agreement be
executed
amongst
Housing
Board/
DevAuthority /
Coop Society /
Builder the
borrower and
the bank
wheremortgage
cannot be
created
immediately.

Equitable
mortgage of
other
immovable
property or
pledge of
NSCetc. upto
125% of loan
amount if
property is
being purchased
from 1
st
P/A holder and
where there is
delay in the
execution of
Tripartiteagree
ment.

Verification of
security is
required once in
2 years.
Features

Loan can be
sanctioned by
branch/hub
near to the
present place
of work/posting
/residence of the
borrower.

Loan can be
sanctioned even
if property is in
the name of
wife/parents pro
vided that the
owner is made
co-borrower.

Loan can be
granted for 2
nd
house in the
same city.

Loan can be
granted for
purchase of
house for rental
purpose

For take over,
permission of
higher authority
is not required.
I mportant
Conditions
Loan cannot be
granted:
6 1 P
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For construction
in Un-
authorized
colonies.

If property is to
be used for
commercial
purpose.

Without
approved Map.

SUGGESTI
ONS &
RECOMM
ENDATIO
NS
6 2 P
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Prashant
Srivastava

TROUBLE
SHOOTIN
G TIPS
FOR
WOULD
BEHOME
LOAN
BUYERSS
UGGETIO
NS &
RECOMM
ENDATIO
NS
There are some
suggestions,
which I would
like to give the
private
banks,which I
noticed in my
project. This
are-
o
Banks should
improve the
quality of their
products
(Specially
Homeloan).
o
Most of the
private banks
and public
banks are much
aggressive
abouthome loan
than PNB. So,
PNB should
also be focus
and
aggressiveabout
its home loan
products.
o
In my project
period I notice
that many of
the hidden
costs
areaccumulate
with the
services, which
are not
informed to the
customersat the
first time, and
then customers
suffer many of
the problems.
So, banks
should disclose
all the fee
structure,
terms &
conditionsregar
ding the product
before making
sale.
o
In the bank
premises front
office
executives are
not co-operative
withthe
customers. So,
higher authority
should keep
control over
thesestypes of
activities.
6 3 P
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Prashant
Srivastava
o
Most the banks
believe in large
sales force than
the quality sales
force,which are
more
competitive.
So, banks
should improve
their
qualitysales
force, which
include the
competitive
sales personnel.
Troublesh
ooting
Tips for
Would Be
Home
Buyers
Past few years
have witnessed
a paradigm shift
in the scenario
for home
loanseekers.
However, things
for the
consumers were
fairly good till
mid-
2004.Property
prices have
been steady and
the interest rates
were at historic
lows.Undoubte
dly, the picture
has much
changed now.
Real estate in
India isgoing
through its own
boom, with
property prices
going higher
and higher
asthere is no
tomorrow.
Also, there is
no sign that
this rise in
underlying pro
perty prices is
going to slow
down soon.
This has
widened the
gap between
have and have
not for a home
loan
consumer.Thou
gh, there has
been a great
progress in the
financial status
of
differentincome
groups but there
are many other
hassles along
the way to add
to thewoes of an
interested home
buyer.With an
increase in loan
interest rates, it
has been
noticed that a
consumer gives
away a major
portion of his
increased
income as the
down
paymentand
later as EMI.
This is a story
with every next
typical
consumer in
ametropolitan
city. No wonder
that the dream
for owning a
home is on
theverge of
turning into a
mirage for most
middle class.
6 4 P
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Prashant
Srivastava

So what are the
options left
with a
prospective
home loan
consumer?


If you are
planning to
purchase a
home for the
purpose of your
ownresidence,
then don't make
your search a
wild goose
chase by
tryingand
wasting time in
the market.

If your dream
house requires
you to hunt a
treasure to buy
it, you
mayconsider a
smaller property
in the same
area.

But, if you are
deciding to buy
a house with the
intention of
selling itfor
quick profits,
then never
fasten the
process. Wait
for
theoverheated
property market
to cool.
Meanwhile,
work out your
budgetand
advantages
before treating
the property as
an investment.
Let's view the
top four
problems faced
by home loan
consumers
duringthe pre-
disbursement
process as well
as
troubleshooting
tips:Problem I:
Most times, the
desired home
loan amount is
not available or
if available,
then getting a
fixed rate of
interest is just
like striving
for impossible.
Moreover, there
are a few
financial
institutions that
provide
thehome loan
consumers with
a promising
interest rate.-
Get a promise
that if you don't
receive the
home loan
amount offered
youcan press
for a refund of
your processing
fee. Don't rely
on words but
take it in
writing or by
mail.
Problem II:
Generally,
there is no
guarantee that
you will get
your processin
g fee back if the
loan is not
sanctioned or if
the loan is
sanctionedthen
the individual
does not want
it.-
The situation
seems a little
complex unless
promised in
writing or
inadvance.
6 5 P
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Prashant
Srivastava


Problem III:
At times, loan
amount gets
restricted after
being
sanctioneddue
to lower
valuation of the
property by the
bank.-
You may ask
your lender to
get a valuation
done before the
sanction of
theloan so that
this does not
come as a
surprise
afterwards.
Else, the bank
will evaluate it
at one figure
and you will be
purchasing it at
another. For
that reason, it
is always
recommend
buying a
property from
a well
knownbuilder.
Problem IV:
Non
availability of
title documents
and/ or NOCs in
the
formatdesired
by the bank. Or,
problems with
any other legal/
title document.-
Most banks go
through your
legal documents
with a
discerning eye
if theyare
submitted along
with a home
loan
application
form. You are
required
tocheck with the
concerned
builder/ society/
authority about
the format of
the NOC that
plays a critical
role in the
procedure. If
they have a
different form
at, get that
cleared from
the bank to
avoid messy
disputes
and headaches
later.
6 6 P
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Prashant
Srivastava


6 7 P
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Prashant
Srivastava

BIBLIOG
RAPHY
BANKI NG
LAW AND
PRACTI CE- -
P. N.
VARSHNEYI
NDIAN CASES
IN
MARKETING -
-
NEELAMEGH
AM , S.WEB
SITES:www.pn
bindia.comwww
.guide2homeloa
n.comwww.goo
gle.com
6 8 P
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Prashant
Srivastava