SUMMER TRAINING

PROJECT REPORT
ON
“A DETAILED STUDY OF BOI
CAR LOAN”
SUBMITTED TO
BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES

GOVERNMENT OF NCT OF DELHI, DELHI – 92

[AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI]

IN PARTIAL FULFILMENT OF

MASTER OF BUSINESS ADMINISTRATION (MBA) – [2009-2010]

BY: UNDER THE SUPERVISION OF:

[AMIT KUMAR NANGLU] [Mr. GTVLN CHARYULU]

ROLL NO. 03811403909

1
 BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES

GOVERNMENT OF NCT OF DELHI, DELHI-92

[AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA

UNIVERSITY, DELHI]

CERTIFICATE OF ORIGIN
This is to certify that Mr. AMIT KUMAR NANGLU the bonafide student of
Master of Business Administration (MBA) Third Semester, in Bhai Parmanand
Institute of Business Studies (BPIBS), Govt. of NCT, Shakarpur, Delhi, has
worked under the able guidance and supervision of Mr. SK JAIN Sr. Manager
of BANK OF INDIA ,MAYUR VIHAR PHASE -1 BRANCH.

He was on training for the period of 6 weeks, starting from 22 nd June, 10 to 2nd
August, 10. This Summer Internship report on the topic “A DETAIL STUDY
OF BOI CAR LOAN” submitted in partial fulfillment of the requirements of
the program has the requisite standard for the partial fulfillment the post
Graduate Degree in MBA. To the best of our knowledge, no part of this report
has been reproduced from any other report and the contents are based on
original research.
Mr.GTVLN CHARYULU

AMIT KUMAR NANGLU (PROJECTGUIDE)

Roll No.03811433909 [MBA DEPARTMENT]

M.B.A., Third Semester

BPIBS, BPIBS,

Shakarpur, Delhi Shakarpur, Delhi

ACKNOWLEDGMENT

2
IT IS A PLEASURE TO RECORD MY THANKS AND GRATITUDE TO PERSONS AND
ORGANIZATION WHOSE GENEROUS HELP AND SUPPORT ENABLED ME TO
COMPLETE THIS PROJECT WITHIN THE STIPULATED TIME PERIOD.

MY SPECIAL THANKS ARE DUE TO Mr. SK JAIN (SR MANAGER) BANK OF INDIA ,
NEW DELHI FOR HIS ACTIVE HELP AND SUPPORT IN MAKING ME UNDERSTAND
THE BANKING PRODUCTS & SERVICES. I ALSO THANK TO Mr. PRADEEP KUMAR
AND BANK EMPLOYEES AND STAFF MEMBERS OF THE BRANCH FOR PROVIDING
ME THEIR HELP AND COOPERATION AT EACH STAGE.

I AM GREATLY INDEBITED TO ALL THOSE PERSONS WHO HAVE HELPED ME IN

SOME WAY OR OTHER IN THE COMPLETION OF THE PROJECT.

HOWEVER, I TAKE THE RESPONSIBILITY OF ALL MY SHORTCOMINGS.

AMIT KUMAR NANGLU

ROLLNO.03811433909

M.B.A., Third Semester

BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES,

Shakarpur, Delhi

CONTENTS PARTICULARS Page

No.
Certificate of the organization

3
 Certificate of project guide

Acknowledgement

Executive summary

CHAPTER -1 INTRODUCTION

1.1 Objective of study

1.2 Methodology
1.2.1 Research Design
1.2.2 Data Collection Approach
CHAPTER -2 ORGANISATIONAL PROFILE

2 .1 Introduction
2.2 profile
2.3 Quality policy of BOI
2.4 Vision
2.5 Mission
2.6 Awards
2.7 Detail Business Overview
2.8 Subsidiaries Of BOI
2.9 Services Provided by BOI
CHAPTER-3 RESEARCH STUDY OF MAIN TOPIC
3.1 Car Loan Scheme
3.2 Car Finance
3.3 Auto Loan Product Overview
3.4 New Car Loan Documents and
Procedure
3.5 Car Loan Process
3.6 Calculation of EMI
3.7 Comparison of Different Bank’s Car Loan
Scheme

4
CHAPTER -4 ANALYSIS AND FINDINGS

4.1 Analysis

4.2 Findings

CHAPTER -5 CONCLUSION AND SUGGESTIONS

5.1 Conclusion

5.2 Suggestions

5.3 Limitations

CHAPTER -6 BIBLOGRAPHY

CHAPTER -7 ANNEXTURE

7.1 Questionnaire

7.2 Project summary

7.3 Evaluation Sheet

7.4 Performance Appraisal Sheet

5
EXECUTIVE SUMMARY

 Bank of India is offering all the modern and essential facilities to

the customers of the car loan.

 The other banks , which offers car loan , as a separate product is SBI,
Bank of Baroda ,Oriental Bank of Commerce, UCO Bank, Dena Bank,
Indian Bank, ABN AMRO Bank, HDFC.

 Rate of interest offered by respective banks are:

 Bank of India - 8.75 %– 10%

 Bank of Baroda - 10.50%
 HDFC - 11.30%
 UCO Bank - 11.50%
 OBC - 10.25% -10.75%
 SBI - 8% - 11.25%
 ABN AMRO Bank - 15%
 Dena Bank - 10.75% -11.00%

(These Rates may vary from time to time)

 Bank of India, SBI, HDFC, Dena Bank, UCO Bank and Indian Bank
provides car loan in easy way.
 Maximum amount of loan provide by different banks for car loan.
 Bank of India - For Individuals: 24 times of monthly gross salary or
Rs25lakhs whichever is lower.

Higher amount of loan may also be considered in deserving cases.

For Business concern: Rs100lakh or Rs1crore

 SBI - Rs15lakh.
 UCO Bank - Rs7.50lakh or 85%
 Dena Bank - Rs 8lakh
 ABN AMRO Bank - Rs 20lakh

6
 Bank of India is providing maximum amount of loan among public sector
banks.

 Processing fees of different banks for car loans

 Bank of India - 1.10% or Rs1000

 UCO Bank - 1% or Rs1000

 HDFC Bank - Rs2150 – Rs5000

 Dena bank - Rs 1000

 SBI - 0.50%

 ABN AMRO Bank - Rs1000

 Bank of Baroda - Rs1000 or 0.25%

 ICICI Bank - Rs2500 – Rs5000

 Bank of India first among the nationalized bank to establish a fully

computerized branches & A.T.M facility.

 Bank of India is also providing Internet banking facility to their

customers.
 All branches of Bank of India are C.B.S & R.T.G.S/NEFT enabled.

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 CHAPTER – 1

INTRODUCTION

OBJECTIVE OF THE STUDY

 TO STUDY THE CAR LOAN PROVIDED BY BANK OF
INDIA TO THEIR CUSTOMERS.

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  TO STUDY THE DETAILED PROCEDURE INVOLVED IN
THE SANCTIONING OF CAR LOAN.

 TO STUDY THE AWARENESS OF THE CAR LOAN

AMONG THE CUSTOMER

 MAKE A COMPARATIVE STUDY OF BANK OF INDIA

CAR LOAN WITH OTHER COMPETITIVE BANKS

 TO STUDY THE RULES AND DOCUMENTS REQUIRED

BY BANK OF INDIA
FOR CAR LOAN

1.2 METHODOLOGY

1.2.1 RESEARCH METHODOLOGY

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Research methodology is a methodology for collecting all sorts of information
& data pertaining to the subject in question. The objective is to examine all the
issues involved & conduct situational analysis. The methodology includes the
overall research design, sampling procedure & fieldwork done & finally the
analysis procedure. The methodology used in the study consistent of sample
survey using both primary & secondary data. The primary data has been
collected with the help of questionnaire as well as personal observation, books,
magazine, journals have been referred for secondary data. The questionnaire
has been drafted & presented by the researcher himself.

 Sample Size:
Sample of 100 people was taken into study, and was collected.

 Sampling Techniques:
To study the project, a Simple Random Sampling technique is used.

 Data Collection:
Collection of data is done by Secondary Data & through

 Questionnaire

i.e., Primary data was collected through Questionnaire.

1.2.2 DATA COLLECTION APPROACH

10
Research methodology is a methodology for collecting
all sorts of information & data pertaining to the subject
in question. The objective is to examine all the issues
involved & conduct situational analysis. The
methodology includes the overall research design,
sampling procedure &fieldwork done & finally the
analysis procedure. The methodology used in the study
consistent of sample survey using both primary &
secondary data. The primary data has been collected
with the help of questionnaire as well as personal
observation, books, magazine, journals have been
referred for secondary data. The questionnaire has
been drafted & presented by the researcher himself.

11
 CHAPTER - 2
ORGANISATIONAL STRUCTURE

INTRODUCTION

HISTORY OF BANK OF INDIA

12
 Bank of India was founded on 7th September, 1906 by a group of eminent
businessman from Mumbai. The bank was under private ownership & control
till July 1969 when it was nationalized along with 13 other banks.

Beginning with one office in Mumbai, with a paid up capital of Rs50lakhs & 50
employees, the bank has made a rapid growth over the years & blossomed into
a mightly institution with a strong national presence & sizable international
operations. In business volume, the bank occupies a premier position among
the nationalized banks.

The bank has 3101 branches in India spread over all states/union territories
including 141 specialized branches. These branches are controlled through 48
zonal offices. There are 29 branches/offices (including 3 representative offices)
abroad. The bank came out with the maiden public issue in 1997 & follow on
qualified institution placement in February 2008. Total number of shareholders
as on 30/09/2009 is 215790.

While firmly adhering to a policy of prudence & caution, the bank has been in
the forefront of introducing various innovative services & systems. Business has
been conducted with the successful blend of traditional values & ethics & the
most modern infrastructure. The bank has been the 1st among the nationalized
banks to establish a fully computerized branches & A.T.M facility at Mumbai
was back in 1989. The bank is also a founder member of SWIFT in India. It
pioneered the code system in 1982, for evaluating/rating its credit portfolio.

The bank association with the capital market goes back to 1921. When it
entered into an agreement with the Bombay stock exchange (B.S.E) to manage
the B.S.E clearing house. It is an association that has blossomed into a joint
venture with B.S.E, called the B.O.I shareholding L.T.D to the stock broking
community, Bank of India was the 1st Indian bank to open a branch outside the
country at London, in 1946, & also the 1st to open a branch in Europe, Paris in
1974. The bank has sizable presence abroad, with a network of 29 branches
(including 5 representative offices) at key banking & financial centre VIZ
13
London, New York, Paris, Tokyo, Hong Kong, & Singapore. The international
business accounts 17.82% of bank’s total business.

Miles Stones:

1906: Group of Eminent Businessmen Establishes the

Bank.

14
1946: Opening of London Branch:- 1st Indian Bank to
open a Branch Overseas.

1950: Opening of Tokyo Branch:- 1st Indian Bank to

open a Branch in Japan.

1969: Nationalization along with 13 others Banks –

Branch Network: Indian: 207 & Foreign: 12.

1989: Established BOI Shareholding Ltd – A JV with

Bombay Stock Exchange (BSE) TO manage Clearing
House of BSE.

1997: Launched maiden IPO – Govt. Shareholding

diluted to 76.53%.

2003: Ranked as India’s Most Trusted Services Brand

Consecutively for 3 years by AC Nielsen ORG – MARG.

2004: Ranked 25th Among India’s Top 200 Companies

by D&B.

2007: Surpassed Landmark of INR 10bn in Net Profits.

2008: Surpassed Landmark of INR 20bn in Net Profits.

2009: Surpassed Landmark of INR 30bn in Net Profits.

15
QUALITY POLICY OF BANK OF INDIA

We at Bank of India, are committed to become the bank of choice by providing

 SUPERIOR

 PROACTIVE

 INNOVATIVE

 STATE OF THE ART

Banking services with an attitude of care & concern for the customers &
patrons.

16
VISION OF BANK OF INDIA
“To become the bank of choice for corporate
medium business & Up market retail, customers &
to provide cost effective developmental banking
for small business, mass market & rural market”.

17
MISSION OF BANK OF INDIA

“To provide superior, proactive banking service to niche

market, globally while providing cost effective,
responsive services, to others in our role as a
development bank, & in so doing, meet the
requirements of our stakeholders”.

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AWARDS ACHIEVED BY BOI
 Bank of India wins dun & Bradstreet award for the best public sector
bank category 2010. The award for the most efficient public sector banks
conferred by Dalal Street.

 Best performance in western zone under the rural employment

generation program.

 Bank has been rated by the Economic times/The Nielsen company survey
as “the most trusted brand”(MTB) 2009 as follows-

 Under the PSU Banking Category – 2nd next to S.B.I.

 Under top service brands – 8th.
 The Debuntant – 1st time in top 100.

 NDTV Profit Business Leadership Awards 2009 – Best PSU Bank.

 CIO green information technology award.

 FE-EY most efficient Public Sector Bank Awards 2009, Best Bank
under Banking Category.

 2nd Rank for Excellent Performance in Lending to Medium

Enterprises also, ’Best Performing Bank’ for covering maximum
number of Micro & Small accounts under collateral Free Lending
Scheme of CGT MSE.

19
DETAIL BUSINESS OVERVIEW
Business: domestic business of the bank increased to
Rs 3,31779crore as on march31, 2010 registering an
absolute accretion of Rs 56,938crore and a growth of
21%. Including the business of foreign branches at
London, Paris, New York, Tokyo, Singapore, Hon Kong,
The bank’s global business amounted to Rs4,01,079cr

Total Business(Amt Rs.cr.)

20
 SHARE HOLDING PATTERN
(%) As on June 31, 2010

RESOURCE MOBILISATION
Total deposits of the bank amounted to Rs 2,29762cr as
on march 30,2010 showing an absolute accretion of Rs
21
40,054cr.and a growth of 21% over previous year. The
share of low cost deposits (current and savings) in total
domestic deposits stood at 31.75%.

Total Deposit (Amt Rs. Cr)

(As on 31st March 10)

TOTAL ADVANCES IN INDIA

22
In recent years the advances segment grow very quickly.
These loans are provided by bank on very easy terms and
condition with less paper work which attract people to
borrow money to fulfill their requirements. The following
figures show the amazing growth in advances sectors.

YEARS 2007 2008 2009 2010

TOTAL 86791 114793 144732 171317
ADVANCES

23
SUBSIDIARIES INFORMATION ABOUT
SUBSIDIARIES, JOINT VENTURES &
ASSOCIATES

BOI SHAREHOLDING LTD.

Bank’s association with Bombay stock exchange LTD. (B.S.E) spans
over a period of more than 8 decades with the clearing & settlement
functions of the Bombay stock exchange LTD.(B.S.E) handled by the
bank. Later on 1989, bank setup B.O.I shareholding LTD., as a joint
venture with B.S.E to manage the clearing house activities of the
exchange. The company is carrying out the demat rolling settlement
on T+2 basis of the exchange through the national securities
depository services L.T.D (NSDL) & Central depository services (India)
L.T.D (CDSL) efficiently & also the settlement of G - secs through an
integrated computerized system.

With a view to optimizing use of its trained manpower &

sophisticated I.T infrastructure, besides handling settlement related
work of the exchange, the company also extends depository services
to member brokers of the stock exchange & the retail investors.
During 2004-05 the company commenced new business activity i.e
franking of stamp documents, which has proved to be highly lucrative
& has been contributing significantly to the revenues of the company,
with the corporatization of the stock exchange, Mumbai & its
transformation in to a corporate entity Viz the Bombay stock
exchange L.T.D. During the year, the clearing & settlement function of
B.O.I shareholding L.T.D are likely to get transferred to a clearing
corporation in future.

24
B.O.I.S.L earned a net profit of Rs309.25lakh during 2005-06 as
against Rs152.13lakh earned during F.Y 2005-06 & final dividend of
45% taking total dividend for F.Y2005-06 to 60% as against 25%
dividend paid during the F.Y2004-05.

B.O.I Mutual Fund

Associates Companies

1. Star Union Dai-Ichi Life Insurance Co. L.T.D

2. Securities Trading Corporation of India

L.T.D

Securities Trading Corporation of India L.T.D

(STCI)
Securities trading corporation of India L.T.D (STCI) is one of the
primary dealers in the country enjoying the highest credit rating of
P1+ by Crisil & A1+ by ICRA for short term debt instruments. The
bank is the single largest stake holders of STCI with 29.95% stake in
its equity.

The year 2004 – 05 witnessed a sudden & swift hardency of interest

rates & narrowing down on margin in trading & glit securities as such
all major PDS including STCI incurred losses from operations. For the
1st time in its history, the company incurred a loss of Rs97cr during
F.Y-2004-05 with diversification plan & strategies, the company made
a quick turn around & earned a net profit of Rs24cr during the F.Y-

25
2005-06. During the year STCI also successfully bid for acquiring the
U.T.I securities L.T.D from the specified undertaking of the unit trust
of India with this acquisition STCI hopes to mark its presence in the
field of equity trading, portfolio mgt. services, commodity trading,
depository services etc.

STAR UNION DAI-ICHI LIFE INSURANCE CO L.T.D

Bank of India & Union bank of India two leading public sector bank in India, &
the Dai-Ichi mutual life insurance company a leading Japanese company in the
life insurance market, have floated a joint venture company, star union Dai-Ichi
life insurance co. L.T.D, for undertaking life insurance business in India.

The company, has been incorporated/registered with the registrar of

companies, Maharashtra on 25th September, 2007 & will be a Mumbai based
company. The company application for license is under IRDA’S consideration.
The company is well advanced in preparation for setting up office, putting up
the team & other infrastructure.

The joint venture agreement, among others envisages, a capital stake of 51%
by BOI, 26% by Dai-Ichi-life & 23% by union bank. The joint venture company
would have initial paid-up capital of Rs250.00cr.

The joint venture company with the strength of the domestic partners in the
Indian financial, sector coupled with the Dai-Ichi-life’s strong domain expertise
is expected, to be a strong player in the Indian life insurance market in a short
time, the company aims to develop various products to serve all strata of the
society.

Bank of India & Union bank of India have a strong nationwide network of more
than 5000 offices, which shall provide a sound distribution channel with a wide
reach which is the key to the success of an which is the key to the success of an
insurance venture. More then 48 million strong banking customer base of the 2
banks provides ready scope of cross selling of insurance products. The 2 banks
have strong brand equity and command high level of trust among their
customers & people at large. Additionally the regional rural banks sponsored
26
by the 2 banks have more than 1400 branches to tap life insurance business in
the rural areas.

Dai-Ichi- life is a leading player in the life insurance segments in Japan & is one
of the top 10 life insurers in the world & the second largest life insurance
company in Japan. Established in 1902, it has more than a venture of
experience in life Insurance business. It has sound product knowledge, share
asset mgt. skills & strong operational capabilities to manage life insurance the
best insurance JV partner on the domain side.

Star union Dai-Ichi-life insurance company L.T.D is also committed to providing

partners are in the presence of insurance to rural & weaker/social sectors. Both
the domestic partners are in the process of implementing GOVT OF INDIA
initiative of financial inclusion & their pan India network, of branches gives the
company a natural edge in catering to these sectors effectively. With the strong
brand & commitment of the partners, star union Dai-Ichi- life insurance
company L.T.D, promises to be a new stair on the horizon of the India life
insurance scene, promising value to all stake holders.

Services provided by Bank of India

Personal Banking
27
 Bank of India “Basic Savings bank” Account
These accounts are designed to help the individuals (personal customers) to
inculcate the habit of saving money and to meet their future requirement of
money. The amounts can be deposited/ withdrawn from these accounts by way
of Cheques/withdrawal slips/ATMS. It help the customers to keep minimum
cash at home besides earning interests.

Savings bank Accounts are very popular. These accounts can be opened by
eligible person/s and certain organization/agencies (as approved by the
Reserve Bank of India (RBI).

As required by law, while opening this account, we will satisfy ourselves about
the identity including verification of address of a person/s seeking to open an
account; to assist in protecting the prospective customers, member of the
public and ourselves, against fraud and other misuses of the banking systems.

2. Star Diamond Saving Account.

3. Star Sunidhi Tax- Saving Deposit Scheme

4. BOI Saving Plus Scheme

BOI “CURRENT ACCOUNT”

1. Bank of India Current Deposit Plus.

2. Super Current Deposit plus Account.
3. Star diamond & Star Diamond plus Current Account.

Individuals, Partnership Firms, Private & Public LTD Companies,

HUFs/Specified Associates, Societies, Trusts, can open Current Accounts etc.

BOI Term Deposits Schemes

 Double Benefit Deposit
 Fixed Deposit Receipt
 Short Deposit Receipt
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  Quarterly Income Certificate
 Monthly Income Certificate
 Recurring Deposit

BOI Retail Credit Scheme

 Star Auto Fin Scheme
 Star Educational Loan
 Star Holiday Loan
 Star Home Loan Scheme
 Star I.P.O
 Star Mortgage Loan
 Star Mortgage Loan (For Farmers Arthias &
Dealers of Agricultural Inputs )
 Star Personal Loan
 Star Pensioner Loan
 Star Mitra Personal Loan (A Physically Challenged)
 Star Women Gold Loan Scheme
 Bank of India – Pensioners Credit Card
 Scheme for extending Loan facility against pledge
of gold coins) Ornaments.

Small & Medium Enterprise & O.P.S

 Laghu Udyog Suvidha Scheme(SLUSS).
 Credit Guarantee Fund Trust Scheme Micro & Small Enterprises.
 Bank of India – Swarojgar Credit Card (BOI–SCC)
 BOI Star Channel Credit
 Scheme for financial assistance to distributors & super stockist
of medicines.
29
 Financial assistance for setting up Akshay Urja Shops.
 Loan for Tax Return Prepares (T.R.P).
 Retail Credit.
 BOI – Artisans Credit Card (ACC).
 Star Dhanvantri Suvidha Scheme.

BOI Online Service

 Mobile Banking & Payment.
 Internet Banking.
 Pay Bills.
 Book Air Ticket.
 Book Rail Ticket.
 Online ASBA IPO.
 Direct Tax.
 Central Excises, Services Tax.
 Online Trading in Shares.
 Star e – Remit.
 2FA/ Start Token.
 Online Internet Bank Fund Transfer.
 Locker Facilities.
 Gold Business.
 Bank of India Rupee Travellers cheques.

BOI Credit Cards

 India Card.
 Taj Premium Card.

30
  Visa Electron Debit Card.
 Gold International Credit Card.

My Place
Women
Financial Independence for women is now within easy reach with
support of BOI.

Bank of India provides the independent women of today a spectrum

of financial facilities. The facilities provided by the bank, exclusively
to women for their Empowerment are as under:-

 Star Women Gold Scheme.

31
 Besides the above schemes for women, the following additional
facilities provided to women entrepreneurs.

Priority Sector Scheme-

a) Credit assistance to women entrepreneurs in tiny & SSI sector.
b) Credit assistance to women beneficiaries in other priority
sector schemes.
c) Credit facilities to women entrepreneurs under various Govt.
sponsored schemes like

 Prime Minister’s Rozgar Yojana(PMRY)

 Swarnjayanti Gram Swarozgar Yojna(SGSY)
 Swarnjayanti Shahari Rozgar Yojna (SJSRY)
 Scheme for Liberation & Rehabilitation of
Scavengers(SLRS)
 Interest Concession in respect of loan to women
beneficiary.

Priority Sector Credit:

Particulars As on As on Growth Growth in

31st 31st in Percentage
March March Amount

2009 2010

Agriculture 16,284 18,256 1,972 12.11%

32
Small 17,941 25,810 7,869 43.86%
Enterprise
s

Housing 5,921 6,343 390 29.11%

Education 1,326 1,716 422 7.12%

Total 41,472 52,125 10,653 25.68%

Priority
Sector

Farmers
Bank of India harnesses continued support to the agrarian society by
providing adequate financial facilities to farmers for meeting short-
term working capital requirements.

1. BOI Shatabdi Krishi Vikas Card.

2. Star Bhoomiheen Kisan Card (Star - BKC)
3. Bank of India –(Samanya Credit Card)
4. Kisan Credit Card.
5. Kisan Samadhan Card.

Agricultural Credit Schemes

 Farm Mechanization.
 Minor Irrigation.
33
  Dairy Development.
 Scheme for financing Commodities held in the
form of warehouse Receipts.
 National Crop Insurance Scheme (India).
 Land Development.
 KVIC’S Margin Money Scheme
 Scheme of Financial Assistance for Setting up
Kisan Sewa Kendras.

Senior Citizens
 Senior Citizens Scheme
Bank of India has introduced special loan schemes for senior
citizens with low interest rates such as personal loan scheme for
”Pensioners” to meet their immediate requirements such as
Medical Expenses. The scheme helps in realizing the vision of
serving people for a better quality of life.

“Depositor” means an individual-

 Who has attained the age of 60 years or above on the date of

opening of an account under the provisions of these rules, and
by whom, or on whose behalf, money is deposited in an
account under these rules.

A depositor may open the account in individual capacity or jointly

with spouse.

34
 Professionals
Bank of India extends needful assistance for working capital
requirements to self-employed professionals. This is aimed to
enhance professional strengths in terms of business purposes.

NRI

NRI Accounts

 NRI Account
Non – Resident Indians can open accounts under this
scheme. The account should be opened by the Non-Resident
account holder himself and not by the holder of power of
attorneys in India.

Description
NRE accounts can be opened by remittances from abroad in
any convertible currency or from transfer of funds from
existing NRE/FCNR accounts held by any person with any

35
 Bank in India. These accounts can be opened at all branches
of Bank of India.

Accounts can also be opened during temporary visits of NRIs

to India against tender of foreign currency traveler cheques/ notes
and coins.

The remittances received in foreign currency for opening of NRE

accounts will be converted into Indian rupees at the prevailing

exchange rates. These accounts can be maintained under

Savings/Current and Term depositing schemes.

 FCNR Account
Non-Resident Indians can open accounts under this scheme.
The account should be opened by the non-resident account
holder and not by the holder of power of attorney in India.

These deposits can be maintained in 5 designated currencies

i.e. U.S. Dollar (USD), Pound Sterling (GBP) and Euro, Australian
Dollar (AUD) & Canadian Dollar (CAD).

These accounts can only be opened with funds remitted from

abroad in convertible foreign currency through normal banking
channels, which are of repatriable nature in terms of general or
special permission granted by Reserve Bank of India.

These accounts can be maintained with our branches, which

are authorized for handling foreign exchange business. (List of
branches authorized for handling foreign exchange business).

36
 Funds for opening accounts under the BOI Global Foreign
Currency Deposit Scheme or for credit to such accounts should
be received from –

 Remittance from outside India or

 Traveler cheques/currency Notes tendered on visits to India.
International Postal Orders cannot be accepted for opening
or credit to FCNR accounts.
 Transfer of funds from existing NRE/FCNR accounts.
If remittance is received in any currency other than USD, GBP,
EURO, AUD & CAD, it will be converted into one of the
designated currencies of remitter’s choice at the risk & cost of
the depositor.

Special FD Scheme
Regular Interest every month or quarter

Features:
 Depending upon your choice, the scheme offers regular income
to you by the way of payments of interest on monthly or
quarterly basis.
 Interest is credited regularly. However, the original amount of
fixed deposit remains intact and paid at the time of maturity.
 Minimum deposit of Rs 10000/- or any higher amount is
accepted under the scheme for any period from 12 months to
120 months.
 Facility of automatic renewal of deposit on maturity is available.

37
 CHAPTER - 3
RESEARCH STUDY OF MAIN TOPIC

38
CAR LOAN SCHEME
A person wants certain luxuries for enjoying his life and a car is one of them, a
car gives him convenience to travel one place to another. Now a days it become
a status symbol in society. So it becomes a need of every human being but
some people does not have the capacity to pay a huge amount at a time but
they can pay the price in installment so for these people many banks offer car
loans schemes. In which they can buy car and pay its price in installment.
Almost everyone make easier to purchase a car.

 Now days car is become one of the basic need of man but buying a own
car become a dream for man because of its prices.
 So in fulfillment of this dream man, needs help. In this condition Bank of
India take a Initiative to provide easy car loan to those people who are
willing to buy a own car.
 People are appreciating car loan scheme of Bank of India and this can be
proof by figures which show that the total amount of car loan scheme is
increase in 2007-2010 amazingly.

Star Auto Fin Loan

2007 2008 2009 2010

39
 AMOUNT 425 586 877 1218

GROWTH 20% 37.88% 22.6% 38.88%

 The car loan amount increases from 877cr. in 2009 to 1218 cr. in 2010
which accounts a growth of 38.88%.
 So Bank of India helps people to get car & increase in social status.
 It Provide loan for all types of Cars i.e. A, B, C segment.

TYPE OF CAR FINANCED

 Bank of India provide all type of car loans which comes under the
purview of Bank guidelines, term & conditions and the credit limit which
is 24 times of the monthly net salary or Rs 25lakh, whichever is lower, in
case of individuals.

 For corporate Rs 100lakh after presenting required documents.

Corporate include self employed, Partnership firm, Private Ltd, Public Ltd
etc.

 For Non-Resident-Indian Rs 25lakh.

 For Imported Vehicle Rs75lakh.

Some Car Companies

 Maruti Suzuki- Alto, Wagon-R, Swift, Zen, Van,

Gypsy,Sx4, Eco
40
  Hyundai- Accent, I-20, I-10
 Honda- Civic, Honda City
 Mahindra- Logan, Scorpio
 Tata- Safari, Indigo, Sumo
 GM – Spark, Cruise, Beat, Magnum

THE TOTAL GROWTH IN AUTO LOAN

SEGMENT FOR LAST THREE YEARS:-

YEAR 2008 2009 2010

Car Loan 37.88% 22.6% 38.8%
Growth%

41
 COMPARITIVE ANALYSIS AMONG DIFFERENT
BANKS FOR CAR LOANS
Private Rate of Max Loan Loan Processing Prepayment
banks Interest Amount Tenure Fees CHARGES

ICICI 13% 90% 1-5yrs Rs2500-5000 1.5%

Bank
HDFC 11.30% 90% 1-7yrs Rs2150- N.A
Bank Rs3650
ABN 15% Rs20lakh N.A Rs1000 5%
AMRO
Bank
PSBs

SBI 8%- Rs15lakh 1-7yrs 0.50% 2%

42
 11.25%
Bank of 8.75%- Rs25lakh 1-6yrs 1.10% or NIL
India 10.00% Rs1000
DENA 10.75%- Rs 8lakh 1-5yrs Rs1000 NIL
Bank 11.00%
UCO 11.50% 85% Or 1-5yrs 1%or Rs1000 0.5%
Bank Rs7.50Lakh
Indian 11.00%- Rs 15Lakh 1-5yrs 0.30% NIL
Bank 11.25%
O.B.C 10.25- Rs10Lakh 1-7yrs 0.50 NIL
10.75%

Car Finance

EMI Calculator
Own a vehicle with the friendliest and most convenient car loan. Either you can

purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles that are
not older than 3 years. Finance will also be provided for purchase of vehicle of
indigenous/ foreign makes.

Eligibility

Individual as well as Business Concerns (Corporate or non-corporate)

Amount of Loan
For Individual: 24 times of the monthly net salary or Rs25lakh, whichever is
lower income of spouse can be taken into account for determining loan
amount. In such cases, the spouse shall stand as a guarantor.

43
For Business Concerns: Loan amount to Rs100Lakh. Processing is
nominal.

For N.R.I: Loan amount to Rs25lakh.

For Imported Vehicles: Loan amount to Rs75lakh.

Margin
Up to Rs 2.00lakh – 5%

Rs2lakh to Rs10lakh – 10%

Above Rs10lakh to Rs25lakh – 15%

Above Rs25lakh – 25%

Security
The vehicle purchased with the amount of loan is to be hypothecated to the
Bank. It will be registered in the name of the borrower jointly with the Bank.
Guarantee of spouse, if employed or third party guarantee is acceptable to the
bank.

Rate of Interest

Rate of Interest (For loans granted on & after

1.04.2009) BPLR at 12.00%
TENURE Rate of Interest @ percent
p.a.
For Loans Repayable
in/upto
Less than 3years BPLR minus 1.00% i.e.11.00%

Above 3 years BPLR minus 1.50% i.e.11.50%

44
Repayment

For new Car/Van/Jeep: The loan amount together with interest is

to be repaid in 72 Equated Monthly Installments (EMIs)

For old Car/Van/Jeep: The loan amount together with interest

is to be repaid maximum in 36 Equated Monthly Installments (EMIs)

For Imported Vehicles: The loan amount together with interest is

to be repaid maximum in 84 Equated Monthly Installments (EMIs)

Disbursement
The intending borrower will be required to settle the transaction for purchase
of vehicle needed by him/her with the seller and will be required to deposit the
difference of the cost of the vehicle to amount of loan will be required to
deposit the difference of the cost of the vehicle to amount of loan, and
thereafter, the advance will be allowed to him/her from the bank by paying the
entire price of the vehicle to the seller directly on behalf of the borrower.

Profit

Interest earned on the loan is its profit.

Auto Loans

The bank offers auto loans at fixed interest rate as well as floating rates also for
financing automobile and used car purchases.

Commercial Vehicles and Construction Equipment

Finance
The Banks provides secured financing for commercial vehicles and providing
working capital, bank guarantees and trade advances to customers who are
transportation operators. In addition to the funding of domestic assets, it also
finances imported assets for which the bank opens foreign letters of credit and
offers treasury services.

45
Personal Loans
Unsecured personal loans are offered at fixed rates to specific customer,
including salaried individuals and self-employed professionals.

Loans against Securities

Loans are offered against equity securities, mutual fund units and against
bonds issued by the RBI.

AUTO LOANS: PRODUCT OVERVIEW

Auto loans are the installments loan for the purchase of new and used vehicle
to be used for personal business or commercial purpose. The auto loan
programmer is a retail asset product and can be availed by the individuals, sole
proprietors, partnership firms, NRI, private and public limited companies, who
satisfies the credit worthiness of the applicant, approve and disburse the loan
and also mark a lien on the vehicle as a security The lien on the vehicle has to
be a first lien. Listed below are some of the key product features:

Product------------- New and Used Car

Standard product ------------------ EMI in advance, EMI in arrears
Minimum loan -------------------- Rs10000
Tenure ----------------------------- 12-72 months
Eligible borrower --------------------- Salaried individuals, Self
employed, Sole Proprietorship, Partnership firms, NRI, Private and Public
Companies.

46
Equated monthly installment (EMI) ------------- The amount
paid by the customers each month towards repayment of loan extended to
him. EMI comprises of both principal and interest components.

Loan to value LTV/ Extent of funding------------ The ratio of the

maximum amount of loan to the value / cost of the car varies with the vehicle
make, model and tenure.

Loan type ------------------------- Term loan with hypothecation marked

in favor of BOI bank.

Security / Collateral ----------------- Asset financed will be

hypothecated / lien marked in favors of BOI bank.

System and Process ------------- Decentralize approval and disbursal

with all loan being booked fineness/ as per process set out time to time.

Banking ------------------ PDC’s stored and banked centrally, SI /ECS will also
happen centrally.

Credit approval process ------------------- Credit policy will lay down

the borrower eligibility criteria/approval process / deviation policy as approved
by the central risk unit. Approval authorities may be delegated to bank
employees/ bank associates including outsourcing agencies. Operations and
collection policy will be circulated separately.

Collection ------------------- In-house and agency based collection

through Tele calling and field collection for soft buckets. Appointment of
external agency for chronic and serious defaulters and repossessions

Interest rates ----------------- As per approved rates from time to time

Type of car ----------------------------- As per list of cars approved by the
bank, please refer to various product and LTV matrix/ chart.

Use of vehicle --------------------------- Vehicle firmament should be

personal, official, commercial use.

Approved location -------------------------- Generally Bank of India

prefers to give loan to those customers who are residing near to the bank. As it
47
feel easy to contact the customers and for communication also. However in
some exceptional cases the bank can loans to those customers who are not
residing near bank.

CAR LOANS
FEATURES

 Finance all passenger cars & most of the multi – utility

cars.
 The tenure range is 12 – 72 months.
 Competitive rates.
 24 – 48 hours to process the loan after we receive
complete set documents.
 Loan up to 90% of the invoice value.
 Prepay the loan anytime without any prepayment charge.
 Easy documentation.
 Processing charges waived for senior citizens, staff
members & retired employees of the bank & pensioner
drawing pension from the bank.

48
 DOCUMENTS REQUIRED:-

Documentation Salaried Self Partnerships Private Ltd Public Ltd

Requirements Individual employed Firms Company
Individual Company

Application Form Yes Yes Yes Yes Yes

Income Last 3 Years Last 3 Years Last 3 Years ITR Last 3 Years Last 3 Years Audited
Documents (last ITR or Form ITR & Audited & Audited Audited B/S
3 years) B/S & P&L A/C
no.16 accounts Accounts & P&L A/C
Bank Statement Yes Yes Yes Yes Yes
(Last 12
months)

Proof of Identity Yes Yes Yes Yes Yes

Proof of Yes Yes Yes Yes Yes
Residence

Proof of Office Yes Yes Yes Yes Yes

Address

Legal A Letter Signed MOA or AOA MOA & AOA

Documents by all the
Partners
accepting the
Loan

OTHERS DOCUMENTS:-

49
 1. CHA -2.
2. OD -194 (Guarantee Deed)
3. L-515 as per Br. Cir. No. 94/186.
4. L-515 as per Br. Cir. No. 97/114
(Where CBD -13 obtained)
5. Comprehensive Insurance Policy.
6. Letter addressed to Insurance Company.
7. Transfer form in blank in duplicate.
8. Registration of bank charge on the vehicle with regional transport
authority.
9. Valuation certificate for Second hand vehicle from approved valuer.
10. Undertaking to inform change in constitution/address etc.
11. A letter of authority by the borrower to debit the loan/SB A/C with Intt./
Service charges/Insurance Premium.
12. Where guarantor’s vehicle is taken as collateral security, obtain another
CHA – 2 with modification.

ELIGIBILITY CRITERIA:-
For Salaried Individual, Self-employed Individuals, Partnership Firms, Public and
Private Limited Companies

50
Borrower Age Residence/Office Income Telephone CPV
Type Requirement

Salaried 21 at Residence should be Minimum Applicant CPV should

Individual beginning owned by the applicant or should own
Income of Be done at
rented for >1 years. Landline Phone
To 60 at Residence and
Rs1.5lakh. at residence
the end office of applicant
and at office.
of the and co-applicant.
tenure.

Self 21 at Residence/office/Factory Minimum Applicant CPV should be do

Employed beginning should own at residence and
Proprietor- / workshop should be Income of
to 65 at Landline Phone office of applicant
ship owned by the applicant or
the end Rs0.60lac. at residence and co- applicant
rented for at least 2years
of the and at office.
tenure

Partner-ship NA Office/Factory/Workshop Minimum Landline phone CPV should be do

at office. at office and main
Should be owned by the Income of
partner’s residenc
firm or main partner or
Rs0.60lakh.
rented for at least 2years

Pvt. Ltd Co./ NA Office/Factory/Workshop Minimum Landline phone CPV should be do

Public Ltd Co. Income of at office. at office and main
Should be owned by the
Rs0.60lac. director’s residen
Co. or director or rented

For at least 2 years

FEES and CHARGES:-

Description of Charges New Car Loans

51
Cheque bouncing charges Rs 100
Stamp Duty At actual
Late Payment Penalty More than 2% per month
Processing Fees 1.10% or Rs1000
Other Charges -

USED CAR LOANS

Used car loans are installment loans for the purchase of used vehicle to be
used for personal, business or commercial purposes. The used car loan
Programmes is a retail asset product & can be availed by the Individuals, Sole
Proprietor, Partnership Firms, Pensioner, Farmers, Public & Private companies
who satisfy the credit parameters set out in this manual. The bank would
assess the credit worthiness of the applicant, approve and disburse the loan

52
 and also mark a lien on the vehicle as a security. The lien on the vehicle has to
be a first lien. Listed below are some the key product features:

Features:-

 Choose any car manufactured in India within a certain range.

 Borrow up to 70% of the value of the car.
 Flexible repayment options, ranging from 12 to 36 months.
 Borrow up to 2times your annual salary(for salaried professionals)
And 2times your annual income (for self employed professionals)
 Available for almost all car models at attractive interest rates.
 Repay with easy EMI’s.
 If you have had a Preferred Account or a Corporate Salary Account
With Bank of India for than six months, you can get fast approvals on
your loans with minimal documentation.

DOCUMENTS REQUIRED:-

Documentation Salaried Self Partnerships Firms Private Ltd Public Ltd Comp
Requirements Individual employed Company
Individual

Application Form Yes Yes Yes Yes Yes

Income Documents Last 3 Years Last 3 Years Last 3 Years ITR & Last 3 Years Last 3 Years
(last 3 years)
ITR or Form ITR & Audited Accounts Audited
Audited
no.16 Audited B/S & P&L
accounts A/C B/S & P&L A/C
Bank Statement (Last Yes Yes Yes Yes Yes

53
12 months)

Proof of Identity Yes Yes Yes Yes Yes

Proof of Residence Yes Yes Yes Yes Yes
Proof of Office Address Yes Yes Yes Yes Yes
Legal Documents A Letter Signed by MOA & MOA & AOA
all the Partners AOA
accepting the Loan

ELIGIBILITY CRITERIA:-

For Salaried Individuals, Self-employed Individuals, Partnership Firms, Public and Private Limited
companies.

Criteria Salaried Self Partnershi Company

employed p

firm

Age 21-60 years 21-65 at the NA NA

at the end of end of the
the tenure tenure

No. of years Minimum 1 Minimum 1 NA NA

in current year. year.
residence

54
Min. of At least At least At least 3years At least 3
years in/ 3years of 3years in in Existence. years in
total Business. Existence.
Employment/
employment
Business

Min. income Gross Last year & Last year & Last year &
for cars income of latest year latest year latest year
Rs1.5lakh. must be must be must be
profitable. profitable. profitable.

Telephone Must be at Must be at One phone at At least 1

residence & residence & least in phone must
at office. at office. Business & one be at
at residence of business.
loan Executing
partner.

PRICING:-
 Highly competitive.
 1.10% processing fee payable up front (Pl contact local sales manager for
revised applicable rates).
 Customers can pre-pay the entire loan amount before the agreed tenure.

Fees and Charges:-

Description of Charges New Car Loans

Cheque bouncing charges Rs 100

55
Stamp Duty At actual
Late Payment Penalty More than 2% per month
Processing Fees 1.10%
Other Charges -
Valuation charges Used Cars Rs2000 per case

Staff Vehicle Loan

Bank of India also provide car loan to their employees this loan is only meant
for the staff members of bank at attractive rate of interest with longer
repayment payment period. This loan is different from star auto fin loan.

Details of Staff Vehicle Loan:-

 Maximum amount = Rs360000
 Minimum Amount = Rs80000
 Margin = 10%
 Maximum repayment period = 15years
 Rate of Interest:-
 Up to Rs80000 at 8%pa.
 Above Rs80000 to Rs360000 at 12%pa.

56
CAR LOANS-THE PROCESS
The process can be broadly shown as follows-

Customer

DSA/DEALER/OTHER

CHANNEL

Sell Scheme, with applicable

LTV for relevant model

57
 NO
Check STOP
Eligibility

Check
Cluster Head
Authorit
y Case to be entered
in LTS (Loan
Yes Tracking System)
Deviation Product ”Four
Within Approval Authority Approval Wheeler”

Asset Staff to follow up

for

Update LTS

 Conduct Telephonic Verification

 Collect Preapproval documents
 Fill out Approval Card
 Soft Approval by BM/Cluster Head
 Communicate Soft Approval to
Customer(Optional)

58
Customer to submit Fax Application Form Shoot CPV at
agreement & S.I to CPA for Dedupe CPV Agency
letter check

CPA/Credit staff to
Conduct Dedupe + Co- Communicate
ordinate for CPV Report REJECT to Branch

 CPA/Credit Staff to communicate status to

Branch.
 BM to sign Approval Card & send complete
file to Assets office.
 CAR Sales Staff to arrange delivery/
disbursement & inform branch when
distributed.

Branch to enter in LTS under new

Product ”CAR Direct Approvals”
59
END

60
CALCULATION OF EMI
Case1 Normal case (when there is no advance EMI)
Loan amount 200000
Tenure (months) 24
Interest rate (Account 10%
IRR)
EMI 9,229
Advance EMI -
Month EMI Principal Interest Outstanding Cash flow
200000 -200000
1 9,229 7,562.33 1,666.66 192,437.66 9229
2 9,229 7,625.35 1,603.64 184,812.31 9229
3 9,229 7,688.89 1,540.10 177,123.41 9229
4 9,229 7,752.97 1,476.02 169,370.44 9229
5 9,229 7,817.58 1,411.42 161,552.86 9229
6 9,229 7,882.72 1,346.27 153,670.13 9229
7 9,229 7,948.41 1,280.58 145,721.72 9229
8 9,229 8,014.65 1,214.34 137,707.07 9229
9 9,229 8,081.44 1,147.55 129,625.63 9229
10 9,229 8,148.78 1,080.21 121,476.84 9229
11 9,229 8,216.69 1,012.30 113,260.15 9229
12 9,229 8,285.16 943.83 104,974.98 9229
13 9,229 8,354.20 874.79 96620.77 9229
14 9,229 8,423.82 805.17 88196.95 9229
15 9,229 8,494.02 734.97 79702.92 9229
16 9,229 8,564.80 664.19 71138.11 9229
17 9,229 8,636.18 592.81 62501.93 9229
18 9,229 8,708.15 520.84 53793.78 9229
19 9,229 8,780.71 448.28 45013.06 9229
20 9,229 8,853.89 375.10 36159.17 9229
21 9,229 8,927.67 301.32 27231.49 9229
22 9,229 9,002.07 226.92 18229.42 9229
23 9,229 9,077.08 151.91 9152.34 9229
24 9,229 9,152.73 76.26 -0.38 9229
61
Comparison of car loan scheme offered by other
bank with Bank of India
Almost every bank offers car loans. I had compared the entire car
loan scheme offered by HDFC Bank, ABN AMRO Bank, State Bank of
India, Oriental Bank of Commerce and Bank of India and the details
of the findings are as follows.

HDFC Bank:
 HDFC Bank offered car loan scheme with following features:-
 HDFC Bank Provide car loan individuals as well as business concerns also.
 The rate of interest charged by HDFC Banks is as follows:-
 In case New Car :- 11.30%
 HDFC Bank Provide finance up to 90% of the total loan amount.
 HDFC Bank Provide facility to repay the loan amount maximum in 7years.
 HDFC charge processing fees of Rs2150 – Rs3650.

ABN AMRO Bank:

 ABN AMRO Bank provide car loan to individual as well as Business
concern also.
 The rate of interest charged by ABN AMRO Bank is as follows: In Case of
New Car-15%.
 ABN AMRO Bank Provide finance up to Rs20Lakh.
 ABN AMRO Bank charge 5% prepayment charge if the loan is paid before
the tenure of the loan.

STATE BANK OF INDIA:

State Bank of India offers car loan scheme with following features.

62
  State Bank of India provide loan to individual as well as Business
concern also.
 State bank of India provide loan which is repayable maximum up
to 7years for new car & In case of old car it is 3years.
 State Bank of India charge a prepayment charge of 2% in case loan
is paid before the tenure of the loan.
 State Bank of India Provide a loan amount of Rs15lakh.
 The rate of interest charged by State Bank of India is as follows:
In case of new car
1st year - 8%
For 2nd & 3rd year – 10%
For 4th & 5th year - 11.25%
For 6th & 7th year – 11.50%
In case of old car
Up to 3years – 14.25%
Above 3 years – 15.00%

ORIENTAL BANK OF COMMERCE

 Oriental Bank of commerce Provide car loan to individuals as well as
business concerns also.
 Oriental Bank of commerce provide loan up to 84months.
 Oriental Bank of commerce charge interest rate as follows:-
In case of new car
Up to 3years => 10.25%pa
Above 3years => 10.75%pa

63
 In case of old car
Up to 3years => 13.25%
Above 3years => 13.75%
 Oriental Bank of Commerce finances up to Rs10lakh.
Comparison of different bank’s car loan schemes it gives result that Bank of
India provides best car loan scheme because it provide loan up to Rs25lakhs
for individual & for corporate it can finance up to Rs100lakh at very low
interest rate. Like up to 3years it charge only 8.75% & beyond 3years it
charge interest of 9.25% per annum. Like when a people wants to financed
his car worth Rs7Lakh & want to repay this amount in 3years then SBI (8%)
& BOI (8.75%) charge lowest interest rates. But when a person wants to
repay his loan in more than 3years then Bank of India is best because it
charge only 9.25% interest rate on the other hand if a person wants to
finance a car worth of more than Rs7lakhs then again only Bank of India
offers him lowest rate of interest which is 9.50% pa Up to 3years & after
3years it charge only 10.00% interest rate per annum. Moreover it provide
maximum amount of loan 25lakhs among all public sector banks. So only
Bank of India offers the best car loan scheme which suits almost every one
& make easier to purchase a car.

64
 CHAPTER – 4

ANALYSIS AND FINDINGS

ANALYSIS

OPPORTUNITIES
As car loan is a profitable lending option due to continued good performance
of the services sector, the bank will continue to focus on this segment. The
bank will continue to study the market requirements, evolve innovative and
diversified products to reach the customers in every nook and corner of the
country.

65
For better decision support system,business intelligence, management
information system and decision making. The bank is in final stage of rolling out
data warehouse.

RISK AND CONCERNS

Libralisation opens up various opportunities and at the same time it
also increase exposure to risks. Risk management, therefore, is
paramount. Since risks have a direct and proportional relation with
returns, the bank has to clearly envisage its risks which can be
managed effectively. Further risks management system need to be
brought to such a level of sophistication that the systems on their
own generate adequate capital and liquidity cushions against
economic and market distruptions.

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank you depend for your regular

transaction.
() No of People

Bank of India 30%

SBI 45%
ICICI Bank 8%
HDFC Bank 6%
66
Other Banks 11%
TOTAL No. OF PEOPLE 100

It has been observed that approximately 30% correspondents are

using the services of Bank of India for their daily transaction. Around
45% of People are using SBI for their daily transaction. Around 8% of
people are using ICICI Bank for their transaction and only 6% & 11%
of people are using HDFC & other Bank service respectively in Mayur
Vihar Phase-1.

Q2. Are you aware of Products & services provided

by BOI.

a) Yes 70%
b) NO 30%

67
From the above data it is clear that most of the customers (Around
70%) of Mayur Vihar have the idea about the product & services of
Bank of India.

68
Q3. If yes are you aware of the advance
products (Loan segments) of BOI.

a) YES 68%
b) NO 32%

It is clear that most of the people have the idea about the advance
product of Bank of India. Almost all the 68% people who have the
idea about the advance products are the user of Bank of India
products & services.

69
Q4. Which bank you prefer for taking loans

a) BOI 51%
b) SBI 35%
c) ICICI Bank 3%
d) HDFC Bank 2%
e) Other Banks 9%

According to my sample size 51% of people prefer Bank of India for

loan product, but some people prefer SBI, ICICI, HDFC & Other banks
for loan because they are working with the bank & it is easier for
them to pay the interest because it is less as compared to other bank
because they are the employees of that bank.

70
Q5. If you prefer Bank of India for taking loan
than what influence you to take loan from
Bank of India

Most of the people said that they prefer Bank of India for taking loan
because of the transparency & the lowest interest rate for any kind of
loan product and it is easy to get loan from Bank of India as
compared to other banks because less paper work is required &
simple & fast processing is required.

71
Q6. Which loan product of BOI you have used.
a) Home Loan 43% (32)
b) Education Loan 19% (14)
c) Car Loan 21% (16)
d) Personal Loan 9% (7)
e) Other Loans 8% (6)
TOTAL NO. OF PEOPLE 75

From the sample size 75% of people are using the BOI loan
product. From the 75 people 43% of people took home loan
from BOI. 19% of people took education loan for their children,
21% of people took car loan from BOI. 9% of people took
personal loan.

72
Q7. What do you feel about the services
providing by Bank of India in advance
product.

a) Bad 0%
b) Satisfactory 25%
c) Good 55%
d) Excellent 20%
TOTAL NO. OF PEOPLE 100

From this it is clear that the service provide by BOI in its advance
product is good in between the customer. All of them satisfy with
the product provide by Bank of India. 55% of people said that the
service provide by BOI is good & 20% said it is excellent & 25% of
people said that it is satisfactory.

73
 Q8.Which features you like most in loan
segment of BOI.
a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Longer repayment period

Most of the people like the attractive interest rate & transparency.
It’s easier of people to repay the whole loan amount with low
interest rates & longer repayment period.

74
FINDINGS
 Bank of India is applying aggressive marketing strategy for car
loan.
 SBI is a major competitor of Bank of India.
 Bank of India is having Tie –up with various Automobile
companies eg. (Tata Motors, Maruti, Hyundai Motors)
 Bank of India is trying to Tie-up with some other Automobile
Companies.
 Bank of India is offering various facilities to customers for taking
loan.
 Bank of India is trying to find better relationship with local
dealers to increase to the customer database.
 Bank of India is using proper market channel to aware customer
about car loan.
 Bank of India is advertising their car loan by using print media
also.
 Bank of India also tries to make new Tie- ups with other
Automobile Companies (These Tie- ups arrangement changes
from time to time).

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 CHAPTER -5

CONCLUSION AND SUGGESTIONS

76
CONCLUSION
There are various type of car loans are being provided by Bank of
India ranging from short – term to long- term to packing and like. But
as studies throughout the project, lending process is not so simple. It
involve a long series of steps and planning as suited to and decided
by the bank itself, of course, abiding by the rules and regulations of
Bank of India and RBI.

 It Provide easy car loan access if all required documents are

prepared.
 It charge minimum processing fees moreover processing
charges are waived for senior citizens, staff members & retired
employees of the bank & pensioners drawing pension from the
bank.
 It fulfills the dreams of the people having a car.
 Somewhere it Contribute in Indian economy by releasing the
liquidity in terms of loans.
 Better and timely quality of services and product diversification.
 Highest loan amount in comparison of other banks.
 It provide car loan at lowest rate of interest in comparison to
other banks.
Negative Points
 The bank take long processing time, during the time customer
may dilute his plan of taking loan.
 Communication gap to approach right kind of people
 No long term customer relationship.
 List of defaulters
 Bank of India is not providing services like refinance &overdraft
RECOMMENDATIONS
 Bank of India should go for advertise car loan availability.
 Try to maintain very good relationship with car dealers.

77
  Bank of India is having a large number of existing customers so
they should convert their strength in opportunity.
 Try to aware customer about car loan availability & procedure
that how to apply for loan.
 More promotional schemes should be followed, for example if a
customer is paying his EMI regularly, he can be given some gift
or some concession in interest rate that would be an incentive
for others also to pay regularly.
 By making randomly surveys it should identify prospective
buyers.
 By declaring special loan scheme on festive seasons i.e. loan
mela.
 Facility to access loan from anywhere i.e. nearest to your
resident, office, working place.
 Properly and timely solution of customer complaints.
 Bank of India should also provide extra facilities like Refinance
& Overdraft facilities which help in making new & retain existing
customers & win the trust of the people.
 Bank of India should go for advertise car loan availability by
using different media like T.V, Newspaper, Radio, Print media
etc. in order to make more people aware of the car loan
scheme.

APPENDICSES:-
Q. Who can avail car loan?

A. Individuals and Business Concerns.

Q. Whether finance is also available for used cars?

A. Finance is also available for purchase of Used Cars not older than 3
years.

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Q. How much loan can be availed under the scheme?

A. For individuals, loan amount shall be 24 times the net monthly

Salary/Income, subject to maximum of 70% of the cost of the vehicle
whichever is less. In case of business concerns, loan amount can be
up to Rs100lakh or Rs1crore.

Q. Whether the income of the spouse is also taken into account for
determining the amount of loan?

A. Yes, income of the spouse can also be taken into account for
determining the amount of loan. In such cases, the spouse shall
stand as a guarantor.

Q. What will be the repayment period?

A. Amount of loan together with interest shall be repayable in 72

equal monthly installments. However, for old car, loan together with
interest is to Repaid maximum in 36 equal monthly Installment.

Q. How much loan can be availed for Indian Make & Foreign Make
Vehicle?

A. Bank of India Provide car loan for Indian Vehicle as well as for
Foreign Make Vehicle. Bank Provide maximum amount of Rs25lakh
for Indian make vehicle & Rs75lakh for Foreign Make Vehicle.

Q. Whether interest applicable is flat rate or at reducing balance?

A. Interest is charged on reducing balance.

Q. What formalities are to be completed for availing the facility?

A. The following documents are required to be submitted:

1. Performa Invoice of Car to be purchased

2. Proof of residence
3. Proof of Income
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 4. Detail of Guarantor

LIMITATIONS
 Due to Shortage of Bank Staff it is difficult to collect
data from Bank employees. As they have lot of
workload due to which Bank employees does not want
to give information as they feel it is wastage of time.

CHAPTER – 6
80
 BIBLOGRAPHY

BIBLIOGRAPHY

 E-CIRCULER OF BANK OF INDIA.

 WWW.BANK OF INDIA.COM.
 WWW.GOOGLE.COM.
 WWW.MONEYMARKET.COM
 NEWSPAPERS & MAGZINES.
 BOI ANNUAL REPORT.

81
CHAPTER – 7

82
 ANNEXTURE

Questionnaire
Name- ____________________________________

Occupation- ______________________________

Contact Detail- ___________________________

Q1. On which bank you depend for your regular

transaction.

a) BOI
b) SBI
c) HDFC
d) ICICI

83
 e) Other Bank, Specify (_____________)

Q2. Are you aware of products & services provided by

BOI.

a) YES
b) NO

Q3. If yes are you aware of the advance products (Loan

segments) of BOI.

a) YES
b) NO

Q4. Which bank you prefer for taking loans

a) BOI
b) SBI
c) HDFC
d) ICICI bank
e) Other Bank, Specify (___________)

Q5. If you prefer BOI for taking loan than what influence
you to take loan from SBI

________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________________.

Q6. Which loan product of BOI you have used.

a) Home Loan
b) Education Loan

84
 c) Car Loan
d) Personal Loan
e) Other Loans, Specify (____________)

Q7. What do you feel about the services providing

by BOI in advance product.

a) Bad
b) Satisfactory
c) Good
d) Excellent

Q8. Which feature you like most in loan segments

of BOI.

a) Less paper work

b) Attractive interest rate
c) Transparency
d) Simple & fast processing

Q9. Any suggestion you want to give for the

betterment of BOI advance product.

________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
_________.

85