UNIVERSITY OF MUMBAI

A PROJECT REPORT ON
“A COMPARTIVE STUDY ON HOME LOAN SERVICES OFFERED
BY ICICI BANK AND SBI BANK”

A Project Submitted to

University of Mumbai for partial completion of the degree

of Bachelor in Commerce (Accounting and Finance)
(Academic Year 2019-2020)
Under the Faculty of
Commerce

By

NILESH SAGAR GUPTA

Under the Guidance of Prof. DHAIRYA VEERA

N.E.S. RATNAM COLLEGE OF ARTS, SCIENCE &

COMMERCE BHANDUP – 400078
 DECLARATION

I the undersigned here by, MR. NILESH SAGAR GUPTA declare that
the work embodies in this project work titled “A COMPARTIVE STUDY
ON HOME LOAN SERVICES OFFERED BY ICICI BANK AND SBI
BANK”

Forms my own contribution to the research work carried out under the
guidance of “Prof. DHAIRYA VEERA” is a result of my own research
work and has not been previously submitted to any other University for
any other Degree to this or any other University. Wherever reference has
been made to previous works of others, it has been clearly indicated as
such and included in the bibliography. I, here by further declare that all
information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

MR. NILESH SAGAR GUPTA

CERTIFIED BY

PROF. DHAIRYA VERRA

 CERTIFICATE

This is to certify that Mr. NILESH SAGAR GUPTA has worked and
duly completed his Project Work for the degree of Bachelor in
Commerce (Accounting and Finance) under the Faculty of Commerce
and his project is entitled, “A COMPARATIVE STUDY ON HOME
LOANS SERVICES OFFERED BY ICICI BANK AND SBI BANK”
under my supervision.I further certify that the entire work has been
done by the learner under my guidance and that no part of it has been
submitted previously for any Degree or Diploma of any University. It
is his own work and facts reported by his personal findings and
investigation.

Seal Name and Signature of Guiding Teacher

Date of Submission
 ACKNOWLEDGMENT

To list who all have helped me is difficult they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels

and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thank my Principal, DR. (Mrs.) MARY VIMOCHANA

for providing the necessary facilities required for completion of this
project.

I take this opportunity to thank our Vice-Principal & HOD, Commerce

DR. (Mrs.) LATA SWAMINATHAN, for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project

guide Prof. DHAIRYA VEERA whose guidance and care made the
project successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.
 TABLE OF CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

1 Introduction to Banking System
1.1. Meaning of House Loan

1.2. Definition of House Loan

1.3. Types of House Loan

1.4. Home Loan Industries in India

1.5. Home Loan Product Review

2 Research Methodology

2.1. Objectives of the study

2.2. Need and Scope of study

2.3. Limitation of the study

2.4. Methods of data collection

2.5. Sample Size and Technique

2.6. Tools for data collection

3 Review of Literature

5 Recommendations and Conclusion

5.1. Conclusion
5.2. Recommendations

5.3. Bibliography
5.4. Annexure-1
 EXECUTIVE SUMMARY

My project aims at comparative study on home loan borrowed from private and public bank in my
research I consider SBI bank, the public sector bank and ICICI bank, the private sector. I found
getting home loan from public bank in much faster and convenient way as compared to private
sector bank. As far as documentation is concerned, private sector bank requires more documents
than public sector banks. Moreover as interest rates is concerned there are not much difference
between the two banks. On the contrary when there is reduction in interest rate by RBI it is public
banks that pass on the benefit to the borrowers much faster than private sector banks. As there is
more flexibility while borrowing loan from public sector banks, as many times they waive-off pre-
payment penalty. As far as processing fees are concerns it is almost same in the both types of banks
but sometimes under certain scheme, public bank waive-off processing fees. Many times public
bank appoint financial agent to help home loan seeker in borrowing the loan at competitive rate.
This agent provides home services to the client as per client convenience. Of late even private sector
bank has started providing efficient services like public sector bank but still procedure followed by
private sector bank long cumbersome. There are signs that private sector bank are also working to
provide home loans efficiently and conveniently as public bank as per terms and conditions.
 CHAPTER- 1

INTRODUCTION

1.1) MEANING OF HOME LOAN:

Home is one of the things that everyone one wants to own. Home is a dream of every
person that shows the quantity of efforts, sacrifices luxuries and above all gathering
funds little by little to afford one’s dream. Home is a shelter to person where he rests
and feels comfortable. The demand of home loans has increased dramatically. For
fulfill this purpose many banks are providing home loans whether commercial banks
or financial institutions to the people who want to have a home. Part of the reason for
this increase is because the accessibility of loans has gotten bigger. Today, home loans
are available in the market at very low interest rates that meet the demands of many
home buyers. A home represents the largest asset that typically people have and this is
why home loans have such a huge impact in the loan market today. When a person
purchases a home, he or she will be investing a huge amount of cash. Many people
can’t come up with the whole money to pay out the house, while some others can’t
even afford to invest money for the house they will like to purchase. When getting a
home loan, the individuals should consider taking care of different aspects related to
the home loan. The origin of western type commercial Banking in India dates back to
the 18th century. The story of banking starts from Bank of Hindustan established in
1770 and it was first bank at Calcutta under European management. It was liquidated
in 1830-32. In 1786 General Bank of India was set up. The Bank of Calcutta
established in 1806 immediately became Bank of Bengal. In 1921 these 3 banks
merged with each other and Imperial Bank of India got birth. Imperial Bank of India
was later renamed in 1955 as the State Bank of India. Thus, State Bank of India is the
oldest Bank of India. After the independence, Reserve Bank of India (RBI) was
nationalized and given wide powers. The operations of all the banks in India are
controlled by the Reserve Bank of India. All the Indian banks are governed by the
Reserve Bank of India (RBI). After 1969, commercial banks are broadly classified
into nationalized or public sector banks and private sector banks. The State Bank of
India (S.B.I) and its associate banks along with another 21 banks are public sector
banks. The private sector banks include a small number of Indian scheduled banks,
which have not been nationalized, and branches of foreign exchange banks. After
1991, the banking scenario has been changed completely. The impact of globalization
and privatization has affected work culture of both, public sector and private sector
banks. Further, in India there are two types of banks. The Public Sector and Private
Sector Banks, which can be differentiated on the basis of the following points A
public sector bank is one where more than fifty percentage of the stake is owned by
the Government. All nationalized banks are public sector banks. There are a total of
27 public sector banks in India [19 nationalized banks + 6 State bank groups (S.B.I. +
5 associates) + 1 IDBI bank + 1 recent Bhartiya Mahila Bank]. In a private sector
banks majority of the stake belong to private shareholders. These banks are managed
and control by private promoters. The old private sector banks are those which
existed before the nationalization in 1969. The new private Sector banks are those
which that got their banking license after the liberalization in 1990s. There are 29
private sector banks in India.

Retail banking is about providing banking services to individuals and joint individuals
as opposed to wholesale banking, which focuses on industry and institutional clients.
The concept of retail banking is not new to the banks. Retail banking is now being
viewed as an attractive market segment, which offers opportunities for growth with
profits. It is only in the recent times, when it has attracted special attention of the
Banks, as a solution to some of their immediate concerns. The essence of retail
banking lies in individual customers. Across the globe, retail lending has been the most
spectacular innovation in the commercial banking sector in recent years. Retail loans
comprise consumer credit for specific purpose and credit for general use. The surge in
credit to the retail segment across developing as well as developed economies has
occurred due to commercial banks shifting from traditional banking activities to a
broad-based lending portfolio. The growth of retail lending, especially, in emerging
economies, is attributable to the rapid advances in information technology, the
evolving macroeconomic environment owing to financial market reform, and several
micro-level demand and supply side factors. Technology induced innovative financial
products have facilitated strengthening of balance sheets and income structures of
banks. Technology has enabled a significant reduction in cost of external finance for
borrowers, while banks have benefited from product innovations, and lower
transaction cost associated with collection, processing and use of information. This, in
its wake, has offered banks better techniques for risk management and pricing of
products.

The surge in retail lending, however, has certain limitations. Retail lending may
accentuate indebtedness of households, with implications for sustainability of private
consumption and saving in the medium to longer horizon. Rapid increase in retail
loans may impinge on bank credit for investment activities with implications for
economic growth. Several cross section studies suggest that retail lending may,
however, pose various risks with implications for banks’ asset quality. Housing is one
of the three prime necessities of life. Food and clothing the other two prime
requirements have been met to some extent. Housing demand still needs to be fulfilled.
This is because of the shortage of funds and inadequacy of financial institutions,
coupled with an increase in building material, labor and land costs. Housing finance in
developing countries is a social good in view of its backward and forward linkages
with other sectors of the economy. In India, growth of housing finance segment has
accelerated in recent years in response to the several supporting policy measures taken
and the supervisory incentives instituted. The Reserve Bank has been promoting the
housing sector through minimum disbursement targets linked to incremental deposits
and also by prescribing lower capital adequacy requirements. Gone are the days, when
getting a home loan was a tough task. Nowadays, obtaining a home loan is a cakewalk,
thanks to low interest rates, income tax benefits, and competition among the Housing
Finance Companies (HFCs). The market is flooded with HFCs, which are competing
to attract customers with a number of offers.

Most of the Customers are not familiar with the basics of home loans, and are not sure
what the best home loan option is. To boost the housing sector there is a need to
regulate and have a greater access of credit for housing. Thus a good housing finance
system is imperative. Housing Finance Companies (HFC) need to be recognized as a
part of total financial system and should be given a level playing field. Housing
finance is becoming major issue and major area of operation for corporate in India.
Besides private sector, semi government and nationalized banks are in the race. With
various schemes to suit your requirement and with attractive interest rates, these
housing finance companies are offering most attractive finance options for home
seekers. In India there is a need to create awareness about housing linked saving
schemes also needed I is an efficient legal frame work for foreclosure, securitization of
mortgage debts, secondary mortgages markets, variable rate mortgages and innovative
housing credit schemes. Thus, it is high time that India prioritizes the housing sector
which will enable varied advantages to economy in form of employment,
noninflationary growth and reduced pressure on the Balance of Payments.
1.2) DEFINITON OF HOME LOAN:

HOME LIOAN is defined as, “A sum of money borrowed from a financial institution
or bank to purchase a house. Home loans consist of an adjustable or fixed interest rate
and payment terms.”

It refers to as a loan (or mortgage) is a contract between a borrower and a lender that
allows someone to borrow money to buy a house, apartment, condo, or other livable
property. A home loan is typically paid back over a term of 10, 15 or 30 years.

Home loans, also known as mortgages, use the borrower's home for collateral. This
home can be a single-family house up to a four-unit property, as well as a
condominium or cooperative unit. Lenders fund home loans, but both the lenders
themselves and brokers who act on behalf of the lenders originate, or process, them.

11
1.3) TYPES OF HOME LOANS:

Home loans work like any other debt. That is, loans are simply specific money that we
borrow from a bank, a private lender, or some other type of lender. Afterwards, we
must repay our debts with interest. However, unlike other types of loans, home loans
are different in several respects. Owning a piece of land or property is a lifetime dream
for every individual .There is many home loans provider in the market. There are
different types of home loan i.e.

• Home Purchase Loans

• Home Improvement Loans

• Home Construction Loans

• Home Extension Loans

• Home Equity Loans

• Land Purchase Loans

Home purchase loans:

These are the basic forms of home loans used for purchasing of anew home. With
about a million home lenders and mortgage brokers it's becoming a tough challenge as
the days are progressing. But at the same time, when the sites are coming up with all
the latest tools and relevant information for us, and with all such conveniences,
12
obtaining a home purchase loan or mortgage has become really pretty simple.
However, at the same time though, we may be flummoxed to look so many attractive
rates and offers in the market, not to forget the hidden costs associated with each of
them.

Home improvement loan:

Home improvement loans are used to finance improvements and add on to the
existing set of credentials of beauty on your owned house, recently purchased
property or rented accommodation. In general it includes: repairs, remodeling, energy-
related items (permanent in nature), repairs, a new kitchen, a new bathroom, terrace,
an extension or general property improvements. Luxury items and fireplaces are
generally not eligible, though. Many improvements in landscape and even swimming
pools are nowadays considered to be a part of home improvement.

Home construction loan:

Home construction loans are used to finance for the construction of our newly
acquired home or if we are planning to build a home.

The factors include in calculations for house building costs?

• Design of the house

• Construction cost
• Financing Cost
• Buildable site

All the above mentioned costs will help us to determine the amount we may need to
borrow. For example, besides calculating the construction costs, we may also be
required to consider the total expenditures to develop the site in order to build. Each
site is unique requiring different expenditures so this specific rupee amount will vary
from site location to site location.

13
Payment:
Before the house starts getting build, we will be required to pay a deposit to your
builder as well as paying a deposit for the land if we are buying land. As work
progresses you will need to make payments to the builder. Certain loans can be
structured for progress payments to be made during construction.

Home extinction loan:

Home extension loans are used by customers to get loans from the banks to extend
their houses, by adding more rooms, kitchens, wash rooms, terraces, or any other
rooms for your growing family. It may also be used to enclose open balcony/terrace
space, or constructing a temple.

Maximum Amount of Home Extension Loans:

Banks generally offers about 70-85% of the total amount of home extension as loan.
The amount of loan sanctioned also depends on a number of factors such as the age of
the applicant at the time of loan, tenure of the loan, repayment capacity of the
borrower; his/her credit history etc.

Home equity loan:

Home equity loans helps customer to enact the market value of the commodity by
taking a loan by mortgaging the property. So, Home equity loans are availed by
customers, who wish to mortgage his/her property to the bank for taking some loan
for some other purpose. Then, it's up to the bank's discretion to consider the market
value of the property and accordingly decide how much to pay to the customer. Both
the residential as well as non-residential property can be considered for the approval
of the loan, provided the mortgager is a licensed titleholder and the land is free from
any kind of dispute. Home equity loans don't restrict one to use the loan money in
specific investments. It might also be used in marriage, higher education, medical
expenses, etc. However it should not be used in any illegal or speculation purposes.

14
Land purchase loan:

Land Purchase loans are used by customers who wish to purchase a plot of land for
commercial or residential purpose. Everyone has his/her dream perfectly sketched in
his souls and so is his ambition to get his house erected on the exact location he
dreamt that to be. If you have found and shortlisted the piece of land, and have arrived
here for finance, you have come to the best place you could have arrived in the web.
Now, that you have decided to purchase a land as an investment or for your own
dream home ,you will realize that a land purchase loan is one you will cherish. Loans
that are strictly for land purchase can be as scarce as good residential plots. While
many lending firms around the nation compete to provide mortgages for the purchase
of a house on a lot, only local institutions typically will be interested in lending for an
empty lot. Bridge loans are designed for people who wish to sell the existing home
and purchase another one. The bridge loans help finance the new home, until a buyer
is found for the home.

Bridge loans:

Bridge loans are used by customers as an effective vehicle to capitalize on a purchase

opportunity. It can be considered as a short term financing scheme which
is generally expected to be paid back, within the range of 6-36 months, till the time
the borrower gets more permanent and lower cost financing. So, bridge loans, (or
swing loans as they are otherwise said) is a short term loan provided by various banks
like Bank of India, Citibank, ICICI etc. often used for commercial real estate
purchases, retrieve real estate from foreclosure. Bridge loans in corporate finance are
called gap financing, and are used to cover the time between redemption of issuance
of one bond and its replacement by a new issue. They can also be operating loans for
periods between LOI and acquisition, or quiet period and IPO. Bridge loan may
contain a decent proportion of prepaid interest, sometimes as much as six months. If
the home gets sold before that time, you may receive interest payments back, but if it
hasn't sold, you may be required to continue payments.

15
1.4) HOME LOAN INDUSTRIES IN INDIA:

A.) STATE BANK OF INDIA (SBI)

 COMPANY PROFILE OF SBI:

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic
network of over 9000 branches (approximately 14% of all bank branches) and
commands one-fifth of deposits and loans of all scheduled commercial banks in India.
The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries offering merchant banking services, fund management,
factoring services, primary dealership in government securities, credit cards and
insurance.
The eight banking subsidiaries are:
1-State Bank of Bikaner and Jaipur
(SBBJ) 2-State Bank of Hyderabad
(SBH)
3- State Bank of India (SBI)
4- State Bank of Indore
(SBIR) 5-State Bank of
Mysore (SBM) 6-State
Bank of Patiala (SBP)
7-State Bank of Saurashtra
(SBS) 8-State Bank of
Travancore (SBT)

The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later
called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two
16
other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to
form the Imperial Bank of India .In 1955, the controlling interest in the Imperial Bank
of India was acquired by the Reserve Bank of India and the State Bank of India (SBI)
came into existence by an act of Parliament as successor to the Imperial Bank of
India. Today, State Bank of India (SBI) has spread its arms around the world and has
a network of branches spanning all time zones. SBI's International Banking Group
delivers the full range of cross-border finance solutions through its four wings –
The Domestic division, the Foreign Offices division, the Foreign Department and the
International Services division.

State Bank of India (SBI) (LSE:SBID) is the largest bank in India. If one measures by
the number of branch offices and employees, SBI is the largest bank in the world.
Established in1806asBank of Calcutta, it is the oldest commercial bank in the Indian
subcontinent. SBI provides various domestic, international and NRI products and
services, through its vast network in India and overseas. With an asset base of $126

billion and its reach, it is a regional banking behemoth. The government nationalized
the bank in 1955, with the Reserve Bank of India taking a 60% ownership stake. In
recent years the bank has focused on three priorities,

1) reducing its huge staff through Golden handshake schemes known as the
Voluntary Retirement Scheme, which saw many of its best and brightest defect to
the private sector,

2) Computerizing its operations and

3) Changing the attitude of its employees (through an ambitious program aptly

named 'Parivartan' which means change) as a large number of employees behave
very rude to customers.

17
HISTORY:

The State Bank of India traces its roots to the first decade of 19th century ,when the
Bank of Calcutta, later renamed the Bank of Bengal, was established on2 June
1806.The government amalgamated Bank of Bengal and two other Presidency banks,
namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of
Madrason27 January 1921, and named there organized banking entity the Imperial
Bank of India. All these Presidency banks had been incorporated as joint stock
companies, and were the result of the royal charters. The Imperial Bank of India
continued as a joint stock company. Until the establishment of a central bank in India
the Imperial Bank and its early predecessors served as India's central bank, at least in
terms of issuing the currency. The State Bank of India Act 1955, enacted by the
Parliament of India ,authorized the Reserve Bank of India, which is the central
banking organization of India, to acquire a controlling interest in the Imperial Bank of
India, which was renamed the State Bank of India on30 April 1955.

TIMELINE:

•June 2,1806: The Bank of Calcutta established.

•January 2, 1809: This became the Bank of Bengal.
•April 15, 1840:Bank of Bombay established.
•July 1,1843:Bank of Madras established.
•1861: Paper Currency Act passed.
•January 27, 1921: all three banks amalgamated to form Imperial Bank of India.
•July 1,1955: State Bank of India formed; becomes the first Indian bank to be nationalize.
•1959: State Bank of India (Subsidiary Banks) Act passed, enabling the State Bank of
India to take over eight former State-associated banks as its subsidiaries.
•1980sWhen Bank of Cochin in Kerala faced a financial crisis, the government
merged it with State Bank of India.

18
•June 29, 2007: The Government of India today acquired the entire Reserve Bank of
India (RBI) shareholding in State Bank of India (SBI), consisting of over 314 million
equity shares at a total amount of over 355 billion rupees.

ASSOCIATE BANKS :

There are seven other associate banks that fall under SBI. They all use the "State Bank
of" name followed by the regional headquarters' name. These were originally banks
belonging to princely states before the government nationalized them in1959. In tune
with the first Five Year Plan, emphasizing the development of rural India, the
government integrated these banks with the State Bank of India to expand its rural
outreach. The State Bank group refers to the seven associates and the parent bank. All
the banks use the same logo of a blue keyhole. Currently, the group is merging all the
associate banks into SBI, which will create a "mega bank", and one hopes, streamline
operations and unlock value.
•State Bank of Bikaner & Jaipur
•State Bank of Hyderabad
•State Bank of Indore
•State Bank of Mysore
•State Bank of Patiala
•State Bank of Saurashtra
•State Bank of Travancore

FOREIGN OFFICES :

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

FOREIGN BRANCHES :

SBI has branches in these countries:

•Australia
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•Bahrain
•Bangladesh
•Belgium
•Canada
•Dubai
•France
•Germany
•Hong Kong
•Israel
•Japan
•People's Republic of China
•Republic of Maldives
•Singapore
•South Africa
•Sri Lanka
•Sultanate of Oman
•The Bahamas •U.K.
•U.S.A

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SUBSIDIARIES AND JOINT VENTURES :

In addition to the foreign branches above, SBI has these wholly owned subsidiaries
and joint ventures: • Nepal State Bank Limited
•SBI Mauritius
•Indian Ocean International Bank (Mauritius)
•SBI Canada
•SBI California

GROWTH :

Location- Mumbai, India. State Bank of India has often acted as guarantor to the
Indian Government, most notably during Chandra Shekhar 's tenure as Prime Minister
of India. With more than 9400 branches and a further 4000+ associate bank branches,
the SBI has extensive coverage. Following its arch-rival ICICI Bank , State Bank of
India has electronically networked most of its metropolitan, urban and semi-
urban branches under its Core Banking System (CBS), with over 4500 branches being
incorporated so far. The bank has the largest ATM network in the country having
more than5600 ATMs [1]. The State Bank of India has had steady growth over its
history, though the Harshad Mehta scam in1992marred its image. In recent years, the
bank has sought to expand its overseas operations by buying foreign banks. It is the
only Indian bank to feature in the top 100world banks in the Fortune Global 500rating
and various other rankings. According to the Forbes 2000listing it tops all Indian
companies.

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GROUP OF COMPANIES :

•SBI Capital Markets Ltd

•SBI Mutual Fund (A Trust)
•SBI Factors and Commercial Services Ltd
•SBI DFHI Ltd
•SBI Cards and Payment Services Pvt Ltd
•SBI Life Insurance Co. Ltd -Banc assurance (Life Insurance)
•SBI Funds Management Pvt Ltd
•SBI Canada.

22
IT INITIATIVES:

According to PM Network (December 2006, Vol. 20, No. 12), State Bank
of India launched a project in 2002 to network more than 14,000 domestic and 70
foreign offices and branches. The first and the second phases of the project have
already been completed and the third phase is still in progress. As of December
2006,over 10,000 branches have been covered. The new infrastructure serves as the
bank's backbone, carrying all applications, such as the IP telephone network, ATM
network, Internet banking and internal. The new infrastructure has enabled the bank to
further grow its ATM network with plans to add another 3,000 by the end of
2007raising the total number to 8,600. As of September 20, 2007 SBI has 7236
ATMs.

CORPORATE DETAILS:

State Bank of India is actively involved since 1973 in non-profit activity called
Community Services Banking. State Bank of India is India's largest bank amongst all
public and private sector banks operating in India. State Bank of India owns and
operates the following subsidiaries and Joint Ventures –
• State Bank Of India Credit Card

• State Bank Of India Online

• State Bank Of India USA

• State Bank Of India Services

• State Bank Of India Mutual Funds

• State Bank Of India Branch

23
 • State Bank Of India NRI Account

BANKING SUBSIDIARIES:

•State Bank of Bikaner and Jaipur (SBBJ)

•State Bank of Hyderabad (SBH)

•State Bank of Indore (SBI)

•State Bank of Mysore (SBM)

•State Bank of Patiala (SBP)

•State Bank of Saurashtra (SBS)

•State Bank of Travancore (SBT)

24
FOREIGN SUBSIDIARIES:

•State bank of India International (Mauritius) Ltd.

•State Bank of India (California).

•State Bank of India (Canada).

•INMB Bank Ltd, Lagos. NON- BANKING SUBSIDIARIES.

•SBI Capital Markets Ltd (SBICAP)

•SBI Funds Management Pvt Ltd (SBI FUNDS)

•SBI DFHI Ltd (SBI DFHI)

•SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)

•SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

25
ACTIVITIES:

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

THE MAIN ACTIVITIES OF ARE INTO -

•Personal Banking.

• NRI Services.

•Agriculture.

•International.

•Corporate.

•SME.

•Domestic Treasury.

26
STATE BANK OF INDIA OFFERS THE FOLLOWING
SERVICES TO ITS CUSTOMERS :

•Domestic Treasury.

•SBI Vishwa Yatra Foreign Travel Card.

•Broking Services

•Revised Service Charge.

•ATM Services.

•Internet Banking.

•E-Pay.

•E-Rail.

•RBIEFT.

•Safe Deposit Lockers.

•Gift Cheques.

•MICR Codes.

• Foreign Inward Remittances.

27
PERFORMANCE:

SBI Bank India had Total Income of Rs. 68376.83 crore for the financial year 2006
07.State Bank of India has posted Net Income to the tune of Rs. 6364.38 crore or the
financial year 2006 -07.

ORGANIZATION :

State Bank of India is headed by Mr. O. P. Bhatt, Chairman.

28
B.) INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA
(ICICI)

 COMPANY PROFILE OF ICICI:

ICICI Bank is India's second-largest bank with total assets of Rs3, 849.70 billion (US$
82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billion for the half year
ended September 30,2008. The Bank has a network of about 1,400 branches and 4,530
ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and asset
management. The Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in United States, Singapore,
Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany .ICICI Bank's equity shares are listed in India
on Bombay Stock Exchange and the National Stock Exchange of India Limited
and its American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).

History:

Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank
was reduced to 46%through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE ICICI in fiscal 2000, ICICI
29
Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal
2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and
fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and
long-term project financing to Indian businesses. In the 1990s, ICICI transformed its
business from a development financial institution offering only project finance to a
diversified financial services group offering a wide variety of products and services
both directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or financial institution
from non-Japan Asia to
be listed on the NYSE .After consideration of various corporate structuring
alternatives in the context of the emerging competitive scenario in the Indian banking
industry, and the move towards universal banking ,the managements of ICICI and
ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the
optimal strategic alternative for both entities, and would create the optimal legal
structure for the ICICI group's universal banking strategy. The merger would enhance
value for ICICI shareholders through the merged entity’s access to low –cost deposits,
greater opportunities for earning fee-based income and the Ability to participate in the
payments system and provide transaction banking services. The merger would
enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless
access to ICICI's strong corporate relationships built up over five decades, entry into
new business segments, higher market share in various business segments, particularly
fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In
October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The
merger was approved by shareholders of ICICI and ICICI Bank in January2002, by
the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of
Judicature at Mumbai and the reserve bank of India in April 2002.consequent to the
merger, the ICICI group’s financing and banking operations, both wholesale and
retail, have been integrated in a single entity ICICI bank has formulated a code of

30
business conduct and ethics for its directors and employees. ICICI bank (BSE: ICICI)
(formerly industrial credit and investment corporation of India) is India’s largest
private sector bank in market capitalization and second largest overall I terms of
assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a
network of over 1,399 branches 22 regional offices and 24 million customers (at the
end of July 2007). ICICI Bank offers a wide range of banking products and financial
service to corporate and retail customer through a variety of delivery channels and
specialized subsidiaries and affiliates in the areas of investment banking, life and non-
life insurance, venture capital and asset management. (these data are dynamic.) ICICI
Bank is also the largest issuer of credit cards in India.

ICICI Bank has got its equity shares listed on the stock exchanges atKolkata and
Vadodara, Mumbai and the National Stock Exchange of India Limited,and itsADRson
the New York Stock Exchange (NYSE).The Bank is expanding in overseas markets
and has the largest international balance sheet among Indian banks. ICICI Bank now
has wholly- owned subsidiaries, branches and representatives offices in 18 countries,
including an offshore unit in Mumbai. This includes wholly owned subsidiaries in
Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an
advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and
representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa,
Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI
(Non-Resident Indian) population in particular .ICICI reported a 1.15% rise in net
profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore
in Q2 September 2008 over Q2 September 2007.

31
1) 1955: The Industrial CREDIT Corporation incorporated at the initiative of
World Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
Mr.A. Ramaswami Mudaliar is elected as the first Chairman of ICICI Limited
.ICICI emerges as the major source of foreign currency loans to Indian
industry. Besides funding from World Bank and other multi-

2) 1956: ICICI declared its first dividend, of 3.5%.

3) 1977: ICICI sponsored the formation of Housing Development Finance

Corporation and manages its first equity public issue.

4) 1982: ICICI became the first ever Indian borrower to raise European Currency
Units .ICICI commences leasing business.1984: Mr. S. Nadkarni appointed
the sixth Chairman of ICICI.1985: Mr. N.Vaghul appointed the seventh
Chairman and Managing Director of ICICI.

5) 1986: ICICI became the first Indian institution to receive ADB Loans .ICICI,
along with UTI, set up Credit Rating Information Services of
India Limited, India's first professional credit rating agency .ICICI promotes
Shipping Credit and Investment Company of India Limited .The
Corporation made a public issue of Swiss Franc 75 million in Switzerland,
the first public issue by any Indian entity in the Swiss Capital Market.

6) 1987: ICICI signed a loan agreement for Sterling Pound 10 million with
Commonwealth Development Corporation (CDC), the first loan by CDC for
financing projects in India.

7) 1988: Promoted TDICI - India's first venture capital company.

32
8) 1993: ICICI Securities and Finance Company Limited in joint venture with J.
P. Morgan set up. ICICI Asset Management Company set up.

9) 1994: ICICI Bank set up.

10) 1996: ICICI Ltd became the first company in the Indian financial sector to
raise GDR.SCICI merged with ICICI Ltd.Mr.K.V.Kamath appointed the
Managing Director and CEO of ICICI Ltd.

11) 1997: ICICI Ltd was the first intermediary to move away from a single prime
rate structure to a three-tier prime rates structure and introduced yield-curve-
based pricing .The name "The Industrial Credit and Investment Corporation of
India

Ltd" changed to "ICICI Ltd." ICICI Ltd. announced the takeover of ITC
Classic Finance.

12) 1998: A new logo symbolizing the common corporate identity for the ICICI
Group was introduced .ICICI announced takeover of Anagram Finance.

13) 1999: ICICI launched retail finance - car loans, home loans and loans for
consumer durables. ICICI becomes the first Indian company to get listed on
the NYSE through an issue of American Depositary Shares.

14) 2000: ICICI Bank became the first commercial bank from India to get its stock
listed on the NYSE.ICICI Bank announces merger with Bank of
Madura.2001: The Boards of ICICI Ltd and ICICI Bank approved the merger
of ICICI Ltd. with ICICIBank.2002: ICICI Ltd merged with ICICI Bank Ltd
to create India’s second- largest bank in terms of assets. ICICI assigned higher
than "Sovereign" rating by Moody’s. ICICI Bank launched India’s first CDO
(Collateralized Debt Obligation) Fund named Indian Corporate Collateralized

33
 Debt Obligation Fund (ICCDO Fund)."ELobby", a self-service banking centre
and a first of its kind in India, is inaugurated in Pune..

15) 2003: Representative office set up in China .ICICI Bank’s UK subsidiary

launched .India’s first ever "Visa Mini Credit Card", a credit card 43% smaller
in dimensions was launched .A subsidiary of ICICI Bank was set up in
Canada. Temasek Holdings acquired 5.2% stake in ICICI Bank. ICICI Bank
became the market leader in retail credit in India.

16) 2004: Max Money, a home loan product that offers the dual benefit of higher
eligibility and affordability to a customer, introduced. Mobile banking service
in India launched in association with Reliance Infocomm.

17) 2005:India’s first multi-branded credit card with HPCL and Airtel launched. Kisan Loan Card
and innovative, low-cost ATMs were launched in rural India. ICICI Bank and CNBC TV 18
announced India’s first ever awards recognizing the achievements of SMEs, a pioneering
initiative to encourage the contribution of Small and Medium Enterprises to the growth of the
Indian economy .ICICI Bank opened its 500th branch in India .ICICI Bank introduced
partnership model wherein ICICI Bank would finance the clients directly on the
recommendation of the MFI.ICICI Bank introduced 8 to 8 Banking wherein all the branches of
the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday .ICICI Bank
introduced the concept of floating rate for home loans in India.

18)2006:ICICI Bank launches ICICIACTIVE-Banking Interactive Service - along

with DISH TV, which will allow viewers to see information about the Bank's
products and services and contact detail son their DISH TV screens.2009: Chanda
Kochhar was appointed CEO and MD of ICICI Bank from May 2009 for a period
of five years. She succeeds K. V. Kamath, who was CEO of the bank since 1996.

34
Personal Banking:

• Deposits

• Loans

• Cards

• Investments

• Insurance

• Demat services

• Wealth management

NRI Banking:

• Money Transfer

• Bank accounts

• Investment

• Property Solutions

• Insurance

• Loans
35
Business Banking:

• Corporate net banking

• Cash Management

• Trade services

• FX online

• SME services

• Online taxes

• Custodial services

36
1.5)HOME LOAN PRODUCT REVIEW

A.) SBI

SBI is India's largest lender and a great option for home financing for individuals
living in India. The bank typically charges lower than average interest rates. For
example, SBI's home loan balance transfer and top up loan rates are particularly
competitive.

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

Getting your dream home has become easier with SRI Easy Home
Loam Wilh low interest rates for home loan under Rs. 50 lakhs
category, SBI Easy ensures that you are not burdened with high
interest for your home Ioan- Plus with over 12000 SBI branches
nationwide you can get your Home Loan account parked at a branch
nearest to your present or proposed residence.

Interest rate:

• Interest rate during the first year (i.e. till first anniversary date from
the date of first disbursement) is fixed at 8% p.a.

• Interest rate during next two years is fixed at 9% p. a

37
 Interest rate after three yean may be fixed or Floating as per the borrower's choice
made at the time of sanction. If floating rate option is chosen, then the rate will
be2.5% below SEAR. If fixed ratc option is choscn, thcn thc ratc will bc .75% below
SBAR prcvailing on the third annivenaty date from the dale of first disbutsement ,and
shall have a reset frequency of 5 years from the third anniversary date of the loan.
Fixed interest rate shall be subject to force-majeure clause.(SBAR=11.75% pa.

Loan Amount Processing Fees

Up to Rs.5 Lac Rs.1000/-

Above Rs.5Lac and up to Rs.10Lac Rs.2000/-

Above Rs.10Lac and up to Rs.20Lac Rs.5000/- Above

Rs.20Lac and up to Rs.50Lac Rs.7000/-

38
 II.)SBI ADVANTAGE HOME LOAN – FOR LOAN AMOUNT ABOVE Rs. 50
Lacs

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

Interest Rate

• Interest rate during the first year (i.e. till first anniversary date from the date of
first disbursement) is fixed at 8% p.a.
• Interest rate during next two years is fixed at 9% p. a

• Interest rate after three years may be Fixed or Floating as per the borrower’s
choice made at the time of sanction. If floating rate option is chosen, then the
rate will be1.75% below SBAR. If fixed rate option is chosen, then the rate
will be 0.75% below SBAR prevailing on the third anniversary date from the
date of first disbursement, and shall have a reset frequency of 5 years from the
third anniversary date of the loan. Fixed interest rate shall be subject to force-
majeure clause

PROCESSING FEE

Loan Amount Processing Fees

Above Rs.50Lac And up to Rs.1crore Rs.8000/-

Above Rs.1crore And up to Rs.5crore Rs.10000/-

Above Rs.5crore Rs.20000/-

39
INTEREST RATES

• Interest will be charged at the rates prescribed by the Bank from time to time.

• Borrowers availing loans up to Rs. 75 lacks can opt for paying interest either at
fixed rate or floating rate.

• Interest on individual loans for over Rs. 75 lacks must be charged only at the
floating rate interest linked to SBAR.
.

• SBI Home Loans Unique Advantages:

• Package of exclusive benefits.

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

• Low processing charges.

• No hidden costs or administrative charges.

• No prepayment penalties. Reduce your interest burden and optimally utilize

your surplus funds by prepaying the loan.

• Over 12000 branches nationwide, you can get your Home Loan account parked
at a branch nearest to your present or proposed residence.

40
B.) ICICI :-

Eligibility

Home Loans can be availed by Resident Indian whether salaried or Self-Employed

and also by Non- Resident Indian who are Salaried. For resident Indians the following
are the eligibility norms:

• You must be at least 21 years of age when the loan is sanctioned.

• The loan must terminate before or when you turn 65 years of age or before
retirement, whichever is earlier.

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

Loan Amount:

With ICICI Bank Home Loans, you can get a home loan suited to your needs. The
home loan amount depends on your repayment capability and is restricted to a
maximum of 80% of the cost of the property or the cost of construction as applicable.
A number of factors are taken into account when assessing your repayment capacity.
Repayment capacity takes into consideration factors such as income, age,
qualifications, number of dependents, spouse's income, assets, liabilities, stability,
continuity of occupation and savings history.
However, there are ways by which you can enhance your eligibility.

41
• If your spouse is earning, put him/her as a co-applicant. The additional income
shall be included to enhance your loan amount. In case of any co-owners they
must necessarily be co-applicants.

• The final amount to be sanctioned will depend on your repayment capacity.

However, what you ultimately are entitled to will have to conform within the
limits fixed for each loan.

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

42
Documents required for the Sanctioning of Home Loan:

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

• Duly Completed Application Form

• Photograph

• Fee cheque

• Photo Identity Proof

• Signature Verification Proof

• Residence Address Proof

• Property documents as required.

Document specific for Salaried

• Last 3 months' salary slips

• Form 16

• Bank Statement for last 6 months from salary account

• Repayment details on any existing loans or loan closure letter.

43
Document specific for Self Employed

• Income Tax Return / Computation of Total Income / Auditors Report /

Balance Sheet /Profit & Loss Account certified by Chartered Accountant for
last 2 years (3 years for Home Equity) (both for business and personal of
partners/directors)

• Bank Statement for last 6 months from operating account

• Repayment details on existing loans or loan closure letter

• Board Resolution in case of a company

• Proof of existence of the business entity

• Proof of Office Address

• Photo Identity Proof, Residence Address Proof, Signature Verification must be

provided for all the main partners / directors.

44
Disbursement of ICICI Bank Home Loan;

ICICI Bank Home Loans disburses the loan amount after you identify and select the
property or home that you are purchasing and submit the requisite legal documents.
While one may be under the impression that the list of documents asked for is rather
extensive, please note that it is for customer’s good. Each and every single document
asked for will be verified and checked to ensure your safety. This may take some time
but will complete all the legal and technical verifications to ensure that one has full
rights to his home. Your loan will be disbursed after you identify and select the
property or home that you are purchasing and on your submission of the requisite
legal documents. On satisfactory completion of the above, on registration of the
conveyance deed and on the investment of your own contribution, the loan amount (as
warranted by the stage of construction) will be disbursed by ICICI Bank.

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

• Facility Agreement.

• Disbursal Request Form.

• Cheque Submission Form - for Pre EMI and EMI cheques.

• ECS or Auto Debit for ICICI Bank account holders or Post Dated Cheques for
EMI / Pre EMI.

• Personal Guarantor's Documents (PG Form, Photograph, Identity Proof,

Address Proof, Signature Verification and Income documents, if applicable)

45
Repayment Terms of Home Loan

In order to make taking a home loan an easy process for you, ICICI Bank Home
Loans address all your queries about the repayment terms of Home Loans with
respect to tenure, home loan EMIs , methods of home loans EMI payments and pre-
EMI interest.

What is the repayment tenure?

Repayment tenure is the tenure for the number of year for which the loan gets
sanctioned. We offer you a wide range of options for the tenure of the loan. You can
take a home loan for up to20 years provided you do not reach the age of 65 years or
retire within that period.

What is an EMI?

An EMI refers to an equated monthly installment. It is a fixed amount which you pay
every month towards your loan. It comprises of both, principal repayment and interest
payment.

When does the repayment start?

EMI payments start from the month following the month in which the full
disbursement has been made.

How is the EMI paid?

The EMI is to be paid every month through post-dated cheques (PDCs) or Electronic
Clearing System (ECS)*. If you are opting for PDCs, then you will have to provide 36
PDCs upfront. The PDCs are to be dated on the 1st of every month. However, if you
receive your salary a few days later, we provide the flexibility of dating the cheques

46
for the 10th of the month. In case you have an ICICI Savings account you can also go
in for the facility of Auto Debit.

What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and outstanding dues
will be charged as per the prevailing company policy. You can replace old PDCs with
new ones within 5- 7 working days.

What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable only on the
disbursed amount. This interest is called pre-EMI interest and is payable monthly till
the final disbursement is made, after which the EMIs would commence.

What do I pay PEMIs?

The first PEMI is payable by cheque by the end of the month in which the
disbursement is made and each subsequent PEMI at the end of every month till the
commencement of EMI. In case you have an ICICI Savings account you can also go
in for the facility of Auto Debit.

Application Process of Home Loan

The moment you decide to buy a home, you can put in your application for a
home loan. Yes, you can apply for a home loan even before you have selected the
property .The property need not even be in the same city where you are residing. The
only condition being that ICICI Bank has Home Loans operations in both the cities.
Should there be a change in your financial status or plans, you can withdraw your
sanction within 6 months of approval of your home loan .However bank is always
ready to assist its customers in the event of legitimate problems. And ,we might

47
reconsider this if we find that there are satisfactory reasons for the delay .If it is
refinancing you are interested in, it is possible within 6 months from the date of
purchase of property.

Insurance Plans for Home Loan

Introducing exclusive Home Insurance plans, that can provide cover to your Home
loan in the face of any unforeseen event happening to your life. In case of any of these
happenings, your family will have the support of the insurance cover to pay for the
outstanding Home loan ,without being burdened by the loan EMI's.
ICICI Bank Home Loans presents "Home Safe Plus" & "Home Assure/Health
Assure" two exclusive and innovative insurance plans to insure your Home Loan.

Home Safe Plus

Key Benefits of Home Safe Plus:

• No medical checkup

• Comprehensive insurance plan for individual, home and its contents

• Single premium long-term insurance plan

• Premium paid for the Critical Illness cover is eligible for tax benefits u/s 80D
of the Income Tax Act

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

• Multiple applicants can be covered under the same loan

• Simple application form

48
Home Assure/Health Assure Key Benefits of Home Assure/Health Assure:

• Life Cover from Home Assure for the entire home loan tenure

• Critical Illness cover from life threatening illnesses like cancer, coronary
artery bypass, heart attack, kidney failure, stroke, major organ transplant

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

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

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

• Simplified claim procedure

Home loan Schemes

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

• Guidance throughout the process

• Home loan amounts suited to your needs

49
 • Home Loan tenure up to 20 years

• Simplified documentation

• Doorstep delivery of home loan papers

• Sanction approval without having selected a property.

• Free Personal Accident Insurance (Terms & Conditions)

• Insurance options for your home loan at attractive premium

No matter what the requirement, we have an appropriate plan for you. Get the best
deals, and finance your perfect home, only from ICICI Bank.

Changes in Floating Reference Rate (FRR)

Interest rate on ICICI Bank Home Loans is linked to the ICICI Bank Floating
Reference Rate (FRR/PLR). ICICI Bank FRR has been reduced by 50 basis points
(i.e. 0.50%) with effect from June 04, 2009. Thus the FRR has been reduced from
13.25% to 12.75%. ICICI Bank PLR has also been reduced by 50 basis points (i.e.
0.50%) with effect from June 04, 2009. Thus the PLR has changed from15.25% to
14.75%.Accordingly, the Home Loan floating rate of interest has been reduced by
0.5% (50 basis points).

50
 CHAPTER-2

RESEARCH METHODOLOGY

2.1) Objectives of the study:

1) To study the cost of home loans provided by the bank.

2) To know that which bank provide batter loan schemes.

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

4) To know the consumer perception about the home loan o f ICICI and SBI.

5) The main objective of this study is to know the Customers perceptions about
home loans of bank.

6) To analyze the history of bank.

7) Generating good business to the company by promoting and selling the

products of ICICI and SBI bank.

8) To know the ideas of customers about home loan products and services.

51
 9) To make comparative study of Disbursement of home loans by Commercial
banks.

10) Fixing the appointments with the customers.

11) To study the satisfaction level of customers about home loans.

12) To study the problems faced by customers in obtaining the home loans.

13) Visiting the customers and closing the deal.

14) To learn about various aspect of bank.

2.2) Need and Scope of the study :

This study is analysis and comparison of home loans provided by the SBI and ICICI
banks. It is helpful in analyzing the home loan service provided to the customer and
their comparison.

2.3) Limitations of the study:

Although best of the efforts were made to conduct a prefect survey but still it faces
certain limitation.
Following were certain limitation of this project.

1) The survey was conducted only on 100 respondents.

52
 2) Some of the respondents did not answer all the questions, which could hamper
the final results to a certain extent.

3) The study confines itself to the respondents of Mumbai region only. Hence
findings would not be relevant to other cities.

2.4) Methods of data Collection:

I will use primary source of data that is structured questionnaire. As these banks are
established from so many years, so many researchers have done research on this topic,
so we will find secondary data also and also use this data for the help of this research.
So, this research data will collected from the primary source and secondary source.
Our method of collecting the data is from the questionnaire that will be filled by the
respondent from the sample, it will be structured questionnaire.

2.5) Sample Size and Technique:

A Sample size of 100 respondents will be taken for the current study because it is not
possible to cover the whole universe in the available time period. So it is necessary to
take the sample size .In 100 respondents 50 respondents from ICICI and 50 from SBI.
The samples will the peoples of age group lying between eighteen to thirty years. The
sample will be taken in the form of strata based on age, sex, and income group.

The sampling technique will be probabilistic sampling more specifically the random
convenient and judgmental sampling will be used. As in probabilistic sampling the
select unit for observation with known probabilities so that statistically sound
assumptions are supported from the sample to entire population so that we had
positive probability of being selected into the sample. I will go for stratified random
53
sampling as we are interested to study the home loan by SBI and ICICI banks, sowe
will make the strata on the basis of age, occupation, income level, gender. And from
each strata we will go for random sampling.

2.6) Tools for Data Analysis:

As no study can be successfully completed without proper tools & techniques, the
same is with my project. For the better presentation and right explanation I used tools
of statistics and computer very frequently and I am very thankful to all those tools for
helping me a lot. Basic tools which I used for project are:-

• BAR CHARTS

• PIE CHARTS

• TABLES

Bar charts and pie charts are very useful tools for every research to show the result in
a clear, simple way. Because I have used bar charts and pie charts showing data in a
systematic way. So I need not necessary for any observer to read all the theoretical
detail, simple on seeing the charts anybody that what is being said.

Technological Tools:

• MS -WORD

• MS-EXCEL

54
 CHAPTER-3
.

REVIEW OF LITERATURE

Dr. M.Kumarswami ,Jayprasad D.(2014),The study was based on Customer

Relationship Management in Kaveri Grameena Bank, The respondents have shown
unfavorable views with respect to banking experience, transaction accuracy and
promptness. However, customers share positive views concerning bank trustworthiness
and accuracy of banking solutions. Therefore, it can be argued that customers trust their
bank. Indeed, trust is seen as a critical construct in a range of discipline areas including
CRM. Further, within the realm of relationship marketing, trust has been recognized as
an important variable for the success of relationships in the banking sector
N.Satghiya ,(2013),A study on customer relationship management practices (with
reference to salem district ,In the study The total number of Public Sector Banks, 5
Private Sector Banks, in the Salem district has been taken into consideration to decide
about the number of banks for the purpose of study in each category. 2. By the above
process totally 22 banks were chosen for the purpose of study. From each of the 22
banks 25 customers were selected as respondents

The branches situated in the North, South and Central part of the Salem district were
covered for the purpose of study. The finding says that the customers of banking
industries strongly believed that advertisements, reports, communication, guidance, may
I help you counter, information pamphlets and ombudsman committee role to achieve
the customer satisfaction. The customer staff relationships in CRM depend upon
employee’s personal touch with their customers and employee’s performance. 3.
Navinkumar Mishra and Vijaykumar Pandey(may 2013) in their paper “customer
satisfaction –A comparison of public and private sector banks of India in which research

55
is done to compare public and private sector banks of India by evaluating their customer
satisfaction. This research is mainly based on primary data which has been collected
through a well-structured questionnaire (adapted from three different studies). The
questionnaire has been distributed to 350 different respondents on different chosen
locations. This paper makes a useful contribution as there are very low number of
studies has been conducted in India on such areas like price, technology, reliability,
customer service, location and infrastructure. Their finding says that most of people
prefer to deal with public sector banks due to safety and reliability factors.

Uppal R K and Poonam Rani (2012), in their study titled Customer Perception towards
Better Banking Services in India- An Empirical Study, analyzed customer perception
about CRM, reliability, accuracy, security and transparency among the customers of
public sector banks, Indian private sector banks and foreign banks in Amritsar, Punjab.

Pooja Mengi (2008) in “Customer satisfaction with service quality-An empirical study
of public and private sector banks” The study compares customers’ perceptions of
service quality of public and private banks of Jammu. The service quality of both the
banks has been measured using SERVQUAL (service quality) scale. It was found that
customers of public sector banks are more satisfied with the service quality, than those
of private sector banks. The results of the study indicate that tangibility and reliability
provides Maximum satisfaction to customers of private as well as public sector banks..
Superior SERVQUAL performance will ensure maximum customer satisfaction and
also help in attaining customer’s loyalty. Improved customer satisfaction through
SERVQUAL would result in a positive wordof-mouth and consequently better customer
acquisition and retention B S Bodla and Richa Verma Bajaj (2006) in “ An analysis of
private sector banks India” .In this paper the researcher the Production approach of Data
Envelopment Analysis (DEA) was applied to judge the efficiency of private sector
banks. In this model, banks are considered as service providers, andwhile interest
expenses, noninterest expenses and the Non- Performing Asset (NPA) ratio. The study
findings say that the position of private banks is greatly affected by the output variables;
Centurion Bank (64.17%) was the most inefficient bank among the private sector banks
during their study period.

56
 CHAPTER-4:

Data Analysis and Interpretation

4.1.SBI’s HOME LOAN SERVICES:

SBI offers home loan to people who want money to purchase a house, home renovation and home
extension etc. The house itself acts as a security to the loan. SBI Home loan rate of interest is best
in the market. Taking a loan from SBI has the following benefits:

 Interest rate linked to Repo Rate

 Special rate for women borrowers
 Overdraft facility to save interest
 Doorstep service by authorized person
 50% Discount on Processing Fee
 Multiple home loan schemes as per the need of the customer

 SBI Home Loan Rate:

SBI home loan interest rates are in the range of 7.90% to 8.20%, with special discounted rates for
specific category of borrowers such as ladies borrowers for whom the bank offers the lowest
interest rate of 7.90%.It is represented as following:

57
 Products Interest Rates

SBI Privilege Home Loan 7.90% - 8.55%

SBI Shaurya Home Loan 7.90% - 8.55%

SBI Repo Rate Home Loan 7.90% - 8.20%

SBI Flexipay Home Loan 8.15% - 8.65%

SBI Tribal Plus 8.15% - 8.30%

SBI NRI Home Loan 8.15% - 8.65%

SBI Pal 8.20% - 8.65%

SBI Top Up Loan 8.35% - 10.40%

SBI Realty 8.60% - 8.85%

SBI Reverse Mortgage Home Loan 9.90%

SBI Bridge Loan 10.35% - 11.35%

SBI Bank housing finance interest rate depend upon the loan amount, salary and occupation of the
borrower, nature of property and type of home loan scheme.

 Loan amount: Housing loan rate in SBI depends upon the loan amount you apply for. Higher
the loan amount, lesser will be the rate.
 Your Salary: Income helps in identifying the amount of loan that you can be eligible for. Bank's
rate varies with your monthly income. Higher the income, lesser will be the rate as higher will be
the loan amount.
 Type of loan opted for: SBI also offers discounted or special rates for women borrowers to
ensure that women own a house and become financially independent. If you are planning to take
loan, adding a women co-applicant can help you get the lowest rates from SBI.

58
 Existing bank customers: SBI offers lower home loan rates to its existing bank account
customers as compared to new bank customers, as it understands the past banking history of the
customer and hence, is comfortable in sanctioning loan.

 SBI Home Loan Prepayment:

SBI charges Nil fees on prepayment of floating rate loans, as per RBI rules which prohibit banks
from charging prepayment penalty on loans with floating rate of interest. If you decide to
foreclose or transfer your housing loan to another bank, you need to apply for the same to SBI.
However, if you have taken a fixed rate home loan from SBI, you will need to pay a foreclosure
fees to close your account or transferring it another bank as per your loan agreement with SBI.

 Illustration on SBI Home Loan Interest Rate:

Maximum Annual 7.9% to 8.2%

Percentage Rate (APR)

Representative example of  Here is an illustration of the total cost of the loan:

the total cost of the loan,
including all applicable
fees
 Total amount borrowed: Rs. 1 Lakh
 Time period: 5 years to 30 years
 SBI Home Loan Interest Rate: 7.90% to 8.20%
 Processing Fee payable to SBI: Upto Rs. 10,000. Current
offer for processing fee is Nil
 Fee payable to MyLoanCare: NIL
 Total Monthly Cost – From Rs. 727 for a 30 years Rs. 1
Lakh loan at 7.90% (lowest rate, longest time period) to
Rs. 2,037 for a 5 years Rs. 1 Lakh loan at 8.20% (highest
rate, shortest time period). This is inclusive of principal
repayment.
 Annual Percentage Rate (APR) of charge including all
applicable fees: 7.9% to 8.2%
 Total cost payable over loan tenure: Rs. 32,233 for 5
years loan to Rs. 1.72 Lakh for 30 years loan
 SBI’s terms and conditions as per loan agreement
applicable. Short term loans/ pay day loans not available;
minimum loan tenure: 5 years. Rate of interest depends
upon income, job stability, loan amount, CIBIL score,
credit profile, existing obligations, verification and other
factors. Credit at sole discretion of SBI.

59
 4.2.ICICI’s HOME LOAN SERVICE DETAILS:

ICICI Bank offers housing loan to people who want money to purchase a house, home renovation
and home extension etc. The house itself acts as a security to the loan. ICICI Bank Housing loan
rate of interest is best in the market. Taking a loan from ICICI Bank has the following benefits:

 Low Interest for High Credit Score

 Nil prepayment fees for floating rates
 Overdraft & Top up facility
 Easy eligibility for high loan amount
 Low PF on balance transfer

 ICICI Bank Home Loan Rate:

ICICI Bank home loan interest rates are in the range of 8.25% to 9.25%, with special discounted
rates for specific category of borrowers such as ladies borrowers for whom the bank offers the
lowest interest rate of 8.25%.

Products Interest Rates

ICICI Repo Rate Home Loan 8.25% - 9.25%

Home Loan Balance Transfer 8.45%

ICICI Home Improvement Loan 8.65% - 9.25%

ICICI Land Loan 8.90% - 9.50%

Saral Rural Housing Loan 9.65% - 10.25%

ICICI Pragati Home Loans 9.65% - 10.25%

60
 ICICI Bank housing finance interest rate depend upon the loan amount, salary and occupation of
the borrower, nature of property and type of home loan scheme.

 Loan amount: Housing loan rate in ICICI Bank depends upon the loan amount you apply for.
Higher the loan amount, lesser will be the rate.
 Your Salary: Income helps in identifying the amount of loan that you can be eligible for. Bank's
rate varies with your monthly income. Higher the income, lesser will be the rate as higher will be
the loan amount.
 Type of loan opted for: ICICI Bank also offers discounted or special rates for women borrowers
to ensure that women own a house and become financially independent. If you are planning to
take loan, adding a women co-applicant can help you get the lowest rates from ICICI Bank.
 Existing bank customers: ICICI Bank offers lower home loan rates to its existing bank account
customers as compared to new bank customers, as it understands the past banking history of the
customer and hence, is comfortable in sanctioning loan.

 ICICI Bank Home Loan Prepayment:

ICICI Bank charges Nil fees on prepayment of floating rate loans, as per RBI rules which prohibit
banks from charging prepayment penalty on loans with floating rate of interest. If you decide to
foreclose or transfer your housing loan to another bank, you need to apply for the same to ICICI
Bank. However, if you have taken a fixed rate home loan from ICICI Bank, you will need to pay a
foreclosure fees to close your account or transferring it another bank as per your loan agreement
with ICICI Bank.

61
 Illustration on ICICI Bank Home Loan Interest Rate:
Maximum Annual 8.25% to 9.25%
Percentage Rate (APR)
Representative
example of the total
cost of the loan,
including all applicable
fees
 Here is an illustration of the total cost of the loan:
 Total amount borrowed: Rs. 1 Lakh
 Time period: 5 years to 30 years
 ICICI Bank Home Loan Interest Rate: 8.25% to 9.25%
 Processing Fee payable to ICICI Bank: Upto Rs. 10,000.
Current offer for processing fee is Upto 0.25%
 Fee payable to MyLoanCare: NIL
 Total Monthly Cost – From Rs. 751 for a 30 years Rs. 1
Lakh loan at 8.25% (lowest rate, longest time period) to
Rs. 2,088 for a 5 years Rs. 1 Lakh loan at 9.25% (highest
rate, shortest time period). This is inclusive of principal
repayment.
 Annual Percentage Rate (APR) of charge including all
applicable fees: 8.25% to 9.25%
 Total cost payable over loan tenure: Rs. 35,279 for 5 years
loan to Rs. 1.80 Lakh for 30 years loan
 ICICI Bank’s terms and conditions as per loan agreement
applicable. Short term loans/ pay day loans not available;
minimum loan tenure: 5 years. Rate of interest depends
upon income, job stability, loan amount, CIBIL score,
credit profile, existing obligations, verification and other
factors. Credit at sole discretion of ICICI Bank.
62
4.3. A COMPARATIVE OPINION:

State Bank of India (SBI) is a multinational financial services company headquartered in Mumbai,
and in one of the largest banks in the world. With amazing home loan products and incredible,
competitive rates of interest, SBI have definitely one of the largest players in the home loan market.
The bank has also incorporated top of the line technology into its financial services making it a
customer friendly platform for customers to use.

ICICI bank is one of the most popular multinational banks in India. In terms of assets, it is the third
largest bank in the nation and is the fourth largest in terms of market capitalisation. With an array
of services to offer, ICICI is the go-to bank for many individuals all over the country. One of its
most prominent products is their home loan product. Its wide range of home loan products clubbed
with its impeccable customer service, and its vast network of branches makes ICICI bank one of
the top banks in the country for home loans. With two heavyweights like these to choose from, it
can be a strenuous task. Below is a comparison table that can help ease in decision making process.

 Comparison between SBI Bank vs ICICI Bank Home Loan:

Category SBI Home Loan ICICI bank Home Loan

SBI bank provides home loan Home loan products offered by

products to various types of ICICI bank can be catered to a wide
Purpose individuals like salaried, self- array of persons depending on their
employed, NRIs, etc., depending profession, repayment capacity,
on their requirements country of residence, etc.

Loan amount Rs.5 lakh – Rs.10 crore Rs.5 lakh – Rs.10 crore

Rate of interest 7.95% – 11.35% p.a. 8.25% - 9.35% p.a.

Loan tenure Up to 30 years Up to 30 years

63
 Applicant must be at least 18 Applicant must be at least 21 years
Eligibility years of age and not more than 70 of age and not more than 65 years of
years of age age

Prepayment
Nil Nil
charges

Rs.2,000 – Rs.10,000 excluding 0.5% of the loan amount plus

Processing fee
tax applicable taxes

 No guarantor required
 No prepayment charges No guarantor required No
Pros
 Loan can be availed up until prepayment charges
the applicant is 70 years of age

 KYC  KYC
 Income proof  Income proof
 Address proof  Address proof
Documentation
 ID proof  ID proof
 Bank statement  Bank statement
 Photograph  Photograph

One can either apply for a loan One can either apply for a loan
Application
online or by visiting one of their online or by visiting one of their
process
branches branches

64
4.4. CHART, TABLES AND INTERPRETATIONS:

Q.1) What is your occupation?

Occupation SBI ICICI
Business man 15 17
Government employees 22 23
Student 0 0
House wife 9 7
Other 0 0

25

20

15
SBI
10 ICICI

0
Business Man Govt.Employee Student House Wife Others

Interpretation :-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. The respondents of business man in SBI are 15 and for ICICI is 17. Whereas the
respondents of government employees for SBI are 22 and fir ICICI is 23. And also the respondents
for both SBI and ICICI is nil for both student and other. The respondents for house wife for SBI are
9 and for ICICI are 7. As per comparison of both banks the ICICI bank is better than SBI bank. As
ICICI Bank has more occupied consumer.

65
Q.2)From how many year you are associated with this bank ?
Year SBI ICICI
less than 1 year 10 17
1-5 year 24 19
More than 5 year 12 11

30

25

20

15 SBI
ICICI

10

0
Less than 1 yr 1-5 yrs More Than 5yrs

Interpretation :-
Above table & graph show a that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. The respondents for less than 1 year in SBI is 10 and for ICICI is 17, For 1 to 5
year in SBI is 24 and for ICICI is 19. And for more than 5 year in SBI is 12 and for ICICI is 11.
The SBI bank is better than ICICI bank as per comparison. SBI bank has more old customer as
compare to ICICI bank.

66
Q.3) How do you come to know about the home loan schemes of that bank ?
Sources SBI ICICI
Newspaper 18 12
Television 14 22
Internet 10 9
Other sources 4 4

25

20

15
SBI
ICICI
10

0
Newspaper Television Internet Other sorces

Interpretation :-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. Consumer to know about the home loan schemes from newspaper in SBI is 18
and for ICICI is 12, From T.V. in SBI is 14 and for ICICI is 22, From internet in SBI is 10 and for
ICICI is 9. Both banks has 4-4 person who come to know about the home loan from other sources.
As comparison of bank the ICICI bank is better than SBI bank. ICICI has more consumers who
know about home loan scheme of bank.

67
Q.4) Are you aware of this type of home loan?
Type SBI ICICI
Home purchase loan 9 9
Home construction loan 18 19
Home improvement loan 6 9
Home equity loan 4 2
Land purchase loan 9 8

20
18
16
14
12
10
SBI
8
ICICI
6
4
2
0
HOME HOME HOME HOME EQUITY LAND PURCHASE
PURCHASE LOAN CONSTRUCTION IMPROVEMENT LOAN LOAN
LOAN LOAN

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison the SBI bank & ICICI bank both are same. Normally, both
bank consumer are aware of all type of home loan provide by their bank.

68
Q.5) Are you aware all terms and condition of home loan?
Condition SBI ICICI
Yea 40 34
No 6 13

45

40

35

30

25
SBI
20 ICICI

15

10

0
AGREE DISAGREE

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI are 47. As per comparison the SBI bank is better than ICICI bank. SBI bank consumers are
more aware about all terms & condition of home loan.

69
Q.6) Are you satisfied with the interest rate changes by your bank?
Opinion SBI ICICI
Strongly agree 12 11
Agree 30 34
Disagree 4 2
Strongly disagree 0 0

40

35

30

25

20
SBI

15 ICICI

10

0
STRONGLY AGREE DISAGREE STRONGLY
AGREE DISAGREE

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison the ICICI bank is better than SBI bank. Consumer of ICICI
bank is more satisfied with the changes in interest rate as compare to SBI bank.

70
Q.7) Your bank offers which type of services?
Services SBI ICICI
Mobile banking 24 26
Net banking 15 13
Forex banking 7 8

160

140

120

100

80 SBI

60 ICICI

40

20

0
MOBILE NET BANKING FOREX BANKING
BANKING

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison ICICI bank provide more mobile banking as compare to SBI
bank. As per net banking SBI is better than ICICI bank.

71
Q.8) Do you agree that your banks loan process is fast?
SBI ICICI
Agree 29 25
Disagree 17 22

35

30

25

20
SBI
15 ICICI

10

0
AGREE DISAGREE

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison the SBI bank is better than ICICI bank. The loan process of
SBI Bank is faster than ICICI bank.

72
Q.9) Are you satisfied with the after home loan servicer provided by your bank
as compared to other banks?
SBI ICICI
Agree 30 33
Disagree 16 14

35

30

25

20
SBI
15 ICICI

10

0
AGREE DISAGREE

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47.As per comparison the ICICI bank is better than SBI bank. After home loan the
service provided by ICICI bank is good as compare to SBI bank.

73
Q.10) Does the cost of home loan is appropriate according to your demand?
SBI ICICI
Yes 33 29
No 13 18

35

30

25

20
SBI
15 ICICI

10

0
YES NO

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison the SBI is better than ICICI bank. According to SBI bank
consumer demand the cost of home loan is appropriated as compare to ICICI bank.

74
Q.11)Are you satisfied with the employee behavior at the bank?
SBI ICICI
Agree 23 29
Disagree 23 16

35

30

25

20
SBI
15 ICICI

10

0
AGREE DISAGREE

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison the ICICI bank is better than SBI bank. ICICI bank has good
behavior with employees as compare to SBI bank.

75
Q.12) Does the bank gives any discount upon loan service?
SBI ICICI
Yes 40 35
No 6 12

45

40

35

30

25
SBI
20 ICICI

15

10

0
YES NO

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison the SBI bank is better than ICICI bank. SBI bank provides
more discount to their consumer upon loan services as compare to ICICI bank.

76
Q.13) Are you satisfied by the time taken in sanctioning the loan?
SBI ICICI
Yes 34 30
No 12 17

40

35

30

25

20 SBI
ICICI
15

10

0
YES NO

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison SBI bank is better than ICICI bank. SBI bank consumer are
more satisfied by the time taken in sanctioning the loan as compare to ICICI bank.

77
Q.14) Have you faced any difficulty during taking the loan?
SBI ICICI
Yes 39 43
No 7 4

50

45

40

35

30

25 SBI
ICICI
20

15

10

0
YES NO

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46, whereas for
ICICI bank are 47. As per comparison SBI bank is better than ICICI bank. SBI bank consumers are
not getting any more difficulty as compare to ICICI bank.

78
Q.15) Which grade you want to give of home lian2 schemes of the bank?
Grade SBI ICICI
Excellent 24 18
Good 18 20
Average 4 9

30

25

20

15 SBI
ICICI

10

0
EXCELLENT GOOD AVERAGE

Interpretation:-
Above table & graph shows that, the total number of respondents for SBI bank are 46,whereas for
ICICI bank are 47. As per comparison SBI bank is better than ICICI bank. SBI bank gets more
excellent grade as compare to ICICI bank

79
 CHAPTER-5

RECOMMENDATIONS AND CONCLUSION

5.1) Conclusion:

All the people are availing loan facility from both the banks. No. of respondents of
SBI were 46 and47 of ICICI Bank. People related with SBI are more satisfied with the
interest rate as compared to ICICI. SBI people much know about home loans then
ICICI. Both ICICI and SBI mostly offer mobile banking services. Processing of SBI is
fast then ICICI. After home loan services of ICICI is good as compare to SBI.
Peoples related with SBI is more satisfy with the employee behavior as Compared to
ICICI. People are more satisfied by SBI for time taken for sanctioning the loan. From
all his I conclude that SBI bank provide good home loan services as compared to
ICICI and many people are very much satisfied with SBI compared to ICICI. People
are more satisfied by SBI for time taken for sanctioning the loan. From all this I
conclude that SBI bank provide good home loan services as compared to ICICI and
many people are very much satisfied with SBI.

80
5.2) Recommendations:

Based on research I found SBI public sector bank are more preferred than the ICICI
private sector bank by common people to borrow home loans. It may be because they
provide less interest rates comparatively. Being the nationalize bank people has more
faith on SBI bank. I would recommend to borrow home loan from SBI due to several
reason such as less rate of interest, quick sanction and disbursement of loan . more
over nationalize bank also take care that all the property documents are in place and
the property is free from encumbrance .also being directly under RBI nationalize bank
immediately pass on benefit of interest rate reduction to the customers. Of late even
private sector bank has started providing efficient services like public sector bank but
still procedure followed by private sector bank long cumbersome. There are signs that
private sector bank are also working to provide home loans efficiently and
conveniently as public bank as per terms and conditions favorable to the clients.

81
5.3)BIBLIOGRAPHY

Books:

• Research Methodology CR Kothari

• Statistical Methods. S.P. Gupta

Websites:

• www.ezine@rticles.com

• www.icici.com

• www.sbi.com

• www.scribd.com

82
5.4) ANNEXURE-1

QUESTIONNAIRE:

Name:

Qualification:

Age:

Gender:

1) What is your occupation?

o Business man
o Government employee
o House wife
o Student
o Other

2) From how many years you are associated with this bank?
o Less than 1 year
o Less than 5 year

3) How do you come to know about the home loan schemes of this bank?
o News paper
o Television
o Internet

83
 o Other resources

4) Are you aware of these types of home loans?

o Home purchase loan
o Home construction loan
o Home improvement loan
o Home equity loan
o Land purchase loans

5) Are you aware all terms and conditions of home loans?

o Yes
o No

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

7) Your bank offers which type of services?

o Mobile banking
o Net banking
o Forex banking

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

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

84
 o Disagree

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

11) Are you satisfied with the employee behavior at the bank?
o Agree
o Disagree
12) Does the bank gives any discount upon loan service?
o Yes
o No
13) Are you satisfied by the time taken in sanctioning the loan?
o Yes
o No

14) Have you face any difficulty during taking the loan?
o Yes
o No
If yes then specify _

15) Which grade you want to give of home lian2 schemes of the bank?
o Excellent
o Good
o Average

85
86