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 22nd

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

2
 ACKNOWLEDGMENT

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.

A
MIT KUMAR NANGLU

ROLLNO.03811433909

M.B.A., Third Semester

BHAI PARMANAND INSTITUTE OF

BUSINESS STUDIES,

3
Shakarpur, Delhi

CONTENTS PARTICULARS Page

No.
Certificate of the organization

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

4
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

5
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

6
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.

7
 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

 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

8
  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.

9
 CHAPTER – 1
INTRODUCTION

OBJECTIVE OF THE STUDY

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

10
➢ 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

11
1.2 METHODOLOGY

1.2.1 RESEARCH METHODOLOGY

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.

12
1.2.2 DATA COLLECTION APPROACH

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.

13
 CHAPTER - 2
ORGANISATIONAL STRUCTURE

14
INTRODUCTION

HISTORY OF BANK OF INDIA

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

15
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
London, New York, Paris, Tokyo, Hong Kong, & Singapore. The
international business accounts 17.82% of bank’s total
business.

16
Miles Stones:

1906: Group of Eminent Businessmen Establishes

the Bank.

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.
17
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.

18
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.

19
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”.

20
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”.

21
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.

22
 ➢ 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.

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.)

23
SHARE HOLDING PATTERN
(%) As on June 31, 2010

24
RESOURCE MOBILISATION
Total deposits of the bank amounted to Rs
2,29762cr as on march 30,2010 showing an
absolute accretion of Rs 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)

25
 (As on 31st March 10)

TOTAL ADVANCES IN INDIA

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

26
TOTAL 86791 114793 144732 171317
ADVANCE
S

SUBSIDIARIES INFORMATION ABOUT

SUBSIDIARIES, JOINT VENTURES &
ASSOCIATES

BOI SHAREHOLDING LTD.

27
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.
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.

28
 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-2005-
06.
During the year STCI also successfully bid for acquiring
the U.T.I securities L.T.D from the specified undertaking
29
of the unit trust of India with this acquisition STCI hopes

30
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

31
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 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.

32
Services provided by Bank of India
Personal Banking
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.

33
 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
❖ 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

34
 ❖ 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.
❖ Financial assistance for setting up Akshay Urja
Shops.
❖ Loan for Tax Return Prepares (T.R.P).

35
❖ 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.

36
 BOI Credit Cards

❖ India Card.
❖ Taj Premium Card.
❖ Visa Electron Debit Card.
❖ Gold International Credit Card.

My Place

37
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.

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)

38
 ❖ 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

st st in Percentage
31 31
Amount
March March
2009 2010

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

Small 17,941 25,810 7,869 43.86%

Enterprises

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

39
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.
➢ Dairy Development.
➢ Scheme for financing Commodities
held in the form of warehouse Receipts.
➢ National Crop Insurance Scheme (India).

40
 ➢ 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.

41
 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 Bank in
42
 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
43
are of repatriable nature in terms of general or

44
 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).
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

45
 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.

46
 CHAPTER - 3
RESEARCH STUDY OF MAIN TOPIC

CAR LOAN SCHEME

47
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

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.
48
 ➢ 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

49
 ✓ Maruti Suzuki- Alto, Wagon-R, Swift,
Zen, Van, Gypsy,Sx4, Eco
✓ 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 37.88% 22.6% 38.8%
Loan
Growth
%

50
 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- 1.5%

Bank 5000
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%

51
 11.25%
Bank 8.75%- Rs25lakh 1-6yrs 1.10% or NIL
of 10.00% Rs1000
India
DENA 10.75% Rs 8lakh 1-5yrs Rs1000 NIL
Bank -
11.00%
UCO 11.50% 85% Or 1-5yrs 1%or 0.5%
Bank Rs7.50La Rs1000
kh
Indian 11.00% Rs 1-5yrs 0.30% NIL
Bank - 15Lakh
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

52
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.

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
53
Less than 3years BPLR minus 1.00% i.e.11.00%

54
Above 3 years BPLR minus 1.50% i.e.11.50%

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.

55
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.

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:

56
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.

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.

57
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 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.

58
 ➢ 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.

DOCUMENTS REQUIRED:-

Documentation Salaried Self Partnerships Private Ltd Public Ltd

Requirements Individual employed Firms Company
Individual Company

Application Yes Yes Yes Yes Yes

Form

Income Last 3 Last 3 Last 3 Years Last 3 Last 3 Years Aud

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

59
 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 Yes Yes Yes Yes Yes

Office Address

Legal A Letter MOA or MOA & AOA

Documents Signed by all AOA
the Partners
accepting the
Loan

OTHERS DOCUMENTS:-

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.

60
 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:-

61
 For Salaried Individual, Self-employed Individuals, Partnership
Firms, Public and Private Limited Companies

Borrower Age Residence/Office Income Telephone CPV

Type Requirement

Salaried 21 at Residence should Minimum Applicant CPV should

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

Self 21 at Residence/office/Fact Minimum Applicant CPV should be

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

Partner-ship NA Office/Factory/Works Minimum Landline CPV should be

hop phone at done at office
Income office. and main
Should be owned by of partner’s
the firm or main
Rs0.60la residence.
partner or rented for
at least 2years kh.

Pvt. Ltd Co./ NA Office/Factory/Works Minimum Landline CPV should be

Public Ltd Co. hop Income phone at done at office
of office. and main
Should be owned
Rs0.60la director’s
by the c. residence.
Co. or director
or rented

For at least 2 years

62
FEES and CHARGES:-

Description of Charges New Car Loans

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

63
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 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.

64
 ❖ 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 Com
Requirements Individual employed Company
Individual

Application Form Yes Yes Yes Yes Yes

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

Proof of Identity Yes Yes Yes Yes Yes

65
Proof of Residence Yes Yes Yes Yes Yes
Proof of Office Address Yes Yes Yes Yes Yes
Legal Documents A Letter Signed MOA & MOA & AOA
by all the AOA
Partners
accepting the
Loan

ELIGIBILITY CRITERIA:-

For Salaried Individuals, Self-employed Individuals, Partnership

Firms, Public and Private Limited companies.

Criteria Salaried Self Partnership Company

employed
firm

Age 21-60 21-65 at NA NA

years at the end of
the end of the tenure
the tenure

No. of years Minimum Minimum NA NA

in current 1 year. 1 year.

residence

66
Min. of years At least At least At least At least 3
in/ 3years of 3years in 3years in years in
total Business. Existence. Existence.
Employment/
employm
Business ent

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

Telephone Must be Must be at One phone At least

at residence at least in 1 phone
residence & at Business & must be
& at office. one at at
office. 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.

67
Fees and Charges:-

Description of Charges New Car Loans

Cheque bouncing charges Rs 100
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.

68
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.

69
CAR LOANS-THE PROCESS
The process can be broadly shown as follows-

Customer

DSA/DEALER/O
THER

CHANNEL

Sell Scheme, with

applicable

LTV for relevant

Check NO
Eligibilit
y STOP

Check
Authori
ty Cluster
Head
Case to be
entered in
LTS (Loan
Yes Deviati Tracking
on System)
Within Approval Author i Product
Approva

70
 Asset Staff to follow up for

Update LTS

 Conduct Telephonic Verification

 Collect Preapproval documents

 Fill out Approval Card

 Soft Approval by BM/Cluster

Head

Fax Application Form to

Shoot
CPACPV
for Dedupe check
Customer to at CPV Agency
submit
agreement &
S.I letter
CPA/Credit staff to
Conduct Dedupe Communicate
+ Co-ordinate REJECT to
for CPV Report Branch

71
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 whe

Branch to enter in LTS

under new Product ”CAR Direct Approvals”

END

72
CALCULATION OF EMI
Case1 Normal case (when there is no advance EMI)
Loan amount 200000
Tenure (months) 24
Interest rate 10%
(Account IRR)
EMI 9,229
Advance EMI -
Month EMI Principal Interest
Outstanding Cash flow
20
0000 -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

73
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
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:

74
 ➢ 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:

75
State Bank of India offers car loan scheme with following
features.

➢ 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%

76
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

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

77
best because it charge only 9.25% interest rate on the
other hand if a person

78
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.

CHAPTER – 4

79
 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.

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

80
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%
Other Banks 11%
TOTAL No. OF PEOPLE 100

81
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%

82
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.

83
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.

84
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.

85
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.

86
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.

87
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.

88
 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.

89
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).

90
 CHAPTER -5

CONCLUSION AND SUGGESTIONS

91
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.

92
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.
❖ 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.

93
 ❖ 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.
Q. How much loan can be availed under the scheme?

94
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:
95
 1. Performa Invoice of Car to be purchased
2. Proof of residence
3. Proof of Income
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.

96
CHAPTER – 6

BIBLOGRAPHY

97
BIBLIOGRAPHY

❖ E-CIRCULER OF BANK OF INDIA.

❖ WWW.BANK OF INDIA.COM.
❖ WWW.GOOGLE.COM.
❖ WWW.MONEYMARKET.COM
❖ NEWSPAPERS & MAGZINES.

❖ BOI ANNUAL REPORT.

98
CHAPTER – 7

ANNEXTURE

99
Questionnaire
Name-

Occupation-

Contact Detail-

Q1. On which bank you depend for your regular

transaction.

a) BOI

b) SBI

c) HDFC

d) ICICI

e) Other Bank, Specify ( )

Q2. Are you aware of products & services provided by

BOI.

a) YES

10
0
 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

c) Car Loan

10
1
 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.

10
2
10
3