Comparative Analysis of Mutual funds and Ulips of SBI by shivamchugh173

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									“Comparative Analysis of Mutual
   funds and Ulips of SBI”
TOPICS
    INTRODUCTION                                   7-15
         o Industry(8-11)
         o Company(12-15)

    OBJECTIVE OF STUDY                              16-18

        o Primary
        o Secondary


    LITERATURE REVIEW                               19-23

    RESERVE BANK OF INDIA’S RECCOMENDATION ON
     RETAIL BANKING                                  24-30


    GROWTH OF RETAIL BANKING OVER THE YEARS         31


    EMI CALCULATION                                32


    RESEARCE METHODOLOGY                           33-42
       o Sample Size
       o Method of Sampling
       o Area of work
       o Parameters of study
       o Method of Data collection
       o Tools
       o Limitations
       o Analysis & Finding


    FINDINGS                                       43-99

    CONCLUSION & RECCOMENDATION                   100-101

    BIBLIOGRAPHY                                102-103

    ANNEXURE                                    104-107
INTRODUCTION
INDUSTRY:-

RETAIL BANKING SYSTEM:-

It is high outlay business with low margins which news the need for efficiency with fast
and economical delivery channels. As the consumer behavior has under gone a drastic
change in the recent past to change their time of business.


As result of that most of the banks are coming with various product and services for their consumers,
which are called, retail banking system. It involves financing for personal purchasing from buying a
household item, vehicle, shop to buying a house.
All these financing are given in the form either credit card or loan.


The other important contents of retail banking are:-

1. Card management

2. Branch Automation

3. Bill Payment

4. Basic offerings

5. Value added service

6. Credit management




REATIL BANKING IN NDIA AND ITS PROSPECTIVE
Retail banking (sales) is in a booming scenario at the moment. to understand
the reasons for this booming we have to negotiate the following reasons.


Changing government policies
The governments in the last decade have taken some extraordinary steps regarding the
economy, these are -


(a) Indian economy has opened - Indian economy has got globalize in 1992 and till then
it has been getting the taste of international market. the things happening in the
international scenario is reflecting in Indian market also.
(b) Reducing import duties- it means import duties go less and varieties got increased.
(c) Earning of the people increased- the PCI of Indian people increased significantly in
the Last decade and so the earning in comparison to things.
(d) Flow of reputed international brands to India- various MLCS are coming to India to
do business and that is boosting the availability of the choices.
(e) Strong competition among FIs - lots of financial institutes and FIs have been
grooming in India and there is a very strong competition going on to earn more profit.
(f) Free presence of foreign investors - government allowed foreign institutional investors
to invest unto 100% in various sectors.
(g) Decreasing interest rate - in international scenario, the interest rates of banks is lesser
than Indian bank. As India became globalize economy it became necessary for RBI to
decrease the Interest rate so that Indian banks can compete internationally.
(h) Overall due to these revolutionary steps economy became more strong and stable


Changing consumer behavior -


It is one of the basic reason because without change in attitude banks cannot develop
alone.


(1) It was an old phase "I don’t need" .Now Indian people or customer’s wants to have
the authenticity whichever comes in their way?
(2) Using various high tech communication system - TV has become a necessary item
and in this advertisement became necessary. So this flashy and attractive advertisement
solely attracting all kinds of house holds.
(3) Changing the vision of life - now a day people live in the present not in the future.
Because they feel more secured about the future .moreover the western culture affecting
the mind of the Indian people.




BENEFITS TO THE CUSTOMER:

(1) Consumer can realize the dreams easily without accumulating money

(2) Easy to get the financing

(3) Very easy payback system (low EMI)

(4) Low interest rate

(5) Can invest accumulated money in productive things.


BENEFITS TO THE FINANCER

(1) The ideal money of the financial institutes is going to start earning

(2) Risk of financer is going less because it is not a single client borrowing large amount

(3) Earning for long period (say 7 yrs)



RISK AND REMEDIES:

                For customer -

(1) Returning capability may get reduced - For this customer has to ensure his loan
(2) Inability to take up further obligations.-for this there should be a proper planning
before taking a loan
(3) consumer is not traceable -for this it is necessary to take a calculated
Risk

             For financer -

                    (1) Death of customer

                        For this financer can take following steps
                       - Bank takes guarantee of other people
                       - Can give insurance package with loan.

                    (2) Customer may not ready to pay

                           -   For bank can take over the property of customer



RETAIL BANKING A GAINING PROCESS FOR ALL

Retail banking now a days booming only because it is a win -win process for all where
nobody looses neither Neither the customer nor the financer For customer it is a great
opportunity to up grade his standard of living. Right now instead Of waiting for years to
accumulate the amount For manufacturers its stimulates demand and lowers inventory -
For middleman it is a sales boosting factor or device And For players of retail banking it
is a means of profit generation Moreover the buy-now-pay later culture is still infant in
India and is evolving thought various Forms like consumer landing, consumer credit,
consumers loan, family borrowings, and daily payments Schemes etc.
COMPANY BACKGROUND:-

ICICI BANK:

ICICI Bank is India's second-largest bank with total assets of about Rs.112,024 crore and
a network of about 450 branches and offices and about 1750 ATMs. 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,
asset management and information technology. ICICI Bank's equity shares are listed in
India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange,
Mumbai and the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity
offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition
of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary
market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was
formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group offering a
wide variety of products and services, both directly and through a number of 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 January 2002, by the High Court of Gujarat at Ahmedabad 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.
PUNJAB NATIONAL BANK


 Named as the "Banker of the year 2000", Punjab National Bank (PNB) is a
 public sector bank wholly owned by the Government of India. The bank has a
 strong mix of rural and semi-urban areas, which incidentally accounts for 68%
 of its total branch network. The number of branches of the bank has gone up
 significantly from 619 at the time of nationalization in FY69 to reach 3,879 by
 March 2001. Total advances and deposits for the first half of the current
 financial year stood at Rs 296 bn and Rs 611 bn respectively. Of the total
 deposits, current, savings and term deposits accounted for 10%, 33% and 57%
 respectively. Since savings and current deposits are low cost funds, they are
 more favorable for banks. The bank's deposit mix is line with industry
 statistics.

 The bank has diversified into other business areas through its subsidiaries:

        PNB Capital Services Limited- PNB Caps is engaged in securities
         related business and offers services in investment banking, project
         appraisal, loan syndication and corporate advisory activities. The
         company has posted a net profit of Rs 18 m in 1HFY02 as compared to
         a net loss of Rs 14 m in FY01.

        PNB Housing Finance Company Limited- Engaged in housing finance
         activities. The subsidiary posted a net profit of Rs 90 m in FY01 and
         profits for the first half of the current fiscal stands at Rs 50 m.

        PNB Asset Management Company- Manages mutual funds. The
         company incurred losses for the last three years mainly because of its
         two assured return schemes. Both the schemes have been redeemed.
         The company has earned a profit of Rs 3 m as on September 30, 2001.
         As part of the restructuring proposal the bank is looking for a strategic
       partner.

      PNB Gilts Limited- A primary dealer in Government securities and
       deals with money market instruments. It is one of the major players in
       the debt market and net profits for 1HFY02 stands at Rs 456 m. The
       company came out with a public issue in 2000 at Rs 30 per share and is
       trading at Rs 18 levels.

The net Non-Performing Assets (NPAs) of the bank as of 31st March 20001
was Rs 19 bn, which was 6.6% of net advances. PNB's capital adequacy ratio
(PNB) stood at 10.7% in 1HFY02.
OBJECTIVES

   OF

 STUDY
Objectives:-
Primary:

To study the nature and scope of retail banking in India in a broad sense. The idea is to understand
retail banking n present scenario. Comparison amongst the banks regarding their sales process.



Secondary:


(1) To do comparison between ICICI and Punjab National bank in the prospect of retail
   banking.
(2) To compare the sales process of the banks in retail banking prospects
BANKS STUDIED:
           (1) ICICI BANK

            - Products offered:

                   1. Car loan.

                   2. Commercial vehicle loan.

                   3. Home loan

                    4. Loan against securities.

                     5. Personal loan.

           (2) PUNJAB NATIONAL BANK

           -Product offered:

                  1 Car loan.

                   2 Housing loan

                   3 Consumer durable finance.

                   4 Education loan

                   5 Loan against mortgage of immovable property

                    6. Professional loan.
LITERATURE

 REVIEW:-
1) Technology - an enabler of the Global Branding of Retail Financial Services
Technology is changing retail marketing theory and practice. The market for retail
financial services has been transformed in the past decade by new distribution and
processing technologies and their impact on consumer attitudes to banking and banks.
These factors have removed the geographic and cost barriers to the global distribution of
retail financial services and have led to a convergence in the key benefits sought by
consumers in developed countries. The service brand defines the experience of shopping
online for consumers in terms of service attributes, symbolic meanings and functional
consequences of the service encounter. In the fulfillment of this role, the service brand
acted as relationship lever (fulcrum) on which trust was built between consumer and
service provider.
                              Dr. G Haranath                               Mr. Sathish A.S.
                           Associate Professor                            Assistant Professor
                Deptt. of Management Studies                 Deptt. of Management Studies
            SITAMS - Sreenivasa Institute of              SITAMS - Sreenivasa Institute of
                                   Technology                                    Technology
                      and Management Studies                       and Management Studies
                      Murukambattu , Chittoor                      Murukambattu , Chittoor

                                                          APRIL-MAY 2007



2) Financial Performance of New Private Banks with other Bank Groups in
the Banking Industry
Banking industry plays a vital role in rejuvenating and revamping the economic
growth of a country. The banking sector is the major purveyor of money in an
economy, hence the banker is the best ‘cash flow’ manager of a country. During
industrialization, finance was considered as the major input for achieving
industrial growth. Banking industry is playing a role of a catalyst by providing
financial assistance to various sectors of economy viz., agriculture, industry and
service. The recent past has witnessed drastic changes in the Indian economy.
When the economy is witnessing sea change, obviously the banking sector is
bound to change in tandem.
                     Dr.A.Ramachandran                                   N.Kavitha
               Director- MBA Department                Lecturer- MBA Department
       Tamilnadu College of Engineering               SSM College of Engineering
                     Coimbatore.Tamilnadu               Namakkal, Dist.Tamilnadu
                ram1200@rediffmail.com                   nkavithamba@yahoo.co.in




 AUGUST 2008

3) International marketing strategy in the retail banking industry: The case of
ICICI Bank in Canada


Leighann C Neilson1 and Megha Chadha2


This study presents an overview of the marketing strategy that a retail bank may pursue
when it targets home country nationals in a foreign market. An analysis of the marketing
strategy of ICICI Bank in Canada reveals that a transnational strategy coupled with an
ethnocentric staffing policy allows the parent firm to retain control, while the choice of a
subsidiary as an entry mode allows for local responsiveness. Further analysis illustrates
that the blend of various variables in the services marketing mix (ie price, place,
promotion, participants, physical evidence, and process) can help in attaining customer
satisfaction

4) Making cross-border retail finance a reality case study: Deutsche Bank PBC S.A.
in Poland

Marek Kulczycki

SUMMARY: Until recently, the retail banking industry was widely recognised as being
predominantly a local activity. Now retail banking is increasingly affected by
globalisation. Cross-border activity off

CONTEXT: INTRODUCTION Continuous globalisation of the banking sector
increasingly affects its retail business, which in recent years started to expand rapidly
into cross-border networks and develop joint strategies for its international sales...

Journal of Financial Services Marketing 11, 157 - 165 (01 Dec 2006)

5) Managing perceived risk for credit card purchase through supplementary
services

Anita Goyal
SUMMARY: The present study aims to understand the significance of supplementary
services as nonpersonal sources of information to consumers to handle perceived risk
associated with

CONTEXT: ...reducing/managing perceived risk in the purchase of credit card services
in India. Credit cards come under the umbrella of financial services. While financial
services are similar to other services in respect of a common knowledge...

Journal of Financial Services Marketing 12, 331 - 345 (01 Mar 2008)


6) Editors' introductory comments

George J. Papaioannou, Anil Mathur

CONTEXT: ...bundling them in packages offered at various prices. On their part,
financial consumers have specific needs, which can be satisfied through customisation.
Consequently, educating clients and enabling them to participate in the design...

Journal of Financial Services Marketing 10, 83 - 85 (30 Aug 2006)

7)A fuzzy mathematical programming approach for cross-sell optimization in retail
banking

T Bhaskar, R Sundararajan, P G Krishnan

SUMMARY: We consider the problem of selecting the optimal list of customers to
target for a cross-sell campaign in a retail bank. Target selection involves taking
estimates of several parameters (respons

CONTEXT: Introduction Retail banking has evolved over time from being transaction-
centric to a relationship-centric business. Banks now see the merit in nurturing and
growing profitable long-term relationships with their customers. The field of...

Journal of the Operational Research Society 60, 717 - 727 (14 May 2008)


8) A fuzzy mathematical programming approach for cross-sell optimization in retail
banking

T Bhaskar, R Sundararajan, P G Krishnan

SUMMARY: We consider the problem of selecting the optimal list of customers to
target for a cross-sell campaign in a retail bank. Target selection involves taking
estimates of several parameters (respons
CONTEXT: Introduction Retail banking has evolved over time from being transaction-
centric to a relationship-centric business. Banks now see the merit in nurturing and
growing profitable long-term relationships with their customers. The field of...

Journal of the Operational Research Society (14 May 2008)


9) Growing Dependence of Public Banking on Private Consultants for Market
Expertise and Risk Management in India

Harald Bekkers

SUMMARY: In 1991, India liberalized its regulatory market system, the 'License Raj',
and opened up to global competition. This eliminated the chronic supply gap
characterizing

CONTEXT: ...In The Dark Rifkin (2000) envisions a switch from markets to networks,
in which companies try to access their clients continuously instead of incrementally, by
offering 'total solutions' instead of mere products.1 1 This paper on...

Asian Business & Management 2, 239 - 266 (01 Aug 2003)


10) Resource, service quality and performance triad: a framework for measuring
efficiency of banking services

A Mukherjee, P Nath, M Pal

SUMMARY: In this paper, we present the development of a theoretical framework for
measuring the efficiency of banking services taking into account physical and human
resources, service quality and perfor

CONTEXT: ...from practitioners, policy makers and researchers working in
multidisciplinary areas in management. Substantial analysis has been devoted to
understand the role of quality in the overall performance of a service business right
from...

Journal of the Operational Research Society 54, 723 - 735 (23 Jun 2003)


11) International Retail Banking as a Strategy: An Assessment

Adrian E Tschoegl

SUMMARY: We assess the viability of bank's strategy of entering into retail banking
worldwide, wherever regulations permit, via a review of literature and evidence on
CONTEXT: ...per.body-top.fhtml")INTERNATIONAL RETAIL BANKING AS A
STRATEGY: AN ASSESSMENT Adrian E. Tschoegl" University of Michigan Abstract.
We assess the viability of a bank's strategy of entering into retail banking worldwide,
wherever...

Journal of International Business Studies 18, 67 - 88 (01 Jun 1987)




               RESERVE BANK OF
                                   INDIA’S
             RECCOMANDATION
                           Reserve Bank Of India’s

                                     ON

                             RETAIL BANKING:-


On the basis of the recommendations of the Working Group on Lenders' Liability Laws
constituted by the Government of India, RBI had examined, in consultation with
Government, select banks and financial institutions, the feasibility of introducing the Fair
Practices Code for Lenders. The guidelines have since been finalized and banks/ all India
Financial Institutions have been advised by to adopt the broad guidelines and frame the
Fair Practices Code duly approved by their Board of Directors. The broad guidelines of
RBI address the following issues:

Applications for loans and their processing.

Loan appraisal and terms/conditions.

Disbursement of loans including changes in terms and conditions.

Post disbursement supervision.

Other general matters.

Grievance redressal mechanism.



II. Fair Practices Code:
 Based on the above guidelines, the fair practices code proposed to be followed by our
 Bank is discussed in the following paragraphs. The fair practices code, proposed for our
 Bank, is broadly in line with the guidelines issued by RBI vide its letter no.
 DBOD.Leg.No.BC.104/09.07.007/2002-03 dated May 05, 2003.




i) Applications for loans and their processing:


       The code on applications and their processing will be applicable for all priority
       sector loan applications up to Rs.2 lacs. The following code is proposed to be
       followed:

       a) A comprehensive loan application has been drawn up. The loan application shall
       be obtained from all the applicants. The format has been drawn so as to include
       information about fees/charges payable for processing at the time of issuing the
       sanction letter and pre-payment options to enable the applicant to make comparison
       with other banks

       b) The application forms for schematic loans have been/will be similarly drawn up
       according to specific features of the scheme.

       c) The branch where the application is received shall give an acknowledgement for
       receipt of the loan application, indicating the time frame within which the loan
       application will be disposed of.

       d) The branch shall verify the loan application and if additional details/documents
       are required, it shall be intimated to the applicant within five working days of
       receipt of the application.

       e) The branch shall process the application without delay. Wherever possible,
       branch shall convey reasons for rejection.
ii) Loan Appraisal and Terms and Conditions:


      The guidelines on loan appraisal and stipulation of terms and conditions are
      applicable to all the loan applications irrespective of quantum of advance.

      a) The sanctioning authority shall ensure proper assessment of the credit
      application as per the extant instructions and credit policies of the Bank. The
      availability of adequate margin and/or security shall not substitute the due diligence
      on credit worthiness of the customer.

      b) All terms and conditions and other covenants of the sanction shall be duly
      communicated in writing to the customer by an authorized official of the Bank. In
      case the customer is an illiterate or expresses inability to understand the terms and
      conditions, the customer shall be orally explained the terms and conditions relating
      to the sanction. The name and designation of the official who has explained the
      terms and conditions of the sanction shall be recorded on the sanction letter.

      c) The acceptance of the customer shall be obtained on duplicate copy of the
      sanction letter with the customer's signature and date.

      d) A copy of the loan agreement along with all enclosures quoted in the loan
      agreement shall be furnished to the customer at the time of execution of documents.

      e) The loan agreement shall clearly state that the credit facilities are extended solely
      at the discretion of the Bank and that drawings will be solely at the discretion of the
      Bank. These may include:

           i) Drawings beyond the drawing power/sanctioned limits.
           ii) Honouring of cheques issued for purposes other than specifically
           stipulated in the sanction.
           iii) Drawings in an account once it is classified as NPA.
           iv) Drawings in case of non-compliance of terms and conditions by the
           borrower.
       f) The sanction letter/ loan agreement shall clearly state that the Bank does not have
       any obligation to meet additional requirements if any, on account of growth in
       business, etc.




iii) Disbursement of Loans Including Changes in Terms and Conditions:


       a) The disbursement will be done only after compliance of all the terms and
       conditions of the sanction by the borrower, to the satisfaction/approval of the Bank.

       b) Any change in terms and conditions of the sanction such as interest and charges
       will be notified to the borrower before effecting the changes. Any changes which
       are generally applicable to a category of borrower shall be notified by display on
       the Branch Notice Board.

       c) Any change in interest rate and charges will be effected only prospectively.




 iv) Post Disbursement Supervision:
       a) Branches will have to ensure that post disbursement supervision, particularly in
       respect of loans up to Rs.2 lacs, is constructive with a view to taking care of any
       'lender related' genuine difficulties that the borrower may face.

       b) The post disbursement supervision such as submission of periodical reports and
       periodic inspection will be stipulated at the time of sanction of the loan. The
       sanction letter also would mention whether the Bank/borrower will bear the cost of
       inspection.

       c) The Bank will issue notices to the borrower in advance in case the Bank decides
       to recall the advance/accelerate the payment/accelerate the performance under the
       loan agreement or seeking additional securities.

       d) The Bank will release all the securities on receiving full payment of the loan
       subject to any legitimate right or lien for any other claim Bank may have against
       borrowers. In case the Bank decides to exercise right of set off/lien, the borrower
       will be notified about the same with full particulars about the remaining claims and
       the documents under which the Bank is entitled to retain the security till relevant
       claim is paid/settled.


v) Others:


       a) The bank will not interfere in the affairs of the borrower except for those
       provided for in the terms and condition and loan documents, such as periodic
       inspection, scrutiny of books of accounts, verification of stocks and book debts and
       scrutiny of QIS statements.

       b) In case any new information not disclosed earlier by the borrower, has come to
       the notice of the Bank, the Bank will have the right to elicit the necessary
       information from the borrower and Bank shall have full right to review the
       continuation or otherwise of its sanctioned credit facility to the borrower in the
       background of such information.

       c) While, the Bank may participate in credit-linked schemes framed for weaker
       sections of the society, the Bank shall not discriminate on grounds of sex, caste and
       religion in the matter of lending.

       d) In the matter of recovery of loans, apart from normal communication and
       discussions with the borrowers, the Bank shall resort to lawful means for making
       recovery of its dues.

       e) In case of request for transfer of borrow account either from borrower or from
       other banks/FIs which proposes to take over the loan, the Bank's consent or
       objection, if any, shall be conveyed within 21 days from the date of receipt of the
       request.


vi) Grievance Redressal:


       Though the sanction of the loans will be at the sole discretion of the Bank,
       borrowers will have an opportunity to appeal against the decision of the Bank's
       functionaries. Any such grievance received from a borrower will be heard and
       disposed of by next higher authority. For this purpose the following decision
       review structure is proposed to be put in place:




 Grievance against decision of reviewing authority

 Branch Head
  EVP & Chief Credit Officer/ EVP (Retail) as the case may be
  VP/AVP (Credit) at Corporate Office EVP & Chief Credit Officer
  VP/AVP (Retail) at Corporate Office EVP (Retail)
  EVP & Chief Credit Officer/ Executive Director Managing Director

 The Bank will review at periodical intervals, compliance of the fair practices code and
 effectiveness of the grievance redressal mechanism.
      GROWTH OF RETAIL BANKING SALES OVER THE
      YEARS:-


(Rs Bn)         2003-04   2004-05   2005-06   2006-07   CSGR(%)

CAR FINANCE M   121.80    142.40    170.90    212.40    20.20
MERKET
HOUSSING        130.00    160.00    210.00    360.00    40.00
FINANCE
PERSONAL        15.00     20.00     28.00     39.20     37.30
LOAN
CREDIT CARD     5.00      11.20     24.80     34.20     89.00

TWO WHILLER     30.40     36.80     50.80     68.60     30.80
CREDIT
COMMERCIAL      61.60     62.10     76.70     92.00     14.20
VEHICLE
CONSUMER        15.20     17.90     21.00     25.20     18.20
DURABLE
TOTAL ANNUAL    378.90    450.50    582.20    831.70    29.60
RETAIL MERKET
EMI CALCULATION:-

        P*R*T*(R-1)
EMI= ..……………………..
            T
          (R-1)


T - DURATION OF MONTH


R - ANNUAL INTEREST (MONTHLY REDUCING)

R -(1+r/12)/100




P - PRINCIPLE AMOUNT


Principle              176053   Opportunity Cost         6% per year

Annual Interest rate   9.75%    Total Amount Paid        243600.00

Duration of Years      7        NPV                      198513.82

Duration of Months     84       IRR

EMI                    2900     Total cost to customer   45086.18
RESEARCH

METHODOLOGY
RESEARCH METHODOLOGY:-
The research is carried on qualitative and quantitative platform. In qualitative platform,
personal interviews are conducted with managers of ICICI and Punjab National Bank.
The personal interviews gave us the insight in making the questionnaire. The questions
were based upon the interaction between us and managers.


On quantitative platform, we make the questionnaire to gather the information for the
research work. The questions in questionnaire were both clo0sed and open ended.
The purpose is to gather information and opinion of the people.




The sources of data

   (1) Primary.
   (2) Secondary


Secondary data was gathered from the following source:


   1. Bank’s Brochures.
   2. News papers
   3. Internet.
   4. Business Magazines
   5. D. S. A.
The primary data were gathered mainly through questionnaire and observation methods.
The questions were made to gather information in the form of quantitative and
qualitative. The questions were grade keeping the objective as the base.
The information represented by questionnaire is meant to support the research process of
comparison.


The research is carried on qualitative and quantitative platform. In qualitative platform,
personal interviews were conducted with managers of ICICI and PNB .The questions
were based upon the interaction between us and the managers.


 We made the questionnaire to gather information for the research work. The question in
there was both closed and open ended. The purpose is to gather standardized information
and opinion of the people.
                   ANALYSIS AND FINDING


(1)   Which bank you are banking with?
i. ICICI   (b)PNB (c)HDFC (d)OTHERS



                       WHICH BANK YOU ARE BANKING WITH



                         OTHER
                          20%
                                          ICICI
                                                         ICICI
                                          35%
                                                         HDFC
                                                         PNB
                         PNB
                         25%                             OTHER
                                        HDFC
                                         20%




(2)   Are you satisfied with your bank?
(3)
       (a)Yes (b) No    (c) Cant says
                        ARE YOU SATISFIED WITH YOUR BANK




                              NO
                             26%

                                                                    YES
                                                                    NO
                                           YES
                                           74%




(4)    What is your occupation?
      (a)Gov employee (b) Private sector employee
      (c)Businessman (d) Other




                              WHAT IS YOUR OCCUPATION



                             6%

                                                           GOV EMPLOYEE
                    26%                 40%
                                                           PRIVATE EMPLOYEE
                                                           BUSINESSMAN
                                                           OTER

                           28%




(5)    What kind of account you have?
      ( a) saving ( b) current(c) fixed deposit
                          WHAT KIND OF ACCOUNT YOU HAVE



                          16%


                                                                         SAVING A/C
                                                                         CURRENT A/C
                    22%
                                           62%                           FIXED DEPOSITE




(5) Is external person’s interference through bank to get recovery of loan is correct or
       not?
    (a) Yes      (b) No     (c) Cant say




        IS EXTERNAL PERSON'S INTERFERANCE THROUGH BANK
              TO RECOVERY OF LOAN IS CORRECT OR NOT


                                10%
                                        20%

                                                                               YES
                                                                               NO
                                                                               CAN'T SAY

                                70%




6 Have you taken loan from ICICI or PNB?
     (a) ICICI       (b) PNB
                                 HAVE YOU TAKEN LOAN FROM ICICI OR PNB



      70                    62
      60
      50                                           38
      40                                                                 HAVE YOU TAKEN LOAN
      30                                                                 FROM ICICI OR PNB
      20
      10
      0
                    ICICI                    PNB




7 Do you think government bank’s have more formalities in comparison to private
           banks?
       (a) Yes         (b) No




            DO YOU THINK GOVT BANK HAVE MORE FORMALITIES IN
                      COMPARISION TO PRIVATE BANK




                                       34%
                                                                                        YES
                                                                                        NO
                                                        66%




(8)        Why you chose ICICI or PNB?
 80                75
 70                                                                           65
             60           60
 60                               54                                                 TIMING
 50                                                                  46              FAST SERVICE
                                                  40           40
 40                                      35                                          FACILITY
 30                                                     25                           PERSONAL ATTENTATION
 20                                                                                  ATM
 10
  0
                         ICICI                                 PNB

                         WHY YOU CHOOSE ICICI OR PNB




  (9)        Which bank you prefer to loan ICICI or PNB?




      120
                                                                              100   CAR LOANS
      100
                                                                                    COMMERCIAL LOAN
        80                     70
                                                                         65         HOME LOAN
                  60                55                 54 50
        60             46 50                                        45              LOAN AGAINEST SECURITY
                                                  40
                                         35                                         PERSONAL LOAN
        40                                                     30
                                                                                    LOANS AGAINST MORTAGE
        20
                                              0                                     EDUCATION LOAN
        0
                               ICICI                           PNB

                  WHICH BANK YOU PREFER TO LOAN ICICI OR PNB




10 Which bank will you prefer to further transaction in future?

      (a) ICICI                  (b) PNB
                     WHICH BANK YOU PREFER TO FURTHER TRANSACTION




                                                    40%
                                                                                           PNB
                                                                                           ICICI
                                60%




Analysis of Hypothesis:-

                                      Chi Square Test
The Chi-Square Test procedure tabulates a variable into categories and computes a chi-
square statistic. This goodness-of-fit test compares the observed and expected frequencies
in each category to test either that all categories contain the same proportion of values or
that each category contains a user-specified proportion of values.
Let null hypothesis: People prefer the loan of ICICI.
Than alternative hypothesis: people don’t prefer loan ICICI.



Types of       Obs.         Exp.         o- e                   (o-e)2         (o-e)2/e
loan given     Frequency(o) Frequency(e)
by ICICI
Car loan       21               19              2               4              0.21

Commercial     28               24              4               16             0.67
loan
Home loan      18              16              2               4           0.25

Loan against   14              13              1               1           0.77
security
Personal       9               8               1               1           0.125
loan

Loan against   10              20              - 10            100         5
Mortgage



Degrees of freedom = 6-1=5

At 5% level of significance, value of chi square for DF (5) = 11.07


Calculated value = 6.332


Since calculated value is lower then the tabulated value of chi square,

Therefore Null hypothesis is proved.


Hence, it is proved people prefer loan to ICICI because it good service.




LIMITATION:

This analysis is based on the data upto 2006-2007.
FINDINGS
TYPE OF SALES (ORG STRUCTURE):-
                                         ICICI

                          REGIONAL SALES MANAGER


                                   PRODUCT MANAGER


                                   BRANCH MANAGER



                               BRUNCH SALES MANAGER



           CUSTOMER ACQUISITIONS        OPPARATION SUPPORT   TRAINEES
                TEAMTEAM




    DATA COLLEECTION AND INFORMATION
             DISSEMINATION
        SPECIAL FEATURES OF ICICI CAR LOAN


   The # 1 financier for car loans in the country.

   Preferred financier status with 12 leading car manufacturers.

   Largest network of branches and ATMs amongst private & foreign banks.

   Largest network of more than over 800 Direct Sales Agencies over 275 cities.

   Tie-ups with all leading dealers to ensure one stop solution.

   Flexible schemes & quick processing.

   Finance available for used cars.
                                   LOAN AMOUNT




                                          NEW CAR

                                          USED CAR

                                  LOAN ENHANCEMENT

1) New car

ICICI bank finance up to 90% of the ex-showroom cost of the car.

The amount financed will depend on the Loan to Value (LTV) ratio. The LTV ratios are
applicable on the invoice value of the cars. Customer has to bear registration and insurance
charges.

The LTV also depends on the car model. Higher LTV ratios are available under specific
enhanced income eligibility criteria. Please contact our representative for further details.

Minimum loan amount for new car Loan is Rs.1 lack.

2) Used car

For a used car, finance up to a maximum of 80% of the valuation amount provided. You can
also avail of a refinance against an existing car. In this case, the funding will be 70% of the
valuation amount.

Minimum loan amount for a used car loan is Rs. 75000/-

3) Loan Enhancement

To enhance your loan amount, the certified income of the co-applicant is considered, if
requested by the applicant. The co-borrower can be the spouse or son/daughter living in the
same city. Since the co-borrower is the joint applicant for the loan, he/she has the obligation
to repay the loan along with the main applicant. Similarly, a guarantor can be any relative or
director (in case of a private limited company). The guarantor provides the guarantee that the
customer will repay the loan as per the terms & conditions of the loan. However, in both
cases, the asset has to be registered in the name of a single owner, not joint ownership.




                                        RATES AND FEES

ICICI bank offer most competitive rates in the industry.

Interest rates also depend on Car model, Loan Tenure, Customer Location and Profile, etc.

For more information on ICICI car loans and interest rates kindly contact Branch or 24 Hour
Customer Care Center and they will send representative at your place. You can also submit
your request online or contact nearest Car Dealers for the same.

      Interest is calculated on a monthly reducing balance and the rate remains unchanged
       till the maturity of the loan.

      No processing fee for Loans on New Cars
      ICICI charge a processing fee of Rs.1000 for used car loans on loan amounts up to
       Rs.1.10 lack

                                 APPLICATION PROCESS

      You may contact the nearest ICICI Bank branch for the best deal available on the car
       of your choice.
      You need not visit our office for documentation. The documents may be handed over
       to our direct marketing associate/ dealer you are dealing with. If you wish to cancel
       your loan application and the loan has not yet been disbursed, no letter is required.
       But if the loan has been disbursed, a letter is required requesting for cancellation of
       the loan.
      You can apply for another loan and we shall sanction the loan based on your
       repayment capacity.
       To verify your application status, contact the representative who is processing your
        loan application.




       DOCUMENTATION

                             Self-Employed                                 Private / Public Ltd
Salaried Individual                                  Partnership Firm
                               Individual                                           Co
                            Application form
                                                     Application form       Application form
Application form
                            Photograph               Photograph of          Guarantor's
Photograph                                           signing partner        photograph (for
                                                                            private limited
                                                                            company only)
Proof of bank account One proof of income           Last two years'       Last two years
continuity            (ITR for the last two         income proof (audited audited financials
                      years )                       account or ITRs + CA
                                                    certified financials)
One income proof for      One proof of               Partnership deed     Certified true copy of
the last two years        residence (driving                              the MOA & AOA
(ITR, Form 16, salary     license / voters'
slip)                     identity card / ration
                          card / passport /
                          utility bills for the last
                          3 months)
One proof of identity     One proof of               Partners authority   Board resolution
(driving license /        residence (driving         letter               (format available on
voters' identity card /   license / voters'                               request)
passport / PAN card /     identity card / ration
photo credit card /       card / passport /
photo ration card)        utility bills for the last
                          3 months)
One proof of              One proof of office
residence (laminated      address (utility bill /
driving license /         lease deed / excise or
voters' identity card /   sales tax receipt /
photo ration card /       Shops and
passport /utility bills   Establishment Act
for the last 3 months /   Registration)
company ID - limited
company or
government / PAN
card)
                                  HOW TO REPAY


   Repayment tenure ranges from 1 year to 7 years for New Car Loans. 6 Year and 7

    year loans are available for specific models.

   Maximum loan tenure for used car would depend on the age of the car. The car

    should not be more than 8 years old at the time of maturity of the loan.

   You may change the tenure of the loan before the loan is disbursed. The interest rate

    & EMI would change accordingly.

   The repayment due dates are 1st and 7th of every month and would depend on the

    date of disbursement. Payment due dates cannot be changed.

   You can make the Payments through post-dated cheques (PDCs) or direct debit

    mandates (for ICICI Bank account holders) only. Payments through cash or credit

    cards are not accepted.

   You may change the PDC's only in case your Bank Account is changed. However, we

    would require verification of signatures by new banker. A nominal fee of Rs. 500/-

    (Swap Charges) would be charged for exchange of cheques.

   A full pre-payment of the loan is accepted. Part pre-payment is not allowed.

   We charge pre-payment fee of 4% on the outstanding principal amount if pre-

    payment is requested within 6 months from date of Loan Agreement. Pre-payment

    after 6 months from the date of agreement attracts Pre-payment fee of 3% of

    Outstanding Principal Amount.

   We charge Rs.500 per bounced cheque.
                                   DISBURSMENT

   The loan will be disbursed within one day of submitting all the post sanction
    documents as listed below.
   If the vehicle is readily available with the dealer, you can get your as soon as the
    disbursal is made to the dealer. However ICICI Bank is in no way responsible for car
    deliveries as they are regulated by the car manufacturer's delivery schedules.
   You can retain the original Registration Certificate, Invoice and the Insurance Policy.
    We simply require a photocopy of these documents.




                      SPECIAL SCHEAMES

   Credit Card Scheme: Submit the last 4 billing statements of a premium credit card
    that you hold and you can be free from any income documentation.
   Repayment Scheme: If you have availed of a car loan/ home loan from a leading
    financier, bank, or finance company, all you need to do is provide us the repayment
    record. You need not provide your income proof under this scheme.
   No Income Proof Scheme: If you are a self-employed individual who has been in
    business for at least 3 years and own a house or office, this special scheme is
    designed for you. No need to provide your income details under this scheme.
   For more information on our car loans offers kindly contact our Branch or 24 Hour
    Customer Care Center and we will send our representative at your place. You can
    also submit your request online.




    CAR LOAN – TOOLS THAT CAN BE USED
PATROL OR DESAL CAR



This tool should help you arrive at the decision of which car to opt for. However, subjective
factors like noise and vibration are not considered here.

NEW OR OLD CAR

This tool will help give you an indication on whether or not you should go in for a new car or
a used one.
FREQUENTLY ASKED QUESTION




What are the loan tenure options?

The tenure of the loan could range from one to seven years for new cars and from one to five
years for used cars.

What are the lending rates?

The lending rates vary on the basis of discounts, which are offered by manufacturers and
dealers. ICICI Bank has a tie-up with most of the manufacturers and authorized dealers and
our sales team will help you negotiate the best deal on your car loan.

How is the interest charged/calculated?

Interest is calculated on a monthly reducing balance basis.

Do I have to pay any additional charges?

We charge a processing fee of Rs.1000 for used car loans on loan amounts up to Rs.1.10 lac.

How do I approach ICICI Bank for a Car Loan?
You can approach us in any of the following ways

      Apply online
      Write to us at customer.care@icicibank.com
      Call us at our 24 hour Customer Care Center
      You can just walk into any of our branches
      Contact any of our direct sales agents.

How much time will it take for my loan to be approved?
The loans are generally approved within 24 hours of submission of complete documentation.
Who can be the co-applicants for the loan?

Your spouse or any blood relative staying in the same residence can be a co-applicant.

Is a personal guarantor a must?

No, a personal guarantor is not a must.

What security/collateral do I have to provide?

No additional security/collateral needs to be provided, apart from the car against which the
loan is granted, being hypothecated to ICICI Bank.

If I do not meet all the criteria for the loan, can I still avail of a loan?

Yes, it is possible for you to avail of a loan even if you do not meet all the criteria, at the
discretion of ICICI Bank.

How do I repay the loan?

The loan can repaid through post dated cheques drawn on ICICI Bank Ltd. Alternately, if
you have a Bank account with ICICI Bank, you can issue a direct debit mandate to your
existing ICICI Bank account for the repayment.

 Can you prepay your loan?

Yes, you can fully prepay your loan by paying the principal outstanding. A nominal charge
of 4% of the outstanding principal if the pre-payment is within 6 months from date of
agreement. Pre-payment after 6 months from the date of agreement will attract a charge of
3% of the outstanding principal. A part pre-payment is not allowed.

What is a Monthly Reducing Balance?

In the case of monthly reducing balance method, the principal gets reduced at the end of
every month and the interest is calculated on the outstanding principal at the end of the
month.
What is an Annual Reducing Balance?

In the case of annual reducing balance method, the principal gets reduced at the end of the
year and the interest is calculated on the outstanding principal at the end of the year.

Do I need to open an account with ICICI Bank for availing and/ or servicing the loan?
We will encourage you to start a banking relationship with us so that we will be able to offer
host of other value added services, which are complementary to the loan, however opening
an account with us is not mandatory.

What are the stages involved in availing a loan?

The stages involved are:

      Application
      Processing
      Documentation
      Sanctioning of the loan
      Disbursement

Does ICICI Bank have a loan for the car I want?

ICICI Bank car loans are available for almost all passenger cars - new as well as used.

If I am not able to furnish my income documents is there a special scheme for persons
like me?

Yes, ICICI Bank has tailor made schemes for persons like you.
We offer:

      Credit Card Scheme : You can submit the last 4 billing statements of a premium
       credit card that you hold and you can be free of income documentation
      Repayment Scheme : If you have availed of a car loan/ home loan from a leading
       financier/ bank / finance company, all you need to do is provide us the repayment
       record.
        No Income Proof Scheme : If you are a self-employed individual who has been in
         business for at least 3 years and own a house or office, this special scheme is
         designed for you. No need to provide your income details under this scheme.




 Can I avail of a loan on my existing car?

 Yes, we do offer loans on existing cars, provided the cars are not hypothecated to any
 financier.


SPECIAL FEATURES OF ICICI COMERCIAL VEHICLE LOAN


    Reaches you through more than 180 locations across the country.
    Range of products under one umbrella.
    Funding of various products like HCVs, MCVs, Laves, 3 wheelers , used vehicle funding , construction
     equipments & farming equipment.
    Range of services like funding of new vehicles , refinance on used vehicles , balance transfer on high
     cost loans , working capital loans & other banking products.
    Preferred financier status with most of the leading manufacturers.
    Simple documentation.
    Quick turn around time.
    Flexible financing solutions to meet the individual requirement




                ELIGIBILITY

        Any individual / company with 3- 5 years business experience.
        Ownership of a vehicle is not mandatory.
        Funding is extended to both transporters & captive consumers.
                                   LOAN AMOUNT

   Loan amount can vary from a few thousands to crores depending upon the specific
    requirement.
   Funding can be uptos the extent of 100 % of the chassis; body funding can be
    extended on special requirement & on the past experience.=
   Tie up with the leading manufacturers enables us to give the best deals to our
    customers.

              APPLICATION PROCESS

   Please click here if you wish to apply online for Commercial Vehicle Loans and we
    will send our representative to visit you.

                                             OR

   Please contact our representative near your residence / office and he will help you fill
    in the application form.
   There is no need for you to visit our office. All formalities will be completed at your
    doorstep itself.
   Once all the details are in our possession, the loan can be sanctioned within 4 hours.
   As a policy we do not disclose the reasons for rejection.
   The asset will be hypothecated to ICICI Ltd. Till the loan is repaid, ICICI retains the
    right to repossess the asset in case a customer does not repay the loan. However, you
    are still the owner of it and the invoice will be in your name. All the original papers
    will be kept in your possession and photocopies with ICICI Ltd.
   When the truck is invoiced before September 30th depreciation is 50%. From then
    onwards till March it is 25%. This is as per the recent budget and is subject to
    changes as per government policies.
                                       SANCTIONING

Loans are sanctioned for all fast-moving assets at locations where the ICICI infrastructure is
available – be it direct or indirect or Direct Marketing Associates and authorized distributors.


While we generally undertake hypothecation funding, we also do HP transactions. We also
look into cases of taking over an old high-interest loan.

Once all the details are in our possession, the loan can be sanctioned within 4 hours.

When the truck is invoiced before September 30th, depreciation is 50%. From then onwards
till March it is 25%. This is as per the recent budget and is subject to changes as per
government policies.




                                      RATE AND FEES

      Our rates are one of the most competitive in the market.

      The interest rates are fixed for the tenure of the contract and are calculated on a
       reducing basis.

      There is no processing or documentation fee.
                                       REPAYMENT

      In general repayment period is of 3 -4 years, however depending on the nature of the
       deal the tenure can vary from 6 - 60 months.
      In general the repayment is done via PDCs.
      Cheque bouncing charges would be as applicable.

      The PDCs must be issued from one account.

      The repayment schedule & the amortization schedule would be sent on disbursement
       of the loan.
      Foreclosure of the loan is allowed at a charge of 2 % on the principal outstanding.
      In the event of an accident, our local representative needs to be informed of the same.




         COMMERCIAL VAHICLE LOANS -TOOLS THAT CAN BE USED

Presently, no tools are available for the Commercial Vehicle Loans section. However, if there
are any queries that you may have, please contact your nearest dealer or send us a mail at
info@icicibank.com
  ELIGIBILITY FOR HOME LOAN
         Home loan

                  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

         Land loan

                  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.
                  You must be purchasing a plot of land for residential use.
                  The purchase has to be from a development authority or from a registered
                   co-operative society.
                  The purchase of the land must be for the construction of a house.
               The plot of land must be clearly demarcated with clear boundaries.

Office premise loan

      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.
      You must be self-employed with a regular source of income.
      The loan can be for the purchase / construction / extension of a non-residential
       property.
      A loan for renovation or improvement will be given only at the time of acquisition of
       property.
      Professionally qualified and self-employed individuals (doctors, pathologists,
       chartered accountants, cost accountants, company secretaries, architects, engineers,
       consultants, lawyers, chemists) can apply.
      A minimum of 3 year’s work experience is a must.
Home Equity Loans

     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.
     Your must be employed or self-employed with a regular source of income.
     You must be the owner of a self-occupied property.




                        APPLICATION PROCESS




     The moment you decide to buy a home, you can put in your application. Yes, you can
      apply for a 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 has home loan 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.
     However, we are always ready to assist our customers in the event of legitimate
      problems. And, we might reconsider this if we find that there are satisfactory reasons
      for the delay.
     And, neither would we charge you extra for this delay.
     If it is refinancing you are interested in, it is possible within 6 months from the date of
      purchase of property.
                                     SANCTIONING

Documents




            losure letter.



These are the documents required for sanctioning a loan. You may be asked to submit further
legal documents if required by ICICI or its approved lawyers.

Do retain photocopies of all documents being submitted by you.
          INTEREST RATE FOR RESIDANT INDIANS




Adjustable Rate Loans:

      Home/Land Loans
      Office Premises Loan
      Home Equity Loans - Loan Against Property




Fixed Rate Loans:

      Home/Land Loans
      Office Premises Loan
      Home Equity Loans - Loan Against Property




  Adjustable Rate Loans

Home Loans / Land Loans:

The interest rate on ICICI Bank Home Loans / Land Loans is linked to the ICICI Bank
Floating Reference Rate (FRR) and moves up or down with the FRR.The FRR for ICICI
Bank Home Loans is currently 7.75% p.a.

The EMI table for Adjustable Rate Home Loan / Land Loan is given below:

                          Floating rate
  Tenure (yrs)      Rate of Interest *      EMI per Lac
  Upto 5 years           7.50 %               2004
  6 - 10 years           7.50 %                 1188
  11 - 15 years          7.50 %                  928
  16 - 20 years          7.50 %                  806
        0% Processing Fee**

        Interest calculated on the basis of monthly rest.

        Maximum tenure of 20 years.

        No fee for part prepayment.

        Interest rates would be adjusted periodically with change in FRR.

        Interest rates for fresh adjustable rate home loans for loan amount greater than Rs.5
         lakhs.Conditions apply.

Office Premises Loan:

The current rate of interest for these loans is 9.75% for all tenures. The interest rate on these
loans is linked to the ICICI Bank Floating Reference Rate (FRR) and moves up or down with
the FRR.

The EMI table is given below


                            Floating rate
    Tenure (yrs)           Rate of Interest         EMI per Lac
       Upto 5 years              9.75%                  2113
       6 - 10 years              9.75%                  1308
    11 - 15 years                9.75%                  1060

        Interest calculated on the basis of monthly rest.

        Maximum tenure of 15 years.

        A pre-payment fee of 2% on the amount prepaid, either in part or full.

Home Equity Loans:
The current rate of interest for these loans is 9.75% for residential property and 10.25% for
commercial property. The interest rate on these loans is linked to the ICICI Bank Floating
Reference Rate (FRR) and moves up or down with the FRR . The EMI table is given below
                   Residential Floating       Commercial Floating
 Tenure (yrs)        ROI        EMI/lac         ROI     EMI/lac
  Upto 5 years      9.75%         2113        10.25%      2138
  6 - 10 years      9.75%         1308        10.25%      1336
 11 - 15 years      9.75%         1060        10.25%      1090
                                                                           Interest calculated
       on the basis of monthly rest.

      Maximum tenure of 15 years.

      No fee for part prepayment.




Fixed Rate Loans

Home Loans / Land Loans:

The EMI table for Fixed Rate Home Loans / Land Loans is given below :


                             Fixed rate
   Tenure (yrs)           Rate of Interest*        EMI per Lac
   Upto 5 years                7.50%                 2004
    6 - 10 years               7.50%                   1188
   11 - 15 years               7.50%                   928
   16 - 20 years               7.50%                   806
   21 - 30 years               8.50%                   769

* Interest rates for fresh fixed rate home loans for loan amount greater than Rs.5
lakhs.Conditions apply.

      0% Processing Fee **
      The interest rate is calculated on a monthly reducing basis.
      No fee for part prepayment.
Office Premises Loan:


                             Fixed rate
       Tenure (yrs)                 ROI                EMI/lac
       Upto 5 years                10.50%               2150
       6 - 10 years                10.50%               1350
       11 - 15 years               10.50%               1106

       The interest rate is calculated on a monthly reducing basis.

       A pre-payment fee of 2% on the amount prepaid, either in part or full.


Home Equity Loans:

                       Residential-Fixed     Commercial-Fixed
 Tenure (yrs)           ROI      EMI/lac      ROI    EMI/lac
 Upto 5 years          10.50%      2150      11.00%     2175
  6 - 10 years         10.50%      1350      11.00%     1378
 11 - 15 years         10.50%      1106      11.00%     1137
                        REPAYMENT

       The interest rate is calculated on a monthly reducing basis.

       Loans against commercial property shall be offered only to doctors.

       No fees on part prepayment.

ICICI Home- Floating Reference Rate

       The ICICI Bank Floating Reference Rate is currently 7.75% p.a.

What is the repayment tenure?

                          - Maximum loan tenure of 15 years.
                          - Maximum loan tenure of 15 years.
  Home loan - Maximum loan tenure of 30 years.

How is the loan repaid?
All loan repayments are done via equated monthly installments (EMI).

What is an EMI?

An EMI refers to an equated monthly instilment. 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 direct deductions
from your salary. If you are opting for PDCs, then you will have to provide 36 upfront. The
PDCs are to be dated on the 1st of every month. However, if you receive your salary a few
days later, no problem. We provide the flexibility of dating the cheques for the 7th of the
month.

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 (PEMI) and is payable monthly till the final
disbursement is made, after which the EMIs would commence.

When do I pay PEMIs?
The first PEMI is payable by cheque by the end of the month in which the disbursement is
made and each subsequent PEMI at the end of every month till the commencement of EMI.
                                        DISBURSMENT

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.

While you may be under the impression that the list of documents asked for is rather
extensive, please note that it is for your own good. Each and every single document asked for
will be verified and checked to ensure your safety.

This may take some time but we want to ensure a clear title and will complete all the legal
and technical verifications to ensure that you have full rights to your home.

The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax
authorities (if applicable) is also needed.

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.

The disbursement will be in favor of the builder/seller.

List of documents for disbursement

Standard documents:




       -dated cheques



Some documents are specific to each state. For further information, please contact the nearest
office.
HOAM LOANS-TOOLS THAT CAN BE USED




Adjustable Rate Home Loan EMI calculator :

If you want to apply for an Adjustable Rate home loan, this tool will enable you to calculate
your Equated Monthly Installment (EMI ) if you know the value of the property, the loan
amount your require and the term for which you want to take the loan. You can check the
EMIs for different loan tenures to decide which would be most suitable for you. The tool will
compute EMI and also provide the interest rate that is applicable.




Fixed Rate Home Loan EMI calculator

You can use this tool to calculate your EMI in case you wish to opt for a Fixed Rate home
loan. The tool will allow you to see the EMI and interest rate for any given loan amount
                          FREQUENTLY ASKED QUESTIONS

What are the minimum & maximum loan amounts?

You can get a home loan ranging from of a minimum of Rs. 1 lakh to a maximum of Rs. 1
crore. The loan amount depends on your repayment capability and is restricted to a maximum
of 85% of the cost of the property or the cost of construction as applicable.

Repayment capacity takes into consideration factors such as income, age, qualifications,
number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation
and savings history.

 How is the interest charged/calculated?

ICICI Bank Home Loans has two schemes, (a) Fixed Rate Home Loans (b) Adjustable Rate
Home Loans. If you opt for an Adjustable Rate Home Loan, the interest rate would vary with
the ICICI Home Prime Lending Rate. Under the Fixed Rate Home Loans the rate applicable
on the date of disbursement remains fixed during the entire duration of the loan.

Do I have to pay any additional charges?

You don't have to pay any processing fee - this offer is valid for a limited period only.
However, Administration fee of 0.5% of the loan amount would have to be paid.

How do I approach ICICI Bank for a Home Loan?

You can approach us in any of the following ways

      Apply online
      Write to us at customer.care@icicibank.com
      Call us at our 24 hour Customer Care Centre
      You can just walk into any of our branches
      Contact any of our direct sales agents.
Who can be the co-applicants for the loan?

You could include your spouse as a co-applicant for the loan and we shall include his/her
income to enhance your loan amount. Further, in case there are any other co-owners they also
need to be co-applicants.

Is a personal guarantor a must?

No, there is no personal guarantor required in most cases.

What security/collateral do I have to provide?

Typically the security for the loan is a first mortgage of the property to be financed, by way
of deposit of title deeds and/or such other collateral security as may be necessary. The title to
the property should be clear, marketable and free from any encumbrances.

If I do not meet all the criteria for the loan, can I still avail of a loan?

Yes, it is possible for you to avail of a loan even if you do not meet all the criteria, at the
discretion of ICICI Bank.

Do I need to open an account with ICICI Bank for availing and/ or servicing the loan?

We will encourage you to start a banking relationship with us so that we will be able to offer
host of other value added services, which are complementary to the loan, however opening
an account with us is not mandatory.

What are the stages involved in taking a loan?

There are two main stages -

1. Sanction of the loan, whereby you get an approval for a specific loan amount based on the
value of your property and repayment capabilities.
2. Disbursement of the loan amount
What are the various types of loans that ICICI Bank Home Loans provides?

      Home Loans
      Land Loans
      Home Equity Loans
      Office Premises Loans

All of these are available on an adjustable rate or a fixed rate.

What is a Monthly Reducing balance?

An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the
interest is calculated on monthly rests, the principal on which the interest is charged goes
down every month. This results in a significant saving for the customer over the tenure of the
loan.

What is an Annual Reducing balance?

An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the
interest is calculated on annual rests, the principal reduces only at the end of the year.
Therefore, you continue to pay interest on a portion of the principal that you have already
actually paid back to the lending company.



When can I apply for a loan?

You can apply for a home loan even before you have selected your property. The loan
amount would be sanctioned or approved for you, based on your repayment capability



Can ICICI Bank Home Loans assist me in selecting an accommodation of my choice?

Yes, we have a special service - ICICI Bank Home Search. This service provides the
customer assistance in identifying a property that fulfills your requirements from a vast
database of properties, arranges for site visits to the properties short listed by you, and helps
with legal documentation. This service comes to you completely free of cost for first sale
properties. This facility is available in select cities.



Can I get a loan for commercial property, like offices etc.?
Yes, we give loans to self-employed professionals for commercial property.




When will the loan be disbursed?

Your loan will be disbursed on:

      Your identification and selection of the property.
      Submission of the legal documents.
      Legal and technical clearance of the property
      Investment of your contribution towards the property

What is an amortization schedule?

An amortization schedule is a table giving the reduction of your loan amount by monthly
installments. The amortization schedule gives the breakup of every EMI towards repayment
interest and outstanding principal of your loan.

What are the tax benefits of taking a home loan?

The tax benefits on a home loan, under the Income Tax Act, are two-fold:

           A) Principal repaid : Rebate under section 88 (2) of the Income tax Act is
               available to individuals on repayment of the principal portion as given below


Gross total income before deduction         Rebate available
Upto Rs.1,50,000                            20%
More    than    Rs.1,50,000     but   not
                                            15%
exceeding Rs. 5 lakh
More than Rs.5 lakh                         None
Moreover, the rebate is allowed up to the maximum limit of Rs.20,000 per financial year on
the repayment of the principal sums, which need not be out of income chargeable to tax of
the year in which such repayment is made.

B) Interest repaid: Under section 24 of the Income Tax Act , in case of self-occupied
property, deduction is allowed up to Rs.1,50,000 per annum for houses acquired or
constructed with capital borrowed after March 31, 1999 as long as the acquisition or
construction is completed within 3 years from the end of the year in which such loan is taken.

Can I get IT certificates in the name of both the Applicant and co-Applicant
separately?

As per the IT rules only one certificate can be issued for a home loan and hence one
certificate will be issued in the name of both applicant and co applicant.

When is the IT certificate issued?

The IT certificate will be issued at the end of a financial year. You can expect to receive your
copy of the IT certificate in the month of April or May.

How can I get the tax benefit during the year?

You can request for a provisional IT certificate that can be issued any time during the course
of the year.
SPECIAL FEATURES OF ICICI LOAN AGAINST SECURITIES


   Loans against Securities enable you to obtain loans against your securities. So you get
    instant liquidity without having to sell your securities.




   All you have to do is pledge your securities in favor of ICICI Bank We will then grant
    you an overdraft facility upto a value determined on the basis of the securities pledged
    by you. A current account will be opened and you can withdraw money as and when
    you require. Interest will be charged only on the amount withdrawn and for the time
    span utilized.




   We offer loans against:
   RBI Relief Bonds
   Mutual Funds Units
   India Millennium Deposits (IMDs)
   ICICI Bank Bonds
   Life Insurance Policies (Single Premium)




ELIGIBILITY

Shares

        Only resident individuals are permitted to apply .
        Hindu Undivided Families (HUFs), Limited Companies, Partnerships, Sole
         Proprietors & NRIs are excluded.

        Loans are granted only against the list of approved scrip’s as determined by ICICI
         Bank.
      The applicant should be in the age group of 18 to 75 years.
      The applicant should be a subscriber to telephone (landline) either at residence or
       office.

RBI Bonds

      Resident Individuals, Hindu Undivided Families (HUFs), Limited Companies and
       Partnerships are permitted to apply.
      Non Resident Indians (NRIs) are excluded.
      The applicant should be in the age group of 18 to 75 years.
      The applicant should be a subscriber to telephone (landline) either at residence or
       office.

Mutual Funds

      Only resident individuals are permitted to apply.
      HUFs, Limited Companies, Partnerships, Sole Proprietors and NRIs are excluded.

      The applicant should be in the age group of 18 to 75 years.

      The applicant should be a subscriber to telephone (landline) either at residence or
       office.




India Millennium Deposits (IMDs)

      Only non-resident Indian individuals can apply. In case a resident has to apply he
       should have a guarantee of bonds from the NRI for doing so.
      The applicant should be in the age group of 18 to 75 years.
      The applicant should be a subscriber to telephone (landline) either at residence or
       office.
ICICI Bank Bonds

        Only resident individuals are permitted to apply.
        The applicant should be in the age group of 18 to 75 years.
        The applicant should be a subscriber to telephone (landline) either at residence or
         office.

Life Insurance Policies (Single Premium)

        Only resident individuals are permitted to apply.
        The applicant should be in the age group of 18 to 75 years.
        The applicant should be a subscriber to telephone (landline) either at residence or
         office.

For all the above

        The applicant should be in the age group of 18 to 75 years.

        The applicant should be a subscriber to telephone (landline) either at residence or
         office

Loan Amount

Shares

        You are given a drawing power up to 50% of the value of the shares.




        Since the market price of the scrip’s keep fluctuating, the scrip’s are revalued weekly
         (every Friday), or more frequently if required, and the drawing power will be revised
         accordingly. If the new drawing power is less than the outstanding in the current
         account, the customer is required to put in the difference amount or pledge more
         shares to regularize the account. Alternately, if the drawing power rises, the limit
         available to the customer also automatically increases.
        Minimum loan amount is Rs 1 lakh.
       Maximum loan amount is Rs 20 lakh.
       The loan is applicable for a year and renewable at the end of each year.

Bonds

       The loan amount will depend upon the value of bonds and also the period left for
        maturity
       Loan amount will be between 70% and 95% of the value of bonds.

Mutual Funds

       50% lending on the NAV.
       Minimum loan amount is Rs.1 lakh.
       Maximum loan amount is Rs. 20 lakh.

India Millennium Deposits (IMDs)

       90% of the face value in rupees.
       Minimum loan amount is Rs.1 lakh.

ICICI Bank Bonds

       Minimum Loan amount is Rs.50000
       Maximum loan amount is Rs. 20 lakh

Life Insurance Policies (Single Premium)

       Minimum Loan amount is Rs.50000
       Maximum loan amount is Rs. 2 cr

SANCTIONING

       Your loan will be sanctioned on completion of all the documents.
       You shall be required to fill the loan agreement and complete the account opening
        formalities
In any of the following cases no residence cum identity proof is required:

      Account introduced by ICICI Bank Staff.
      Introduction by an existing bank customer.(Existing customer to have a satisfactorily
       conducted account for at least 6 months)
      Letter from existing banker obtained in standard format.
      Customer existing account holder of bank for more than 6 months.
   


You will be able to enjoy all the benefits of a current account such as a

      A personalized cheque book
      ATM card
      Phone banking facility
      Internet banking facility

RATES AND FEES

      Interest is charged only on the amount drawn and for the period that it is utilized.
      The interest is debited to your current a/c on the last day of every month.
      The stamp duty varies in accordance with the stamp duty rates of the respective
       states. This will be debited at the time of opening the account.

HOW TO CONTACT ICICI

You can email us at customer.care@icicibank.com

Alternatively,

You may call us at any of our Customer Care Centers.
                                TOOLS THAT CAN BE USED
LAS Calculator

You have a portfolio and want to know what can it earn for you without having to part with it
? Know it right now!!!
In order to help you know the amount of loan that you can avail of by pledging your shares
with us we present the LAS Calculator

Calculate your Drawing Power. In a 2 step process.
Step 1
Please choose the scrip’s in the drop down menu. Also please specify the quantity that you
want to pledge.


Step 2
You just have to click 'Submit' to instantly find out your drawing power.


Do note that this Drawing Power is the credit limit that shall be set for you in the overdraft
account that we open for you.

Please note that this is only an indicative figure and is likely to change depending upon the
given conditions at the time of applying for the loans.


APPROVED SECURITIES

List of scrips against which loans will be granted


3M India Ltd.

A B B Ltd.*

A F T Industries Ltd.

Aarti Drugs Ltd.

Aarti Industries Ltd.

Aban Loyd Chiles Offshore Ltd.
Abbott India Ltd.

Adani Exports Ltd.*

Adlabs Films Ltd.

Ador Welding Ltd.

Aftek Infosys Ltd.

Agro Dutch Inds. Ltd.

Ahmedabad Electricity Co. Ltd.

Ajanta Pharma Ltd.

Alembic Ltd.

Alfa Laval (India) Ltd.

Allahabad Bank*

Alok Industries Ltd.

Alstom Ltd.

Alstom Projects India Ltd.

Amara Raja Batteries Ltd.

Ambica Agarbathies & Aroma Inds. Ltd.

Ambuja Cement Eastern Ltd.

Amtek Auto Ltd.

Amtek India Ltd.

Andhra Bank*

Andhra Pradesh Paper Mills Ltd.

Apar Industries Ltd.

Apollo Hospitals Enterprise Ltd.*

Apollo Tyres Ltd.*
Archies Ltd.

Arvind Mills Ltd.

Asahi India Glass Ltd.

Ashima Ltd.

Ashok Leyland Finance Ltd.

Ashok Leyland Ltd.

Asian Hotels Ltd.

Asian Paints (India) Ltd.*

Assam Co. Ltd.

Associated Cement Cos. Ltd.*

Astrazeneca Pharma India Ltd.

Atlas Copco (India) Ltd.

Aurobindo Pharma Ltd.

Automotive Axles Ltd.

Aventis Pharma Ltd.
FREQUENTLY ASKED QUESTION

What are the loan tenure options?

The initial tenure is for one year. At the end of one year, it will automatically be renewed for
another one year unless we receive intimation in writing from you not to do so.

What are the lending rates? How much shall I pay for this facility?

ICICI Bank Loans Against Securities comes to you at attractive interest rates and are based
on trends prevailing in the market at the time of the loan. You pay only when you use the
money and for the number of days the money is used. The rates vary according to the product
variant.

How is the interest on my account calculated?

In the Overdraft account, Interest will be charged only on the amount you draw and for the
period that you draw. Thus interest will be charged on a daily basis, but will be debited to
your account only once a month.

Do I have to pay any additional fee?

Yes, there is a nominal processing fee, which will be charged to you.

How much time will it take for my loan to be approved?

It takes four working days for the approval and the credit limit in your account to be set.

Is a personal guarantor a must?

No, a personal guarantor is not a must.

What security/collateral do I have to provide?
No additional security/collateral needs to be provided, apart from the securities against which
the loan is granted.

How do I repay the loan?

You can repay the loan by cash, cheque or demand draft.

Can I prepay my loan?

Yes, the loan can be prepaid; there are no prepayment charges.

Do I need to open an account with ICICI Bank for availing and/or servicing the loan?

Yes, you need to open an ICICI Bank Overdraft Current A/c in which the credit limit for you
will be set.

What are the stages involved in taking a loan?

The various stages involved are as follows:

       Signing of the loan agreement
       Pledging the securities in our favor.
       Opening the Current account

Once the Current account is opened, you can avail of the credit limit.

If I do not meet any of the criteria for the loan, can I still avail of a loan?

Yes, you can still avail of a loan based on your profile, credit strengths etc. Please feel free to
contact us and we can advise according to your case.

Where will my account be opened?

At the designated Branch specified by you, however you can operate out of any of our
branches under the anywhere banking facility

How do I get to know my Credit Limits?
You can call our 24 hour Customer Care Centre to know the status of your account, what are
the Securities pledged, what is the amount obtained against the different Securities, how
much is the shortfall, etc.

Am I required to have a Demat Account with ICICI?

No, you can pledge your Securities irrespective with whom you have your Demat account.

Do you entertain pledge forms via fax?

Yes, on giving a Fax indemnity. You can fax us at 022-56661425.

How do I pledge more Securities? How long does it take?

You can submit your pledge forms with any of our branches across the city. The limits will
be reset within 48 - 72 hours of receipt of the forms.

How often are the shares revalued?

The shares are revalued every Friday or whenever there is a significant change in the market.



What about my Dividend and Bonus?

The Dividend and Bonus on your shares shall continue to accrue to you.

I have shares that are in the approved list but they are in the Physical form, Can I get
loan against them?

Yes, but you would have to first convert them into the dematerialized form. All you have to
do is to get your shares dematerialized through a depository account with ICICI Bank/ any
other Bank.

Will more shares be included in the approved lists?

Yes, these lists are updated on a periodic basis.
I am an NRI can I avail of Loans Against Securities?

For NRI's we have a special product 'Loans against India Millennium Deposits (IMDs)'.
These loans are given by way of an overdraft facility against the security of the Physical
Deposit Receipts of IMDs.

SPECIAL FEATURES OF ICICI PERSONAL LOAN



     Loans for salaried & self-employed individuals.
     Loans are available from Rs. 20,000 to Rs. 10 Lakhs.
     Repayment tenures from 12 - 60 months.
     No Security, Collateral or Guarantors required.
     Loans can be used for any purpose with no questions asked regarding the end use of the
     loan.
     A balance transfer facility available for those who want to retire any higher debt.


     All loan repayments are done via equated monthly installments (EMI).


                                        ELIGIBILITY

             Criteria                     Salaried                     Self - Employed
Age                            25 yrs. - 58 yrs.               25 yrs. - 65 yrs.
Net Salary                     Net annual income - Rs.         Net Profit after tax - Rs.
                               96,000 p.a                      60,000 p.a
Eligibilty                     Employees of Public Ltd. cos.   Doctors, MBA's, Architects,
                               , Private Ltd. cos. MNCs Or     CA's, Engineers, Traders &
                               Government.                     Manufacturers
Years in current job /
                               1 Year                          3 Years
profession
Years in current residence     1 Year                          1 Year
                           DOCUMENTATION



                                                                                   Self
                   Documents ( Pre Sanction)                        Salaried
                                                                                Employed
Latest 3 months Bank Statement (where salary/income is credited) Yes           Yes
Latest 2 salary slips                                               Yes
Last 2 years ITR with computation of income / Certified
                                                                               Yes
Financials
Proof of Turnover (Latest Sales / Service tax returns)                         Yes
Proof of Continuity current job (Form 16 / Company appointment
                                                                    Yes
letter )
Proof of Continuity current profession (IT Returns / Certificate of
                                                                               Yes
business continuity issued by the bank)
Proof of Identity (any one)Passport / Driving Licence / Voters ID /
                                                                    Yes        Yes
PAN card / Photo Credit Card / Employee ID card
Proof of Residence (any one) Ration Card / Utility bill / LIC
                                                                    Yes        Yes
Policy Receipt
Proof of Office (any one) Lease deed / Utility bill / Municipal Tax
                                                                               Yes
receipt / title deed
Proof of Qualification Highest Degree (for Professionals / Govt
                                                                    Yes        Yes
employees
                            FINANCING POLICIES

                                            OF

                         PUNJAB NATIONAL BANK


                                      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 be provided for purchase of vehicle of indigenous/ foreign makes.

 Eligibility

Individuals as well as Business Concerns (Corporate or non-corporate).

 Amount of Loan (for Salaried Class)

25 times of the monthly net salary or Rs.7 lac, 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: No ceiling in loan amount. Processing fee is nominal.

 Margin

20%

 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 Bank.

 Rate of Interest

For Car Loans

      For Loans up to Rs. 2 lacs: PTLR + 0.50 % (presently 12.00% per annum)*
      For Loans above Rs. 2 lacs: PTLR + Min 1.50% (presently 13.00% per annum)*
      Car Loans of all amounts repayable upto 1 year - 9.50% p.a
   Subject to change.

Repayment (For new Car/ Van/ Jeep)

The loan amount together with interest is to be repaid maximum in 84 equated monthly
installments.

       For old Car/ Jeep/ Van: The loan amount together with interest is to be repaid
       maximum in 60 equated monthly installments.



 Disbursement

The intending borrower will be required to settle the transaction for purchase of vehicle
needed by him with the seller and 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 from the bank
by paying the entire price of the vehicle to the seller directly on behalf of the borrower.
                                     HOUSING LOAN

PNB reaches out to you with fast, friendly and most convenient home loans for:

      Construction or purchase of house/ flat.
      Purchase of house/ flat on First Power of Attorney basis from the original
      allottee.
      Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat.



 Extent of loan

Individual

  For construction/purchase of house/ flat: 80% of the cost of construction of
  house or purchase of house/ flat .
  For carrying out repairs/ renovation/ additions/ alterations: 80% of the estimated
  cost subject to maximum of Rs. 20lacs.
  Loan upto Rs.10 Lacs for purchase of Land/Plot.
  Loan is available maximum upto Rs.2 Lacs for furnishing.

Security




      Mortgage of property for which finance is being given.
      In case of purchase of house/ flat from housing board/ society where mortgage
      cannot be created immediately, a tripartite agreement shall be executed amongst
      the housing board/ society, borrower and the Bank.
      In case of purchase of house/ flat on first power of attorney, additional security
      equal to 125% of the loan amount by way of mortgage of some other property or
      pledge of bank's FDR/ LIC policy/ Govt. Securities, NSCs, KVPs, IVPs, / PSU
      Bonds etc. has to be provided.
      Suitable third party guarantee acceptable to the Bank which may include
      guarantee from family members/ other relatives.
 Rate of Interest ( as on 15.01.2004)



RATE OF INTEREST UNDER FIXED OPTION :

            TENOR                       Rate of Interest @ percent p.a.
   For loans repayable in/upto            Existing w.e.f. 01.01.2004


i) Upto 5 years                                      9.25
ii) Above 5 & upto 10 years                         10.25
iii) Above 10 years & upto 20 years                 10.50
iv) Above 20 years & upto 25 years                  11.00

The above rate of interest structure is not applicable on housing loan sanctioned earlier
under the fixed option.

      RATE OF INTEREST UNDER FLOATING OPTION :

              TENOR                          Rate of Interest @ percent p.a.
     For loans repayable in/upto                Revised w.e.f 15.01.2004
i) Upto 5 years                                             7.75
ii) Above 5 & upto 10 years                                 8.00
iii) Above 10 years & upto 20 years                         8.25
 iv) Above 20 years & upto 25 years                         9.00
*
Rates under "PNB FIN-BASKET' SCHEME

          TENOR                    Rate of Interest @ percent p.a.
 For loans repayable in/upto          Revised w.e.f 15.01.2004
i) Upto 5 years                                 7.75
ii) Above 5 & upto 10 years                     7.75
The approximate per lac EMI on different periods (Tenor) of Repayment as per the
revised rate of Interest Structure:



                                                            EMI-FIXED rate of interest
        EMI-FLOATING rate of interest option
                                                                    option
                                                                             EMI (Rs. per
                           EMI (Rs. per Lac)
 Rate of Tenor                                            Rate of Tenor         Lac)
 Interest (yrs)                                           Interest (yrs) Advance Arrear
                    Advance Basis       Arrear Basis
                                                                           Basis  Basis
7.75*       5      2000              2010                9.25      5     2070    2080
8.00        5      2010              2020                10.25      10     1320       1330
8.25        10     1210              1220                10.50      15     1090       1100
8.25        15     840               850                 10.50      20     990        990
9.00        20     890               900                 11.00      20     1020       1030
9.00        25     830               830                 11.00      25     970        980

*.For Housing Loans under 'PNB Fin-Basket' Scheme.

Option for Fixed or Floating Rate of Interest exercised by the borrower will not be
allowed to be changed for a minimum period of 3 years, whereafter any change would
be at the discretion of the Sanctioning Authority.


 Repayment

Loan is to be repaid in equated monthly installments within a period of 25 years or before the
borrower attains the age of 65 years.
 Disbursement
                For outright purchase of house/ flat, the loan amount will be paid
                in lumpsum to the vendor.
                For house/ flat under construction, the loan amount will be
                disbursed in stages as per progress of construction/ demand by
                selling agency.


                          CONSUMER DURABLE FINANCE
EMI Calculator


PNB now enables you to possess consumer durables like Refrigerator, Television, Air
Conditioner, Microwave Oven, Cooking Range, Washing Machine, Music System,
Furniture, Personal Computer and other house hold equipment etc.

 Eligibility

Scheme covers all types of individuals including agriculturist with a Minimum Monthly
Net Income of Rs.5000/-.

 Amount of Loan

90% of cost of article(s), subject to a maximum of Rs.1 lac. However, the minimum
amount of loan shall be Rs.10, 000.

Margin: 10% of the desired loan amount shall be contributed as margin money by the
Applicant.

 Security

Hypothecation of the articles purchased. Third party guarantee acceptable to the bank.

 Rate of Interest

  i.   Prime Term Lending Rate plus Minimum 3% (Presently 14.50%): for
       prospective borrowers maintaining any type of deposit account with our branches
       with an average balance of Rs.2000 for a period of at least last one year.
 ii.   Prime Term Lending Rate plus Minimum 3.5% (Presently 15.00%): for other
       borrowers.

(Subject to change from time to time)

 Repayment

Amount of loan with Interest shall be recovered in maximum 60 equated monthly
installments comprising of Principal and interest.




                    EDUCATION LOAN - "VIDYALAKSHYAPURTI"


PNB's attractive Education Loan Scheme - "Vidyalakshyapurti" is designed to provide
financial support to deserving students to undertake basic education and to the meritorious
students to pursue higher professional and technical education in India and Abroad.



The Scheme enables all type of needy students viz., students of +2 Stage, Graduation courses
- B.A., B.Com., B.Sc. etc., Post-Graduation courses, Masters in Ph.D; Professional courses,
Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
Computer Certificate Courses of reputed Institutes accredited to Department of Electronics
or Institutes affiliated to University; Courses like ICWA, C.A., CFA etc., courses conducted
by IIM, IIT, NIFT etc., Evening courses of reputed Institutes, Diploma / Degree courses
conducted by Colleges, Universities approved by UGC / Government / AICTE etc., Courses
offered by National Institutes and other reputed Private Institutes, in order to meet the Cost
of their studies in India and abroad.

        Students should approach the branch nearest to the place of domicile.

Eligibility

       Student eligibility

              Should be an Indian National.
              Secured admission to Professional / Technical courses through
              Entrance Test / Selection process.
              Secured admission to foreign University / Institutions.
              Student should have secured pass marks in the qualifying Examination
              for admission to Graduation Courses.
     Expenses considered for Loan

         Fee payable to College / School / Hostel
         Examination / Library / Laboratory fee.
         Purchase of books / equipments / instruments / uniforms.Secured admission to
         foreign University / Institutions.
         Caution Deposit / Building Fund / Refundable Deposit supported by
         Institution Bills / Receipts.
         Travel Expenses / Passage money for studies abroad.
         Purchase of computers - essential for completion of the Course.
         Any other expense required to complete the course - like study tours, project
         work, thesis, etc.



Quantum of Finance

Need based finance, subject to repaying capacity of the parents / students with margin and
the following ceilings :-

      For studies in India: Maximum Rs.7.50 lacs.
      For studies abroad: Maximum Rs.15.00 lacs.

Margin

    Upto Rs.4.00 lacs:                      -                                        Nil.
                                            Studies in India                         5%
    Above Rs.4.00 lacs:
                                            Studies Abroad                           15%

 Security


    Upto Rs.4.00 lacs:                         No Security.
                                               Collateral Security of Suitable value
                                               (equivalent to 100% of the amount of
    Above Rs.4.00 lacs:
                                               loan) / co-obligation of parents / guardian
                                               / third party.
            Assignment of future income of the student for repayment of loan shall
            be taken in addition to the above.


       The security can be in the form of land / building / Govt. Securities / Public Sector
        Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares / Debentures, Bank
        Deposit in the name of the student parent / guardian or any other third party with
        suitable Margin.
       The document should be executed by both the student and the parent /
        Guardian.
  

Rate of Interest


       Upto Rs. 4 lacs                           PTLR (Presently 11.50%)
       Above Rs.4 lacs                           PTLR + 1% (presently 12.50%)

       The interest shall be debited monthly on simple basis during the Repayment holiday /
        Moratorium period.
       Penal Interest @2% be charged for above Rs.2.00 lacs for the overdue amount and
        overdue period.

Repayment


      Repayment
                 Coursee period + 1 year OR 6 months after getting job, whichever is
      Holiday /
                 earlier.
      Moratorium

       Principal and interest to be repaid in 5-7 years after commencement of repayment.
        Ifthr student is not able to complete the course within the schduled time, extension of
        time for completion of course may be permitted for a maximum period of 2 years.
       1% concession can be permitted in interest to loanees if the interest is serviced by
        them during the study period and the repayment holiday specified for interest /
        repayment under the Scheme.



Upfront Fee

 Nil
 Time Norms

   Loan Applications have to be disposed of within a period of 15 days to one month but not
exceeding the time norm stipulated for disposing of loan applications under Priority Sector
Lending.

Loan to be sanctioned by the branch nearest to the place of domicile of the student.



 Check List



To facilitate expedious disposal of applications, a check-list regarding documents, security
etc., alongwith application forms for Education loans be provided to intending borrowers.
An illustrative check-list is as under:

       Loan application on Bank's format.
       Passport size photograph
       Proof of Address.
       Proof of Age.
       Proof of having secured pass marks in last qualifying examination.
       Letter of admission in professional, technical or vocational courses.
       Prospectus of the course wherein charges like Admission Fee, Examination Fee,
       Hostel Charges etc. are mentioned.
       Details of Assets & Liabilities of parents.
       In case loan amount is above Rs.4.00 lacs :
        *. Particulars of Guarantors and details of their Assets & Liabilities.
        *. If immovable property offered as Collateral Security - copy of Title Deed,
           Valuation Certificate and Non-encumbrance Certificate from approved
           Lawyer of the Bank.
       Photocopy of Passport & Visa, in case of study abroad.
       Any other document/information, depending upon the case and purpose of the
       loan.
           * The above check-list is only illustrative, not exhaustive. For
             Details, please contact our nearest branch
               LOAN AGAINST MORTGRAGE OF IMOVABLE PROPERTY

 Eligibility & purpose

      Employees of Central/ State Govt/Schools/Colleges/Public Sector Undertakings(PSUs)
       Reputed Corporates for meeting their Personal needs
      Business Enterprises for meeting their Business needs.

 Amount of loan

Term Loan

Minimum Loan:- Rs. 2 Lacs
Maximum Loan:- Rs.15 Lacs
Income of spouses taken into consideration for determinating loan available.

Over Draft

Minimum :- Rs. 2 Lacs
Maximum :- Rs.100 Lacs


Rate of interest

Term Loan
PTLR + 2.50%

Overdraft
PLR + 2.50%

      This is subject to change.




 Repayment

      Loan together with interest is repayable in maximum 72 equal monthly installments and
       should not normally exceed 50% of the gross income of the borrower.
      Overdraft facility is to be renewed/ reviewed annually

 Area of operation

All the branches of PNB
                                PROFESSINA LOAN SCHEMES

PNB extends assistance to self-employed persons, firms and joint ventures of such professional
persons engaged in professions such as:

Medical practitioners including dentists, chartered accountants, cost accountants, practicing
company secretaries, who are not in regular employment of any employer, accredited journalists or
cameramen who are free lancers, i.e. not employed by a particular newspaper/magazine, lawyers or
solicitors, engineers, architects, surveyors, construction contractors or management consultants or
to a person trained in any other art or craft who holds either degree or diploma from any institution
established, aided or recognised by Government or to a person who is considered by the bank as
technically qualified or skilled in the field in which he is engaged. Loans under this scheme may be
granted for the purpose of financing purchase of equipment used by the borrowers, business
premises, construction, making alterations or renovation of business premises/nursing homes or for
working capital requirements, in their professions.

 Eligibility
  Persons already practicing or new entrants in various professions, having licenses
  issued under Central or State Legislations;
  Associations of persons engaged in a single profession provided that each member of
  such an association is qualified and duly licensed to practice in the profession; and
  The qualified professionals will be required to produce a certified copy of the license
  for the record at the bank
  .

Amount of Loan

Need based on merits within the overall permissible limits as under:

                         Metro/ Urban                   S.Urban/Rural Area

1. Medical practitioners   Rs 5.00 lac                     Rs 10.0 lac

2. Other professionals     Rs 5.00 lac                     Rs   5.00 lac

Margin: Nil up to Rs.25000/-. 25% Above Rs. 25000/-.

 Security
  Hypothecation/Mortgage of the goods purchased/created with the amount of loan till
  the final adjustment of bank's loan and interest thereon.
  Collateral security by way of immovable properties or acceptable third party guarantee
  in case of advances above Rs. 25000/-.



 Rate of Interest

For loans granted on or after 01.06.2003

       Loans up to Rs. 2 lac: (PLR/PTLR)% p.a.*
       Loans                   above              Rs.                   2                   lac:
                        Working           Capital                (PLR+2.00)%               p.a.*
              Term Loans (PTLR+2.00)% p.a.*

* Subject to change.

 Repayment

Term Loan

       Loans up to Rs.50000/- 48 months
       Loans beyond Rs.50000/- 60 months

Working Capital loans are renewable every year.

 Disbursement

Payments will be made direct to the suppliers/ dealers. In case of construction of the premises, the

loan may be disbursed in phases after verifying the end use in terms of the plan as also at the spot.




   CONCLUSION:
   From the above given data, it becomes clear that the concept of retail banking is very vast
   and it is also clear that both the banks i.e; ICICI & PNB are best in their own spheres and
   hence, have no competition from others. The only thing which these banks can do to
   enhance their capability is to increase their area of coverage and try to explore new products
   for emerging new markets.
  CONCLUSION


      &


RECOMMENDATION
RECOMMENDATION:-

ICICI BANK:

OBSERVATION                 CONCLUSION                  RECOMMENDATION

Product offers              Does not provide education Should provide education
                            loan                       loan
Quota setting               No set type of quota       Use particular type of quota

Planning style for budget   Top down                    Apply feed back from
                                                        bottom also
Communicationwith D.S.A.    On line                     It can also be interpersonal
                                                        contact for the knowledge
                                                        in depth




PUNJAB NATIONAL BANK:



OBSERVATION                 CONCLUSION                  RECOMMENDATION
Quota setting               Budget and activity quota   Sales volume quota

Territory allocation        Geographically              See market and product also

Sources of sales force      Within the break            Take outside also for new
recruit                                                 ideas and concept
Services provided by        NO D.S.A.                   Should appoint D.S.A. to
D.S.A.                                                  offer products for better
                                                        market coverage
ANNEXTURE
ANNEXTURE:-
                  QUESTIONNAIRE:-

    NAME----------------------------------------
    ADDRESS----------------------------------
    AGE---------------------PH. NO.----------------------
    MAIL ID----------------------------------------------


    (1) Which Bank are you banking with?

     a) ICICI

     b) PNB

     c) HDFC

     d) OTHERS


    (2) Are you satisfied with your Bank?
     a) Yes

     b) No

     c) Can’t say

    (3) What is your occupation?
      a) Govt. employee

      b) Private sector employee

      c) Businessman

      d) Others

    (4) What kind of account do you have?
      a) Saving

     b) Current
   c) Fixed




 (5) Is external person’s interference through bank to get recovery of loan is
 correct or not?
  (a) Yes


  (b) No


  (c) Cant say


  (6 )Have you taken loan from ICICI or PNB?
    (a) ICICI


    (b) PNB


 (7)Do you think government bank’s have more formalities in comparison to
 private banks?
  (a) Yes


  (b) No



 (8)Why you chose ICICI or PNB?




  SERVICES           ICICI                       PNB

  TIMING             60                         40
  FAST               75                         25
SERVICE
  FACILITY           60                         40
  PERSONAL           54                         46
ATTENTION
    ATM                  35                            65




(9) Which bank you prefer to loan ICICI or PNB?


      PRODUCT                        ICICI                  PNB
       CAR LOAN                  60                         40

      COMMERCIAL                 46                         54
      LOAN
       HOME LOAN                 50                         50

      LOAN                       70                         30
      AGAINST
      SECURITY
      PERSONAL                   55                         45
      LOAN
      LOAN                       35                         66
      AGGAINST
      MORTAGE
      EDUCATION                  0                          100




 (10) Which bank will you prefer to further transaction in future?

   (a) ICICI

  (b) PNB

								
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