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(UTTAR PRADESH STATE UNIVERSITY)

INTERNSHIP REPORT SUBMITTED TO SBI IN COMPLETION OF THE


EQUIREMENTOF SUMMER INTERNSHIP AT STATE BANK OF INDIA

PROJECT

TOPIC: HOW

TO IMPROVE
SHARE IN CAR
GHAZIPUR.

MARKET
LOANS AT

NAME OF STUDENT

PROJECT MENTOR

Akashdip

REPORTING OFFICER

MBA IIIrd SEMESTER

7th JUNE 2013 TO 6th AUGUST 2013

ACKNOWLEDGEMENTS
1

Preparing a project of this nature is an arduous task and I was fortunate enough to get support
from a large number of people to whom I shall always remain grateful. I would like to express
my gratitude to State Bank of India for allowing me to undertake this project.
I would like to take this opportunity to thank Mr. Raman Kumar
Srivastavafor providing me with an opportunity to work for State Bank of India.

I am also desirous of mentioning my profound indebtedness to Mr. Raman Kumar Srivastava, for
the valuable advice, guidance, precious time and support she offered.
I would be failing in my duty if I do not acknowledge my gratitude to Prof. K.K. Agrawal
Director, IMS Mahatma Gandhi KashiVidyapith Varanasi, who motivated me a lot in carrying
out this project.
Last but not the least, I would also like to thank all the respondents for giving me their precious
time, relevant information and advice without which I would not be able to complete this project.

DECLARATION
2

I hereby declare that the SUMMER INTERNSHIP on HOW O IMPROVE


MARKET SHARE IN CAR LOANS AT GHAZIPURin STATE BANK OF INDIA
submitted in partial fulfillment of requirement for the two years MBA is collected by my
own efforts and it is true and real to the best of my knowledge.
Also the report presented has not been published any where else..

AKASHDIP
MBA IIIrd SEM

CONTENT
Chapter PAGE NO
Introduction----------------------------------------------5
Company profile-------------------------------------------------07
Framework of Study--------------------------------------------46

Objective--------------------------------------------------47
Scope of study -------------------------------------------48
Research Methodology------------------------------------------49
Data Analysis and Interpretation-----------------------------52
Findings------------------------------------------------------------63
Limitations--------------------------------------------------------64
Conclusion---------------------------------------------------------66
Recommendations-----------------------------------------------Bibliography-------------------------------------------------------70

Appendix
Questionnaire------------------------------------------------------73

INTRODUCTION

PROFILE OF STUDENT:
AKASHDIP
AddressVillage UMARGANJ
Post-NARIYAON,
ZAMANIA, GHAZIPUR (U.P.)
PIN-232329
Qualification
High school

373/600

First Division

U.P.Board

Intermediate

357/500

First Division

U.P.Board

graduation

933/1800

Second Division

VBSPU JAUNPUR

Pursuing MBA from Mahatma Gandhi KashiVidyapith Varanasi

Company Profile:
State Bank of India (SBI) is a multinational banking and financial services company based in
India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As
of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign
offices, making it the largest banking and financial services company in India by assets.[2]
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding
in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two presidency banksBank of Calcutta
and Bank of Bombayto form the Imperial Bank of India, which in turn became the State Bank
of India. Government of India nationalised the Imperial Bank of India in 1955, with Reserve
Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the
government took over the stake held by the Reserve Bank of India. SBI was ranked 285th in the
Fortune Global 500 rankings of the world's biggest corporations for the year 2012.[1]
SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout the country.
SBI is a regional banking behemoth and has 20% market share in deposits and loans among
Indian commercial banks.[3]
The State Bank of India was named the 29th most reputed company in the world according to
Forbes 2009 rankings[4] and was the only bank featured in the "top 10 brands of India" list in an
annual survey conducted by Brand Finance and The Economic Times in 2010.[5]

Seal of
Bank of India:

Imperial

The
roots of the
State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta, later
renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of
three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April
1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were
incorporated as joint stock companies and were the result of the royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when with the Paper Currency Act,
the right was taken over by the Government of India. The Presidency banks amalgamated on 27
January 1921, and the re-organised banking entity took as its name Imperial Bank of India. The
Imperial Bank of India remained a joint stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve
Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank
of India. On 1 july 1955, the Imperial Bank of India became the State Bank of India. The
government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove
any conflict of interest because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act,
which made eight state banks associates of SBI. A process of consolidation began on 13
September 2008, when the State Bank of Saurashtra merged with SBI.
SBI has acquired local banks in rescues. The first was the Bank of Behar (est.
1911), which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired
National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI
acquired KrishnaramBaldeo Bank, which had been established in 1916 in Gwalior State, under
the patronage of Maharaja MadhoRaoScindia. The bank had been the DukanPichadi, a small
moneylender, owned by the Maharaja. The new banks first manager was Jall N. Broacha, a Parsi.
In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the

acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in
Kerala.
The State Bank of India and all its associate banks are identified by the same blue
keyhole logo. The State Bank of India wordmark usually has one standard typeface, but also
utilises other typefaces.

OVERVIEW:
State Bank of India is the largest and one of the oldest commercial bank in India,
in existencefor more than 200 years. The bank provides a full range of corporate, commercial
and retailbanking services in India. Indian central bank namely Reserve Bank of India (RBI) is
the majorshare holder of the bank with 59.7% stake. The bank is capitalized to the extent of
Rs.646bnwith the public holding (other than promoters) at 40.3%. SBI has the largest branch and
ATMnetwork spread across every corner of India. The bank has a branch network of over
14,000branches (including subsidiaries). Apart from Indian network it also has a network of
73overseas offices in 30 countries in all time zones, correspondent relationship with
520International banks in 123 countries. In recent past, SBI has acquired banks in Mauritius,
Kenyaand Indonesia. The bank had total staff strength of 198,774 as on 31st March, 2006. Of
this,29.51% are officers, 45.19% clerical staff and the remaining 25.30% were sub-staff. The
bank islisted on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock
Exchange,Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed
on theLondon Stock Exchange. SBI group accounts for around 25% of the total business of
thebanking industry while it accounts for 35% of the total foreign exchange in India. With this
typeof strong base, SBI has displayed a continued performance in the last few years in scaling
upits efficiency levels. Net Interest Income of the bank has witnessed a CAGR of 13.3% during
thelast five years. During the same period, net interest margin (NIM) of the bank has gone up
fromas low as 2.9% in FY02 to 3.40% in FY06 and currently is at 3.32%.ManagementThe bank
has 14 directors on the Board and is responsible for the management of theBanks business. The
board in addition to monitoring corporate performance also carries outfunctions such as
approving the business plan, reviewing and approving the annual budgetsand borrowing limits
and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of the bank. Thefive-year term of Mr.
9

Bhatt will expire in March 2011. Prior to this appointment, Mr. Bhatt wasManaging Director at
State Bank of Travancore. Mr. Bhatt has more than 30 years ofexperience in the Indian banking
industry and is seen as futuristic leader in his approachtowards technology and customer service.
Mr. Bhatt has had the best of foreign exposure inSBI. We believe that the appointment of Mr.
Bhatt would be a key to SBIs future growthmomentum. Mr. T S Bhattacharya is the Managing
Director of the bank and known for his vastexperience in the banking industry. Recently, the
senior management of the bank has beenbroadened considerably. The positions of CFO and the
head of treasury have been segregated,and new heads for rural banking and for corporate
development and new business bankinghave been appointed. The managements thrust on
growth of the bank in terms of network andsize would also ensure encouraging prospects in time
to come. 5
6. Shareholding & Liquidity (Till 30th Sept. 2012)Reserve Bank of India is the largest
shareholder in the bank with 59.7% stake followed byoverseas investors including GDRs with
19.78% stake as on September 06. Indian financialinstitutions held 12.3% while Indian public
held just 8.2% of the stock. RBI is the monetaryauthority and having majority shareholding
reflects conflict of interest. Now the government isrectifying the above error by transferring
RBIs holding to itself. Post this, SBI will have a furtherheadroom to dilute the GOIs stake from
59.7% to 51.0%, which will further improve its CARand Tier I ratio.Key Areas of OperationsThe
business operations of SBI can be broadly classified into the key income generating areassuch as
National Banking, International Banking, Corporate Banking, & Treasury operations.

HISTORY:
The origin of the State Bank of India goes back to the first decade of the
nineteenth centurywith the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.
Three years later thebank received its charter and was re-designed as the Bank of Bengal (2
January 1809). Aunique institution, it was the first joint-stock bank of British India sponsored by
the Governmentof Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July
1843) followedthe Bank of Bengal. These three banks remained at the apex of modern banking
in India tilltheir amalgamation as the Imperial Bank of India on 27 January 1921.Primarily
Anglo-Indian creations, the three presidency banks came into existence either as aresult of the
compulsions of imperial finance or by the felt needs of local European commerceand were not
imposed from outside in an arbitrary manner to moderniseIndias economy. Theirevolution was,
however, shaped by ideas culled from similar developments in Europe andEngland, and was
influenced by changes occurring in the structure of both the local tradingenvironment and those
in the relations of the Indian economy to the economy of Europe andthe global economic
framework.The three banks were governed by royal charters, which were revised from time to
time. Eachcharter provided for a share capital, four-fifth of which were privately subscribed and
10

the restowned by the provincial government. The members of the board of directors, which
managedthe affairs of each bank, were mostly proprietary directors representing the large
Europeanmanaging agency houses in India. The rest were government nominees, invariably
civilservants, one of whom was elected as the president of the board. Group Photograph of
Central Board (1921) 7

Business:
The business of the banks was initially confined to discounting of bills of
exchange or othernegotiable private securities, keeping cash accounts and receiving deposits and
issuing andcirculating cash notes. Loans were restricted to Rs.one Lakh and the period of
accommodationconfined to three months only. The security for such loans was public securities,
commonlycalledCompanys Paper, bullion, treasure, plate, jewels, or goods not of a perishable
natureand no interest could be charged beyond a rate of twelve per cent. Loans against goods
likeopium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were
alsogranted but such finance by way of cash credits gained momentum only from the third
decadeof the nineteenth century. All commodities, including tea, sugar and jute, which began to
befinanced later, were either pledged or hypothecated to the bank. Demand promissory
noteswere signed by the borrower in favour of the guarantor, which was in turn endorsed to the
bank.Lending against shares of the banks or on the mortgage of houses, land or other real
propertywas, however, forbidden.Indians were the principal borrowers against deposit of
Companys paper, while the business ofdiscounts on private as well as salary bills was almost the
exclusive monopoly of individualsEuropeans and their partnership firms. But the main function
of the three banks, as far as thegovernment was concerned, was to help the latter raise loans from
time to time and alsoprovide a degree of stability to the prices of government securities.First Five
Year PlanIn 1951, when the First Five Year Plan was launched, the development of rural India
was giventhe highest priority. The commercial banks of the country including the Imperial Bank
of Indiahad till then confined their operations to the urban sector and were not equipped to
respond tothe emergent needs of economic regeneration of the rural areas. In order, therefore, to
servethe economy in general and the rural sector in particular, the All India Rural Credit
SurveyCommittee recommended the creation of a state-partnered and state-sponsored bank by
takingover the Imperial Bank of India, and integrating with it, the former state-owned or stateassociate banks. An act was accordingly passed in Parliament in May 1955 and the State Bankof
India was constituted on 1 July 1955. More than a quarter of the resources of the Indianbanking
system thus passed under the direct control of the State. Later, the State Bank of India(Subsidiary
Banks) Act was passed in 1959, enabling the State Bank of India to take over eightformer Stateassociated banks as its subsidiaries (later named Associates).The State Bank of India was thus
born with a new sense of social purpose aided by the 480offices comprising branches, sub offices
and three Local Head Offices inherited from theImperial Bank. The concept of banking as mere
repositories of the communitys savings andlenders to creditworthy parties was soon to give way
to the concept of purposeful bankingsubserving the growing and diversified financial needs of
11

planned economic development. TheState Bank of India was destined to act as the pacesetter in
this respect and lead the Indian 8
banking system into the exciting field of national development.

COMPETITORS:
Competitors and other players in the field:-Top Performing Public Sector
BanksAndhraBankAllahabadBankPunjab National BankDenaBankVijayaBankTop Performing
Private Sector BanksHDFCBankICICIBankAXISBankKotak Mahindra BankCenturion Bank of
PunjabTop Performing Foreign BanksCitibankStandardCharteredHSBCBankABN AMRO Bank
9

American ExpressStrength/ Opportunities:


The growth for SBI in the coming years is likely to be fueled by the following factors:
Continued effort to increase low cost deposit would ensure improvement in NIMs andhence
earnings. Growing retail & SMEs thrust would lead to higher business growth. Strong
economic growth would generate higher demand for funds pursuant to highercorporate demand
for credit on account of capacity expansion.Weakness/ Threats:The risks that could ensue to SBI
in time to come are as under: SBI is currently operating at a lowest CAR. Insufficient capital
may restrict the growthprospects of the bank going forward. Stiff competition, especially in the
retail segment, could impact retail growth of SBI andhence slowdown in earnings growth.
Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growingretail
book poses higher credit risk to the bank. Delay in technology upgradation could result in loss
of market shares. Management indicated a likely pension shortfall on account of AS-15 to be
close toRs50bn. Slow down in domestic economy would pose a concern over credit off-take
therebyimpacting earnings growth.

12

SBI NEW CAR LOAN SCHEME:


SBI provide the best car loan scheme for you.
Salient features:
No Advance EMI;

Longest repayment tenure (7 years);

Lowest interest rates;

Lowest EMI;

LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of
accessories worth Rs 25000), 90% in case of Corporate Salary Package accounts;

Interest Calculated on Daily Reducing Balance;

Flexibility of payment of EMI anytime during the month;

No pre-payment penalty;

Optional SBI Life cover;

Overdraft facility available.

13

Purpose
For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.
Eligibility

To available an SBI Car Loan, you should be:

Individual between the age of 21-65 years of age.

Regular employee of State / Central Government, Public Sector Undertaking, Private


Company or a reputed establishment.

Professionals, self-employed, businessmen, proprietary/partnership firms who is an


income tax assesse.

Person engaged in Agricultural and allied activities.


Net Annual Income Rs. 2,50,000/- and above.

Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan amount of
48 times of Net Monthly Income or 4 times of Net Annual Income can be sanctioned.

Documents Required
You would need to submit the following documents along with the completed
application form:
1.

Statement of Bank account of the borrower for last 6 months.

2.

2 passport size photographs of borrower(s).

3.

A copy of passport /voters ID card/PAN card.


14

4.

Proof of residence.

5.

Latest salary-slip showing all deductions.

6. I.T. Returns/Form 16: 2 years for salaried employees and 2 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicable.
7.

Proof of official address for non-salaried individuals.

Margin:
15% of the on road price (which includes vehicle registration charges, insurance,
one-time road tax and accessories).

Repayment
You can enjoy the longest repayment period in the industry with us as long as 84
months.
`

Reimbursement of costs of car purchased by own sources.

We also reimburse finance for the cars purchased out of own funds which are not
more than 3 month old at rate of interest applicable to New Car.

Interest
Interest Rates w.e.f. 04.02.2013 (Base Rate 9.70 % p.a.)

SBI CAR LOAN SCHEME


Tenure
Rate of Interest
For all tenures
For Term Loan and Overdraft:
0.75% above Base Rate, i.e. 10.45% p.a.

NRI Car Loan


Tenure
Rate of Interest
15

For all tenures


0.75% above Base Rate, i.e. 10.45% p.a

Processing Fee
0.51% of the loan amount subject to minimum of Rs. 1020/- and maximum of Rs. 10200/-

Security
As per Bank's extant instructions.

1. SBI NEW CAR LOAN SCHEME

2. SBI COMBO LOAN SCHEME

3. CERTIFIED PRE-OWNED CAR LOAN

4. CAR LOAN SCHEME FOR USED CAR

5. 2-WHEELER LOAN

6. MOST IMPORTANT TERMS AND CODITIONS

16

7. CAR LOAN APPLICATION FORM

8. CAR LOAN DOCUMENTS CHECK-LIST

SBI NEW CAR LOAN SCHEME


SBI provide the best car loan scheme for you.
Salient features:

No Advance EMI;
Longest repayment tenure (7 years);
Lowest interest rates;
Lowest EMI;
LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of
accessories worth Rs 25000), 90% in case of Corporate Salary Package accounts;
Interest Calculated on Daily Reducing Balance;
Flexibility of payment of EMI anytime during the month;
No pre-payment penalty;
Optional SBI Life cover;
Overdraft facility available.

Purpose
For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.
Eligibility
To avail an SBI Car Loan, you should be :

Individual between the age of 21-65 years of age.


Regular employee of State / Central Government, Public Sector Undertaking, Private
company or a reputed establishment.
Professionals, self-employed, businessmen, proprietary/partnership firms who is an
income tax assessee.
Person engaged in Agricultural and allied activities.
Net Annual Income Rs. 2,50,000/- and above.

17

Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan amount of 48 times of Net
Monthly Income or 4 times of Net Annual Income can be sanctioned.

Documents Required
You would need to submit the following documents along with the completed application form:

Statement of Bank account of the borrower for last 6 months.


2 passport size photographs of borrower(s).
A copy of passport /voters ID card/PAN card.
Proof of residence.
Latest salary-slip showing all deductions
I.T. Returns/Form 16: 2 years for salaried employees and 2 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicable
Proof of official address for non-salaried individuals

Margin
15% of the on road price (which includes vehicle registration charges, insurance, one-time road
tax and accessories).
Repayment
You can enjoy the longest repayment period in the industry with us as long as 84 months.
Reimbursement of costs of car purchased by own sources
We also reimburse finance for the cars purchased out of own funds which are not more than 3
month old at rate of interest applicable to New Car.

Interest
CAR LOANS

Interest Rates w.e.f. 04.02.2013 (Base Rate 9.70 % p.a.)


18

SBI CAR LOAN SCHEME


Tenure

Rate of Interest

For all tenures

For Term Loan and Overdraft:


0.75% above Base Rate, i.e. 10.45% p.a.

NRI Car Loan


Tenure

Rate of Interest

For all tenures

0.75% above Base Rate, i.e. 10.45%


p.a

Two - Wheeler Loan


Tenure

Rate of Interest

Up to 3 years

8.25% above Base Rate i.e. 17.95% p.a.

Used Vehicles
Tenure

Rate of Interest

Up to 3 years

7.25% above Base Rate i.e. 16.95% p.a.

Above 3 yrs

7.50% above Base Rate i.e. 17.20% p.a.

Certified Pre-owned Car Loan scheme


Tenure

Rate of Interest

Up to 3 years

6.00% above Base Rate i.e. 15.70% p.a.

Above 3 yrs

6.50% above Base Rate i.e. 16.20% p.a.

SBI COMBO LOAN SCHEME


Tenure

Rate of Interest

For all tenures

For Term Loan


0.75% above Base Rate i.e. 10.45% p.a.

19

Processing Fee
0.51% of the loan amountsubject to minimum of Rs. 1020/- and maximum of Rs. 10200/Security
As per Bank's extant instructions.
SBI COMBO LOAN SCHEME
SBI provides the loan for purchase of Car and Two Wheeler taken together.
Salient features:

No Advance EMI;
Longest repayment tenure (7 years);
Lowest interest rates;
Lowest EMI;
LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of accessories
worth Rs 25000), 90% in case of Corporate Salary Package accounts;
Interest Calculated on Daily Reducing Balance;
Flexibility of payment of EMI anytime during the month;
No pre-payment penalty;
Free Accident insurance; Optional SBI Life cover;

Purpose
For purchase of Car and Two Wheeler taken together.
Eligibility
To avail the Loan, you should be :
Individual between the age of 21-65 years of age.
Regular employee of State / Central Government, Public Sector Undertaking, Private
company or a reputed establishment.
Professionals, self-employed, businessmen, proprietary / partnership firms who is an income
tax assessee.
Person engaged in Agricultural and allied activities.
Net Annual Income Rs. 2,50,000/- and above.
Loan

Amount

There is no upper limit for the amount of the loan. A maximum loan amount of 48 times of Net
20

Monthly

Income

or

times

of

Net

Annual

Income

can

be

sanctioned.

Process
i) Submission of both the invoices alongwith application form.
ii) Disbursement:
a) Simultaneously for two vehicles
or,
b) First Car Loan portion and then two-wheeler portion. But any case both disbursement should
be within one month
Documents Required
You would need to submit the following documents along with the completed application form:
1.Statement of Bank account of the borrower for last 6 months.
2. 2 passport size photographs of borrower(s).
3. A copy of passport /voters ID card/PAN card.
4. Proof of residence.
5. Latest salary-slip showing all deductions
6. I.T. Returns/Form 16: 2 years for salaried employees and 2 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicable
7. Proof of official address for non-salaried individuals
Margin
15% of the on road price of the Car and two-wheeler (which includes vehicle registration
charges,
insurance,
one-time
road
tax
and
accessories).
Repayment
You can enjoy the longest repayment period of 84 months.

Interest

21

CAR LOANS
Interest Rates w.e.f. 04.02.2013 (Base Rate 9.70 % p.a.)

SBI CAR LOAN SCHEME


Tenure

Rate of Interest

For all tenures

For Term Loan and Overdraft:


0.75% above Base Rate, i.e. 10.45% p.a.

NRI Car Loan


Tenure

Rate of Interest

For all tenures

0.75% above Base Rate, i.e. 10.45%


p.a

Two - Wheeler Loan


Tenure

Rate of Interest

Up to 3 years

8.25% above Base Rate i.e. 17.95% p.a.

Used Vehicles
Tenure

Rate of Interest

Up to 3 years

7.25% above Base Rate i.e. 16.95% p.a.

Above 3 yrs

7.50% above Base Rate i.e. 17.20% p.a.

Certified Pre-owned Car Loan scheme


Tenure

Rate of Interest

Up to 3 years

6.00% above Base Rate i.e. 15.70% p.a.

Above 3 yrs

6.50% above Base Rate i.e. 16.20% p.a.

SBI COMBO LOAN SCHEME


22

Tenure

Rate of Interest

For all tenures

For Term Loan


0.75% above Base Rate i.e. 10.45% p.a.

Processing Fee
0.51% of the loan amountsubject to minimum of Rs. 1020/- and maximum of Rs. 10200/Security
As per Bank's extant instructions.

ERTIFIED PRE-OWNED CAR LOAN


SBI provide the best car loan scheme for you to take a loan for purchase of Certified Pre-owned
Car, not more than 5years old.
SBI offers you:

No Advance EMI;

Longest repayment tenure (7 years);

Lower interest rates

Lowest EMI;

LTV 85% of On Road Price of car (includes registration, insurance and cost of
accessories),

Interest Calculated on Daily Reducing Balance;

Flexibility of payment of EMI anytime during the month;

Low pre-payment penalty, only 2%;

Low processing fee (only 0.51% of loan amount);

Free Accidental insurance; Optional SBI Life cover;

23

The Scheme
Purpose
Term Loans for purchase of Certified Pre Owned car, from certified used car dealers, not more
than fiveyears old. The loan should be repaid within 7 years from the date of the original
purchase of the vehicle.
Eligibility
To avail an SBI Car Loan, you should be:

Individual between the age of 21-65 years of age.

A Permanent employee of State / Central Government, Public Sector Undertaking,


Private company or a reputed establishment or

A Professionals or self-employed individual who is an income tax assessee or

A Person engaged in agriculture and allied activities.

Net Annual Income Rs. 100,000/- and above.

Salient Features
Loan Amount
Maximum Loan amount will be 2.5 times of net annual income. Spouses income could also be
considered provided the spouse becomes a co-borrower in the loan.
Documents Required
You would need to submit the following documents along with the completed application form:
1. Statement of Bank account of the borrower for last 6 months.
2. 2 passport size photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
24

4. A copy of passport /voters ID card/PAN card.


5. Proof of residence.
6. Latest salary-slip showing all deductions
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.
Margin
15% of the on the road price (which includes vehicle registration charges, insurance, one-time
road tax and accessories).
Repayment
You can enjoy the longest repayment period in the industry with us as long as 84 months.
Interest

Processing Fee
0.51% of Loan amount
Security
As per Bank's extant instructions.
MOST IMPORTANT TERMS AND CONDITIONS
MITC covers the following Loan Products:
1. SBI Car Loan
2. SBI NRI Car Loan
3. SBI Used car Loan
4. SBI Certified Pre-approved Car Loan
5. SBI Two-wheeler loan

25

Purpose for which Auto loan can be availed:


The loan will be sanctioned for the purpose purchase of new Cars/used cars, Multi Utility
Vehicles (MUVs) and Semi Utility Vehicles (SUVs).
Loan tenure:
Maximum 84 months for all.
Loan to Value Ratio (LTV):
Maximum permissible LTV ratio is 85% of on road price of the car. 15% margin has to be
borne by the borrower.

Rate of Interest:
Fixed Rate of Interest:Interest on the loan will be charged at the prevailing fixed rate of interest on daily reducing
balance at monthly rests, subject to interest rate reset at the end of every two years on the basis of
fixed interest rates prevailing then. SBI may at its discretion stipulate the periodicity of
computation of interest. Further, SBI may at its sole discretion alter the rate of interest suitably
and prospectively in the event of major volatility in interest rates during the period of the
agreement. SBI shall be the sole judge to determine whether such condition exists or not. If the
Borrower is not agreeable to the revised interest rate so fixed, the Borrower can request SBI,
within 15 days of receipt of the notice intimating change in interest rates from SBI, to terminate
the loan and the Borrower shall repay the Loan and any other amount due to SBI in full and final
settlement in accordance with the provisions of the Agreement relating to pre-closure.

Floating Rate of Interest: Interest on the loan will be charged at prevailing floating rate of interest on a daily reducing
balance at monthly rest. The rate of interest is subject to revision from time to time due to (i)
changes in Base Rate or (ii) revision even without change in Base Rate the Bank has the option
to reduce or increase the EMI or extend the repayment period or both consequent upon revision
in interest rate.

Calculation of Interest:Interest on the amount of the will be applied at the prevailing rate per annum on daily reducing
balance with monthly rests.

26

Penal interest:Penal interest will not be charged for loans upto Rs.25,000/-. For Loans above Rs.25000/- , if the
irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest
would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount
for the period of default.

Bounced cheque/ECS or SI dishonors:A penalty of Rs 250/- will be charged for every bounced cheque/ECS or SI dishonors. The rate
may vary from time to time.

Intimation of change in Base Rate:The borrower shall be deemed to have notice of changes in the rate of interest whenever there are
changes in Base Rate or increase in interest rates where there is no change in Base Rate are either
displayed on the Notice Board of the Branch or published in news papers or made through
entries of the interest rate charged in the passbook/statement of account furnished to the
borrower and the borrower is liable to pay such revised rate of interest.

Repayment:
For the loan disbursed on or before 15th of the month, the repayment to be started on 10th of the
following month. For the loan disbursed on or after 16th of the month, the repayment to be
started on 20th of the following month.
Six PDCs covering the loan amount to be given. Wherever ECS is available, the Bank may use
the service for paperless debit of instalments.
Pre-Payment penalty:Pre-payment penalty is waived.

Security:
a) Borrower undertakes to get hypothecation to the Bank marked in Registration book of the
vehicle immediately after purchase of the vehicle.
c) Bank will verify the original RC book for noting down the charges in favour of the Bank.
Insurance:
27

The vehicle purchased is to be kept comprehensively insured for the market value or at least 10%
above the loan amount outstanding, whichever is higher, and the Banks interest as a
hypothecatee should be noted in the Certificate of insurance and Insurance policy. The borrower
must ensure that renewal of insurance is done on the due dates and ensure a copy reaches the
Bank for its record. Failing which the insurance will be taken at the Banks end by debit to the
loan account of the borrower.

Inspection:
For Standard Asset accounts periodical inspections are waived after the initial inspection.
However, if there is a default of 2 monthly instalments, inspection would be required. In case of
NPA accounts inspections should be made twice a year.

SBI - Auto Loan


The inspection charges are to be recovered every time an inspection is carried out as per the laid
down instructions. The inspection fee of Rs. 750/- will be recovered by the inspecting branch by
raising a debit on the financing branch and credit it to its commission account.
Fees and charges:
1. Processing fee:
a) For Car Loans:Processing fee is to be recovered on the loan amount upfront as under:
i) When loans are sanctioned: 0.51% of the loan amount subject to Minimum of Rs. 1020/- and
maximum of Rs. 10200/-.
ii) When loans are rejected: 25% of the Processing Fee will be retained if the application is
rejected after pre-sanction survey subject to Minimum of Rs. 510/- and maximum of Rs. 2550/-.
b) For Two-wheeler Loans:When loans are sanctioned: 1.22% of the loan amount subject to Minimum of Rs. 255/- and
maximum of Rs. 510/-.
2. State Bank of India retains the right to alter any charges or fees from time to time or to
introduce any new charges or fees, as it may deem appropriate, with due intimation to customer.

Disbursement:
The loan will be disbursed only on the following conditions:
28

1. Loan Amount will be credited to the account of supplier/dealer by way of RTGS/NEFT


facility.
2. All necessary statutory compliances are in place.
The Bank reserves the right to collect any tax if levied by the State/Central Government and/or
other Authorities in respect of this transaction.
KYC:
All loans will be sanctioned after completion of KYC verification.

CIBIL Disclosure:
The Borrower(s) hereby agree and give consent for disclosure by the Bank all or any (a)
information and data relating to the Borrower(s) (b) information or data relating to any credit
facility availed or/to be availed by the Borrower(s) and default, if any, committed by the
Borrower(s) in discharge of his/their such obligation as the Bank may deem appropriate and
necessary, to disclose and furnish to Credit Information Bureau (India) Ltd. (CIBIL), and any
other agency authorized in this behalf by RBI

Default:
In case of default i.e. if the amount due is not paid by due date, the customer will be sent
reminders from time to time for payment of any outstanding on his loan account, by post, fax,
telephone, email, SMS messaging and/or through third parties appointed for collection purpose
to remind, follow-up and collect dues.

TAT:
The loan applications with complete information and required documents will be disposed within
a period of 2 days at urban Centres and 4 days at Rural Centres.

Customer Service:
For any service related issue, customer can get in touch with SBI by:

Calling Customer helpline numbers


Contact Customer Grievance cell at our Local Head Offices
Write to Grievance cell at our Local Head Offices

Disclosure:
29

State Bank of India is authorized to disclose from time to time any information relating to the
loan to any credit bureau (Existing or Future) approved by Government of India and Reserve
Bank of India without any notice to the borrower. State Bank of India is also authorized to make
inquiries with the Credit Information Bureau of India (CIBIL) and get the applicants Credit
Information Report.

DOCUMENT CHECK-LIST :
Particulars of the documents required to be submitted along with the fully completed
application form.

GENERAL DOCUMENTS (APPLICABLE TO ALL)


1. Application form duly filled by the borrower, Co-borrowers (if applicable) and submitted
along with 2 photographs each.
2. Proof of identity (Photocopies of PAN/Passport/Drivers License, Voter ID card)
3. Proof of Residence (photo copies of recent Telephone Bills/ Electricity
Bill/Property tax receipt/ Passport/ Voters ID card)
4. Statement of Bank account for last 6 months held by the applicant/s.
5. Personal asset liability statement in the Banks standard format.
ADDITIONAL DOCUMENTS:
FOR SALARIED EMPLOYEES
1. Latest Salary slip.
2. Copy of identity card issued by the employer.
3. Form16 or IT Returns for the last 2 years.
4. Irrevocable Letter of Authority addressed to disbursing authority
5. Irrevocable Letter of Authority from the person authorized to disbursed salary and allowances
FOR SELF EMPLOYED/PROFESSIONALS/BUSINESSMEN
1. Photocopies of IT Returns/Assessment orders for the last 2 years.
2. Balance sheet and Profit and Loss A/c for the last three years (Certified true
30

copy)
3. Proof of business address.
4. Business proof (Registration Certificate of establishment, Gumasta /Trade
license, Sales Tax Registration,etc.)
5. A photocopy of Certificate of Practice (if applicable).
6. TDS Certificate (Form 16A, if applicable)

FOR AGRICULTURISTS AND PERSONS ENGAGED IN ALLIED ACTIVITIES


1. Documents showing Land Holding
2. Documents showing Cropping Pattern
3. Interview Form
Toensure quick processing and disbursal of your Auto Loan, furnish all documents
(applicable to your case) along with the completed SBI Auto Loan Application Form.
FOR NRIs AND PIOs
For Borrower:
1. 2 passport size photographs of borrower.
2. Signature identification from bankers of borrower.
3. A copy of passport /voters ID card/PAN card.
For Gurantor:
1. Copy of passport including page containing visa stamping.
2. Copy of valid work permit/ work contract and Appointment letter.
3. Copy of identity card issued by the employer.
4. Statement of overseas bank account for the last six months which reflects credit of salary,
savings etc
5. Salary slips for the last three month or Tax Returns(if applicable)
6. Copy of Continuous Discharge Certificate in respect of applicants employed in
31

Merchant Navy.
7. Power of Attorney, if applicable, in Banks standard format duly stamped and
notarized/attested by Indian Embassy/Consulate.
VEHICLE DOCUMENTS
1. Original copy of proforma invoice (quotation).
2. Booking receipt.

TAKE OVER LOAN FROM OTHER BANK


1. Original Sanction letter of financer.
2. A/c statement of the financer.
3. RC Book, Insurance Copy.
4. Foreclosure letter.
5. List of documents held by the financing institute.
6. Letter undertaking to issue NOC, from the current lender bank/FI.
Income Gross annual income of at least
Criteria* Rs. 2.50 lakhs.

Gross annual
income of at
least Rs. 2.00
lakhs.
Stability The total employment stability
Business
should be more than 2 years and stability should
current employment stability of be more than 3
minimum 1 year.
years.

Firm should have a


minimum PAT (profit
after tax) of Rs. 2.00
lakhs.
Business stability
should be more than 3
years.

Minimum PAT
(profit after tax)
of Rs. 2.00 lakhs.
Business stability
should be more
than 3 years.

Loan Amount
The minimum loan amount for taking a new car loan is Rs. 1,00,000. The maximum
loan amount will depend upon the price of the car, model variant, profile of the
customer, etc.
New Car
Icici Bank finance up to 90% of the ex-showroom price of the car.
The Loan amount also depends on the car model. Higher loan amounts are available
under specific enhanced income eligibility criteria.

32

Service Charges:
Icici Bank car loan interest charges differ according to the car model, the tenure of
the loan, the customer and his location.
Description of Charges

Car Loans
New Car

Loan Processing Fees

Gross Loan
Amt

Processing
Fee Amt

Documentation
Charges

<2.5 L

Rs.2500/-

Rs.350/-

2.5 L to 5 L

Rs.3100/-

Rs.350/-

5 L to 10 L

Rs.4000/-

Rs.350/-

>10 L

Rs.5000/-

Rs.350/-

Stamp Duty

Actuals

Prepayment Charges

Lower of the two amount given below.


1. 5% of principal outstanding or
2. Interest outstanding for unexpired period
of the loan.

Charges for late payment (loans)

2% per month on the outstanding


installment

Cheque Swap Charges

Rs. 500/- per transaction

Cheque return charges^

Rs. 400/- per return

Amortisation Schedule Charges

Rs. 200/- per schedule

Statement of Account Charges

Rs. 200/- per statement

Prepayment Statement Charges

Rs. 100/- per statement

Duplicate NOC Charges

Rs. 500/- per NOC

NOC for conversion from Petrol to LPG/CNG

Rs. 500/- per NOC

Revalidation of NOC Charges

Rs. 500/- per NOC

33

NOC to convert from Private to Commercial


Registration

Rs. 2000/- per NOC

NOC to convert from Commercial to Private


Registration

Rs. 2000/- per NOC

Documentation
Income proof:
Salaried individuals :Latest Salary Slip and 2 years Form 16/ Income tax returns.
Self-Employed individuals: Income Tax Returns of 2 previous financial years.
Partnership Firms, Societies &Companies : Income Tax returns of 2 previous financial
years along with complete financial/audit report
Documents supporting customer information :
Identity Proof, Signature Proof and Address Proofs as per ICICI Bank norms (Our
representative will help you choose suitable documents).
Other documents:
Partnership Firms: Partnership deed and Letter signed by all partners authorising
one partner to execute the required Car Loans documentation.
Societies and Companies: Resolution by Board of Directors (or such managing body)
& Memorandum & Articles of Association (or Society/Trust deed).
Repayment Repayment terms of your car loan Repayment tenure ranges from 1 year to 5
years for new car loans.

Features and Benefits of HDFC Car Loan

HDFC Car Loan Interest Rate 10.75% 12.50% ( New Rates Updated on 12 August
2013)

Processing Fees From Rs.2625 upto Rs.4950/34

HDFC Car Loan Tenure 1 year to 7 years

No foreclosure charges on Select Manufacturers

Foreclosure not allowed for first 6 months

No guarantor required

HDFC Car Loan Amount Varies based on car model. Up to 100% financing for preapproved customers.

HDFC Group employees will have a standard rate of 10.50% for New Car Loans across all
segments for 36 to 84 months tenured loans, and 13.50% under Pre-owned Cars for 36 to
60 month tenured loans. PF will be Nil and Foreclosure Charges will be waived after 24
months.

NO Foreclosure CHARGES AFTER 24 MONTHS ON MARUTI, HYUNDAI, HONDA


& TOYOTA CARS DISBURSED TILL 31ST MARCH 2013

OTHER MFTR MODELS, THE Foreclosure CHARGES WILL BE 50% AFTER 24


MONTHS FOR KRC, AUTO MFTR, SUPER A & CAT A, AND NIL WAIVER FOR
CAT B.

FOR GOVERNMENT EMPLOYEES, NO Foreclosure CHARGES AFTER 12


MONTHS FOR MARUTI, HYUNDAI, TOYOTA & HONDA CARS

Foreclosure Charges and Prepayment charges Details on HDFC Bank Car Loan
Description of charges

Foreclosure Charges

Part payment charges would be


applicable on the part prepayment
amount

New Car Loans


6% of Principal Outstanding for preclosures within
1 year from 1st EMI
5% of Principal Outstanding for preclosures within
13-24 months from 1st EMI
3% of Principal Outstanding for preclosures post 24
months from 1st EMI
No foreclosure allowed within 6 months from date
of availing the car loan
5 % on the part payment amount in case part
prepayment is within 13-24 months from 1st EMI
3% on the part payment amount in case part
35

prepayment is post 24 months from 1st EMI


Part-payment is allowed subject to completion of
12 months (i.e., Post payment of 12 EMIs)
Part payment will be allowed twice only
At any point of time, part payment will not increase
beyond 25% of Principal Outstanding

Documents Required for HDFC Bank Car Loan:


Salaried
employee

Proof of
Identity:
Passport
copy, PAN
Card,
Voters Id
card,
driving
licence( La
minated,
Recent,
Legible)
Income
Proof: Lat
est salary
slip with
form 16.
Address
Proof: Rat
ion
card/Drivi
ng
licence/Vot
ers
card/passp
ort
copy/telep
hone bill/

Self employed
individual

Proof of
Identity:
Passport
copy, PAN
Card, Voters
Id car,
driving
licence( La
minated,
Recent,
Legible)

Self employed
(Partnership
Firms)

Proof of
Identity: N
A

Proof of
Identity:
NA

Proof of
Identity:
NA

Income
Proof: Audi
ted balance
sheet, Profit
& Loss
Account for
latest two
years and
the latest 2
years IT
returns of
the
company

Income
Proof: Au
dited
balance
sheet,
Profit &
Loss
Account
for latest
two years
and the
latest 2
years IT
returns of
the
company

Income
Proof: Au
dited
balance
sheet,
Profit &
Loss
Account
for latest
two years

Address
Proof: Tel
ephone
Bill/Electr
icity
Bill/Shop
&
Establish
ment Act
certificate/
SSI
registered
certificate/
Sales Tax

Income
Proof: Late
st ITR
Address
Proof: Rati
on
card/Drivin
g
licence/Vote
rs
card/passpor
t
copy/teleph
one bill/
electricity
bill/Life
insurance

Self employed
Self employed
(Private Limited (Public Limited
Companies)
Companies)

Address
Proof: Tele
phone
Bill/Electric
ity
Bill/Shop &
Establishme
nt Act
certificate/S
SI
registered
certificate/S

Address
Proof: Tel
ephone
Bill/Electr
icity
Bill/Shop
&
Establish
ment Act

36

electricity
bill/Life
insurance
policy
PAN Card.

policy PAN
Card

Bank
Statement
: Not
mandatory

Bank
Statement:
Waived for
small cars,
for mid
sized and
premium
cars if
income is
greater than
Rs. 1.5
Lakhs then
bank
statement
requirement
can be
waived.

ales Tax
certificate

Bank
Statement:
Waived for
small cars,
for mid
sized and
premium
cars if
income Is
greater than
Rs. 1.5 lacs
then bank
statement
requirement
can be
waived

certificate/
SSI
registered
certificate/
Sales Tax
certificate

certificate

Bank
Statement
: NA

Bank
Statement
: NA

Eligibility Required for HDFC Bank Car Loan:


Salaried employee

Self employed
individual

Be between
the age of
21 years (at
the time of
application)
and <= 65
years (at the
end of the
loan tenure)

Be between
the age of
21 years (at
the time of
application)
and <= 65
years (at the
end of the
loan tenure)

Have had a
job for at
least 2

Be in
business for
at least

Self employed
(Partnership
Firms)

Earn at least
Rs. 60,000
per annum if
you are
looking to
buy a
standard car
and at least
Rs. 1,00,000
per annum
for mid-sized
and premium

Self employed Self employed


(Private Limited
(Public
Companies)
Limited
Companies)

Earn at
least Rs.
60,000 per
annum if
you are
looking to
buy a
standard
car and at
least Rs.
1,00,000
per annum
for mid-

Earn at
least Rs.
60,000
per
annum if
you are
looking
to buy a
standard
car and
at least
Rs.
1,00,000
37

years, and a
minimum
of 1 year
with your
current
employer

3years

Earn at
least an
income of
Rs.
1,00,000
annually,
including
the income
of your
spouse
Have a
telephone at
your
residence

Earn at
least Rs.
60,000 per
annum if
you are
looking to
buy a
standard car
and at least
Rs.
1,00,000
per annum
for midsized and
premium
cars.

cars

Have a
minimum
turnover of
Rs. 4,50,000
per annum
Have a
landline at
your office
and
residence.

Have a
telephone at
your
residence

sized and
premium
cars

Have a
minimum
turnover
of Rs.
4,50,000
per annum

per
annum
for midsized
and
premiu
m cars

Have a
minimu
m
turnover
of Rs.
4,50,000
per
annum

Have a
landline
at office

Have a
landline at
office

Kotak Mahindra Car loan:


Kotak Car Finance offers you flexible schemes to suit your needs, hassle-free documentation
and quick processing. To own and drive your car in the quickest possible time, just get in touch
with us.
Kotak Mahindra Prime Limited (KMPL) offers you

The widest range of new and pre-owned cars

Attractive car loan interest rates

Flexible schemes

Speedy loan processing

38

Professional Details
Kotak Mahindra Prime Limited (KMPL) finances your car dreams with up to 90% of the exshowroom price on your new car. Available from a minimum loan amount of Rs. 75,000 and
flexible repayment tenures ranging from 12 to 60 months, you can avail of these loans on most
passenger cars and multi-utility vehicles.
You can choose from four schemes designed to meet your needs:
1. Margin Money Scheme
2. Step Up Scheme
3. Low EMI, Balloon Scheme
4. Advance EMI Scheme
5. Special Schemes*
Eligibility:

Salaried individuals between 21 to 58 years (at the end of the tenure)

Self-employed individuals between 21 to 65 years (at the end of the tenure)

Partnership Firms

Public & Private Ltd. companies

Hindu Undivided Families and Trusts

Documents:

Proof of Identity:- Passport copy, PAN Card, Voters Id car, driving licence( Laminated,
Recent, Legible)

Income Proof: Latest salary slip with Form 16.

Address Proof: Ration card/Driving licence/Voters card/passport copy/telephone bill/


electricity bill/Life insurance policy PAN Card

Salary Bank Statement

5 steps to Getting a New Car


Loan Scheme Selection
Choose a Car Loan Scheme.
39

Documentation
Collect the required documents with your loan proposal. See list of documents.
Credit Approval
Provide information for credit evaluation to the field investigation officer.
Margin Money Payment
Pay off margin money through a pay order or cheque.
Sign agreement and provide post datedcheques or sign ECS Mandate.
Car Delivery
You can now drive your new car home after completion of above formalities.
Loan Repayment
You can start repaying your loan once you receive the Repayment Schedule with a copy of the
Agreement at your correspondence address within 15 days of the loan amount being disbursed
for your new car.

Magma Fincorp Car Loans:


Get Details on magma car loans Documents, interest Rates, EMI, Eligibility, Offers and Other
Fees and charges charged by Magma fincorp auto loan online.
Eligibility for Magma Fincorp Auto Loan
SALARIED EMPLOYEES

SELF-EMPLOYED CUSTOMERS

Be employed by the same employer for


at least two years.

Have been in the same business for at


least two years.

Be at least 21-years-old at the beginning


of the loan tenure and under 60-yearsold or retirement age, whichever is
lower, at the end of the loan tenure.

Be at least 21-years-old at the beginning


of the loan tenure and under 67-yearsold at the end of the loan tenure.

40

Have an annual salary of at least Rs.


1,50,000.
Have residential stability for at least one
year.

Earn at least Rs. 1,00,000 per annum.

Have residential stability for at least one


year.

Processing Fees Charges | Interest Rates | Foreclosure Charges for Magma Car Loan
Interest rates
Personal Use Segment
PDC/ECS Local
Clearing
Tenure
35-60 M
<35 months

Seg A
11.25%
12.00%

Seg B
11.25%
12.00%

Seg C/SUV
11.00%
11.75%

Seg D
10.75%
11.25%

Seg MUV
11.00%
11.75%

Foreclosure Charges

5% of the Principal Outstanding for pre-closures beginning 6 months after date of


agreement.

Foreclosures are not permitted within 6 months from date of availing the car loan.

Foreclosures within 6 months are allowed under exceptional circumstances with lock-in
period charges.

LATE PAYMENT PENALTY 3% per month

Processing Fees

Up to Rs. 2.50 lacs: Rs. 3500

From Rs. 2.51 lacs to 5 lacs: Rs. 4050

Over Rs. 5 lacs: Rs. 4625

41

MAGMA Fincorp Car loan Features:


1. Competitive Interest Rates
2. Flexible documentation and quick processing.
3. End-to-end doorstep service
4. Loans for personal and commercial-use cars or utility vehicles, both new and used
5. Loan eligibility for the widest range of customer profiles.
6. Flexible Loan payment options- in monthly cash installments, auto debit, ECS
(Electronic Clearing Services) or PDCs (Post Dated Cheques).
7. Option to borrow up to three-times your annual salary (for salaried professionals) or sixtimes your annual income (for self employed professionals).
8. Easy loans (without income documents) for existing Magma customers with good
repayment records for 12 months or more.

Axis Bank Car Loan:


Interest Rates As Follows: Updated on 1 February 2013
Axis Bank
Interest Rates
11.25%-15.00%
Processing fees
Rs.3500-Rs.5500/Axis Bank offers uniquely tailored car loanproducts that take the pain and hassle out of buying a
car. Flexible, transparent, quick, and cost-effective, our car loans put the joy back into owning a
ca

Documents Required for Axis Car Loans:


List of Car Loan documents required

Post Sanction / Pre Disbursement

42

Documentation

Age proof

ID proof

Application form

Photograph

Residence proof

Income proof

Bank statement

Signature verification proof

Proforma invoice

Loan Agreement duly signed along


with RTO set

Post Dated Cheques (PDCs) / ECS


form / Standing Instruction (SI)
request

Margin money receipt

Features and Benefits of an Axis Bank Car LoanL:

Car Loan value calculated on ex-showroom price of the vehicle

Attractive interest rates on car loans

LTV of up to 90% of the ex-showroom price on select models

Auto loans available for salaried and self employed individuals, proprietorships and
partnership firms and companies

Special car loan schemes for Axis Bank Salary accountholders

Banking surrogate schemes available

43

Loans offered from Rs. 1 lakh

Car loans tenure from 1 year to 5 year

Eligibility
o Public limited ,private Limited companies
o MNCs
o Permanent employees of State / Central Government
o Permanent employees of Public Sector Undertakings
o Permanent employees of reputed schools / colleges

Salaried Individuals

Self-employed
Individuals

Scheme for Salary


Customers

Minimu
m age of
applicant: 21
years

Minimu
m age of
applicant : 21
years

Minimu
m age of
applicant: 21
years

Maximu
m age of
applicant at loan
maturity: 60
years

Maximu
m age of
applicant at loan
maturity : 65
years

Maximu
m age of
applicant at loan
maturity: 60
years

Income:
Minimum Net
Annual Salary of
Rs. 1.5 Lac p.a.
for selected
models and Rs.
2.5 Lac p.a. for

Income:
Minimum Net
Annual
Business
income of Rs.
1.5 Lac p.a. for
selected models
and Rs. 2.5 Lac

Income:
Minimum Net
Annual Salary of
Rs. 1.5 Lac p.a.
for selected
models and Rs.
2.5 Lac p.a. for

Scheme for Priority


Customers

For
Cat A and Cat
B cars the
account must
have an AQB
of Rs. 1 Lac
for last 4
completed
quarters.

For
Cat C cars the
account must
have an AQB
of Rs. 2.5 Lac
for last 4
completed
quarters.

44

others.
o

Income
eligibility: As
per latest salary
slip or Form 16

Employ
ment: Minimum
2 yrs of
continuous
employment

p.a. for others


o

Income
eligibility As
per latest ITR
and
computation of
income
Employ

ment :
Minimum 3 yrs
in same line of
business.

others.
o

Income
eligibility: As
per latest salary
slip or Form 16

Employ
ment: Minimum
2 yrs of
continuous
employment

For
Cat D cars the
account must
have an AQB
of Rs. 5 Lac
for last 4
completed
quarters.

Maxim
um loan
amount
restricted to 3
times the AQB
in the last 4
quarters

Car Loan Banks


State Bank of India (SBI) SBI provide the
best car loan scheme for you. Features No
adv EMI, Long Tenure, Lowest EMI, 85% of
'On Road Price' of car.

HDFC Bank Get loans for the widest range of


cars and multi-utility vehicles, Avail up to
100% finance on your favorite car*. Get
exclusive customer privileges.

ICICI Bank Avail a variety of Car/Auto Loan


plans in India with ICICI Bank. Get online Car
loans Offers From ICICI Bank and Choose the
Best Deals
Kotak Mahindra offers you flexible schemes
to suit your needs, hassle-free documentation
and quick processing. Compare Documents,
Interest Rates, EMI and Processing Fees of
Kotak Mahindra Car loans.
IDBI Bank Compare and choose best Interest
rates for Cars loans. Check Documents, EMI
and Eligibility for IDBI Car Loan Repayment

Axis Bank Axis Bank offers Car Loans at


attractive interest rates to both salaried and selfemployed individual. Get Best Deals and Offers
from Axis Bank online
Punjab National Bank PNB offers lowest
interest rates on vehicle finances. Check your
eligibility, EMI and other documents with bank
online.
Federal Bank Purchasing new & used four
wheelers. check your eligibility, emi,
Documents and Interest Rates online. Get best
45

period up to 60 months; Repay with easy EMIs deals on car loans with Federal bank.
and attractive Interest Rates.
Bank of Baroda The Car Loans from Bank of Bank of India BOI Star Vehicle Loan Scheme.
Barodaare designed to finance the car that suits.Eligibility, Salaried employees, Professionals,
Get Best offers and Compare Interest rates,
Self-employed. Get the best deals, quotes and
Documents, EMI and Features of BOB car
Attractive interest rates on car loans.
loans.
Canara Bank CompareCanara Car loans
Dena Bank Dena bank car loan scheme helps
online, Interest Rates, Eligibility, Features,
you to give your dreams a right track. Bank
Minimum Documents Requirement and
charges interest on daily reducing balance and
Documents for auto loans.
there is no prepayment charge on auto loans.

FRAMEWORK
OF STUDY
46

Project Objectives:
The three critical aspects of a project are function, cost and timing. It must fulfill its purpose, be
completed within the budget and come in on schedule. A project team has to detail the specific
targets within these broad objectives by defining the characteristics and variables within each
one. Targets must be measurable, clearly defined and realistic, and the team has to establish
milestones for percent completion of each target. A successful project stays on track to reach
each milestone and is completed according to plan.

Function:
The most important objective of a project is to perform the functions for which it was initiated. If
it doesn't fulfill its purpose, the project has failed. Companies undertake projects to address the
needs of project users or to solve particular problems. Within the broad objective of fulfilling its
purpose, it has to meet actual needs and carry out specific operations. The project team defines
these and designs tests to show that, upon completion, the project can function as specified.

Cost:
The project cost is a critical project element, and meeting project budgets is a broad objective of
all projects. If a project costs more than anticipated, the cost benefit calculations that
management used to justify the project may no longer apply. If the cost overrun is substantial, the
47

company may not have the resources to complete the project. If the project costs significantly
less than the budget, the planning has been faulty and the company has overallocated resources.
For all these reasons, accurate cost calculation is a project objective.

Timing:
Since projects are time-limited, the project completion date is important. Companies identify
problems and user needs in conjunction with specific dates. If the project is not ready for use by
that date, user needs may change and problems may resolve themselves in a fashion that has a
negative influence on the company. Delays also have financial consequences. The income
expected from the project is delayed while the financing costs are increasing. Delays cost money
and may make the project redundant.

Scope of study:
The study covers a period of five years from 2008 to 2013. There are several
reasons for selecting this period.
During the past 5 years the Bank has gone global as a result the company has
witnessed many economic and political changes.
Company has undergone rapid changes in the past 5 years due to many policy
decisions relating to capital markets, banking sector & licensing policy.
The study is limited to only SBI This study is mainly related to the individuals
who are interested in taking Car loans from banks to fulfill their dreams.
The study is mainly related to all the loans provided by SBI only.
OBJECTIVE OF THE STUDY OF CARLOANS:

the study was mainly conducted to understand the concept of Car loan scheme
and the eligibility criteria of the customers.
The study is done to understand the documents involved in the Car loan scheme
and the repayment methodology adopted by various banks and the car loans.
The innovative Car loan schemes and the risk capturing mechanism adopted by
the CFIs and the future of the Car loan segment has been undertaken as a part of
this study.
48

maximize some function of these values for example the profit function
(difference between output and input values) or return on investment function
(ratio of output and input values).

RESEARCH
METHODOLOGY
49

Research Methodology Adopted


Research Design

Descriptive research

Research Instrument

Structured Questionnaire

Non-Probability Sampling

Sampling Plan

i) Sample Method

(Convenience Sampling)

ii) Sample Size

200

50

iii) Sample Unit

Customers of Car Loan at Ghazipur

Sampling Design
Convenience Sampling, as the name implies, is based on the convenience of theresearcher who is
to select a sample. Respondents in the sample are included in it merely on account of their being
available on the spot where the survey was in progress.

Source of Data
a) Primary Data

Structured Questionnaire

b) Secondary Data

Journals, Booklets, Bank Data, etc.

This study is conducted by collecting and analyzing the data from primary and
secondary sources.
Primary Data: Primary data was collected by administering the questionnaire to
the SBI customers.
Secondary Data:Secondary data was collected from the books, journals, and
websites and through the interaction with the individuals in the organization.
Data Analysis:
The data, which is collected, is analyzed and is represented through pie charts using
percentages for analyzing and interpreting.

51

DATA ANALYSIS
52

AND
INTERPRETATIONS

Q1. When you have taken Car Loan from SBI?

53

17%

New

One to Three Years before

51%More than Three Years

33%

I tried to find out the most common sources of car loan in the SBI. The Car loan, mostly depends
on customers because it is satisfaction, purpose, situation. According to my research 50%
customer for new car loan, 33%customer was one to three years before take car loan. Only 17%
customer was more than three year.
It is increase car loan in share market.

Q2. Reason for taking Car Loan from SBI?

54

18%

Margin Amount

interest rate

Other

12%

Faster Processing

Brand Image

29%
17%

From the chart it can be understood that most of the SBIcar depend on the interestrate ,brand image
of the bank. 0.51% of the loan amountsubject to minimum of Rs. 1020/- and maximum of Rs.
10200.State Bank of India is authorized to disclose from time to time any information relating to
the loan to any credit bureau (Existing or Future) approved by Government of India and Reserve
Bank of India without any notice to the borrower. State Bank of India is also authorized to make
inquiries with the Credit Information Bureau of India (CIBIL) and get the applicants Credit
Information Report.

Q3. How do you rate the Interest rates charged by SBI?

55

15%
28%
10%
Satisfactory Averagely Satisfactory Dissatisfactory Highly Dissatisfactory Highly Satisfactory

12%

35%

There are 35% customer Average satisfied and 28% satisfied 15% highly satisfied.
12% dissatisfied and 10% are highly dissatisfied.
There is no upper limit for the amount of the loan. A maximum loan amount of 48
times of Net Monthly Income or 4 times of Net Annual Income can be sanctioned.

Q4. How do you rate the EMI of ICICI Bank?

56

Satisfactory

Averagely Satisfactory

24%
Dissatisfactory

Highly Dissatisfactory

36%

Highly Satisfactory

25%

4%
12%

During the research25% customer Average satisfied and 24% satisfied 35% highly satisfied.
12% dissatisfied and 4% are highly dissatisfied.
No Advance EMI; Longest repayment tenure (7 years); Lower interest rate: Lowest
EMI;LTV85% of On Road Price of car (includes registration, insurance and cost of
accessories), Interest Calculated on Daily Reducing Balance;Flexibility of payment of EMI
anytime during the month; Low pre-payment penalty, only 2%; Low processing fee (only
0.51% of loan amount); Free Accidental insurance; Optional SBI Life cover;

Q5. How do you rate the Documentation Procedure of SBI?


57

14%
Satisfactory

Averagely Satisfactory

23%
Dissatisfactory

Highly Dissatisfactory

14%

Highly Satisfactory

19%

30%

During the research30% customer Average satisfied and 23% satisfied 14% highly satisfied.
19% dissatisfied and 14% are highly dissatisfied. I would need to submit the following
documents along with the completed application form:
1.Statement of Bank account of the borrower for last 6 months.
2. 2 passport size photographs of borrower(s).
3. A copy of passport /voters ID card/PAN card.
4. Proof of residence.
5. Latest salary-slip showing all deductions
6. I.T. Returns/Form 16: 2 years for salaried employees and 2 years for professional/selfemployed/businessmen duly accepted by the ITO wherever applicabl7. Proof of official
address for non-salaried individuals

58

Q6. How do you rate the Processing Fees of SBI?

25%

22%

6%
12%

Satisfactory
Highly Dissatisfactory

36%

Averagely Satisfactory
Highly Satisfactory

Dissatisfactory

During the research36% customer Average satisfied and 22% satisfied 25% highly satisfied.
12% dissatisfied and 6% are highly dissatisfied.
0.51% of the loan amountsubject to minimum of Rs. 1020/- and maximum of Rs. 10200/-

59

Q7. How do you rate the Sanctioning Procedure of SBI?

Satisfactory

24%
Averagely
Satisfactory

24%
Dissatisfactory

Highly Dissatisfactory

6%

Highly Satisfactory

12%
35%

During the research36% customer Average satisfied and 22% satisfied 25% highly satisfied.
12% dissatisfied and 6% are highly dissatisfied. To ensure quick processing and disbursal of
your Auto Loan, furnish all documents (applicable to your case) along with the completed
SBI Auto Loan Application Form.
For Borrower:
1. 2 passport size photographs of borrower.
2. Signature identification from bankers of borrower.
3. A copy of passport /voters ID card/PAN card.

60

For Gurantor:
1. Copy of passport including page containing visa stamping.
2. Copy of valid work permit/ work contract and Appointment letter.
3. Copy of identity card issued by the employer.
4. Statement of overseas bank account for the last six months which reflects credit of salary,
savings etc
5. Salary slips for the last three month or Tax Returns(if applicable)
6. Copy of Continuous Discharge Certificate in respect of applicants employed in
Merchant Navy.
7. Power of Attorney, if applicable, in Banks standard format duly stamped and
notarized/attested by Indian Embassy/Consulate.

61

Q8. How do you rate the Sanctioning Time of SBI?

18%

22%

10%

15%
35%

Satisfactory
Highly Dissatisfactory

Averagely Satisfactory
Highly Satisfactory

Dissatisfactory

During the research36% customer Average satisfied and 22% satisfied 25% highly satisfied.
12% dissatisfied and 6% are highly dissatisfied. The customer dissatisfaction main cause is late
in the verification of document. It compare other bank easily and minimum document is
nacessory for car loan and time period too be less.

62

Q9. Are you satisfied with SBI Car Loans?

30%

Yes

No

70%

The above chart depicts that the background checks also play an important part in the process of satisfied.
Background checks refer to the verification of the potential customer, services etc., before the final
selection. The Bank is in favors of outsourcing for background checks rather than opting for Customers.

63

FINDINGS
1. The first preference is given to internal sources of data.
2. Induction is not proper and is not there at all levels.
3. The dead bio-data are never being destroyed.
4. Background check is an integral part of the recruitment and selection process.
5. Salary comparison is not justified. Old employees are demoralized by getting
less surely than new employees.
6. Employee referrals attract monetary rewards.
7. Manpower is recruited from private placement consultancy, who are demanding
high amount of fees, where as HRD Department is not fully utilized to recruit
manpower by advertisement.
8. Before recruitment cost benefit analysis is not done properly. It causes
manpower surplus which makes loss in the industry.
9. Manpower is recruited from reliable sources however efficiency does not get
recognized.
10.Time for manpower planning is not fixed.
11.Freshers are required to sign an employment agreement (of up to 1 lakhs
rupees).
64

65

66

LIMITATIONS

LIMITATIONS

1. Due to the short training duration I have spend a short stay at Well India Ltd.

2. Training hours were allotted from 10:00 a.m. to 1:30 p.m. These three hours
were not sufficient to learn the working of the company.

3. Senior level employees were so busy with their work, that it was not possible to
take guidance from them.

4. My analysis is based on sample results. It was difficult to meet personally in


order to get questionnaire filled by senior level employees.

5. While doing the survey, many people try to avoid filling the questionnaire
which creates difficulty in the research work?

6. It was not possible to cover all the units in view of complete coverage which
makes the study limited.

67

68

CONCLUSION

CONCLUSION

1. The Car loan segment can be extended to the lucrative NRI segment; this
would provide the bank a cutting edge and larger share of the Car loan
market.
2. The bank can provide the benefits like SMS alert and other features so as to
make the Car loans more attractive.
3. The bank can contemplate on decentralizing the operations however taking
into consideration the experience and expertise of the members at Loan
Department enters.
4. The study covers a period of five years from 2008 to 2013. There are several
reasons for selecting this period.
5. During the past 5 years the Bank has gone global as a result the company
has witnessed many economic and political changes.
6. Company has undergone rapid changes in the past 5 years due to many
policy decisions relating to capital markets, banking sector & licensing
policy.
7. The study is limited to only SBI this study is mainly related to the
individuals who are interested in taking Car loans from banks to fulfill their
dreams.
8. The study is mainly related to all the loans provided by SBI only.

69

70

RECOMMENDATIONRECOMME
NDATION

The dead CVs should be destroyed.

Each level of employee should be formally inducted and introduced to the Departmental
Head. If not all levels, at least Asst. Manager and above category of employees.

Salary comparison should be seriously done to retain the old employees.

Proper salary structure to be structured to attract people and make it tax effective.

Cost benefit analysis should be alone before creating a position or recruitment of


manpower.

External source should be given equal importance with internal source. By which new
brain will be inducted in the company with skill, talent, efficiency etc.

Manpower planning should be done before recruiting.

Proper inquiry should be done regarding previous employment of a candidate before


recruitment to avoid industrial disputes.

If time for manpower planning gets fixed, it will be easy to prepare budget for the hiring
process.

71

72

BIBLIOGRAPHYBIBLIO
GRAPHY

The Economics Times of India

The Economics Times

Journal book of SBI

Google.com

www.sbi.co.in

www.wikkipidea.com

73

ANNEXURE

74

Questionnaire:
Q1. When you have taken Car Loan from SBI?

a. One Year Before


b. Two to Three Years before
c. More than Three Years Before
Q2. Reason for taking Car Loan from SBI.

a. Faster Processing
b. Interest Rates
c. Brand image of the Bank
d. Margin Amount
e. Other
Q3. How do you rate the Interest rates charged by SBI?

a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
Q4. How do you rate the EMI of SBI?

a. Highly Satisfactory
75

b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
Q5. How do you rate the Documentation Procedure of SBI?

a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
Q6. How do you rate the Processing Fees of SBI?

a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
Q7. How do you rate the Sanctioning Procedure of SBI?

a. Highly Satisfactory
b. Satisfactory
c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
Q8. How do you rate the Sanctioning Time of SBI?

a. Highly Satisfactory
b. Satisfactory
76

c. Averagely Satisfactory
d. Dissatisfactory
e. Highly Dissatisfactory
Q9. Are you satisfied with SBI Car Loans?

a. Yes
b. No

77

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